Article 162. Arbitration Officers; Jurisdiction. – The consumer arbitration officers shall have original and exclusive jurisdiction to mediate,
conciliate, hear and adjudicate all consumer complaints, Provided, however, That this does not preclude the parties from pursuing the proper
judicial action.
Article 163. Investigation Procedure. –
a) The consumer arbitration officer shall conduct hearings on any complaint received by him or referred by the Council.
b) Parties to the case shall be entitled to notice of the hearing, and shall be informed of the date, time and place of the
same. A copy of the complaint shall be attached to the notice.
c) The department shall afford all interested parties the opportunity to submit a statement of facts, arguments, offers of
settlements or proposals of adjustments.
d) The Consumer arbitration officer shall first and foremost ensure that the contending parties come to a settlement of the
case.
e) In the event that a settlement has not been effected, the Mediation officer may now proceed to formally investigate, hear
and decide the case.
f) The Consumer arbitration officer may summon witnesses, administer oaths and affirmations, issue subpoena and
subpoena duces tecum, rule upon offers of proof and receive relevant evidence, take or cause deposition to be taken
whenever the ends of justice would be served thereby, regulate the course of the hearing, rule on any procedural request
or similar matter and decide the complaint.
In hearing the complaint, the mediation officer shall use every and all reasonable means to ascertain the facts in each complaint speedily and
objectively without regard to strict rules of evidence prevailing in suits before courts. The complaints shall be decided within fifteen (15) days from
the time the investigation was terminated.
Article 164. Sanctions. – After investigation, any of the following administrative penalties may be imposed even if not prayed for in the complaint:
a) the issuance of a cease and desist order, Provided, however, That such order shall specify the acts that respondent
shall cease and desist from and shall require him to submit a report of compliance therewith within a reasonable time;
b) the acceptance of a voluntary assurance of compliance or discontinuance from the respondent which may include any or
all of the following terms and conditions:
1) an assurance to comply with the provisions of this Act and its implementing rules and regulations;
2) an assurance to refrain from engaging in unlawful acts and practices or unfair or unethical trade practices
subject of the formal investigation;
3) an assurance to comply with the terms and conditions specified in the consumer transaction subject of the
complaint;
4) an assurance to recall, replace, repair, or refund the money value of defective products distributed in
commerce;
5) an assurance to reimburse the complaint out of any money or property in connection with the complaint,
including expenses in making or pursuing the complaint, if any, and to file a bond to guarantee compliance
therewith.
c) restitution or rescission of the contract without damages;
d) condemnation and seizure of the consumer product found to be hazardous to health and safety unless the respondent
files a bond to answer for any damage or injury that may arise from the continued use of the product;
e) the imposition of administrative fines in such amount as deemed reasonable by the Secretary, which shall in no case be
less that Five hundred pesos (P500.00) nor more than Three hundred thousand pesos (P300,000.00) depending on the
gravity of the offense, and an additional fine of not more than One thousand pesos (P1,000.00) or each day of continuing
violation.