- Consumers have the right to choose how they pay for goods and services, and sellers cannot simply force buyers into installment or in-house financing.
- Under the Department of Trade and Industry’s Administrative Order No. 21-03, consumers are protected from practices that restrict their payment options or add hidden financing costs. The rules are meant to ensure buyers retain freedom over how they pay for their purchases.
- One practice covered by the rules is the so-called “installment only” arrangement. Sellers cannot require customers to purchase through installment or in-house financing when a cash purchase is available under the rules.
Consumers have the right to choose how they pay for goods and services, and sellers cannot simply force buyers into installment or in-house financing.
Under the Department of Trade and Industry’s Administrative Order No. 21-03, consumers are protected from practices that restrict their payment options or add hidden financing costs. The rules are meant to ensure buyers retain freedom over how they pay for their purchases.
One practice covered by the rules is the so-called “installment only” arrangement. Sellers cannot require customers to purchase through installment or in-house financing when a cash purchase is available under the rules.
This can be particularly relevant when buying big-ticket items such as cars or motorcycles, where some dealerships may push buyers toward financing instead of accepting full cash payment.
Sellers should offer flexible payment options
Sellers should allow consumers to choose among cash, installment, or a combination of payment methods, depending on the applicable transaction.
The price displayed for a product should also remain the same regardless of whether the customer pays in cash, by card, QR code, or e-wallet. Cash discounts may be offered, but sellers should not impose additional surcharges simply because a customer chooses to pay digitally.
For consumers, this means checking the advertised price and asking about all available payment options before completing a purchase.
What to do if a seller violates the rules
Consumers who encounter a seller allegedly refusing cash payments or forcing them into installment financing should keep evidence of the transaction. This can include price quotations, chat logs, receipts, or other documents showing the seller’s payment requirements.
Complaints can be reported to the DTI through consumercare@dti.gov.ph.
Under the applicable consumer protection rules, violators may face fines and imprisonment, depending on the violation and applicable penalties.