Consumer Rights for Partial or Non-Delivery of Services in the Philippines: How to File a DTI Complaint

Last updated for general legal frameworks in the Philippines. This article explains your rights and remedies when a business does not fully perform (partial delivery) or fails to perform at all (non-delivery) a service you paid for, and how to pursue relief through the Department of Trade and Industry (DTI). It also maps when another regulator—not DTI—has jurisdiction.

1) Core Legal Foundations

Civil Code (obligations & contracts). When you pay for services, you and the provider have reciprocal obligations. If the provider fails to perform on time, in the agreed manner, or at all, you may:
- Demand specific performance (finish the job as promised);
- Rescind/resolve the contract and get a refund (with interest), and
- Claim damages (actual/compensatory; moral/exemplary only through courts, not DTI). Liquidated damages apply if the contract provides a penalty clause.
Consumer Act of the Philippines. Prohibits unfair or deceptive acts and practices, false or misleading representations, bait-and-switch tactics, and certain abusive collection practices. It empowers DTI to mediate and adjudicate consumer complaints (including many service disputes), order refunds, replacements, price adjustments, and impose administrative fines for violations of consumer rules.
E-Commerce & online transactions (general). Standard contract rules apply to purchases concluded online. Sellers must disclose their identity, terms, and total price. Misrepresentations and non-delivery in online services are actionable as unfair/deceptive practices. Marketplaces/platforms may be required to cooperate with enforcement and consumer redress mechanisms.

Practical effect: even if your case sounds “contractual,” you can elect the administrative path (DTI) for quick, low-cost relief such as a refund or completion, while reserving court action for damages beyond DTI’s powers.

2) When DTI Has Jurisdiction (and When It Doesn’t)

DTI generally handles consumer disputes against businesses for transactions involving goods and many services (e.g., repair services, gyms, spas, tutorial/consultancy packages, logistics/courier issues, event services, non-professional digital services, online subscriptions sold by local businesses).

Common carve-outs / other regulators:

Telecommunications & internet – National Telecommunications Commission (NTC)
Electricity – Energy Regulatory Commission (ERC)
Water (concessionaires) – MWSS/Local regulators
Airlines – Civil Aeronautics Board (CAB)
Public land transport/TNVS – LTFRB
Maritime transport – MARINA
Banking & e-money – Bangko Sentral ng Pilipinas (BSP)
Insurance/HMOs – Insurance Commission (IC)
Real estate developers/brokers, condo/subdivision – Human Settlements Adjudication Commission (HSAC)/DHSUD
Professional services (lawyers, doctors, CPAs, engineers) – typically under PRC/sector regulators; consumer route may be limited.

If in doubt, file with DTI; they can decline for lack of jurisdiction and direct you to the proper agency. Keep that endorsement for your records.

3) What Counts as Partial or Non-Delivery of Services

Partial delivery: The provider performed some but not all substantial parts (e.g., only 60% of a renovation; incomplete website build; event planner misses key deliverables).
Non-delivery: The provider failed to start or deliver any substantial performance (e.g., pre-paid lessons never held; courier never shipped service package like assembly/installation; subscription activated but service inaccessible).

Consumer redress options (choose what fits your case):

Completion without added cost and within a reasonable or agreed timeline.
Proportionate price reduction for the undelivered portion.
Rescission with full or proportional refund (and return of any outputs, if applicable).
Incidental and consequential losses (e.g., rental of substitute service, rework costs).
- DTI can order a refund/replacement or compliance; for damages beyond refund, file in court (regular or small claims).

4) Evidence You Should Prepare

Contract/service proposal/quotation; terms & conditions; screenshots for online deals.
Official receipt, proof of payment (bank transfer, e-wallet, credit card, invoices).
Timeline of agreed milestones and actual events.
Communications (emails, chats, SMS, platform messages) demanding delivery or follow-ups.
Photos/videos/reports evidencing incomplete or defective performance.
Computation of refund/deductions, incidentals (with receipts).
Valid ID and authority if filing through a representative.

Keep originals; submit clear copies. Organize in a simple index.

5) Step-by-Step: Filing a DTI Complaint

A. Send a final Demand Letter (recommended but not always required)

State the breach (partial/non-delivery), the remedy you want (completion by date X, refund of ₱__, price reduction of __%), and a deadline (e.g., 5–10 calendar days).
Say you will file with DTI if unresolved.
Send through a traceable channel (registered mail/courier/email with read receipt/platform message). Keep proof of service.

B. File with DTI (National Capital Region or your local DTI Provincial/Regional Office)

What to file:

Complaint-Affidavit (signed, notarized if required by the handling office);
Attach all evidence;
Provide your preferred remedy (completion, refund, price reduction) and amount;
Identify the respondent (business name, address, contact; platform store link if online).
Filing is typically low-fee or free; bring small cash for duplication/processing if any.

Where/how to file:

Over the counter at the DTI office that covers the place of transaction or business; many regions accept email/online submissions.
If the business is outside your region, DTI can coordinate or endorse to the proper office.

After filing:

DTI issues a notice/summons and sets a mediation conference (usually within a few weeks).
The respondent may answer in writing and appear in mediation.

C. Mediation

A DTI mediator facilitates settlement: refund, finish-by-date with penalties, staged payments, or price reduction.
If you settle, DTI issues a Compromise Agreement/Undertaking, which is binding and enforceable administratively.

D. Adjudication before a Consumer Arbitration Officer (CAO)

If mediation fails or the respondent defaults:

Proceedings are summary and document-driven.
You may be required to submit position papers and evidence; hearings (if any) are brief.
The CAO may issue a Decision/Order directing refund, completion, price adjustment, and/or administrative fines for consumer-law violations.

Important limits:

DTI can order refunds/return and compliance; it does not award moral/exemplary damages.
For additional damages, sue in court (you can attach/submit the DTI decision as persuasive evidence).

E. Post-Decision Remedies & Enforcement

A losing party may seek reconsideration or appeal within the periods stated in the decision (usually short, count in days, not months).
Final DTI orders can be enforced administratively; non-compliance can trigger penalties or referral for further action.
You may elevate questions of law/fact to the Court of Appeals via the appropriate appellate rule after exhausting administrative remedies.

6) Computing What to Claim

Refund:
- Non-delivery: Claim full price + legal interest from date of demand or payment (whichever is more appropriate to your facts).
- Partial delivery: Claim proportionate refund for undelivered portion; or rescind and seek full refund if incomplete performance defeats the purpose of the contract.
Incidental/Consequential losses (receipted):
- Substitute service costs, storage, rework.
- Lost income is harder to prove; typically pursued in court, not at DTI.
Service-specific add-ons:
- Late completion penalties if your contract has a penalty clause.
- Warranty/service level credits if stipulated.

Tip: Prepare a one-page settlement table: claim items, amounts, basis, and supporting documents.

7) Strategy: DTI vs. Small Claims Court

DTI is faster/cheaper for refund/completion and compliance orders based on consumer laws.
Small Claims (no lawyers required up to the current jurisdictional amount) is better if your primary goal is money (e.g., liquidated damages, incidentals) and the dispute is straightforward.
You can sequence them: use DTI to secure a refund finding; then, if needed, sue for additional damages.

8) Special Notes by Sector (Services)

Renovation/repair/handyman/installation: Clear scope and milestones matter. If safety or building code violations are involved, you may also report to the LGU/building official.
Events/weddings/photography: Crucial outputs undelivered (e.g., albums, edited files) may justify rescission. Keep booking forms, run sheets, and proofs of payment.
Tutoring/training/coaching: Track actual sessions held; document cancellations. For packages, partial performance usually supports pro rata refunds.
Gyms/spas/salons: Prepaid memberships with closed facilities or inaccessibility may ground refund or extension claims.
Courier/logistics “value-added services” (assembly, installation): Non-performance of the service component can be separated from the successful delivery of goods; claim service refund and any damage from mishandling.
Digital/IT services (web/app builds, subscriptions): Maintain a deliverables checklist and acceptance criteria; absence of admin access/source files often evidences non-delivery.

9) Common Defenses (and How to Counter)

“Force majeure” or pandemic disruptions: Check if truly unforeseeable and if it renders performance impossible, not merely more difficult; also check if the contract allocates risk (extensions vs refunds).
Client delay or non-cooperation: Keep records showing you responded/approved on time and provided required inputs.
Quality disputes: Use objective specs and acceptance criteria; obtain independent assessments if needed.
“No refund” policy: Such blanket clauses are not absolute against non-delivery or deceptive practices; fairness and statutory protections prevail.

10) Templates

A. Demand Letter (Short Form)

Subject: Final Demand – [Completion/Refund] for [Service] Dear [Provider], On [date], I engaged your services under [contract/quotation/invoice no.]. As of today, [state breach: “no delivery” / “only 60% complete; items A–C missing”]. I demand [completion by (date) without additional cost] / [refund of ₱__] / [price reduction of % = ₱] within 7 calendar days from receipt of this letter. Otherwise, I will file a consumer complaint with DTI and pursue other remedies. Sincerely, [Name, Address, Contact] Attachments: Contract, proof of payment, timeline, photos/chats.

B. DTI Complaint-Affidavit (Skeleton)

Parties: Full names, business name of respondent, addresses, contacts.
Jurisdiction: Consumer transaction for services; place of transaction/business within DTI office coverage.
Facts: Chronology (agreement, payments, promised timeline, partial/non-delivery).
Breach: Identify incomplete or absent deliverables; attach proof.
Demands made & responses: Attach demand letter and replies/none.
Cause(s) of action: Violation of consumer protections; unfair/deceptive practices; breach of contract.
Reliefs sought: Completion by date; refund of ₱__; price reduction of __%; interest from [date]; administrative fines as applicable; other just reliefs.
Verification & Certification of Non-Forum Shopping.
Signature (and notarization if required).

11) Practical Tips to Improve Your Odds

Be precise about your remedy. Decide before mediation whether you want completion or refund—and under what conditions (e.g., strict deadline + penalties).
Show reasonableness. Judges/CAOs reward parties who gave the other side a fair chance to cure.
Bring a concise bundle. A 10–20 page packet with an index is easier to digest than a 300-page printout.
Document settlement compliance. If the provider promises to deliver in 14 days, insist on dated milestones and automatic refund if missed.
Mind prescription/limitation. Don’t sit on your claim; consumer and contract actions are time-sensitive. Filing sooner preserves evidence and leverage.

12) FAQs

Q: Can I file even if I don’t have an official receipt? Yes—submit other proof of payment (e-wallet, bank transfer, invoice, acknowledgment). Lack of an OR may itself indicate compliance issues.

Q: The provider is a sole proprietor without a formal office. DTI still has reach over businesses operating in trade/commerce. Provide any known address, phone, email, store link, or social-media handle.

Q: The business is purely online. Take screenshots of the listing, seller profile, and chats. Include the platform’s order page and tracking.

Q: Can DTI award moral or exemplary damages? No. DTI primarily orders refunds/compliance and imposes administrative fines for violations. Moral/exemplary damages require court action.

Q: What if the provider doesn’t show up? DTI can proceed ex parte and still issue an order based on your evidence.

13) Quick Checklist (Print This)

Contract/quotation/offer + terms
Proof of payment
Timeline & deliverables list
Proof of breach (photos, logs, reports)
Demand letter + proof of service
Computation (refund/price reduction/interest)
Valid ID; SPA/authorization if via representative
Completed Complaint-Affidavit with exhibits

14) Bottom Line

If a service you paid for in the Philippines is partially delivered or not delivered at all, you can demand completion, price reduction, or rescission with refund. The DTI offers a fast, low-cost administrative route to secure those remedies and to penalize unfair or deceptive practices. Gather clean evidence, send a clear final demand, and file promptly. For damages beyond refunds (moral/exemplary or substantial consequential losses), use the courts—possibly after obtaining a favorable DTI order.