Quick answer

The refund request should be signed by the person or legal entity entitled to recover the money—not automatically by the sole proprietor who received it.

If an individual customer paid with personal funds, that customer should sign.
If a sole proprietorship made the payment and is claiming the refund, its registered owner should sign using the owner’s legal name and identify the trade name.
If a corporation, partnership, association, or other organization paid, its properly authorized representative should sign.
If an agent signs, the authority must cover the refund request. For DTI mediation, written authority must expressly allow the representative to settle the dispute.
If the sole proprietor is approving a refund, signing a settlement, or otherwise acting for the merchant, the proprietor—or a properly authorized agent—should sign.

A business name is not a separate person. The Supreme Court has repeatedly held that a sole proprietorship has no juridical personality distinct from its owner. In Yon Mitori International Industries v. Union Bank of the Philippines, the Court explained that the owner, rather than the sole-proprietorship trade name, is the real party in interest. Read the Supreme Court decision.

First determine whose refund it is

The signer should be the person or entity that owns the claim. The name on the receipt, purchase order, payment account, or invoice is important evidence, but it may not settle the issue by itself.

For example:

Situation	Proper signer
A customer paid with personal funds	The customer
A sole proprietor paid a supplier for business purposes	The proprietor, using the proprietor’s legal name
An employee paid using the employer’s money or was reimbursed by the employer	Ordinarily the employer’s authorized representative, subject to the documents and arrangement
An agent purchased for a disclosed principal using the principal’s money	The principal, or an agent specifically authorized to act
Several people jointly paid and jointly own the claim	All claimants, or one representative authorized by the others
A corporation or partnership is the claimant	An authorized officer or representative with supporting authority
The sole proprietor is accepting liability or signing a settlement for the merchant	The proprietor or an agent expressly authorized to settle

In V-Gent, Inc. v. Morning Star Travel and Tours, Inc., the Supreme Court treated the passengers whose money paid for the tickets as the real parties in interest, even though purchase documents were issued through their agent. The decision illustrates why ownership of the money and the underlying agency arrangement matter. Read the Supreme Court decision.

When the payer, purchaser, cardholder, invoice addressee, and intended beneficiary are different people, examine the contract, proof of payment, reimbursement records, and any agency agreement before deciding who should sign.

How a sole proprietor should sign

When the sole proprietorship itself is the claimant, the owner should not sign only the business name. A clear signature block is:

Juan Dela Cruz Sole proprietor, doing business as ABC Trading

The refund request may refer to “ABC Trading” throughout the letter, but it should state the proprietor’s full legal name at least once.

When addressing a demand to a sole proprietorship, identify both the owner and the trade name if known:

Juan Dela Cruz, sole proprietor doing business as ABC Trading

This reduces the risk of directing a demand or later complaint against a trade name that has no separate legal personality.

DTI’s Business Name Registration System allows the public to verify registered business names and request certification concerning a registration. Search or request certification through DTI BNRS.

May an employee, bookkeeper, relative, or lawyer sign?

Yes, but only with appropriate authority.

Under the Civil Code, agency may generally be express or implied, and a third party may require an agent to present the power of attorney or instructions defining the agent’s authority. Certain acts require special authority, including compromising a claim, waiving an obligation, or performing another act of strict ownership. See Articles 1868–1902 of the Civil Code of the Philippines.

For an ordinary initial request, a signed written authorization may be sufficient if the recipient accepts it. A more specific or notarized special power of attorney may be required when the representative will:

negotiate or sign a compromise;
waive part of the claim;
accept conditions, releases, or quitclaims;
receive the refund personally;
file a formal proceeding; or
perform an act for which the merchant, bank, platform, or government agency requires stronger proof of authority.

DTI mediation has a specific rule: a representative must present written authority expressly stating that the representative may enter into a settlement. If an agreement is reached, the parties or their duly authorized representatives sign the written mediation agreement. See DTI’s complaints-handling guidance.

Authority to send a demand letter does not necessarily include authority to waive rights or settle for a lower amount. State each power clearly.

Is a handwritten signature required?

Not always. The Electronic Commerce Act recognizes qualifying electronic documents and electronic signatures, provided the method reliably identifies the signer, shows approval, and can be authenticated. See Sections 6–12 of Republic Act No. 8792.

However, an electronic signature does not eliminate special formalities required by law or by a valid filing procedure. A merchant, payment provider, government agency, or tribunal may require its own form, identity verification, wet signature, notarization, or sworn verification. Follow the stated procedure and retain proof that the electronic request was sent and received.

A signature does not automatically create a right to a refund

The proper signature establishes who is making or approving the request. Entitlement to the refund still depends on the contract, warranty, applicable law, and facts.

Possible legal grounds include:

an overpayment or duplicate payment;
money delivered by mistake when the recipient had no right to demand it, which may fall under Article 2154 of the Civil Code;
cancellation under an agreed refund policy;
failure to deliver the promised product or service;
breach of an express or implied warranty;
a defective, imperfect, unsafe, falsely described, or misrepresented product or service; or
a deceptive, unfair, or unconscionable sales practice.

There is generally no automatic statutory refund merely because a buyer changed their mind. DTI explains that a store may refuse a change-of-mind return when the product is not defective, expired, or fake and no contractual return policy applies. A “No Return, No Exchange” policy cannot defeat remedies for a legally actionable defect, but it does not turn every unwanted purchase into a refundable one. See DTI’s official guidance.

Consumer remedies for defective products and services

Under Article 100 of the Consumer Act of the Philippines, suppliers may be liable for product imperfections that make a product unfit or inadequate, reduce its value, or make it inconsistent with its packaging, label, or advertising.

For covered product imperfections, the supplier ordinarily has 30 days to correct the problem. If it is not corrected, the consumer may choose among the remedies provided by law, including replacement, reimbursement of the amount paid with monetary updating, or a proportionate price reduction. The parties may adjust the correction period, but the statutory range is generally not less than seven days and not more than 180 days. The consumer may use the alternative remedies immediately in circumstances identified by the law, such as when replacing parts could compromise the product’s quality or value or when the product is essential.

Article 102 provides alternative remedies for covered service imperfections, including proper re-performance without additional cost, immediate reimbursement with monetary updating, or a proportionate price reduction.

The correct remedy remains fact-dependent. A refund is not necessarily the first remedy in every product-defect case, and warranties or specialized laws—such as the Philippine Lemon Law—may impose additional notice and repair requirements.

For online transactions, the Internet Transactions Act preserves consumer remedies and provides that an online merchant may require the return of the original goods when replacement or refund is used as the remedy. Preserve the listing, merchant details, platform messages, return instructions, and courier records.

What the refund request should contain

A useful written request should identify:

The claimant’s complete legal name and contact details.
The capacity in which the signer acts: customer, sole proprietor, corporate officer, or authorized representative.
The sole proprietor’s legal name and trade name, if known.
The transaction date, order or invoice number, product or service, and amount paid.
The payment method and transaction reference, without disclosing passwords, PINs, or one-time codes.
The specific reason for the refund.
The legal, warranty, contractual, or policy basis relied upon.
The exact amount requested and the proposed refund method.
Whether goods are available for return and their present condition.
A reasonable response date, taking account of any warranty, platform, or statutory procedure.
A list of attachments.
The claimant’s signature or the representative’s signature with proof of authority.

Do not send unnecessary identity documents or full bank credentials. If identity verification is reasonably required, use the merchant’s verified channel and redact unrelated information where appropriate.

Evidence to preserve

Keep original or reliable electronic copies of:

receipts, sales invoices, acknowledgment receipts, and delivery receipts;
contracts, quotations, purchase orders, warranties, and return policies;
bank, card, e-wallet, or transfer confirmations;
advertisements, product listings, descriptions, and representations;
photographs or videos showing defects, packaging, serial numbers, and condition;
emails, messages, platform tickets, and call summaries;
cancellation, return, and courier records;
written demands and proof of delivery or receipt;
DTI business-name search results or certification;
written authority, powers of attorney, board resolutions, or secretary’s certificates; and
any response, refund promise, settlement proposal, or rejection.

Preserve the product unless return, safety, or expert-inspection requirements dictate otherwise. Document its condition before surrendering it, and obtain a signed receipt or trackable return record.

Practical steps

1. Confirm the parties

Determine who supplied the money, who entered the contract, and who owns the refund claim. Verify whether the merchant is truly a sole proprietorship rather than a corporation or one-person corporation.

2. Check the governing documents

Review the contract, invoice, warranty, platform rules, cancellation terms, and promised processing time. Specialized transactions—including airline tickets, financial products, insurance, telecommunications, real estate, taxes, and government fees—may follow different rules and agencies.

3. Send a signed written request

Use the claimant’s legal name. If a sole proprietor is claiming, add “sole proprietor doing business as” followed by the trade name. Attach proof of payment and the documents establishing the refund basis.

Send the request through a traceable channel. Keep the sent message, delivery confirmation, and any ticket number.

4. Use the platform or payment-provider process when applicable

For online orders, promptly use the platform’s dispute or return system. For card, bank, or e-wallet payments, contact the provider if the transaction was unauthorized, duplicated, or not fulfilled. Provider dispute periods may be much shorter than court or administrative limitation periods.

5. Escalate to the proper agency

For consumer products and services within DTI’s jurisdiction, an initial complaint may be filed through the DTI Consumer Care portal, by email at consumercare@dti.gov.ph, by mail, or in person at the appropriate DTI office. DTI asks for proof of transaction and other supporting evidence. Review the current filing guidance.

DTI mediation is mandatory before formal DTI adjudication of covered consumer complaints. Under DTI’s current rules, mediation is generally completed within seven working days from service of the notice on the business, subject to an agreed extension of up to ten working days. If mediation fails, DTI may issue a Certificate to File Action for adjudication or other available remedies.

The claimant should sign the initial complaint. A formal adjudication complaint must comply with DTI’s verification, evidence, certification, and signature requirements.

6. Consider a money claim when appropriate

The Supreme Court’s Rules on Expedited Procedures cover qualifying small claims for money not exceeding ₱1,000,000, excluding interest and costs, including certain claims arising from sales and services. The proper party must still be named: for a sole proprietorship, that is generally the proprietor, identified together with the trade name. See the Supreme Court’s current small-claims rules and forms.

Barangay conciliation may first be required in some disputes between natural persons residing in the same city or municipality, subject to statutory exceptions. Because a sole proprietor is a natural person, do not assume that using a trade name avoids this possible requirement.

Important deadlines

A private merchant is not subject to one universal deadline for every kind of refund. The applicable period may come from the contract, warranty, platform rules, payment-provider rules, or a specialized law.

For claims under the Consumer Act, Article 169 generally provides a two-year prescriptive period from the consummation of the consumer transaction or commission of the deceptive, unfair, or unconscionable act. For hidden defects, the period runs from discovery. Do not treat this as permission to wait: warranty notices, platform disputes, chargebacks, return windows, and evidence-preservation needs may require much earlier action.

Different limitation periods may govern ordinary contract, quasi-contract, damages, tax, or regulatory claims. Obtain specific advice when the transaction is old or the deadline is uncertain.

Common mistakes

Signing only the trade name as though it were a corporation.
Naming only the sole proprietorship in a formal case without identifying the owner.
Letting an employee or relative sign without written authority.
Giving a representative authority to “follow up” but not to settle, receive money, or sign a release.
Assuming the person named on the receipt necessarily owns the refund despite contrary payment or agency records.
Demanding a refund solely because of a change of mind.
Failing to state the refund’s factual and contractual or legal basis.
Returning the item without first documenting its condition and obtaining proof of return.
Surrendering original evidence without retaining copies.
Signing a broad quitclaim without understanding what claims are being waived.
Accepting a refund to an unrelated third-party account without verifying the instruction.
Waiting for informal promises until a warranty, platform, chargeback, or statutory period expires.

When legal help is urgent

Seek prompt advice or assistance when:

the two-year Consumer Act period or another deadline may be near;
the amount is substantial or several people claim the same refund;
the payer, purchaser, cardholder, and beneficiary are different;
the owner has died, become incapacitated, sold the business, or cannot be located;
the merchant demands a broad waiver, confidentiality clause, or partial settlement;
there are allegations of fraud, identity theft, forged authority, or unauthorized payment;
the seller is anonymous or has disappeared;
the product creates an immediate health or safety risk;
the claim concerns taxes, customs duties, government fees, real estate, insurance, securities, financing, telecommunications, utilities, or another specially regulated field; or
formal DTI adjudication or court action is being considered.

For a suspected unauthorized electronic payment, contact the bank, card issuer, e-wallet, and platform immediately. If the seller appears fictitious or untraceable, preserve all electronic evidence and consider reporting the matter to the appropriate cybercrime authorities.

FAQ

Does the sole proprietor have to sign the customer’s refund request?

No. The customer or other claimant signs the request. The proprietor signs only when making a merchant-side response, authorization, acknowledgment, or settlement, unless the form specifically requires both parties’ signatures.

Can a cashier or manager approve the refund?

Only if the proprietor actually gave that person sufficient authority. For a material refund or settlement, ask for written confirmation of the representative’s authority.

Must an ordinary refund request be notarized?

Generally, an initial private demand does not have to be notarized merely because the recipient is a sole proprietorship. Notarization or sworn verification may be required by a specific contract, agency procedure, formal complaint, or power of attorney.

What if the refund was requested under the business name?

Correct the record by identifying the proprietor’s legal name and the trade name. A simple request may be amended, but a formal complaint should comply with the tribunal’s rules on the proper parties.

Can the refund be deposited into the sole proprietorship’s bank account?

It may be, if that account belongs to the proprietor and the payor’s procedure permits it. The request should clearly identify the claimant and refund account. Avoid directing payment to an unrelated third party.

Who signs if the original buyer used someone else’s card?

That depends on who was the contracting buyer, whose funds were used, and the card issuer’s refund rules. The merchant may be required to reverse the payment to the original card, while the legal claim may belong to the buyer, cardholder, or principal shown by the documents. Obtain written authority if one person will act for the other.

Official sources

This article provides general Philippine legal information, not advice for a specific transaction. Rights, proper parties, authority requirements, and deadlines may change based on the documents and facts. Official sources and procedures were checked as of 20 July 2026.