To protect consumers from unintended expenses, a new bill is pushing for the prohibition of automatic or preselected add-ons in online transactions.
House Bill No. 11281 seeks to address growing concerns about online platforms that add extra charges without user consent by including such practices among those deemed unfair and unconscionable under the Consumer Act of the Philippines.
The bill cites instances of senior citizens and users with limited technological knowledge who have inadvertently paid for additional products or services because they failed to notice or deselect the add-ons during online transactions.
“We aim to help people avoid unintended expenses which they are not fully knowledgeable about, thereby upholding the Filipino consumer’s right to make informed choices,” the authors of the bill stated.
The bill’s provisions call for the inclusion of automatic add-ons in the list of prohibited sales practices under Republic Act No. 7394.
HB 11281 further proposes an increase in penalties for violators, raising fines from P20,000 to P100,000. In comparison, the current fine for unfair sales practices under RA 7394 ranges from P500 to P10,000.
The lawmakers expressed concern over the practice that, although subtle, increases business profits at the expense of consumers.
“These features are often difficult to notice or remove, creating confusion for users, particularly senior citizens and those with limited online technology knowledge. As a result, customers may unintentionally pay for services they do not need, imposing unnecessary financial burdens,” they explained.
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