The Land Transportation Franchising and Regulatory Board (LTFRB) issued a memorandum circular Thursday that penalizes drivers of Transport Network Vehicle Service (TNVS) who initiate unjustified booking cancellations.

LTFRB chairperson Atty. Vigor D. Mendoza II said the resolution, LTFRB MC 2025-055, was issued in response to numerous commuter complaints, particularly regarding cancellations in areas with heavy traffic, and in anticipation of a potential increase in the practice during the holiday season.

The circular classifies driver-initiated booking cancellations as a violation under “Refusal to Convey Passengers,” which is penalized under Section IV.2 of Joint Administrative Order 2014-01.

The penalties for drivers include a fine of P5,000 for the first offense; a P10,000 fine and impounding of the unit for 30 days for the second offense; and a P15,000 fine and cancellation of the Certificate of Public Convenience (CPC) for the third and subsequent offenses.

Mendoza explained that a booking cancellation is considered tantamount to refusal when a TNVS driver unjustifiably cancels a booking that has already been accepted and confirmed on the digital platform.

“The sudden and blatant booking cancellation by TNVS drivers has a severe impact because we are talking about the value of the commuter’s time, which can be compromised by this modus,” Mendoza said.

He added that the issue is also a matter of passenger safety and welfare, especially when cancellations occur during emergency situations.

The new policy penalizes cancellations done to avoid short-distance or non-profitable trips in favor of a higher fare charge, and those involving discrimination against vulnerable passengers, such as senior citizens and persons with disabilities.

It also covers cancellations made while already in transit without a valid reason, and a pattern of canceling bookings that demonstrates a deliberate refusal to serve certain areas, time periods, or passenger profiles without just cause.

To monitor this behavior, the memorandum requires Transport Network Companies (TNCs) to submit a monthly report detailing the number and/or percentage of cancellations categorized by who initiated them — driver, passenger, or system — and a list of drivers with unjustified cancellations and corresponding actions taken by the TNC.

The memorandum provides exceptions for cancellations caused by natural calamities like floods, car maintenance issues, or passenger behavior.