The Philippine Standard (PS) Quality The PS Quality and/or Safety Mark

and/or Safety Certification Mark License serve as the consumers’ guide and
is granted to either local or foreign assurance that what they purchase are
manufacturer whose factory and product certified quality and safety products
have successfully complied with the conforming to the relevant Philippine
requirements of the PNS ISO 9001 and National Standards.
the relevant product standard/s
 Republic Act No. 7394
CONSUMER PROTECTION ACT
OF THE PHILIPPINES
Constitutional Basis :
Article XVI, Section 9 of the
1987 Philippine Constitution :

“The state shall protect consumers from the trade

malpractices and from substandard or hazardous
products.”
Declaration of Basic Policy
It is the policy of the State to protect the
interests of the consumer, promote his
general welfare and to establish
standards of conduct for business and
industry.
Article 2, R.A. 7394
Declaration of Basic Policy
Towards this end, the State shall implement measures to achieve the following
objectives:
a) protection against hazards to health and safety;
b) protection against deceptive, unfair and unconscionable sales
acts and practices;
c) provision of information and education to facilitate sound
choice and the proper exercise of rights by the consumer
d) provision of adequate rights and means of redress; and
e) involvement of consumer representatives in the formulation of
social and economic policies.

Article 2, R.A. 7394

How to construe?
The best interest of the consumer
shall be considered in the interpretation
and implementation of the provisions
of this Act, including its implementing
rules and regulations.

Article 3, R.A. 7394

 RIGHTS OF A BUYER AS A
PARTICIPANT IN A COMMERCIAL
TRANSACTION

Borrowed Slides. Lifted from Google.

 Right to Safety
•Protection against the marketing of
goods or the provision of services that
are hazardous to health and life.

Borrowed Slides. Lifted from Google.

 Right to Information
•Protection against dishonest or misleading
advertising or labelling and has the right
to be given the facts and information
needed to make an informed choice.

Borrowed Slides. Lifted from Google.

Right to Choose
•The right to choose
from among various
products at
competitive prices
with an assurance of
satisfactory quality

Borrowed Slides. Lifted from Google.

Right to Representation
•The right to express consumer interests
in the making and execution of
government policies.

Borrowed Slides. Lifted from Google.

Right to Redress
•The right to be
compensated for
misrepresentation,
shoddy goods or
unsatisfactory
services.
Borrowed Slides. Lifted from Google.
Right to Consumer Education
•The right to
acquire
knowledge and
skills necessary
to be an
informed
customer.
Borrowed Slides. Lifted from Google.
Terms we should be familiar :
b) "Advertising" means the business of conceptualizing,
presenting or making available to the public, through any
form of mass media, fact, data or information about the
attributes, features, quality or availability of consumer
products, services or credit.

Article 4, R.A. 7394

Terms we should be familiar :
k) "Chain distribution plans" or "pyramid sales schemes" means sales
devices whereby a person, upon condition that he makes an
investment, is granted by the manufacturer of his representative a
right to recruit for profit one or more additional persons who
will also be granted such right to recruit upon condition of making
similar investments:
Provided, That the profits of the person employing such a
plan are derived primarily from the recruitment of other
persons into the plan rather than from the sale of consumer
products, services and credit. (Limit as to number of people involved not an issue)
Article 4, R.A. 7394
Terms we should be familiar :
l) "Closing out sale" means a consumer sale
wherein the seller uses the announcement
to create the impression that he is willing
to give large discounts or merchandise in
order to reduce, dispose or close out his
inventory and business.
Article 4, R.A. 7394
Terms we should be familiar :
q) "Consumer products and services" means goods,
services and credits, debts or obligations
which are primarily for personal, family,
household or agricultural purposes, which
shall include but not limited to food, drugs,
cosmetics, and devices.

Article 4, R.A. 7394

Terms we should be familiar :
s) "Consumer transaction" means :
(1) (i) a sale, lease, assignment, award by chance, or other
disposition of consumer products, including chattels that are
intended to be affixed to land, or of services, or of any right,
title, or interest therein, except securities as defined in the
Securities Act and contracts of insurance under the
Insurance Code, or

(ii) a grant of provision of credit to a consumer for

purposes that are primarily personal, family, household or
agricultural. Article 4, R.A. 7394
Terms we should be familiar :
s) "Consumer transaction" means :

(2) a solicitation or promotion by a supplier with respect to a

transaction referred to in clause.

Article 4, R.A. 7394

Terms we should be familiar with
: v) "Counterfeit product" means any consumer product which, or the
container or labeling of which, without authorization, bears the
trademark, trade name, or other identifying mark, imprint, or
device, or any likeness thereof, of a consumer product manufacturer,
processor, packer, distributor, other than the person or persons who
in fact manufactured, processed, packed or distributed such
product and which thereby falsely purports or is represented to
be the product of, or to have been packed or distributed by
such consumer product manufacturer, processor, packer, or
distributor.
Article 4, R.A. 7394
Terms we should be familiar with :
ak) "Hazardous substance" means:
(1) (i) Any substance or mixture of substances which is toxic,
corrosive, irritant, a strong sensitizer, flammable or
combustible, or generates pressure through decomposition,
heat or other means, if such substance or mixture or substances
any cause substantial injury or substantial illness during or as a
proximate result of any customary or reasonably foreseeable
ingestion by children.
(ii) Any substance which the department finds to be under the
categories enumerated in clause (1) (i) of this paragraph;
Article 4, R.A. 7394
Terms we should be familiar with :
ak) "Hazardous substance" means:
(iii) Any radioactive substance, if, with respect to such substance as
used in a particular class of article or as packaged, the Department,
upon approval of the Department determines by regulation that
the substance is sufficiently hazardous to require labeling in
accordance with this section in order to protect the public health;
(iv) Any toy or other articles intended for use by children which the
director may, by regulation, determine the presence of an electrical,
mechanical or thermal hazard.

Article 4, R.A. 7394

Terms we should be familiar with :
ak) "Hazardous substance" means:
(2) This term shall not apply to food, drugs, cosmetics, and devices
nor to substances intended for use as fuels when stored in
containers and used in the heating, cooking or refrigeration
system of a house, but such term shall apply to any article which is
not in itself a pesticide but which is a hazardous substance, as
construed in clause (a) of paragraph (1), by reason of bearing or
containing such harmful substances described therein.

Article 4, R.A. 7394

Terms we should be familiar with :
aq) "Label, labeling" means the display of written, printed
or graphic matter on any consumer product its immediate
container, tag, literature or other suitable material affixed
thereto for the purpose of giving information as to
identify, components, ingredients, attributes, directions
for use, specifications and such other information as
may be required by law or regulations.

Article 4, R.A. 7394

Terms we should be familiar with :
az) "Package" or "packaging" means any container or
wrapping in which any consumer product is enclosed
for use in the delivery or display of that consumer product
to retail purchasers, but does not include:
1) shipping containers or wrappings used solely for the
transportation of any consumer product in bulk or in big
quantities by manufacturers, packers, or processors to
wholesale retail distributors thereof;

Article 4, R.A. 7394

Terms we should be familiar with :
az) "Package" or "packaging" :
2) shipping containers or outer wrappings used by retailers
to ship or deliver any product to retail costumers if such
containers and wrappings bear no printed matter pertaining
any particular product;
3) The wrappers or containers of consumer products sold in
small quantities by small retail stores to the consumer
which by tradition are wrapped with ordinary paper.

Article 4, R.A. 7394

Terms we should be familiar with :
bm) "Sales Promotion" means techniques intended for broad
consumer participation which contain promises of gain
such as prizes, in cash or in kind, as reward for the
purchase of a product, security, service or winning in
contest, game, tournament and other similar competitions
which involve determination of winner/s and which utilize
mass media or other widespread media of information. It
also means techniques purely intended to increase the
sales, patronage and/or goodwill of a product.
Article 4, R.A. 7394
 TITLE II
CHAPTER I
CONSUMER PRODUCT
QUALITY AND SAFETY
Declaration of Policy :
It shall be the duty of the State:
a) to develop and provide safety and quality standards
for consumer products, including performance or use-
oriented standards, codes of practice and methods of
tests;
b) to assist the consumer in evaluating the quality,
including safety, performance and comparative utility of
consumer products;
Article 5, R.A. 7394
Declaration of Policy :
It shall be the duty of the State:
c) to protect the public against unreasonable risks of
injury associated with consumer products;
d) to undertake research on quality improvement of
products and investigation into causes and prevention
of product related deaths, illness and injuries;
e) to assure the public of the consistency of
standardized products.
Article 5, R.A. 7394
Implementing Agencies:

food, drugs, cosmetics,

products related to agriculture other consumer products
devices and substances

Article 6, R.A. 7394

Promulgation & Adoption of Standards
The concerned department shall establish consumer
product quality and safety standards which shall consist
of one or more of the following:
a) requirements to performance, composition, contents,
design, construction, finish, packaging of a consumer
product;
b) requirements as to kind, class, grade, dimensions,
weights, material;

Article 7, R.A. 7394

Promulgation & Adoption of Standards
c) requirements as to the methods of sampling, tests and
codes used to check the quality of the products;
d) requirements as to precautions in storage, transporting
and packaging;
e) requirements that a consumer product be marked with
or accompanied by clear and adequate safety warnings
or instructions, or requirements respecting the form of
warnings or instructions.

Article 7, R.A. 7394

Promulgation & Adoption of Standards
- They adopt existing government domestic product
quality and safety standards;
- If there is such a standard, form specialized technical
committees composed of equal number of reps from
each of the Government, business and consumer sectors
to formulate, develop and purpose consumer product
quality and safety standards.
- Consider existing international standards recognized
by the Philippine Government.
Article 7, R.A. 7394
Publication of Standards
The concerned departments shall, upon promulgation of the
above standards, publish or cause the publication of the same in
two (2) newspapers of general circulation at least once a week
for a period of not less than one (1) month.

It may likewise conduct an information campaign through other

means deemed effective to ensure the proper guidance of
consumers, businesses, industries and other sectors concerned.

Article 8, R.A. 7394

Effectivity of the Rules
Each consumer product standard or safety rule shall specify the
date such rule is to take effect, which shall not exceed ninety
(90) days from the date promulgated unless the concerned
department funds, for good cause shown, that a later effective date
is in the public interest and publishes its reasons for such
finding. After which, it shall no longer be legal to, or cause to, sell or
distribute the consumer product not complying with the standards
or rules.

Article 9, R.A. 7394

Effectivity of the Rules
“Stockpiling" means manufacturing or importing a
product between the date of promulgation of its
consumer product safety rule and its effective date,
at a rate which is significantly greater than the rate
at which such product was produced or imported
during a base period as prescribed in the regulation
under this paragraph, ending before the date of
promulgation of consumer product safety rule.
Article 9, R.A. 7394
Injurious, Dangerous and Unsafe Products
Whenever the departments find that a consumer
product is injurious, unsafe or dangerous, it shall,
after due notice and hearing, make the
appropriate order for its recall, prohibition or
seizure from public sale or distribution.

Article 10, R.A. 7394

Injurious, Dangerous and Unsafe Products
Provided, That, in the sound discretion of the
department it may declare a consumer product to be
imminently injurious, unsafe or dangerous, and order
is immediate recall, ban or seizure from public sale or
distribution, in which case, the seller, distributor,
manufacturer or producer thereof shall be afforded a
hearing within forty-eight (48) hours from such
order.
Article 10, R.A. 7394
Injurious, Dangerous and Unsafe Products
The ban on the sale and distribution of a consumer
product adjudged injurious, unsafe or dangerous, or
imminently injurious, unsafe or dangerous shall stay in
force until such time that its safety can be assured
or such measures to ensure its safety have been
established.

Article 10, R.A. 7394

Amendment and/or Revocation

Any interested person may petition the appropriate

department to commence a proceeding for the
issuance of an amendment or revocation of a
consumer product safety rule or an order declaring a
consumer product injurious, dangerous and unsafe

Article 11, R.A. 7394

Amendment and/or Revocation
In case the department, upon petition by an interested party or its
own initiative and after due notice and hearing, determines a
consumer product to be substandard or materially defective, it
shall so notify the manufacturer, distributor or seller thereof of
such finding and order such manufacturer, distributor or seller to:

a) give notice to the public of the defect or failure to comply

with the product safety standards; and

b) give notice to each distributor or retailer of such product.

Article 11, R.A. 7394

Amendment and/or Revocation
The department shall also direct the manufacturer, distributor or seller of
such product to extend any or all of the following remedies to the
injured person:
a) to bring such product into conformity with the requirements of the
applicable consumer product standards or to repair the defect in order to
conform with the same;
b) to replace the product with a like or equivalent product which complies
with the applicable consumer product standards which does not contain
the defect;
c) to refund the purchase price of the product less a reasonable allowance
for use; and
d) to pay the consumer reasonable damages as may be determined by the
department. Article 11, R.A. 7394
New Products
The concerned department shall take measures to
make a list of new consumer products and to cause
the publication by the respective manufacturers or
importers of such products a list thereof together
with the descriptions in a newspaper of general
circulation.

Article 13, R.A. 7394

Imported Products
a) Any consumer product offered for importation into the
customs of the Philippine territory shall be refused
admission if such product:
1. fails to comply with an applicable consumer product
quality and safety standard or rule;
2. is or has been determined to be injurious, unsafe and
dangerous;
3. is substandard; or
4. has material defect.
Article 15, R.A. 7394
Imported Products
-Samples may be obtained by the concerned department or
agency without charge from the owner or consignee thereof;
-opportunity to a hearing with respect to the importation of
such products into the Philippine;
-refused admission unless the owner or the consignee
thereof manifests under bond that none of the above
ground for non-admission exists or that measures have been
taken to cure them before they are sold, distributed or
offered for sale to the general public.
Article 15, R.A. 7394
Imported Products
-Imported consumer products not admitted must be
exported, except that upon application, the Commissioner
of Customs may permit the destruction of the product if,
within a reasonable time, the owner or consignee thereof
fails to export the same.

Article 15, R.A. 7394

Prohibited Acts
a) manufacture for sale, offer for sale, distribute in
commerce, or import into the Philippines any consumer
product which is not in conformity with an applicable
consumer product quality or safety standard promulgated in
this Act;
b) manufacture for sale, offer for sale, distribute in
commerce, or import into the Philippines any consumer
product which has been declared as banned consumer
product by a rule in this Act;
Article 18, R.A. 7394
Prohibited Acts
c) refuse access to or copying of pertinent records or
fail or refuse to permit entry of or inspection by
authorized officers or employees of the department;
d) fail to comply with an order issued under Article II
relating to notifications of substantial product hazards and
to recall, repair, replacement or refund of unsafe products;
e) fail to comply with the rule prohibiting stockpiling

Article 15, R.A. 7394

 FOOD, DRUGS,
COSMETICS AND
DEVICES
Regulation of Unprocessed Food
The provincial, municipal and city governments
shall regulate the preparation and sale of meat,
fresh fruits, poultry, milk, fish, vegetables and
other foodstuff for public consumption,
pursuant to the Local Government Code.

Article 24, R.A. 7394

Tolerance for Poisonous Ingredients in Food
Any poisonous or deleterious substance added to
any food shall be deemed to be unsafe, except
when such substance is required or can not be
avoided in its production or can not be avoided by
good manufacturing practice.

Article 25, R.A. 7394

Tolerance for Poisonous Ingredients in Food
In such case, the Department shall promulgate regulations limiting the
quantity therein in such extent as he finds necessary for the protection of
public health, and any quantity exceeding the limits so fixed shall be deemed
to be unsafe.
In determining the quantity of such added substance to be tolerated in
different articles of food, the Department shall take into account the extent
to which the use of such article is required or can not be avoided in the
production or manufacture of such articles and the other ways in which
the consumer may be affected by the same or other poisonous or deleterious
substance.

Article 25, R.A. 7394

ASSIGNMENT No.1

A. When is food
considered adulterated ?
Licensing and Registration of drugs & devices
No person shall manufacture, sell, offer for sale, import, export, distribute or
transfer any drug or device, unless an application filed pursuant to sub-
article (b) hereof is effective with respect to such drug or device.

No person shall manufacture, sell, offer for sale, import, export, distribute or
transfer any drug or device without first securing a license to operate from the
Department after due compliance with technical requirements in accordance
with the rules and regulations promulgated by the Department pursuant to
this Act.

Articles 25 and 31, R.A. 7394

ASSIGNMENT No.1

B. When is a drug and/or

device considered
adulterated ?
What is a DEVICE?
- an instrument, apparatus, implement, machine, contrivance, implant, in vitro
reagent, or other similar or related article, including any component, part or
accessory which is :
(1) recognized in the official United States Pharmacopoeia-National Formulary
(USP-NF) or any supplement to them,
(2) intended for use in the diagnosis of disease or other condition or in the
cure, mitigation, treatment or prevention of disease, in man or other
animals; or
(3) intended to affect the structure or any function of the body of man or other
animals, and which does not achieve any of its principal intended purposes
through chemical action within or on the body of man or other animals and
which is not dependent upon being metabolized for the achievement of any
of its principal intended purposes
What is a DEVICE?
- an instrument, apparatus, implement, machine, contrivance, implant, in vitro
reagent, or other similar or related article, including any component, part or
accessory which is :
(1) recognized in the official United States Pharmacopoeia-National Formulary
(USP-NF) or any supplement to them,
(2) intended for use in the diagnosis of disease or other condition or in the
cure, mitigation, treatment or prevention of disease, in man or other
animals; or
(3) intended to affect the structure or any function of the body of man or other
animals, and which does not achieve any of its principal intended purposes
through chemical action within or on the body of man or other animals and
which is not dependent upon being metabolized for the achievement of any
of its principal intended purposes
ASSIGNMENT No.1

C. When is a cosmetic
considered adulterated ?
ENFORCEMENT
For purposes of enforcement of this Article, officers or employees duly
designated by the Department, upon presenting appropriate credentials to
the owner, operator, or agent in charge, are authorized :
(1) to enter, at reasonable hours, any factory, warehouse or establishment in
which food, drugs, devices or cosmetics are manufactured, processed,
packed or held, for introduction into domestic commerce or are held after
such introduction, or to enter any vehicle being used to transport or hold
such food, drugs, devices, or cosmetics in domestic commerce; and
(2) (2) to inspect, in a reasonable manner, such factory, warehouse, or
establishment or vehicle and all pertinent equipment, finished and
unfinished materials, containers and labeling therein.

Article 36, R.A. 7394

ENFORCEMENT
If the officer or employee making any such inspection of a
factory, warehouse or other establishment has obtained any
sample in the course of the inspection, upon completion of
the inspection and prior to leaving the premises he shall
give to the owner, operator, or agent in charge a
receipt describing the samples obtained.

Article 36, R.A. 7394

ENFORCEMENT
Whenever in the course of any such inspection of a factory or other
establishment where food is manufactured, processed or packed, the
officer or employee making the inspection obtains a sample of any
such food, and an analysis made of such sample for the purpose of
ascertaining whether such food consists in whole or in part of any
filthy, putrid or decomposed substance, or is otherwise unfit for
food, a copy of the results of such analysis shall be furnished
promptly to the owner, operator or agent in charge.

Article 36, R.A. 7394

PROHIBITED ACTS
a) manufacture, importation, exportation, sale, offering for sale, distribution
or transfer of any food, drug, device or cosmetic that is adulterated or
mislabeled;
b) the adulteration or misbranding of any food, drug, device or cosmetic;
c) the refusal to permit entry or inspection as authorized by Article 36 to
allow samples to be collected;
d) the giving of a false guaranty or undertaking, except by a person who
relied upon a guaranty or undertaking to the same effect signed by, and
containing the name and address of, the person residing in the Philippines
from whom he received in good faith the food, drug, device, or cosmetic
or the giving of a guaranty or undertaking referred to in Article 41 (b)
which guaranty or undertaking is false;
Article 40, R.A. 7394
PROHIBITED ACTS
e) forging, counterfeiting, simulating, or falsely representing or without
proper authority using any mark, stamp, tag, label, or other
identification device authorized or required by regulations promulgated
under the provisions of this Act;
f) the use by any person to his own advantage, or revealing, other than to
the Department or to the courts when relevant in any judicial proceeding
under this Act, any information concerning any method or process which
as a trade secret is entitled to protection;
g) the alteration, mutilation, destruction, obliteration, or removal of the
whole or any part of the labeling of, or the doing of any other act with
respect to a food, drug, device, or cosmetic, if such act is done while such
product is held for sale (whether or not the first sale) and results in such
Article 40, R.A. 7394
product being adulterated or mislabeled;
PROHIBITED ACTS
h) the use, on the labeling of any drug or in any advertising relating to such
drug, of any representation or suggestion that an application with respect
to such drug is effective under Article 31 hereof, or that such drug
complies with the provisions of such articles;
i) the use, in labeling, advertising or other sales promotion, of any reference
to any report or analysis furnished in compliance with Section 19 of
Executive Order 175, series of 1987;
j) the manufacture, importation, exportation, sale, offering for sale,
distribution, or transfer of any drug or device which is not registered
with the Department pursuant to this Act;

Article 40, R.A. 7394

PROHIBITED ACTS
k) the manufacture, importation, exportation, sale, offering for sale,
distribution, or transfer of any drug or device by any person without the
license from the Department required in this Act;
l) the sale or offering for sale of any drug or device beyond its expiration
or expiry date;
m) the release for sale or distribution of a batch of drugs without batch
certification when required under Article 34 hereof. (For antibiotics)

Article 40, R.A. 7394

HAZARDOUS
SUBSTANCES
Declaration of Policy
The State shall adopt measures designed to
protect the consumer against substances
other than food, drugs, cosmetics and devices
that are hazardous to his health and safety.

Article 42, R.A. 7394

Prohibited Acts
a) introduce or deliver for introduction into commerce of any
mislabeled hazardous substance or banned hazardous substance;
b) alter, mutilate, destroy, obliterate or remove the whole or any part
of the label of a mislabeled hazardous substance, or banned
hazardous substance, if such act is done while the substance is in
commerce or while the substance is held for sale, whether or not
it is the first sale;
c) receive in commerce any mislabeled hazardous substance or
banned hazardous substance and the delivery or preferred
delivery thereof at cost or otherwise;
Article 46, R.A. 7394
Prohibited Acts
d) give false guaranty or undertaking referred to in paragraph (b) of Article
93 and paragraph (b) of Article 45
e) introduce or deliver for introduction into commerce or receive in
commerce and subsequently deliver or preferred at cost or otherwise, or a
hazardous substance in a refused food, drug, cosmetic or device container
or in a container which, though not a reused container, is identifiable as a
food, drug, cosmetic or device container by its labeling or by other
identification. The use of a used food, drug, cosmetic or device container
for a hazardous substance does not diminish the danger posed by the
hazardous substance involved, therefore, such substance shall be deemed a
mislabeled hazardous substance.

Article 46, R.A. 7394

TITLE III. – PROTECTION AGAINST DECEPTIVE, UNFAIR
ANDUNCONSCIONABLE SALES ACTS OR PRACTICES

CHAPTER I
DECEPTIVE, UNFAIR AND
UNCONSCIONABLE SALES ACTS
OR PRACTICES
Deceptive Sales Acts or Practices
A deceptive act or practice by a seller or supplier in connection with
a consumer transaction violates this Act whether it occurs before,
during or after the transaction.

An act or practice shall be deemed deceptive whenever the producer,

manufacturer, supplier or seller, through concealment, false
representation or fraudulent manipulation, induces a consumer
to enter into a sales or lease transaction of any consumer product or
service.

Article 50, R.A. 7394

Examples of Deceptive Sales Acts or Practices
a) a consumer product or service has the sponsorship, approval,
performance, characteristics, ingredients, accessories, uses, or
benefits it does not have;
b) a consumer product or service is of a particular standard, quality,
grade, style, or model when in fact it is not;
c) a consumer product is new, original or unused, when in fact, it is
in a deteriorated, altered, reconditioned, reclaimed or second-
hand state;

Article 50, R.A. 7394

Examples of Deceptive Sales Acts or Practices
d) a consumer product or service is available to the consumer for a
reason that is different from the fact;
e) a consumer product or service has been supplied in accordance
with the previous representation when in fact it is not;
f) a consumer product or service can be supplied in a quantity
greater than the supplier intends;
g) a service, or repair of a consumer product is needed when in fact
it is not;

Article 50, R.A. 7394

Examples of Deceptive Sales Acts or Practices
h) a specific price advantage of a consumer product exists when in
fact it does not;
i) the sales act or practice involves or does not involve a warranty, a
disclaimer of warranties, particular warranty terms or other
rights, remedies or obligations if the indication is false; and
j) the seller or supplier has a sponsorship, approval, or affiliation he
does not have.

Article 50, R.A. 7394

Unfair and Unconscionable
An act or practice shall be deemed unfair or unconscionable
whenever the producer, manufacturer, distributor, supplier or seller,
by taking advantage of the consumer's physical or mental
infirmity, ignorance, illiteracy, lack of time or the general
conditions of the environment or surroundings, induces the
consumer to enter into a sales or lease transaction grossly inimical to
the interests of the consumer or grossly one-sided in favor of the
producer, manufacturer, distributor, supplier or seller.

Article 52, R.A. 7394

Example of Unfair and Unconscionable Acts
a) that the producer, manufacturer, distributor, supplier or seller
took advantage of the inability of the consumer to reasonably
protect his interest because of his inability to understand the
language of an agreement, or similar factors;
b) that when the consumer transaction was entered into, the price
grossly exceeded the price at which similar products or services were
readily obtainable in similar transaction by like consumers;
c) that when the consumer transaction was entered into, the
consumer was unable to receive a substantial benefit from the
subject of the transaction;

Article 52, R.A. 7394

Example of Unfair and Unconscionable Acts
d) that when the consumer was entered into, the seller or supplier
was aware that there was no reasonable probability or payment of
the obligation in full by the consumer; and
e) that the transaction that the seller or supplier induced the
consumer to enter into was excessively one-sided in favor of the
seller or supplier.

Article 52, R.A. 7394

 Chain distribution plans or pyramid
sales schemes
shall not be employed in the
sale of consumer products.

Article 53, R.A. 7394

Home Solicitation Sales
No business entity shall conduct any home
solicitation sale of any consumer product or
service without first obtaining a permit
from the Department. Such permit may be
denied suspended or revoked upon cause as
provided in

Article 54, R.A. 7394

Home Solicitation Sale
- consumer sales or leases which are personally
solicited by any person or organization by
telephone, person-to-person contact or by written
or printed communication other than general
advertising or consummated at the buyer's residence or
a place of business, at the seller's transient quarters, or
away from a seller's regular place of business.

Article 54, R.A. 7394

Home Solicitation Sales
Home solicitation sales may be conducted only
between the hours of nine (9) o'clock in the
morning and seven (7) o'clock in the evening
of each working day: Provided, That solicitation
sales may be made at a time other than the
prescribed hours where the person solicited has
previously agreed to the same.
Article 4, R.A. 7394
Home Solicitation Sales
-Home solicitation sales shall only be conducted
by a person who has the proper identification
and authority from his principal to make such
solicitations.
- Sales generated from home solicitation sales
shall be properly receipted as per existing laws,
rules and regulations on sale transactions.
Articles 56 and 57, R.A. 7394
Home Solicitation Sales
A home solicitation sale shall not represent that:
a) the buyer has been specially selected;
b) a survey, test or research is being
conducted; or
c) c) the seller is making a special offer to a
few persons only for a limited period of
time.
Article 58, R.A. 7394
Referral Sales
Referral selling plans shall not be used in the sale of
consumer products unless the seller executes in
favor of the buyer a written undertaking that will
grant a specified compensation or other benefit to said
buyer in return for each and every transaction
consummated by said seller with the persons referred
by said buyer or for subsequent sales that said buyers
has helped the seller enter into.
Article 59, R.A. 7394
"Referral selling" means the sales device employed by the
sellers wherein the buyer is induced to acquire
goods or services by representing that after the
acquisition of the goods or services, he will receive a
rebate, commission or other benefit in return for
the submission of names of potential customers
or otherwise helping the seller enter into other sales, if
the receipt of such benefit is contingent on an event
occurring after the sale is made.
Article 59, R.A. 7394
TITLE III. – PROTECTION AGAINST DECEPTIVE, UNFAIR
ANDUNCONSCIONABLE SALES ACTS OR PRACTICES

CHAPTER II
REGULATION OF PRACTICES
RELATIVE TO WEIGHTS AND
MEASURES GENERAL PROVISION
Who to implement?
The provincial, city, or municipal treasurers shall
strictly enforce the provisions of this Chapter, and its
implementing rules and regulations: Provided, That,
with respect to the use of the Metric System, it shall be
enforced by the Department of Trade and Industry.

Article 61, R.A. 7394

Subject to Sealing and Testing
All instruments for determining weights and measures in all
consumer and consumer related transactions shall be tested,
calibrated and sealed every six (6) months by the official
sealer who shall be the provincial or city or municipal
treasurer or his authorized representative upon payment of
fees required under existing law: Provided, That all
instruments of weights and measures shall continuously be
inspected for compliance with the provisions of this
Chapter.
Article 62, R.A. 7394
Metric System
The system of weights and measures to be used for all
products, commodities, materials, utilities, services and
commercial transactions, in all contracts, deeds and other
official and legal instruments and documents shall be the
metric system, in accordance with existing laws and their
implementing rules and regulations.
The Department of Trade and Industry shall also adopt
standard measurement for garments, shoes and other similar
consumer products.
Article 62, R.A. 7394
Metric System
Length: Millimeter (mm), Decimeter (dm), Centimeter (cm),
Meter (m), and Kilometer (km) are used to measure how
long or wide or tall an object is.

Weight: Gram (g) and Kilogram(kg) are used to measure how

heavy an object is, using instruments.

Capacity: Milliliter (ml) and Liter (l) are used to measure how
much quantity of liquid an object can hold.
Article 63, R.A. 7394
ASSIGNMENT No.2

C. What are considered

fraudulent acts relative to
weight and measures?
TITLE III. – PROTECTION AGAINST DECEPTIVE, UNFAIR
ANDUNCONSCIONABLE SALES ACTS OR PRACTICES

CHAPTER III
CONSUMER PRODUCT AND
SERVICE WARRANTIES
Who to implement?

The Department of Trade and Industry, shall

strictly enforce the provision of this Chapter
and its implementing rules and regulations.

Article 66, R.A. 7394

What law to apply?

The provisions of the Civil Code on

conditions and warranties shall govern
all contracts of sale with conditions and
warranties.

Article 67, R.A. 7394

Additionally,
a) Terms of express warranty. – Any seller or manufacturer who gives an
express warranty shall:
1. set forth the terms of warranty in clear and readily understandable
language and clearly identify himself as the warrantor;
2. identify the party to whom the warranty is extended;
3. state the products or parts covered;
4. state what the warrantor will do in the event of a defect, malfunction of
failure to conform to the written warranty and at whose expense;
5. state what the consumer must do to avail of the rights which accrue to the
warranty; and
6. stipulate the period within which, after notice of defect, malfunction or
failure to conform to the warranty, the warrantor will perform any
obligation under the warranty. Article 68, R.A. 7394
Additionally,
All written warranties or guarantees issued by
a manufacturer, producer, or importer shall
be operative from the moment of sale.

Article 68, R.A. 7394

Additionally,
c) Designation of warranties. – A written warranty shall
clearly and conspicuously designate such warranty as:
1. "Full warranty" if the written warranty meets the
minimum requirements, to wit :
The warrantor shall : 1) remedy such consumer product within a reasonable
time and without charge in case of a defect, malfunction or failure to conform
to such written warranty; 2) permit the consumer to elect whether to ask for a
refund or replacement without charge of such product or part, as the case may
be, where after reasonable number of attempts to remedy the defect or
malfunction, the product continues to have the defect or to malfunction.
Article 68, R.A. 7394
Additionally,

"Limited warranty" if the written warranty does not

meet such minimum requirements.

Article 68, R.A. 7394

Additionally,
e) Duration of warranty. – The seller and the consumer
may stipulate the period within which the express
warranty shall be enforceable. If the implied warranty
on merchantability accompanies an express warranty,
both will be of equal duration.
Any other implied warranty shall endure not less than
sixty (60) days nor more than one (1) year following the
sale of new consumer products.
Article 68, R.A. 7394
Additionally,
f) Breach of warranties. – 1) In case of breach of express warranty,
the consumer may elect to have the goods repaired or its purchase
price refunded by the warrantor. In case the repair of the product in
whole or in part is elected, the warranty work must be made to
conform to the express warranty within thirty (30) days by either
the warrantor or his representative. The thirty-day period, however,
may be extended by conditions which are beyond the control of the
warrantor or his representative. In case the refund of the purchase
price is elected, the amount directly attributable to the use of the
consumer prior to the discovery of the non-conformity shall be
deducted.
Article 68, R.A. 7394
Additionally,
f) Breach of warranties. – 2) In case of breach of implied
warranty, the consumer may retain in the goods and recover
damages, or reject the goods, cancel and contract and recover from
the seller so much of the purchase price as has been paid, including
damages.

Article 68, R.A. 7394

Warranty in Supply of Services,
a) In every contract for the supply of services to a
consumer made by a seller in the course of a business,
there is an implied warranty that the service will be
rendered with due care and skill and that any
material supplied in connection with such services
will be reasonably fit for the purpose for which it is
supplied.

Article 69, R.A. 7394

Warranty in Supply of Services,
b) Where a seller supplies consumer services in the course of a business and
the consumer, expressly or by implication, makes known to the seller the
particular purpose for which the services are required, there is an implied
warranty that the services supplied under the contract and any material
supplied in connection therewith will be reasonably fit for that purpose or are
of such a nature or quality that they might reasonably be expected to achieve
that result, unless the circumstances show that the consumer does not rely
or that it is unreasonable for him to rely, on the seller's skill or judgment.

Article 69, R.A. 7394

Limitations
The provision of this Act on warranty shall not apply to professional
services of certified public accountants, architects, engineers, lawyers,
veterinarians, optometrists, pharmacists, nurses, nutritionists,
dietitians, physical therapists, salesmen, medical and dental
practitioners and other professionals engaged in their respective
professional endeavors.

Article 70, R.A. 7394

TITLE III. – PROTECTION AGAINST DECEPTIVE, UNFAIR
ANDUNCONSCIONABLE SALES ACTS OR PRACTICES

CHAPTER IV
LABELING AND FAIR PACKAGING
Declaration of Policy
The State shall enforce compulsory labeling, and fair
packaging to enable the consumer to obtain accurate
information as to the nature, quality and quantity of the
contents of consumer products and to facilitate his
comparison of the value of such products.

Article 74, R.A. 7394

Who to implement?
The Department of Trade and Industry shall enforce
the provisions of this Chapter and its implementing
rules and regulations: Provided, That with respect to
food, drugs, cosmetics, devices and hazardous
substances, it shall be enforced by the concerned
department.

Article 75, R.A. 7394

Prohibited Acts
It shall be unlawful for any person, either as principal
or agent, engaged in the labeling or packaging of any
consumer product, to display or distribute or to
cause to be displayed or distributed in commerce
any consumer product whose package or label does
not conform to the provisions of this Chapter.

Article 76, R.A. 7394

Minimum Labeling Requirement
All consumer products domestically sold whether
manufactured locally or imported shall indicate the
following in their respective labels of packaging:
a) its correct and registered trade name or brand
name;
b) its duly registered trademark;
c) its duly registered business name;
d) the address of the manufacturer, importer, repacker
of the consumer productArticle
in the Philippines;
77, R.A. 7394
Minimum Labeling Requirement
e) its general make or active ingredients;
f) the net quality of contents, in terms of weight,
measure or numerical count rounded of to at least
the nearest tenths in the metric system;
g) country of manufacture, if imported; and
h) if a consumer product is manufactured, refilled or
repacked under license from a principal, the label
shall so state the fact.
Article 77, R.A. 7394
Minimum Labeling Requirement
Any word, statement or other information required by or under
authority of the preceding paragraph shall appear on the label or
labeling with such conspicuousness as compared with other
words, statements, designs or devices therein, and in such terms as to
render it likely to be read and understood by the ordinary
individual under customary conditions of purchase or use.

The above requirements shall form an integral part of the label

without danger of being erased or detached under ordinary
handling of the product.

Article 77, R.A. 7394

The Price Tag Law
It shall be unlawful to offer any consumer product for retail sale to the
public without an appropriate price tag, label or marking publicly displayed
to indicate the price of each article and said products shall not be sold at a
price higher than that stated therein and without discrimination to all buyers:

Provided, That lumber sold, displayed or offered for sale to the public shall be
tagged or labeled by indicating thereon the price and the corresponding official
name of the wood:

Provided, further, That if consumer products for sale are too small or the
nature of which makes it impractical to place a price tag thereon price list
placed at the nearest point where the products are displayed indicating the
retail price of the same may suffice. Article 81, R.A. 7394
The Price Tag Law
Price tags, labels or markings must be written clearly, indicating the price of
the consumer product per unit in pesos and centavos.

There shall be no erasures or alterations of any sort

of price tags, labels or markings.

Articles 82 and 83, R.A. 7394

 Republic Act No. 10642
PHILIPPINE LEMON LAW
Declaration of Policy
It is hereby declared the policy of the State to promote full protection to the
rights of consumers in the sale of motor vehicles against business and trade
practices which are deceptive, unfair or otherwise inimical to consumers and
the public interest.

The State recognizes that a motor vehicle is a major consumer purchase or

investment. Hence, the rights of consumers should be clearly defined, including
the means for redress for violations thereof.

Section 2, R.A. 10642

Terms we should be familiar with :
(a) Brand new motor vehicle refers to a vehicle constructed entirely from new
parts and covered by a manufacturer’s express warranty at the time of
purchase that it has never been sold or registered with the Department of
Transportation and Communications (DOTC) or an appropriate agency or
authority, and has never been operated on any highway of the Philippines, or
in any foreign state or country;

(c) Comparable motor vehicle refers to a motor vehicle that is identical or

reasonably equivalent to the motor vehicle to be replaced, in terms of
specifications and values, subject to availability, as the motor vehicle existed at
the time of purchase: Provided, That there shall be an offsetting from this value
for reasonable allowance for its use;
Section 3, R.A. 10642
Terms we should be familiar with :
(h) Lemon Law rights period refers to the period ending twelve (12) months
after the date of the original delivery of a brand new motor vehicle to a
consumer or the first twenty thousand (20,000) kilometers of operation
after such delivery, whichever comes first. This shall be the period during
which the consumer can report any nonconformity, as defined in paragraph
(k) herein, to the standards and specifications of the manufacturer, authorized
distributor, authorized dealer or retailer, and pursue any right as provided for
under this Act;

Section 3, R.A. 10642

Terms we should be familiar with :
(k) Nonconformity refers to any defect or condition that substantially impairs
the use, value or safety of a brand new motor vehicle which prevents it
from conforming to the manufacturer’s or distributor’s standards or
specifications, which cannot be repaired, but excluding conditions resulting
from noncompliance by the consumer of his or her obligations under the
warranty, modifications not authorized by the manufacturer or distributor,
abuse or neglect, and damage due to accident or force majeure;

Section 3, R.A. 10642

Coverage of Lemon Law
This Act shall cover brand new motor vehicles purchased in the Philippines
reported by a consumer to be in nonconformity with the vehicle’s manufacturer
or distributor’s standards or specifications within twelve (12) months from the
date of original delivery to the consumer, or up to twenty thousand (20,000)
kilometers of operation after such delivery, whichever comes first.

The following causes of nonconformity shall be excluded:

(a) Noncompliance by the consumer of the obligations under the warranty;
(b) Modifications not authorized by the manufacturer, distributor, authorized
dealer or retailer;
(c) Abuse or neglect of the brand new motor vehicle; and
(d) Damage to the vehicle due to accident or force majeure.
Section 4, R.A. 10642
Repair Attempts
At any time within the Lemon Law rights period, and after at least four (4)
separate repair attempts by the same manufacturer, distributor, authorized
dealer or retailer for the same complaint, and the nonconformity issue remains
unresolved, the consumer may invoke his or her rights under this Act.

The repair may include replacement of parts components, or assemblies.

Section 5, R.A. 10642

What to do to?
Before availing of any remedy under this Act and subject to compliance with
the provisions of Section 5 hereof, the consumer shall, in writing, notify the
manufacturer, distributor, authorized dealer or retailer of the unresolved
complaint, and the consumer’s intention to invoke his or her rights under
this Act within the Lemon Law rights period.

The warranty booklet issued by the manufacturer, distributor, authorized

dealer or retailer shall clearly state the manner and form of such notice to
constitute a valid and legal notice to the manufacturer, distributor, authorized
dealer or retailer. It shall also clearly state the responsibility of the consumer
under this section.

Section 6, R.A. 10642

What happens after notice?
Subsequent to filing the notice of availment, the consumer shall bring the
vehicle to the manufacturer, distributor, authorized dealer or retailer from
where the vehicle was purchased for a final attempt to address the
complaint of the consumer to his or her satisfaction.

It shall be the duty of the manufacturer, distributor, authorized dealer or

retailer, upon receipt of the motor vehicle and the notice of nonconformity, to
attend to the complaints of the consumer including, as may be necessary,
making the repairs and undertaking such actions to make the vehicle conform
to the standards or specifications of the manufacturer, distributor, authorized
dealer or retailer for such vehicle.

Section 7, R.A. 10642

What happens after notice?
In case the nonconformity issue remains unresolved despite the
manufacturer, distributor, authorized dealer or retailer’s efforts to repair the
vehicle, pursuant to the consumer’s availment of his or her Lemon Law rights,
the consumer may file a complaint before the DTI :

Provided, however, That if the vehicle is not returned for repair, based on the
same complaint, within thirty (30) calendar days from the date of notice
of release of the motor vehicle to the consumer following this repair attempt
within the Lemon Law rights period, the repair is deemed successful;

Section 7, R.A. 10642

What happens after notice?
Provided, finally, That, in the event that the nonconformity issue still exists or
persists after the thirty (30)-day period but still within the Lemon Law rights
period, the consumer may be allowed to avail of the same remedies under
Sections 5 and 6 hereof.

Section 7, R.A. 10642

What happens after notice?
To compensate for the non-usage of the vehicle while under repair and
during the period of availment of the Lemon Law rights, the consumer shall be
provided a reasonable daily transportation allowance, an amount which
covers the transportation of the consumer from his or her residence to his or
her regular workplace or destination and vice versa, equivalent to air-
conditioned taxi fare, as evidenced by official receipt, or in such amount to
be agreed upon by the parties, or a service vehicle at the option of the
manufacturer, distributor, authorized dealer or retailer. Any disagreement
on this matter shall be resolved by the DTI.

Section 7, R.A. 10642

What happens if there is a disagreement?
The DTI shall exercise exclusive and original jurisdiction over disputes
arising from the provisions of this Act. All disputes arising from the provisions
of this Act shall be settled by the DTI in accordance with the following dispute
resolution mechanisms:
1. Mediation
The principles of negotiation, conciliation and mediation towards amicable
settlement between the manufacturer, distributor, authorized dealer or retailer
and the consumer shall be strictly observed;
All disputes that have been submitted for mediation shall be settled not later
than ten (10) working days from the date of filing of the complaint with the
DTI.
Section 8, R.A. 10642
What happens if there is a disagreement?
2. Arbitration
Arbitration is an ADR (alternative dispute resolution) method where the
disputing parties involved present their disagreement to one arbitrator or a
panel of private, independent and qualified third party “arbitrators.”
The arbitrator(s) determine the outcome of the case.

Section 8, R.A. 10642

What happens if there is a disagreement?
3. Adjudication
In the event that both parties do not undertake arbitration proceedings, at least
one of the parties may commence adjudication proceedings, administered by
the DTI. The DTI shall rely on the qualified independent findings as to
conformity to standards and specifications established herein. In no case shall
adjudication proceedings exceed twenty (20) working days.

Section 8, R.A. 10642

What happens if there is a disagreement?
An appeal may be taken from a final judgment or order of the Adjudication
Officer which completely disposes of the case within fifteen (15) days from
receipt thereof. The appeal shall be taken by filing a Memorandum of
Appeal with the Secretary of the DTI, with Notice of Appeal to the
Adjudication Officer, and with a copy duly furnished the adverse party or
parties on any of the following grounds:
i. Grave abuse of discretion;
ii. The decision/order is in excess of jurisdiction or authority of the
Adjudication Officer; and
iii. The decision/order is not supported by the evidence or there is serious
error in the findings of facts. (30 days then Rule 65).

Section 8, R.A. 10642

Reasonable Allowance for Use
“Reasonable allowance for use" shall mean twenty percent (20%) per
annum deduction from the purchase price, or the product of the distance
traveled in kilometers and the purchase price divided by one hundred thousand
(100,000)

Section 9, R.A. 10642

Can the manufacturer/distributor/dealer sell
the returned vehicles?
YES. Should the returned motor vehicle be made available for resale, the manufacturer,
distributor, authorized dealer or retailer shall, prior to sale or transfer, disclose in writing to
the next purchaser of the same vehicle the following information:
(a) The motor vehicle was returned to the manufacturer, distributor, authorized dealer or
retailer;
(b) The nature of the nonconformity which caused the return; and
(c) The condition of the motor vehicle at the time of the transfer to the manufacturer,
distributor, authorized dealer or retailer.

The responsibility of the manufacturer, distributor, authorized dealer or retailer

under this section shall cease upon the sale of the affected motor vehicle to the first
purchaser. (PhP100,000.- Damages and/or Civil and Criminal charges.)
Section 10, R.A. 10642