RTL e) to assure the public of the consistency

of standardized products.
Consumer Act of the Philippines
(Republic Act No. 7394) ARTICLE 6. Implementing Agencies. — The
provisions of this Article and its implementing
rules and regulations shall be enforced by:
ARTICLE 2. Declaration of Basic Policy. — It is
the policy of the State to protect the interests of a) the Department of Health with respect
the consumer, promote his general welfare and to food, drugs, cosmetics, devices and
to establish standards of conduct for business substances;
and industry. Towards this end, the State shall b) the Department of Agriculture with
implement measures to achieve the following respect to products related to agriculture,
objectives: and;
a) protection against hazards to health c) the Department of Trade and Industry
and safety; with respect to other consumer products
b) protection against deceptive, unfair not specified above.
and unconscionable sales acts and
practices; ARTICLE 9. Effectivity of Rules. — a) Each
c) provision of information and education consumer product standard or safety rule shall
to facilitate sound choice and the proper specify the date such rule is to take effect, which
exercise of rights by the consumer; shall not exceed ninety (90) days from the date
d) provision of adequate rights and means promulgated unless the concerned department
of redress; and finds, for good cause shown, that a later effective
e)involvement of consumer date is in the public interest and publishes its
representatives in the formulation of social reasons for such finding. After which, it shall no
and economic policies. longer be legal to, or cause to, sell or distribute
the consumer product not complying with the
standards or rules.
ARTICLE 3. Construction. — The best interest
of the consumer shall be considered in the b) The department may, by regulation,
interpretation and implementation of the prohibit a manufacturer from stockpiling
provisions of this Act, including its implementing consumer products so as to prevent such
rules and regulations. manufacturer from circumventing the
purposes of this paragraph. The term
●​ Construed for the best interest of the
"stockpiling" means manufacturing or
consumer
importing a product between the date
of promulgation of its consumer
product safety rule and its effective
CHAPTER I Consumer Product Quality and date, at a rate which is significantly
Safety greater than the rate at which such
product was produced or imported
during a base period, as prescribed in
ARTICLE 5. Declaration of Policy. — It shall be the regulation under this paragraph,
the duty of the State: ending before the date of promulgation of
a) to develop and provide safety and consumer product safety rule.
quality standards for consumer products,
including performance or use-oriented ARTICLE 10. Injurious, Dangerous and Unsafe
standards, codes of practice and methods Products. — Whenever the departments find, by
of tests; their own initiative or by petition of a consumer,
b) to assist the consumer in evaluating the that a consumer product is found to be injurious,
quality, including safety, performance and unsafe or dangerous, it shall, after due notice and
comparative utility of consumer products; hearing, make the appropriate order for its recall,
c) to protect the public against prohibition or seizure from public sale or
unreasonable risks of injury associated distribution: Provided, That, in the sound
with consumer products; discretion of the department it may declare a
d) to undertake research on quality consumer product to be imminently injurious,
improvement of products and investigation unsafe or dangerous, and order is immediate
into causes and prevention of product recall, ban or seizure from public sale or
related deaths, illness and injuries; distribution, in which case, the seller, distributor,
manufacturer or producer thereof shall be
afforded a hearing within forty-eight (48) hours ARTICLE 22. Rules and Regulations on
from such order. Definitions and Standards.
●​ Whenever in the judgment of the
The ban on the sale and distribution of a Department such action will promote
consumer product adjudged injurious, unsafe or honesty and fair dealing in the interest of
dangerous, or imminently injurious, unsafe or consumers, it shall promulgate rules and
dangerous under the preceding paragraph shall regulations fixing and establishing a
stay in force until such time that its safety can be reasonable definition and standard of
assured or measures to ensure its safety have identity, a reasonable standard of quality
been established. and/or reasonable standard of fill of
containers for food, drugs, cosmetics or
ARTICLE 14. Certification of Conformity to devices.
Consumer Product Standards. — The
concerned department shall aim at having CHAPTER I
consumer product standards established for Deceptive, Unfair and Unconscionable
every consumer product so that consumer
Sales Acts or Practices
products shall be distributed in commerce only
after inspection and certification of its quality and
safety standards by the department. The ARTICLE 48. Declaration of Policy.
manufacturer shall avail of the Philippine
Standard Certification Mark which the department ●​ The State shall promote and encourage
shall grant after determining the product's fair, honest and equitable relations among
compliance with the relevant standard in parties in consumer transactions and
accordance with the implementing rules and protect the consumer against deceptive,
regulations. unfair and unconscionable sales acts or
practices.
CHAPTER II Food, Drugs, Cosmetics and
Devices ARTICLE 49. Implementing Agency.
●​ The Department of Trade and Industry,
hereby referred to as the Department,
ARTICLE 20. Declaration of Policy. — The
shall enforce the provisions of this
State shall ensure safe and good quality of food,
Chapter.
drugs, cosmetics and devices, and regulate their
production, sale, distribution and advertisement to
protect the health of the consumer. ARTICLE 53. Chain Distribution Plans or
Pyramid Sales Schemes.
ARTICLE 21. Implementing Agency. — In the ●​ Chain distribution plans or pyramid sales
implementation of the foregoing policy, the State, schemes shall not be employed in the sale
through the Department of Health, hereby of consumer products.
referred as the Department, shall, in accordance
with the provisions of this Act:
●​ Only the top/first investors are being paid
through the investments of the latter
a)​ establish standards and quality measures investors
for foods, drugs, devices and cosmetics;
b)​ adopt measures to ensure pure and safe
supply of foods and cosmetics, and safe, Chain Distribution Plans or Pyramid Sales
efficacious and good quality of drugs and Schemes means that sales devices whereby a
devices in the Country; person, upon condition that he makes an
c)​ adopt measures to ensure the rational use investment, is granted by the manufacturer or his
of drugs and devices, such as, but not representative a right to recruit for profit one or
limited to, banning, recalling or more additional persons who will also be granted
withdrawing from the market drugs and such right to recruit upon condition of making
devices which are unregistered, unsafe, similar investments:
inefficacious or of doubtful therapeutic ●​ Provided, That, the profits of the person
value, the adoption of an official National employing such a plan are derived
Drug Formulary, and the use of generic primarily from the recruitment of other
names in the labeling of drugs; persons into the plan rather than from the
d)​ strengthen the Bureau of Food and Drugs sale of consumer products, services and
credit:
 ●​ Provided further, That limitation on the ●​ Usually stated in the contract
number of participants does not change
the nature of the plan
Example. In a jurisprudence, it is express warranty when
the following are present.
●​ A promoter persuades recruits to
purchase products, services, credit, title or ●​ First, there must be a affirmation of fact
rank whereby the recruits can receive or any promise of the seller relating to
income primarily from the mere the subject matter of the sale;
introduction, recruitment or sponsorship of ●​ Natural tendency of promise is to induce
other participants into the scheme rather to purchased the buyer to buy the thing
than from the marketing and sale of ●​ The buyer purchases that thing solely
products because of that promise.

CHAPTER II Implied Warranties

Regulation of Practices Relative to Weights ●​ Implied warranties are those which by law
and Measures constitute part of every contract of sale,
whether or not the parties were aware and
ARTICLE 61. Implementing Agency. whether or not the parties intended them
●​ It can be not written
●​ The provincial, city, or municipal
●​ Whether or not it is included in the
treasurers shall strictly enforce the
contract
provisions of this Chapter, and its
implementing rules and regulations: ○​ Warranty against hidden defects

Mere opinions are NOT WARRANTY unless it

●​ Provided, That, with respect to the use of was from a PROFESSIONAL
the Metric System, it shall be enforced by
the Department of Trade and Industry. Atty. Jephtha’s Question

ARTICLE 62. Sealing and Testing of The sales lady in Watsons told Pedro that
Instruments of Weights and Measure. Shampoo X is good for persons suffering from
hair fall. Pedro in reliance purchased Shampoo
●​ All instruments for determining weights X relying on declaration of the sales lady. Is
and measures in all consumer and there an implied warranty?
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 What are the requisites to recover on
or his authorized representative upon account of hidden defects?
payment of fees required under existing
law: Provided, That all instruments of ●​ There are five (5) requisites in order to
weights and measures shall continuously recover on account of hidden defects.
be inspected for compliance with the These are the followings:
provisions of this Chapter.
○​ The defect must be hidden
CHAPTER III ○​ The defect must exist at the time
Consumer Product and Service Warranties of sale
○​ The defect must be ordinarily
ARTICLE 67. Applicable Law on Warranties. included in the contract
○​ The defect must be important
●​ The provisions of the Civil Code on
-thing will be unfit
conditions and warranties shall govern all
○​ The action must be instituted
contracts of sale with conditions and
within the proper prescriptive
warranties.
period.

Express Warranties
●​ Guarantee from the seller that the Prescriptive Period under the New Civil Code
qualifications promised by the seller meets ●​ It is the right when if you did not act upon
the expectations is deemed WAIVED by law.
 ●​ In cases of HIDDEN DEFECTS AN ACT PROVIDING PROTECTION TO
○​ 6 Months from the time of delivery CONSUMERS BY STABILIZING THE PRICES
OF BASIC NECESSITIES AND PRIME
●​ In cases of EXPRESS WARRANTY COMMODITIES AND BY PRESCRIBING
○​ 4 years MEASURES AGAINST UNDUE PRICE
○​ May be invoked with DTI INCREASES DURING EMERGENCY
SITUATIONS AND LIKE OCCASIONS
●​ This Act shall be referred to as the "Price
CHAPTER IV Act."
Labeling and Fair Packaging
Sec. 2. Declaration of Basic Policy.
ARTICLE 74. Declaration of Policy. ●​ It is the policy of the State to ensure the
●​ The State shall enforce compulsory availability of basic necessities and prime
labeling, and fair packaging to enable the commodities at reasonable prices at all
consumer to obtain accurate information times without denying legitimate business
as to the nature, quality and quantity of a fair return on investment. It is also a
the contents of consumer products and to declared policy of the State to provide
facilitate his comparison of the value of effective and sufficient protection to
such products consumers against hoarding, profiteering
and cartels with respect to the supply,
distribution, marketing and pricing of said
goods, especially during periods of
CHAPTER VI
calamity, emergency, widespread illegal
Advertising and Sales Promotion price manipulation and other similar
situations. To these ends, the State shall:
ARTICLE 108. Declaration of Policy.
(1)​ Develop, adopt and promulgate
●​ The State shall protect the consumer from
measures to promote productivity
misleading advertisements and fraudulent
in basic necessities and prime
sales promotion practices.
commodities;
(2)​ Develop an improved and efficient
transport and distribution system;
Promotion of Sales of Consumer Products
(3)​ Develop, adopt and promulgate
and Services
measures to stabilize prices at
ARTICLE 116. Permit to Conduct Promotion. reasonable levels;
(4)​ Institute appropriate penalties for
●​ No person shall conduct any sales illegal price manipulation and other
campaigns, including beauty contest, violations of this Act; and
national in character, sponsored and (5)​ Establish a mechanism that will
promoted by manufacturing enterprises readily protect consumers from
without first securing a permit from the inadequate supply and
concerned department at least thirty (30) unreasonable price increase on
calendar days prior to the occasions of calamities,
commencement thereof. Unless an emergencies and like occurrences.
objection or denial is received within
fifteen (15) days from filing of the
application, the same shall be deemed Sec. 6. Automatic Price Control.
approved and the promotion campaign or ●​ Unless otherwise declared by the
activity may be conducted: Provided, That President, prices of basic necessities in an
any sales promotion campaign using area shall automatically be frozen at their
medical prescriptions or any part prevailing prices or placed under
thereof or attachment thereto for raffles or automatic price control whenever:
a promise of reward shall not be (1)​ That area is proclaimed or declared a
allowed, nor a permit be issued thereof. disaster area or under a state of calamity;
(2)​ That area is declared under an
emergency;
THE PRICE ACT (3)​ The privilege of the writ of habeas corpus
is suspended in that area;
(Republic Act No. 7581)
(4)​ That area is placed under martial law;
 (5)​ That area is declared to be in a state of signature is the equivalent of the
rebellion; or handwritten document.
(6)​ A state of war is declared in that area. 2.​ Technology Neutral
3.​ Non-Discrimination
If the prevailing price of any basic necessity is ●​ porket electronic docs, hindi na
excessive or unreasonable, the implementing valid and binding compared to
agency may recommend to the President the other forms of contracts.
imposition of a price ceiling for the sale of the
basic necessity at a price other than its prevailing
price. ELECTRONIC DOCUMENT
●​ It refers to information or the
Unless sooner lifted by the President, price representation of information, data,
control of basic necessities under this section figures, symbols or other modes of written
shall remain effective for the duration of the expression, described or however
condition that brought it about, but not for more represented, by which a right is
than sixty (60) days. established or an obligation extinguished,
or by which a fact may be proved and
The terms "disaster" and "calamity" shall include affirmed, which is received, recorded,
those brought about by natural or man-made transmitted, stored, processed,
causes, whether local or foreign. retrieved or produced electronically.

SECTION 6. Legal Recognition of Electronic

Electronic Commerce Act Data Message.
(Republic Act No. 8792)
●​ Information shall not be denied validity or
AN ACT PROVIDING FOR THE RECOGNITION enforceability solely on the ground that it
AND USE OF ELECTRONIC COMMERCIAL is in the form of an electronic data
AND NON-COMMERCIAL TRANSACTIONS, message purporting to give rise to such
PENALTIES FOR UNLAWFUL USE THEREOF, legal effect, or that it is merely
AND OTHER PURPOSES incorporated by reference in that
electronic data message.
Before year 2000 there is an issue whether or not Rationale:
electronic documents, and signatures are valid
●​ Due to the e-commerce act all of
and enforceable
the electronically produced
contracts and documents are
OBJECTIVE OF E-COMMERCE ACT legally recognized and therefore
binding and enforceable.
SECTION 3. Objective.
Take note! It is not absolute because there are
●​ This Act aims to facilitate domestic and
contracts or documents that need to be in
international dealings, transactions,
writing to be valid and to become enforceable.
arrangements, agreements, contracts
and exchanges and storage of ●​ Donation of Personal Property more
information through the utilization of than 5k must be in writing
electronic, optical and similar medium, ●​ Interest must be in writing
mode, instrumentality and technology to ●​ Marriage settlement
recognize the authenticity and reliability
of electronic data messages or
Electronic documents like screenshot can
electronic documents related to such
become admissible as evidence provided that it
activities and to promote the universal use
was within the scope of E-commerce Act. For
of electronic transactions in the
example, "Smoke then fuck" of Maris Racal issue.
government and by the general public.
●​ For basis, Section 12. Admissibility and
Evidential Weight of Electronic Data
KEY FEATURES OF E-COMMERCE ACT Messages or Electronic Documents.

1.​ Functional Equivalent ELECTRONIC SIGNATURE

●​ Anything that is electronic form ●​ It refers to any distinctive mark,
which functions as a docs or characteristic and/or sound in electronic
 form, representing the identity of a person Bilateral contracts
and attached to or logically associated ●​ ‌ Either one of the parties who wants to
with the electronic data message or verify the validity of the signature can do it
electronic document or any methodology
or procedures employed or adopted by a Unilateral contracts
person and executed or adopted by such ●​ ‌walang magv-verify kasi isang party lang
person with the intention of authenticating ang involved.
or approving an electronic data message
or electronic document. Atty. Jephthah’s question
●​ ‌also recognized as binding ●​ Do all contracts need to have a
signature in order to be valid?
‌ ECTION 8. Legal Recognition of Electronic
S ○​ No, not all contracts need
Signatures. signatures of a party to be valid.
For instance, if you're ordering in
●​ An electronic signature on the electronic a fast-food resto, you’re not
document shall be equivalent to the mandatorily obliged to give your
signature of a person on a written signature for the sale (your
document if the signature is an electronic order) to be valid .
signature and proved by showing that a
prescribed procedure, not alterable by the
parties interested in the electronic Instrument that needed signature to be valid
document, existed under which 1.​ ‌Holographic Will
a.​ A method is used to identify the ●​ It is because its requisite is to be
party sought to be bound and to handwritten.
indicate said party's access to the
electronic document necessary for Atty. Jephthah’s question
his consent or approval through
●​ If the testator wants to have an
the electronic signature;
electronically testamentary will, is it still
valid and enforceable?
b.​ Said method is reliable and ○​ Yes, it is still valid and
appropriate for the purpose for enforceable because of the
which the electronic document was “Functional Equivalent” principle
generated or communicated, in the of E-Commerce Act.
light of all circumstances, including
any relevant agreement;
Notarization of Documents
Under notarial Law, it must be subscribed and
c.​ It is necessary for the party sought sworn therein, therefore electronic notarization of
to be bound, in order to proceed documents are not yet binding.
further with the transaction, to have
executed or provided the electronic ELECTRONIC CONTRACTS
signature; and Section 16 Formation and Validity of
Electronic Contracts.
d.​ The other party is authorized ●​ (1) Except as otherwise agreed by the
and enabled to verify the parties, an offer, the acceptance of an
electronic signature and to make offer and such other elements required
the decision to proceed with the under existing laws for the formation of
transaction authenticated by the contracts may be expressed in,
same. demonstrated and proved by means of
electronic data messages or electronic
documents and no contract shall be
Take note! Scanned signatures are denied validity or enforceability on the sole
considered alterable that is why it is not ground that it is in the form of an electronic
binding. However, signatures that was created data message or electronic document, or
using Adobe are considered e-signature and that any or all of the elements required
binding under existing laws for the formation of the
contracts is expressed, demonstrated and
 proved by means of electronic data
message may retain the original form of a
messages or electronic documents.
document?

●​ (2) Electronic transactions made through Answer:

networking among banks, or linkages The conditions are:
thereof with other entities or networks, and a.​ there exists a reliable assurance as to
vice versa, shall be deemed the integrity of the electronic or
consummated upon the actual dispensing electronic data message from the time
of cash or the debit of one account and when it was generated in its final form
the corresponding credit to another, and such integrity is shown by evidence
whether such transaction is initiated by the aliunde; and
depositor or by an authorized collecting b.​ the electronic document or electronic
party: Provided, That the obligation of one data message is capable of being
bank, entity, or person similarly situated to displayed to the person to whom it is to
another arising therefrom shall be be presented.
considered absolute and shall not be
subjected to the process of preference of
credits.
When are electronic signatures equivalent
to the signature of a person?
Atty. Jephthah’s question
Answer:
●​ Imagine that you need a CD and you're They are equivalent to the signature of a
scrolling online through Lazada or person if the signature:
Shopee, and you check out the CD you
wanted. Is there a definite offer and a.​ is an electronic signature; and
acceptance on that? b.​ is proved by showing that a
prescribed procedure not
○​ No, under the law, “Advertising alterable by the parties
and billboards are just mere interested in the electronic
invitations for you to purchase.” document or electronic message
Therefore, there is no definite existed.
offer and acceptance on that.
Note: The electronic
■​ For example, signature shall be
advertisements on equivalent to a manual
Lazada, Shopee and signature
other E-Shopping
platform.

Briefly explain the legal recognition of

electronic data messages and electronic
documents.

Answer:
●​ Electronic data messages or electronic
documents shall have the legal effect,
validity or enforceability as any other
document or legal writing. The provision
of the information in an electronic data
message or electronic document
satisfies the requisite legal requirement.

What are the conditions under which an

electronic document or electronic data