consumer act

• This bill seeks to increase the penalties for violations of certain provisions of Republic Act No. 7394, otherwise known as "The Consumer Act of the Philippines" by amending specific sections that fall under said provisions.
• Republic Act No. 7394 was enacted primarily to protect the consumers against hazards to health and safety, and against deceptive, unfair and unconscionable sales acts and practices.
• Blatant disregard to the law is still practiced by several manufacturers, distributors, retailers, and suppliers that puts the consumer in the losing end.
• This act aims to increase or add to the penalties for those who violate the Consumer Act of the Philippines.
• This is done to provide protection to consumers against hazards to their health and safety, and also to prevent deceptive, unfair and unconscionable sales acts or practices.
• Unfortunately, such harmful practices are still being practiced by some manufacturers, distributors, retailers and suppliers, so the consumer ends up losing in the end.
• Implementing agencies


  • Department of Health (DOH) with respect to food, drugs, cosmetics, devices and substances
  • Department of Agriculture with respect to products related to agriculture
  • Department of Trade and Industry (DTI) with respect to other consumer products not specified above
• Promulgation and Adoption of Consumer Product Standards

  1. Establish consumer product quality and safety standards consisting of: requirements to performance, composition, contents, design, construction, finish, packaging

  2. requirements as to kind, class, grade, dimensions, weights, material

  3. requirements as to the methods of sampling, tests and codes used to check the quality of the products

  4. requirements as to precautions in storage, transporting and packaging

  5. requirements that a consumer product be marked with or accompanied by clear and adequate safety warnings or instructions
• The concerned department shall adopt existing government domestic product quality and safety standards. If there are no such standards, the concerned department shall form specialized technical committees composed of equal number of representatives from the Government, business and consumer sectors to formulate, develop and propose consumer product quality and safety standards.
• The technical committees shall consult with the private sector, which may, motu proprio, develop its own quality and safety standards that shall be subject to review or agencies after public hearings have been conducted for that purpose.
• Motu proprio means official act taken without a formal request from another party.
• Injurious, Dangerous, and Unsafe Products

  1. Departments find a consumer product is injurious, unsafe or dangerous

  2. After due notice and hearing, make the appropriate order for its recall, prohibition or seizure from public sale or distribution

  3. In the sound discretion of the department, it may declare a consumer product to be imminently injurious, unsafe or dangerous, and order its immediate recall, ban or seizure from public sale or distribution

  4. The seller, distributor, manufacturer or producer shall be afforded a hearing within forty-eight (48) hours from such order

  5. The ban on the sale and distribution shall stay in force until the safety can be assured or measures to ensure its safety have been established
• Deceptive Sales Acts and Practices


  An act or practice by a seller or supplier that induces a consumer to enter into a sales or lease transaction through concealment, false representation or fraudulent manipulation
• Examples of Deceptive Sales Acts and Practices

  • Representing a product has sponsorship, approval, performance, characteristics, ingredients, accessories, uses, or benefits it does not have
  • Representing a product is of a particular standard, quality, grade, style, or model when it is not
  • Representing a product is new, original or unused when it is in a deteriorated, altered, reconditioned, reclaimed or second-hand state
  • Representing a product or service is available for a reason different from the fact
  • Representing a product or service has been supplied in accordance with a previous representation when it has not
  • Representing a product or service can be supplied in a greater quantity than the supplier intends
  • Representing a service or repair is needed when it is not
  • Representing a specific price advantage exists when it does not
  • Falsely indicating the sales act involves or does not involve a warranty, disclaimer of warranties, warranty terms or other rights
  • Falsely representing the seller or supplier has a sponsorship, approval, or affiliation they do not have
• Applicable Law on Warranties

  The provisions of the Civil Code on conditions and warranties shall govern all contracts of sale with conditions and warranties
• Additional Provisions on Warranty

  1. Seller or manufacturer who gives an express warranty must: set forth the terms in clear and understandable language and identify themselves 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 and at whose expense

  5. State what the consumer must do to avail of the warranty rights

  6. Stipulate the period within which the warrantor will perform any obligation under the warranty
• Warranty


  Ang pagkakaalam kung kanino inaextend ang warranty; Kung kaninong party magagamit ang warranty
• Covered products or parts


  Anong mga produkto at parts lamang ang covered ng warranty
• Warrantor's obligations


  Anong gagawin ni warrantor in case of defect, malfunction or failure; Sino ang mag-carry ng expenses
• Consumer's obligations


  Anong dapat gawin ni consumer para ma-avail ang warranty
• Warranty period


  Hanggang kailan ang warranty at kung kailan magiging possible time na magawa ni warrantor ang obligation niya under warranty
• Express warranty is operative from the moment of sale
• Sales report


  1. Date of purchase

  2. Model of product bought

  3. Serial number

  4. Name and address of buyer
• Failure of distributor to make or send sales report

  Relieves manufacturer of liability under warranty; Distributor becomes personally liable under warranty
• Retailer's liability


  Retailer is subsidiarily liable under the warranty in case of failure of both manufacturer and distributor to honor the warranty
• Enforcement of warranty


  Purchaser needs only to present warranty card or official receipt to immediate seller to enforce warranty
• Distributors and retailers must keep record of all purchases covered by warranty
• Contrary stipulations to the warranty provisions are null and void
• Full warranty


  Written warranty that meets the minimum requirements
• Limited warranty


  Written warranty that does not meet the minimum requirements
• Minimum standards for warranties


  Warrantor must remedy the product within a reasonable time and without charge in case of defect, malfunction or failure; Allow consumer to elect refund or replacement if defect/malfunction persists
• Warrantor is not required to perform duties if defect/malfunction was caused by unreasonable use
• Duration of warranty


  Seller and consumer may stipulate the period; Implied warranty on merchantability has equal duration as express warranty; Other implied warranties must endure at least 60 days but not more than 1 year
• Breach of express warranty

  Consumer may elect to have the goods repaired or its purchase price refunded; Repair must conform to express warranty within 30 days; Refund amount deducts for prior use
• Breach of implied warranty


  Consumer may retain the goods and recover damages, or reject the goods, cancel the contract and recover purchase price paid
• Labeling and packaging requirements apply to those engaged in labeling or packaging, not wholesale/retail distributors unless they package/label or prescribe/specify the manner of packaging/labeling
• Minimum labeling requirements for consumer products

  • Correct and registered trade/brand name
  • Registered trademark
  • Registered business name
  • Address of manufacturer/importer/repacker in PH
  • General make or active ingredients
  • Net quantity of contents
  • Country of manufacture if imported
  • If manufactured/refilled/repacked under license
• Additional labeling requirements that may be required

  • If flammable/inflammable
  • Directions for use
  • Warning of toxicity
  • Wattage, voltage or amperes
  • Manufacturing process used
• Ingredients required on product labels

  • 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
  • Country of manufacture, if imported
  • If a consumer product is manufactured, refilled or repacked under license from a principal, the label shall so state the fact
• Additional information that may be required on product labels

  • Whether it is flammable or inflammable
  • Directions for use, if necessary
  • Warning of toxicity
  • Wattage, voltage or amperes
  • Process of manufacture used if necessary