Chapter 3

• International consumer law was proposed in 1962 in the United States of America but aims to provide a protection for consumers worldwide
• Consumer law


  Involve all the regulations and statutes that seeks to create a more equitable balance for buyers in the marketplace and prevent sellers from using dishonest tactics
• Consumer


  Any individual who purchase goods or services, which may be sold by manufacturers, wholesalers, or retailers
• UNCTAD (United Nations Conference for Trade and Development)


  • Designated by the UN as a special body to deal with the guidelines together with some other market-related regulations
  • Its main objectives are to provide a forum for intergovernmental deliberations, undertake research, policy analysis, and data collection to inform such deliberation, and provide technical assistance to developing countries
• International Consumer Protection Enforcement Network (ICPEN)


  • The sole international body dedicated to consumer law enforcement globally
  • Main aim is to encourage practical action against cross-border marketing misconduct by traders
  • Six long-term goals are to collect and exchange information, share best practices, undertake actions to combat cross-border breaches, facilitate effective cross-border remedies, detect and promote effective means for consumer law enforcement, and endorse and develop wider participation with other consumer protection enforcement bodies
• The Contemporary and Challenges of International Consumer Law

  • Increasing number of cross-border transactions
  • The rise of the Internet as the leading global marketplace and the entire technological developments which have disrupted the traditional consumer law
• Consumer Protection Law


  Provides a way for individuals to fight back against abusive business practices and holds sellers accountable for taking advantage of consumers
• Consumer protection


  The practice of safeguarding buyers of goods and services against unfair practices
• Product Liability Law


  A set of legal rules concerning who is responsible for defective or dangerous products, making it easier for injured consumers to recover damages
• Product Defects


  • Design defects (present from the beginning)
  • Manufacturing defects (occur during production)
  • Marketing defects (flaws in marketing like improper labeling)
• UN Guidelines on Consumer Protection

  • The most important global instrument for consumer protection, building trust for consumers and businesses
  • They are a model for countries to follow, not a requirement
  • Seven fundamental principles are protection of consumer health and safety, protection of consumer economic interests, provision of adequate information to consumers, consumer education, accessibility to effective means of redress for consumers, establishment of consumer associations, and consumer participation in decision-making and sustainable consumption
  • Identify best practices for business-to-consumer transactions and provide rules for applying and enforcing consumer rights
  • Focus is on establishing a global minimum level of consumer protection through cooperation
• Organizations for Consumer Protection Around the World

  • OECD (Organization for Economic Cooperation and Development)
  • UNCTAD (United Nations Conference on Trade and Development)
  • EU Consumer Protection Cooperation Network (CPC)
  • European Consumer Centre Network (ECC-Net)
  • APEC Electronic Commerce Steering Group (AECSG)
  • Iberoamerican Forum of Consumer Protection Agencies (FIAGC)
  • ASEAN Controlling Committee on Consumer Protection (ACCCP)
  • Unsolicited Communications Enforcement Network (UCENet)
  • Global Privacy Enforcement Network (GPEN)
  • Consumers International
• Consumer Act of the Philippines (RA 7394)


  • A law enacted on April 13, 1992 to protect consumers
  • Declaration of Basic Policy Objectives are to protect consumers from hazards to health and safety, protect consumers from deceptive, unfair, and unconscionable sales practices, provide information and education to consumers, provide consumers with rights and means to address issues, and involve consumers in shaping social and economic policies
  • Duties of the State are to develop and provide safety and quality standards for consumer products, assist consumers in evaluating product quality, safety, and performance, protect the public from risks associated with consumer products, research product quality improvement and product-related injuries, and ensure consistency of standardized products
  • Implementing Agencies are the Department of Health (DOH), Department of Agriculture (DA), and Department of Trade and Industry (DTI)
• Defenses to Product Liability Claims

  • Plaintiff cannot identify the supplier of the product
  • Plaintiff substantially altered the product after it left the manufacturer's control
• Focus Areas of the Division of Privacy and Identity Protection

  • Section 5 of the Federal Trade Act: Protects consumers from unfair, deceptive or risky business practices
  • The Fair Credit Reporting Act: Focuses on credit reporting businesses and ensures the accuracy and privacy of consumer information
  • The Gramm-Leach-Bliley Act (GLBA): Requires financial institutions to explain how they handle and protect consumer information
  • The Children's Online Privacy Protection Act (COPPA): Regulates the collection and use of information from children online
• Consumers Protection Bureau's Marketing and Advertising Practices Divisions

  Focus on preventing deceptive marketing and advertising practices
• Deceptive Advertising


  When marketing materials (including product packaging, labeling, brochures, advertisements, and digital media) mislead consumers with false claims or omit important information
• The Federal Trade Commission stipulates that environmental claims should be

  • Specific
  • Truthful
  • Backed up with evidence
• Consumer Rights


  • Right to Basic Needs
  • Right to Safety
  • Right to Information
  • Right to Choose
  • Right to Representation
  • Right to Redress
  • Right to Consumer Education
  • Right to Healthy Environment
• Environmental terms


  Words like "biodegradable", "recyclable", or "non-toxic"
• Consumer Rights


  • Right to Basic Needs
  • Right to Safety
  • Right to Information
  • Right to Choose
  • Right to Representation
  • Right to Redress
  • Right to Consumer Education
  • Right to a Healthy Environment
• Right to Basic Needs


  Guarantees survival necessities like food, clothing, shelter, healthcare, education, and sanitation. Consumers can expect affordable and good quality basic commodities.
• Right to Safety


  Protects consumers from hazardous goods and services. This includes manufacturers testing products and labels containing proper information, use instructions, and warnings.
• Right to Information


  Protects consumers from misleading advertising/labeling and ensures they get facts to make informed choices. Consumers can expect complete product information including use, ingredients, warnings, limitations, and expiry dates.
• Right to Choose


  Allows consumers to choose from a variety of products at competitive prices with quality assurance. This means a wide range of brands, sizes, and functionalities offered at different price points.
• Right to Representation


  Enables consumers to express their interests in government policies affecting them. Consumers can expect legislators to propose laws ensuring value for their money.
• Right to Redress


  Allows consumers to be compensated for misrepresented, poor quality goods, or unsatisfactory services. This means manufacturers/stores replacing defective goods under specific regulations.
• Right to Consumer Education


  Ensures consumers have the knowledge and skills to make informed choices. This includes information campaigns, seminars, and consumer education integrated into school curriculums.
• Right to a Healthy Environment


  Grants the right to live and work in a safe, non-threatening environment. Consumers can expect government action to address environmental degradation and constant monitoring to prevent pollution.
• Consumer Responsibilities


  • Critical Awareness
  • Action
  • Social Concern
  • Environmental Awareness
  • Solidarity