Consumer Production Act

• What is the title of the law that governs consumer protection in the Philippines?

  Consumer Act of the Philippines (Republic Act No. 7394)
• What are the main duties of the State under Article 5 of the Consumer Act?

  • Develop safety and quality standards for consumer products
  • Assist consumers in evaluating product quality and safety
  • Protect the public from unreasonable risks associated with products
  • Conduct research on product quality improvement and safety
  • Ensure consistency of standardized products
• Which department is responsible for enforcing the provisions related to food, drugs, cosmetics, devices, and substances?

  The Department of Health
• What is the role of the Department of Agriculture under the Consumer Act?

  To enforce provisions related to products related to agriculture
• What is the responsibility of the Department of Trade and Industry under the Consumer Act?

  To enforce provisions related to other consumer products not specified by the other departments
• What can an interested person do if they believe a consumer product is injurious, unsafe, or dangerous?

  Petition the appropriate department for an amendment or revocation of a consumer product safety rule
• What actions must a department take if a consumer product is found to be substandard or materially defective?

  • Notify the manufacturer, distributor, or seller of the finding
  • Order them to notify the public of the defect
  • Require notice to each distributor or retailer of the product
  • Direct remedies to the injured person, including:
  • Repairing the defect
  • Replacing the product
  • Refunding the purchase price
  • Paying reasonable damages
• What is the purpose of the Philippine Standard Certification Mark?

  To certify that a product complies with relevant safety and quality standards
• Under what conditions can a consumer product be refused admission into the Philippines?

  If it fails to comply with safety standards, is injurious, unsafe, substandard, or has a material defect
• What happens to imported consumer products that are not admitted into the Philippines?

  • They must be exported or destroyed
  • The owner or consignee must pay for storage and destruction costs
  • If not paid, costs constitute a lien against future imports
• What must be indicated on consumer products intended for export?

  A stamp or label stating that the product is intended for export
• What is the role of the Department of Health regarding food, drugs, cosmetics, and devices?

  • Ensure safe and good quality of these products
  • Regulate their production, sale, distribution, and advertisement
  • Establish standards and quality measures
  • Adopt measures for safe supply and rational use
• What is the purpose of the rules and regulations promulgated by the Department under Article 22?

  To establish reasonable definitions and standards for food, drugs, cosmetics, or devices
• What does Article 48 state about consumer transactions?

  • The State promotes fair and honest relations among parties
  • Protects consumers against deceptive, unfair, and unconscionable sales acts or practices
• Which department enforces the provisions against deceptive sales acts or practices?

  The Department of Trade and Industry
• What constitutes a deceptive act or practice in consumer transactions?

  • Concealment or false representation by the seller
  • Inducing a consumer to enter a transaction based on misleading information
  • Examples include misrepresenting product characteristics, quality, or availability
• What must the Department do after due notice and hearing regarding deceptive sales acts?

  Promulgate regulations declaring deceptive sales acts or practices
• What defines an unfair or unconscionable sales act or practice?

  • Taking advantage of a consumer's vulnerability
  • Inducing a transaction that is grossly one-sided
  • Factors considered include price, benefit, and seller's awareness of consumer's inability to pay
• Who enforces the provisions regarding consumer product and service warranties?

  The Department of Trade and Industry
• What governs all contracts of sale with conditions and warranties?

  The provisions of the Civil Code on conditions and warranties
• What are the requirements for an express warranty according to Article 68?

  • Clear terms in understandable language
  • Identification of the warrantor and the party to whom the warranty is extended
  • Specification of covered products or parts
  • Description of actions in case of defects
  • Instructions for consumers to avail of warranty rights
  • Stipulation of the warranty period
• When does an express warranty become operative?

  From the moment of sale
• What must distributors of products covered by warranties do?

  Report all sales to the manufacturer
• What must a manufacturer do when giving an express warranty?

  Set forth the terms of warranty in clear and readily understandable language and clearly identify himself as the warrantor.
• Who must be identified in the express warranty?

  The party to whom the warranty is extended.
• What should the express warranty state regarding the products covered?

  It should state the products or parts covered.
• What must the warranty specify about defects or malfunctions?


  What the warrantor will do in the event of a defect, malfunction, or failure to conform to the written warranty and at whose expense.
• What must consumers do to avail of the rights under the warranty?

  The warranty must state what the consumer must do to avail of the rights which accrue to the warranty.
• What is the time frame for the warrantor to perform obligations after a defect is reported?

  The warranty must stipulate the period within which the warrantor will perform any obligation after notice of defect, malfunction, or failure to conform.
• When does an express warranty become operative?

  From the moment of sale.
• What must distributors do regarding sales reports?

  All sales made by distributors must be reported to the manufacturer within thirty days from the date of purchase.
• What happens if a distributor fails to send the sales report?

  Failure to send the report relieves the manufacturer of liability under the warranty, but the distributor becomes personally liable.
• What is the retailer's liability under the warranty?

  The retailer is subsidiarily liable under the warranty if both the manufacturer and distributor fail to honor it.
• How can warranty rights be enforced?

  By presentment of a claim with the warranty card or official receipt along with the product.
• What must distributors and retailers keep a record of?

  All purchases covered by a warranty or guarantee for a period corresponding to the lifetime of the product's warranties.
• What happens to covenants or stipulations contrary to the warranty provisions?

  They shall be without legal effect.
• How should a written warranty be designated?

  It should be clearly designated as either "Full warranty" or "Limited warranty".
• What are the minimum standards for a warranty?

  The warrantor must remedy the product within a reasonable time and without charge in case of a defect.
• What options does a consumer have if a product continues to malfunction?

  The consumer can elect to ask for a refund or replacement without charge after a reasonable number of attempts to remedy the defect.
• Under what condition is the warrantor not required to perform warranty duties?

  If the defect was caused by damage due to unreasonable use of the product.