THE CONSUMER ACT OF THE PHILIPPINES (REPUBLIC ACT No. 7394) 4. has material defect.

CONSUMER PRODUCT QUALITY AND SAFETY b. Samples of consumer products being imported into the
Article 5. Declaration of Policy. – It shall be the duty of the State: Philippines in a quantity necessary for purposes of determining
a. to develop and provide safety and quality standards for consumer the existence of any of the above causes for non-admission may
products, including performance or use-oriented standards, be obtained by the concerned department or agency without
codes of practice and methods of tests; charge from the owner or consignee thereof. The owner or
b. to assist the consumer in evaluating the quality, including safety, consignee of the imported consumer product under examination
performance and comparative utility of consumer products; shall be afforded an opportunity to a hearing with respect to the
c. to protect the public against unreasonable risks of injury importation of such products into the Philippines. If it appears
associated with consumer products; from examination of such samples or otherwise that an imported
d. to undertake research on quality improvement of products and consumer product does not conform to the consumer product
investigation into causes and prevention of product related safety rule or is injurious, unsafe and dangerous, is substandard
deaths, illness and injuries; or has a material defect, such product shall be refused admission
e. to assure the public of the consistency of standardized products. unless the owner or the consignee thereof manifests under bond
that none of the above ground for non-admission exists or that
Article 6. Implementing Agencies. – The provisions of this Article and measures have been taken to cure them before they are sold,
its implementing rules and regulations shall be enforced by: distributed or offered for sale to the general public.
a. the Department of Health with respect to food, drugs, cosmetics, Any consumer product, the sale or use of which has been banned
devices and substances; or withdrawn in the country of manufacture, shall not be
b. the Department of Agriculture with respect to products related imported into the country.
to agriculture, and; c. If it appears that any consumer product which may not be
c. the Department of Trade and Industry with respect to other admitted pursuant to paragraph (a) of this Article can be so
consumer products not specified above. modified that it can already be accepted, the concerned
department may defer final examination as to the admission of
. such product for a period not exceeding ten (10) days, and in
accordance with such regulations as the department and the
Article 11. Amendment and Revocation of Declaration of the Commissioner of Customs shall jointly promulgate, such product
Injurious, Unsafe or Dangerous Character of a Consumer Product. – may be released from customs custody under bond for the
Any interested person may petition the appropriate department to purpose of permitting the owner or consignee an opportunity to
commence a proceeding for the issuance of an amendment or so modify such product.
revocation of a consumer product safety rule or an order declaring a d. All modifications taken by an owner or consignee for the purpose
consumer product injurious, dangerous and unsafe. of securing admission of an imported consumer product under
In case the department, upon petition by an interested party or its paragraph (c) shall be subject to the supervision of the concerned
own initiative and after due notice and hearing, determines a department. If the product cannot be so modified, or if the owner
consumer product to be substandard or materially defective, it shall or consignee is not proceeding to satisfactorily modify such
so notify the manufacturer, distributor or seller thereof of such product, it shall be refused admission and the department may
finding and order such manufacturer, distributor or seller to: direct redelivery of the product into customs custody, and to
a. give notice to the public of the defect or failure to comply with seize the product if not so redelivered.
the product safety standards; and e. Imported consumer products not admitted must be exported,
b. give notice to each distributor or retailer of such product. except that upon application, the Commissioner of Customs may
permit the destruction of the product if, within a reasonable time,
The department shall also direct the manufacturer, distributor or the owner or consignee thereof fails to export the same.
seller of such product to extend any or all of the following remedies f. All expenses in connection with the destruction provided for in
to the injured person: this Article, and all expenses in connection with the storage,
a. to bring such product into conformity with the requirements of cartage or labor with respect to any consumer product refused
the applicable consumer product standards or to repair the admission under this Article, shall be paid by the owner or
defect in order to conform with the same; consignee and, in default of such payment, shall constitute a lien
b. to replace the product with a like or equivalent product which against any future importation made by such owner or consignee.
complies with the applicable consumer product standards which
does not contain the defect; Article 16. Consumer Products for Export. – The preceding article on
c. to refund the purchase price of the product less a reasonable safety not apply to any consumer product if:
allowance for use; and a. it can be shown that such product is manufactured, sold or held
d. to pay the consumer reasonable damages as may be determined for sale for export from the Philippines, or that such product was
by the department. imported for export, unless such consumer product is in fact
The manufacturer, distributor or seller shall not charge a consumer distributed in commerce for use in the Philippines; and
who avails himself of the remedy as provided above of any expense b. such consumer product or the packaging thereof bears a stamp
and cost that may be incurred. or label stating that such consumer product is intended for export
and actually exported.
Article 14. Certification of Conformity to Consumer Product
Standards. – The concerned department shall aim at having FOOD, DRUGS, COSMETICS AND DEVICES
consumer product standards established for every consumer product Article 20. Declaration of Policy. – The State shall ensure safe and
so that consumer products shall be distributed in commerce only good quality of food, drugs, cosmetics and devices, and regulate their
after inspection and certification of its quality and safety standards production, sale, distribution and advertisement to protect the health
by the department. The manufacturer shall avail of the Philippine of the consumer.
Standard Certification Mark which the department shall grant after Article 21. Implementing Agency. – In the implementation of the
determining the product's compliance with the relevant standard in foregoing policy, the State, through the Department of Health,
accordance with the implementing rules and regulations. hereby referred as the Department, shall, in accordance with the
provisions of this Act:
Article 15. Imported Products. a. establish standards and quality measures for food, drugs, devices
a. Any consumer product offered for importation into the customs and cosmetics;
of the Philippine territory shall be refused admission if such b. adopt measures to ensure pure and safe supply of foods and
product: cosmetics, and safe, efficacious and good quality of drugs and
1. fails to comply with an applicable consumer product quality devices in the Country;
and safety standard or rule; c. adopt measures to ensure the rational use of drugs and devices,
2. is or has been determined to be injurious, unsafe and such as, but not limited to, banning, recalling or withdrawing from
dangerous; the market drugs and devices which are unregistered, unsafe,
3. is substandard; or inefficacious or of doubtful therapeutic value, the adoption of an

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 official National Drug Formulary, and the use of generic names in a. that the producer, manufacturer, distributor, supplier or seller
the labeling of drugs; took advantage of the inability of the consumer to reasonably
d. strengthen the Bureau of Food and Drugs. protect his interest because of his inability to understand the
language of an agreement, or similar factors;
Article 22. Rules and Regulations on Definitions and Standards. – b. that when the consumer transaction was entered into, the price
Whenever in the judgment of the Department such action will grossly exceeded the price at which similar products or services
promote honesty and fair dealing in the interest of consumers, it shall were readily obtainable in similar transaction by like consumers;
promulgate rules and regulations fixing and establishing a reasonable c. that when the consumer transaction was entered into, the
definition and standard of identity, a reasonable standard of quality consumer was unable to receive a substantial benefit from the
and/or reasonable standard of fill of containers for food, drugs, subject of the transaction;
cosmetics or devices. d. that when the consumer was entered into, the seller or supplier
was aware that there was no reasonable probability or payment
DECEPTIVE, UNFAIR AND UNCONSCIONABLE SALES ACTS OR of the obligation in full by the consumer; and
PRACTICES e. that the transaction that the seller or supplier induced the
Article 48. Declaration of Policy. – The State shall promote and consumer to enter into was excessively one-sided in favor of the
encourage fair, honest and equitable relations among parties in seller or supplier.
consumer transactions and protect the consumer against deceptive,
unfair and unconscionable sales acts or practices. CONSUMER PRODUCT AND SERVICE WARRANTIES
Article 66. Implementing Agency. – The Department of Trade and
Article 49. Implementing Agency. – The Department of Trade and Industry, shall strictly enforce the provision of this Chapter and its
Industry, hereby referred to as the Department, shall enforce the implementing rules and regulations.
provisions of this Chapter.
Article 67. Applicable Law on Warranties. – The provisions of the
REGULATION OF SALES ACTS AND PRACTICES Civil Code on conditions and warranties shall govern all contracts of
Article 50. Prohibition Against Deceptive Sales Acts or Practices. – A sale with conditions and warranties.
deceptive act or practice by a seller or supplier in connection with a
consumer transaction violates this Act whether it occurs before, Article 68. Additional Provisions on Warranties. – In addition to the
during or after the transaction. An act or practice shall be deemed Civil Code provisions on sale with warranties, the following provisions
deceptive whenever the producer, manufacturer, supplier or seller, shall govern the sale of consumer products with warranty:
through concealment, false representation of fraudulent a. Terms of express warranty. – Any seller or manufacturer who
manipulation, induces a consumer to enter into a sales or lease gives an express warranty shall:
transaction of any consumer product or service. 1. set forth the terms of warranty in clear and readily
Without limiting the scope of the above paragraph, the act or practice understandable language and clearly identify himself as the
of a seller or supplier is deceptive when it represents that: warrantor;
a. a consumer product or service has the sponsorship, approval, 2. identify the party to whom the warranty is extended;
performance, characteristics, ingredients, accessories, uses, or 3. state the products or parts covered;
benefits it does not have; 4. state what the warrantor will do in the event of a defect,
b. a consumer product or service is of a particular standard, quality, malfunction of failure to conform to the written warranty and
grade, style, or model when in fact it is not; at whose expense;
c. a consumer product is new, original or unused, when in fact, it is 5. state what the consumer must do to avail of the rights which
in a deteriorated, altered, reconditioned, reclaimed or second- accrue to the warranty; and
hand state; 6. stipulate the period within which, after notice of defect,
d. a consumer product or service is available to the consumer for a malfunction or failure to conform to the warranty, the
reason that is different from the fact; warrantor will perform any obligation under the warranty.
e. a consumer product or service has been supplied in accordance
with the previous representation when in fact it is not; b. Express warranty – operative from moment of sale. – All written
f. a consumer product or service can be supplied in a quantity warranties or guarantees issued by a manufacturer, producer, or
greater than the supplier intends; importer shall be operative from the moment of sale.
g. a service, or repair of a consumer product is needed when in fact 1. Sales Report. – All sales made by distributors of products
it is not; covered by this Article shall be reported to the manufacturer,
h. a specific price advantage of a consumer product exists when in producer, or importer of the product sold within thirty (30)
fact it does not; days from date of purchase, unless otherwise agreed upon.
i. the sales act or practice involves or does not involve a warranty, The report shall contain, among others, the date of purchase,
a disclaimer of warranties, particular warranty terms or other model of the product bought, its serial number, name and
rights, remedies or obligations if the indication is false; and address of the buyer. The report made in accordance with this
j. the seller or supplier has a sponsorship, approval, or affiliation he provision shall be equivalent to a warranty registration with
does not have. the manufacturer, producer, or importer. Such registration is
sufficient to hold the manufacturer, producer, or importer
Article 51. Deceptive Sales Act or Practices By Regulation. – The liable, in appropriate cases, under its warranty.
Department shall, after due notice and hearing, promulgate 2. Failure to make or send report. – Failure of the distributor to
regulations declaring as deceptive any sales act, practice or technique make the report or send them the form required by the
which is a misrepresentation of facts other than these enumerated in manufacturer, producer, or importer shall relieve the latter of
Article 50. its liability under the warranty: Provided, however, That the
distributor who failed to comply with its obligation to send
Article 52. Unfair or Unconscionable Sales Act or Practice. – An the sales reports shall be personally liable under the
unfair or unconscionable sales act or practice by a seller or supplier warranty. For this purpose, the manufacturer shall be
in connection with a consumer transaction violates this Chapter obligated to make good the warranty at the expense of the
whether it occurs before, during or after the consumer transaction. distributor.
An act or practice shall be deemed unfair or unconscionable 3. Retail. – The retailer shall be subsidiarily liable under the
whenever the producer, manufacturer, distributor, supplier or seller, warranty in case of failure of both the manufacturer and
by taking advantage of the consumer's physical or mental infirmity, distributor to honor the warranty. In such case, the retailer
ignorance, illiteracy, lack of time or the general conditions of the shall shoulder the expenses and costs necessary to honor the
environment or surroundings, induces the consumer to enter into a warranty. Nothing therein shall prevent the retailer from
sales or lease transaction grossly inimical to the interests of the proceeding against the distributor or manufacturer.
consumer or grossly one-sided in favor of the producer, 4. Enforcement of warranty or guarantee. – The warranty rights
manufacturer, distributor, supplier or seller. can be enforced by presentment of a claim. To this end, the
In determining whether an act or practice is unfair and purchaser needs only to present to the immediate seller
unconscionable, the following circumstances shall be considered: either the warranty card of the official receipt along with the

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 product to be serviced or returned to the immediate seller. that the consumer does not rely or that it is unreasonable for him
No other documentary requirement shall be demanded from to rely, on the seller's skill or judgment.
the purchaser. If the immediate seller is the manufacturer's
factory or showroom, the warranty shall immediately be Article 70. Professional Services. – The provision of this Act on
honored. If the product was purchased from a distributor, the warranty shall not apply to professional services of certified public
distributor shall likewise immediately honor the warranty. In accountants, architects, engineers, lawyers, veterinarians,
the case of a retailer other than the distributor, the former optometrists, pharmacists, nurses, nutritionists, dietitians, physical
shall take responsibility without cost to the buyer of therapists, salesmen, medical and dental practitioners and other
presenting the warranty claim to the distributor in the professionals engaged in their respective professional endeavors.
consumer's behalf.
5. Record of purchases. – Distributors and retailers covered by LABELING AND FAIR PACKAGING
this Article shall keep a record of all purchases covered by a Article 74. Declaration of Policy. – The State shall enforce
warranty or guarantee for such period of time corresponding compulsory labeling, and fair packaging to enable the consumer to
to the lifetime of the product's respective warranties or obtain accurate information as to the nature, quality and quantity of
guarantees. the contents of consumer products and to facilitate his comparison
6. Contrary stipulations – null and void. – All covenants, of the value of such products.
stipulations or agreements contrary to the provisions of this
Article shall be without legal effect. Article 75. Implementing Agency. – The Department of Trade and
Industry shall enforce the provisions of this Chapter and its
c. Designation of warranties. – A written warranty shall clearly and implementing rules and regulations: Provided, That with respect to
conspicuously designate such warranty as: food, drugs, cosmetics, devices and hazardous substances, it shall be
1. "Full warranty" if the written warranty meets the minimum enforced by the concerned department.
requirements set forth in paragraph (d); or
2. "Limited warranty" if the written warranty does not meet Article 76. Prohibited Acts on Labeling and Packaging. – It shall be
such minimum requirements. unlawful for any person, either as principal or agent, engaged in the
d. Minimum standards for warranties. – For the warrantor of a labeling or packaging of any consumer product, to display or
consumer product to meet the minimum standards for warranty, distribute or to cause to be displayed or distributed in commerce any
he shall: consumer product whose package or label does not conform to the
1. remedy such consumer product within a reasonable time and provisions of this Chapter.
without charge in case of a defect, malfunction or failure to The prohibition in this Chapter shall not apply to persons engaged in
conform to such written warranty; the business of wholesale or retail distributors of consumer products
2. permit the consumer to elect whether to ask for a refund or except to the extent that such persons:
replacement without charge of such product or part, as the a. are engaged in the packaging or labeling of such products;
case may be, where after reasonable number of attempts to b. prescribe or specify by any means the manner in which such
remedy the defect or malfunction, the product continues to products are packaged or labeled; or
have the defect or to malfunction. c. having knowledge, refuse to disclose the source of the mislabeled
The warrantor will not be required to perform the above or mispackaged products.
duties if he can show that the defect, malfunction or failure
to conform to a written warranty was caused by damage due Article 77. Minimum Labeling Requirements for Consumer
to unreasonable use thereof. Products. – All consumer products domestically sold whether
e. Duration of warranty. – The seller and the consumer may manufactured locally or imported shall indicate the following in their
stipulate the period within which the express warranty shall be respective labels of packaging:
enforceable. If the implied warranty on merchantability a. its correct and registered trade name or brand name;
accompanies an express warranty, both will be of equal duration. b. its duly registered trademark;
Any other implied warranty shall endure not less than sixty (60) c. its duly registered business name;
days nor more than one (1) year following the sale of new d. the address of the manufacturer, importer, repacker of the
consumer products. consumer product in the Philippines;
f. Breach of warranties. e. its general make or active ingredients;
1. In case of breach of express warranty, the consumer may f. the net quality of contents, in terms of weight, measure or
elect to have the goods repaired or its purchase price numerical count rounded of to at least the nearest tenths in the
refunded by the warrantor. In case the repair of the product metric system;
in whole or in part is elected, the warranty work must be g. country of manufacture, if imported; and
made to conform to the express warranty within thirty (30) h. if a consumer product is manufactured, refilled or repacked under
days by either the warrantor or his representative. The thirty- license from a principal, the label shall so state the fact.
day period, however, may be extended by conditions which
are beyond the control of the warrantor or his representative. The following may be required by the concerned department in
In case the refund of the purchase price is elected, the accordance with the rules and regulations they will promulgate under
amount directly attributable to the use of the consumer prior authority of this Act:
to the discovery of the non-conformity shall be deducted. a. whether it is flammable or inflammable;
2. In case of breach of implied warranty, the consumer may b. directions for use, if necessary;
retain in the goods and recover damages, or reject the goods, c. warning of toxicity;
cancel and contract and recover from the seller so much of d. wattage, voltage or amperes; or
the purchase price as has been paid, including damages. e. process of manufacture used if necessary.

Article 69. Warranties in Supply of Services. – Any word, statement or other information required by or under
a. In every contract for the supply of services to a consumer made authority of the preceding paragraph shall appear on the label or
by a seller in the course of a business, there is an implied warranty labeling with such conspicuousness as compared with other words,
that the service will be rendered with due care and skill and that statements, designs or devices therein, and in such terms as to render
any material supplied in connection with such services will be it likely to be read and understood by the ordinary individual under
reasonably fit for the purpose for which it is supplied. customary conditions of purchase or use.
b. Where a seller supplies consumer services in the course of a The above requirements shall form an integral part of the label
business and the consumer, expressly or by implication, makes without danger of being erased or detached under ordinary handling
known to the seller the particular purpose for which the services of the product.
are required, there is an implied warranty that the services
supplied under the contract and any material supplied in Article 78. Philippine Product Standard Mark. – The label may
connection therewith will be reasonably fit for that purpose or contain the Philippine Product Standard Mark if it is certified to have
are of such a nature or quality that they might reasonably be passed the consumer product standard prescribed by the concerned
expected to achieve that result, unless the circumstances show department.

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Article 79. Authority of the Concerned Department to Provide for
Additional Labeling and Packaging Requirements. – Whenever the
concerned department determines that regulations containing
requirements other than those prescribed in Article 77 hereof are
necessary to prevent the deception of the consumer or to facilitate
value comparisons as to any consumer product, it may issue such
rules and regulations to:
a. establish and define standards for characterization of the size of
a package enclosing any consumer product which may be used to
supplement the label statement of net quality, of contents of
packages containing such products but this clause shall not be
construed as authorizing any limitation on the size, shape, weight,
dimensions, or number of packages which may be used to enclose
any product;
b. regulate the placement upon any package containing any product
or upon any label affixed to such product of any printed matter
stating or representing by implication that such product is offered
for retail at a price lower than the ordinary and customary retail
price or that a price advantage is accorded to purchases thereof
by reason of the size of the package or the quantity of its
contents;
c. prevent the nonfunctional slack-fill of packages containing
consumer products.

For purposes of paragraph (c) of this Article, a package shall be

deemed to be nonfunctionally slack-filled if it is filled to substantially
less than its capacity for reasons other than (1) protection of the
contents of such package, (2) the requirements of machines used for
enclosing the contents in such package, or (3) inherent characteristics
of package materials or construction being used.

Article 81. Price Tag Requirement. – 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 82. Manner of Placing Price Tags. – Price tags, labels or

markings must be written clearly, indicating the price of the
consumer product per unit in pesos and centavos.

Article 83. Regulations for Price Tag Placement. – The concerned

department shall prescribe rules and regulations for the visible
placement of price tags for specific consumer products and services.
There shall be no erasures or alterations of any sort of price tags,
labels or markings.
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