LEGAL PHARM AND ETHICS

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— MIDTERM — cancellation of his naturalization certificate and its registration

in the civil register and immediate deportation after service of
sentence and payment of fine.
c)​ Any director, officer or agent of a corporation who shall
1.0 STANDARDS OF PHARMACY PRACTICE authorize, order or perform any of the acts or practices
constituting in whole or in part a violation of Article 18, and
who has knowledge or notice of noncompliance received by
the corporation from the concerned department, shall be
1.1 subject to penalties to which that corporation may be subject.
REPUBLIC ACT NO. 7394 In case the violation is committed by, or in the interest of a
“Consumer Act of the Philippines” foreign juridical person duly licensed to engage in business in
the Philippines, such license to engage in business in the
Philippines shall immediately be revoked.
Republic of the Philippines
Congress of the Philippines CHAPTER II
Metro Manila FOOD, DRUGS, COSMETICS AND DEVICES
Eighth Congress Article 20. Declaration of Policy. – The State shall ensure safe
and good quality of food, drugs, cosmetics and devices, and regulate
their production, sale, distribution and advertisement to protect the
REPUBLIC ACT NO. 7394 health of the consumer.

April 13, 1992 Article 21. Implementing Agency. – In the implementation of the
foregoing policy, the State, through the Department of Health, hereby
THE CONSUMER ACT OF THE PHILIPPINES referred as the Department, shall, in accordance with the provisions of
this Act:
a)​ establish standards and quality measures for food, drugs,
Be it enacted by the Senate and House of Representatives devices and cosmetics;
of the Philippines in Congress assembled: b)​ adopt measures to ensure pure and safe supply of foods and
cosmetics, and safe, efficacious and good quality of drugs and
devices in the Country;
c)​ adopt measures to ensure the rational use of drugs and
PROHIBITED ACTS AND PENALTIES devices, such as, but not limited to, banning, recalling or
Article 18. Prohibited Acts. – It shall be unlawful for any person to: withdrawing from the market drugs and devices which are
a)​ manufacture for sale, offer for sale, distribute in commerce, or unregistered, unsafe, inefficacious or of doubtful therapeutic
import into the Philippines any consumer product which is not value, the adoption of an official National Drug Formulary, and
in conformity with an applicable consumer product quality or the use of generic names in the labeling of drugs;
safety standard promulgated in this Act; d)​ strengthen the Bureau of Food and Drugs.
b)​ manufacture for sale, offer for sale, distribute in commerce, or
import into the Philippines any consumer product which has Article 22. Rules and Regulations on Definitions and
been declared as banned consumer product by a rule in this Standards. – Whenever in the judgment of the Department such action
Act;
will promote honesty and fair dealing in the interest of consumers, it shall
c)​ refuse access to or copying of pertinent records or fail or
promulgate rules and regulations fixing and establishing a reasonable
refuse to permit entry of or inspection by authorized officers or
definition and standard of identity, a reasonable standard of quality
employees of the department;
and/or reasonable standard of fill of containers for food, drugs,
d)​ fail to comply with an order issued under Article II relating to
cosmetics or devices.
notifications of substantial product hazards and to recall,
repair, replacement or refund of unsafe products;
e)​ fail to comply with the rule prohibiting stockpiling. Article 23. Adulterated Food. – A food shall be deemed to be
adulterated:
a)​ 1) if it bears or contains any poisonous or deleterious
Article 19. Penalties. – substance which may render it injurious to health; but in case
a)​ Any person who shall violate any provision of Article 18 shall the substance is not an added substance, such food shall not
upon conviction, be subject to a fine of not less than One be considered adulterated under this clause if the quantity of
thousand pesos (P1,000.00) but not more than Ten thousand such substance does not ordinarily render it injurious to health;
pesos (P10,000.00) or imprisonment of not less than two (2) 2) if it bears or contains any added poisonous or deleterious
months but not more than one (1) year, or both upon the substance other than one which is (i) a pesticide chemical in or
discretion of the court. If the offender is an alien, he shall be on a raw agricultural commodity, (ii) a food additive, (iii) a color
deported after service of sentence and payment of fine without additive, for which tolerances have been established and it
further deportation proceedings. conforms to such tolerances; 3) if it consists in whole or in part
b)​ In case the offender is a naturalized citizen, he shall, in addition of any filthy, putrid or decomposed substance, or if it is
to the penalty prescribed herein, suffer the penalty of otherwise unfit for food; 4) if it has been prepared, packed or

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held under unsanitary conditions whereby it may have become Article 25. Tolerance for Poisonous Ingredients in Food. –
contaminated with filth, or whereby, it may have been rendered Any poisonous or deleterious substance added to any food shall be
injurious to health; 5) if it is, in whole or part, the product of a deemed to be unsafe, except when such substance is required or can not
diseased animal or of an animal which has died other than by be avoided in its production or can not be avoided by good
slaughter; 6) if its container is composed, in whole or in part, of manufacturing practice. In such case, the Department shall promulgate
any poisonous or deleterious substance which may render the regulations limiting the quantity therein in such extent as he finds
contents injurious to health; or 7) if it has passed its expiry necessary for the protection of public health, and any quantity exceeding
date. the limits so fixed shall be deemed to be unsafe. In determining the
b)​ (1) If any valuable constituent has been, in whole or in part, quantity of such added substance to be tolerated in different articles of
omitted or abstracted therefrom and the same has not been food, the Department shall take into account the extent to which the use
substituted, by any healthful equivalent of such constituent; of such article is required or can not be avoided in the production or
2) if any substance, not a valuable constituent, has been added manufacture of such articles and the other ways in which the consumer
or substituted or in part therefor; may be affected by the same or other poisonous or deleterious
3) if damage or inferiority has been concealed in any manner; substance.
or
4) if any substance has been added thereto or packed
Article 26. Unsafe Food Additives, Exceptions for
therewith so as to increase its bulk or weight, reduce its quality
or strength, or make it appear better or of greater value than it Conformity with Regulation. – A food additive, with respect to any
is. particular use or intended use, shall be deemed unsafe unless:
c)​ if it is, or bears or contains a color additive which is unsafe a)​ it and its use or intended use conforms to the terms of an
under existing regulations: Provided, That the Department shall exemption for being solely intended for investigational use by
promulgate regulations providing for the listing of color qualified experts; or
additives which are harmless and suitable for use in food for b)​ it and its use or intended use is in conformity with a regulation
which tolerances have been established; issued by the Department prescribing the conditions under
d)​ if it is confectionary, and it bears or contains any alcohol or which such additives may be safely used.
non-nutritive article or substance except harmless coloring,
harmless flavoring, harmless resinous glass not in excess of Article 27. Petition for Regulation of Food Additive. – Any
four-tenths (4/10) of one per centum (1%) natural gum and person may, with respect to any intended use of a food additive, file with
pectin: Provided, That this clause shall not apply to a safe the Department a petition proposing the issuance of a regulation
nonnutritive article or substance if, in the judgment of the prescribing the conditions under which such additives may be safely
Department as provided by regulations, used. The Department shall (1) establish a regulation prescribing, with
(1) such article or substance is of practical functional value in respect to one or more proposed uses of the food additive involved, (i)
the manufacture, packaging or storage of such confectionery, the conditions under which a food additive may be safely used including,
(2) if the use of the substance does not promote deception of but not limited to, specifications as to the particular food, classes of
the consumer or otherwise results in adulteration or food, in which such additive may be used, (ii) the maximum quantity
mislabeling in violation of any provision of this Act, and which may be used, or permitted to remain in or on such food; (iii) the
(3) would not render the product injurious or hazardous to manner in which such additive may be added to or used in or on such
health: Provided, further, That this paragraph shall not apply to food, and (iv) any directions or other labeling or packaging requirement
any confectionery by reason of its containing less than for such additive deemed necessary to assure the safety of such use,
one-half (½) of one per centum (1%) by volume of alcohol, and shall notify the petitioner of such order and the reasons for such
derived solely from the use of flavoring extracts, or to any action; or (2) deny the petition and notify the petitioner of and the
chewing gum by reason of its containing harmless reasons for such action.
non-nutritive masticatory substance: Provided, finally, That the The Department may, at any time upon his own initiative, issue a
Department may, for the purpose of avoiding or resolving regulation prescribing, with respect to any particular food additive, the
uncertainty as to the application of this clause, promulgate conditions under which such additive may be safely used and the
regulations allowing or prohibiting the use of particular reasons thereof, and cause the publication of the same.
non-nutritive substances;
e)​ if it is oleomargarine, margarine or butter and any of the raw Article 28. Effectivity of Regulations. – The regulations
materials used therein consists in whole or in part of any filthy, promulgated under the preceding articles shall take effect fifteen (15)
putrid or decomposed substance, or such oleomargarine, days after its publication in a newspaper of general circulation but the
margarine or butter is otherwise unfit for food; Department may stay such effectivity if, after issuance of such order, a
f)​ if it has not been prepared in accordance with current hearing is sought by any person adversely affected by such order.
acceptable manufacturing practice established by the
Department through regulations.
DRUGS AND DEVICES
Article 24. Regulation of Unprocessed Food. – The provincial, Article 29. Adulterated Drugs and Devices. – A drug or device
shall be deemed to be adulterated:
municipal and city governments shall regulate the preparation and sale
a)​ 1) if it contains in whole or in part of any filthy, putrid, or
of meat, fresh fruits, poultry, milk, fish, vegetables and other foodstuff for
decomposed substance which may affect its safety, efficacy or
public consumption, pursuant to the Local Government Code.
good quality; or (2) if it has been manufactured, prepared or
held under unsanitary conditions whereby it may have been
contaminated with dirt or filth or whereby it may have been

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rendered injurious to health; or (3) if its container is composed, act of dispensing a drug contrary to the provisions of this
in whole or in part, of any poisonous or deleterious substance paragraph shall be deemed to be an act which results in the
which may render the contents injurious to health; or (4) if it drug being mislabeled while held for sale.
bears or contains any color other than a permissible one as 2) Any drug dispensed by filling or refilling a written
determined by the Department, taking into consideration prescription of a practitioner licensed by law to administer
standards of safety, efficacy or good quality. such drug shall be exempt from the requirements of Article 89,
b)​ If it purports to be or is represented as a drug, the name of except paragraphs (a), (h), (2) and (3), and the packaging
which is recognized in an official compendium, and its strength requirements of paragraphs (f) and (g), if the drug bears a label
differs from, or its safety, efficacy, quality or purity falls below containing the name and address of the dispenser, the serial
the standards set forth in such compendium, except that number and the date of the prescription or its filling, the name
whenever tests or methods of assay as prescribed are, in the of the prescriber and, if stated in the prescription the name of
judgment of the Department, insufficient for the making of the patient and the directions for use and cautionary
such determination, the Department shall promulgate statements, if any, container in such prescription.
regulations prescribing appropriate tests or methods of safety, 3) The Department may, by regulation, remove drugs subject to
efficacy, quality or purity shall be made. No drug defined in an Article 89 (d) and Article 31 from the requirements of
official compendium shall be deemed to be adulterated under sub-article (b) (1) of this Article, when such requirements are
this paragraph because it differs from the standards of not necessary for the protection of the public health.
strength, safety, efficacy, quality or purity therefor set forth in 4) A drug which is subject to sub-article (b) (1) of this Article
such compendium, if its difference in strength, safety, efficacy, shall be deemed to be mislabeled if any time prior to
quality or purity from such standards is plainly stated in its dispensing, its label fails to bear the statement "Caution:
label and approved for registration as such. Should not be dispensed without prescription." A drug to which
c)​ If it is not subject to the provisions of paragraph (b) and its sub-article (b) (1) of this Article does not apply shall de
strength differs from, or its efficacy, quality or purity falls deemed to be mislabeled it at any time prior to dispensing, its
below, that which it purports or is represented to possess. label bears the caution statement quoted in the preceding
d)​ If a drug or device and any substance has been mixed or sentence.
packed therewith, or any substance has been substituted
wholly or in part thereof, so as to reduce its safety, efficacy, Article 31. Licensing and Registration. –
quality, strength or purity. a)​ No person shall manufacture, sell, offer for sale, import, export,
e)​ If the methods used in, or the facilities or controls used for its distribute or transfer any drug or device, unless an application
manufacture or holding do not conform to or are not operated filed pursuant to sub-article (b) hereof is effective with respect
or administered in conformity with current good manufacturing to such drug or device.
practice to assure that such drug meets the requirements of b)​ Any person may file with the Department, through the
this Act as to safety, quality and efficacy, and has the identity Department, an application under oath with respect to any drug
and strength, and meets the quality and purity characteristics or device subject to the provisions of sub-article (a) hereof.
which it purports or is represented to possess. Such persons shall submit to the Department: (1) full reports
of investigations which have been made to show whether or
Article 30. Exemption in Case of Drugs and Devices. – not such drug or device is safe, efficacious and of good quality
a)​ The Department is hereby directed to promulgate regulations for use based on clinical studies conducted in the Philippines;
exempting from any labeling or packaging requirement of this (2) a full list of the articles used as components of such drug
Act drugs and devices which are, in accordance with the or device; (3) a full statement of the composition of such drug
practice of the trade, to be processed, labeled or repacked in or device; (4) a full description of the methods used in and the
substantial quantities at establishments other than those facilities and controls used for the manufacture of such drug
where originally processes or packed, on conditions that such or device; (5) such samples of such drug or device and of the
drugs and devices are not adulterated or mislabeled under the articles used as components thereof as the Department may
provisions of this Act upon removal from such processing, require; (6) specimens of the labeling proposed to be used for
labeling or repacking establishment. such drug or device; and (7) such other requirements as may
b)​ 1) Drugs intended for use by man which: be prescribed by regulations to ensure safety, efficacy and
(i)are habit-forming; good quality of such drug and device.
(ii) because of their toxicity or other potentiality for harmful c)​ Within one hundred eighty (180) days after the filing of an
effect, or method of their use is not safe for use except under application under this sub-article, or such additional period as
the supervision of practitioner licensed by law to administer may be agreed upon by the Department and the applicant, the
such drug; Department shall either (1) approve the application if he then
(iii) are new drugs whose applications are limited to finds that none of the grounds for denying approval specified
investigational use; shall be dispensed only (a) upon written in sub-article (d) applies, or (2) give the applicant notice of an
prescription of a practitioner licensed by law to administer opportunity for a hearing before the Department under
such drug, or (b) upon an oral prescription of such practitioner sub-article (d) on the question whether such application is
which is reduced promptly to writing and filed by the approvable.
pharmacist, or (c) by refilling any such written or oral d)​ If the Department finds, after due notice to the applicant and
prescription if such refilling is authorized by the prescriber giving him an opportunity for a hearing, that (1) the reports of
either in the original prescription or by oral order which is the investigations which are required to be submitted to the
reduced promptly to writing and filed by the pharmacist. The Department pursuant to sub-article (b) hereof, do not include

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adequate tests by all methods reasonably applicable to show quantity/quantities to be imported, manufactured and held in stock at
whether or not such drug or device is safe, efficacious and of any given time by an authorized importer, manufacturer or distributor of
good quality for use under the conditions prescribed, dangerous drugs shall be under the jurisdiction and authority of the
recommended or suggested in the proposed labeling thereof; Dangerous Drugs Board as provided for by existing laws and regulations.
(2) the results of such test show that drug or device is unsafe,
inefficacious or of doubtful therapeutic value for use under Article 33. Banned or Restricted Drugs. – Banned or severely
such conditions or do not show that such drug or device is restricted drugs for health and safety reasons in their country of origin
safe, methods used in, and the facilities and controls used for shall be banned and confiscated or its uses severely restricted whichever
the manufacture of such drug or device are inadequate to is appropriate, by the Department. The Department shall monitor the
preserve its identity, strength, quality and purity; or (4) upon the presence in the market of such drugs and cause the maintenance and
basis of the information submitted to him as part of the regular publications of an updated consolidated list thereof.
application, or upon the basis of any other information before
him with respect to such drug or device, he has insufficient
CERTIFICATION OF DRUGS CONTAINING ANTIBIOTICS
information to determine whether such drug or device is safe,
efficacious or of good equality for use under such conditions; Article 34. Certification of Certain Drugs. –
or (5) evaluated on the basis of the information submitted to a)​ The Department shall, by regulations, provide for the
him as part of the application, and any other information certification of batches of drugs composed wholly or partially
before him with respect to such drug or device, there is a lack of any kind of antibiotic. A batch of such drug shall be certified
of substantial evidence that the drug or device will have the if such drug has such characteristics of identity, strength,
effect it purports or is represented to have under the quality and purity, as the Department prescribes in such
conditions of use prescribed, recommended or suggested in regulations as necessary to insure adequately safety and
the proposed labeling thereof; or (6) based on a fair evaluation efficacy of use and good quality, but shall not otherwise be
of all material facts, such labeling is false or misleading in any certified. Prior to the effective date of such regulations the
way; he shall issue an order disapproving the application. Department, in lieu of certification, shall issue a release for any
e)​ The effectiveness of an application with respect to any drug or batch which, in his judgment, may be released without risk as
device shall, after due notice and opportunity for hearing to the to the safety and efficacy of its use. Such release shall
applicant, by order of the Department be suspended if it finds prescribe the date of its expiration and other conditions under
(1) that clinical experience, tests by new methods, or tests by which it shall cease to be effective as to such batch and as to
methods not deemed reasonably applicable when such portions thereof. For purposes of this Article and of Article 89
application became effective show that such drug or device is (j), the term "antibiotic drug" means any drug intended for use
unsafe or ineffective for use under the conditions of use upon by man containing any quantity of any chemical substance
the basis of which the application became effective, or (2) that which is produced by a micro-organism and which has the
the application contains any untrue statement of a material capacity to inhibit or destroy micro-organisms in dilute solution
fact. The order shall state the findings upon which it is based. (including the chemically synthesized equivalent of any such
f)​ The Department shall promulgate regulations for exempting substance).
from the operation of this Article drugs and devices intended b)​ Whenever in the judgment of the Department, the requirements
solely for investigational used by experts qualified by scientific of this Article and of Article 89 (j) with respect to any drug or
training and experience to investigate the safety and class of drugs are not necessary to insure safety and efficacy
effectiveness of drugs and devices. of use and good quality, the Department shall promulgate
g)​ No person shall manufacture, sell, offer for sale, import, export, regulations exempting such drug or class of drugs from such
distribute or transfer any drug or device without first securing a requirements.
license to operate from the Department after due compliance c)​ The Department shall promulgate regulations exempting from
with technical requirements in accordance with the rules and any requirement of this Article and of Article 89 (j), (l) drugs
regulations promulgated by the Department pursuant to this which are to be stored, processed, labeled, or repacked at
Act. establishments other than those where manufactured, or
h)​ No drug or device shall be manufactured, sold, offered for sale, condition that such drugs comply with all such requirements
imported, exported, distributed or transferred, unless upon removal from such establishments; (2) drugs which
registered by the manufacturer, imported or distributor thereof, conform to applicable standards of identity, strength, quality,
in accordance with rules and regulations promulgated by the and purity prescribed by these regulations and are intended for
Department pursuant to this Act. The provisions of Article 31 use in manufacturing other drugs; and (3) drugs which are
(b), (d) and (e), to the extent applicable, shall govern the intended for investigational use by experts qualified by
registration of such drugs and devices. scientific training and experience to investigate the safety and
i)​ The Department shall promulgate a schedule of fees for the efficacy of drugs.
issuance of the certificate of product registration and license
to operate provided for under this Article. COSMETICS
Article 35. Adulterated cosmetics. – A cosmetic shall be deemed
Article 32. Dangerous Drugs. – The importation, distribution, to be adulterated:
manufacture, production, compounding, prescription, dispensing and a)​ if it bears or contains any poisonous or deleterious substance
sale of, and other lawful acts in connection with, dangerous drugs of which may render it injurious to users under the condition of
such kind and quantity as may be deemed necessary according to the use prescribed in the labeling thereof, or under the condition of
medical and research needs of the country and the determination of the use as are customary or usual: Provided, That this provision

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shall not apply to color additive hair dye, the label of which cosmetics, drugs or devices to manufacturers, processors or packers of
bears the following legend conspicuously displayed thereon: the same in such locality to which shall be attached such conditions
"Caution: this product contains ingredients which may cause governing the manufacture, processing or packing of such consumer
skin irritation on certain individuals and a preliminary test products for such temporary period of time as may be necessary to
according to accompanying directions should first be made. protect public health; and after the effective date of such regulations, and
This product must not be used for dyeing the eyelashes or during such temporary period, no person shall, offer for sale or transfer
eyebrows; to do so may cause blindness" and labeling of which any such food, cosmetics, drugs or devices unless such manufacturer,
bears adequate directions for such preliminary testing. For processor or packer holds such permit.
purposes of this paragraph (e) the term "hair dye" shall not
include eyelash dyes or eyebrow dyes. Article 38. Publicity and Publication. –
b)​ if it consists in whole or in part of any filthy, putrid, or a)​ The Department my cause to be disseminated information
decomposed substance. regarding food, drugs, devices, or cosmetics in situations
c)​ if it has been prepared, packed or held under unsanitary involving, in the opinion of the Department, imminent danger to
conditions whereby it may have become contaminated with health, or gross deception to the consumer. Nothing in this
filth, or whereby it may have been rendered injurious to health. Article shall be construed to prohibit the Department from
d)​ if its container is composed, in whole or in part, of any collecting, reporting, and illustrating the results of its
poisonous or deleterious substance which may render the investigations.
contents injurious to health. b)​ The Department shall publish a Drug Reference Manual and
e)​ if it is not a hair dye, and it bears or contains color additive Drug Bulletin to serve as reference by manufacturers,
other than which is permissible. distributors, physicians, consumers and such other groups as
f)​ if any of its substances has been (1) mixed or packed may be deemed necessary. The Department is hereby
therewith so as to reduce its quality or strength or (2) authorized to sell the Drug Reference Manual at cost.
substituted wholly or in parts therefor.
Article 39. Administrative Sanctions. – In addition to the
Article 36. Factory Inspection. – administrative sanctions provided for under Letter of Instructions No.
a)​ For purposes of enforcement of this Article, officers or 1223, the Department is hereby authorized to impose, after notice and
employees duly designated by the Department, upon hearing, administrative fines of not less than One thousand pesos
presenting appropriate credentials to the owner, operator, or (P1,000.00) nor more than Five thousand pesos (P5,000.00) for any
agent in charge, are authorized (1) to enter, at reasonable violation of this Act.
hours, any factory, warehouse or establishment in which food,
drugs, devices or cosmetics are manufactured, processed,
PROHIBITED ACTS AND PENALTIES
packed or held, for introduction into domestic commerce or
are held after such introduction, or to enter any vehicle being Article 40. Prohibited Acts. – The following acts and the causing
used to transport or hold such food, drugs, devices, or thereof are hereby prohibited:
cosmetics in domestic commerce; and (2) to inspect, in a a)​ the manufacture, importation, exportation, sale, offering for
reasonable manner, such factory, warehouse, or establishment sale, distribution or transfer of any food, drug, device or
or vehicle and all pertinent equipment, finished and unfinished cosmetic that is adulterated or mislabeled;
materials, containers and labeling therein. b)​ the adulteration or misbranding of any food, drug, device or
b)​ If the officer or employee making any such inspection of a cosmetic;
factory, warehouse or other establishment has obtained any c)​ the refusal to permit entry or inspection as authorized by
sample in the course of the inspection, upon completion of the Article 36 to allow samples to be collected;
inspection and prior to leaving the premises he shall give to the d)​ the giving of a guaranty or undertaking referred to in Article 41
owner, operator, or agent in charge a receipt describing the (b) hereof which guaranty or undertaking is false, except by a
samples obtained. person who relied upon a guaranty or undertaking to the same
c)​ Whenever in the course of any such inspection of a factory or effect signed by, and containing the name and address of, the
other establishment where food is manufactured, processed or person residing in the Philippines from whom he received in
packed, the officer or employee making the inspection obtains good faith the food, drug, device, or cosmetic or the giving of a
a sample of any such food, and an analysis made of such guaranty or undertaking referred to in Article 41 (b) which
sample for the purpose of ascertaining whether such food guaranty or undertaking is false;
consists in whole or in part of any filthy, putrid or decomposed e)​ forging, counterfeiting, simulating, or falsely representing or
substance, or is otherwise unfit for food, a copy of the results without proper authority using any mark, stamp, tag, label, or
of such analysis shall be furnished promptly to the owner, other identification device authorized or required by regulations
operator or agent in charge. promulgated under the provisions of this Act;
f)​ the using by any person to his own advantage, or revealing,
other than to the Department or to the courts when relevant in
Article 37. Provisional Permits. – Whenever the Department finds,
any judicial proceeding under this Act, any information
after investigation, that the sale or distribution in commerce of any class
concerning any method or process which as a trade secret is
of food, cosmetics, drugs or devices, may be injurious to health, and that
entitled to protection;
such injurious nature cannot be adequately determined after such
g)​ the alteration, mutilation, destruction, obliteration, or removal
articles have entered into domestic commerce, it shall promulgate
of the whole or any part of the labeling of, or the doing of any
regulations providing for the issuance, suspension and revocation of
other act with respect to a food, drug, device, or cosmetic, if
provisional permits, offer for sale or transfer of such classes of food,

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such act is done while such product is held for sale (whether or than food, drugs, cosmetics and devices that are hazardous to his health
not the first sale) and results in such product being adulterated and safety.
or mislabeled;
h)​ the use, on the labeling of any drug or in any advertising Article 43. Implementing Agency. – The Department of Health,
relating to such drug, of any representation or suggestion that hereby referred to as the Department, shall enforce the provisions of this
an application with respect to such drug is effective under Chapter.
Article 31 hereof, or that such drug complies with the
provisions of such articles;
Article 44. Regulations Declaring Hazardous Substances
i)​ the use, in labeling, advertising or other sales promotion, of any
reference to any report or analysis furnished in compliance and Establishing Variations and Exemptions. – The
with Section 19 of Executive Order 175, series of 1987; Department shall promulgate the rules and regulations governing the
j)​ the manufacture, importation, exportation, sale, offering for implementation of this Article.
sale, distribution, or transfer of any drug or device which is not To resolve uncertainty as to the coverage of this Article, the Department
registered with the Department pursuant to this Act; may, by regulations, declare as hazardous any substance of mixture of
k)​ the manufacture, importation, exportation, sale, offering for substances which he finds meets the requirements of paragraph (ak),
sale, distribution, or transfer of any drug or device by any clause (1) (i) of Article 4.
person without the license from the Department required in If the Department finds that for good and sufficient reasons, full
this Act; compliance with the labeling requirements otherwise applicable under
l)​ the sale or offering for sale of any drug or device beyond its this Chapter is impracticable or is not necessary for the adequate
expiration or expiry date; protection of public health and safety, it shall promulgate regulations
m)​ the release for sale or distribution of a batch of drugs without exempting such substances from these requirements to the extent he
batch certification when required under Article 34 hereof. deems consistent with the objective of adequately safeguarding public
health and safety, and any hazardous substance which does not bear a
label in accordance with such regulations shall be deemed to be a
Article 41. Penalties. –
mislabeled hazardous substance.
a)​ Any person who violates any of the provisions of Article 40
hereof shall, upon conviction, be subject to imprisonment of
not less than one (1) year but not more than five (5) years, or a Article 45. Imports: Regulations on Imported Hazardous
fine of not less than Five thousand pesos (P5,000.00) but not Substances. –
more than Ten thousand pesos (P10,000.00), or both such a)​ The Commissioner of Customs shall deliver to the Department,
imprisonment and fine, in the discretion of the Court. upon its request, samples of hazardous substances being
Should the offense be committed by a juridical person, the imported or offered for import to the Philippines, giving notice
Chairman of the Board of Directors, the President, General thereof to the owner or consignee who may appear before the
Manager, or the partners and/or the persons directly Department and exercise the right to make testimony. If it
responsible therefor shall be penalized. appears from the examination of such samples that such
b)​ No person shall be subject to the penalties of sub-article (a) of hazardous substance is a mislabeled hazardous substance or
this Article for (1) having sold, offered for sale or transferred banned hazardous substance, then such hazardous substance
any product and delivered it, if such delivery was made in good shall be refused admission except as may be provided in an
faith, unless he refuses to furnish on request of the order issued by the Department authorizing delivery of the
Department, the name and address of the person from whom refused products or substance under the requirements
he purchased or received such product and copies of all imposed therein. The Commissioner of Customs shall cause
documents, if any there be, pertaining to the delivery of the the destruction of any hazardous substance refused admission
product to him; (2) having violated Article 40 (a) if he unless such is exported, under regulations issued by the
established a guaranty or undertaking signed by, and Commissioner within ninety (90) days from the date of notice
containing the name and address of, the person residing in the of such refusal or within such additional time as may be fixed
Philippines from whom he received in good faith the product, by him.
or (3) having violated Article 40 (a), where the violation exists b)​ Pending decision on the admissibility of a hazardous
because the product is adulterated by reason of containing a substance being imported or offered for import, the
color other than the permissible one under regulations Commissioner of Customs may authorize delivery of such
promulgated by the Department in this Act, if such person hazardous substance to the owner or consignee upon
establishes a guaranty or undertaking signed by, and execution by him of a good and sufficient bond providing for
containing the name and address, of the manufacturer of the the payment of such liquidated damages in the event of
color, to the effect that such color is permissible, under default. If it appears to the Department that the hazardous
applicable regulations promulgated by the Department in this substance can by relabeling or other action made to comply
Act. with the requirements of this Article final determination as to
the admission of such hazardous substance may be deferred
CHAPTER III and upon filing of a timely written application by the owner or
consignee and the execution by him of a bond as provided in
HAZARDOUS SUBSTANCE
the provision of this paragraph. The Department may, in
Article 42. Declaration of Policy. – The State shall adopt accordance with regulations, authorize the applicant to
measures designed to protect the consumer against substances other perform such relabeling or other action specified in such
authorization, including destruction or export of such rejected

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hazardous substance. All such relabeling or other action consumer transactions and protect the consumer against deceptive,
pursuant to such authorization shall be in accordance with unfair and unconscionable sales acts or practices.
regulations and shall be under the supervision of an officer or
employee of the Commission of Customs and the Department. Article 49. Implementing Agency. – The Department of Trade
and Industry, hereby referred to as the Department, shall enforce the
PROHIBITED ACTS AND PENALTIES provisions of this Chapter.
Article 46. Prohibited Acts. – It shall be unlawful for any person to:
a)​ introduce or deliver for introduction into commerce of any REGULATION OF SALES ACTS AND PRACTICES
mislabeled hazardous substance or banned hazardous Article 50. Prohibition Against Deceptive Sales Acts or
substance;
Practices. – A deceptive act or practice by a seller or supplier in
b)​ alter, mutilate, destroy, obliterate or remove the whole or any
connection with a consumer transaction violates this Act whether it
part of the label of a mislabeled hazardous substance, or
occurs before, during or after the transaction. An act or practice shall be
banned hazardous substance, if such act is done while the
deemed deceptive whenever the producer, manufacturer, supplier or
substance is in commerce or while the substance is held for
seller, through concealment, false representation of fraudulent
sale, whether or not it is the first sale;
manipulation, induces a consumer to enter into a sales or lease
c)​ receive in commerce any mislabeled hazardous substance or
transaction of any consumer product or service.
banned hazardous substance and the delivery or preferred
Without limiting the scope of the above paragraph, the act or practice of
delivery thereof at cost or otherwise;
a seller or supplier is deceptive when it represents that:
d)​ give the guaranty or undertaking referred to in paragraph (b) of
a)​ a consumer product or service has the sponsorship, approval,
Article 93 and paragraph (b) of Article 45 if such guaranty or
performance, characteristics, ingredients, accessories, uses, or
undertaking if false except by a person who relied upon a
benefits it does not have;
guaranty or undertaking which he received in good faith;
b)​ a consumer product or service is of a particular standard,
e)​ introduce or deliver for introduction into commerce or receive
quality, grade, style, or model when in fact it is not;
in commerce and subsequently deliver or preferred at cost or
c)​ a consumer product is new, original or unused, when in fact, it
otherwise, or a hazardous substance in a refused food, drug,
is in a deteriorated, altered, reconditioned, reclaimed or
cosmetic or device container or in a container which, though
second-hand state;
not a reused container, is identifiable as a food, drug, cosmetic
d)​ a consumer product or service is available to the consumer for
or device container by its labeling or by other identification.
a reason that is different from the fact;
The use of a used food, drug, cosmetic or device container for
e)​ a consumer product or service has been supplied in
a hazardous substance does not diminish the danger posed by
accordance with the previous representation when in fact it is
the hazardous substance involved, therefore, such substance
not;
shall be deemed a mislabeled hazardous substance.
f)​ a consumer product or service can be supplied in a quantity
greater than the supplier intends;
Article 47. Penalties, exception. – g)​ a service, or repair of a consumer product is needed when in
a)​ Any person who violates any of the provisions of Article 46 fact it is not;
shall, upon conviction, be subject to a fine of not less than One h)​ a specific price advantage of a consumer product exists when
thousand pesos (P1,000.00) or an imprisonment of not less in fact it does not;
than six (6) months but not more than five (5) years or both i)​ the sales act or practice involves or does not involve a
upon the discretion of the court. warranty, a disclaimer of warranties, particular warranty terms
b)​ No person shall be subject to the penalties of paragraph (a) of or other rights, remedies or obligations if the indication is false;
this Article for (1) having violated paragraph (c) of Article 46 and
unless he refuses to furnish, upon request by the Department j)​ the seller or supplier has a sponsorship, approval, or affiliation
or his representative, the name and address of the person from he does not have.
who he purchased such hazardous substances and (2) having
violated paragraph (a) of Article 46, if he establishes a
Article 51. Deceptive Sales Act or Practices By Regulation.
guaranty or undertaking signed by, and containing the name
– The Department shall, after due notice and hearing, promulgate
and address of, the person from whom he received in good
regulations declaring as deceptive any sales act, practice or technique
faith, the hazardous substance to the effect that the hazardous
which is a misrepresentation of facts other than these enumerated in
substance is not a mislabeled hazardous substance or banned
Article 50.
hazardous within the meaning of that term in this Act.

Article 52. Unfair or Unconscionable Sales Act or Practice.

– An unfair or unconscionable sales act or practice by a seller or supplier
TITLE III. – PROTECTION AGAINST DECEPTIVE, UNFAIR
in connection with a consumer transaction violates this Chapter whether
AND UNCONSCIONABLE SALES ACTS OR PRACTICES it occurs before, during or after the consumer transaction. An act or
CHAPTER I practice shall be deemed unfair or unconscionable whenever the
DECEPTIVE, UNFAIR AND UNCONSCIONABLE SALES producer, manufacturer, distributor, supplier or seller, by taking advantage
of the consumer's physical or mental infirmity, ignorance, illiteracy, lack
ACTS OR PRACTICES
of time or the general conditions of the environment or surroundings,
Article 48. Declaration of Policy. – The State shall promote and induces the consumer to enter into a sales or lease transaction grossly
encourage fair, honest and equitable relations among parties in

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inimical to the interests of the consumer or grossly one-sided in favor of or other benefit to said buyer in return for each and every transaction
the producer, manufacturer, distributor, supplier or seller. consummated by said seller with the persons referred by said buyer or
In determining whether an act or practice is unfair and unconscionable, for subsequent sales that said buyers has helped the seller enter into.
the following circumstances shall be considered:
a)​ that the producer, manufacturer, distributor, supplier or seller Article 60. Penalties. –
took advantage of the inability of the consumer to reasonably a)​ Any person who shall violate the provisions of Title III, Chapter
protect his interest because of his inability to understand the I, shall upon conviction, be subject to a fine of not less than
language of an agreement, or similar factors; Five Hundred Pesos (P500.00) but not more than Ten
b)​ that when the consumer transaction was entered into, the price Thousand Pesos (P10,000.00) or imprisonment of not less
grossly exceeded the price at which similar products or than five (5) months but not more than one (1) year or both,
services were readily obtainable in similar transaction by like upon the discretion of the court.
consumers; b)​ In addition to the penalty provided for in paragraph (1), the
c)​ that when the consumer transaction was entered into, the court may grant an injunction restraining the conduct
consumer was unable to receive a substantial benefit from the constituting the contravention of the provisions of Articles 50
subject of the transaction; and 51 and/or actual damages and such other orders as it
d)​ that when the consumer was entered into, the seller or supplier thinks fit to redress injury to the person caused by such
was aware that there was no reasonable probability or conduct.
payment of the obligation in full by the consumer; and
e)​ that the transaction that the seller or supplier induced the
CHAPTER II
consumer to enter into was excessively one-sided in favor of
the seller or supplier. REGULATION OF PRACTICES RELATIVE TO WEIGHTS
AND MEASURES GENERAL PROVISION
Article 53. Chain Distribution Plans or Pyramid Sales Article 61. Implementing Agency. – The provincial, city, or
Schemes. – Chain distribution plans or pyramid sales schemes shall municipal treasurers shall strictly enforce the provisions of this Chapter,
not be employed in the sale of consumer products and its implementing rules and regulations: Provided, That, with respect
to the use of the Metric System, it shall be enforced by the Department of
Trade and Industry.
Article 54. Home Solicitation Sales. – No business entity shall
conduct any home solicitation sale of any consumer product or service
without first obtaining a permit from the Department. Such permit may Article 62. Sealing and Testing of Instruments of Weights
be denied suspended or revoked upon cause as provided in the rules and and Measure. – All instruments for determining weights and
regulations promulgated by the Department, after due notice and measures in all consumer and consumer related transactions shall be
hearing. tested, calibrated and sealed every six (6) months by the official sealer
who shall be the provincial or city or municipal treasurer or his authorized
Article 55. Home Solicitation Sales; When Conducted. – representative upon payment of fees required under existing law:
Home solicitation sales may be conducted only between the hours of Provided, That all instruments of weights and measures shall
nine o'clock in the morning and seven o'clock in the evening of each continuously be inspected for compliance with the provisions of this
working day: Provided, That solicitation sales may be made at a time Chapter.
other than the prescribed hours where the person solicited has previously
agreed to the same. Article 63. Use of Metric System. – The system of weights and
measures to be used for all products, commodities, materials, utilities,
Article 56. Home Solicitation Sales; by Whom Conducted. – services and commercial transactions, in all contracts, deeds and other
Home solicitation sales shall only be conducted by a person who has the official and legal instruments and documents shall be the metric system,
proper identification and authority from his principal to make such in accordance with existing laws and their implementing rules and
solicitations. regulations.
The Department of Trade and Industry shall also adopt standard
measurement for garments, shoes and other similar consumer products.
Article 57. Receipts for Home Solicitation Sales. – Sales
generated from home solicitation sales shall be properly receipted as per
existing laws, rules and regulations on sale transactions PROHIBITED ACTS
Article 64. Fraudulent Practices Relative to Weights and
Article 58. Prohibited Representations. – A home solicitation Measures. – The following acts relating to weights and measures are
sale shall not represent that: prohibited:
a)​ the buyer has been specially selected; a)​ for any person other than the official sealer or his duly
b)​ a survey, test or research is being conducted; or authorized representative to place or attach an official tag,
c)​ the seller is making a special offer to a few persons only for a seal, sticker, mark, stamp, brand or other characteristic sign
limited period of time. used to indicate that such instrument of weight and measure
has officially been tested, calibrated, sealed or inspected;
Article 59. Referral Sales. – Referral selling plans shall not be used b)​ for any person to imitate any seal, sticker, mark, stamp, brand,
in the sale of consumer products unless the seller executes in favor of tag or other characteristic sign used to indicate that such
the buyer a written undertaking that will grant a specified compensation instrument of weight or measures has been officially tested,
calibrated, sealed or inspected;

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c)​ for any person other than the official sealer or his duly exceeding one (1) year, or both, upon the discretion of the
authorized representative to alter in any way the certificate or court.
receipt given by the official sealer or his duly authorized
representative as an acknowledgment that the instrument for CHAPTER III
determining weight or measure has been fully tested,
CONSUMER PRODUCT AND SERVICE WARRANTIES
calibrated, sealed or inspected;
d)​ for any person to make or knowingly sell or use any false or Article 66. Implementing Agency. – The Department of Trade
counterfeit seal, sticker, brand, stamp, tag, certificate or license and Industry, shall strictly enforce the provision of this Chapter and its
or any dye for printing or making the same or any implementing rules and regulations.
characteristic sign used to indicate that such instrument of
weight or measure has been officially tested, calibrated, sealed Article 67. Applicable Law on Warranties. – The provisions of
or inspected; the Civil Code on conditions and warranties shall govern all contracts of
e)​ for any person other than the official sealer or his duly sale with conditions and warranties.
authorized representative to alter the written or printed figures,
letters or symbols on any official seal, sticker, receipt, stamp, Article 68. Additional Provisions on Warranties. – In addition
tag, certificate or license used or issued; to the Civil Code provisions on sale with warranties, the following
f)​ for any person to use or reuse any restored, altered, expired, provisions shall govern the sale of consumer products with warranty:
damaged stamp, tag certificate or license for the purpose of a)​ Terms of express warranty. – Any seller or manufacturer who
making it appear that the instrument of weight of measure has gives an express warranty shall:
been tested, calibrated, sealed or inspected; 1)set forth the terms of warranty in clear and readily
g)​ for any person engaged in the buying and selling of consumer understandable language and clearly identify himself as the
products or of furnishing services the value of which is warrantor;
estimated by weight or measure to possess, use or maintain 2) identify the party to whom the warranty is extended;
with intention to use any scale, balance, weight or measure 3) state the products or parts covered;
that has not been sealed or if previously sealed, the license 4) state what the warrantor will do in the event of a defect,
therefor has expired and has not been renewed in due time; malfunction of failure to conform to the written warranty and at
h)​ for any person to fraudulently alter any scale, balance, weight, whose expense;
or measure after it is officially sealed; 5) state what the consumer must do to avail of the rights
i)​ for any person to knowingly use any false scale, balance, which accrue to the warranty; and
weight or measure, whether sealed or not; 6) stipulate the period within which, after notice of defect,
j)​ for any person to fraudulently give short weight or measure in malfunction or failure to conform to the warranty, the warrantor
the making of a scale; will perform any obligation under the warranty.
k)​ for any person, assuming to determine truly the weight or b)​ Express warranty – operative from moment of sale. – All
measure of any article bought or sold by weight or measure, to written warranties or guarantees issued by a manufacturer,
fraudulently misrepresent the weight or measure thereof; or producer, or importer shall be operative from the moment of
l)​ for any person to procure the commission of any such offense sale.
above mentioned by another. 1) Sales Report. – All sales made by distributors of products
Instruments officially sealed at some previous time which have remained covered by this Article shall be reported to the manufacturer,
unaltered and accurate and the seal or tag officially affixed thereto producer, or importer of the product sold within thirty (30) days
remains intact and in the same position and condition in which it was from date of purchase, unless otherwise agreed upon. The
placed by the official sealer or his duly authorized representative shall, if report shall contain, among others, the date of purchase,
presented for sealing, be sealed promptly on demand by the official model of the product bought, its serial number, name and
sealer or his authorized representative without penalty except a address of the buyer. The report made in accordance with this
surcharge fixed by law or regulation. provision shall be equivalent to a warranty registration with the
manufacturer, producer, or importer. Such registration is
Article 65. Penalties. – sufficient to hold the manufacturer, producer, or importer liable,
a)​ Any person who shall violate the provisions of paragraphs (a) in appropriate cases, under its warranty.
to (f) and paragraph (l) of Article 64 or its implementing rules 2) Failure to make or send report. – Failure of the distributor to
and regulations shall, upon conviction, be subject to a fine of make the report or send them the form required by the
not less than Two hundred pesos (P200.00) but not more than manufacturer, producer, or importer shall relieve the latter of its
One thousand pesos (P1,000.00) or by imprisonment of not liability under the warranty: Provided, however, That the
more than one (1) year or both upon the discretion of the court. distributor who failed to comply with its obligation to send the
b)​ Any person who shall violate the provisions of paragraph (g) of sales reports shall be personally liable under the warranty. For
Article 64 for the first time shall be subject to a fine of not less this purpose, the manufacturer shall be obligated to make
than Five hundred pesos (P500.00) or by imprisonment of not good the warranty at the expense of the distributor.
less than one (1) month but not more than five (5) years or 3) Retail. – The retailer shall be subsidiarily liable under the
both, upon the discretion of the court. warranty in case of failure of both the manufacturer and
c)​ The owner-possessor or user of instrument of weights and distributor to honor the warranty. In such case, the retailer shall
measure enumerated in paragraphs (h) to (k) of Article 64 shoulder the expenses and costs necessary to honor the
shall, upon conviction, be subject to a fine of not less than warranty. Nothing therein shall prevent the retailer from
Three hundred pesos (P300.00) or imprisonment not proceeding against the distributor or manufacturer.

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4) Enforcement of warranty or guarantee. – The warranty 2) In case of breach of implied warranty, the consumer may
rights can be enforced by presentment of a claim. To this end, retain in the goods and recover damages, or reject the goods,
the purchaser needs only to present to the immediate seller cancel and contract and recover from the seller so much of the
either the warranty card of the official receipt along with the purchase price as has been paid, including damages.
product to be serviced or returned to the immediate seller. No
other documentary requirement shall be demanded from the Article 69. Warranties in Supply of Services. –
purchaser. If the immediate seller is the manufacturer's factory a)​ In every contract for the supply of services to a consumer
or showroom, the warranty shall immediately be honored. If the made by a seller in the course of a business, there is an
product was purchased from a distributor, the distributor shall implied warranty that the service will be rendered with due care
likewise immediately honor the warranty. In the case of a and skill and that any material supplied in connection with
retailer other than the distributor, the former shall take such services will be reasonably fit for the purpose for which it
responsibility without cost to the buyer of presenting the is supplied.
warranty claim to the distributor in the consumer's behalf. b)​ Where a seller supplies consumer services in the course of a
5) Record of purchases. – Distributors and retailers covered by business and the consumer, expressly or by implication, makes
this Article shall keep a record of all purchases covered by a known to the seller the particular purpose for which the
warranty or guarantee for such period of time corresponding to services are required, there is an implied warranty that the
the lifetime of the product's respective warranties or services supplied under the contract and any material supplied
guarantees. in connection therewith will be reasonably fit for that purpose
6) Contrary stipulations – null and void. – All covenants, or are of such a nature or quality that they might reasonably be
stipulations or agreements contrary to the provisions of this expected to achieve that result, unless the circumstances
Article shall be without legal effect. show that the consumer does not rely or that it is unreasonable
c)​ Designation of warranties. – A written warranty shall clearly for him to rely, on the seller's skill or judgment.
and conspicuously designate such warranty as:
1) "Full warranty" if the written warranty meets the minimum
Article 70. Professional Services. – The provision of this Act on
requirements set forth in paragraph (d); or
warranty shall not apply to professional services of certified public
2) "Limited warranty" if the written warranty does not meet
accountants, architects, engineers, lawyers, veterinarians, optometrists,
such minimum requirements.
pharmacists, nurses, nutritionists, dietitians, physical therapists,
d)​ Minimum standards for warranties. – For the warrantor of a
salesmen, medical and dental practitioners and other professionals
consumer product to meet the minimum standards for
engaged in their respective professional endeavors.
warranty, he shall:
1) remedy such consumer product within a reasonable time
and without charge in case of a defect, malfunction or failure Article 71. Guaranty of Service Firms. – Service firms shall
to conform to such written warranty; guarantee workmanship and replacement of spare parts for a period not
2) permit the consumer to elect whether to ask for a refund or less than ninety (90) days which shall be indicated in the pertinent
replacement without charge of such product or part, as the invoices.
case may be, where after reasonable number of attempts to
remedy the defect or malfunction, the product continues to Article 72. Prohibited Acts. – The following acts are prohibited:
have the defect or to malfunction. a)​ refusal without any valid legal cause by the total manufacturer
The warrantor will not be required to perform the above duties if he can or any person obligated under the warranty or guarantee to
show that the defect, malfunction or failure to conform to a written honor a warranty or guarantee issued;
warranty was caused by damage due to unreasonable use thereof. b)​ unreasonable delay by the local manufacturer or any person
e)​ Duration of warranty. – The seller and the consumer may obligated under the warranty or guarantee in honoring the
stipulate the period within which the express warranty shall be warranty;
enforceable. If the implied warranty on merchantability c)​ removal by any person of a product's warranty card for the
accompanies an express warranty, both will be of equal purpose of evading said warranty obligation;
duration. d)​ any false representation in an advertisement as to the
Any other implied warranty shall endure not less than sixty (60) existence of a warranty or guarantee.
days nor more than one (1) year following the sale of new
consumer products. Article 73. Penalties. –
f)​ Breach of warranties. – a)​ Any person who shall violate the provisions of Article 67 shall
1) In case of breach of express warranty, the consumer may be subject to fine of not less than Five hundred pesos
elect to have the goods repaired or its purchase price refunded (P500.00) but not more than Five thousand pesos (P5,000.00)
by the warrantor. In case the repair of the product in whole or in or an imprisonment of not less than three (3) months but not
part is elected, the warranty work must be made to conform to more than two (2) years or both upon the discretion of the
the express warranty within thirty (30) days by either the court. A second conviction under this paragraph shall also
warrantor or his representative. The thirty-day period, however, carry with it the penalty or revocation of his business permit
may be extended by conditions which are beyond the control of and license.
the warrantor or his representative. In case the refund of the b)​ Any person, natural or juridical, committing any of the illegal
purchase price is elected, the amount directly attributable to acts provided for in Chapter III, except with respect to Article
the use of the consumer prior to the discovery of the 67, shall be liable for a fine of not less than One thousand
nonconformity shall be deducted. pesos (P1,000.00) but not more than Fifty thousand pesos

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(P50,000.00) or imprisonment for a period of at least one (1) Any word, statement or other information required by or under authority
year but not more than five (5) years, or both, at the discretion of the preceding paragraph shall appear on the label or labeling with such
of the court. conspicuousness as compared with other words, statements, designs or
The imposition of any of the penalties herein provided is without devices therein, and in such terms as to render it likely to be read and
prejudice to any liability incurred under the warranty or guarantee. understood by the ordinary individual under customary conditions of
purchase or use.
CHAPTER IV The above requirements shall form an integral part of the label without
danger of being erased or detached under ordinary handling of the
LABELING AND FAIR PACKAGING
product.
Article 74. Declaration of Policy. – The State shall enforce
compulsory labeling, and fair packaging to enable the consumer to
Article 78. Philippine Product Standard Mark. – The label may
obtain accurate information as to the nature, quality and quantity of the
contain the Philippine Product Standard Mark if it is certified to have
contents of consumer products and to facilitate his comparison of the
passed the consumer product standard prescribed by the concerned
value of such products.
department.

Article 75. Implementing Agency. – The Department of Trade Article 79. Authority of the Concerned Department to
and Industry shall enforce the provisions of this Chapter and its
implementing rules and regulations: Provided, That with respect to food, Provide for Additional Labeling and Packaging
drugs, cosmetics, devices and hazardous substances, it shall be Requirements. – Whenever the concerned department determines
enforced by the concerned department. that regulations containing requirements other than those prescribed in
Article 77 hereof are necessary to prevent the deception of the consumer
Article 76. Prohibited Acts on Labeling and Packaging. – It or to facilitate value comparisons as to any consumer product, it may
shall be unlawful for any person, either as principal or agent, engaged in issue such rules and regulations to:
the labeling or packaging of any consumer product, to display or a)​ establish and define standards for characterization of the size
distribute or to cause to be displayed or distributed in commerce any of a package enclosing any consumer product which may be
consumer product whose package or label does not conform to the used to supplement the label statement of net quality, of
provisions of this Chapter. contents of packages containing such products but this clause
The prohibition in this Chapter shall not apply to persons engaged in the shall not be construed as authorizing any limitation on the size,
business of wholesale or retail distributors of consumer products except shape, weight, dimensions, or number of packages which may
to the extent that such persons: be used to enclose any product;
a)​ are engaged in the packaging or labeling of such products; b)​ regulate the placement upon any package containing any
b)​ prescribe or specify by any means the manner in which such product or upon any label affixed to such product of any
products are packaged or labeled; or printed matter stating or representing by implication that such
c)​ having knowledge, refuse to disclose the source of the product is offered for retail at a price lower than the ordinary
mislabeled or mispackaged products. 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;
Article 77. Minimum Labeling Requirements for Consumer
c)​ prevent the nonfunctional slack-fill of packages containing
Products. – All consumer products domestically sold whether consumer products.
manufactured locally or imported shall indicate the following in their For purposes of paragraph (c) of this Article, a package shall be deemed
respective labels of packaging: to be nonfunctionally slack-filled if it is filled to substantially less than its
a)​ its correct and registered trade name or brand name; capacity for reasons other than (1) protection of the contents of such
b)​ its duly registered trademark; package, (2) the requirements of machines used for enclosing the
c)​ its duly registered business name; contents in such package, or (3) inherent characteristics of package
d)​ the address of the manufacturer, importer, repacker of the materials or construction being used.
consumer product in the Philippines;
e)​ its general make or active ingredients;
Article 80. Special Packaging of Consumer Products for
f)​ the net quality of contents, in terms of weight, measure or
numerical count rounded of to at least the nearest tenths in the the Protection of Children. – The concerned department may
metric system; establish standards for the special packaging of any consumer product if
g)​ country of manufacture, if imported; and it finds that:
h)​ if a consumer product is manufactured, refilled or repacked a)​ the degree or nature of the hazard to children in the availability
under license from a principal, the label shall so state the fact. of such product, by reason of its packaging, is such that
The following may be required by the concerned department in special packaging is required to protect children from serious
accordance with the rules and regulations they will promulgate under personal injury or serious illness resulting from handling and
authority of this Act: use of such product; and
a)​ whether it is flammable or inflammable; b)​ the special packaging to be required by such standard is
b)​ directions for use, if necessary; technically feasible, practicable and appropriate for such
c)​ warning of toxicity; product. In establishing a standard under this Article, the
d)​ wattage, voltage or amperes; or concerned department shall consider:
e)​ process of manufacture used if necessary. 1)​ the reasonableness of such standard;

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2)​ available scientific, medical and engineering data statements, designs or devices in the labeling and in such
concerning special packaging and concerning terms as to render it likely to be read and understood by the
accidental, ingestions, illnesses and injuries caused ordinary individual under customary conditions of purchase
by consumer product; and use;
3)​ the manufacturing practices of industries affected g)​ if it purports to be or is represented as a food for which a
by this Article; and definition or standard of identity has been prescribed unless:
4)​ the nature and use of consumer products. 1)​ it conforms to such definition and standard; and 2
2)​ its labels bears the name of the food specified in the
Article 81. Price Tag Requirement. – It shall be unlawful to offer definition or standards, and insofar as may be
any consumer product for retail sale to the public without an appropriate required by such regulations, the common names of
price tag, label or marking publicly displayed to indicate the price of each optional ingredients other than spices, flavoring and
article and said products shall not be sold at a price higher than that coloring, present in such food;
stated therein and without discrimination to all buyers: Provided, That h)​ if it purports to be or represented as:
lumber sold, displayed or offered for sale to the public shall be tagged or 1)​ a food for which a standard of quality has been
labeled by indicating thereon the price and the corresponding official prescribed by regulations as provided in this Act and
name of the wood: Provided, further, That if consumer products for sale its quality fall below such standard, unless its label
are too small or the nature of which makes it impractical to place a price bears in such manner and form as such regulations
tag thereon price list placed at the nearest point where the products are specify, a statement that it falls below such
displayed indicating the retail price of the same may suffice. standard; or
2)​ a food for which a standard or standards or fill of
container have been prescribed by regulations as
Article 82. Manner of Placing Price Tags. – Price tags, labels or
provided by this Act and it falls below the standard
markings must be written clearly, indicating the price of the consumer
of fill of container applicable thereto, unless its label
product per unit in pesos and centavos.
bears, in such manner and form as such regulations
specify, a statement that it falls below such
Article 83. Regulations for Price Tag Placement. – The standard;
concerned department shall prescribe rules and regulations for the i)​ if it is not subject to the provisions of paragraph (g) of this
visible placement of price tags for specific consumer products and Article unless its label bears:
services. There shall be no erasures or alterations of any sort of price 1)​ the common or usual name of the food, if there be
tags, labels or markings. any; and
2)​ in case it is manufactured or processed from two or
Article 84. Additional Labeling Requirements for Food. – more ingredients, the common or usual name of
The following additional labeling requirements shall be imposed by the such ingredient; except the spices, flavorings and
concerned department for food: colorings other than those sold as such, may be
a)​ expiry or expiration date, where applicable; designated as spices, flavorings and colorings
b)​ whether the consumer product is semi-processed, fully without naming each: Provided, That to the extent
processed, ready-to-cook, ready-to-eat, prepared food or just that compliance with the requirement of clause (2)
plain mixture; of this paragraph is impracticable or results in
c)​ nutritive value, if any; deception or unfair competition, exemptions shall be
d)​ whether the ingredients use are natural or synthetic, as the established by regulations promulgated by the
case may be; concerned department of health;
e)​ such other labeling requirements as the concerned department j)​ if it purports to be or is represented for special dietary uses,
may deem necessary and reasonable. unless its label bears such information concerning its vitamin
or mineral or other dietary properties as the concerned
Article 85. Mislabeled Food. – A food shall also be deemed department determines to be, or by regulations prescribed as
mislabeled: necessary in order fully to inform purchasers as its value for
a)​ if its labeling or advertising is false or misleading in any way; such uses;
b)​ if it is offered for sale under the name of another food; k)​ if it bears or contains any artificial flavoring, artificial coloring,
c)​ if it is an imitation of another food, unless its label bears in or chemical preservative, unless it bears labeling, stating that
type of uniform size and prominence, the word "imitation" and, fact: Provided, That to the extent that compliance with the
immediately thereafter, the name of the food imitated; requirements of this paragraph is impracticable, exemptions
d)​ its containers is so made, formed, or filled as to be misleading; shall be established by regulations promulgated by the
e)​ if in package form unless it bears a label conforming to the concerned department. The provisions of this paragraph or
requirements of this Act: Provided, That reasonable variation paragraphs (g) and (i) with respect to the artificial coloring
on the requirements of labeling shall be permitted and shall not apply in the case of butter, cheese or ice cream.
exemptions as to small packages shall be established by the
regulations prescribed by the concerned department of health; Article 86. Labeling of Drugs. – The Generics Act shall apply in the
f)​ if any word, statement or other information required by or labeling of drugs.
under authority of this Act to appear on the principal display
panel of the label or labeling is not prominently placed thereon
with such conspicuousness as compared with other words,

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Article 87. Additional Labeling Requirements for conditions or by children where its use may be dangerous to
health, or against unsafe dosage or methods or duration of
Cosmetics. – The following additional requirements may be required
administration or application, in such manner and form, as are
for cosmetics:
necessary for the protection of users: Provided, That where any
a)​ expiry or expiration date;
requirement of clause (1) of this paragraph, as applied to any
b)​ whether or not it may be an irritant;
drug or device, is not necessary for the protection of the public
c)​ precautions or contra-indications; and
health, the concerned department may promulgate regulations
d)​ such other labeling requirements as the concerned department
exempting such drug or device from such requirement;
may deem necessary and reasonable.
f)​ if it purports to be a drug the name of which is recognized in an
official compendium, unless it is packaged and labeled as
Article 88. Special Labeling Requirements for Cosmetics. – prescribed therein: Provided, That the method of packing may
A cosmetic shall be deemed mislabeled: be modified with the consent of the concerned department;
a)​ if its labeling or advertising is false or misleading in any way; g)​ if it has been found by the concerned department to be a drug
b)​ if in package form unless it bears a label conforming to the liable to deterioration, unless it is packaged in such form and
requirements of labeling provided for in this Act or under manner, and its label bears a statement of such precautions,
existing regulations: Provided, That reasonable variations shall as the concerned department, shall by regulations, require as
be permitted, and exemptions as to small packages shall be necessary for the protection of the public health;
established by regulations prescribed by the concerned h)​ 1) if it is a drug and its container is so made, formed or filled as
department; to be misleading; or
c)​ if any word, statement or other information required by or 2) if it is an imitation of another drug; or
under authority of this Act to appear on the label or labeling is 3) if it is dangerous to health when used in the dosage, or with
not prominently placed thereon with such conspicuousness, as the frequency of duration prescribed, recommended or
compared with other words, statements, designs or devices in suggested in the labeling thereof
the labeling, and in such terms as to render it likely to be read i)​
and understood by the ordinary individual under customary j)​ if it is, purports to be or is represented as a drug composed
conditions of purchase and use; wholly or partly of insulin or of any kind of penicillin,
d)​ if its container is so made, formed or filled as to be misleading; streptomycin, chlortetracycline, chloramphenicol, bacitracin, or
or any other antibiotic drug, or any derivative thereof, unless:
e)​ if its label does not state the common or usual name of its 1)​ it is from a batch with respect to which a certificate
ingredients. of release has been issued pursuant to regulations
of the concerned department; and
Article 89. Mislabeled Drugs and Devices. – A drug or device 2)​ such certificate of release is in effect with respect to
shall be deemed to be mislabeled: such drug: Provided, That this paragraph shall not
a)​ if its labeling is false or misleading in any way; apply to any drug or class of drugs exempted by
b)​ if its in package form unless it bears a label conforming to the regulations promulgated under Authority of this Act.
requirements of this Act or the regulations promulgated
therefor: Provided, that reasonable variations shall be Article 90. Regulation-making Exemptions. – The concerned
permitted and exemptions as to small packages shall be department may promulgate regulations exempting from any labeling
established by regulations prescribed by the concerned requirements of this Act food, cosmetics, drugs or devices which are, in
department. accordance with the practice of trade, to be processed, labeled or
c)​ if any word, statement or other information required by or repacked in substantial quantities at establishments other than those
under authority of this Act to appear on the principal display where originally processed, labeled or packed on condition that such
panel of the label or labeling is not prominently placed thereon food, cosmetics, drugs or devices are not adulterated or mislabeled
with such conspicuousness as compared with other words, under the provisions of this Act and other applicable laws upon approval
statements, designs or devices in the labeling and in such from such processing, labeling and repacking establishments.
terms as to render it likely to be read and understood by the
ordinary individual under customary conditions of purchase
Article 91. Mislabeled Hazardous Substances. – Hazardous
and use;
substances shall be deemed mislabeled when:
d)​ if it is for use by man and contains any quantity of the narcotic
a)​ having been intended or packaged in a form suitable for use in
or hypnotic substance alpha-eucaine, barbituric acid,
households, especially for children, the packaging or labeling
beta-eucaine, bromal, cannabis, carbromal, chloral, coca,
of which is in violation of the special packaging regulations
cocaine, codeine, heroin, marijuana, morphine, opium,
issued by the concerned department;
paraldehyde, peyote or sulfonmethane, or any chemical
b)​ such substance fails to bear a label;
derivative of such substance, which derivative has been
1)​ which states conspicuously:
designated by the concerned department after investigation,
(i) the name and the place of business of the
and by regulations as habit forming; unless its label bears the
manufacturer, packer, distributor or seller;
name and quantity or proportion of such substance or
(ii) the common or usual name or the chemical
derivative and in juxtaposition therewith the statement
name, if there be no common or usual name, of the
"Warning-May be habit forming";
hazardous substance or of each component which
e)​ its labeling does not bear: 1) adequate directions for use; and
contributes substantially to the harmfulness of the
2) such adequate warning against use in those pathological
substance, unless the concerned department by

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regulation permits or requires the use of the b)​ any hazardous substance condemned under this Article shall
recognized generic name; after entry of order of condemnation be disposed of by
(iii) the signal word "danger" on substances which destruction or sale as the concerned department may direct,
are extremely flammable, corrosive or highly toxic; and the proceeds thereof, if sold, less the legal cost and
(iv) the signal word "warning" or "caution" with a charges, shall be paid into the treasury of the Philippines; but
bright red or orange color with a black symbol on all such hazardous substance shall not be sold under any order
other hazardous substances; which is contrary to the provisions of this Act; Provided, That,
(v) a clear statement as to the possible injury it may after entry of the order and upon the payment of the costs of
cause if used improperly; such proceedings and the execution of a good and sufficient
(vi) precautionary measures describing the action to bond conditioned that such hazardous substance shall not be
be followed or avoided; sold or disposed of contrary to the provisions of this Act, the
(vii) instructions when necessary or appropriate for concerned department may direct that such hazardous
first-aid treatment; substance be delivered to or retained by the owner thereof for
(viii) the word" poison" for any hazardous substance destruction or for alteration to comply with the provisions of
which is defined as highly toxic; this Act under the supervision of an officer or employee duly
(ix) instructions for handling and storage of designated by the concerned department. The expenses for
packages which require special care in handling and such supervision shall be paid by the person obtaining release
storage; and of the hazardous substance under bond.
(x) the statement "keep out of the reach of children", c)​ all expenses in connection with the destruction provided for in
or its practical equivalent, if the article is not paragraphs (a) and (b) of this Article and all expenses in
intended for use by children and is not a banned connection with the storage and labor with respect to such
hazardous substance, with adequate directions for hazardous substance shall be paid by the owner or consignee,
the protection of children from the hazard involved. and default in such payment shall constitute a lien against any
The aforementioned signal words, affirmative importation by such owner or consignee.
statements, description of precautionary measures,
necessary instructions or other words or statements Article 94. Labeling Requirements of Cigarettes. – All
may be in English language or its equivalent in cigarettes for sale or distribution within the country shall be contained in
Filipino; and a package which shall bear the following statement or its equivalent in
2)​ on which any statement required under clause 1) of Filipino: "Warning" Cigarette Smoking is Dangerous to Your Health". Such
this paragraph is located prominently in bright red statement shall be located in conspicuous place on every cigarette
and orange color with a black symbol in contrast package and shall appear in conspicuous and legible type in contrast by
typography, layout or color with the other printed typography, layout or color with other printed matter on the package. Any
matters on the label. advertisement of cigarette shall contain the name warning as indicated
in the label.
Article 92. Exemptions. – If the concerned department finds that
for good or sufficient reasons, full compliance with the labeling Article 95. Penalties. –
requirements otherwise applicable under this Act is impracticable or is a)​ Any person who shall violate the provisions of Title III, Chapter
not necessary for the adequate protection of public health and safety, it IV of this Act, or its implementing rules and regulations, except
shall promulgate regulations exempting such substances from these Articles 81 to 83 of the same Chapter, shall be subject to a fine
requirements to the extent it deems consistent with the objective of of not less than Five hundred pesos (P500.00) but not more
adequately safeguarding public health and safety, and any hazardous than Twenty thousand pesos (P20,000.00) or imprisonment of
substance which does not bear a label in accordance with such not less than three (3) months but not more than two (2) years
regulations shall be deemed mislabeled hazardous substance. or both, at the discretion of the court: Provided, That, if the
consumer product is one which is not a food, cosmetic, drug,
Article 93. Grounds for Seizure and Condemnation of device or hazardous substance, the penalty shall be a fine of
Mislabeled Hazardous Substances. – not less than Two hundred pesos (P200.00) but not more than
a)​ Any mislabeled hazardous substance when introduced into Five thousand pesos (P5,000.00) or imprisonment of not less
commerce or while held for sale shall be liable to be proceeded than one (1) month but not more than one (1) year or both, at
against and condemned upon order of the concerned the discretion of the court.
department in accordance with existing procedure for seizure b)​ Any person who violates the provisions of Article 81 to 83 for
and condemnation of articles in commerce: Provided, That this the first time shall be subject to a fine of not less than Two
Article shall not apply to a hazardous substance intended for hundred pesos (P200.00) but not more than Five thousand
export to any foreign country if: pesos (P5,000.00) or by imprisonment of not less than one (1)
1)​ it is in a package labeled in accordance with the month but not more than six (6) months or both, at the
specifications of the foreign purchaser; discretion of the court. A second conviction under this
2)​ it is labeled in accordance with the laws of the paragraph shall also carry with it the penalty of revocation of
foreign country; business permit and license.
3)​ it is labeled on the outside of the shipping package
to show that it is intended for export; and CHAPTER V
4)​ it is so exported, LIABILITY FOR PRODUCT AND SERVICE

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Article 96. Implementing Agency. – The Department of Trade information provided on the container, packaging, labels or publicity
and Industry shall enforce the provisions of this Chapter and its messages/advertisement, with due regard to the variations resulting
implementing rules and regulations. from their nature, the consumer being able to demand replacement to the
imperfect parts.
If the imperfection is not corrected within thirty (30) days, the consumer
Article 97. Liability for the Defective Products. – Any Filipino
may alternatively demand at his option:
or foreign manufacturer, producer, and any importer, shall be liable for
a)​ the replacement of the product by another of the same kind, in
redress, independently of fault, for damages caused to consumers by
a perfect state of use;
defects resulting from design, manufacture, construction, assembly and
b)​ the immediate reimbursement of the amount paid, with
erection, formulas and handling and making up, presentation or packing
monetary updating, without prejudice to any losses and
of their products, as well as for the insufficient or inadequate information
damages;
on the use and hazards thereof.
c)​ a proportionate price reduction.
A product is defective when it does not offer the safety rightfully
The parties may agree to reduce or increase the term specified in the
expected of it, taking relevant circumstances into consideration,
immediately preceding paragraph; but such shall not be less than seven
including but not limited to:
(7) nor more than one hundred and eighty (180) days.
a)​ presentation of product;
The consumer may make immediate use of the alternatives under the
b)​ use and hazards reasonably expected of it;
second paragraph of this Article when by virtue of the extent of the
c)​ the time it was put into circulation.
imperfection, the replacement of the imperfect parts may jeopardize the
A product is not considered defective because another better quality
product quality or characteristics, thus decreasing its value.
product has been placed in the market. The manufacturer, builder,
If the consumer opts for the alternative under sub-paragraph (a) of the
producer or importer shall not be held liable when it evidences:
second paragraph of this Article, and replacement of the product is not
a)​ that it did not place the product on the market;
possible, it may be replaced by another of a different kind, mark or model:
b)​ that although it did place the product on the market such
Provided, That any difference in price may result thereof shall be
product has no defect;
supplemented or reimbursed by the party which caused the damage,
c)​ that the consumer or a third party is solely at fault.
without prejudice to the provisions of the second, third and fourth
paragraphs of this Article.
Article 98. Liability of Tradesman or Seller. – The
tradesman/seller is likewise liable, pursuant to the preceding article
Article 101. Liability for Product Quantity Imperfection. –
when;
Suppliers are jointly liable for imperfections in the quantity of the product
a)​ it is not possible to identify the manufacturer, builder, producer
when, in due regard for variations inherent thereto, their net content is
or importer.
less than that indicated on the container, packaging, labeling or
b)​ the product is supplied, without clear identification of the
advertisement, the consumer having powers to demand, alternatively, at
manufacturer, producer, builder or importer;
his own option:
c)​ he does not adequately preserve perishable goods. The party
a)​ the proportionate price
making payment to the damaged party may exercise the right
b)​ the supplementing of weight or measure differential;
to recover a part of the whole of the payment made against the
c)​ the replacement of the product by another of the same kind,
other responsible parties, in accordance with their part or
mark or model, without said imperfections;
responsibility in the cause of the damage effected.
d)​ the immediate reimbursement of the amount paid, with
monetary updating without prejudice to losses and damages if
Article 99. Liability for Defective Services. – The service any.
supplier is liable for redress, independently of fault, for damages caused The provisions of the fifth paragraph of Article 99 shall apply to this
to consumers by defects relating to the rendering of the services, as well Article.
as for insufficient or inadequate information on the fruition and hazards The immediate supplier shall be liable if the instrument used for
thereof. weighing or measuring is not gauged in accordance with official
The service is defective when it does not provide the safety the standards.
consumer may rightfully expect of it, taking the relevant circumstances
into consideration, including but not limited to:
Article 102. Liability for Service Quality Imperfection. – The
a)​ the manner in which it is provided;
service supplier is liable for any quality imperfections that render the
b)​ the result of hazards which may reasonably be expected of it;
services improper for consumption or decrease their value, and for those
c)​ the time when it was provided.
resulting from inconsistency with the information contained in the offer
A service is not considered defective because of the use or introduction
or advertisement, the consumer being entitled to demand alternatively at
of new techniques.
his option:
The supplier of the services shall not be held liable when it is proven:
a)​ the performance of the services, without any additional cost
a)​ that there is no defect in the service rendered;
and when applicable;
b)​ that the consumer or third party is solely at fault.
b)​ the immediate reimbursement of the amount paid, with
monetary updating without prejudice to losses and damages, if
Article 100. Liability for Product and Service Imperfection. any;
– The suppliers of durable or nondurable consumer products are jointly c)​ a proportionate price reduction.
liable for imperfections in quality that render the products unfit or Reperformance of services may be entrusted to duly qualified third
inadequate for consumption for which they are designed or decrease parties, at the supplier's risk and cost.
their value, and for those resulting from inconsistency with the

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Improper services are those which prove to be inadequate for purposes An advertisement shall be false, deceptive or misleading if it is not in
reasonably expected of them and those that fail to meet the provisions of conformity with the provisions of this Act or if it is misleading in a
this Act regulating service rendering. material respect. In determining whether any advertisement is false,
deceptive or misleading, there shall be taken into account, among other
Article 103. Repair Service Obligation. – When services are things, not only representations made or any combination thereof, but
provided for the repair of any product, the supplier shall be considered also the extent to which the advertisement fails to reveal material facts in
implicitly bound to use adequate, new, original replacement parts, or the light of such representations, or materials with respect to
those that maintain the manufacturer's technical specifications unless, consequences which may result from the use or application of consumer
otherwise authorized, as regards to the latter by the consumer. products or services to which the advertisement relates under the
conditions prescribed in said advertisement, or under such conditions as
are customary or usual.
Article 104. Ignorance of Quality Imperfection. – The
supplier's ignorance of the quality imperfections due to inadequacy of the
products and services does not exempt him from any liability Article 111. Price Comparisons. – Comparative price advertising
by sellers of consumer products or services shall conform to the
following conditions:
Article 105. Legal Guarantee of Adequacy. – The legal
a)​ Where the comparison relates to a former price of the seller,
guarantee of product or service adequacy does not require an express
the item compared shall either have been sold at that price
instrument or contractual exoneration of the supplier being forbidden.
within the ninety (90) days immediately preceding the date of
the advertisement, or it shall have been offered for sale for at
Article 106. Prohibition in Contractual Stipulation. – The least four (4) weeks during such ninetyday period. If the
stipulation in a contract of a clause preventing, exonerating or reducing comparison does not relate to an item sold or offered for sale
the obligation to indemnify for damages effected, as provided for in this during the ninety-day period, the date, time or seasonal period
and in the preceding Articles, is hereby prohibited, if there is more than of such sale or offer shall be disclosed in the advertisement.
one person responsible for the cause of the damage, they shall be jointly b)​ Where the comparison relates to a seller's future price, the
liable for the redress established in the pertinent provisions of this Act. future price shall take effect on the date disclosed in the
However, if the damage is caused by a component or part incorporated in advertisement or within ninety (90) days after the price
the product or service, its manufacturer, builder or importer and the comparison is stated in the advertisement. The stated future
person who incorporated the component or part are jointly liable. price shall be maintained by the seller for a period of at least
four (4) weeks after its effective date: Provided, That
Article 107. Penalties. – Any person who shall violate any provision compliance thereof may be dispensed with in case of
of this Chapter or its implementing rules and regulations with respect to circumstances beyond the seller's control.
any consumer product which is not food, cosmetic, or hazardous c)​ Where the comparison relates to a competitor's price, the
substance shall upon conviction, be subject to a fine of not less than Five competitor's price shall relate to the consumer products or
thousand pesos (P5,000.00) and by imprisonment of not more than one services advertised or sold in the ninety-day period and shall
(1) year or both upon the discretion of the court. be representative of the prices similar consumer products or
In case of juridical persons, the penalty shall be imposed upon its services are sold or advertised in the locality where the price
president, manager or head. If the offender is an alien, he shall, after comparison was made.
payment of fine and service of sentence, be deported without further
deportation proceedings. Article 112. Special Advertising Requirements for Food,
Drug, Cosmetic, Device, or Hazardous Substance. –
CHAPTER VI a)​ No claim in the advertisement may be made which is not
ADVERTISING AND SALES PROMOTION contained in the label or approved by the concerned
Article 108. Declaration of Policy. – The State shall protect the department.
consumer from misleading advertisements and fraudulent sales b)​ No person shall advertise any food, drug, cosmetics, device, or
promotion practices. hazardous substance in manner that is false, misleading or
deceptive or is likely to create an erroneous impression
regarding its character, value, quantity, composition, merit, or
Article 109. Implementing Agency. – The Department of Trade
safety.
and Industry shall enforce the provisions of this Chapter and its
c)​ Where a standard has been prescribed for a food, drug,
implementing rules and regulations: Provided, That with respect to food,
cosmetic, or device, no person shall advertise any article or
drugs, cosmetics, devices and hazardous substances, it shall be
substance in such a manner that it is likely to be mistaken for
enforced by the Department of Health.
such product, unless the article complies with the prescribed
standard or regulation.
FALSE, DECEPTIVE AND MISLEADING ADVERTISEMENT d)​ No person shall, in the advertisement of any food, drug,
Article 110. False, Deceptive or Misleading Advertisement. cosmetic, device, or hazardous substance, make use of any
– It shall be unlawful for any person to disseminate or to cause the reference to any laboratory report of analysis required to be
dissemination of any false, deceptive or misleading advertisement by furnished to the concerned department, unless such laboratory
Philippine mail or in commerce by print, radio, television, outdoor report is duly approved by such department.
advertisement or other medium for the purpose of inducing or which is e)​ Any businessman who is doubtful as to whether his
likely to induce directly or indirectly the purchase of consumer products advertisement relative to food, drug, cosmetic, device, or
or services. hazardous substance will violate or does not conform with this

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Act or the concerned department's pertinent rules and

regulations may apply to the same for consideration and Article 119. Packaging of Products Under Promotion. – The
opinion on such matter before such advertisement is packaging of the products covered by the sales promotion shall not be
disseminated to the public. In this case, the concerned tampered, neither shall any change in the product's package be affected
department shall give its opinion and notify the applicant of its without the authority of the sponsoring agency or the owner or
action within thirty (30) days from the date of application; manufacturer of the product.
otherwise, the application shall be deemed approved.
f)​ No person shall advertise any food, drug, cosmetic, device, or
Article 120. Change in Starting and Termination Dates of
hazardous substance unless such product is duly registered
and approved by the concerned department for use in any Promotion. – The concerned department shall be advised of any delay
advertisement. of starting dates or termination dates and details of any change in the
conduct of a sales promotion. Any change in the termination dates shall
be published in a newspaper of general circulation before the expiration
Article 113. Credit Advertising. – No advertisement to aid,
of the original schedule or the termination date, whichever comes first.
promote, or assist, directly or indirectly, any extension of consumer credit
may:
a)​ state that a specific periodic consumer credit amount or Article 121. Determination of Winners. – The winners in any
installment amount can be arranged, unless the creditor sales promotion shall be determined at a definite time and place and
usually and customarily arranges credit payment or shall be verified by a representative of the concerned department and the
installments for that period and in that amount; and sponsor. Immediately after the winners are selected or determined, a list
b)​ state that a specified down payment is required in any with their addresses and corresponding prizes shall be submitted to the
extension of consumer credit, unless the creditor usually or concerned department. All winners shall be announced or published in
customarily arranges down payment in that amount. the same manner that the sales promotion was announced or published:
Provided, That publication in a newspaper of general circulation shall be
done in a legible manner at least once, if the sales promotion is national
Article 114. Advertising of Open-end Credit Plan. – In case of
in scope: Provided, further, That such announcement and publication
an open-end credit plan, the rate of interest and other material features of
shall be done not later than two (2) weeks after the determination of
the plan shall be disclosed in the advertisement.
winners. In all cases where the amount of the price is Five hundred pesos
(P500.00) or more, the winners shall also be notified in writing by
Article 115. Special Claims. – Any advertisement which makes registered mail or any communication wherein proof of notice or service
special claims shall: can be verified.
a)​ substantiate such claims; and
b)​ properly use research result, scientific terms, statistics or
Article 122. Injunctive Relief . –
quotations.
a)​ Whenever the concerned department has the reason to believe
(1) that any person, partnership or corporation is engaged in or
PROMOTION OF SALES OF CONSUMER PRODUCTS AND is about to engage in the dissemination or the causing of
SERVICES dissemination of any advertisement in violation of Articles 110
Article 116. Permit to Conduct Promotion. – No person shall to 115, and (2) that the enjoining thereof would be to the
conduct any sales campaigns, including beauty contest, national in interest of the public, the concerned department shall direct
character, sponsored and promoted by manufacturing enterprises the filing of a complaint in the court of competent jurisdiction,
without first securing a permit from the concerned department at least to enjoin the dissemination or the causing of the dissemination
thirty (30) calendar days prior to the commencement thereof. Unless an of such advertisement. Upon proper showing, a temporary
objection or denial is received within fifteen (15) days from filing of the injunction or restraining order shall be granted without bond.
application, the same shall be deemed approved and the promotion Any such complaint shall be filed in the locality in which the
campaign or activity may be conducted: Provided, That any sales person, partnership or corporation resides or transacts
promotion campaign using medical prescriptions or any part thereof or business.
attachment thereto for raffles or a promise of reward shall not be b)​ Any person who may suffer loss, damage or injury due to a
allowed, nor a permit be issued thereof. false, misleading or deceptive advertisement as defined in
Article 4 may file a complaint with injunction in his own name
with any court of competent jurisdiction to recover damages,
Article 117. Suspension of Publication or Dissemination of
cost of suit and reasonable attorney's fees.
Information. – The concerned department may, after due notice and
hearing, suspend the publication and dissemination of any information
Article 123. Penalties. –
accompanying a sales promotion campaign, if it finds the campaign to
a)​ any person, association, partnership or corporation who shall
be in violation of the provisions of this Chapter or its implementing rules
violate any of the provisions of Articles 110 to 115 shall, upon
and regulations.
conviction, be subject to a fine of not less than Five Hundred
Pesos (P500.00) but not more than Five thousand pesos
Article 118. Conduct of Sales Promotion. – A sales promotion (P5,000.00) or an imprisonment of not less than one (1) month
which is intended for broad consumer participation and utilizes mass but not more than (6) months or both upon the discretion of
media shall indicate the duration, commencement and termination of the the court.
promotion, the deadline for submission of entries and the governing b)​ Any violation of the provisions of Articles 116 to 121 shall,
criteria or procedure to be followed therein. upon conviction, subject the offenders to a fine of not less than

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Two hundred pesos (P200.00) but not more than Six hundred Article 131. Declaration of Policy. – The State shall simplify,
pesos (P600.00) or an imprisonment of not less than one (1) clarify and modernize the laws governing credit transactions and
month but not more than six (6) months or both upon the encourage the development of fair and economically sound consumer
discretion of the court. If the violation was committed by a credit practices. To protect the consumer from lack of awareness of the
juridical person, the manager, representative, director, agent or true cost of credit to the user, the State shall assure the full disclosure of
employee of said juridical person responsible for the act shall the true cost of credit
be deported after service of sentence and payment of the fine
without need for further deportation proceedings.
Article 132. Determination of Finance Charges. – Except as
otherwise provided, the amount of the finance charges in connection with
Article 124. Exemption from Penalties. – No publisher, radio any consumer credit transaction shall be determined as the sum of all
broadcast, television licensee or medium for the dissemination of charges, payable directly or indirectly by the person to whom the credit is
advertising shall be liable, under this Chapter, by reason of dissemination extended and imposed directly or indirectly by the creditor as an accident
by him of any false advertisement unless he refuses, on the request of to the extension of credit, including any of the following type of charges
appropriate authorities, to furnish the name and post office address of which are applicable:
the manufacturer, packer, distributor seller or advertising agency. This a)​ interest or time price differential and any amount payable
exemption shall not apply however, to the manufacturer, packer, under point or other system of additional charges;
distributor or seller of the consumer product or service and the b)​ collection fees which include finder's fees or similar charges;
advertising agency responsible for the false and misleading advertising. c)​ credit investigation fees;
d)​ notarial fees, if any;
CHAPTER VII e)​ premium or other charges for any guarantee or insurance
REGULATION OF REPAIR AND SERVICE FIRMS protecting the creditor against the obligor's default or other
credit loss. The implementing agency shall determine what
Article 125. Declaration of Policy. – The State shall cause the
items shall be exempted from the computation of the finance
accreditation of repair and service firms or establishments and their
charges.
technical personnel in order to protect the interest of the consumers
availing of their services.
Article 133. Determination of Simple Annual Rate. – The
simple annual rate applicable to any extension of consumer credit shall
Article 126. Implementing Agency. – The Department of Trade
be determined in accordance with the rules and regulations promulgated
and Industry, hereby referred to as the Department, shall enforce the
by the implementing agency.
provisions of this Chapter.

Article 127. Minimum Requirements for Accreditation. – Article 134. Delinquency Charges. – With respect to a consumer
credit transaction other than one pursuant to an open-end credit plan, the
The following shall be the minimum requirements for accreditation or
parties may agree to a delinquency charge on any installment not pain in
repair and service firms:
full on or before the tenth day after its scheduled or deferred due date.
a)​ the duly registered business name, firm name or style of the
firm;
b)​ date of issue and effectivity of the certificate of accreditation; Article 135. Deferral Charges. – The parties in a consumer credit
c)​ number and skills of technical personnel; and d) required transaction may at any time agree in writing to a deferral of all or part of
license for the repair or servicing of any consumer product as one or more unpaid installments and the creditor may make and collect a
required by special laws. charge which shall not exceed the rate previously disclosed pursuant to
the provisions on disclosure. A deferral charge may be collected at the
time it is assessed.
Article 128. Accreditation of Repair and Service Firm. – No
person shall operate a repair and service firm or act as technical
personnel therein without first being accredited by the Department. Article 136. Finance Charge on Refinancing. – The parties
may agree on a finance charge in an open-end credit plan based on the
amount financed resulting from the refinancing or consolidation at a rate
Article 129. Certification of Accreditation. – Upon compliance
not exceeding that permitted by the rules promulgated by the
with the requirements for accreditation, the Department shall issue the
implementing agency.
corresponding certificate of accreditation. A separate certificate shall be
required for each branch of an enterprise located in areas outside of the
main office. However, with respect to repair and service centers of Article 137. Right to Prepay. – The person to whom credit is
factory authorized representatives of franchised dealers, such centers extended may prepay in full or in part, at any time without penalty, the
may display a certified true copy of the certificate of accreditation of the unpaid balance of any consumer credit transaction.
parent company.
Article 138. Rebate on Prepayment. – Upon prepayment in full of
Article 130. Suspension, Revocation or Cancellation of the unpaid balance of a precomputed consumer credit transaction,
refinancing or consolidation, an amount not less than the unearned
Certification of Accreditation. – Any certificate of accreditation
portion of the finance charge calculated according to this Article shall be
may be suspended, revoked or cancelled by the Department, for cause,
rebated to the person to whom credit is extended.
after due notice and hearing.
The unearned portion of the precomputed finance charge on consumer
transactions repayable in substantially equal successive installments
TITLE IV. - CONSUMER CREDIT TRANSACTION

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shall be equal to at least that portion of finance charge which the sums d)​ where one or more periodic rates may be used to compute a
of the installment balances of the obligation scheduled to be outstanding finance charge, each such rate, the range of balances to which
after the installment date nearest the date of prepayment bears to the it is applicable, and the corresponding simple annual rate;
sum of all installment balances originally scheduled to be outstanding e)​ the conditions under which the creditor may impose a security
under the obligation. lien and a description of the goods to which such lien may
For the purpose of determining the installment date nearest the date of attach. The implementing agency shall prescribe regulations
prepayment when payments are monthly, any payment made on or consistent with commonly accepted accounting standards to
before the fifteenth day following an installment due date shall be carry out the requirements of this Article.
deemed to have been made as of the installment due date, and if
prepayment occurs after the fifteenth day, it shall be deemed to have Article 142. Required Disclosures on Consumer Loans Not
been made on the succeeding installment due date. This method of
Under Open-End Credit Plan. – Any creditor extending a consumer
calculating rebates may be referred to as the "rule of 78" or "sum of the
loan or in a transaction which is neither a consumer credit sale nor under
digits" method.
an open-end consumer credit plan shall disclose, to the extent applicable,
The implementing agency may promulgate and adopt rules and
the following information:
regulations with respect to other precomputed consumer credit
a)​ the amount of credit of which the debtor will have the actual
transactions.
use, or which is or will be paid to him or for his account or to
another person on his behalf;
Article 139. General Requirements on Credit Cost b)​ all charges, individually itemized, which are included in the
Disclosure. – Each creditor shall disclose, in accordance with the amount of credit extended but which are not part of the
regulations of the implementing agency, to each person to whom finance charge;
consumer credit is extended, the disclosures required by this Act. c)​ the total amount to be financed or the sum of the amounts
If there is more than one obligor, a creditor need not furnish a statement referred to in paragraphs (a) and (b);
of information required under this Act to more than one of them. d)​ the finance charge expressed in terms or pesos and centavos;
e)​ the effective interest rate;
Article 140. Credit Sale, Required Disclosures. – Any creditor f)​ the percentage that the finance charge bears to the total
extending a consumer credit sale other than one pursuant to an open-end amount to be financed expressed as a simple annual rate on
credit plan shall disclose in a statement to the extent applicable, the the outstanding unpaid balance of the obligation;
following information: g)​ the default, delinquency or similar charges payable in the event
a)​ the cash price or delivered price of the property or service to be of late payments;
acquired; h)​ a description of any security interest held or to be held or to be
b)​ the amounts, if any, to be credited as down payment and/or retained or acquired by the creditor in connection with the
trade in; extension of credit and a clear identification of the property to
c)​ the total amount to be financed or the difference between the which the security interest relates.
amounts set forth under paragraphs (1) and (2);
d)​ the charges, individually itemized, which are paid or to be paid Article 143. Form and Timing of Disclosure. – All disclosures
by such person in connection with the transaction but which required under this Act shall be made clearly and conspicuously in
are not incident to the extension of credit; writing before the transaction is consummated.
e)​ the finance charge expressed in terms of pesos and centavos;
f)​ the percentage that the finance charge bears to the total Article 144. Periodic Statement of Charges. – The periodic
amount to be financed expressed as a simple annual rate on statement transmitted by the creditor in connection with any extension of
the outstanding balance of the obligation; consumer credit other than under an open-end consumer credit plan,
g)​ the effective interest rate; shall set forth the following information:
h)​ the number, amount and due dates or periods of payments a)​ the simple annual rate;
scheduled to repay the indebtedness; and b)​ the effective interest rate;
i)​ the default, delinquency or similar charges payable in the event c)​ the date by which, or the period (if any) within which payment
of late payments. must be made in order to avoid additional finance charges;
d)​ method of determining the balance upon which the finance
Article 141. Required Disclosure on Open-end Credit Plan. charge may be imposed.
– Before opening any account under an open-end consumer credit plan,
the creditor shall disclose, to the extent applicable, the following Article 145. Exempted Transaction. – The foregoing
information: requirements on consumer credit transactions shall not apply to the
a)​ the conditions under which a finance charge may be imposed, following credit transactions:
including the time period, if any, within which any credit a)​ those involving extension of credits for business or
extended may be repaid without incurring a finance charge; commercial purposes, or to the Government and governmental
b)​ the method of determining the balance upon which a finance agencies and instrumentalities, juridical entities or to
charge may be imposed; organizations;
c)​ the method of determining the amount of the finance charges, b)​ those in which the debtor is the one specifying the definite set
including any minimum or fixed amount imposed as a finance of credit terms such as bank deposits, insurance contracts,
charge; sale of bonds or analogous transactions.

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Article 146. Sale of Consumer Products On Installment implementation and interpretation of the functions and duties of the
Council.
Payment. – In a consumer credit sale other than one pursuant to an
open-end credit plan, the obligation of the consumer to whom credit is
being extended shall be evidenced by a single instrument which shall Article 151. Per Diems of Members. – The members of the
include, in addition to the disclosures required by this act, the signature Council shall be entitled to an allowance of Five hundred pesos
of the seller and the person to whom credit is extended, the date it was (P500.00) per meeting actually attended but not more than Two
signed, a description of the property sold and a description of any thousand pesos (P2,000.00) a month.
property transferred as a trade-in. The instrument evidencing the credit
shall contain a clear and conspicuous typewritten notice to the person to Article 152. The Secretariat. – The Council shall appoint an
whom credit is being extended that: Executive Director who shall assist the Chairman and act as Secretary of
a)​ he should not sign the instrument if it contains any blank the Council. The Department of Trade and Industry shall provide the
space; Secretariat which shall assist the Council in the effective performance of
b)​ he is entitled to a reasonable return of the precomputed its functions.
finance charge if the balance is prepaid; and
c)​ he is entitled to an exact, true copy of the agreement. CHAPTER II
In cases where the instrument will be sold at a discount to a bank,
POWERS AND FUNCTIONS
financing company or other lender, the said transferee shall be subject to
all claims and defenses which the debtor could assert against the seller Article 153. Powers and Functions. – The Council have the
of consumer products obtained hereto or with the proceeds thereof. following powers and functions:
a)​ to rationalize and coordinate the functions of the agencies
charged with consumer programs and enforcement of
Article 147. Penalties. – Any creditor who in connection with any
consumer related laws to the end that an effective, coordinated
credit transaction fails to disclose to any person any information in
and integrated system of consumer protection, research and
violation of this Chapter or the Implementing rules and regulations
implementation and enforcement of such laws shall be
issued thereunder shall be liable to such person in the amount of One
achieved;
thousand pesos (P1,000.00) or in amount equal to twice the finance
b)​ to recommend new policies and legislation or amendments to
charge required by such creditor in connection with such transaction,
existing ones;
whichever is greater, except that such liability shall not exceed Three
c)​ to monitor and evaluate implementation of consumer
thousand pesos (P3,000.00) for any credit transaction and actual
programs and projects and to take appropriate steps to comply
damages with the non-disclosure of the required information. Action to
with the established priorities, standards and guidelines;
recover such penalty may be brought by such person within one (1) year
d)​ to seek the assistance of government instrumentalities in the
from the date of the occurrence of the violation in any court of
form of augmenting the need for personnel facilities and other
competent jurisdiction.
resources;
e)​ to undertake a continuing education and information campaign
TITLE V. - THE NATIONAL CONSUMER AFFAIRS COUNCIL to provide the consumer with, among others;
CHAPTER I 1) facts about consumer products and services;
ESTABLISHMENT AND COMPOSITION 2) consumer rights and the mechanism for redress available to
him;
Article 148. National Consumer Affairs Council. – To improve
3) information on new concepts and developments on
the management, coordination and effectiveness of consumer programs,
consumer protection; and
a National Consumer Affairs Council is hereby created,
4) general knowledge and awareness necessary for a critical
and better judgment on consumption;
Article 149. Composition. – The Council shall be composed of 5) such other matters of importance to the consumer's general
representatives from the following government agencies and well-being.
non-government agencies:
a)​ Department of Trade and Industry;
Article 154. Consumer Education in Schools. – The
b)​ Department of Education, Culture and Sports;
Department of Education, Culture and Sports, with the cooperation and
c)​ Department of Health;
advice of the Council, shall develop and adopt a consumer education
d)​ Department of Agriculture;
program which shall be integrated into existing curricula of all public and
e)​ four (4) representatives from consumer organizations of
private schools from primary to secondary level.
nationwide base to be chosen by the President from among
A continuing consumer education program for out-of-school youth and
the nominees submitted by the various consumer groups in the
adults shall likewise be developed and undertaken.
Philippines;
The consumer education program shall include information regarding:
f)​ two (2) representatives from business/industry sector to be
a)​ the consumer as a responsible member of society and his
chosen by the President from among the nominees submitted
responsibility to develop:
by the various business organizations.
1)​ critical awareness which is the responsibility to be
alert and questioning about the use of and price and
Article 150. Chairman; Functions. – The Council shall be headed quality of goods he uses;
and presided by a Chairman who shall be elected by the members from 2)​ assertiveness which is the responsibility to assert
among themselves. He shall establish, with the concurrence of the himself and act so he is assured of a fair deal, aware
Council, the policies, procedures and standards to govern the

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that for as long as he remains to be a passive Article 160. Consumer Arbitration Officers. – The concerned
consumer he will continue to be exploited; Department Secretaries shall appoint as many qualified consumer
3)​ social concern which is the responsibility to be arbitration officers as may be necessary for the effective and efficient
aware of the impact of his consumption on other protection of consumer rights: Provided, however, That there shall be not
citizens, especially the disadvantaged; and more than ten (10) consumer arbitration officers per province, including
4)​ environmental awareness which is the responsibility the National Capital Region.
to understand the environmental consequences of
his consumption, recognizing his individual and
Article 161. Consumer Arbitration Officers; Qualifications.
social responsibility to conserve natural resources
– The consumer arbitration officer must be a college graduate with at
for future generations;
least three (3) years experience in the field of consumer protection and
b)​ consumer rights; and
shall be of good moral character.
c)​ practical problems the consumer faces in daily life.

Article 155. Concerned Departments, Powers and Duties Article 162. Arbitration Officers; Jurisdiction. – The consumer
arbitration officers shall have original and exclusive jurisdiction to
Under Existing Laws. – The concerned departments shall continue mediate, conciliate, hear and adjudicate all consumer complaints,
to exercise the powers and duties provided to them under existing laws, Provided, however, That this does not preclude the parties from pursuing
unless repealed or modified accordingly. the proper judicial action.

Article 156. Consumer Participation. – The Departments shall Article 163. Investigation Procedure. –
establish procedures for meaningful participation by consumers or a)​ The consumer arbitration officer shall conduct hearings on any
consumer organizations in the development and review of department complaint received by him or referred by the Council.
rules, policies and programs. Such procedures shall include provisions b)​ Parties to the case shall be entitled to notice of the hearing,
for a forum, where consumers can express their concerns and and shall be informed of the date, time and place of the same.
recommendations to decision makers. The departments shall exert A copy of the complaint shall be attached to the notice.
efforts to inform consumers of pending proceedings where their c)​ The department shall afford all interested parties the
participation is important. opportunity to submit a statement of facts, arguments, offers
of settlements or proposals of adjustments.
Article 157. Advisory Services. – The departments shall render d)​ The Consumer arbitration officer shall first and foremost
advisory services upon request. The technical and legal assistance shall ensure that the contending parties come to a settlement of the
be made available to consumers and their organizations and to the case.
general public. e)​ In the event that a settlement has not been effected, the
Mediation officer may now proceed to formally investigate,
Article 158. Consumer Program Reforms. – Each concerned hear and decide the case.
Department shall formulate and develop a consumer program consonant f)​ The Consumer arbitration officer may summon witnesses,
with the objectives of its charter or the applicable laws which program administer oaths and affirmations, issue subpoena and
shall embody the standards set forth in Sections 156 and 157 of this Act. subpoena duces tecum, rule upon offers of proof and receive
Copies of these program shall be furnished the Council. The Executive relevant evidence, take or cause deposition to be taken
Director shall, among his other functions, monitor and coordinate the whenever the ends of justice would be served thereby, regulate
implementation by the concerned agencies of their respective consumer the course of the hearing, rule on any procedural request or
programs. similar matter and decide the complaint.
After the close of the fiscal year, the Council shall submit to Congress In hearing the complaint, the mediation officer shall use every and all
and the Office of the President, a full report on the progress of the reasonable means to ascertain the facts in each complaint speedily and
implementation of consumer programs. objectively without regard to strict rules of evidence prevailing in suits
before courts. The complaints shall be decided within fifteen (15) days
from the time the investigation was terminated.
CHAPTER III
CONSUMER COMPLAINTS Article 164. Sanctions. – After investigation, any of the following
Article 159. Consumer Complaints. – The concerned department administrative penalties may be imposed even if not prayed for in the
may commerce an investigation upon petition or upon letter-complaint complaint:
from any consumer: Provided, That, upon a finding by the department of a)​ the issuance of a cease and desist order, Provided, however,
prima facie violation of any provisions of this Act or any rule or regulation That such order shall specify the acts that respondent shall
promulgated under its authority, it may motu proprio or upon verified cease and desist from and shall require him to submit a report
complaint commerce formal administrative action against any person of compliance therewith within a reasonable time;
who appears responsible therefor. The department shall establish b)​ the acceptance of a voluntary assurance of compliance or
procedures for systematically logging in, investigating and responding to discontinuance from the respondent which may include any or
consumer complaints into the development of consumer policies, rules all of the following terms and conditions:
and regulations, assuring as far as practicable simple and easy access 1)​ an assurance to comply with the provisions of this
on the part of the consumer to seek redress for his grievances. Act and its implementing rules and regulations;

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2)​ an assurance to refrain from engaging in unlawful unconscionable act or practice was committed and in case of hidden
acts and practices or unfair or unethical trade defects, from discovery thereof.
practices subject of the formal investigation;
3)​ an assurance to comply with the terms and Article 170. Repealing Clause. – All laws, executive orders, rules
conditions specified in the consumer transaction and regulations or parts thereof which are inconsistent with this Act are
subject of the complaint; hereby repealed or amended accordingly.
4)​ an assurance to recall, replace, repair, or refund the
money value of defective products distributed in
Article 171. Appropriations. – For the initial operating expenses of
commerce;
the National Consumer Affairs Council, the sum of Two million pesos
5)​ an assurance to reimburse the complaint out of any
(P2,000,000.00) is hereby appropriated out of funds of the National
money or property in connection with the complaint,
Treasury not otherwise appropriated. Thereafter, such sums as may be
including expenses in making or pursuing the
necessary to carry out its purpose shall be included in the General
complaint, if any, and to file a bond to guarantee
Appropriations Act.
compliance therewith.
c)​ restitution or rescission of the contract without damages;
d)​ condemnation and seizure of the consumer product found to Article 172. Separability Clause. – If for any reason any article or
be hazardous to health and safety unless the respondent files provision of this Act or any portion thereof or the application of such
a bond to answer for any damage or injury that may arise from article, provision or portion thereof to any person, group or circumstance
the continued use of the product; is declared invalid or unconstitutional, the remainder of this Act shall not
e)​ the imposition of administrative fines in such amount as be affected by such decision.
deemed reasonable by the Secretary, which shall in no case be
less that Five hundred pesos (P500.00) nor more than Three Article 173. Effectivity. – This Act shall take effect thirty (30) days
hundred thousand pesos (P300,000.00) depending on the from the date of its publication in the Official Gazette.
gravity of the offense, and an additional fine of not more than
One thousand pesos (P1,000.00) or each day of continuing Approved: April 13, 1992.
violation.

Article 165. Appeal from Orders. – Any order, not interlocutory of

the Consumer arbitration officer, becomes final and executory unless
appealed to the Department Secretary concerned within fifteen (15) days
from receipt of such order. An appeal may be entertained only on any of
the following grounds:
a)​ grave abuse of discretion;
b)​ the order is in excess of the jurisdiction or authority of the
consumer arbitration officer;
c)​ the order is not supported by the evidence or there is serious
error in the findings of facts.

Article 166. Decision on Appeal. – The Secretary shall decide the

appeal within thirty (30) days from receipt thereof. The decision
becomes final after fifteen (15) days from receipt thereof unless a
petition for certiorari is filed with the proper court.

TITLE VI
TRANSITORY AND FINAL PROVISIONS
Article 167. Relation of the Act to Other Rights. – The
provisions of this Act shall apply notwithstanding any agreement to the
contrary but shall not restrict, limit or derogate from any other rights or
remedies of a consumer under any other law.

Article 168. Application of Laws Enacted Prior to the Act. –

All actions or claims accruing prior to the effectivity of this Act shall be
determined in accordance with the acts, laws, decrees and regulations in
force at the time of the accrual.

Article 169. Prescription. – All actions or claims accruing under

the provisions of this Act and the rules and regulations issued pursuant
thereto shall prescribe within two (2) years from the time the consumer
transaction was consummated or the deceptive or unfair and

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