Summary Notes: The Consumer Act of the Philippines (R.A. No.
7394)
Purpose and Policy
• Enacted to protect the interests of consumers, promote general welfare, and establish
standards of conduct for business and industry.
• Encourages consumer education, honest trade practices, and fair competition.
• Ensures that consumers' rights are respected in all aspects of commerce.
Scope
• Applies to all consumer products and services in the Philippines.
• Covers both the public and private sectors involved in manufacturing, importing,
distributing, and selling products or services.
Consumer Rights Under the Law
1. Right to Basic Needs
2. Right to Safety
3. Right to Information
4. Right to Choose
5. Right to Representation
6. Right to Redress
7. Right to Consumer Education
8. Right to a Healthy Environment
Key Provisions of the Consumer Act
Consumer Product Quality and Safety
• Products must meet minimum safety and quality standards.
• Labels must include:
Brand name
Ingredients/contents
Net weight/volume
Expiration/manufacture date
Manufacturer’s details.
Deceptive, Unfair, and Unconscionable Sales Acts
• Prohibits misleading advertising and false or deceptive representations about a product
or service.
• Prohibits bait-and-switch tactics and fake "limited time offers."
Weights and Measures
• Standardizes and monitors weights and measuring devices used in trade.
• Violations include the use of tampered scales or false weights.
Product Labeling and Packaging
• Requires accurate and clear labeling in English or Filipino.
• Food, drugs, cosmetics, and hazardous products have special labeling rules.
• Non-compliant products may be recalled or banned.
Consumer Product and Service Warranties
• Ensures that products sold must:
o Be free from defects.
o Match descriptions and samples.
• Includes repair, replacement, or refund options within the warranty period.
Regulation of Practices in Credit Transactions
• Protects consumers from abusive collection practices.
• Requires disclosure of finance charges, interest rates, and payment terms.
• Ensures fair and honest lending practices.
Enforcement Agencies
• Department of Trade and Industry (DTI) — General consumer products.
• Department of Health (DOH) — Food, drugs, cosmetics, and devices.
• Department of Agriculture (DA) — Agricultural products.
• Bangko Sentral ng Pilipinas (BSP) — Financial products and services.
Penalties
• Fines, product recalls, and imprisonment depending on the offense.
• Both civil and criminal liabilities may apply.
Key Takeaways
• The law protects consumers against fraudulent, abusive, and unfair business practices.
• Proper labeling, safe products, and honest marketing are the cornerstones of this Act.
• Empowers consumers to complain, seek redress, and be informed.
• Businesses must observe fairness, honesty, and full disclosure.