CONSUMER ACT OF THE PHILIPPINES RA 7394

processed for another person who

attaches his own brand name to the
❖ Enacted April 13, 1992
consumer products
❖ Article 2. Declaration of Basic Policy. – It is the
e) Mislabeled hazardous substance - any
policy of the State to protect the interests of
hazardous substance intended, or
the consumer, promote his general welfare
packaged in a form suitable, for use in
and to establish standards of conduct for
households, especially by children, the
business and industry. Towards this end, the
packaging or labeling of which is in
State shall implement measures to achieve the
violation of the special packaging
following objectives:
regulation issued by the Department of
Health
i. Protection against hazards to health and
f) Device - an instrument, apparatus,
safety;
ii. Protection against deceptive, unfair and implement, machine, contrivance, implant,
unconscionable sales acts and practices; in vitro reagent, or other similar or related
iii. Provision of information and education to article, including any component, part or
facilitate sound choice and the proper accessory.
exercise of rights by the consumer; g) Distributor - any person to whom a
iv. Provision of adequate rights and means of consumer product is delivered or sold for
redress; and purposes of distribution in commerce,
v. Involvement of consumer representatives except that such term does not include a
in the formulation of social and economic manufacturer or retailer of such product.
policies. h) Drugs - articles recognized in the current
official United States Pharmacopoeia-
❖ Article 4. Definition of Terms. – For purposes of
National Formulary, official Homeopathic
this Act, the term:
Pharmacopoeia of the United States,
official National Drug Formulary, or any
a) Banned hazardous Substance - any toy or
supplement to any of them; and (2) articles
other articles intended for use by children,
intended for use in the diagnosis, cure,
which are hazardous per se, or which bear
mitigation, treatment, or prevention of
or contain substances harmful to human
disease in man or other animals; and (3)
beings
articles (other than food) intended to
b) Consumer - a natural person who is a
affect the structure or any function of the
purchaser, lessee, recipient or prospective
body of man or animals
purchaser, lessor or recipient of consumer
i) Hazardous substance - Any substance or
products, services or credit.
mixture of substances which is toxic,
c) Generic name - identification of drugs and
corrosive, irritant, a strong sensitizer,
medicines by their scientifically and
flammable or combustible, or generates
internationally recognized active
pressure through decomposition, heat or
ingredients or by their official generic name
other means, if such substance or mixture
as determined by the Bureau of Food and
or substances any cause substantial injury
Drugs of the Department of Health.
or substantial illness during or as a
d) Manufacturer - any person who
proximate result of any customary or
manufactures, assembles or processes
reasonably foreseeable ingestion by
consumer products, except that if the
children.
goods are manufactured, assembled or
 j) Sales promotion - techniques intended for one month and disseminated to inform consumers
broad consumer participation which and industries.
contain promises of gain such as prizes, in
Article 9 – Effectivity of Rules
cash or in kind, as reward for the purchase
of a product, security, service or winning in ▪ Rules must take effect within 90 days (unless
contest, game, tournament and other delayed for public interest).
similar competitions ▪ Manufacturers cannot stockpile products to
k) Supplier - a person, other than a consumer, evade compliance.
who in the course of his business, solicits,
offers, advertises, or promotes the Article 10 – Unsafe Products
disposition or supply of a consumer • If a product is unsafe, the department may
product or who other than the consumer, order recall, prohibition, or seizure after
engages in, enforces, or otherwise due notice and hearing.
participates in a consumer transaction • In urgent cases, immediate recall or ban
may be ordered, with a hearing within 48
TITLE II. CONSUMER PRODUCT QUALITY AND
hours.
SAFETY

❖ Article 6. Implementing Agencies. – The Article 11 – Amendments and Remedies

provisions of this Article and its implementing ▪ Unsafe or defective products:
rules and regulations shall be enforced by: manufacturers must notify the public and
retailers.
a) the Department of Health with respect to food,
▪ Remedies include:
drugs, cosmetics, devices and substances;
o Repairing the product.
b) the Department of Agriculture with respect to o Replacing it with a compliant
products related to agriculture, and; product.
o Refunding the purchase price (less
c) the Department of Trade and Industry with use).
respect to other consumer products not specified o Paying reasonable damages.
above.

❖ Article 7 – Consumer Product Standards may Article 12 – Amendments to Rules

cover: ▪ Changes to safety rules take effect within
90 days, unless extended for good cause
▪ Product design, content, packaging.
▪ Kind, class, weight, grade, or material. Article 13 – New Products
▪ Testing methods and codes. ▪ Departments must publish a list of new
consumer products with descriptions.
▪ Storage and transport precautions.
Article 14 – Certification
▪ Safety labels and warnings.
▪ Products must be inspected and certified
Committees of government, business, and consumer before being sold.
reps may draft standards if none exist. ▪ Philippine Standard (PS) Mark is granted
to products that comply.
Article 8. Publication of Standards - New standards
must be published in at least two newspapers for
Article 15 – Imported Products b) a consumer product or service is of a particular
▪ Refused entry if: standard, quality, grade, style, or model when in
fact it is not;
o Not compliant with standards.
c) a consumer product is new, original or unused,
o Unsafe, substandard, or defective. when in fact, it is in a deteriorated, altered,
o Banned in its country of origin. reconditioned, reclaimed or second-hand state;
▪ Importers may modify products under d) a consumer product or service is available to the
supervision to comply. consumer for a reason that is different from the
▪ Non-compliant goods must be exported or fact;
e) a consumer product or service has been supplied
destroyed at the importer’s expense. in accordance with the previous representation
when in fact it is not;
Article 16 – Products for Export f) a consumer product or service can be supplied in
▪ Safety rules don’t apply if the product is a quantity greater than the supplier intends;
exclusively for export and labeled as such, g) a service, or repair of a consumer product is
needed when in fact it is not;
provided it is not distributed locally.
h) a specific price advantage of a consumer product
exists when in fact it does not;
Article 17 – Powers of Departments i) the sales act or practice involves or does not
▪ Administer and enforce rules. involve a warranty, a disclaimer of warranties,
▪ Research and set product standards. particular warranty terms or other rights,
remedies or obligations if the indication is false;
▪ Inspect and test products.
and
▪ Collect fees for certification and testing. j) the seller or supplier has a sponsorship, approval,
▪ Keep records of product-related or affiliation he does not have.
deaths/injuries.
▪ Accredit private organizations and labs to Article 51. Deceptive Sales Act or Practices By
help monitor compliance. Regulation. – The Department shall, after due
notice and hearing, promulgate regulations
TITLE III. PROTECTION AGAINST DECEPTIVE, declaring as deceptive any sales act, practice or
UNFAIR ANDUNCONSCIONABLE SALES ACTS OR technique which is a misrepresentation of facts
PRACTICES other than these enumerated in Article 50.

Article 52 – Unfair or Unconscionable Sales Act or

Article 50. Prohibition Against Deceptive Sales Acts
Practice
or Practices. – A deceptive act or practice by a seller
or supplier in connection with a consumer ▪ Any unfair/unconscionable practice is
transaction violates this Act whether it occurs prohibited before, during, or after a
before, during or after the transaction. An act or consumer transaction.
practice shall be deemed deceptive whenever the ▪ It is considered unfair/unconscionable if the
producer, manufacturer, supplier or seller, through seller takes advantage of:
concealment, false representation of fraudulent o consumer’s weakness (illiteracy,
manipulation, induces a consumer to enter into a ignorance, disability, etc.),
sales or lease transaction of any consumer product o lack of time or bad conditions,
or service. o making the consumer enter into a
transaction that is grossly one-sided
a) a consumer product or service has the or against their interest.
sponsorship, approval, performance,
characteristics, ingredients, accessories, uses, or
benefits it does not have;
 ▪ Circumstances to consider: a) The buyer is “specially selected.”
b) A “survey, test, or research” is being
➢ Consumer cannot reasonably protect conducted.
themselves (e.g., can’t understand c) It’s a special/limited offer for a few people
language of agreement). only.
➢ Price is grossly higher than market value.
➢ Consumer does not receive a substantial
benefit from the product/service. Article 59 – Referral Sales
➢ Seller knows consumer has no ▪ Referral selling is prohibited, unless:
reasonable ability to pay in full. o Seller signs a written undertaking
➢ Transaction is excessively one-sided in promising a specific
favor of the seller. compensation/benefit for each
successful sale made through the
buyer’s referral.
Article 53 – Chain Distribution Plans / Pyramid
Schemes Article 60 – Penalties
▪ Pyramid schemes are illegal in selling ▪ Violations: Fine ₱500 – ₱10,000, or
consumer products. imprisonment 5 months – 1 year, or both.
▪ Court may also grant:
Article 54 – Home Solicitation Sales (Permit) o Injunction (to stop the act),
▪ No home solicitation (house-to-house o Actual damages,
selling) without a permit from the o Other orders to correct the harm
Department. caused.
▪ Permit may be denied/suspended/revoked
after due notice and hearing. PRODUCT SERVICE AND WARRANTIES

Article 55 – Time of Home Solicitation Types of Warranties

▪ Can only be done between 9:00 AM and
7:00 PM on working days. 1. Express Warranty: This is a written
▪ Exceptions: if consumer previously agreed guarantee provided by the manufacturer
to another time. or seller at the time of purchase, detailing
the conditions and duration of the
Article 56 – Who May Conduct Home Solicitation warranty.
▪ Only by persons with proper identification
2. Implied Warranty: This is an unwritten
and authority from their guarantee that the product will perform as
company/principal. expected and is free from defects. Implied
warranties are automatically included with
Article 57 – Receipts for Home Solicitation the purchase of goods under Philippine
▪ All sales made must be properly receipted law.
according to law.
Rights of the Consumer
Article 58 – Prohibited Representations in Home
Under the Consumer Act, consumers have the right
Solicitation
to:
Sellers must not mislead buyers by claiming that: 1. Repair: If the product has defects or
malfunctions within the warranty period,
 the consumer can have it repaired at no ❖ Retailer’s Subsidiary Liability
additional cost. ▪ If both the manufacturer and distributor
2. Replacement: If the product cannot be fail to honor the warranty → retailer is
repaired, the consumer can request a subsidiarily liable.
replacement. This replacement must be of ▪ Retailer must shoulder expenses to fulfill
the same model or a similar model of equal the warranty.
value.
▪ However, retailer can later recover costs
3. Refund: If repair or replacement is not from the distributor or manufacturer.
possible, the consumer can ask for a full
refund.
❖ Enforcement of Warranty
Express Warranty - issued by a manufacturer,
producer, or importer becomes effective • Consumer needs only to present:
immediately upon sale of the product.
o Warranty card OR official receipt,
together with the product → to
❖ Sales Report
the immediate seller.
▪ Distributors must report all sales of
• No other documents may be required.
products covered by a warranty to the
manufacturer/producer/importer within 30 • Scenarios:
days from purchase (unless another o If bought directly from
arrangement is agreed). manufacturer’s showroom/factory
▪ Report must include: → warranty honored immediately.
o Date of purchase o If bought from distributor →
o Product model distributor must honor warranty.
o Serial number
o If bought from retailer → retailer
o Buyer’s name and address
must process claim with
▪ This report acts as the warranty distributor at no extra cost to the
registration. consumer.
▪ Meaning: once reported, the manufacturer Minimum Standards for Warranties
is directly liable under its warranty.
For a warrantor (manufacturer, producer,
importer, distributor, or seller) to comply with the
❖ Failure to Report
minimum requirements of a valid warranty:
• If distributor fails to report sales to the
1. Obligation to Remedy Defects - The
manufacturer/importer:
warrantor must repair or remedy any
o Manufacturer/importer is relieved of defect, malfunction, or non-conformity in
liability under the warranty. the consumer product within a reasonable
o BUT → the distributor becomes time and without charging the consumer.
personally liable to honor the 2. Consumer’s Right to Refund or
warranty. Replacement - If, after a reasonable
o Manufacturer must still make good number of repair attempts, the product
on the warranty but at the still has the same defect or malfunction,
distributor’s expense. the consumer may choose between:
 a) A refund of the purchase price; or CHAPTER IV. LABELLING AND FAIR PACKAGING
b) A replacement of the product or
part free of charge. Under the Consumer Act, businesses must ensure
that labels on consumer products bear truthful and
3. Exception sufficient information. The essential details
o The warrantor is not liable if the typically include:
defect, malfunction, or failure was a) Brand or Trade Name: The brand name
caused by unreasonable or improper under which the product is sold.
use of the product by the consumer. b) Generic or Common Name: Especially for
drugs and certain goods, the generic name
Duration of Warranty must be displayed.
c) Manufacturer Information: Name and
1. Express Warranty Period - The seller and address of the manufacturer, packer, or
consumer may agree on the period during distributor.
which the express warranty is enforceable. d) Net Quantity/Weight/Volume: The
2. Express & Implied Warranties Together - If accurate measure of the product content.
an express warranty comes with an implied e) List of Ingredients or Components:
warranty on merchantability (meaning the Particularly important for food,
product is fit for its ordinary purpose), both pharmaceuticals, cosmetics, and similar
warranties will have the same duration. products to inform consumers about
3. Other Implied Warranties - For new product composition.
consumer products, any other implied f) Production and Expiry Dates: For
warranty (other than merchantability) must perishables, food, medicines, and
last not less than 60 days and not more than cosmetics, clearly indicating the
1 year from the date of sale. production date, “Best Before” date, or
expiration date is crucial.
Breach of Warranties g) Country of Origin: For imported goods,
labeling must disclose the source country.
1. Breach of Express Warranty - If an express
warranty is violated, the consumer has two Article 81 – Price Tag Requirement
choices: ▪ All consumer products for retail sale
▪ Repair of the product, which must be must have a price tag, label, or marking
done within 30 days by the warrantor visibly displayed.
or authorized representative ▪ Products cannot be sold at a higher
(extendable only for reasons beyond price than what is indicated and must
their control); or be sold without discrimination to all
▪ Refund of the purchase price, subject buyers.
to a deduction for the value of the
▪ Special rule for lumber: The price tag
consumer’s use of the product before
must include both the price and the
discovering the defect.
official name of the wood.
2. Breach of Implied Warranty - The consumer ▪ Exception for very small items: If
has the following remedies: placing an individual price tag is
▪ Keep the goods and claim damages; or impractical, a price list posted at the
▪ Reject the goods, cancel the contract, nearest display point is acceptable.
and recover the purchase price
already paid, including damages.
Article 82 – Manner of Placing Price Tags
▪ Price tags must be clear and legible. 1. Expiry/Expiration Date – ensures
▪ Prices must be written in pesos and consumers do not use expired products
centavos. that may cause harm.
2. Irritant Warning – disclosure if the
▪ Tags must indicate the price per unit of
cosmetic may cause skin, eye, or other
the consumer product.
irritation.
3. Precautions/Contraindications –
Article 83 – Regulations for Price Tag instructions or warnings about safe use
Placement (e.g., not for sensitive skin, avoid contact
▪ The concerned government with eyes, not for children).
department (usually DTI) issues rules 4. Other Requirements – any additional
on where and how price tags must be labeling standards that the concerned
placed for specific products and department (e.g., FDA/DOH) may find
services. necessary and reasonable.
▪ No erasures, tampering, or alterations
on price tags, labels, or markings are a) General Violations (Except Articles 81–83)
• Penalty:
allowed.
o Fine: ₱500 – ₱20,000, or
o Imprisonment: 3 months – 2 years,
Article 84. Additional Labeling Requirements or
for Food. – The following additional labeling o Both, at the court’s discretion.
requirements shall be imposed by the • Exception (if the product is not food,
concerned department for food: cosmetic, drug, device, or hazardous
1. Expiry/Expiration Date – to protect substance):
consumers from consuming unsafe or o Fine: ₱200 – ₱5,000, or
spoiled food. o Imprisonment: 1 month – 1 year, or
2. Processing Status – whether the food is: o Both, at the court’s discretion.
o semi-processed,
o fully processed,
o ready-to-cook,
o ready-to-eat, b) Violations of Articles 81–83 (Price Tag
o prepared food, or Requirements)
o just a plain mixture. • First offense:
3. Nutritive Value – nutritional information, if o Fine: ₱200 – ₱5,000, or
applicable (e.g., calories, protein, o Imprisonment: 1 month – 6
vitamins). months, or
4. Type of Ingredients – whether the o Both, at the court’s discretion.
ingredients used are natural or synthetic. • Second offense:
5. Other Requirements – any additional o Same penalties as above, plus
labeling standards that the concerned revocation of business permit and
department (e.g., DOH or DTI) may find license.
necessary and reasonable for consumer
protection.

Article 87. Additional Labeling Requirements for

Cosmetics. – The following additional requirements
may be required for cosmetics:
CONSUMER RIGHTS ▪ Nonconformity – Defect/condition that
substantially impairs the vehicle’s use,
1. Right to Basic Needs: The right to access value, or safety and cannot be repaired.
essential goods and services necessary for
survival and well-being. Coverage
2. Right to Safety: Protection from products
▪ Applies to brand new motor vehicles
or services that pose risks to health and
bought in the Philippines.
life.
3. Right to Information: The right to receive ▪ Excludes issues due to:
adequate and accurate information about o Consumer’s noncompliance with
products and services to make informed warranty terms
decisions.
o Unauthorized modifications
4. Right to Choose: The freedom to select
from a variety of products and services at o Abuse/neglect
competitive prices. o Accidents or force majeure
5. Right to Representation: The right to be
heard and to have consumer interests Process for Availing Rights
represented in policy-making bodies. 1. Repair Attempts – Vehicle must undergo at
6. Right to Redress: The right to have fair least 4 repair attempts for the same
compensation for loss or injury caused by complaint within the Lemon Law Rights
defective products or misrepresentation. Period.
7. Right to Consumer Education: Access to 2. Notice – Consumer must notify in writing
knowledge and skills to become a well- the manufacturer, distributor, dealer, or
informed consumer. retailer about unresolved issues.
8. Right to a Healthy Environment: The right
to live and work in a healthy and safe 3. Final Repair Attempt – The
environment. seller/manufacturer has one last chance to
fix the defect.
LEMON LAW – RA 10642 o If unresolved → consumer may file
a complaint with the Department
Purpose of Trade and Industry (DTI).
• Protects consumers who purchase brand
o If repaired but defect reappears
new motor vehicles against defects or
within 30 days → consumer may
conditions (“nonconformities”) that affect
still invoke rights.
the vehicle’s use, value, or safety.
Note: While under repair, the consumer is entitled
Terminologies to transportation allowance or a service vehicle.
▪ Brand New Motor Vehicle – Constructed Dispute Resolution (Handled by DTI)
from new parts, covered by
• Mediation – Negotiation and settlement
manufacturer’s warranty, and never
encouraged within 10 working days.
previously sold or registered.
▪ Consumer – Any person or entity buying a • Arbitration – Optional, if both parties
brand new vehicle (cash or credit). agree.
▪ Lemon Law Rights Period – 12 months • Adjudication – DTI issues binding decision
from delivery OR first 20,000 km of use, within 20 working days.
whichever comes first.
Remedies if Defect Confirmed:
1. Replacement – With a comparable brand
new vehicle.
2. Repurchase – Return of vehicle + refund of
purchase price + collateral charges (minus
“reasonable allowance for use”).
Reasonable Allowance for Use:
▪ 20% per year of use, or
▪ (Kilometers traveled × Purchase Price) ÷
100,000
Other Key Provisions
▪ Disclosure on Resale – Returned vehicles must
be properly disclosed to future buyers.
▪ Penalty – ₱100,000 minimum damages for
failure to disclose resale of a returned (lemon)
vehicle.
▪ DTI – Has exclusive jurisdiction over disputes
and issues implementing rules.