CONSUME
CONSUM
ER
R
PROTECT
PROTECTI
ION
ON ACT
RA 7394
BASIC
POLICY!
Protects the interest of the
consumers,
promote general welfare,
and
establish standards of conduct for
business and industry.
CONSTRUCTION:
The best interest of
the consumer shall
be considered in the
interpretation and
implementation of the
provisions of this Act,
including its
implementing rules 02
and regulations.
OBJECTIVES
1. protection against hazards to health and
safety;
2. protection against deceptive, unfair and
unconscionable sales acts and practices;
3. provision of information and education to
facilitate sound choice and the proper
exercise of rights by the
consumer;
4. provision of adequate rights and means of
redress; and
5. involvement of consumer representatives in
the formulation of social and economic policies
PROTECTION
AGAINST
DECEPTIVE,
UNFAIR AND
UNCONSCIONABLE
SALES ACTS OR
PRACTICES
Implementing Agency: The
Department of Trade and
Industry (DTI)
DECEPTIVE SALES UNFAIR OR
ACT OR PRACTICE UNCONSCIONABLE
SALES ACT OR
the producer, PRACTICE
manufacturer, supplier or the producer, manufacturer,
seller, through distributor, supplier or seller
concealment, false taking advantage of
representation of fraudulent the inability of the seller to
manipulation, protect its interest
induces a consumer to EXAMPLE:
enter into a sales or lease
EXAMPLE: Persuade a person to sign a
transaction of any
Claiming a benefit that is document or enter
consumer
really notproduct
present inor into agreement when consumer
doesn’t
service.
product. understand the terms
These acts that violates RA 7394
whether it occurs before, during or after the transaction. 03
Chain distribution plans or
pyramid sales schemes
shall NOT be employed in
the sale of consumer
products. Home Solicitation Sales
• Allowed only if a permit
is obtained from DTI
Referral Sales • Only between 9:00 am
General Rule: to 7:00 pm
Shall not be used in the • conducted by a person
sale of consumer products who has proper
Exception: identification and
There is a written authority
undertaking in favor of the • Can be done thru
buyer Prohibited
phone, online
representations:
communication
• Buyer is specially
selected
• Survey, test or
research is being
PENALTIES
FINE
P5,000 TO P10,000*
IMPRISONMENT
NOT MORE THAN 1 YEAR*
*OR BOTH UPON THE DISCRETION
OF THE COURT
The court may likewise grant an injunction restraining the07
conduct constituting the contravention of the provisions of
Deceptive Sales and/or actual damages and such other
orders as it thinks fit to redress injury to the personcaused
LABELING
AND
FAIR
PACKAGING
enforce compulsory labeling, and fair
packaging to enable the consumer to obtain
accurate information as to the nature, quality
and quantity of the contents of consumer
products and to facilitate his comparison of the
value of such products.
Implementing Agency: The
Department of Trade and
Industry (DTI)
PROHIBITED ACTS ON
LABELING AND
PACKAGING:
To display or distribute in
commerce any consumer
product whose package or label
does NOT conform to the
provisions hereof
Prohibition not applicable to:
Wholesale/Retail distributor
except if they:
1. Are engaged in packaging &
labeling 07
2. Prescribe or specify the
manner in which such products
NON-FUNCTIONALLY
SLACK-FILLED:
deemed non-functionally
slack-filled if it is filled to
substantially less than its
capacity for reasons other than
: 1. Protection of the contents
of such package
. 2. Requirement of machines
used for enclosing the contents • Barrier
in such package. • Appearanc
e
3. Inherent characteristics of • Functionali08
package materials or ty
PACKAGING
construction being used. • Sustainabil
Special Packaging of Consumer Products for the
Protection of Children
The concerned department may establish standards
for the special packaging of any consumer product if
it finds that:
a.) the degree or nature of the hazard to children in
the availability of such product by reason of its
packaging, might cause serious physical injury or
illness.
The special packaging to be required by such
standard is technically feasible, practicable and
appropriate for such product
PACKAGING
Label without danger
of being erased or
detached
under ordinary
handling of the
product
LABELING
MINIMUM LABELING REQs THAT MAY
REQUIREMENTS BE REQUIRED BY
• Brand name DTI
• Trademark • whether it is
• business name flammable/infla
• address of the mmable
manufacturer, • direction for use,
importer, repacker of if necessary
the consumer in the • warning of
PH toxicity
• general make or • wattage, voltage
active ingredients or amperes
• net quality of contents• process of
• country of manufacture
manufacture, if used if
imported necessary
LABELING
• state if under licensed 01
from principal
ADDITIONAL LABELING
REQUIREMENTS FOR:
FOO COSMETI CIGARET
D date
expiration CS date
expiration TES
"WARNING"
semi-processed or irritants Cigarette
fully-processed or precautions or Smoking is
ready-to-cook, etc. contra indications Dangerous to
nutritive value, if other that is Your Health.
any deemed necessary Should be in
ingredients used are conspicuous
natural or synthetic
other that is deemed
DRUGS place
necessary The Generics The label may contain the
Act shall apply Philippine Product Standard
Mark if it is certified
LABELING
to have passed the
consumer product standard
prescribed by the concerned
department.
02
MISLABELE
01
D 03
COSMETIC MISLABELED
MISLABELE DRUGS AND
D DEVICES
FOOD “Regulation-making Exemptions”
The Food and Drug Administration (FDA) can issue regulations that
exempt these from labeling requirements.
• FOOD MATERIALS FOR IMMEDIATE CONSUMPTION
• Bulk food materials for further processing or
repackaging
•
PENALTIES
Fine
Food/Cosmetic/ P500 – P20,000
Drug/Device/ Imprisonment
Hazardous 3 months – 2 years
Substance 0r both
Fine
P200 – P5,000
Not any of the
Imprisonment
above
1 month – 1 year
or both
Seizure and Condemnation of Mislabeled Hazardous 07
Substances
PRICE TAG
REQUIREMEN
T
It shall be unlawful to offer any
consumer product for retail sale to
the public without
an appropriate price tag, label or
marking publicly displayed to
indicate the price of each article and
said
products shall not be sold at a price
higher than that stated therein and
without discrimination to all buyers.
MANNER OF REGULATIONS
PLACING PRICE FOR PRICE TAG
TAGS PLACEMENT
• Concerned
• Price tags, labels
or markings must department shall
be written clearly prescribe rules and
regulations for the
• No erasures or visible placement
alterations of any of price tags for
sort of price tags, specific consumer
labels or markings products and
services.
• It should indicate 03
the price of the
consumer product
Lumber
Lumber sold, displayed or
offered for sale to the
public must have a tag or
label with the price and
official wood name.
Small Consumer
Products
If the product is too small
or impractical for a tag, a
price list must be placed
near the display.
VIOLATION
• NOT HAVING A PRICE TAG ON A PRODUCT
AT ALL.
• Having a price tag that is illegible or not
easily visible.
• Selling a product at a price higher than the
price stated on the tag.
• Failing to update price tags when prices
change.
PENALTIES
FINE:
P200 – P5,000
IMPRISONMENT:
1 MONTH – 6 MONTHS
A second conviction shall also carry with it the penalty of revocation
07
of business permit and license
CONSUMER
PRODUCT AND
SERVICE WARRANTY
Implementing Agency: The
Department of Trade and Industry.
Applicable Law on Warranties: The
provisions of the Civil Code on
conditions and warranties shall
govern all contracts of sale with
conditions and warranties.
ADDITIONAL
PROVISIONS ON
WARRANTIES
A. Terms of Express
Warranty
B. Express Warranty –
Effectivity
C. Designation of
Warranties
D. Minimum Standards
for Warranties
E. Duration of
Warranty
F. Breach of Warranty –
WARRANTIES IN THE
SUPPLY OF SERVICES
Quality of Service:
• There is an implied warranty
that the service will be
performed with due care and
skill.
• Materials used must be
reasonably fit for their
intended purpose.
Fitness for a Particular Purpose:
• Seller warrants that the service
and any materials used will be
WARRANTIES IN THE
SUPPLY OF SERVICES
B. Professional Services –
Exemptions
• Accountants, architects,
engineers, lawyers,
veterinarians, optometrists,
pharmacists, nurses,
nutritionists, dietitians,
physical therapists, salesmen,
medical and dental
practitioners, and other
WARRANTIES IN THE
SUPPLY OF SERVICES
C. Guaranty of Service Firms
• Service firms must guarantee:
-Workmanship and
replacement of spare
parts for at least 90 days.
-This guarantee must be
indicated in the
invoices.
PROHIBITED
ACTS
1.Refusing to 3. Removing
Honor a Warranty
Warranty Cards
2.Unreasonable 4. False
Delay Advertising of
Warranties
PENALTIES
Any person who
Fine of P500 –
shall violate the
P5,000 or
provisions of
Imprisonment of
Article 67
3 years to 2
(Conditions and
years, or both
Warranties
governed by the
Fine of P1,000 –
Civil Code)
Prohibited Acts P50,000 or
other than Art. 67 Imprisonment of 1
to 5 years, or
both.
PHILIPPINE
LEMON LAW
Full protection to the
rights of consumers in the
sale of motor vehicles
against business and trade
practices which are
deceptive,
unfair or otherwise inimical
to consumers and the
public interest.
REQUISITES TO INVOKE
LEMON LAW RIGHTS:
1. Brand new motor vehicles
2. Purchased in the Philippines
3. Reported by a consumer to be in
nonconformity with the vehicle’s
manufacturer or distributor’s standards
or specifications
4. Within 12 months from the date of
original delivery to the consumer, or
up to twenty thousand 20,000 kms of
operation after such delivery, whichever
comes first
EXCLUSIONS:
1. Noncompliance by the consumer
of the obligations under the
warranty;
2. Modifications not authorized by
the manufacturer, distributor,
authorized dealer or retailer;
3. Abuse or neglect of the brand-new
motor vehicle; and
4. Damage to the vehicle due to
accident or force majeure
PROCEDURES:
REPAIR ATTEMPTS:
• Within the Lemon Law
rights period, at least 4
repair attempts must be
made for the same issue.
• If the issue remains
unresolved, the
consumer may invoke
Lemon Law rights. NOTICE OF
AVAILMENT
• Before availing of any
remedy, the consumer must
send a written notice to:
1. Report the unresolved
complaint.
2. Declare their intention
to invoke
PROCEDURES:
FINAL REPAIR ATTEMPT & LEGAL
• The consumer
ACTION must
return the vehicle for a
final repair attempt at
the original dealer.
• If unresolved, the
consumer may file a
complaint with the DTI.
DEEMED SUCCESSFUL
REPAIR
• If the vehicle is not returned
for repair within 30 days of
release after a repair
attempt, the repair is deemed
successful.
• If the issue persists beyond
30 days but within the Lemon
Law rights period, the
COMPENSATION FOR
NON-USE
While the vehicle is under repair,
consumer shall be provided:
• Reasonable daily transportation
allowance
LOWER between:
- 20% per annum deduction
from thedisagreement
• Any price on this matter
- (Traveled
shall be resolved kms x Price)
by the DTI /
100,000 kms
REMEDIES FOR
DISPUTE RESOLUTION
The DTI has
exclusive and
original
jurisdiction over DISPUTE
all disputes RESOLUTION
under the Lemon MECHANISMS
1.Mediatio
Law.
n
2.Arbitratio
n
3.Adjudicat
DISPUTE
RESOLUTION
mechanisms
1.Mediation - all disputes
shall be settled within 10
working days
2.Arbitration - if mediation
fails, both parties may opt
for arbitration.
3.Adjudication - shall in no
case exceed 20 working
days
REMEDIES OF
CONSUMER:
• Replacement of the motor
vehicle similar or
comparable to motor
vehicle
• Accept the return of motor
vehicle and pay the
The DTI Secretary
consumer must
the decide
purchase within
30 days from the receipt thereof.
price plus collateral charger
DISCLOSURE ON
RESALE
Before reselling a returned motor
vehicle, the manufacturer, distributor,
authorized dealer, or retailer must
disclose in writing:
1.That the vehicle was returned.
2.The reason for return (nature of
nonconformity).
Liability Ends: Once the vehicle is
3.The condition of the vehicle at the
resold to the first
time of transfer.purchaser, the
seller’s responsibility ceases.
PENALTY FOR NON-
DISCLOSURE
• Minimum fine of P100,000 in
damages to the affected buyer.
• Possible civil and/or criminal
liability under existing laws.
THAN
K YOU
