In case the violation is committed by, or in the interest of a 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. u) "Cosmetics" means (1) articles intended to be rubbed, poured, sprinkled or sprayed on, introduced into or otherwise applied to the human body or any part thereof for cleansing, beautifying, promoting attractiveness, or altering the appearance, and (2) article intended for use as a component of any such article except that such term shall not include soap. – The Council shall appoint an Executive Director who shall assist the Chairman and act as Secretary of the Council. – The concerned department may, after due notice and hearing, suspend the publication and dissemination of any information accompanying a sales promotion campaign, if it finds the campaign to be in violation of the provisions of this Chapter or its implementing rules and regulations. Article 160. br) "Standard" means a set of conditions to be fulfilled to ensure the quality and safety of a product;cralaw. – The State shall promote and encourage fair, honest and equitable relations among parties in consumer transactions and protect the consumer against deceptive, unfair and unconscionable sales acts or practices. Home Solicitation Sales; When Conducted. c) Any director, officer or agent of a corporation who shall 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 subject to penalties to which that corporation may be subject.chanroblesvirtuallawlibrary. Penalties. –. Special Claims. – A home solicitation sale shall not represent that: a) the buyer has been specially selected;cralaw, b) a survey, test or research is being conducted; or, c) the seller is making a special offer to a few persons only for a limited period of time.chanroblesvirtuallawlibrary. aw) "New Drugs" mean (1) any drug the composition of which is such that said drug is not generally recognized among experts qualified by scientific training and experience to evaluate the safety, efficacy and quality of drugs as safe, efficacious and of good quality for use under the conditions prescribed, recommended, or suggested in the labeling thereof; or (2) any drug the composition of which is such that said drug, as a result of its previous investigations to determine its safety, efficacy and good quality for use under certain conditions, has become so recognized but which has not, otherwise than in such investigations, been used to a material extent or for a material time under new conditions. o) "Consumer credit" means any credit extended by a creditor to a consumer for the sale or lease of any consumer product or service under which part or all of the price or payment therefor is payable at some future time, whether in full or in installments. – The concerned department may promulgate regulations exempting from any labeling requirements of this Act food, cosmetics, drugs or devices which are, in accordance with the practice of trade, to be processed, labeled or repacked in substantial quantities at establishments other than those where originally processed, labeled or packed on condition that such food, cosmetics, drugs or devices are not adulterated or mislabeled under the provisions of this Act and other applicable laws upon approval from such processing, labeling and repacking establishments. – An unfair or unconscionable sales act or practice by a seller or supplier in connection with a consumer transaction violates this Chapter whether it occurs before, during or after the consumer transaction. – This Act shall be known as the "Consumer Act of the Philippines." 7394). A second conviction under this paragraph shall also carry with it the penalty or revocation of his business permit and license. f) Breach of warranties. Regulation of Unprocessed Food. – Before opening any account under an open-end consumer credit plan, the creditor shall disclose, to the extent applicable, the following information: a) the conditions under which a finance charge may be imposed, including the time period, if any, within which any credit extended may be repaid without incurring a finance charge;cralaw, b) the method of determining the balance upon which a finance charge may be imposed;cralaw, c) the method of determining the amount of the finance charges, including any minimum or fixed amount imposed as a finance charge;cralaw, d) where one or more periodic rates may be used to compute a finance charge, each such rate, the range of balances to which it is applicable, and the corresponding simple annual rate;cralaw, e) the conditions under which the creditor may impose a security lien and a description of the goods to which such lien may attach.chanroblesvirtuallawlibrary. – Service firms shall guarantee workmanship and replacement of spare parts for a period not less than ninety (90) days which shall be indicated in the pertinent invoices. A: Pursuant to the Implementing Rules and Regulations of R.A. 7394, or the Consumer Act of the Philippines, specifically Title III, Chapter 1, Rule 2, Section 7 of Department Administrative Order (DAO) No. 2) on which any statement required under clause 1) of this paragraph is located prominently in bright red and orange color with a black symbol in contrast typography, layout or color with the other printed matters on the label. Article 88. – It shall be the duty of the State: a) to develop and provide safety and quality standards for consumer products, including performance or use-oriented standards, codes of practice and methods of tests;cralaw, b) to assist the consumer in evaluating the quality, including safety, performance and comparative utility of consumer products;cralaw, c) to protect the public against unreasonable risks of injury associated with consumer products;cralaw, d) to undertake research on quality improvement of products and investigation into causes and prevention of product related deaths, illness and injuries;cralaw, e) to assure the public of the consistency of standardized products.chanroblesvirtuallawlibrary. Article 94. – Price tags, labels or markings must be written clearly, indicating the price of the consumer product per unit in pesos and centavos. Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: TITLE I. A consumer product bears a private label if (1) the product or its container is labeled with a brand or trademark of a person other than its manufacturer; or (2) the brand or trademark of the manufacturer of such product does not appear on such label. The expenses for such supervision shall be paid by the person obtaining release of the hazardous substance under bond. All such relabeling or other action pursuant to such authorization shall be in accordance with regulations and shall be under the supervision of an officer or employee of the Commission of Customs and the Department. For purposes of this paragraph (e) the term "hair dye" shall not include eyelash dyes or eyebrow dyes. Ignorance of Quality Imperfection. Prohibited Acts. Article 134. b) 1) Drugs intended for use by man which: (ii) because of their toxicity or other potentiality for harmful effect, or method of their use is not safe for use except under the supervision of practitioner licensed by law to administer such drug;cralaw, (iii) are new drugs whose applications are limited to investigational use; shall be dispensed only (a) upon written prescription of a practitioner licensed by law to administer such drug, or (b) upon an oral prescription of such practitioner which is reduced promptly to writing and filed by the pharmacist, or (c) by refilling any such written or oral prescription if such refilling is authorized by the prescriber either in the original prescription or by oral order which is reduced promptly to writing and filed by the pharmacist. Article 13. Price Tag Requirement. – The Departments shall establish procedures for meaningful participation by consumers or consumer organizations in the development and review of department rules, policies and programs. Once the record deleted cannot be retrived. LIABILITY FOR PRODUCT AND SERVICE. Article 96. For this purpose, the manufacturer shall be obligated to make good the warranty at the expense of the distributor. Article 18. It may likewise conduct an information campaign through other means deemed effective to ensure the proper guidance of consumers, businesses, industries and other sectors concerned. Article 144. a) The consumer arbitration officer shall conduct hearings on any complaint received by him or referred by the Council. Required Disclosure on Open-end Credit Plan. Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:: TITLE I. 7394 THE CONSUMER ACT OF THE PHILIPPINES 2. – The legal guarantee of product or service adequacy does not require an express instrument or contractual exoneration of the supplier being forbidden. The order shall state the findings upon which it is based. – 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 health of the consumer. CHAPTER VII – The regulations promulgated under the preceding articles shall take effect fifteen (15) days after its publication in a newspaper of general circulation but the Department may stay such effectivity if, after issuance of such order, a hearing is sought by any person adversely affected by such order. Determination of Simple Annual Rate. Declaration of Policy. Legal Guarantee of Adequacy. In the case of a retailer other than the distributor, the former shall take responsibility without cost to the buyer of presenting the warranty claim to the distributor in the consumer's behalf. Article 49. s) "Consumer transaction" means (1) (i) a sale, lease, assignment, award by chance, or other disposition of consumer products, including chattels that are intended to be affixed to land, or of services, or of any right, title, or interest therein, except securities as defined in the Securities Act and contracts of insurance under the Insurance Code, or (ii) a grant of provision of credit to a consumer for purposes that are primarily personal, family, household or agricultural, or (2) a solicitation or promotion by a supplier with respect to a transaction referred to in clause (1). Article 87. However, if the damage is caused by a component or part incorporated in the product or service, its manufacturer, builder or importer and the person who incorporated the component or part are jointly liable. 7394) was passed in 1992. The imposition of any of the penalties herein provided is without prejudice to any liability incurred under the warranty or guarantee. Thereafter, such sums as may be necessary to carry out its purpose shall be included in the General Appropriations Act. Article 79. – A food shall also be deemed mislabeled: a) if its labeling or advertising is false or misleading in any way;cralaw, b) if it is offered for sale under the name of another food;cralaw, c) if it is an imitation of another food, unless its label bears in type of uniform size and prominence, the word "imitation" and, immediately thereafter, the name of the food imitated;cralaw, d) its containers is so made, formed, or filled as to be misleading;cralaw, e) if in package form unless it bears a label conforming to the requirements of this Act: Provided, That reasonable variation on the requirements of labeling shall be permitted and exemptions as to small packages shall be established by the regulations prescribed by the concerned department of health;cralaw, f) if any word, statement or other information required by or 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, statements, designs or devices in the labeling and in such terms as to render it likely to be read and understood by the ordinary individual under customary conditions of purchase and use;cralaw. The warrantor will not be required to perform the above duties if he can show that the defect, malfunction or failure to conform to a written warranty was caused by damage due to unreasonable use thereof. 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 registered mail or any communication wherein proof of notice or service can be verified. bn) "Seller" means a person engaged in the business of selling consumer products directly to consumers. That’s because you have the right to do so as a consumer, as written under Republic Act 7349, also known as the Consumer Act of the Philippines. The above requirements shall form an integral part of the label without danger of being erased or detached under ordinary handling of the product. ao) "Imminently hazardous product" means a consumer product which presents an unreasonable risk of death, serious illness or severe personal injury. – 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. The department shall promulgate the necessary rules for the issuance, amendment or revocation of any consumer product safety rule. The implementing agency shall prescribe regulations consistent with commonly accepted accounting standards to carry out the requirements of this Article. View THE CONSUMER ACT OF THE PHILIPPINES.docx from BUSINESS A 127 at University of Santo Tomas. d) "Advertiser" means the client of the advertising agency or the sponsor of the advertisement on whose account the advertising is prepared, conceptualized, presented or disseminated. – This Act shall be known as the "Consumer Act of the Philippines." If the Department finds that for good and sufficient reasons, full compliance with the labeling requirements otherwise applicable under this Chapter is impracticable or is not necessary for the adequate protection of public health and safety, it shall promulgate regulations exempting such substances from these requirements to the extent he 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 mislabeled hazardous substance. Implementing Agency. f) No person shall advertise any food, drug, cosmetic, device, or hazardous substance unless such product is duly registered and approved by the concerned department for use in any advertisement.chanroblesvirtuallawlibrary. Regulations Declaring Hazardous Substances and Establishing Variations and Exemptions. Article 136. – It shall be unlawful for any person to: a) introduce or deliver for introduction into commerce of any mislabeled hazardous substance or banned hazardous substance;cralaw, b) alter, mutilate, destroy, obliterate or remove the whole or any part of the label of a mislabeled hazardous substance, or banned hazardous substance, if such act is done while the substance is in commerce or while the substance is held for sale, whether or not it is the first sale;cralaw, c) receive in commerce any mislabeled hazardous substance or banned hazardous substance and the delivery or preferred delivery thereof at cost or otherwise;cralaw, d) give the guaranty or undertaking referred to in paragraph (b) of Article 93 and paragraph (b) of Article 45 if such guaranty or undertaking if false except by a person who relied upon a guaranty or undertaking which he received in good faith;cralaw, e) introduce or deliver for introduction into commerce or receive in commerce and subsequently deliver or preferred at cost or otherwise, or a hazardous substance in a refused food, drug, cosmetic or device container or in a container which, though not a reused container, is identifiable as a food, drug, cosmetic or device container by its labeling or by other identification. CHAPTER I – For the initial operating expenses of the National Consumer Affairs Council, the sum of Two million pesos (P2,000,000.00) is hereby appropriated out of funds of the National Treasury not otherwise appropriated. The objectives of this Act is all focused to the welfare, protection and rights of all the consumer in the Philippines. y) "Credit transaction" means a transaction between a natural person and a creditor in which real or personal property, services or money acquired on credit and the person's obligation is payable in installment. at) "Mass media" refers to any means or methods used to convey advertising messages to the public such as television, radio, magazines, cinema, billboards, posters, streamers, hand bills, leaflets, mails and the like. Prior to the effective date of such regulations the Department, in lieu of certification, shall issue a release for any batch which, in his judgment, may be released without risk as to the safety and efficacy of its use. c) "Advertising agency or Agent" means a service organization or enterprise creating, conducting, producing, implementing or giving counsel on promotional campaigns or programs through any medium for and in behalf of any advertiser. If the immediate seller is the manufacturer's factory or showroom, the warranty shall immediately be honored. Warranties in Supply of Services. 3) Retail. a) For purposes of enforcement of this Article, officers or employees duly designated by the Department, upon presenting appropriate credentials to the owner, operator, or agent in charge, are authorized (1) to enter, at reasonable hours, any factory, warehouse or establishment in which food, drugs, devices or cosmetics are manufactured, processed, packed or held, for introduction into domestic commerce or are held after such introduction, or to enter any vehicle being used to transport or hold such food, drugs, devices, or cosmetics in domestic commerce; and (2) to inspect, in a reasonable manner, such factory, warehouse, or establishment or vehicle and all pertinent equipment, finished and unfinished materials, containers and labeling therein. Article 126. Any word, statement or other information required by or under authority of the preceding paragraph shall appear on the label or labeling with such conspicuousness as compared with other words, statements, designs or devices therein, and in such terms as to render it likely to be read and understood by the ordinary individual under customary conditions of purchase or use. In case the repair of the product in whole or in part is elected, the warranty work must be made to conform to the express warranty within thirty (30) days by either the warrantor or his representative. Congress of the Philippines Consumer Act of the Philippines R.A 7394 1. This method of calculating rebates may be referred to as the "rule of 78" or "sum of the digits" method. For purposes of paragraph (c) of this Article, a package shall be deemed to be nonfunctionally slack-filled if it is filled to substantially less than its capacity for reasons other than (1) protection of the contents of such package, (2) the requirements of machines used for enclosing the contents in such package, or (3) inherent characteristics of package materials or construction being used. Declaration of Policy. If the consumer opts for the alternative under sub-paragraph (a) of the second paragraph of this Article, and replacement of the product is not possible, it may be replaced by another of a different kind, mark or model: Provided, That any difference in price may result thereof shall be supplemented or reimbursed by the party which caused the damage, without prejudice to the provisions of the second, third and fourth paragraphs of this Article. Addenda to the Implementing Rules and Regulations of Republic Act No. 2015-0007 20 february 2015. the implementing rules and regulations of republic act no. – A food shall be deemed to be adulterated: a) 1) if it bears or contains any poisonous or deleterious substance which may render it injurious to health; but in case the substance is not an added substance, such food shall not be considered adulterated under this clause if the quantity of such substance does not ordinarily render it injurious to health; 2) if it bears or contains any added poisonous or deleterious substance other than one which is (i) a pesticide chemical in or on a raw agricultural commodity, (ii) a food additive, (iii) a color additive, for which tolerances have been established and it conforms to such tolerances;cralaw, 3) if it consists in whole or in part of any filthy, putrid or decomposed substance, or if it is otherwise unfit for food;cralaw, 4) if it has been prepared, packed or held under unsanitary conditions whereby it may have become contaminated with filth, or whereby, it may have been rendered injurious to health;cralaw, 5) if it is, in whole or part, the product of a diseased animal or of an animal which has died other than by slaughter;cralaw, 6) if its container is composed, in whole or in part, of any poisonous or deleterious substance which may render the contents injurious to health; or, 7) if it has passed its expiry date.chanroblesvirtuallawlibrary. A second conviction under this paragraph shall also carry with it the penalty of revocation of business permit and license. Article 28. Such statement shall be located in conspicuous place on every cigarette package and shall appear in conspicuous and legible type in contrast by typography, layout or color with other printed matter on the package. The Eight Basic Consumer Rights Philippine Daily Inquirer / 04:33 PM May 21, 2011 1 Right to Basic Needs, which guarantees survival, adequate food, clothing, shelter, health care, education and sanitation. b) the special packaging to be required by such standard is technically feasible, practicable and appropriate for such product. – The system of weights and measures to be used for all products, commodities, materials, utilities, services and commercial transactions, in all contracts, deeds and other official and legal instruments and documents shall be the metric system, in accordance with existing laws and their implementing rules and regulations. Article 124. Chain Distribution Plans or Pyramid Sales Schemes. Licensing and Registration. – The suppliers of durable or nondurable consumer products are jointly liable for imperfections in quality that render the products unfit or inadequate for consumption for which they are designed or decrease their value, and for those resulting from inconsistency with the information provided on the container, packaging, labels or publicity messages/advertisement, with due regard to the variations resulting from their nature, the consumer being able to demand replacement to the imperfect parts. The policy of the State aims at protecting the interests of the consumer, promote his general welfare and to establish standards of conduct for business and industry. – A sales promotion which is intended for broad consumer participation and utilizes mass media shall indicate the duration, commencement and termination of the promotion, the deadline for submission of entries and the governing criteria or procedure to be followed therein. f) to accredit independent, competent non-government bodies, to assist in (1) monitoring the market for the presence of hazardous or non-certified products and other forms of violations of Article 18; and (2) other appropriate means to expand the monitoring and enforcement outreach of the department in relation to its manpower, testing and certification resources at a given time. a) Whenever the concerned department has the reason to believe (1) that any person, partnership or corporation is engaged in or is about to engage in the dissemination or the causing of dissemination of any advertisement in violation of Articles 110 to 115, and (2) that the enjoining thereof would be to the interest of the public, the concerned department shall direct the filing of a complaint in the court of competent jurisdiction, to enjoin the dissemination or the causing of the dissemination of such advertisement. Article 131. Consumer Act of the Philippines saindz. Article 118. Nothing therein shall prevent the retailer from proceeding against the distributor or manufacturer. – 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, is such that special packaging is required to protect children from serious personal injury or serious illness resulting from handling and use of such product; and. Article 12. – The Department of Health, hereby referred to as the Department, shall enforce the provisions of this Chapter. Special Packaging of Consumer Products for the Protection of Children. Article 7. Declaration of Policy. In case of juridical persons, the penalty shall be imposed upon its president, manager or head. Declaration of Policy. Definition of Terms. Article 146. – The person to whom credit is extended may prepay in full or in part, at any time without penalty, the unpaid balance of any consumer credit transaction. h) if it purports to be or represented as: 1) a food for which a standard of quality has been prescribed by regulations as provided in this Act and its quality fall below such standard, unless its label bears in such manner and form as such regulations specify, a statement that it falls below such standard; or, 2) a food for which a standard or standards or fill of container have been prescribed by regulations as provided by this Act and it falls below the standard of fill of container applicable thereto, unless its label bears, in such manner and form as such regulations specify, a statement that it falls below such standard;chanroblesvirtuallawlibrary. Prohibited Acts. i) The Department shall promulgate a schedule of fees for the issuance of the certificate of product registration and license to operate provided for under this Article.chanroblesvirtuallawlibrary. g) "Banned hazardous substance" means (1) any toy or other articles intended for use by children, which are hazardous per se, or which bear or contain substances harmful to human beings; or (2) any hazardous substance intended or packaged in a form suitable for use in the household, which the implementing agency by regulation, classifies as "banned hazardous substance" notwithstanding the existence of cautionary labels, to safeguard public health and safety: Provided, That the implementing agency may, by regulation, exempt from this Act, articles which by reason of their functional purpose require the inclusion of the hazardous substance involved and which bear appropriate labels giving adequate directions and warnings for their safe use. Article 143. Liability of Tradesman or Seller. Right to representation is the right to express consumer interest in the making and execution of government policy. – The concerned Department Secretaries shall appoint as many qualified consumer arbitration officers as may be necessary for the effective and efficient protection of consumer rights: Provided, however, That there shall be not more than ten (10) consumer arbitration officers per province, including the National Capital Region. Additional Labeling Requirements for Cosmetics. Declaration of Policy. – The concerned department shall prescribe rules and regulations for the visible placement of price tags for specific consumer products and services. Sanctions. The Department of Trade and Industry shall also adopt standard measurement for garments, shoes and other similar consumer products. a) Any person who violates any of the provisions of Article 46 shall, upon conviction, be subject to a fine of not less than One thousand pesos (P1,000.00) or an imprisonment of not less than six (6) months but not more than five (5) years or both upon the discretion of the court. Article 63. al) "Highly Toxic" means any substance which has any of the following effects: (1) produces death within fourteen days to one-half or more than one-half of a group of ten or more laboratory white rats each weighing between Two hundred and three hundred grams, at a single dose of fifty milligrams or less per kilogram of body weight, when orally administered; or (2) produces death within fourteen days to one-half or more of a group of ten or more laboratory white rats each weighing between two hundred and three hundred grams, when inhaled continuously for a period of one hour or less at an atmospheric concentration of two hundred parts per million by volume or less of gas or vapor or two milligrams per liter by volume or less of mist or dust, provided such concentration is likely to be encountered by man when the substance is used in any reasonably foreseeable manner, or (3) produces death within fourteen days to one-half or more of a group of ten or more rabbits, when tested in a dosage of two hundred milligrams or less per kilogram of body weight, or when administered through continuous contact with the bare skin for twenty-four hours or less. 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