R.A. 7394 Basic Policies To protect the interests of the consumer Protect his general welfare To establish standards of conduct for business and industry. : All Rights Reserved ReDiaz www.chanrobles.com. 4) the nature and use of consumer products. Referral Sales. – The legal guarantee of product or service adequacy does not require an express instrument or contractual exoneration of the supplier being forbidden. 1) Sales Report. Determination of Simple Annual Rate. Labeling of Drugs. Be it enacted by the Senate and House of Representatives of the Republic of the Philippines in Congress assembled: PART I SHORT TITLE AND DECLARATION OF POLICY. Article 63. The implementing agency shall determine what items shall be exempted from the computation of the finance charges.chanroblesvirtuallawlibrary. – Any advertisement which makes special claims shall: b) properly use research result, scientific terms, statistics or quotations. a) any person, association, partnership or corporation who shall violate any of the provisions of Articles 110 to 115 shall, upon conviction, be subject to a fine of not less than Five Hundred Pesos (P500.00) but not more than Five thousand pesos (P5,000.00) or an imprisonment of not less than one (1) month but not more than (6) months or both upon the discretion of the court. Article 164. e) Duration of warranty. The report shall contain, among others, the date of purchase, model of the product bought, its serial number, name and address of the buyer. The order shall state the findings upon which it is based. ad) "Drugs" mean (1) articles recognized in the current official United States Pharmacopoeia-National Formulary, official Homeopathic Pharmacopoeia of the United States, official National Drug Formulary, or any supplement to any of them; and (2) articles intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in man or other animals; and (3) articles (other than food) intended to affect the structure or any function of the body of man or animals; and (4) articles intended for use as a component of any articles specified in clauses (1), (2), or (3) but do not include devices or their components, parts or accessories. Instruments officially sealed at some previous time which have remained unaltered and accurate and the seal or tag officially affixed thereto remains intact and in the same position and condition in which it was placed by the official sealer or his duly authorized representative shall, if presented for sealing, be sealed promptly on demand by the official sealer or his authorized representative without penalty except a surcharge fixed by law or regulation. f) All expenses in connection with the destruction provided for in this Article, and all expenses in connection with the storage, cartage or labor with respect to any consumer product refused admission under this Article, shall be paid by the owner or consignee and, in default of such payment, shall constitute a lien against any future importation made by such owner or consignee.chanroblesvirtuallawlibrary. bk) "Retailer" means a person engaged in the business of selling consumer products directly to consumers. If it appears from the examination of such samples that such hazardous substance is a mislabeled hazardous substance or banned hazardous substance, then such hazardous substance shall be refused admission except as may be provided in an order issued by the Department authorizing delivery of the refused products or substance under the requirements imposed therein. 1. Copies of these program shall be furnished the Council. b) No person shall be subject to the penalties of paragraph (a) of this Article for (1) having violated paragraph (c) of Article 46 unless he refuses to furnish, upon request by the Department or his representative, the name and address of the person from who he purchased such hazardous substances and (2) having violated paragraph (a) of Article 46, if he establishes a guaranty or undertaking signed by, and containing the name and address of, the person from whom he received in good faith, the hazardous substance to the effect that the hazardous substance is not a mislabeled hazardous substance or banned hazardous within the meaning of that term in this Act. – The stipulation in a contract of a clause preventing, exonerating or reducing the obligation to indemnify for damages effected, as provided for in this and in the preceding Articles, is hereby prohibited, if there is more than one person responsible for the cause of the damage, they shall be jointly liable for the redress established in the pertinent provisions of this Act. ap) "Irritant" means any substance not corrosive within the meaning of paragraph (t) of this Article which, on immediate, prolonged or repeated contact with normal living tissue will induce a local inflammatory reaction. Decision on Appeal. Article 109. – The retailer shall be subsidiarily liable under the warranty in case of failure of both the manufacturer and distributor to honor the warranty. (2) on which any statement required under clause (1) of this paragraph are located prominently and in contrast by typography are located prominently and in contrast by typography, layout, with other printed matters on the label. Article 132. – 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. • RA 7394 is the Consumer Act of the Philippines which took effect on July 15, 1992 It is the policy of the State to protect the interest of the consumer, promote his general welfare and to establish standards of conduct for business and industry. 5) Record of purchases. bc) "Price comparison" means the direct comparison in any advertisement of a seller's current price for consumer products or services with any other price or statement of value for such property or services expressed in pesos, centavos, fractions or percentages. – The Council shall be headed and presided by a Chairman who shall be elected by the members from among themselves. – 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. 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. Article 35. Republic Act 7394 (RA 7394) is the "Consumer Act of the Philippines" which was promulgated on July 15, 1992. c) Where the comparison relates to a competitor's price, the competitor's price shall relate to the consumer products or services advertised or sold in the ninety-day period and shall be representative of the prices similar consumer products or services are sold or advertised in the locality where the price comparison was made.chanroblesvirtuallawlibrary, Article 112. aq) "Label, labeling" means the display of written, printed or graphic matter on any consumer product its immediate container, tag, literature or other suitable material affixed thereto for the purpose of giving information as to identify, components, ingredients, attributes, directions for use, specifications and such other information as may be required by law or regulations. 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. 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. The Department of Trade and Industry shall also adopt standard measurement for garments, shoes and other similar consumer products. It shall not include sampling or any distribution not for sale. – All laws, executive orders, rules and regulations or parts thereof which are inconsistent with this Act are hereby repealed or amended accordingly. b) No person shall advertise any food, drug, cosmetics, device, or 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 safety. The manufacturer shall avail of the Philippine Standard Certification Mark which the department shall grant after determining the product's compliance with the relevant standard in accordance with the implementing rules and regulations. M. Narce. Pursuant to Chapter III, Title V of R.A. 7394 (Consumer Act of the Philippines): ¾Investigation may commence (1)upon petition or (2)upon letter-complaint from any consumer ¾That, upon finding of a prima facieviolation, concerned department may motu proprioor ¾Upon verified complaint commence formal administrative action against any person Adulterated Food. e) If the methods used in, or the facilities or controls used for its manufacture or holding do not conform to or are not operated or administered in conformity with current good manufacturing practice to assure that such drug meets the requirements of this Act as to safety, quality and efficacy, and has the identity and strength, and meets the quality and purity characteristics which it purports or is represented to possess.chanroblesvirtuallawlibrary, Article 30. Mislabeled Drugs and Devices. l) "Closing out sale" means a consumer sale wherein the seller uses the announcement to create the impression that he is willing to give large discounts or merchandise in order to reduce, dispose or close out his inventory and business. – The Department of Health, hereby referred to as the Department, shall enforce the provisions of this Chapter. Additional Labeling Requirements for Cosmetics. – The following additional labeling requirements shall be imposed by the concerned department for food: a) expiry or expiration date, where applicable;cralaw, b) whether the consumer product is semi-processed, fully processed, ready-to-cook, ready-to-eat, prepared food or just plain mixture;cralaw, d) whether the ingredients use are natural or synthetic, as the case may be;cralaw, e) such other labeling requirements as the concerned department may deem necessary and reasonable.chanroblesvirtuallawlibrary. c) If it appears that any consumer product which may not be admitted pursuant to paragraph (a) of this Article can be so modified that it can already be accepted, the concerned department may defer final examination as to the admission of such product for a period not exceeding ten (10) days, and in accordance with such regulations as the department and the Commissioner of Customs shall jointly promulgate, such product may be released from customs custody under bond for the purpose of permitting the owner or consignee an opportunity to so modify such product. d) No person shall, in the advertisement of any food, drug, cosmetic, device, or hazardous substance, make use of any reference to any laboratory report of analysis required to be furnished to the concerned department, unless such laboratory report is duly approved by such department. – Whenever the concerned department determines that regulations containing requirements other than those prescribed in Article 77 hereof are necessary to prevent the deception of the consumer or to facilitate value comparisons as to any consumer product, it may issue such rules and regulations to: a) establish and define standards for characterization of the size of a package enclosing any consumer product which may be used to supplement the label statement of net quality, of contents of packages containing such products but this clause shall not be construed as authorizing any limitation on the size, shape, weight, dimensions, or number of packages which may be used to enclose any product;cralaw, b) regulate the placement upon any package containing any product or upon any label affixed to such product of any printed matter stating or representing by implication that such product is offered for retail at a price lower than the ordinary 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;cralaw, c) prevent the nonfunctional slack-fill of packages containing consumer products.chanroblesvirtuallawlibrary. • RA 7394 is the Consumer Act of the Philippines which took effect on July 15, 1992 fIt is the policy of the State to protect the interest of the consumer, promote his general welfare and to establish standards of conduct for business and industry. CHAPTER VII – The concerned department shall establish consumer product quality and safety standards which shall consist of one or more of the following: a) requirements to performance, composition, contents, design, construction, finish, packaging of a consumer product;cralaw, b) requirements as to kind, class, grade, dimensions, weights, material;cralaw, c) requirements as to the methods of sampling, tests and codes used to check the quality of the products;cralaw, d) requirements as to precautions in storage, transporting and packaging;cralaw, e) requirements that a consumer product be marked with or accompanied by clear and adequate safety warnings or instructions, or requirements respecting the form of warnings or instructions.chanroblesvirtuallawlibrary. – 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. 7394 Purpose: This law is designed to prevent business that engage in fraud or specified unfair practices from gaining an advantage over competitors and provide additional protection for the weak and those unable to take care of themselves. Article 61. Regulation of Unprocessed Food. What to do: Scan newspapers, magazines and other reading materials for articles or newsbits which educate consumers on how to get the best value for their peso. The implementing agency may promulgate and adopt rules and regulations with respect to other precomputed consumer credit transactions. – To improve the management, coordination and effectiveness of consumer programs, a National Consumer Affairs Council is hereby created, hereinafter referred to as the "Council". Finance Charge on Refinancing. Liability for Product and Service Imperfection. Article 2. The stated future price shall be maintained by the seller for a period of at least four (4) weeks after its effective date: Provided, That compliance thereof may be dispensed with in case of circumstances beyond the seller's control. A service is not considered defective because of the use or introduction of new techniques. Article 59. 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. – 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. Manner of Placing Price Tags. ac) "Distributor" means any person to whom a consumer product is delivered or sold for purposes of distribution in commerce, except that such term does not include a manufacturer or retailer of such product. Article 93. 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. Pursuant to the Implementing Rules and Regulations of R.A. 7394, or the Consumer Act of the Philippines, specifically Title III, Chapter I, Rule 2, Section 7 of Department Administrative Order (DAO) No. Article 144. No other documentary requirement shall be demanded from the purchaser. az) "Package" or "packaging" means any container or wrapping in which any consumer product is enclosed for use in the delivery or display of that consumer product to retail purchasers, but does not include: 1) shipping containers or wrappings used solely for the transportation of any consumer product in bulk or in big quantities by manufacturers, packers, or processors to wholesale retail distributors thereof;cralaw, 2) shipping containers or outer wrappings used by retailers to ship or deliver any product to retail costumers if such containers and wrappings bear no printed matter pertaining any particular product;cralaw, 3) The wrappers or containers of consumer products sold in small quantities by small retail stores to the consumer which by tradition are wrapped with ordinary paper.chanroblesvirtuallawlibrary. –. – The parties in a consumer credit transaction may at any time agree in writing to a deferral of all or part of one or more unpaid installments and the creditor may make and collect a charge which shall not exceed the rate previously disclosed pursuant to the provisions on disclosure. Article 115. – All cigarettes for sale or distribution within the country shall be contained in a package which shall bear the following statement or its equivalent in Filipino: "Warning" Cigarette Smoking is Dangerous to Your Health". a) The Department shall, by regulations, provide for the certification of batches of drugs composed wholly or partially of any kind of antibiotic. p) "Consumer loan" means a loan made by the lender to a person which is payable in installments for which a finance charge is or may be imposed. Article 172. Implementing Agency. This guarantees survival, adequate food, clothing, shelter, health care, education, and sanitation to everyone. b) Samples of consumer products being imported into the Philippines in a quantity necessary for purposes of determining the existence of any of the above causes for non-admission may be obtained by the concerned department or agency without charge from the owner or consignee thereof. – In the implementation of the foregoing policy, the State, through the Department of Health, hereby referred as the Department, shall, in accordance with the provisions of this Act: a) establish standards and quality measures for food, drugs, devices and cosmetics;cralaw, 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;cralaw, c) adopt measures to ensure the rational use of drugs and devices, such as, but not limited to, banning, recalling or withdrawing from the market drugs and devices which are unregistered, unsafe, inefficacious or of doubtful therapeutic value, the adoption of an official National Drug Formulary, and the use of generic names in the labeling of drugs;cralaw, d) strengthen the Bureau of Food and Drugs.chanroblesvirtuallawlibrary. Procedures for the issuance, amendment or repeal of regulations pursuant to clause (2) or paragraph (g) of this Article shall be governed by the rules and regulations promulgated by the Department of Health; Provided, That if the Department of Health finds that the distribution for household use of the hazardous substance involved presents an imminent hazards to the public health, it may publish in a newspaper of general circulation a notice of such finding and such substance shall be deemed to be a "banned hazardous substance" pending the issuance of regulation formally banning such substance. – Home solicitation sales may be conducted only between the hours of nine o'clock in the morning and seven o'clock in the evening of each working day: Provided, That solicitation sales may be made at a time other than the prescribed hours where the person solicited has previously agreed to the same. A separate certificate shall be required for each branch of an enterprise located in areas outside of the main office. A continuing consumer education program for out-of-school youth and adults shall likewise be developed and undertaken. – A cosmetic shall be deemed to be adulterated: a) if it bears or contains any poisonous or deleterious substance which may render it injurious to users under the condition of use prescribed in the labeling thereof, or under the condition of use as are customary or usual: Provided, That this provision shall not apply to color additive hair dye, the label of which bears the following legend conspicuously displayed thereon: "Caution: this product contains ingredients which may cause skin irritation on certain individuals and a preliminary test according to accompanying directions should first be made. Prohibition in Contractual Stipulation. #LegalMatters | Consumer Act of the PhilippinesQuestion: Umorder po ako sa isang online shop, pero iba po ang itsura ng nasa picture at personal. An act or practice shall be deemed unfair or unconscionable whenever the producer, manufacturer, distributor, supplier or seller, by taking advantage of the consumer's physical or mental infirmity, ignorance, illiteracy, lack of time or the general conditions of the environment or surroundings, induces the consumer to enter into a sales or lease transaction grossly inimical to the interests of the consumer or grossly one-sided in favor of the producer, manufacturer, distributor, supplier or seller. i) if it is not subject to the provisions of paragraph (g) of this Article unless its label bears: 1) the common or usual name of the food, if there be any; and, 2) in case it is manufactured or processed from two or more ingredients, the common or usual name of such ingredient; except the spices, flavorings and colorings other than those sold as such, may be designated as spices, flavorings and colorings without naming each: Provided, That to the extent that compliance with the requirement of clause (2) of this paragraph is impracticable or results in deception or unfair competition, exemptions shall be established by regulations promulgated by the concerned department of health;chanroblesvirtuallawlibrary, j) if it purports to be or is represented for special dietary uses, unless its label bears such information concerning its vitamin or mineral or other dietary properties as the concerned department determines to be, or by regulations prescribed as necessary in order fully to inform purchasers as its value for such uses;cralaw, k) if it bears or contains any artificial flavoring, artificial coloring, or chemical preservative, unless it bears labeling, stating that fact: Provided, That to the extent that compliance with the requirements of this paragraph is impracticable, exemptions shall be established by regulations promulgated by the concerned department. Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: Article 1. Article 82. bw) "Toxic substance" means any substance other than a radioactive substance which can cause injury, illness or death to man through ingestion, inhalation or absorption through any body surface. Prohibited Acts on Labeling and Packaging. In case of imported products, the manufacturer's representatives or, in his absence, the importer, shall be deemed the manufacturer. Consumer Participation. In such case, the Department shall promulgate regulations limiting the quantity therein in such extent as he finds necessary for the protection of public health, and any quantity exceeding the limits so fixed shall be deemed to be unsafe. The Department of Trade and Industry (DTI) said it intends to refile a bill amending Republic Act (RA) 7394, or the Consumer Act, which may include provisions on …