Article 82. This Act, consisting of 173 articles divided into six Titles, establishes the Consumer Act of the Philippines. b) If it purports to be or is represented as a drug, the name of which is recognized in an official compendium, and its strength differs from, or its safety, efficacy, quality or purity falls below the standards set forth in such compendium, except that whenever tests or methods of assay as prescribed are, in the judgment of the Department, insufficient for the making of such determination, the Department shall promulgate regulations prescribing appropriate tests or methods of safety, efficacy, quality or purity shall be made. – No person shall conduct any sales campaigns, including beauty contest, national in character, sponsored and promoted by manufacturing enterprises without first securing a permit from the concerned department at least thirty (30) calendar days prior to the commencement thereof. b) Parties to the case shall be entitled to notice of the hearing, and shall be informed of the date, time and place of the same. Article 173. Repealing Clause. 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. In determining the quantity of such added substance to be tolerated in different articles of food, the Department shall take into account the extent to which the use of such article is required or can not be avoided in the production or manufacture of such articles and the other ways in which the consumer may be affected by the same or other poisonous or deleterious substance. Add your answer and earn points. Chain Distribution Plans or Pyramid Sales Schemes. – The provisions of this Act shall apply notwithstanding any agreement to the contrary but shall not restrict, limit or derogate from any other rights or remedies of a consumer under any other law. – A written warranty shall clearly and conspicuously designate such warranty as: 1) "Full warranty" if the written warranty meets the minimum requirements set forth in paragraph (d); or. c) if it is, or bears or contains a color additive which is unsafe under existing regulations: Provided, That the Department shall promulgate regulations providing for the listing of color additives which are harmless and suitable for use in food for which tolerances have been established; d) if it is confectionary, and it bears or contains any alcohol or non-nutritive article or substance except harmless coloring, harmless flavoring, harmless resinous glass not in excess of four-tenths (4/10) of one per centum (1%) natural gum and pectin: Provided, That this clause shall not apply to a safe non-nutritive article or substance if, in the judgment of the Department as provided by regulations, (1) such article or substance is of practical functional value in the manufacture, packaging or storage of such confectionery, (2) if the use of the substance does not promote deception of the consumer or otherwise results in adulteration or mislabeling in violation of any provision of this Act, and (3) would not render the product injurious or hazardous to health: Provided, further, That this paragraph shall not apply to any confectionery by reason of its containing less than one-half (½) of one per centum (1%) by volume of alcohol, derived solely from the use of flavoring extracts, or to any chewing gum by reason of its containing harmless non-nutritive masticatory substance: Provided, finally, That the Department may, for the purpose of avoiding or resolving uncertainty as to the application of this clause, promulgate regulations allowing or prohibiting the use of particular non-nutritive substances; e) if it is oleomargarine, margarine or butter and any of the raw materials used therein consists in whole or in part of any filthy, putrid or decomposed substance, or such oleomargarine, margarine or butter is otherwise unfit for food; f) if it has not been prepared in accordance with current acceptable manufacturing practice established by the Department through regulations. Authority of the Concerned Department to Provide for Additional Labeling and Packaging Requirements. RA No. – Any certificate of accreditation may be suspended, revoked or cancelled by the Department, for cause, after due notice and hearing. Consumer Arbitration Officers; Qualifications. Declaration of Policy. 2) "Limited warranty" if the written warranty does not meet such minimum requirements. bu) "Supplier" means a person, other than a consumer, who in the course of his business, solicits, offers, advertises, or promotes the disposition or supply of a consumer product or who other than the consumer, engages in, enforces, or otherwise participates in a consumer transaction, whether or not any privity of contract actually exists between that person and the consumer, and includes the successor to, or assignee of, any right or obligation on of the supplier. Article 172. LIABILITY FOR PRODUCT AND SERVICE. Enabling Business, Empowering ConsumersBACKGROUNDER ONTHE CONSUMER ACTOF THE PHILIPPINES (R.A. 7394) Series of 2013 Enabling Business, Empowering Consumers LEGAL BASIS OF RA 7394 THE “TATE “HALL PROTECT CONSUMERS FROM TRADE MALPRACTICES AND FROM SUBSTANDARD OR HAZARDOUS PRODUCT“. Prohibited Acts. Injurious, Dangerous and Unsafe Products. - A deceptive act or practice by a seller or supplier in connection with a consumer transaction violates this Act whether it occurs before, during or … Article 115. bl) "Sale or distribution" shall mean an act made by a manufacturer or seller, or their respective representative or agent, to make available consumer products, services or credit to the end consumers under a consumer sale transaction. – In addition to the administrative sanctions provided for under Letter of Instructions No. Article 69. Republic Act No. 7394). Article 83. 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. – It is the policy of the State to protect the interests of the consumer, promote his general welfare and to establish standards of conduct for business and industry. Article 129. The use of a used food, drug, cosmetic or device container for a hazardous substance does not diminish the danger posed by the hazardous substance involved, therefore, such substance shall be deemed a mislabeled hazardous substance. Article 2. Relation of the Act to Other Rights. Short Title . – The consumer arbitration officers shall have original and exclusive jurisdiction to mediate, conciliate, hear and adjudicate all consumer complaints, Provided, however, That this does not preclude the parties from pursuing the proper judicial action. Consumer Act of the Philippines R.A 7394 1. Article 59. Additional Labeling Requirements for Cosmetics. Products should not also be sold at a price more that what was intially stated. 6) stipulate the period within which, after notice of defect, malfunction or failure to conform to the warranty, the warrantor will perform any obligation under the warranty. b) Any person who shall violate the provisions of paragraph (g) of Article 64 for the first time shall be subject to a fine of not less than Five hundred pesos (P500.00) or by imprisonment of not less than one (1) month but not more than five (5) years or both, upon the discretion of the court. c) The owner-possessor or user of instrument of weights and measure enumerated in paragraphs (h) to (k) of Article 64 shall, upon conviction, be subject to a fine of not less than Three hundred pesos (P300.00) or imprisonment not exceeding one (1) year, or both, upon the discretion of the court. In the case of financial transactions, cash price represents the amount received by the debtor upon consummation of the credit transaction, net of finance charges collected at the time the credit is extended, if any. e) if it is not a hair dye, and it bears or contains color additive other than which is permissible. Short Title. In case the department, upon petition by an interested party or its own initiative and after due notice and hearing, determines a consumer product to be substandard or materially defective, it shall so notify the manufacturer, distributor or seller thereof of such finding and order such manufacturer, distributor or seller to: a) give notice to the public of the defect or failure to comply with the product safety standards; and. d) If a drug or device and any substance has been mixed or packed therewith, or any substance has been substituted wholly or in part thereof, so as to reduce its safety, efficacy, quality, strength or purity. – The foregoing requirements on consumer credit transactions shall not apply to the following credit transactions: a) those involving extension of credits for business or commercial purposes, or to the Government and governmental agencies and instrumentalities, juridical entities or to organizations; b) those in which the debtor is the one specifying the definite set of credit terms such as bank deposits, insurance contracts, sale of bonds or analogous transactions. Appropriations. 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 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. – The seller and the consumer may stipulate the period within which the express warranty shall be enforceable. – 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; b) the method of determining the balance upon which a finance charge may be imposed; c) the method of determining the amount of the finance charges, including any minimum or fixed amount imposed as a finance charge; 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; e) the conditions under which the creditor may impose a security lien and a description of the goods to which such lien may attach. – The following acts relating to weights and measures are prohibited: a) for any person other than the official sealer or his duly authorized representative to place or attach an official tag, seal, sticker, mark, stamp, brand or other characteristic sign used to indicate that such instrument of weight and measure has officially been tested, calibrated, sealed or inspected; b) for any person to imitate any seal, sticker, mark, stamp, brand, tag or other characteristic sign used to indicate that such instrument of weight or measures has been officially tested, calibrated, sealed or inspected; c) for any person other than the official sealer or his duly authorized representative to alter in any way the certificate or receipt given by the official sealer or his duly authorized representative as an acknowledgment that the instrument for determining weight or measure has been fully tested, calibrated, sealed or inspected; d) for any person to make or knowingly sell or use any false or counterfeit seal, sticker, brand, stamp, tag, certificate or license or any dye for printing or making the same or any characteristic sign used to indicate that such instrument of weight or measure has been officially tested, calibrated, sealed or inspected; e) for any person other than the official sealer or his duly authorized representative to alter the written or printed figures, letters or symbols on any official seal, sticker, receipt, stamp, tag, certificate or license used or issued; f) for any person to use or reuse any restored, altered, expired, damaged stamp, tag certificate or license for the purpose of making it appear that the instrument of weight of measure has been tested, calibrated, sealed or inspected; g) for any person engaged in the buying and selling of consumer products or of furnishing services the value of which is estimated by weight or measure to possess, use or maintain with intention to use any scale, balance, weight or measure that has not been sealed or if previously sealed, the license therefor has expired and has not been renewed in due time; h) for any person to fraudulently alter any scale, balance, weight, or measure after it is officially sealed; i) for any person to knowingly use any false scale, balance, weight or measure, whether sealed or not; j) for any person to fraudulently give short weight or measure in the making of a scale; k) for any person, assuming to determine truly the weight or measure of any article bought or sold by weight or measure, to fraudulently misrepresent the weight or measure thereof; or. bb) "Poisonous substance" means any substance capable of destroying life or seriously endangering health when applied externally to the body or introduced internally in moderate doses. – The legal guarantee of product or service adequacy does not require an express instrument or contractual exoneration of the supplier being forbidden. 7394 THE CONSUMER ACT OF THE PHILIPPINESBe it enacted by the Senate and House of Representatives of the Philippines in … Consumer Education in Schools. – It shall be unlawful for any person, either as principal or agent, engaged in the labeling or packaging of any consumer product, to display or distribute or to cause to be displayed or distributed in commerce any consumer product whose package or label does not conform to the provisions of this Chapter. The owner or consignee of the imported consumer product under examination shall be afforded an opportunity to a hearing with respect to the importation of such products into the Philippines. chanrobles virtual law library. d) such other labeling requirements as the concerned department may deem necessary and reasonable. Regulations Declaring Hazardous Substances and Establishing Variations and Exemptions. The consumer education program shall include information regarding: a) the consumer as a responsible member of society and his responsibility to develop: 1) critical awareness which is the responsibility to be alert and questioning about the use of and price and quality of goods he uses; 2) assertiveness which is the responsibility to assert himself and act so he is assured of a fair deal, aware that for as long as he remains to be a passive consumer he will continue to be exploited; 3) social concern which is the responsibility to be aware of the impact of his consumption on other citizens, especially the disadvantaged; and. The technical and legal assistance shall be made available to consumers and their organizations and to the general public. In pursuance of such mandate, Congress has enacted RA 7394 or the Consumer Act of the Philippines in 1992. Act (R.A. 8792) WHEREAS, Republic Act No.7394, otherwise known as the Consumer Act of the Philippines, declares that it is the policy of the State to protect the interests of the consumer, promote his general welfare and to establish standards of conduct for business and industry to implement measures to achieve, … am) "Home solicitation sale" means consumer sales or leases which are personally solicited by any person or organization by telephone, person-to-person contact or by written or printed communication other than general advertising or consummated at the buyer's residence or a place of business, at the seller's transient quarters, or away from a seller's regular place of business. Approved on September 6, 2013: An Act amending certain provisions 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; 3) if it consists in whole or in part of any filthy, putrid or decomposed substance, or if it is otherwise unfit for food; 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; 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; 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. – The concerned department shall be advised of any delay of starting dates or termination dates and details of any change in the conduct of a sales promotion. – Comparative price advertising by sellers of consumer products or services shall conform to the following conditions: a) Where the comparison relates to a former price of the seller, the item compared shall either have been sold at that price within the ninety (90) days immediately preceding the date of the advertisement, or it shall have been offered for sale for at least four (4) weeks during such ninety-day period. Article 10. They are defined as articles from indigenous plant or animal origin used in folk medicine which are: (1) recognized in the Philippine National Formulary; (2) intended for use in the treatment or cure, mitigation, of disease symptoms, injury or bodily defect for use in man; (3) other than food, intended to affect the structure of any function of the body of man; (4) put into finishes, ready to use form by means of formulation, dosage or dosage directions; and (5) intended for use as a component of any of the articles specified in clauses (1), (2), (3) and (4) of this paragraph. The order shall state the findings upon which it is based. – Failure of the distributor to make the report or send them the form required by the manufacturer, producer, or importer shall relieve the latter of its liability under the warranty: Provided, however, That the distributor who failed to comply with its obligation to send the sales reports shall be personally liable under the warranty. – The following additional requirements may be required for cosmetics: c) precautions or contra-indications; and. – The Department shall, after due notice and hearing, promulgate regulations declaring as deceptive any sales act, practice or technique which is a misrepresentation of facts other than these enumerated in Article 50. b) the product is supplied, without clear identification of the manufacturer, producer, builder or importer; c) he does not adequately preserve perishable goods. as) "Manufacturer" means any person who manufactures, assembles or processes consumer products, except that if the goods are manufactured, assembled or processed for another person who attaches his own brand name to the consumer products, the latter shall be deemed the manufacturer. Republic Act No. Liability for Service Quality Imperfection. 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. – PROTECTION AGAINST DECEPTIVE, UNFAIR ANDUNCONSCIONABLE SALES ACTS OR PRACTICES, CHAPTER I Any consumer product, the sale or use of which has been banned or withdrawn in the country of manufacture, shall not be imported into the country. The ban on the sale and distribution of a consumer product adjudged injurious, unsafe or dangerous, or imminently injurious, unsafe or dangerous under the preceding paragraph shall stay in force until such time that its safety can be assured or measures to ensure its safety have been established. Definition of Terms. Article 131. For purposes of this Article and of Article 89 (j), the term "antibiotic drug" means any drug intended for use by man containing any quantity of any chemical substance which is produced by a micro-organism and which has the capacity to inhibit or destroy micro-organisms in dilute solution (including the chemically synthesized equivalent of any such substance). Republic Act 7394 (RA 7394) is the "Consumer Act of the Philippines" which was promulgated on July 15, 1992. – The Department of Health, hereby referred to as the Department, shall enforce the provisions of this Chapter. (1) (i) Any substance or mixture of substances which is toxic, corrosive, irritant, a strong sensitizer, flammable or combustible, or generates pressure through decomposition, heat or other means, if such substance or mixture or substances any cause substantial injury or substantial illness during or as a proximate result of any customary or reasonably foreseeable ingestion by children. Deceptive Sales Act or Practices By Regulation. The definition of "new drugs" covers to the extent applicable, "new devices". REPUBLIC ACT NO. Nakasaad sa RA 7394 o Consumer Act of the Philippines na unlawful ang pagbebenta ng kahit na anong produkto na walang karampatang price tag, label or … Unfair or Unconscionable Sales Act or Practice. – Distributors and retailers covered by this Article shall keep a record of all purchases covered by a warranty or guarantee for such period of time corresponding to the lifetime of the product's respective warranties or guarantees. The provisions of Article 31 (b), (d) and (e), to the extent applicable, shall govern the registration of such drugs and devices. Prohibition Against Deceptive Sales Acts or Practices. FOOD, DRUGS, COSMETICS AND DEVICES. Special Advertising Requirements for Food, Drug, Cosmetic, Device, or Hazardous Substance. THE CONSUMER ACT OF THE PHILIPPINES. Penalties. Article 109. Implementing Agencies. It also means techniques purely intended to increase the sales, patronage and/or goodwill of a product. 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. A deferral charge may be collected at the time it is assessed. c) The department shall afford all interested parties the opportunity to submit a statement of facts, arguments, offers of settlements or proposals of adjustments. ADVERTISING AND SALES PROMOTION. – Hazardous substances shall be deemed mislabeled when: a) having been intended or packaged in a form suitable for use in households, especially for children, the packaging or labeling of which is in violation of the special packaging regulations issued by the concerned department; (i) the name and the place of business of the manufacturer, packer, distributor or seller; (ii) the common or usual name or the chemical name, if there be no common or usual name, of the hazardous substance or of each component which contributes substantially to the harmfulness of the substance, unless the concerned department by regulation permits or requires the use of the recognized generic name; (iii) the signal word "danger" on substances which are extremely flammable, corrosive or highly toxic; (iv) the signal word "warning" or "caution" with a bright red or orange color with a black symbol on all other hazardous substances; (v) a clear statement as to the possible injury it may cause if used improperly; (vi) precautionary measures describing the action to be followed or avoided; (vii) instructions when necessary or appropriate for first-aid treatment; (viii) the word" poison" for any hazardous substance which is defined as highly toxic; (ix) instructions for handling and storage of packages which require special care in handling and storage; and, (x) the statement "keep out of the reach of children", or its practical equivalent, if the article is not intended for use by children and is not a banned hazardous substance, with adequate directions for the protection of children from the hazard involved. CHAPTER I DECEPTIVE, UNFAIR AND UNCONSCIONABLE SALES ACTS OR PRACTICES Saturday, August 29, 2015 . Advisory Services. DTI. 7394 The Consumer Act of the Philippines; Search. 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; (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. Likewise, Republic Act No. Article 86. 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