CONSUMER ACT OF THE PHILIPPINES

What is the basic policy of the State regarding consumer interests?

The State policy is to protect consumer interests, promote general welfare, and establish standards of conduct.

What is the Declaration of Policy on Deceptive Sales Acts?

What is the Declaration of Policy on Deceptive Sales Acts?

What is Objective 1 of the State measures towards consumer protection?

Protection against hazards to health and safety.

What is Objective 2 of the State measures towards consumer protection?

Protection against deceptive, unfair and unconscionable sales acts and practices.

What is Objective 3 of the State measures towards consumer protection?

Provision of information and education to facilitate sound choice and proper exercise of rights.

What is Objective 4 of the State measures towards consumer protection?

Provision of adequate rights and means of redress.

What is Objective 5 of the State measures towards consumer protection?

Involvement of consumer representatives in the formulation of social and economic policies.

How shall the provisions of this Act be interpreted and implemented?

The best interest of the consumer shall be considered in the interpretation and implementation of this Act.

What is the Declaration of Policy on Labeling and Fair Packaging?

The State shall enforce compulsory labeling, and fair packaging.

What is a Banned Hazardous Substance (1)?

Any toy or articles intended for use by children, which are hazardous per se.

What is a Banned Hazardous Substance (2)?

Any hazardous substance packaged for household use which the agency classifies as banned substance.

What are Chain Distribution Plans or Pyramid Sales Schemes?

Sales devices where profit is derived primarily from recruitment rather than sale of consumer products.

Who is considered a Consumer?

A natural person who is a purchaser, lessee, recipient, or prospective recipient of products, services, or credit.

What are Consumer Products and Services?

Goods, services, credits, debts, or obligations primarily for personal, family, household, or agricultural purposes.

What constitutes a Consumer Transaction (1)?

A sale, lease, assignment, or disposition of products, services, or any right.

What constitutes a Consumer Transaction (2)?

A grant or provision of credit to a consumer for personal, family, household, or agricultural purposes.

What constitutes a Consumer Transaction (3)?

A solicitation or promotion by a supplier with respect to a transaction referred to in clause 1.

What is the definition of Corrosive?

Any substance which on contact with living tissue will cause destruction of tissue by chemical action.

What is the definition of Cosmetics (1)?

Articles intended to be rubbed, poured, sprinkled, or applied to the human body for cleansing or beautifying.

What is the definition of Cosmetics (2)?

Articles intended for use as a component of any such cosmetic article, except that soap is excluded.

What is the definition of Device (1)?

An article or instrument recognized in the official United States Pharmacopoeia-National Formulary (USP-NF).

What is the definition of Device (2)?

An article intended for diagnosis, cure, mitigation, treatment, or prevention of disease in man or animals.

Who is considered a Distributor?

Any person to whom a consumer product is delivered or sold for distribution in commerce, except manufacturer or retailer.

What is the definition of Drugs?

Articles intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease.

What is the definition of Expiry or Expiration Date?

The date after which products are not expected to retain claimed safety, efficacy, quality, or potency.

What does Extremely Flammable mean?

Any substance which has a flash point at or below 20 degrees centigrade.

What does Combustible mean?

Any substance which has a flash point of above 26.6 degrees to and including 65.5 degrees centigrade.

What is the definition of Food?

Any substance processed, semi-processed or raw, intended for human consumption, including drinks and ingredients.

What is the definition of Generic Name?

Identification of drugs by their scientifically and internationally recognized active ingredients or official generic name.

What is the definition of Guarantee?

An expressed or implied assurance of the quality of the consumer products and services or length of satisfactory use.

What is the definition of Hazardous substance (1)(i)?

Substance which is toxic, corrosive, irritant... or generates pressure causing substantial injury to children.

What is the definition of Hazardous substance (1)(ii)?

Any substance which the department finds to be under the categories enumerated in clause 1(i).

What is the definition of Hazardous substance (1)(iv)?

Any toy or other articles for children with an electrical, mechanical or thermal hazard.

What is the definition of Highly Toxic (oral)?

Produces death within 14 days to one half or more of rats at 50 milligrams or less per kilogram.

What is the definition of Imminently hazardous product?

A consumer product which presents an unreasonable risk of death, serious illness or severe personal injury.

What is the definition of Irritant?

Any substance not corrosive which... will induce a local inflammatory reaction on normal living tissue.

What is the definition of Label, labeling?

The display of written, printed or graphic matter on any consumer product... for giving information.

What is the definition of Poisonous substance?

Any substance capable of destroying life or seriously endangering health... in moderate doses.

What is the definition of Price tag?

Any device... affixed or attached... for the purpose of indicating the retail price per unit or service.

What is the definition of Retailer?

A person engaged in the business of selling consumer products directly to consumers.

What is the definition of Toxic substance?

Any substance... which can cause injury, illness or death to man through ingestion, inhalation or absorption.

How is a Sales Act or Practice deemed Deceptive?

Seller induces a consumer into a transaction using concealment, false representation, or fraudulent manipulation.

When is it deceptive to represent a product's benefits?

Misrepresenting that a product has sponsorship, characteristics, uses, or benefits it actually lacks.

When is it deceptive to represent a product's condition?

Representing a product as new when it is deteriorated, altered, reconditioned, reclaimed, or second-hand.

When is a service or repair representation considered deceptive?

Claiming repair is needed for a consumer product when in fact it is not necessary.

When is a price advantage claim considered deceptive?

Claiming a specific price advantage exists for a product when it does not actually exist.

How is a Sales Act or Practice deemed Unfair or Unconscionable?

Seller takes advantage of a consumer's infirmity or ignorance to induce a grossly one-sided transaction.

What circumstance involves the consumer's inability to protect their interest?

Seller took advantage of the consumer's inability to understand the language of an agreement.

What circumstance involves a product's price being too high?

The price grossly exceeded the price at which similar products were readily obtainable.

What circumstance involves a lack of benefit to the consumer?

The consumer was unable to receive a substantial benefit from the transaction's subject.

What is required before a business can conduct a home solicitation sale?

A business must obtain a permit from the Department before conducting any home solicitation sale.

What are the prescribed hours for conducting a home solicitation sale?

Only between 9:00 AM and 7:00 PM on working days, unless the person solicited previously agreed.

What kind of representation is prohibited regarding buyer selection in home solicitation?

A home solicitation sale must not represent that the buyer has been specially selected.

What kind of representation is prohibited regarding research in home solicitation?

A home solicitation sale must not represent that a survey, test, or research is being conducted.

What is the general rule regarding the use of referral selling plans?

Referral selling plans shall not be used in the sale of consumer products.

What is the general rule regarding the display or distribution of packaged products?

Unlawful to display or distribute a consumer product whose package or label does not conform.

What is the minimum labeling requirement for its trade name?

Its correct and registered trade name or brand name.

What is the minimum labeling requirement for its business name?

Its duly registered business name.

What is the minimum labeling requirement for the manufacturer's address?

The address of the manufacturer, importer, or repacker in the Philippines.

What is the minimum labeling requirement for net quantity of contents?

The net quantity of contents in weight, measure, or count in the metric system.

How must information required by law appear on the label?

Must be conspicuous and likely to be read and understood by the ordinary individual.

What is a valid reason for a package to be slack-filled (1)?

Protection of the contents of such package.

What is a valid reason for a package to be slack-filled (2)?

Requirements of machines used for enclosing the contents in such package.

When must special packaging be required for the protection of children?

Hazard to children due to packaging requires special packaging to protect children from serious injury or illness.

What is the additional labeling requirement for food (2)?

If the food is semi-processed, fully processed, ready-to-cook, ready-to-eat, prepared, or a mixture.

What is the additional labeling requirement for food (3)?

Nutritive value, if any.

What is the additional labeling requirement for food (4)?

Whether the ingredients used are natural or synthetic.

What is the additional labeling requirement for cosmetics?

Whether or not it may be an irritant.

Which law applies to the labeling of drugs?

The Generics Act shall apply.

What is the required warning statement on cigarette packages?

"Warning: Cigarette Smoking is Dangerous to Your Health."

When is food deemed mislabeled if it is an imitation of another food?

If imitation, unless the label bears the word "imitation" and the name of the food imitated.

When is food deemed mislabeled if it claims a standard of identity?

If it claims a definition or standard of identity, it is mislabeled unless it conforms to that standard.

When is food mislabeled if it contains artificial ingredients?

If it contains artificial flavoring, coloring, or preservative, unless the labeling states that fact.

When is a cosmetic deemed mislabeled (e)?

if its label does not state the common or usual name of its ingredients.

When is a drug or device deemed mislabeled (d) (Narcotic)?

if... it contains... narcotic or hypnotic substance... unless its label bears the name and quantity... and "Warning-May be habit forming".

What Hazardous substance label statement is required for the seller?

Name and place of business of the manufacturer, packer, distributor, or seller.

What Hazardous substance label statement is required for identification?

Common or usual name or the chemical name of the hazardous substance.

What Hazardous substance label statement is required for first-aid?

Instructions when necessary or appropriate for first-aid treatment.

What Hazardous substance label statement is required for handling?

Instructions for handling and storage of packages which require special care.

What Hazardous substance label statement is required for injury?

A clear statement as to the possible injury it may cause if used improperly.

When is a hazardous substance deemed mislabeled (b.1.iii) (Signal Word)?

fails to bear a label... which states conspicuously: the signal word "danger" on substances extremely flammable, corrosive or highly toxic.

When is a hazardous substance deemed mislabeled (b.1.x) (Children)?

fails to bear a label... which states conspicuously: the statement "keep out of the reach of children".

When is a hazardous substance deemed mislabeled (b.2) (Location)?

on which any statement required... is not located prominently in bright red and orange color.

What is the Ground for Seizure of mislabeled hazardous substances?

Any mislabeled hazardous substance when introduced into commerce or while held for sale shall be liable to be... condemned.

Who is the Implementing Agency for Consumer Product and Service Warranty?

The Department of Trade and Industry.

What is the Applicable Law on Warranties?

The provisions of the Civil Code on conditions and warranties shall govern all contracts of sale.

What shall an express warranty set forth (1)?

set forth the terms of warranty in clear and readily understandable language and identify himself as the warrantor.

What shall an express warranty state (3)?

state the products or parts covered.

When are written warranties or guarantees operative?

All written warranties... shall be operative from the moment of sale.

What is the Sales Report requirement for warranties?

Distributors... shall be reported to the manufacturer... within 30 days from date of purchase.

What is the consequence if a distributor fails to make or send a sales report?

relieve the latter (manufacturer) of its liability under the warranty.

Who becomes liable if the distributor fails to send the sales report?

the distributor who failed to comply... shall be personally liable under the warranty.

When is the retailer subsidiarily liable under the warranty?

in case of failure of both the manufacturer and distributor to honor the warranty.

How are warranty rights enforced by the purchaser?

purchaser needs only to present... either the warranty card or the official receipt along with the product.

What must a written warranty clearly designate itself as?

conspicuously designate such warranty as: 1. "Full warranty"... or 2. "Limited warranty".

What is the minimum standard for warranties (1)?

remedy such consumer product within a reasonable time and without charge.

What is the minimum standard for warranties (2) (Election)?

permit the consumer to elect whether to ask for a refund or replacement... after a reasonable number of attempts.

What is the duration of any other implied warranty (new products)?

shall endure not less than 60 days nor more than 1 year.

What are the consumer's options in case of breach of express warranty?

consumer may elect to have the goods repaired or its purchase price refunded.

What is the fine for deceptive/unconscionable sales acts?

Fine P5,000 to P10,000.