Consumer Protection Act, GIFT CHECK ACT, PHILIPPINE LEMON LAW

1.Protect the interests of the consumer;

2.Promote the general welfare of the consumer; and

3.Establish standards of conduct for business and industry.

BASIC POLICIES

July 15, 1992

Effectivity date

1. Protection against hazards to health and safety;

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

3.Provision of information and education to facilitate sound choice and the proper exercise of rights by the consumer;

4.Provision of adequate rights and means of redress; and Involvement of consumer representatives in the formulation of

social and economic policies.

OBJECTIVES

DEPARTMENT OF HEALTH

Concerned with Food, drugs, cosmetics, devices and substances

DEPARTMENT OF AGRICULTURE

Concerned with Products related to agriculture

DEPARTMENT OF TRADE AND INDUSTRY

Concerned with Other consumer products not specified above

DEPARTMENT OF EDUCATION

Concerned with Curriculum on consumer education and information

LOCAL GOVERNMENT UNITS

Concerned with Preparation and sale of meat, fresh fruits, poultry, milk, fish, vegetables and other foodstuff for public consumption

1. Regulations on adulterated foods

2. Tolerance on poisonous ingredients in food

3. Regulations on unsafe food additives

4. Regulations on adulterated drugs and devices

5. Regulations on adulterated cosmetics

6. Regulations declaring hazardous substances

7.Regulations on labeling and packaging

DUTIES OF DOH

1.Regulations on deceptive, unfair and unconscionable sales act or practice

2.Pyramid schemes

3.Home solicitation sales

4.Consumer product and service warranties

5.Regulations on labeling and packagings

DUTIES OF DTI

1. Calibration and sealing of all instruments for determining weights and measures in all consumer and consumer related transactions every six (6) months

DUTIES OF LGU

POWER TO RECALL

Whenever the departments find, by their own initiative or by petition of a consumer, that a consumer product is found to be injurious, unsafe or dangerous,

it shall, after due notice and hearing, make the appropriate order for its recall, prohibition or seizure from public sale or distribution

DECEPTIVE SALES ACT

•An act or practice shall be deemed deceptive whenever the producer, manufacturer, supplier or seller, through concealment, false representation of fraudulent manipulation, induces a consumer to enter into a sales or lease transaction of any consumer product or service. (ART. 50, RA 7394)

before, during or after the transaction

A deceptive act or practice by a seller or supplier in connection with a consumer transaction violates this Act whether it occurs _______________.

UNFAIR OR UNCONSCIONABLE SALES ACT

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.(ART. 52, RA 7394)

8 POINT TEST (PYRAMID SALES SCHEME)

1. Is there a product?

2. Are commissions paid on sale of products and not on registration/entry fees?

3. is the intent to sell a product not a position?

4. Is there no direct correlation between the number of recruits and compensation?

5. If recruitment were to be stopped today, would the participants still make money?

6. Is there a reasonable return policy?

7. Do products have a fair market value?

8. Is there a compelling reason to buy?

HOME SOLICITATION SALES

No business entity shall conduct any home solicitation sale of any

consumer product or service without first obtaining a permit from the

DTI.

SOLICITATION HOURS

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.

PROHIBITED REPRESENTATIONS IN HOME SOLICITATION SALES

1. The buyer has been specially selected;

2. A survey, test or research is being conducted; or

3. The seller is making a special offer to a few persons only for a limited period of time.

FULL WARRANTY

1) Remedy such consumer product within a reasonable time and without charge in case of a defect, malfunction or failure to conform to such written warranty;

2) Permit the consumer to elect whether to ask for a refund or replacement without charge of such product or part, as the case may be, where after reasonable number of attempts to remedy the defect or malfunction, the product continues to have the defect or to malfunction.

LIMITED WARRANTY

If the warranty does not meet the above requirements

1. REPAIR

2. REFUND

3. REPLACE

OPTIONS OF THE CONSUMER - BREACH OF EXPRESS WARRANTY

1. RETAIN

2. REJECT AND CANCEL

OPTIONS OF THE CONSUMER - BREACH OF IMPLIED WARRANTY

ART. 70

WARRANTIES INAPPLICABLE to PROFESSIONAL SERVICES

ART. 71

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.

ONE PRICE TAG REQUIREMENT

Every retailer is required to display a price tag to indicate the price of each consumer good and/or services

TRUE

(T/F)

When the consumer pays through credit/ATM/debit card, he shall pay only the price indicated in the price tag.

false

(NOT REQ)

(T/F)

All retailers who honor or accept credit, ATM, or debit cards for payment shall BE REQUIRE the cardholder to PAY A SURCHARGE or EXTRA CHARGE over and above the prices of consumer goods and services.

GIFT CHECK ACT

AN ACT REGULATING THE ISSUANCE, USE AND REDEMPTION OF GIFT CHECKS

GIFT CERTIFICATE OR GIFT CARD

Any instrument issued to any person, natural or juridical, for monetary consideration, honored upon presentation at a single merchant or an affiliated group of merchants as payment for consumer goods or services.

COUPON OR VOUCHER

Any instrument issued to any person, natural or juridical, for monetary consideration or otherwise, that entitles the holder to a discount off a particular good or service, or that may be exchanged for a pre- identified good or service specified on the instrument.

TRUE

(T/F)

I. Gift checks that are issued to consumers including, but not limited to, those under loyalty, rewards, or promotional programs are not covered by this act.

ii. Coupons or vouchers are likewise not covered by this Act

PHILIPPINE LEMON LAW

AN ACT STRENGTHENING CONSUMER PROTECTION IN THE PURCHASE OF BRAND NEW MOTOR VEHICLES

BRAND NEW MOTOR VEHICLE

a vehicle constructed entirely from new parts and covered by a manufacturer’s express warranty at the time of purchase that it has never been sold or registered with the (DOTC) or an appropriate agency or authority, and has never been operated on any highway of the Philippines, or in any foreign state or country

MOTOR VEHICLE

Any self-propelled, four (4) wheeled road vehicle designed to carry

passengers including, but not limited to:

1.Sedans

2.Coupes

3. Station wagons

4.Convertibles

5.Pick-ups

6.Vans

7.Sports utility vehicles (SUVs); and

8.Asian Utility Vehicles (AUVs)

NON-CONFORMITY

Any defect or condition that substantially impairs the use, value or safety of a brand new motor vehicle which prevents it from conforming to the manufacturer’s or distributor’s standards or specifications, which cannot be repaired,

• twelve (12) months

• twenty thousand (20,000) kilometers

PH LEMON LAW covers non conformity with the vehicle within ____________ from the date of .original delivery to the consumer, or up to _____________of operation after such delivery, whichever comes first.

FALSE

(T/F)

Damage to the vehicle due to accident or force majeure is covered by PH lemon law

TRUE

(T/F)

Modifications not authorized by the manufacturer, distributor, authorized dealer or retailer; is not covered by PH lemon law

TRUE

(T/F)

REPAIR ATTEMPTS, The repair may include replacement of parts components, or assemblies.

FALSE

(T/F)

if the vehicle is not returned for repair, based on the same complaint, within thirty (30) calendar days from the date of notice of release of

the motor vehicle to the consumer following this repair attempt within the Lemon Law rights period, the repair is deemed unsuccessful