M2B: Identifying the Standards of Business Conduct and Sales, Advertising, and Promotion Practices

Law that sets the minimum labeling requirements

Consumer Act, Article 74

What must appear on product labels

1. Brand name

2. Trademark

3. Business name

4. Company address

5. Ingredients

6. Net quantity

7. Country of origin

8. License info (if applicable)

How net quantity should be written

Metric system, rounded to the nearest tenth, with one decimal (1.85 → 1.9)

ICC

Import Commodity Clearance mark for imported products

Issues PS and ICC marks

Bureau of Philippine Standards (BPS)

Language labels must use

English or Filipino

Removable stickers

Not allowed, unless required by law

Advertising

Public sharing of information about a product through mass media

When ads are considered false or misleading

When it gives wrong information or hides important facts

Enforces advertising rules

DTI (general) and DOH/FDA (for food, drugs, cosmetics, devices)

What makes an ad false

1. Untrue statements

2. Half-truths

3. Missing product details

Special rules applied to health-related products

Claims must match approved labels and official standards

Food advertised

Should always be approved by the FDA

Sales promotion

Activities offering prizes or contests to encourage purchases

Enforces sales promotion rules

• DTI (most products)

• DOH (health-related products)

When a DTI permit should be secured

At least 30 days before the promo starts

How long before approval is automatic if there’s no response

15 days

Medical prescriptions used for promos

Medical prescriptions used for promos are not allowed

What promos should clearly state

Start/end dates, deadlines, and mechanics

Who must witness winner selection

DTI and the sponsor

When winners should be announced

Within 2 weeks

When the written notice is required for winners

If the prize is ₱500 or more

Are media companies liable for false ads

No, unless they refuse to reveal advertiser details

Responsible for misleading ads

Manufacturers, sellers, and ad agencies

Result if a promo is not registered

Fines, imprisonment, or both (RA 7394)

Government agency that ensures product safety

Food and Drug Administration (FDA)

What the FDA does

Inspections, licensing, product registration, and ad approval

Regulates fresh agricultural and fishery products

Bureau of Agriculture and Fisheries Standards (BAFS)

FDA approval requirement for medical devices

Yes, the FDA should approve medical devices even for online selling

Government’s policy on credit

Protect consumers by requiring clear disclosure of loan costs

What lenders should disclose

Loan amount, interest, and fees

What law requires full loan disclosure?

Truth in Lending Act (RA 3765)

What law regulates credit cards?

Access Devices Regulation Act of 1998

What credit card companies should disclose

APR (annual percentage rate), fees, interest computation, and contact numbers

Role of the BSP (Banko Sentral ng Pilipinas)

Supervises banks and protects consumers

Group that handles consumer protection in BSP

Consumer Affairs Group