R.A 7394 "CONSUMER ACT OF THE PHILIPPINES"

What is RA 7394 officially called, and when was it approved?

The Consumer Act of the Philippines, approved April 13, 1992

List the 5 objectives in RA 7394's Declaration of Basic Policy (Article 2)

Protection against health/safety hazards, protection against deceptive/unfair/unconscionable sales acts, provision of information and education, provision of adequate redress, and involvement of consumer representatives in policy formulation

Under RA 7394 Article 4, who is a "consumer"?

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

Under RA 7394, what are "chain distribution plans" or "pyramid sales schemes"?

Sales devices where a person, upon making an investment, is granted the right to recruit others for profit who make similar investments, with profits derived primarily from recruitment rather than actual sales

What is a "home solicitation sale" under RA 7394?

A consumer sale personally solicited by phone, in person, or in writing, and consummated away from the seller's regular place of business

What is an "imminently hazardous product" under RA 7394?

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

What is a "counterfeit product" under RA 7394?

A product or its container/labeling that, without authorization, bears the trademark/trade name of a manufacturer other than who actually made it, falsely representing origin

Which government agency implements RA 7394's Consumer Product Quality and Safety provisions for food, drugs, cosmetics, and devices?

The Department of Health (DOH)

Which government agency implements RA 7394's Consumer Product Quality and Safety provisions for agricultural products?

The Department of Agriculture (DA)

Which government agency implements RA 7394's Consumer Product Quality and Safety provisions for all other consumer products?

The Department of Trade and Industry (DTI)

Under RA 7394 Article 10, within how many hours must a hearing be given after an imminently hazardous product is ordered recalled/banned/seized?

48 hours

Under RA 7394, what is the maximum period before a new consumer product safety standard/rule must take effect after promulgation?

90 days

RA 7394 Article 19 penalty: violating basic prohibited acts on consumer product standards (Article 18)

Fine of ₱1,000 to ₱10,000, or imprisonment of 2 months to 1 year, or both

Under RA 7394, which department enforces food, drugs, cosmetics, and devices provisions (Chapter II)?

The Department of Health

RA 7394 Article 41 penalty: violating prohibited acts on food, drugs, cosmetics, and devices (Article 40)

Imprisonment of 1 to 5 years, or a fine of ₱5,000 to ₱10,000, or both

Under RA 7394, what happens to a drug/device sold or offered for sale beyond its expiration date?

It is a prohibited act under Article 40(l)

RA 7394 Article 47 penalty: violating prohibited acts on hazardous substances (Article 46)

A fine of at least ₱1,000, or imprisonment of 6 months to 5 years, or both

Under RA 7394, what agency enforces the Hazardous Substances chapter (Chapter III)?

The Department of Health

Under RA 7394 Article 50, what is a "deceptive" sales act or practice?

An act where a seller/supplier, through concealment, false representation, or fraudulent manipulation, induces a consumer to enter into a sale or lease transaction

Under RA 7394 Article 52, what is an "unfair or unconscionable" sales act or practice?

An act where the seller takes advantage of the consumer's physical/mental infirmity, ignorance, illiteracy, lack of time, or surrounding conditions to induce a transaction grossly one

What is the key difference between a "deceptive" and an "unfair/unconscionable" sales act under RA 7394?

Deceptive acts involve false representation or concealment of facts; unfair/unconscionable acts involve exploiting the consumer's vulnerability or inability to protect their own interest

Under RA 7394, are chain distribution plans/pyramid sales schemes allowed?

No, they are prohibited under Article 53

Under RA 7394 Article 55, during what hours may home solicitation sales be conducted?

Between 9:00 AM and 7:00 PM of each working day

Under RA 7394 Article 60, penalty for violating deceptive/unfair/unconscionable sales acts provisions (Title III, Chapter I)

Fine of ₱500 to ₱10,000, or imprisonment of 5 months to 1 year, or both

Under RA 7394, who enforces the chapter on deceptive, unfair, and unconscionable sales acts?

The Department of Trade and Industry

Under RA 7394, how often must weighing/measuring instruments be tested, calibrated, and sealed?

Every 6 months

Under RA 7394, what system of weights and measures is legally required for all consumer transactions?

The metric system

RA 7394 Article 65(a) penalty: forging/altering official weights and measures seals

Fine of ₱200 to ₱1,000, or imprisonment up to 1 year, or both

RA 7394 Article 65(b) penalty: using an unsealed scale/balance/weight for the first time

Fine of at least ₱500, or imprisonment of 1 month to 5 years, or both

RA 7394 Article 65(c) penalty: fraudulently altering a scale/weight or giving short weight

Fine of at least ₱300, or imprisonment up to 1 year, or both

Under RA 7394, who enforces the metric system requirement specifically?

The Department of Trade and Industry (other weights/measures provisions are enforced by local treasurers)

Under RA 7394 Article 68, what must a written express warranty clearly state?

The warrantor's identity, products covered, what will be done in case of defect, what the consumer must do, and the time period for the warrantor to act

Under RA 7394, what is the difference between a "full warranty" and a "limited warranty"?

A full warranty meets the Article 68(d) minimum standards; a limited warranty does not

Under RA 7394, how many days does an implied warranty on new consumer products last, at minimum and maximum?

Not less than 60 days, not more than 1 year, following the sale

Under RA 7394 Article 68(f), within how many days must warranty repair work conform to the express warranty?

30 days (extendable for reasons beyond the warrantor's control)

Under RA 7394 Article 71, for how long must service firms guarantee workmanship and spare parts?

Not less than 90 days

RA 7394 Article 73(a) penalty: violating the Civil Code warranty provisions (Article 67)

Fine of ₱500 to ₱5,000, or imprisonment of 3 months to 2 years, or both; a 2nd conviction adds revocation of business permit/license

RA 7394 Article 73(b) penalty: other illegal acts under the Warranties chapter (Chapter III, except Article 67)

Fine of ₱1,000 to ₱50,000, or imprisonment of 1 to 5 years, or both

Under RA 7394 Article 81, what must every consumer product for retail sale display?

An appropriate price tag, label, or marking indicating its price

Under RA 7394, list 4 of the minimum labeling requirements for consumer products (Article 77)

Correct trade/brand name, registered trademark, manufacturer's address, and net quantity of contents in the metric system

RA 7394 Article 95(a) penalty: violating labeling/packaging rules (food, cosmetic, drug, device, or hazardous substance)

Fine of ₱500 to ₱20,000, or imprisonment of 3 months to 2 years, or both

RA 7394 Article 95(a) penalty: violating labeling/packaging rules for non

food/drug/cosmetic/device/hazardous products

RA 7394 Article 95(b) penalty: first

time price tag violation (Articles 81–83)

Under RA 7394 Article 97, when is a manufacturer/producer/importer liable for a defective product?

Independently of fault, for damages caused by defects in design, manufacture, construction, or inadequate information on use/hazards

Under RA 7394 Article 100, within how many days must a product imperfection be corrected before the consumer may demand replacement, refund, or price reduction?

30 days

Under RA 7394 Article 100, what is the legally allowed range for the parties to agree to extend or reduce the 30

day correction period?

RA 7394 Article 107 penalty: violating the Liability for Products and Services chapter (non

food/cosmetic/hazardous items)

Under RA 7394 Article 110, what makes an advertisement "false, deceptive, or misleading"?

If it is not in conformity with the Act or is misleading in a material respect, including failing to reveal material facts

Under RA 7394 Article 116, how many calendar days before a national sales promotion campaign must a permit be secured from DTI?

At least 30 calendar days

Under RA 7394 Article 116, within how many days will a promotion permit application be deemed approved if there is no objection?

15 days from filing

Under RA 7394, are sales promotions using medical prescriptions for raffles allowed?

No, this is explicitly prohibited and no permit shall be issued for it

Under RA 7394 Article 121, within how many weeks after determining sales promotion winners must the announcement/publication be made?

Not later than 2 weeks

RA 7394 Article 123(a) penalty: violating false/deceptive advertising provisions (Articles 110–115)

Fine of ₱500 to ₱5,000, or imprisonment of 1 to 6 months, or both

RA 7394 Article 123(b) penalty: violating sales promotion provisions (Articles 116–121)

Fine of ₱200 to ₱600, or imprisonment of 1 to 6 months, or both

Under RA 7394, what body must accredit repair and service firms and their technical personnel?

The Department of Trade and Industry

Under RA 7394 Article 137, can a consumer prepay a consumer credit obligation early without penalty?

Yes, the consumer has the right to prepay in full or in part at any time without penalty

RA 7394 Article 147 penalty: creditor's failure to disclose required credit information

Liable for ₱1,000 or twice the finance charge, whichever is greater, capped at ₱3,000, plus actual damages

Under RA 7394 Article 147, within what period must an action to recover the non

disclosure penalty be filed?

Under RA 7394 Article 148–149, what body was created to coordinate consumer programs, and who sits on it?

The National Consumer Affairs Council (NCAC) — composed of DTI, DECS, DOH, DA, 4 consumer group representatives, and 2 business sector representatives

Under RA 7394, who provides the Secretariat for the National Consumer Affairs Council?

The Department of Trade and Industry

Under RA 7394 Article 151, what is the per

meeting and monthly cap on allowances for NCAC members?

Under RA 7394 Article 160, what is the maximum number of consumer arbitration officers allowed per province?

10 (including the National Capital Region)

Under RA 7394 Article 161, what are the minimum qualifications of a consumer arbitration officer?

A college graduate with at least 3 years of experience in consumer protection, and of good moral character

Under RA 7394 Article 163, within how many days must a consumer arbitration officer decide a complaint after investigation is terminated?

15 days

Under RA 7394 Article 164, what is the administrative fine range a Secretary may impose on a respondent, and what is the daily penalty for continuing violation?

₱500 to ₱300,000 depending on gravity, plus up to ₱1,000 for each day of continuing violation

Under RA 7394 Article 165, within how many days must an order of a consumer arbitration officer be appealed to become non

final?

Under RA 7394 Article 166, within how many days must the Department Secretary decide an appeal?

30 days from receipt

Under RA 7394 Article 169, what is the prescriptive period for consumer complaints/claims?

2 years from the time the transaction was consummated, or from discovery in case of hidden defects

Under RA 7394 Article 173, how long after publication does the Consumer Act take effect?

30 days after publication in the Official Gazette