M2 & 2A: Knowing Consumer Rights and Responsibilities

8 Basic consumer rights

1. Basic needs (food, shelter, health, education)

2. Safety (from hazardous products/services)

3. Information (truthful product details)

4. Choice (variety at competitive prices)

5. Representation (voice in policy/law)

6. Redress (compensation/replacement)

7. Consumer education (knowledge/skills)

8. Healthy environment (safe, clean, sustainable)

5 Key consumer responsibilities

1. Critical Awareness – Be alert about quality, price, use

2. Action – Assert rights; don’t be passive

3. Social Concern – Consider effects on poor/vulnerable

4. Environmental Awareness – Conserve resources/protect earth

5. Solidarity – Organize with others to promote interests

RA 7394

• Effective July 15, 1992

• Mandates state protection from trade malpractices and substandard/hazardous products

Declaration of Basic Policy

Protect consumer interests, promote general welfare, establish standards of conduct for business/industry

Measures the state must implement

Protection from hazards, false/unfair practices, info/education for wise choices, access to remedies, consumer participation in policy-making.

How RA 7394 must be interpreted

Always in the best interest of consumers

“Consumer” under RA 7394

A natural person (not corporation) who buys/leases/receives goods, services, or credit for personal, family, household, or agricultural use.

Implementing agencies

1. DOH/FDA - food, drugs, cosmetics, medical devices, substances

2. DA - agriculture

3. DTI - all other consumer products

What the Consumer Act says about product safety/labeling

State must set/enforce standards for goods/services for personal, family, household, or agricultural use.

Prohibited acts under Art. 18

1. Selling products not meeting safety standards

2. Selling banned products

3. Blocking inspections

4. Ignoring recall/repair/refund orders

5. Stockpiling prohibited goods

What a banned hazardous substance is

Any inherently dangerous toy/article for children or hazardous household substance classified as banned to protect public health, even if labeled.

What makes a sales act “deceptive”

Misleading/tricking a consumer before, during, or after a transaction (false claims, concealment, fraud).

When a sales act is “unfair/unconscionable”

When seller takes advantage of consumer’s weakness (ignorance, illiteracy, lack of time) for a one-sided deal.

Other banned practices

1. Pyramid schemes

2. Abusive home solicitation

3. Referral sales without written guarantees

Rules on weighing/measuring instruments

Must be tested, calibrated, sealed every 6 months by official sealer; must use metric system.

Prohibited acts on weighing/measuring instruments

Altering/faking seals, using unsealed or false instruments, giving short measure, misrepresenting weights.

What’s required on price tags

Clear price in pesos/centavos per unit; no erasures; visible placement. Price list allowed if tagging impractical.

Penalties for price tag violations

• 1st offense: Fine ₱200–₱5,000 or 1–6 months imprisonment

• 2nd offense: Revocation of business permit

What administrative sanctions DTI can impose

Cease-and-desist, voluntary compliance agreements, rescission, seizure, fines up to ₱300,000 plus ₱1,000/day for continuing violations.

When automatic price control applies

During disaster, calamity, emergency, martial law, rebellion, suspension of habeas corpus, war.

Who sets price ceilings

President upon Price Coordinating Council’s recommendation.

Penalties for noncompliance of price ceilings

Imprisonment 1–10 years, fine ₱5,000–₱1M

2 Types of warranties

1. Express

2. Implied

Express warranty

Specific written/verbal promise with terms/duration/service parts

Implied warranty

Automatic guarantee (fit for purpose, merchantable quality) at least 60 days to 1 year

3Rs of consumer rights under warranties

Right to repair

Replacement

Refund

Prohibited acts under Art. 72

Refusing or delaying warranty claims, removing warranty card, false advertising about warranty

When no warranty applies

Tiangge/surplus without receipts, buyer mishandling, change of mind, “as is where is” sales, second-hand goods, tax auctions.

Legality of “No Return, No Exchange”

No, because it’s deceptive. Consumers always have legal rights to return defective goods and claim remedies despite signs.

What a consumer can do regarding the “No Return, No Exchange”

File a complaint with DTI with names/addresses, violation details, remedy sought.

Consumer products and services

Goods, services, and credit primarily for personal, family, household, or agricultural purposes (including food, drugs, cosmetics, devices)

Consumer transaction

• Sale/lease/assignment or disposition of consumer products (except securities and contracts of insurance)

• Grant credit for personal, family, household, or agricultural purposes

• Solicitation or promotion by a supplier

Habeas Corpus

• "You shall have the body"

• A legal order issued by a court to a person detaining another, requiring them to bring the detainee to the court to explain the reason for detention and determine if the detention is lawful

• A fundamental right to protect against unlawful or arbitrary imprisonment and is guaranteed in the Philippine Constitution

Inherent

Existing in something as a permanent, essential, or characteristic attribute

Suspension of habeas corpus

Allows authorities to hold someone in jail without immediately bringing them before a judge to explain (usually only in extreme situations when public safety requires it)

Importance of price ceiling

Keep goods and services affordable for consumer

Merchantable quality

High enough quality to be sold in a market and is fit for the ordinary purposes for goods of that kind

As is where is

• Buyer purchases an item or property in its current state and location with no warranties or guarantees from the seller regarding its faults or defects

• The buyer accepts the responsibility for any existing or future problems after the sale