8 Basic Consumer Rights

3.0 Consumer Protection (RA 7394) 1. basic needs

“The best interest of consumer 2. safety
3.1 Consumer Product Quality and Safety shall be considered” 3. information
4. choose
protect the interests of the consumer 5. representation
Purpose: promote his general welfare 6. redress - “remedy” or “compensation"
establish standards of conduct for business & industry 7. consumer education
8. healthy environment
Objectives:
1 Protection against hazards to health & safety, deceptive, unfair & unconscionable sales acts & practices
2 Provision of info & education to facilitate sound choice & the proper exercise of rights by the consumer
adequate rights & means of redress
3 Involvement of consumer representatives in the formulation of social & economic policies

3.2 Deceptive Sales Acts and Practices

implementing agency: fair
DTI promote and encourage honest relations among parties in consumer transactions
The State shall equitable
protect the consumer against deceptive, unfair and unconscionable sales acts or practices

Deceptive Sales Acts or Practices violates the Act whether it occurs before, during or after the transaction
producer
manufacturer concealment
supplier or false representation of induces a consumer to enter into a sales or lease transaction
seller, thru fraudulent manipulation of any consumer product or service.
 Examples: has the sponsorship, approval, performance, characteristics, ingredients, accessories,
uses, or benefits it does not have
consumer product or service of a particular standard, quality, grade, style or model when in fact, it is not
available to the consumer for a reason that is different from the fact
can be supplied in a quantity greater than the supplier intends

consumer product is new, original or unused when in fact, it is in a deteriorated, altered, reconditioned,
reclaimed or second-hand state
a service or repair is needed when in fact it is not

a specific price advantage of a consumer of product exists when in fact it does not
sales act or practice involves or does not involve a warranty, a disclaimer of warranties, particular warranty
terms or other rights, remedies or obligations if the indication is false
the seller or supplier has a sponsorship, approval, or affiliation he does not have

violates the Act whether it occurs

Unfair or Unconscionable Sales Acts or Practice
before, during or after the transaction

physical or mental infirmity

producer
ignorance induces a consumer to enter into a
manufacturer taking advantage of - lack of time sales or lease transaction grossly
supplier or the consumers illiteracy inimical to the interest of the
seller
general conditions of consumer or grossly one-sided,
“PILI Co” the environment in favor of
 Consider the following:
producer manufacturer supplier or seller took advantage of the inability of the consumer to reasonably protect his interest
1. because of his inability to understand the language of an agreement

the price grossly exceeded the price at which similar product or services were readily
obtainable in a similar transaction by like consumers
2. when consumer transaction
consumer was unable to receive a substantial benefit from the subject of the transaction
was entered
the seller or supplier was aware that there was no reasonable probability or payment of
the obligation in full by the consumer

Chain Distribution Plans or Pyramid Sales Schemes shall not be employed in the sale of consumer products

Home Solicitation Sales shall not be conducted without first obtaining a permit from the Dept.
with proper receipts
between 9:00AM and 7:00 of each working days
When:
or other prescribed hours where the person solicited previously agreed

By Whom: a person who has the proper identification and authority from his principal

the buyer has been specially selected

Prohibited Representations: a survey, test or research is being conducted
making a special offer to a few persons only for a limited period of time

Referral Sales General rule: shall not be employed in the sale of consumer products
Exception: seller executes a written undertaking

that will grant a specified compensation or other benefit to said buyer in return for each and every
transaction consummated by said seller with the persons referred by said buyer or for subsequent sales
that said buyers has helped the seller into
 Penalties Fine - P5,000 to P10,000
or both at the discretion of the court
Imprisonment - not more than 1 year

implementing agency: DTI

3.3 Product Service and Warranty
Governed by Law on Sales

Additional Provisions: clear/readily understandable language

cleary identified warrantor/to whom it extends
a. terms of express warranty E products or parts covered
warrantor will do in the event of
defect
malfunction and
at whose expense
consumer must do to avail of the rights which accrue to the warranty
operative from moment of sale
period for warrantor to perform obligation after notice of defect
b. express warranty
sales report - distributor shall be reported within 30 days, unless otherwise agreed upon

failure to do so shall relieve the manufacturer, producer, or importer of its liabilities under the warranty
distributor will be liable
shall shoulder the expenses and costs
retail - retailer shall be subsidiarily liable under the warranty in case of failure of both the manufacturer and
distributor to honor the warranty warranty card or official receipt
enforcement of warranty or guarantee - warranty rights can be enforced by presentment of claim

record of purchase - keep a record of the purchase for such period of time corresponding to the lifetime
of the product’s respective warranties or guarantees
contrary stipulations - null and void
c. designation of warranties
Full warranty -meets the minimum requirements
clearly and conspicuously designated as Limited warranty
obvious to the eye or mind

d. minimum standards for warranties

remedy such consumer within a reasonable time and without charge in case of defect or malfunction

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
“warrantor will not be required to conform to a written warranty caused by damage due to unreasonable use”
e. duration of warranty
seller and consumer may stipulate the period for enforceable of express warranty
if implied warranty on merchantability accompanies an express warranty, both will be of equal duration

other implied warranty - not less than 60 days nor more than 1 year following the sale of new consumer products

the amount directly attributable to the use of the consumer

f. breach of warranties prior to the discovery of the non-conformity shall be deducted
purchase price refunded or
express warranty repairs - within 30 days by either warrantor or representative
can be extended by conditions which are beyond the control of warrantor/representative

retain the goods + damages

implied warranty -

reject the goods, cancel the contract and recover the purchase price paid + damages
Warranties in Supply of Services

rendered with due care and skill and any material supplied in connection with such
there is an implied warranty services will be reasonably fit for the purpose for which it is supplied
that the service will be such a nature or quality that they might be reasonably expected to achieve that
result, unless the circumstances show that the consumer does not rely or that is
unreasonable for him to rely, on the seller's skills or judgment
shall not apply to
Professional service CPAs, architects, engineers, lawyers, veterinarians, optometrists, pharmacists, nurses,
nutritionists, dieticians, physical therapists, salesman medical and dental practitioners
and other professional engaged in their respective professional endeavors

Guaranty of Service Firms indicated in the invoice

shall guarantee workmanship and replacement of spare parts for a period of not less than 90 days

refusal without any valid legal cause

unreasonable delay
Prohibited Acts
removal of a warranty card to evade warranty obligation
any false representation in an advertisement as to the existence of a warranty or guaranty

Fine - P500 to P5,000

Violation or both
Imprisonment of 3 years to 2 years
Penalties
Fine - P1,000 to P50,000 or both
Prohibited Acts
Imprisonment of 1 to 5 years

“The imposition of any penalties herein provided is without prejudice to any liability incurred under the warranty or guaranty.”
 implementing agency:
3.4 Labelling and Packaging DTI - all except DOH - food, drugs, cosmetics, devices and hazardous substances
DA - agricultural products
enforce compulsory labeling, & fair packaging to enable consumer to obtain accurate info as to the
Purpose: nature, quality, & quantity of the contents of consumer products & to facilitate his comparison of the
value of such products.

Prohibited acts:
to display or distribute or to cause to be displayed or distributed in commerce any
consumer product whose package or label does not conform to the provisions hereof

engage in packaging & labeling

persons engaged in prescribe or specify the manner in which such products are
shall not apply to:
wholesale or retail packaged or labeled or
distributors except having knowledge, refuse to disclose the source of the
mislabeled/mispackaged products

Minimum Labelling Requirements

correct and registered trade name or brand name

registered trademark
business name
address of the manufacturer, importer, repacker of the consumer product in the PH
its general make or active ingredients
net quality of contents, in terms of weight, measure or numerical count rounded of to at
least nearest tenths in the metric system
country of manufacturer, if imported
state if manufactured, refilled or repacked under license from a principal
May be required by the Department:
whether it is flammable/inflammable “shall form an integral part of the label
direction for use, if necessary without danger of being erased or detached
warning of toxicity under ordinary handling of the product”
wattage, voltage or amperes
process of manufacture used if necessary

Philippine Product Standard Mark: may contain this mark if certified to have passed the consumer product standard
prescribed by the concerned department

has the authority to provide for additional labeling and packaging requirements
establish and define standards for characterization of the size of a package
1 regulate the placement
prevent the non-functional slack-fill of packages

"filled to substantially less than its capacity for reasons other than
1. protection of the contents of such package
2. requirement of machines used for enclosing the contents in such package
3. inherent characteristics of package materials or construction being used
for export marked as not
International Commodity Clearance (ICC) - Imports except
imported but not for export for sale in the PH

Special Packaging for the Protection of Children

the degree or nature of the hazard to childrento protect them from serious personal injury or
serious illness resulting from handling and use of such product; and
technically feasible, practicable and appropriate for such product
 Additional Labeling Requirements

expiry or expiration date

Food semi-processed, fully processed, ready-to-cook, ready-to-eat, etc
nutritive value, if any
whether ingredients used are natural or synthetic
others if necessary and reasonable

expiry or expiration date

Cosmetics whether or not it may be an irritant
precautions or contra-indications and
others if necessary and reasonable

Drugs - Generics Act shall apply in a conspicuous place on every cigarette packaging

Cigarettes - “Warning: Cigarette Smoking is Dangerous To Your Health”

Fine - P20,000
Food/Cosmetic/Drug/Device/Hazardous Substance or both
Imprisonment - 3 months to 2 years
Penalties Fine - P200- P5,000
Not any of the above or both
Imprisonment - 1 month to 1 year
3.5 Consumer Rights
3.5.1 Price Tag Act Prohibited: to offer for retail sale to the public without an appropriate
price tag, label or marking publicly displayed.
3.5.2 Lemon Law
consumer products shall not be sold at a price higher than that stated therein and
without discrimination to all buyers

foreign currency is okay

Lumber -tagged or labeled by indicating the price and official name of the wood if the law allows it
Small consumer products- if too small or the nature of which makes it impractical to place a price tag, a price list
placed at the nearest point where the products are displayed

written clearly
Manners of Placing Price tag Placement indicate the price of the consumer product per unit and centavos

“There shall be no erasures or alterations of any sort of price tags, labels or markings.”

Penalties Fine - P200 to P5,000 or both

Imprisonment - 1 month to 6 months

"A second conviction shall also carry with it the penalty of revocation of business permit and license."