Consumer Act of the Philippines


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Consumer Act of the Philippines

  1. 1.  Consumer: refers to any individuals or households that use goods and services generated within the economy Consumer protection: a concept that are designed to ensure fair competition and the free flow of truthful information in the marketplace  Government - enacting & enforcement of laws  Non government – consumer activism Consumer protection laws: laws designed to prevent businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors and provide additional protection for the weak and those unable to take care of themselves
  2. 2. Basic PolicyIt is the policy of the State to protect the interest of the consumer, promote general welfare and to establish standards of conduct for business and industry
  3. 3. Objectives Protection against hazards to health and safety Protection against deceptive, unfair and unconscionable sales acts and practices Provision of information and education to facilitate sound choice and the proper Provision of adequate rights and means of redress Involvement of consumer representatives in the formulation of social and economic policies
  4. 4. Consumer Rights Right to basic needs Right to safety Right to information Right to choice Right to representation Right to redress Right to consumer education Right to a healthy environment
  5. 5. Declaration of PolicyThe duty of the State: to develop and provide safety and quality standards for consumer products, including performance or use-oriented standard codes of practice and method of tests To assist the consumer in evaluating the quality, including safety, performance and comparative utility of consumer products to protect the public against unreasonable risks to injury associated with consumer products to undertake research on quality improvement of products and investigation into causes and prevention of product related deaths, illness and injuries
  6. 6. Who are the agencies concerned? Department of Health: food, drugs, cosmetics, devices and substances Department of Agriculture: products related to agriculture Department of Trade & Industry: other consumer products not specified above
  7. 7. Art.7 Scope of implementingagencies requirements to performance, composition, contents, design, construction, finish, packaging of a consumer product requirements as to kind, class, grade, dimensions, weights, material requirements as to the methods of sampling, tests and codes used to check the quality of the products requirements as to precautions in storage, transporting and packaging requirements that a consumer product be marked with or accompanied by clear and adequate safety warnings or instructions, or requirements respecting the form of warnings or instructions
  8. 8. Art. 11. The Dep’t. shall also direct themanufacturer, distributor or seller of suchproduct to extend any or all of the followingremedies to the injured person: To bring such product in the conformity with the requirements of the applicable consumer product standards or to repair the defect in order to conform with the same To replace the product with a like or equivalent product which complies with the applicable consumer product standards which does not contain the defect To refund the purchase price of the product less a reasonable allowance for use; and To pay the consumer reasonable damages as may be determined by the department
  9. 9. Art. 15. Imported Products  (a) Any consumer product offered for importation into the customs of the Philippine territory shall be refused admission if such product: (1) fails to comply with an applicable consumer product quality and safety standard or rule; (2) is or has been determined to be injurious, unsafe and dangerous; (3) is substandard; or (4) has material defect.
  10. 10. Basic Policyto protect the health of the consumer by ensuring a safe and good quality of food, drugs, cosmetics and devices and to regulate their manufacture, sale, distribution and advertisement.
  11. 11. Art. 23 Adulterated Food(1) If it bears or contains any poisonous or deleterious substance which may render it injurious to health; but in case the substance is not an added substance, such food shall not be considered adulterated under this clause if the quantity of such substance does not ordinarily render it injurious to health;
  12. 12. (2) if it bears or contains any added poisonous or deleterious substance other than one which is (i) a pesticide chemical in or on a raw agricultural commodity, (ii) a food additive, (iii) a color additive, for which tolerances have been established and it conform to such tolerances;
  13. 13. (3)if it consists in whole or in part of any filthy, putrid or decomposed substance, or if it is otherwise unfit for food;
  14. 14.  (4)if it has been prepared, packed or held under unsanitary conditions whereby it may have become contaminated with filth, or whereby it may have been rendered injurious to health;
  15. 15.  (5) if it is, in whole or part, the product of a diseased animal or of an animal which has died other than by slaughter;
  16. 16. ARTICLE 24. Regulations ofUnprocessed Food The provincial municipal and city governments shall regulate the preparation and sale of meat, fresh fruits, poultry, milk, fish,vegetables and other foodstuff for public consumption, pursuant to the Local Government Code.
  17. 17. 1. The Department of Health has banned the use of potassium bromate as ingredient in the making of breads because of adverse reports concerning its safety.2. Use of poisonous food colors in making bagoong and other products. The BFAd has warned against the use of such dangerous dyes but manufactures continue to use them.
  18. 18. 3. Adulteration of hot dogs and similar products by the use of fillers such as flour to add bulk.4. Adulteration of rice by mixing high grade varieties with lower grade varieties.5. Sale of poultry products injected with water to make them heavier.
  19. 19. 6. Suspension of the importation of Rose Bowl canned foods from Malaysia was made by the Bureau of Customs. The BFAD said that a laboratory analysis of Rose Bowl canned squid found it “either deteriorated, decomposed or with strong offensive odor and with foreign matter inside.
  20. 20. 7. The Government agents seized 30 million worth of mislabelled whiskey from local liquor firm. These were allegedly mislabelled Johnny Walker Whiskey.8. FDA Case No. 54-75 Salvador Matienzo claimed that he bought a bottle of Royal Tru-Orange which contained foreign matter
  21. 21. ARTICLE 29. Adulterated Drugs and Devices(1) If it consists in whole or in part of any filthy,putrid, or decomposed substance which mayaffect its safety, efficacy, and good quality; or(2) if it has been manufactured, prepared orheld under unsanitary conditions whereby itmay have been contaminated with dirt or filthor whereby it may have been renderedinjurious to health; or(3) it is container is composed, in whole or inpart, of any poisonous or deleterioussubstance which may render the contentsinjurious to health; or
  22. 22.  (4) if it bears or contains any color other than a permissible one as determined by the Department, taking into consideration standards of safety, efficacy, and good quality. its strength differs from, or its safety, efficacy, quality or purity falls below the standards set forth If a drug or device and any substance has been mixed or packed therewith, or any substance has been substituted wholly or in part thereof, so as to reduce its safety, efficacy, quality, strength or purity.
  23. 23. Art.32. Dangerous DrugsThe importation, distribution, manufacture, production, compounding, prescription, dispensing and sale of, and other lawful acts in connection with, dangerous drugs of such kind and quantity as may be deemed necessary according to the medical and research needs of the country and the determination of the quantity/quantities to be imported, manufactured and held in stock at any given time by an authorized importer, manufacturer or distributor of dangerous drugs shall be under the jurisdiction and authority of the Dangerous Drugs Board as provided for by existing laws and regulations.
  24. 24. ARTICLE 33. Banned or Restricted Drugs Banned or severely restricted drugs for health and safety reasons in their country of origin shall be banned and confiscated or its uses severely restricted, whichever is appropriate, by the Department. The Department shall monitor the presence in the market of such drugs and cause the maintenance and regular publications of an updated consolidated list thereof.
  25. 25. ARTICLE 35. Adulterated Cosmetics a) if it bears or contains any poisonous or deleterious substance which may render it injurious to users under the condition of use prescribed in the labeling thereof b) if it consists in whole or in part of any filthy putrid, or decomposed substance c) if it has been prepared, packed or held under unsanitary conditions whereby it may have become contaminated with filth, or whereby it may have been rendered injurious to health.
  26. 26. d) if its container is composed, in whole or in part, of any poisonous or deleterious substance which may render the contents injurious to health.e) if it is not a hair dye, and it bears or contains color additive other than which is permissible.f) if any of its substances have been (1) mixed or packed therewith so as to reduce its quality or strength or (2) substituted wholly or in parts therefor.
  27. 27. Hazardous SubstanceAny substance or mixture ofsubstances which is toxic,corrosive, irritant, a strongsensitizer, flammable orcombustible or generatespressure throughdecomposition, heat orother means, if such substanceor mixture or substances maycause substantial injury orsubstantial illness
  28. 28. Declaration of PolicyThe State shall adopt measures designed to protect the consumer against substances other than food, drugs, cosmetics and devices that are hazardous to his health and safety.
  29. 29. ARTICLE 46. Prohibited Actsa) introduce or deliver for introduction into commerce of any mislabeled hazardous substance or banned hazardous substance;b) alter, mutilate, destroy, obliterate or remove the whole or any part of the label of a mislabeled hazardous substance, or banned hazardous substance, if such act is done while the substance is in commerce or while the substance is held for sale, whether or not it is the first sale;c) receive in commerce any mislabeled hazardous substance or banned hazardous substance and the delivery or preferred delivery thereof at cost or otherwise;
  30. 30. d) give false guaranty to a person who relied upon such guaranty or undertaking which he received in good faith;e) introduce or deliver for introduction into commerce or receive in commerce and subsequently deliver or preferred at cost or otherwise, or a guaranty or undertaking in a reused food, drug, cosmetic or device container or in a container which, though not a reused container, is identifiable as a food, drug, cosmetic or device container by its labeling or by other identification.
  31. 31. Declaration of Policy The State shall promote and encourage fair, honest and equitable relations among parties in consumer transactions and protect the consumer against deceptive, unfair and unconscionable sales acts or practices.
  32. 32. Deceptive actsa consumer product or service has the sponsorship, approval, performance, characteristics, ingredients, accessories, uses, or benefits it does not have a consumer product or service is of a particular standard, quality, grade, style, or model when in fact it is not a consumer product is new, original or unused, when in fact, it is in a deteriorated, altered, reconditioned, reclaimed or second-hand state
  33. 33. a consumer product or service is available to the consumer for a reason that is different from the facta consumer product or service has been supplied in accordance with the previous representation when in fact it is not
  34. 34. that the producer,manufacturer,distributor, supplier orseller took advantageof the inability of theconsumer toreasonably protect hisinterest because of hisinability to understandthe language of anagreement, or similarfactors
  35. 35. thatwhen the consumer transaction was entered into, the price grossly exceeded the price at which similar products or services were readily obtainable in similar transaction by like consumers
  36. 36. that when the consumer transaction was entered into, the consumer was unable to receive a substantial benefit from the subject of the transaction
  37. 37. Unfair/Unconscionable Sales Act that when the consumer was entered into, the seller or supplier was aware that there was no reasonable probability or payment of the obligation in full by the consumer that the transaction that the seller or supplier induced the consumer to enter into was excessively one-sided in favor of the seller or supplier
  38. 38. ARTICLE 53. Chain Distribution Plans or Pyramid Sales SchemesChain distributionplans or pyramidsales schemesshall not beemployed in thesale of consumerproducts
  39. 39. ART 54. Home Solicitation SalesNo business entity shall conduct anyhome solicitation sale of anyconsumer product or service withoutfirst obtaining a permit from theDepartment. Such permit may bedenied, suspended or revoked uponcause as provided in the rules andregulations promulgated by theDepartment, after due notice andhearing.
  40. 40. Cases close to home Chinese milk scandal was a food safety incident in the Peoples Republic of China involving milk and infant formula, and other food materials and components, adulterated with melamine Toys made in China recalled for containing lead which could cause brain damage A Filipino-American nurse has filed a complaint against the Belo Medical Group over an alleged botched skin tightening procedure done on her
  41. 41. Other Relevant Cases In December 2006, a consumer complained to the U.S. Consumer Product Safety Commission that magnets could come loose from Mega Brands Magna-Man action figures. When the tiny, powerful magnets come loose and are swallowed, they can connect inside a child and rip through intestines. The 1982 Chicago Tylenol murders occurred when seven people died after taking pain- relief capsules that had been poisoned
  42. 42. Other Relevant Cases April 2007: Nestle voluntarily recalled its "Caramel Kit Kat Chunky" bars and "KitKat Cookie Dough Chocolate" bars due to some bits of hard plastic being found in the chocolate. Ireland and United Kingdom (24 June 2006): Cadbury-Schweppes announced that there has been a salmonella scare in their products, causing millions of chocolate bars from stores across Ireland and the UK to be recalled.
  43. 43. Other Relevant Cases WASHINGTON, DC, Aug. 9, 2000 -- Saying the safety of consumers is the company’s first concern, today Bridgestone/Firestone, Inc., announced a voluntary recall of all Firestone Radial ATX and Radial ATX II tires in size P235/75R15 produced in North America, including Mexico, & Wilderness AT tires in size P235/75R15 produced at the Decatur, Illinois plant. When under inflated, all radial tires generate excessive heat," Crigger said. "Driving on tires in this condition can lead to tread separation.
  44. 44. ARTICLE 61. ImplementingAgencyThe provincial, city, or municipal treasurers shall strictly enforce the provisions of this Chapter, and its implementing rules and regulations:
  45. 45. ART 62. Sealing and Testing ofInstruments of Weights andMeasures Allinstruments for determining weights and measures in all consumer and consumer related transactions shall be tested, calibrated and sealed every six (6) months by the official sealer who shall be the provincial or city or municipal treasurer or his authorized representative upon payment of fees required under existing law:
  46. 46. Art.68 A).Terms of Express Warranty Any seller or manufacturer who gives an express warranty shall: 1) set forth the terms of warranty in clear and readily understandable language and clearly identify himself as warrantor; 2) identify the party to whom the warranty is extended; 3) state the products or parts covered;
  47. 47. 4) state what the warrantor will do in theevent of a defect, malfunction of failure toconform to the written warranty and atwhose expense;5) state what the consumer must do toavail of the rights which accrue to thewarranty; and6) stipulate the period within which, afternotice of defect, malfunction or failure toconform to the warranty, the warrantor willperform any obligation under the warranty.
  48. 48. Designation of warranties"Full warranty“ "Limited warranty"
  49. 49. Breach of warranties(1) In case of breach of express warranty,the consumer may elect to have the goodsrepaired or its purchase price refunded bythe warrantor. In case the repair of theproduct in whole or in part is elected, thewarranty work must be made to conformto the express warranty within thirty (30)days by either the warrantor or hisrepresentative.
  50. 50. In case of breach of implied warranty, the consumer may retain in the goods and recover damages, or reject the goods, cancel and contract and recover from the seller so much of the purchase price as has been paid, including damages.
  51. 51. ARTICLE 69. Warranties in Supplyof Servicesa) In very contract for the supply ofservices to a consumer made by aseller in the course of a business, thereis an implied warranty that the serviceswill be rendered with due care and skilland that any material supplied inconnection with such services will bereasonably fit for the purpose for whichit is supplied.
  52. 52. ARTICLE 72. Prohibited Actsa) refusal without any valid legal cause by the localmanufacturer or any person obligated under thewarranty of guarantee to honor a warranty orguarantee issued;b) unreasonable delay by the local manufactureror any person obligated under the warranty orguarantee in honoring the warranty;c) removal by any person of a products warrantycard for the purpose of evading said warrantyobligation;d) any false representation in an advertisement asto the existence of a warranty or guarantee.
  53. 53. Declaration of PolicyThe State shall enforce compulsory labeling,and fair packaging to enable the consumer to obtain accurate information as to the nature, quality and quantity of thecontents of consumer products and to facilitate his comparison of thevalue of such products
  54. 54. ARTICLE 77. Minimum LabelingRequirements for Consumer Products a) its correct and registered trade name or brand name; b) its duly registered trademark; c) its duly registered business name; d) the address of the manufacturer, importer, repacker of the consumer product in the Philippines;
  55. 55. e) its general make or activeingredients;f) the net quantity of contents, in termsof weight, measure or numerical countrounded of to at least the nearesttenths in the metric system;g) country of manufacture, if imported;andh) if a consumer product ismanufactured, refilled or repackedunder license from a principal, thelabel shall so state the fact.
  56. 56. The following may be requiredby the concerned department:a) whether it is flammable orinflammable;b) directions for use, ifnecessary;c) warning of toxicity;d) wattage, voltage oramperes; ore) process of manufactureused, if necessary.
  57. 57. ARTICLE 78. Philippine ProductStandard Mark
  58. 58. ARTICLE 80. Special Packaging ofConsumer Products for theProtection of Children a) the degree or nature of the hazard to children
  59. 59. ARTICLE 84. Additional LabelingRequirements for Fooda) expiry or expiration date, where applicable;b) whether the consumer product is semi-processed, fully processed, ready-to-cook, ready–to eat, prepared food or just plain mixture;c) nutritive value, if any;d) whether the ingredients used are natural orsynthetic, as the case may be;e) such other labeling requirements as theconcerned department may deem necessaryandreasonable.
  60. 60. ARTICLE 87. Additional LabelingRequirements for Cosmeticsa) expiry or expiration date;b) whether or not it may be an irritant;c) precautions or contra-indications;andd) such other labeling requirements asthe concerned department may deemnecessary andreasonable.
  61. 61. ARTICLE 94. Labeling Requirements of CigarettesAll cigarettes for sale or distributionwithin thecountry shall be contained in apackage which shall bear thefollowing statement or its equivalent inFilipino: "Warning" Cigarette Smokingis Dangerous to your Health".
  62. 62. ARTICLE 100. Liability for Productand Service Imperfection If the imperfection is not corrected within thirty (30) days, the consumer may alternatively demand at his option: a) the replacement of the product by another of the same kind, in a perfect state of use; b) the immediate reimbursement of the amount paid, with monetary updating, without prejudice to any losses and damages; c) a proportion price reduction.
  63. 63. ARTICLE 110. False, DeceptiveAnd Misleading AdvertisementAdvertisement shall be false,deceptive or misleading if it is not inconformity with the provisions ofthis Act or if it is misleading in amaterial respect.
  64. 64. ARTICLE 111. Price ComparisonComparative priceadvertising by sellersof consumer productsof services shallconform to a ninety(90) days periodbefore, after or withinthe time ofadvertisement
  65. 65. ARTICLE 115. Special ClaimsAny advertisementwhich makesspecial claims shall;a) substantiatesuch claims; andb) properly useresearch results,scientific term,statistics orquotations.
  66. 66. ARTICLE 127. MinimumRequirements for Accreditationa) the duly registered business name, firmname or style of the firm;b) date of issue and effectively of thecertificate of accreditation;c) number and skills of technical personnel;andd) required license for the repair or servicesof any consumer product as required byspeciallaws.
  67. 67. Questions? - END -