CONSUMER ACT OF THE PHILIPPINES -​ c) requirements as to the

(RA 7394) methods of sampling, tests

-​ Protect the interests of the and codes used to check the
consumer, promote his general quality of the products;
welfare and to establish standards of -​ d) requirements as to
conduct for business and industry. precautions in storage,
-​ Towards this end, the State shall transporting and packaging;
implement measures to achieve the -​ e) requirements that a
following objectives: consumer product be marked
with or accompanied by clear
a) protection against hazards to health and adequate safety warnings
and safety; or instructions, or
requirements respecting the
b) protection against deceptive, unfair form of warnings or
and unconscionable sales acts and instructions.
practices;
Injurious, Dangerous and Unsafe Products
c) provision of information and
education to facilitate sound choice -​ If find by their own initiative or by
and the proper exercise of rights by petition of consumer:
the consumer; ●​ It shall after due notice and
hearing make the appropriate
d) provision of adequate rights and order for its recall, prohibition
means of redress; and or seizure from public sale or
distribution.
e) involvement of consumer
representatives in the formulation of Certification of Conformity to Consumer
social and economic policies. Product Standards

●​ The best interest of the consumer -​ The manufacturer shall avail of the
shall be considered in the Philippine Standard Certification
interpretation and implementation of Mark which the department shall grant
the provisions of this act. after determining the product’s
●​ The Act aims to provide protection compliance with the relevant standard
to consumers against hazards to in accordance with the implementing
health and safety, and deceptive, rules and regulations
unfair and unconscionable acts
and practices in sales.
DECEPTIVE, UNFAIR AND
UNCONSCIONABLE SALES ACTS OR
CONSUMER PRODUCT QUALITY AND PRACTICES
SAFETY
-​ The State shall promote and
Implementing Agencies: encourage fair, honest and
equitable relations among parties in
1.​ DOH (food, drugs, cosmetics, devices consumer transactions and protect the
and substances) consumer against deceptive, unfair
2.​ DA (products related to agriculture) and unconscionable sales acts or
3.​ DTI (other consumer products not practices.
specified above) -​ The DTI shall enforce the provisions of
●​ They shall establish consumer product this chapter
quality and safety standards which
shall consist of one or more of the Prohibition against deceptive sales acts or
following: practices:
-​ a) requirements to
performance, composition, -​ Deceptive act whenever the
contents, design, construction, producer, manufacturer, supplier or
finish, packaging of a seller, through concealment, false
consumer product; representation of fraudulent
-​ b) requirements as to kind, manipulation, induces a consumer
class, grade, dimensions, to enter into a sales or lease
weights, material; transaction of any consumer product
or service
 -​ Unfair or unconscionable sales act
whenever the producer, manufacturer,
distributor, supplier or seller, by taking Breach of warranties:
advantage of the consumer's
1.​ Breach of express warranty
physical or mental infirmity,
a.​ Goods be repaired
ignorance, illiteracy, lack of time or
b.​ Purchase price be refunded
the general conditions of the
less than depreciation
environment or surroundings,
c.​ Replacement of product
induces the consumer to enter into a
sales or lease transaction grossly 2. Breach of impress warranty
inimical to the interests of the
consumer or grossly one-sided in a.​ Retain in the goods and recover
favor of the producer, manufacturer, damages
distributor, supplier or seller. b.​ Reject goods, cancel the contract,
recover the purchase price plus
Art. 53: Chain Distribution plans or damages
pyramid sales schemes “Shall not be c.​ Atleast 60 days but not more than 1
employed in the sale of consumer year
products”
Warranties in supply of services:
Art 54: No business entity shall conduct
any home solicitation sale of any consumer a.​ Implied warranty - service will be
product or service without first obtaining a rendered with due care and skill
permit from the department (9 am - 7 pm) and any material supplied will be
reasonably fit for the purpose for
Penalties: which it is supplied
●​ Fine of not less than 500 but not Art 70. Warranty shall not apply to
more than 10k professional services because
●​ Imprisonment of not less than 5 professional services cannot be
months but not more than 1 year or guaranteed in the same way as
both manufactured goods.

Penalties:
PRODUCT SERVICE AND WARRANTY a.​ Not less than 500 pesos but not 5K
b.​ Imprisonment of not less than 3
-​ The DTI will implement this rules and
months but not more than 2 years or
regulations
both
-​ The conditions and warranties shall
govern all contracts of sale with
conditions and warranties
LABELING AND FAIR PACKAGING
Designation of warranties
-​ So to enable consumer to obtain
1.​ Full warranty - written warranty accurate information as to the
meets the minimum requirements nature, quality and quantity of the
2.​ Limited warranty - written warranty contents of consumer products and to
does not meet such minimum facilitate his comparison of the value
requirements of such products
●​ This prohibition shall not apply to
Minimum standards for warranties:
persons engaged in the business of
1.​ Remedy such consumer product wholesale or retail distributors
within a reasonable time and without ●​ The label may contain the Philippine
charge in case of a defect product standard mark if it is
2.​ Permit the consumer to elect whether certified to have passed the consumer
to ask for a refund or replacement product standard prescribed by the
without charge of such product or part concerned department

Note: the warrantor will not be required to Note: it shall be unlawful to offer any
perform the above duties if the defect was consumer product for retail sale to the public
caused by damage due to unreasonable without an appropriate price tag, label or
used marking publicly displayed to indicate the
price.
CONSUMER RIGHTS

I.​ Price tag act (RA 71)

-​ An act requiring price tags
or labels to be affixed on all
articles of commerce offered
for sale at retail and penalizing
violations of such requirement
-​ Penalty: imprisonment of not
more than 6 months or a
fine of not more than 200k
or both
II.​ The Philippine Lemon Law (RA
10642)
-​ Vehicles are major
investments and ensures
consumers are not burdened
with unsafe or defective
products
-​ An act strengthening
consumer protection in the
purchase of brand new
motor vehicles
(self-propelled 4-wheeled
road vehicle designed to
carry passengers) against
business and trade practices
which are deceptive, unfair or
otherwise inimical to
consumers and the public
interest

Covers: brand new motor vehicles purchased

in the Philippines reported by a consumer to
be in conformity with the vehicles
manufacturer or distributor’s standards or
specifications within 12 months from the
date of original delivery to the consumer,
or up to 20k kilometers of operation after
such delivery, whichever comes first.

Remedies:

a.​ manufacturers /dealer must repair the

defect within a reasonable number of
attempts
b.​ If defect persists after 4 repair
attempts within the first 12 months or
20,000km, the consumer may
demand:
●​ Replacement of the vehicle
●​ Refund of the purchase price

*It covers safety or quality defects that cannot

be repaired after at least 4 separate repair
attempts by the manufacturer, distributor,
dealer
PHILIPPINE COMPETITION ACT (RA 10667) entities hold which makes it capable
of controlling the relevant market
-​ An act providing for a national independently from any or
competition policy prohibiting combination of the following
anti-competitive agreements, abuse of -​ Dominant entity is prohibited from
dominant position and anti-competitive using its power in ways that
mergers and acquisitions, establishing substantially prevent, restrict, or
the philippine competition commission lessen competition
and appropriating funds therefor a.​ Predatory pricing - selling below cost
to drive competitors out
Scope and application
Except: done in good faith to meet a
-​ Enforceable against any person or
competitor’s lower price
entity engaged in any trade,
industry and commerce in the b.​ Barriers to entry - prevents
Philippines competitors from growing within the
-​ Applicable to international trade market
having direct, substantial and c.​ Tying or binding - forcing customers to
reasonably foreseeable effects in accept unrelated obligations or buy
trade, industry or commerce in the extra/products services
country, including those that result d.​ Price discrimination
from acts done outside the country. e.​ Imposing unfair purchase or selling
price
Philippine competition commission(pcc)

-​ An independent quadi-judicial body 3. Prohibited mergers and acquisition -

created to implement the national mergers that substantially prevent, restirct
competition policy and attain the or lessen competition in the relevant
objectives and purposes of this act market is prohibited
-​ DOJ is the competition authority
-​ It can also create monopolies or
Prohibited Acts even harm consumers

1.​ Anti-Competitive Agreements Covered Transactions

a.​ Agreements between or
among competitors are 1.​ Threshold for compulsory notification:
automatically prohibited: ●​ The value of the transaction
●​ Restricting competition exceeds 1 billion pesos are
as to price, or prohibited from consummating
components, or other their agreement until 30 days
terms of trade after providing notification to
(agreeing to set or fix the commission
prices) ●​ An agreement consummated
●​ Fixing price at an in violation of this requirement
auction or in any form shall be considered Void
of bidding 2.​ Notifying entity
b.​ Agreements which have effect -​ entities/parties involved
of substantially preventing, (acquiring and acquired
restricting or lessening entities
competition shall be 3.​ Period of Notifications
prohibited: ●​ 30 days after providing
●​ Production control notification
●​ Dividing or sharing the ●​ If the PCC request further
market information, will extend and
add another 60 days
Entities under common control (like ●​ In no case, the total period
subsidiaries of the same parent company) are should not exceed 90 days
not considered competitors under this
section. Burden of proof:

2. Abuse of Dominant Position -​ Lies with the parties seeking the

exemption
-​ Dominant position refers to a position
of economic strength that an entity or
INTELLECTUAL PROPERTY LAW

Patent - a grant issued by the government to

an inventor, designer or maker, the right to
exclude others from making, using or selling
his invention, design or utility model within the
country for a specific term, in exchange of his
patentable disclosure