LE III.

– PROTECTION AGAINST DECEPTIVE, UNFAIR ANDUNCONSCIONABLE SALES ACTS

OR PRACTICES

CHAPTER I
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In determining whether an act or practice is unfair and unconscionable, the following circumstances
shall be considered:

a) that the producer, manufacturer, distributor, supplier or seller took advantage of the
inability of the consumer to reasonably protect his interest because of his inability to
WRGBGHERHGEHERTHERTAHERTHERT sales shall only be conducted by a person who
has the proper identification and authority from his principal to make such solicitations.

Article 57. Receipts for Home Solicitation Sales. – Sales generated from home solicitation sales
shall be properly receipted as per existing laws, rules and regulations on sale transactions.

Article 58. Prohibited Representations. – A home solicitation sale shall not represent that:

a) the buyer has been specially selected;

b) a survey, test or research is being conducted; or

c) the seller is making a special offer to a few persons only for a limited period of time.

Article 59. Referral Sales. – Referral selling plans shall not be used in the sale of consumer
products unless the seller executes in favor of the buyer 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 enter into.

Article 60. Penalties. –

a) Any person who shall violate the provisions of Title III, Chapter I, shall upon conviction, be
subject to a fine of not less than Five Hundred Pesos (P500.00) but not more than Ten
Thousand Pesos (P10,000.00) or imprisonment of not less than five (5) months but not more
than one (1) year or both, upon the discretion of the court.

b) In addition to the penalty provided for in paragraph (1), the court may grant an injunction
restraining the conduct constituting the contravention of the provisions of Articles 50 and 51
and/or actual damages and such other orders as it thinks identification and authority from his
principal to make such solicitations.

Article 57. Receipts for Home Solicitation Sales. – Sales generated from home solicitation sales
shall be properly receipted as per existing laws, rules and regulations on sale transactions.

Article 58. Prohibited Representations. – A home solicitation sale shall not represent that:

a) the buyer has been specially selected;

b) a survey, test or research is being conducted; or

 c) the seller is making a special offer to a few persons only for a limited period of time.

Article 59. Referral Sales. – Referral selling plans shall not be used in the sale of consumer
products unless the seller executes in favor of the buyer 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 enter into.

Article 60. Penalties. –

a) Any person who shall violate the provisions of Title III, Chapter I, shall upon conviction, be
subject to a fine of not less than Five Hundred Pesos (P500.00) but not more than Ten
Thousand Pesos (P10,000.00) or imprisonment of not less than five (5) months but not more
than one (1) year or both, upon the discretion of the court.

b) In addition to the penalty provided for in paragraph (1), the court may grant an injunction
restraining the conduct constituting the contravention of the provisions of Articles 50 and 51
and/or actual damages and such other orders as it thinks identification and authority from his
principal to make such solicitations.

Article 57. Receipts for Home Solicitation Sales. – Sales generated from home solicitation sales
shall be properly receipted as per existing laws, rules and regulations on sale transactions.

Article 58. Prohibited Representations. – A home solicitation sale shall not represent that:

a) the buyer has been specially selected;

b) a survey, test or research is being conducted; or

c) the seller is making a special offer to a few persons only for a limited period of time.

Article 59. Referral Sales. – Referral selling plans shall not be used in the sale of consumer
products unless the seller executes in favor of the buyer 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 enter into.

Article 60. Penalties. –

a) Any person who shall violate the provisions of Title III, Chapter I, shall upon conviction, be
subject to a fine of not less than Five Hundred Pesos (P500.00) but not more than Ten
Thousand Pesos (P10,000.00) or imprisonment of not less than five (5) months but not more
than one (1) year or both, upon the discretion of the court.

b) In addition to the penalty provided for in paragraph (1), the court may grant an injunction
restraining the conduct constituting the contravention of the provisions of Articles 50 and 51
and/or actual damages and such other orders as it thinks identification and authority from his
principal to make such solicitations.

Article 57. Receipts for Home Solicitation Sales. – Sales generated from home solicitation sales
shall be properly receipted as per existing laws, rules and regulations on sale transactions.
Article 58. Prohibited Representations. – A home solicitation sale shall not represent that:

a) the buyer has been specially selected;

b) a survey, test or research is being conducted; or

c) the seller is making a special offer to a few persons only for a limited period of time.

Article 59. Referral Sales. – Referral selling plans shall not be used in the sale of consumer
products unless the seller executes in favor of the buyer 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 enter into.

Article 60. Penalties. –

a) Any person who shall violate the provisions of Title III, Chapter I, shall upon conviction, be
subject to a fine of not less than Five Hundred Pesos (P500.00) but not more than Ten
Thousand Pesos (P10,000.00) or imprisonment of not less than five (5) months but not more
than one (1) year or both, upon the discretion of the court.

b) In addition to the penalty provided for in paragraph (1), the court may grant an injunction
restraining the conduct constituting the contravention of the provisions of Articles 50 and 51
and/or actual damages and such other orders as it thinks identification and authority from his
principal to make such solicitations.

Article 57. Receipts for Home Solicitation Sales. – Sales generated from home solicitation sales
shall be properly receipted as per existing laws, rules and regulations on sale transactions.

Article 58. Prohibited Representations. – A home solicitation sale shall not represent that:

a) the buyer has been specially selected;

b) a survey, test or research is being conducted; or

c) the seller is making a special offer to a few persons only for a limited period of time.

Article 59. Referral Sales. – Referral selling plans shall not be used in the sale of consumer
products unless the seller executes in favor of the buyer 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 enter into.

Article 60. Penalties. –

a) Any person who shall violate the provisions of Title III, Chapter I, shall upon conviction, be
subject to a fine of not less than Five Hundred Pesos (P500.00) but not more than Ten
Thousand Pesos (P10,000.00) or imprisonment of not less than five (5) months but not more
than one (1) year or both, upon the discretion of the court.
 b) In addition to the penalty provided for in paragraph (1), the court may grant an injunction
restraining the conduct constituting the contravention of the provisions of Articles 50 and 51
and/or actual damages and such other orders as it thinks identification and authority from his
principal to make such solicitations.

Article 57. Receipts for Home Solicitation Sales. – Sales generated from home solicitation sales
shall be properly receipted as per existing laws, rules and regulations on sale transactions.

Article 58. Prohibited Representations. – A home solicitation sale shall not represent that:

a) the buyer has been specially selected;

b) a survey, test or research is being conducted; or

c) the seller is making a special offer to a few persons only for a limited period of time.

Article 59. Referral Sales. – Referral selling plans shall not be used in the sale of consumer
products unless the seller executes in favor of the buyer 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 enter into.

Article 60. Penalties. –

a) Any person who shall violate the provisions of Title III, Chapter I, shall upon conviction, be
subject to a fine of not less than Five Hundred Pesos (P500.00) but not more than Ten
Thousand Pesos (P10,000.00) or imprisonment of not less than five (5) months but not more
than one (1) year or both, upon the discretion of the court.

b) In addition to the penalty provided for in paragraph (1), the court may grant an injunction
restraining the conduct constituting the contravention of the provisions of Articles 50 and 51
and/or actual damages and such other orders as it thinks identification and authority from his
principal to make such solicitations.

Article 57. Receipts for Home Solicitation Sales. – Sales generated from home solicitation sales
shall be properly receipted as per existing laws, rules and regulations on sale transactions.

Article 58. Prohibited Representations. – A home solicitation sale shall not represent that:

a) the buyer has been specially selected;

b) a survey, test or research is being conducted; or

c) the seller is making a special offer to a few persons only for a limited period of time.

Article 59. Referral Sales. – Referral selling plans shall not be used in the sale of consumer
products unless the seller executes in favor of the buyer 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 enter into.
Article 60. Penalties. –

a) Any person who shall violate the provisions of Title III, Chapter I, shall upon conviction, be
subject to a fine of not less than Five Hundred Pesos (P500.00) but not more than Ten
Thousand Pesos (P10,000.00) or imprisonment of not less than five (5) months but not more
than one (1) year or both, upon the discretion of the court.

b) In addition to the penalty provided for in paragraph (1), the court may grant an injunction
restraining the conduct constituting the contravention of the provisions of Articles 50 and 51
and/or actual damages and such other orders as it thinks fit to redress injury to the person
caused by such conduct.