R.A. No.
7394 – The Consumer Act of the - This right ensures availability of basic
Philippines (03 April 1992)
Consumer – refers to any individual or
household that uses goods and services
generated within the economy.
Consumer protection – a concept designed to
ensure fair competition and the free flow of
truthful information in the marketplace.
 Government – enacting and
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.
Article 2. Declaration of Basic Policy: – State to
protect the interests of the consumer, promote
his general welfare and to establish standards
of conduct for business and industry xxx.
a. Protection against hazards to health
and safety;
b. Protection against deceptive, unfair and
unconscionable sales acts and practices;
c. Provision of information and education
to facilitate sound choice and the
proper exercise of rights by the
consumer;
d. Provision of adequate rights and means
of redress; and
e. Involvement of consumer
representatives in the formulation of
social and economic policies
Eight (8) Basic Rights of Consumers:
1. First right – to basic needs;
goods and services to consumers at
affordable prices and of good quality;
- It includes adequate food, clothing,
shelter, health care, education, public
utilities, water and sanitation to lead a
decent life
2. Second right – to safety;
- This right assures consumers to be
protected against marketing of goods
which are injurious to health and life;
- Consumers are assured that
manufacturers of consumer products
undertake extensive safety and
performance testing before selling their
products in the market;
- Products should be properly labelled
with information as to the contents,
use, precautions or warning signs and
how to prepare it, if the need arises
3. Third right – to information;
- Right of consumers to be protected
against dishonest or misleading
advertising or labelling and right to be
given facts and information needed to
make an informed choice;
- Consumers have the right to receive
adequate information about products
where to based their buying decisions;
- Information to consumers includes
product specification, place of origin,
safety warnings, price, mode of
payment, date of quality assurance,
description of after-sale services,
warranty, ingredient, nutritional facts,
etc.;
4. Fourth right – to choose;
- Right to choose products and services at
competitive prices, with assurance of
satisfactory quality;
- Consumers expect a wide array of
goods and services offered in the
market with diverse brands, sizes,
 shapes, colors and with differences in
the (competitive) price, quality and use;
- The right to choose also intends to
protect competitors from each other,
particularly small firms from the large
and powerful ones (later discuss under
Philippine Competition Act).
5. Fifth right – to representation;
- Right to representation is also known as
the right to be heard;
- Right to express interest in the making
and execution of government policies
that will have an impact on the supply
of goods and services to consumers;
- Consumers expect legislators to
propose laws that would ensure that
consumers would have a chance to live
a better life by getting the best value for
their hard-earned money;
6. Sixth right – to redress;
- The right of consumers to be
compensated for misrepresentation,
shoddy or inferior goods or
unsatisfactory services;
- Under this right, consumers expect
defective goods to be replaced or
money refunded by the seller or dealer;
Consumers also have the right to seek
legal remedies in the appropriate courts
of law;
7. Seventh right – to consumer education;
- This is the right to acquire the
knowledge and skills necessary to be an
informed consumer;
- Consumers may look forward to the
three (3) sectors of society: business,
government and consumer;
- Information campaign through tri-
media on consumer-related issues;
series of seminars, conferences, for
training and public hearings for the
welfare of consumer;
8. Eight right – to a healthy environment;
- This right assures consumers to live and
work in an environment which is
neither threatening nor dangerous and
which permits a life of dignity and well-
being;
- Consumers expect government to exert
effort regarding the alarming increase in
the degradation of environment (forest,
dying wildlife, depleted land fill space
and environmental contamination);
Violation of environmental laws.
Article 6. Implementing Agencies. – The
provisions of this Article and its implementing
rules and regulations shall be enforced by:
a. the Department of Health with respect
to food, drugs, cosmetics, devices and
substances;
b. the Department of Agriculture with
respect to products related to
agriculture; and
c. the Department of Trade and Industry
with respect to other consumer
products not specified above
Some Government Agencies – Jurisdiction on
Special Concerns:
a. National Telecommunications
Commission (NTC) – on Telephone
rates, cellphones, TV and radio
broadcast;
b. Bangko Sentral ng Pilipinas (BSP) – on
banks, non-bank financial institutions,
pawnshops, and credit cards;
c. Energy Regulatory Commission (ERC) –
on electricity;
d. Department of Environment and
Natural Resources (DENR) – on forest
and forest-based products;
e. Insurance Commission (IC) – on life and
non-life insurance claim, pre-need plans
such as educational, pension and
memorial;
 f. Securities and Exchange Commission
(SEC) – on mutual funds (investment);
financing/lending;
g. Philippine Deposit Insurance Corp.
(PDIC) – on claim for insured deposit;
queries on deposit insurance coverage;
other bank related issues/concerns i.e.
unserviced withdrawals, ATM problems,
etc.;
h. Department of Health (DOH) – on
hospitals and doctor's services;
processed foods, drugs, cosmetics, and
medical services or household products
with hazardous substances;
i. City Health Office of Local Government
Units (LGU) – on food in restaurants,
eateries and sidewalk vendors; on
regulation of practice relative to
weights and measures.
CONSUMER PRODUCT QUALITY AND SAFETY
Article 7. Promulgation and Adoption of
Consumer Product Standards. – The concerned
department shall establish consumer product
quality and safety standards which shall consist
of one or more of the following:
A. requirements to performance,
composition, contents, design,
construction, finish, packaging of a
consumer product;
B. requirements as to kind, class, grade,
dimensions, weights, material;
C. requirements as to the methods of
sampling, tests and codes used to check
the quality of the products;
D. requirements as to precautions in
storage, transporting and packaging;
E. 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
Article 10. Injurious, Dangerous and Unsafe
Products. – Whenever the departments find, by
their own initiative or by petition of a
consumer, that a consumer product is found to
be injurious, unsafe or dangerous, it shall, after
due notice and hearing, make the appropriate
order for its recall, prohibition or seizure from
public sale or distribution: Provided, That, in the
sound discretion of the department it may
declare a consumer product to be imminently
injurious, unsafe or dangerous, and order is
immediate recall, ban or seizure from public
sale or distribution, in which case, the seller,
distributor, manufacturer or producer thereof
shall be afforded a hearing within forty-eight
(48) hours from such order.
Article 11 – Amendment and Revocation of
Declaration of the Injurious, Unsafe or
Dangerous Character of a Consumer Product
 How commenced? - By Petition by any
interested person, or by the DTI (motu
propio);
 Effect if DTI finds the product injurious,
unsafe or dangerous:
1. DTI to notify the manufacturer,
distributor or seller thereof of such
finding;
2. Manufacturer, distributor or seller
to:
a. Give notice to the public of the
defect or failure to comply with
the product safety standards;
and
b. Give notice to each distributor
or retailer of such product.
Other concomitant remedies to the injured
person/consumer:
1. To bring such product into conformity
with the requirements of the applicable
consumer product standards or to
 repair the defect in order to conform
with the same;
2. To replace the product with a like or
equivalent product which complies with
the applicable consumer product
standards which does not contain the
defect
3. To refund the purchase price of the
product less a reasonable allowance for
use; and
4. To pay the consumer reasonable
damages as may be determined by the
department.
Article 15. Imported Products. – 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
Food, Drugs, Cosmetics and Devices
Article 21- Implementing Agency – Department
of Health.
Bureau of Food and Drugs - which is under the
Department of Health
Article 24 - Regulation of Unprocessed Food. –
Local Government Units - 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
 ”Food” – any substance, whether
processed, semi-processed or raw,
intended for human consumption and
includes chewing gum, drinks and
beverages and any substance which has
been used as an ingredient or a
component in the manufacture,
preparation or treatment of food.
 “Drugs” mean:
1. articles recognized in the current
official United States
PharmacopoeiaNational Formulary,
official Homeopathic
Pharmacopoeia of the United
States, official National Drug
Formulary, or any supplement to
any of them;
2. articles intended for use in the
diagnosis, cure, mitigation,
treatment, or prevention of disease
in man or other animals;
3. articles (other than food) intended
to affect the structure or any
function of the body of man or
animals; and
4. articles intended for use as a
component of any articles specified
in clauses (1), (2), or (3) but do not
include devices or their
components, parts or accessories.
 The term "drug" when used in this Act
shall include herbal and/or traditional
drug
 “Cosmetics” means (1) articles intended
to be rubbed, poured, sprinkled or
sprayed on, introduced into or
otherwise applied to the human body
or any part thereof for cleansing,
beautifying, promoting attractiveness,
or altering the appearance, and (2)
article intended for use as a component
of any such article except that such
term shall not include soap.
  "Device" means an instrument,
apparatus, implement, machine,
contrivance, implant, in vitro reagent,
or other similar or related article,
including any component, part or
accessory which is:
1. recognized in the official United
States Pharmacopoeia-National
Formulary (USP-NF) or any
supplement to them;
2. intended for use in the diagnosis of
disease or other condition or in the
cure, mitigation, treatment or
prevention of disease, in man or
other animals; or
3. intended to affect the structure or
any function of the body of man or
other animals, and which does not
achieve any of its principal intended
purposes through chemical action
within or on the body of man or
other animals and which is not
dependent upon being metabolized
for the achievement of any of its
principal intended purposes
Article 23. Adulterated Food. – A food shall be
deemed to be adulterated:
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;
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 conforms
to such tolerances;
3. if it consists in whole or in part of any
filthy, putrid or decomposed substance,
or if it is otherwise unfit for food;
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;
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;
6. if its container is composed, in whole or
in part, of any poisonous or deleterious
substance which may render the
contents injurious to health; or
7. if it has passed its expiry date
Article 24. Regulation of Unprocessed 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.
 Common instances of food
adulterations:
1. 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;
2. Adulteration of hot dogs and similar
products by the use of fillers such as
flour to add bulk;
3. Adulteration of rice by mixing high
grade varieties with lower grade
varieties;
4. Sale of poultry products injected
with water to make them heavier;
5. Suspension of the importation of
(Rose Bowl) canned foods from
 Malaysia was made by the Bureau
of Customs;
6. Mislabeled whiskey from local
liquor firm (mislabeled as Johnny
Walker Whiskey);
Article 29. Adulterated Drugs and Devices. – A
drug or device shall be deemed to be
adulterated:
A.
1. if it contains in whole or in part of any
filthy, putrid, or decomposed substance
which may affect its safety, efficacy or
good quality; or
2. if it has been manufactured, prepared
or held under unsanitary conditions
whereby it may have been
contaminated with dirt or filth or
whereby it may have been rendered
injurious to health; or
3. if its container is composed, in whole or
in part, of any poisonous or deleterious
substance which may render the
contents injurious to health; or
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 or good quality.
B. xxx its strength differs from, or its
safety, efficacy, quality or purity falls
below the standards set forth;
C. If it is not subject to the provisions of
paragraph (b) and its strength differs
from, or its efficacy, quality or purity
falls below, that which it purports or is
represented to possess;
D. 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;
E. If the methods used in, or the facilities
or controls used for its manufacture or
holding do not conform to or are not
operated or administered in conformity
with current good manufacturing
practice to assure that such drug meets
the requirements of this Act as to
safety, quality and efficacy, and has the
identity and strength, and meets the
quality and purity characteristics which
it purports or is represented to possess.
Article 35 - Adulterated Cosmetics Bureau of
Food and Drugs – under the Department of
Health;
Article 35. Adulterated cosmetics. – A cosmetic
shall be deemed to be adulterated:
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, or under the condition
of use as are customary or usual:
Provided, That this provision shall not
apply to color additive hair dye, the
label of which bears the following
legend conspicuously displayed
thereon: "Caution: this product contains
ingredients which may cause skin
irritation on certain individuals and a
preliminary test according to
accompanying directions should first be
made. This product must not be used
for dyeing the eyelashes or eyebrows;
to do so may cause blindness" and
labeling of which bears adequate
directions for such preliminary testing.
For purposes of this paragraph (e) the
term "hair dye" shall not include
eyelash dyes or eyebrow dyes.
 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.
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 has been (1)
mixed or packed therewith so as to
reduce its quality or strength or (2)
substituted wholly or in parts therefor.
Some Cases:
1. Chinese milk scandal was a food safety
incident in the People's Republic of
China involving milk and infant formula,
and other food materials and
components, adulterated with
melamine; (food)
2. Toys made in China recalled for
containing lead which could cause brain
damage; (product)
3. A Filipino-American nurse has filed a
complaint against the Belo Medical
Group over an alleged botched skin
tightening procedure done on her;
(device and procedure)
4. In 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; (food)
Deceptive, Unfair and Unconscionable Sales
Acts or Practices
Article 48. 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.
Article 49. Implementing Agency. – The
Department of Trade and Industry, hereby
referred to as the Department, shall enforce the
provisions of this Chapter
Article 50 - Prohibition Against Deceptive Sales
Acts or Practices Deceptive, Unfair and
Unconscionable Sales Acts or Practices
 Whether it occurs before, during or
after the transaction;
 An act or practice shall be deemed
DECEPTIVE whenever the producer,
manufacturer, supplier or seller,
through concealment, false
representation or fraudulent
manipulation, induces a consumer to
enter into a sales or lease transaction of
any consumer product or service.
A. a consumer product or service has
the sponsorship, approval,
performance, characteristics,
ingredients, accessories, uses, or
benefits it does not have;
B. a consumer product or service is of
a particular standard, quality, grade,
style, or model when in fact it is not
C. a consumer product is new, original
or unused, when in fact, it is in a
deteriorated, altered,
reconditioned, reclaimed or second-
hand state;
D. a consumer product or service is
available to the consumer for a
reason that is different from the
fact;
E. a consumer product or service has
been supplied in accordance with
 the previous representation when
in fact it is not;
F. a consumer product or service can
be supplied in a quantity greater
than the supplier intends;
G. a service or repair of a consumer
product is needed when in fact it is
not
H. a specific price advantage of a
consumer product exists when in
fact it does not;
I. the 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; and
J. the seller or supplier has a
sponsorship, approval, or affiliation
he does not have
Article 52– Unfair or Unconscionable Sales Act
or Practice
An act or practice shall be deemed UNFAIR OR
UNCONSCIONABLE whenever the producer,
manufacturer, distributor, supplier or seller, by
taking advantage of the consumer's physical or
mental infirmity, ignorance, illiteracy, lack of
time or the general conditions of the
environment or surroundings, induces the
consumer to enter into a sales or lease
transaction grossly inimical to the interests of
the consumer or grossly one-sided in favor of
the producer, manufacturer, distributor,
supplier or seller
Article 53 - Chain Distribution Plans or Pyramid
Sales Schemes. – Chain distribution plans or
pyramid sales schemes shall not be employed in
the sale of consumer products.
Article 54 - Home Solicitation Sales. – No
business entity shall conduct any home
solicitation sale of any consumer product or
service without first obtaining a permit from the
Department. Such permit may be denied
suspended or revoked upon cause as provided
in the rules and regulations promulgated by the
Department, after due notice and hearing
Article 55 - Home Solicitation Sales; When
Conducted. – Home solicitation sales may be
conducted only between the hours of nine
o'clock in the morning and seven o'clock in the
evening of each working day: Provided, That
solicitation sales may be made at a time other
than the prescribed hours where the person
solicited has previously agreed to the same.
Article 56 - Home Solicitation Sales; by Whom
Conducted. – Home solicitation sales shall only
be conducted by a person who has the proper
identification and authority from his principal to
make such solicitations.
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.
REGULATION OF PRACTICES RELATIVE TO
WEIGHTS AND MEASURES GENERAL PROVISION
Article 61- Implementing Agency. -- The
provincial, city, or municipal treasurers shall
strictly enforce the provisions of this Chapter,
and its implementing rules and regulations:
Provided, that, with respect to the use of the
Metric System, it shall be enforced by the
Department of Trade and Industry.
Article 62 - Sealing and Testing of Instruments
of Weights and Measure. -- All instruments 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: Provided, that
all instruments of weights and measures shall
continuously be inspected for compliance with
the provisions of this Chapter.
Consumer Product and Service Warranties (DTI)
Article 67- Applicable Law on Warranties. – The
provisions of the Civil Code on conditions and
warranties shall govern all contracts of sale with
conditions and warranties.
Article 68- Additional Provisions on Warranties.
a. Terms of express warranty. –
1. in clear and readily understandable
language;
2. identify the party to whom the
warranty is extended;
3. the products or parts covered;
4. period within which, after notice of
defect, malfunction or failure to
conform to the warranty, the
warrantor will perform any
obligation under the warranty.
b. Express warranty – operative from
moment of sale. – All written warranties
or guarantees issued by a
manufacturer, producer, or importer
shall be operative from the moment of
sale.
c. Designation of warranties.
1. "Full warranty" if the written
warranty meets the minimum
requirements set forth in paragraph
(d); or
2. “Limited warranty" if the written
warranty does not meet such
minimum requirements.
d. Minimum standards for warranties.
1. Remedy such consumer product
within a reasonable time and
without charge in case of a defect,
malfunction or failure to conform to
such written warranty;
2. 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;
e. Duration of warranty. – Seller and
consumer may stipulate the period
within which the express warranty shall
be enforceable. Any other implied
warranty shall endure not less than
sixty (60) days nor more than one (1)
year following the sale of new
consumer products.
f. Breach of warranties. –
1. In case of breach of express
warranty (by the seller), the
consumer may elect to have the
goods repaired or its purchase price
refunded by the warrantor xxx.
 2. In case of breach of implied
warranty (by the seller), 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
Article 69. Warranties in Supply of Services. –
a. In every contract for the supply of
services to a consumer made by a seller
in the course of a business, there is an
implied warranty that the service will be
rendered with due care and skill and
that any material supplied in
connection with such services will be
reasonably fit for the purpose for which
it is supplied.
b. Where a seller supplies consumer
services in the course of a business and
the consumer, expressly or by
implication, makes known to the seller
the particular purpose for which the
services are required, there is an
implied warranty that the services
supplied under the contract and any
material supplied in connection
therewith will be reasonably fit for that
purpose or are of such a nature or
quality that they might reasonably be
expected to achieve that result, unless
the circumstances show that the
consumer does not rely or that it is
unreasonable for him to rely, on the
seller's skill or judgment
Article 70. Professional Services. – The provision
of this Act on warranty shall not apply to
professional services of certified public
accountants, architects, engineers, lawyers,
veterinarians, optometrists, pharmacists,
nurses, nutritionists, dietitians, physical
therapists, salesmen, medical and dental
practitioners and other professionals engaged in
their respective professional endeavors.
Article 71. Guaranty of Service Firms. – Service
firms shall guarantee workmanship and
replacement of spare parts for a period not less
than ninety (90) days which shall be indicated in
the pertinent invoices.
Article 72. Prohibited Acts. – The following acts
are prohibited:
a. refusal without any valid legal cause by
the total manufacturer or any person
obligated under the warranty or
guarantee to honor a warranty or
guarantee issued;
b. unreasonable delay by the local
manufacturer or any person obligated
under the warranty or guarantee in
honoring the warranty;
c. removal by any person of a product's
warranty card for the purpose of
evading said warranty obligation;
d. any false representation in an
advertisement as to the existence of a
warranty or guarantee
LABELING AND FAIR PACKAGING
Article 77- Minimum Labeling Requirements for
Consumer Products. – All consumer products
domestically sold whether manufactured locally
or imported shall indicate the following in their
respective labels of packaging:
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;
E. its general make or active ingredients;
F. the net quality of contents, in terms of
weight, measure or numerical count
 rounded of to at least the nearest
tenths in the metric system;
G. country of manufacture, if imported;
and
H. if a consumer product is manufactured,
refilled or repacked under license from
a principal, the label shall so state the
fact:
 General make or active ingredients; •
Net quantity of contents;
 Country of manufacture if imported;
 If consumer product is manufactured,
refilled or repacked under license from
a principal, the label shall state the fact;
 Flammable or inflammable;
 Direction for use; • Warning of toxicity;
 Wattage, voltage or amperes;
 Process of manufacture, if necessary.
Article 78- Philippine Product Standard Mark. –
The label may contain the Philippine Product
Standard Mark if it is certified to have passed
the consumer product standard prescribed by
the concerned department.
Article 80- Special Packaging of Consumer
Products for the Protection of Children. – The
concerned department may establish standards
for the special packaging of any consumer
product xxx
Toy and Game Safety Labelling Act of 2013 (RA
10620)
 “An Act Providing for Toy and Game
Safety Labelling, Appropriating Funds
Therefor”
 Implementing Agencies: DOH and DTI;
 Provides for the labelling requirements
of toys and games;
 Treatment on Misbranded or Banned
Hazardous Substance
Article 81- Price Tag Requirement. – It shall be
unlawful to offer any consumer product for
retail sale to the public without an appropriate
price tag, label or marking publicly displayed to
indicate the price of each article and said
products shall not be sold at a price higher than
that stated therein and without discrimination
to all buyers: Provided, that lumber sold,
displayed or offered for sale to the public shall
be tagged or labeled by indicating thereon the
price and the corresponding official name of the
wood: Provided, further, that if consumer
products for sale are too small or the nature of
which makes it impractical to place a price tag
thereon price list placed at the nearest point
where the products are displayed indicating the
retail price of the same may suffice.
Article 82- Manner of Placing Price Tags. – Price
tags, labels or markings must be written clearly,
indicating the price of the consumer product
per unit in pesos and centavos
Price Tag under RA 7581, as amended by RA
10623 (Price Act)
An Act providing protection to consumers by
stabilizing the prices of basic necessities and
prime commodities and by prescribing
measures against undue price increases during
emergency situations and like occasions;
Implementing agencies (IAs):
 Department of Trade and Industry (DTI);
 Department of Agriculture (DA);
 Department of Health( DOH);
 Department of Environment and
Natural Resources (DENR);
 Department of Energy (DOE)
Mandates IAs to issue Suggested Retail Prices
(SRPs) of necessities and prime commodities
whenever necessary;
No Shortchanging Act of 2016 (RA 10909) “An
Act Prohibiting Business Establishments from
Giving Insufficient or No Change to Consumers
and Providing Penalties Therefor”
  Change – the excess in the payment
given by a consumer for goods and
services purchased or received from a
business establishment;
 Gross sale – the total invoice value of
sales, before deducting for customer
discount, allowances and returns;
 Price-tag – any device written, printed,
affixed or attached to a good, or
displayed in a consumer retail or service
establishment for the purpose of
indicating the retail price per unit or
services;
 Insufficient change – a change that is
less than what is due the consumers;
 Shortchange – the act of giving
insufficient or no change to a consumer
who purchased a product or service
REGULATED ACTS
Section 4. Regulated Acts. - It shall be the duty
of the business establishment to give the exact
change to the consumer without waiting for the
consumer to ask for the same.
a. In General.— It shall be unlawful for any
business establishment to shortchange
a consumer, even if such change is only
of a small amount. Nothing in this Act
shall be construed as a restriction for
business establishments to give an
amount greater than the sufficient
change.
b. Other Prohibitions.— It shall also be
unlawful for any business establishment
which sells goods or provides services
to give the change in any form other
than the present currency or to ask the
consumers for permission to be
exempted from the provisions of this
Act for any reason, including the
nonavailability of small bills or coins.
Article 84- Additional Labeling Requirements for
Food. –The following additional labeling
requirements shall be imposed by the
concerned department for food:
a. expiry or expiration date, where
applicable;
b. whether the consumer product is semi-
processed, fully processed, ready-to-
cook, readyto-eat, prepared food or just
plain mixture;
c. nutritive value, if any;
d. whether the ingredients use are natural
or synthetic, as the case may be;
e. such other labeling requirements as the
concerned department may deem
necessary and reasonable
Article 87- Additional Labeling Requirements for
Cosmetics. –
The following additional requirements may be
required for cosmetics:
a. expiry or expiration date;
b. whether or not it may be an irritant;
c. precautions or contra-indications; and
d. such other labeling requirements as the
concerned department may deem
necessary and reasonable
Article 94- Labeling Requirements of Cigarettes.
All cigarettes for sale or distribution within the
country shall be contained in a package which
shall bear the following statement or its
equivalent in Filipino: "Warning" Cigarette
Smoking is Dangerous to Your Health". Such
statement shall be located in conspicuous place
on every cigarette package and shall appear in
conspicuous and legible type in contrast by
typography, layout or color with other printed
matter on the package. Any advertisement of
cigarette shall contain the name warning as
indicated in the label
Advertising and Sales Promotion
 False, Deceptive and Misleading
Advertisement
Article 110- False, Deceptive or Misleading Article 121- Determination of Winners. –The
Advertisement. – It shall be unlawful for any winners in any sales promotion shall be
person to disseminate or to cause the determined at a definite time and place and
dissemination of any false, deceptive or shall be verified by a representative of the
misleading advertisement by Philippine mail or concerned department and the sponsor.
in commerce by print, radio, television, outdoor Immediately after the winners are selected or
advertisement or other medium for the purpose determined, a list with their addresses and
of inducing or which is likely to induce directly corresponding prizes shall be submitted to the
or indirectly the purchase of consumer products concerned department. All winners shall be
or services. announced or published in the same manner
that the sales promotion was announced or
 An advertisement shall be false,
published: Provided, that publication in a
deceptive or misleading if it is not in
newspaper of general circulation shall be done
conformity with the provisions of this
in a legible manner at least once, if the sales
Act or if it is misleading in a material
promotion is national in scope: Provided,
respect.
further, that such announcement and
 Things to consider in determining
publication shall be done not later than two (2)
whether any advertisement is false,
weeks after the determination of winners. In all
deceptive or misleading:
cases where the amount of the price is Five
 the representations made or any
hundred pesos (P500.00) or more, the winners
combination thereof;
shall also be notified in writing by registered
 the extent to which the advertisement
mail or any communication wherein proof of
fails to reveal material facts
notice or service can be verified
Promotion of Sales of Consumer Products and
Consumer Complaints
Services
Article 159- Consumer Complaints. –The
Article 116- Permit to Conduct Promotion. – No
concerned department may commence an
person shall conduct any sales campaigns,
investigation upon petition or upon letter-
including beauty contest, national in character,
complaint from any consumer: Provided, that,
sponsored and promoted by manufacturing
upon a finding by the department of prima facie
enterprises without first securing a permit from
violation of any provisions of this Act or any rule
the concerned department at least thirty (30)
or regulation promulgated under its authority, it
calendar days prior to the commencement
may motu proprio or upon verified complaint
thereof. Unless an objection or denial is
commerce formal administrative action against
received within fifteen (15) days from filing of
any person who appears responsible therefor.
the application, the same shall be deemed
The department shall establish procedures for
approved and the promotion campaign or
systematically logging in, investigating and
activity may be conducted: Provided, that any
responding to consumer complaints into the
sales promotion campaign using medical
development of consumer policies, rules and
prescriptions or any part thereof or attachment
regulations, assuring as far as practicable simple
thereto for raffles or a promise of reward shall
and easy access on the part of the consumer to
not be allowed, nor a permit be issued thereof.
seek redress for his grievances
Article 163- Investigation Procedure.
of the following administrative penalties may be
a. The consumer arbitration officer shall
imposed even if not prayed for in the complaint:
conduct hearings on any complaint
received by him or referred by the
Council.
b. Parties to the case shall be entitled to
notice of the hearing, and shall be
informed of the date, time and place of
the same. A copy of the complaint shall
be attached to the notice.
c. The department shall afford all
interested parties the opportunity to
submit a statement of facts, arguments,
offers of settlements or proposals of
adjustments.
d. The Consumer arbitration officer shall
first and foremost ensure that the
contending parties come to a
settlement of the case.
e. In the event that a settlement has not
been effected, the Mediation officer
may now proceed to formally
investigate, hear and decide the case.
f. The Consumer arbitration officer may
summon witnesses, administer oaths
and affirmations, issue subpoena and
subpoena duces tecum, rule upon offers
of proof and receive relevant evidence,
take or cause deposition to be taken
whenever the ends of justice would be
served thereby, regulate the course of
the hearing, rule on any procedural
request or similar matter and decide
the complaint. In hearing the complaint,
the mediation officer shall use every
and all reasonable means to ascertain
the facts in each complaint speedily and
objectively without regard to strict rules
of evidence prevailing in suits before
courts. The complaints shall be decided
within fifteen (15) days from the time
the investigation was terminated
Article 164- Sanctions. –After investigation, any
a. the issuance of a cease and desist
order, Provided, however, That such
order shall specify the acts that
respondent shall cease and desist from
and shall require him to submit a report
of compliance therewith within a
reasonable time;
b. the acceptance of a voluntary assurance
of compliance or discontinuance from
the respondent which may include any
or all of the following terms and
conditions:
1. an assurance to comply with the
provisions of this Act and its
implementing rules and regulations;
2. an assurance to refrain from
engaging in unlawful acts and
practices or unfair or unethical
trade practices subject of the
formal investigation;
3. an assurance to comply with the
terms and conditions specified in
the consumer transaction subject of
the complaint
4. an assurance to recall, replace,
repair, or refund the money value
of defective products distributed in
commerce;
5. an assurance to reimburse the
complaint out of any money or
property in connection with the
complaint, including expenses in
making or pursuing the complaint, if
any, and to file a bond to guarantee
compliance therewith.
c. restitution or rescission of the contract
without damages;
d. condemnation and seizure of the
consumer product found to be
hazardous to health and safety unless
the respondent files a bond to answer
 for any damage or injury that may arise
from the continued use of the product;
e. the imposition of administrative fines in
such amount as deemed reasonable by
the Secretary, which shall in no case be
less that Five hundred pesos (P500.00)
nor more than Three hundred thousand
pesos (P300,000.00) depending on the
gravity of the offense, and an additional
fine of not more than One thousand
pesos (P1,000.00) or each day of
continuing violation
Article 165- Appeal from Orders. –Any order,
not interlocutory of the Consumer Arbitration
Officer, becomes final and executory unless
appealed to the Department Secretary
concerned within fifteen (15) days from receipt
of such order. An appeal may be entertained
only on any of the following grounds:
A. grave abuse of discretion;
B. the order is in excess of the jurisdiction
or authority of the consumer arbitration
officer;
C. the order is not supported by the
evidence or there is serious error in the
findings of facts.
Article 166- Decision on Appeal. –The Secretary
shall decide the appeal within thirty (30) days
from receipt thereof. The decision becomes
final after fifteen (15) days from receipt thereof
unless a petition for certiorari is filed with the
proper court.
Article 169- Prescription. – All actions or claims
accruing under the provisions of this Act and
the rules and regulations issued pursuant
thereto shall prescribe within two (2) years
from the time the consumer transaction was
consummated or the deceptive or unfair and
unconscionable act xxx
Summary of DTI Mediation (Process Flow)
1. 1. Receipt of Complaint;
2. Evaluation (within the day of receipt of
Complaint);
3. Determine if DTI has Jurisdiction;
a. If No, Endorse to concerned
government agencies or
establishments;
b. If Yes, Recording of Complainant
and Assignment to Mediation
Officer;
4. Scheduling and Sending of Notices;
5. Mediation Proceeding;
a. Non-appearance of Respondent;
Appearance of Complainant –
Elevate Case to Adjudication;
b. Non-appearance of Complainant;
Appearance of Respondent – Case
Closed;
c. Appearance of Both Complainant
and Respondent: - If they Settle;
Case Closed; - If No Settlement,
Elevate Case to Adjudication;
 Note: The entire proceeding is within
Ten (10) working days
Summary of Procedure on Consumer
Complaint:
1. Since no Settlement – Elevation of
Consumer Complaint;
2. Docket and Assignment of the Case;
3. Notice of Adjudication;
4. Submission of Position Paper (within
working days from notice);
a. If one party failed to file Position
Paper – Order of Waiver;
b. If both parties fail to file Position
Paper – Oder of Waiver;
c. If both parties submitted Position
Paper: - Review Position Paper and
Clarificatory Hearing (Optional);
5. Submitted for Decision. ✓ Note: Twenty
(20) working days to Decide from date
Case was submitted for Decision.
 6. Aggrieved party may file an Appeal (15
days from receipt of Decision);
- Memorandum of Appeal to the Office of
the Secretary;
- Then, Notice of Appeal to the
Adjudication Division;
7. If no Appeal, Decision becomes final
and executory; - Complainant to file
Motion for Execution; - Then, Issuance
of Writ of Execution addressed to the
Sheriff’s Office.
R. A. No. 10642 – "Philippine Lemon Law" An
Act Strengthening Consumer Protection in the
Purchase of Brand-New Motor Vehicles
Section 4. Coverage. – This Act shall cover
brand new motor vehicles purchased in the
Philippines reported by a consumer to be in
nonconformity with the vehicle’s manufacturer
or distributor’s standards or specifications
within twelve (12) months from the date of
original delivery to the consumer, or up to
twenty thousand (20,000) kilometers of
operation after such delivery, whichever comes
first. The following causes of nonconformity
shall be excluded:
A. Noncompliance by the consumer of the
obligations under the warranty;
B. Modifications not authorized by the
manufacturer, distributor, authorized
dealer or retailer;
C. Abuse or neglect of the brand-new
motor vehicle; and
D. Damage to the vehicle due to accident
or force majeure
Implementing agency: DTI; Covers brand new
motor vehicles that are to be in nonconformity
with the standards or specifications of the
vehicle’s manufacturer or distributor; Provides
remedies through Mediation, Arbitration,
Adjudication; REPAIR, REPLACE, REFUND
Section 5. Repair Attempts. – At any time within
the Lemon Law rights period, and after at least
four (4) separate repair attempts by the same
manufacturer, distributor, authorized dealer or
retailer for the same complaint, and the
nonconformity issue remains unresolved, the
consumer may invoke his or her rights under
this Act.
The repair may include replacement of parts
components, or assemblies
Section 6. Notice of Availment of Lemon Law
Rights. – Before availing of any remedy under
this Act and subject to compliance with the
provisions of Section 5 hereof, the consumer
shall, in writing, notify the manufacturer,
distributor, authorized dealer or retailer of the
unresolved complaint, and the consumer’s
intention to invoke his or her rights under this
Act within the Lemon Law rights period.
The warranty booklet issued by the
manufacturer, distributor, authorized dealer or
retailer shall clearly state the manner and form
of such notice to constitute a valid and legal
notice to the manufacturer, distributor,
authorized dealer or retailer. It shall also clearly
state the responsibility of the consumer under
this section.
Section 7. Availment of Lemon Law Rights. –
Subsequent to filing the notice of availment
referred to in the preceding section, the
consumer shall bring the vehicle to the
manufacturer, distributor, authorized dealer or
retailer from where the vehicle was purchased
for a final attempt to address the complaint of
the consumer to his or her satisfaction.
It shall be the duty of the manufacturer,
distributor, authorized dealer or retailer, upon
receipt of the motor vehicle and the notice of
nonconformity required under Section 6 hereof,
to attend to the complaints of the consumer
including, as may be necessary, making the
repairs and undertaking such actions to make
the vehicle conform to the standards or
specifications of the manufacturer, distributor,
authorized dealer or retailer for such vehicle.
In case the nonconformity issue remains
unresolved despite the manufacturer,
distributor, authorized dealer or retailer’s
efforts to repair the vehicle, pursuant to the
consumer’s availment of his or her Lemon Law
rights, the consumer may file a complaint
before the DTI as provided for under this Act:
Provided, however, that if the vehicle is not
returned for repair, based on the same
complaint, within thirty (30) calendar days from
the date of notice of release of the motor
vehicle to the consumer following this repair
attempt within the Lemon Law rights period,
the repair is deemed successful: Provided,
finally, that, in the event that the
nonconformity issue still exists or persists after
the thirty (30)-day period but still within the
Lemon Law rights period, the consumer may be
allowed to avail of the same remedies under
Sections 5 and 6 hereof
To compensate for the non-usage of the vehicle
while under repair and during the period of
availment of the Lemon Law rights, the
consumer shall be provided a reasonable daily
transportation allowance, an amount which
covers the transportation of the consumer from
his or her residence to his or her regular
workplace or destination and vice versa,
equivalent to airconditioned taxi fare, as
evidenced by official receipt, or in such amount
to be agreed upon by the parties, or a service
vehicle at the option of the manufacturer,
distributor, authorized dealer or retailer. Any
disagreement on this matter shall be resolved
by the DTI. Nothing herein shall be construed to
limit or impair the rights and remedies of a
consumer under any other law.
Section 8. Remedies for Dispute Resolution. –
The DTI shall exercise exclusive and original
jurisdiction over disputes;
A. Mediation; All disputes that have been
submitted for mediation shall be settled
not later than ten (10) working days
from the date of filing of the complaint
with the DTI.
B. Arbitration In the event there is a
failure to settle the complaint during
the mediation proceedings, both parties
may voluntarily decide to undertake
arbitration proceedings.
C. Adjudication In no case shall
adjudication proceedings exceed
twenty (20) working days
An appeal may be taken from a final judgment
or order of the Adjudication Officer which
completely disposes of the case within fifteen
(15) days from receipt thereof. The appeal shall
be taken by filing a Memorandum of Appeal
with the Secretary of the DTI, with Notice of
Appeal to the Adjudication Officer, and with a
copy duly furnished the adverse party or parties
on any of the following grounds:
 (i) Grave abuse of discretion;
 (ii) The decision/order is in excess of
jurisdiction or authority of the
Adjudication Officer; and
 (iii) The decision/order is not supported
by the evidence or there is serious error
in the findings of facts.
The Secretary of the DTI shall decide on the
appeal within thirty (30) days from receipt
thereof. A party seeking further appeal from the
decision of the Secretary of the DTI may file a
case for certiorari to the Court of Appeals under
Section 4, Rule 65 of the Revised Rules of Court
Section 10. Disclosure on Resale. – Should the
returned motor vehicle be made available for
resale, the manufacturer, distributor,
authorized dealer or retailer shall, prior to sale
or transfer, disclose in writing to the next
purchaser of the same vehicle the following
information:
 A. The motor vehicle was returned to the Major Provisions of the PCA The State shall:
manufacturer, distributor, authorized
a. Enhance economic efficiency and
dealer or retailer;
promote free and fair competition in
B. The nature of the nonconformity which
trade, industry and all commercial
caused the return; and
economic activities xxx;
C. The condition of the motor vehicle at
b. Prevent economic concentration which
the time of the transfer to the
will control the production, distribution,
manufacturer, distributor, authorized
trade, or industry that will unduly stifle
dealer or retailer.
competition, lessen, manipulate or
The responsibility of the manufacturer, constrict the discipline of free markets;
distributor, authorized dealer or retailer under and
this section shall cease upon the sale of the c. Penalize all forms of anti-competitive
affected motor vehicle to the first purchaser. agreements, abuse of dominant
position and anti-competitive mergers
R.A. 10667 - The Philippine Competition Act
and acquisitions, with the objective of
“An Act Providing for a National Competition protecting consumer welfare and
Policy Prohibiting Anti-competitive Agreements, advancing domestic and international
Abuse of Dominant Position and Anti- trade and economic development
competitive Mergers and Acquisitions,
Section 5. Philippine Competition Commission.
Establishing the Philippine Competition
Commission and Appropriating Funds therefor”  The Philippine Competition Commission
(PCC) was formed in February 2016;
Section 1. Short Title. – The “Philippine
 To implement the national competition
Competition Act” (PCA). PCA was enacted in
policy;
2015 and its Implementing Rules and
 An independent quasi-judicial body; an
Regulations (IRR) became effective on June 18,
attached agency to the Office of the
2016;
President;
Section 2. Declaration of Policy. --  Composition – (a) Chairman – Dr.
Arsenio M. Balisacan; and (b) 4
Efficiency of market competition as a
Commissioners;
mechanism for allocating goods and services
 Term of seven (7) years without re-
xxx; To safeguard competitive conditions; Equal
appointment;
opportunities to all promotes entrepreneurial
spirit, encourages private investments, Section 12. Powers and Functions. –
facilitates technology development and transfer
Sole authority to initiate and conduct
and enhances resource productivity.
preliminary investigation – “No civil case shall
Unencumbered market competition also serves
be filed or instituted by a private party in court,
the interest of consumers by allowing them to
unless the PCC has completed a preliminary
exercise their right of choice over goods and
inquiry.” (Section 45, PCA);
services offered in the market. State shall
regulate or prohibit monopolies when the
public interest so requires and that no
combinations in restraint of trade or unfair
competition shall be allowed
Powers and function:
a. Conduct inquiry, investigate, hear and
decide cases;
b. Review mergers and acquisitions
c. Monitor compliance;
d. Stop, redress, apply remedies based on
finding;
e. Conduct administrative proceedings,
impose sanctions, fines or penalties for
any noncompliance with or breach of
this Act and punish for contempt;
f. Issue subpoenas;
g. Undertake inspection of business
premises, under order of court;
h. Deputize enforcement agencies;
i. Issue advisory opinions on competition
matters;
j. Monitor and analyze competition
practices in markets; conduct, publish
and disseminate studies, etc.
PROHIBITED ACTS
Section 14. Anti-competitive Agreements.
A. The following agreements, between or
among competitors, are per se
prohibited:
1.) Restricting competition as to price,
or components thereof, or other
terms of trade;
2.) Fixing price at an auction or in any
form of bidding including cover
bidding, bid suppression, bid
rotation and market allocation and
other analogous practices of bid
manipulation;
B. The following agreements, between or
among competitors which have the
object or effect of substantially
preventing, restricting or lessening
competition shall be prohibited:
1. Setting, Kmiting, or controlling
production, markets, technical
development, or investment;
2. Dividing or sharing the market,
whether by volume of sales or
purchases, territory, type of goods
or services, buyers or sellers or any
other means
C. Agreements other than those specified
in (a) and (b) of this section which have
the object or effect of substantially
preventing, restricting or lessening
competition shall also be prohibited:
Provided, those which contribute to
improving the production or
distribution of goods and services or to
promoting technical or economic
progress, while allowing consumers a
fair share of the resulting benefits, may
not necessarily be deemed a violation
of this Act.
An entity that controls, is controlled by,
or is under common control with
another entity or entities, have
common economic interests, and are
not otherwise able to decide or act
independently of each other, shall not
be considered competitors for purposes
of this section.
Section 15. Abuse of Dominant Position. – It
shall be prohibited for one or more entities to
abuse their dominant position by engaging in
conduct that would substantially prevent,
restrict or lessen competition:
A. Selling goods or services below cost
with the object of driving competition
out of the relevant market: Provided,
that in the Commission’s evaluation of
this fact, it shall consider whether the
entity or entities have no such object
and the price established was in good
faith to meet or compete with the
lower price of a competitor in the same
market selling the same or comparable
product or service of like quality;
 B. Imposing barriers to entry or
committing acts that prevent
competitors from growing within the
market in an anti-competitive manner
except those that develop in the market
as a result of or arising from a superior
product or process, business acumen,
or legal rights or laws;
C. Making a transaction subject to
acceptance by the other parties of
other obligations which, by their nature
or according to commercial usage, have
no connection with the transaction;
D. Setting prices or other terms or
conditions that discriminate
unreasonably between customers or
sellers of the same goods or services xxx
But the following shall be considered
permissible price differentials:
1. Socialized pricing for the less fortunate
sector of the economy;
2. Price differential which reasonably or
approximately reflect differences in the
cost of manufacture, sale, or delivery
resulting from differing methods,
technical conditions, or quantities in
which the goods or services are sold or
delivered to the buyers or sellers;
3. Price differential or terms of sale
offered in response to the competitive
price of payments, services or changes
in the facilities furnished by a
competitor; and
4. Price changes in response to changing
market conditions, marketability of
goods or services, or volume
E. e. Imposing restrictions on the lease or
contract for sale or trade of goods or
services concerning where, to whom, or
in what forms goods or services may be
sold or traded, such as fixing prices,
giving preferential discounts or rebate
upon such price, or imposing conditions
not to deal with competing entities xxx;
NOT UNLAWFUL ACTS:
1. Permissible franchising, licensing,
exclusive merchandising or
exclusive distributorship
agreements such as those which
give each party the right to
unilaterally terminate the
agreement; or
2. Agreements protecting intellectual
property rights, confidential
information, or trade secrets
F. Making supply of particular goods or
services dependent upon the purchase
of other goods or services from the
supplier which have no direct
connection with the main goods or
services to be supplied;
G. Directly or indirectly imposing unfairly
low purchase prices for the goods or
services of, among others, marginalized
agricultural producers, fisherfolk, micro-
small-, mediumscale enterprises xxx;
H. Directly or indirectly imposing unfair
purchase or selling price on their
competitors, customers, suppliers or
consumers, provided that prices that
develop in the market as a result of or
due to a superior product or process,
business acumen or legal rights or laws
shall not be considered unfair prices;
and
I. Limiting production, markets or
technical development to the prejudice
of consumers, provided that limitations
that develop in the market as a result of
or due to a superior product or process,
business acumen or legal rights or laws
shall not be a violation of this Act
Mergers and Acquisitions
Section 17. Compulsory Notification. – Parties to
the merger or acquisition agreement referred to
in the preceding section wherein the value of
the transaction exceeds one billion pesos
(P1,000,000,000.00) are prohibited from
consummating their agreement until thirty (30)
days after providing notification to the
Commission in the form and containing the
information specified in the regulations issued
by the Commission xxx;
Section 18. Effect of Notification. — If within the
relevant periods stipulated in the preceding
section, the Commission determines that such
agreement is prohibited and does not qualify
for exemption under Section 21 of this Chapter,
the Commission may:
A. Prohibit the implementation of the
agreement;
B. Prohibit the implementation of the
agreement unless and until it is
modified by changes specified by the
Commission.
C. Prohibit the implementation of the
agreement unless and until the
pertinent party or parties enter into
legally enforceable agreements
specified by the Commission
Section 20. Prohibited. Mergers and
Acquisitions. – Merger or acquisition
agreements that substantially prevent, restrict
or lessen competition in the relevant market or
in the market for goods or services as may be
determined by the Commission shall be
prohibited.
Section 21. Exemptions from Prohibited.
Mergers and Acquisitions. – Merger or
acquisition agreement prohibited under Section
20 of this Chapter may, nonetheless, be exempt
from prohibition by the Commission when the
parties establish either of the following:
A. The concentration has brought about or
is likely to bring about gains in
efficiencies that are greater than the
effects of any limitation on competition
that result or likely to result from the
merger or acquisition agreement; or
B. A party to the merger or acquisition
agreement is faced with actual or
imminent financial failure, and the
agreement represents the least
anticompetitive arrangement among
the known alternative uses for the
failing entity’s assets;
Section 22. Burden of Proof. – The burden of
proof under Section 21 lies with the parties
seeking the exemption. A party seeking to rely
on the exemption specified in Section 21(a)
must demonstrate that if the agreement were
not implemented, significant efficiency gains
would not be realized.
Disposition of Cases Section 26. Determination
of Anti-Competitive Agreement or Conduct. – In
determining whether anti-competitive
agreement or conduct has been committed, the
Commission shall:
A. Define the relevant market allegedly
affected by the anti-competitive
agreement or conduct, following the
principles laid out in Section 24 of this
Chapter;
B. Determine if there is actual or potential
adverse impact on competition in the
relevant market caused by the alleged
agreement or conduct, and if such
impact is substantial and outweighs the
actual or potential efficiency gains that
result from the agreement or conduct;
C. Adopt a broad and forward-looking
perspective, recognizing future market
developments, any overriding need to
make the goods or services available to
consumers, the requirements of large
investments in infrastructure, the
requirements of law, and the need of
our economy to respond to
international competition xxx;
 D. Balance the need to ensure that There shall be a rebuttable presumption of
competition is not prevented or market dominant position if the market share of
substantially restricted and the risk that an entity in the relevant market is at least fifty
competition efficiency, productivity, percent (50%), unless a new market share
innovation, or development of priority threshold is determined by the Commission for
areas or industries in the general that particular sector. Xxx
interest of the country may be deterred
Other Provisions
by overzealous or undue intervention;
and Section 46. Statute of Limitations. — Any action
E. Assess the totality of evidence on arising from a violation of any provision of this
whether it is more likely than not that Act shall be forever barred unless commenced
the entity has engaged in anti- within five (5) years from: For criminal actions,
competitive agreement or conduct the time the violation is discovered by the
including whether the entity’s conduct offended party, the authorities, or their agents;
was done with a reasonable commercial and For administrative and civil actions, the
purpose such as but not limited to time the cause of action accrues.
phasing out of a product or closure of a
business, or as a reasonable commercial Section 47. Prohibition on the Issuance of
response to the market entry or Temporary Restraining Orders, Preliminary
conduct of a competitor Injunctions and Preliminary Mandatory
Injunctions. — Except for the Court of Appeals
Section 27. Market Dominant Position. – In and the Supreme Court, no other court shall
determining whether an entity has market issue any temporary restraining order,
dominant position for purposes of this Act, the preliminary injunction or preliminary mandatory
Commission shall consider the following: injunction against the Commission in the
exercise of its duties or functions xxx.
a. The share of the entity in the relevant
market and whether it is able to fix
prices unilaterally or to restrict supply in
the relevant market;
b. The existence of barriers to entry and
the elements which could foreseeably
alter both said barriers and the supply
from competitors;
c. The existence and power of its
competitors;
d. The possibility of access by its
competitors or other entities to its
sources of inputs;
e. The power of its customers to switch to
other goods or services;
f. Its recent conducts; and
g. Other criteria established by the
regulations of this Act.