Consumer Protection Law Subject Matter of Consumer Transaction

Consumer Products and Services


Constitutional Basis
under RA 7394

Art. II, Sec. 15 - The State shall protect and
promote the right to health of the people and
instill health consciousness among them.
debts or obligations which are primarily for
Art. XVI, Sec. 9 - The State shall protect
consumers from trade malpractices and from
[Art. 4 (q)] - "Consumer products and services"
means goods, services and credits, 

personal, family, household or agricultural
purposes, which shall include but not limited to,
food, drugs, cosmetics, and devices.

substandard or hazardous products.

[Art. 4 (u)] - "Cosmetics" means (1) articles

Art. XVI, Sec. 11(2) - The advertising industry is
impressed with public interest, and shall be
regulated by law for the protection of consumers
and the promotion of the general welfare.
cleansing, beautifying, promoting attractiveness,
Only Filipino citizens or corporations or
associations at least seventy per centum of the
capital of which is owned by such citizens shall
intended to be rubbed, poured, sprinkled or
sprayed on, introduced into or otherwise applied
to the human body or any part thereof for
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.

be allowed to engage in the advertising industry.

[Art. 4 (ab)] - "Device" means an instrument,

The participation of foreign investors in the
governing body of entities in such industry shall
be limited to their proportionate share in the
capital thereof, and all the executive and
managing o cers of such entities must be
citizens of the Philippines.
(USP-NF) or any supplement to them, (2)
Art. XIII, Sec. 11 - The State shall adopt an
integrated and comprehensive approach to
health development which shall endeavor to
make essential goods, health and other social
services available to all the people at a ordable
cost. There shall be priority for the needs of the
underprivileged sick, elderly, disabled, women,
and children. The State shall endeavor to provide
free medical care to paupers.
metabolized for the achievement of any of its
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 o cial
United States Pharmacopoeia-National Formulary
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 a ect 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
principal intended purposes.

Art. XIII, Sec. 12 - The State shall establish and

maintain an e ective food and drug regulatory [Art. 4 (ad)] - "Drugs" mean (1) articles recognized
system and undertake appropriate health in the current o cial United States
manpower development and research, Pharmacopoeia-National Formulary, o cial
responsive to the country’s health needs and Homeopathic Pharmacopeia of the United States,
problems.
o cial National Drug Formulary, or any
supplement to any of them; and (2) articles
Art. XV, Sec. 3(2) - The State shall defend the intended for use in the other animals; and (3)
right of the family to a family living wage and articles (other than food) intended to a ect the
income.
structure or any function of the body of man or
animals; and (4) articles intended for use as a
component of any articles speci ed in clauses
Consumer Transaction (1), (2) or (3) but do not include devices or their
components, parts or accessories.

(1) (i) a sale, lease, assignment, award by chance,

or other disposition of consumer products,
including chattels that are intended to be
a xed to land, or of services, or of any right,
title, or interest therein, except securities as
de ned in the Securities Act and contracts of
insurance under the Insurance Code, or (ii) a
grant of provision of credit to a consumer for
purposes that are primarily personal, family,
household or agricultural, or;
intended to a ect the structure of any function of
(2) a solicitation or promotion by a supplier with
respect to a transaction referred to in clause 1
[Art. 4(s), RA 7394]
dosage directions; and (5) intended for use as a
The term "drug" when used in this Act shall
include herbal and/or traditional drug. They are
de ned as articles from indigenous plant or
animal origin used in folk medicine which are: (1)
recognized in the Philippine National Formulary;
(2) intended for use in the treatment or cure,
mitigation of disease symptoms, injury or bodily
defect for use in man; (3) other than food,
the body of man; (4) put into nishes, ready to
use form by means of formulation, dosage or
component of any of the articles speci ed in
clauses (1), (2), (3) and (4) of this paragraph.

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 [Art. 4 (ag)] - "Food" means 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. 
 human beings; or (2) any hazardous substance
[Art. 4 (ah)] - "Food additive" means any
substance, the intended use of which results or
may reasonably be expected to result, directly or
indirectly, in its becoming a component or
otherwise a ecting the characteristics of any
food (including any substance intended for use in
producing, manufacturing, packing, processing,
preparing, treating, packaging, transporting, or
holding food; and including any source of
radiation intended for any such use), if such
substance is not generally recognized, among
experts quali ed as having been adequately
shown through scienti c procedures to be safe
under the conditions of the intended use. 
 repeal of regulations pursuant to clause (2) or
[Art. 4 (ak)] - "Hazardous substance" means: (1)
the rules and regulations promulgated by the
(i) Any substance or mixture of substances
which is toxic, corrosive, irritant, a strong
sensitizer, ammable or combustible, or
generates pressure through decomposition,
heat or other means, if such substance or
mixture or substances may cause substantial
injury or substantial illness during or as a
proximate result of any customary or
reasonably foreseeable ingestion by children;
Any substance which the department nds to
be under the categories enumerated in clause
(1) (i) of this paragraph;
labeling of which, without authorization, bears the
(ii) Any radioactive substance, if, with respect to
such substance as used in a particular class
of article or as packaged, the Department,
upon approval of the Department determines
by regulation that the substance is su ciently
hazardous to require labeling in accordance
with this Section in order to protect the public
health;
the product of, or to have been packed or
(iii) Any toy or other articles intended for use by
children which the director may, by regulation,
determine the presence of an electrical,
mechanical or thermal hazard.
Health Products under the Food, Drug and
(2) This term shall not apply to food, drugs,
cosmetics, and devices nor to substances
intended for use as fuels when stored in
containers and used in the heating, cooking or
refrigeration system of a house, but such term
shall apply to any article which is not in itself a
pesticide but which is a hazardous substance, as
construed in clause (a) of paragraph (1), by
reason of bearing or containing such harmful
substances described therein.
(e) 'Food' means any processed substance which
[Art. 4 (bo)] - "Service" shall mean, with respect
to repair and service rms, services supplied in
connection with a contract for construction,
maintenance, repair, processing, treatment or
cleaning of goods or of xtures on land, or
distribution of goods, or transportation of goods. 
 (f) 'Drug' means: (1) articles recognized in o cial
[Art. 4 (bp)] - "Services" means services that are
the subject of a consumer transaction, either
together with, or separate from any kind of
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personal property, whether tangible or intangible. 

[Art. 4 (g)] - "Banned hazardous substance"
means (1) any toy or other articles intended for
use by children, which are hazardous per se, or
which bear or contain substances harmful to
intended or packaged in a form suitable for use in
the household, which the implementing agency
by regulation, classi es as "banned hazardous
substance" notwithstanding the existence of
cautionary labels, to safeguard public health
safety: Provided, That, the implementing agency
may, by regulation, exempt from this Act, articles
which by reason of their functional purpose
require the inclusion of the hazardous substance
involved and which bear appropriate labels giving
adequate directions and warnings for their safe
use.
Procedures for the issuance, amendment or
paragraph (g) of this Article shall be governed by
Department of Health: Provided, That if the
Department of Health nds that the distribution
for household use of the hazardous substance
involved presents an imminent hazard to the
public health, it may publish in a newspaper of
general circulation a notice of such nding and
such substance shall be deemed to be a "banned
hazardous substance" pending the issuance of
regulation formally banning such substance. 

[Art. 4 (v)] - "Counterfeit product" means any
consumer product which, or the container or
trademark, trade name, or other identifying mark,
imprint, or device, or any likeness thereof, of a
consumer product manufacturer, processor,
packer, distributor, other than the person or
persons who in fact manufactured, processed,
packed or distributed such product and which
thereby falsely purports or is represented to be
d i s t r i b u t e d b y s u c h c o n s u m e r p ro d u c t
manufacturer, processor, packer, or distributor.
Cosmetic Act (RA 3720 as amended by RA 9711)
Section 10 ( ) 'Health products' means food,
drugs, cosmetics, devices, biologicals, vaccines,
in-vitro diagnostic reagents and household/urban
hazardous substances and/or a combination of
and/or a derivative thereof. It shall also refer to
products that may have an e ect on health which
require regulations as determined by the FDA.
is intended for human consumption and includes
drink for man, beverages, chewing gum and any
substances which have been used as an
ingredient in the manufacture, preparation or
treatment of food.
pharmacopeias and formularies, including o cial
homeopathic pharmacopeias, or any
documentary supplement to any of them, which
are recognized and adopted by the FDA; (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 a ect the structure of any function of
the body of humans or animals; or (4)articles
intended for use as a component of any articles
speci ed in clauses (1), (2), or (3) but do not
include devices or their components, parts or
accessories.
generates pressure through decomposition,
(g) 'Device' means medical devices, radiation
devices and health-related devices.
injury or substantial illness during or as a
(1) 'Medical device' means any instrument,
apparatus, implement, machine, appliance,
implant, in-vitro reagent or calibrator,
software, material, or other similar or related
article intended by the manufacturer to be
used alone, or in combination, for human
beings for one or more of the speci c
purpose(s) of: diagnosis, prevention,,
monitoring, treatment or alleviation of disease;
diagnosis, monitoring, treatment, alleviation
of, or compensation for an injury;
investigation, replacement, modi cation, or
support of the anatomy or of a physiological
process; supporting or sustaining life;
preventing infection; control of conception;
disinfection of medical devices; and providing
information for medical or diagnostic
purposes by means of in-vitro examination of
specimens derived from the human body. This
device does not achieve its primary intended
action in or on the human body by
pharmacological, immunological, or metabolic
means but which may be assisted in its
intended function by such means.
containing such harmful substances
(2) 'Radiation device' means an electrical or
electronic apparatus emitting any ionizing or
non-ionizing electromagnetic or particulate
radiation; or any sonic; infrasonic, or
ultrasonic wave. It includes ionizing radiation
emitting equipment which is not intentionally
designed to produce radioactive materials.
cure, mitigate, treat or prevent disease or its
(3) 'Health-related device' means any device not
used in health care but has been determined
by the FDA to adversely a ect the health of
the people.
under the Price Act (RA 7581, as

(h) 'Cosmetics' means any substance or
preparation intended to be placed in contact with
the various external parts of the human body or
with the teeth and the mucous membranes of the
oral cavity, with a view exclusively or mainly to
cleaning them, perfuming them, changing their
appearance and/or correcting body odor, and/or
protecting the body or keeping them in good
condition.
potable water in bottles and containers; fresh and
(ee) 'Food/dietary supplement' means a
processed food product intended to supplement
the diet that bears or contains one or more of the
following dietary ingredients: vitamin, mineral,
herb, or other botanical, amino acid, and dietary
substance to increase the total daily intake in
amounts conforming to the latest Philippine
recommended energy and nutrient intakes or
internationally agreed minimum daily
requirements. It usually is in the form of capsules,
tablets, liquids, gels, powders or pills and not
represented for use as a conventional food or as
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the sole item of a meal or diet or replacement of
drugs and medicines.
(gg) 'Household/urban hazardous substance' is:
(1) Any substance or mixture of substances
intended for individual or limited purposes and
which is toxic, corrosive, an irritant, a strong
sensitizer, is ammable or combustible, or
heat or other means, if such substance or
mixture of substances may cause substantial
proximate result of any customary or
reasonably foreseeable ingestion by children,
but shall not include agricultural fertilizer,
pesticide, and insecticide, and other
economic poisons, radioactive substance, or
substances intended for use as fuels,
coolants, refrigerants and the like;
(2) Any substance which the FDA nds to be
under the categories enumerated in clause (1)
of this paragraph;
(3) Any toy or other articles intended for use by
children which the FDA may determine to
pose an electrical, chemical, physical, or
thermal hazard; and
(4) This term shall not apply to food, drugs,
cosmetics, devices, or to substances intended
for use as fuels when stored in containers and
used in the heating, cooking or refrigeration
system of a house, but such term shall apply
to any article which is not in itself an
agricultural pesticide but which is a hazardous
substance, as construed in paragraph (1) of
this section, by reason of bearing or
described therein.
(hh) 'In-vitro diagnostic reagents' are reagents
and systems intended for use in the diagnosis of
disease or other conditions, including a
determination of the state of health, in order to
sequelae.
Basic Necessities and Prime Commodities
amended by RA 10623)
[Sec. 3 (1)] “Basic necessities” are goods vital to
the needs of consumers for their sustenance and
existence in times of any of the cases provided
under Section 6 or 7 of this Act such as, but not
limited to, rice, corn, root crops, bread; fresh,
dried or canned sh and other marine products;
fresh pork, beef and poultry meat; fresh eggs;
processed milk; fresh vegetables and fruits;
locally manufactured instant noodles; co ee;
sugar; cooking oil; salt; laundry soap and
detergents; rewood; charcoal; household
lique ed petroleum gas (LPG) and kerosene;
candles; drugs classi ed as essential by the
Department of Health and such other goods as
may be included under Section 4 of this Act.
[Sec. 3 (8)] “Prime commodities” are goods not
considered as basic necessities but are essential
to consumers in times of any of the cases
provided under Section 7 of this Act such as, but
not limited to, our; dried, processed or canned
 pork, beef and poultry meat; dairy products not
falling under basic necessities; onions, garlic,
vinegar, patis, soy sauce; toilet soap; fertilizer,
pesticides and herbicides; poultry, livestock and
shery feeds and veterinary products; paper;
school supplies; nipa shingles; sawali; cement;
clinker; GI sheets; hollow blocks; plywood;
plyboard; construction nails; batteries; electrical
supplies; light bulbs; steel wire; all drugs not
classi ed as essential drugs by the Department
of Health and such other goods as may be
included under Section 4 of this Act.
or in any foreign state or country.
Food under Food Safety Act of 2013 (RA 10611)
[Sec. 3 (j)] Motor vehicle refers to any self-
[Sec. 4(g)] Food refers to any substance or
product whether processed, partially processed
or unprocessed that is intended for human
consumption. It includes drinks, chewing gum,
water and other substances which are
intentionally incorporated into the food during its
manufacture, preparation and treatment.
sprinklers, lawn mowers and heavy equipment
Toys and Games under the Toy and Game
Safety Labeling Act of 2013 (RA 10620)
cranes, and vehicles which run only on rails or
[Sec. 4] Labeling Requirements for Toys and
Games. – All toys and games locally or
internationally manufactured that are imported,
donated, distributed and sold in the Philippines
shall comply with the appropriate provisions on
safety labeling and manufacturer’s markings
found in the Philippine National Standards (PNS)
for the safety of toys: Provided, That this shall not
apply to toys and games which are not intended
for children including, but not limited to,
memorabilia or collectibles: Provided, further,
That the Department of Trade and Industry (DTI)
shall cause the e ective dissemination of the
PNS in both the traditional form of mass media
and the internet to guide manufacturers, retailers,
distributors and various sellers.
[Rule III, Sec. 1.17 IRR of RA 10620] Household/
Urban Hazardous Substance - any toy or other
articles intended for use by children which the
FDA may determine to pose an electrical,
chemical, physical, or thermal hazard. For this
purpose “toys and other articles intended for use
by children” shall refer to those toys and articles
speci ed to be for children less than fourteen (14)
years of age.
any of them;
[Rule III, Sec. 1.30 IRR of RA 10620] Toy and
Game - an object or a number of objects clearly
intended as plaything for children as de ned in
these Rules, subject to the exclusions as
provided herein.
body or animals;
Telecommunications Services under the Public
Telecommunications Policy Act (RA 7925)
not including devices or their components,


[Sec. 3 (a)] Telecommunications - any process
which enables a telecommunications entity to
relay and receive voice, data, electronic
messages, written or printed matter, xed or
moving pictures, words, music or visible or
audible signals or any control signals of any
design and for any purpose by wire, radio or
other electromagnetic, spectral, optical or
technological means.
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Motor Vehicles under the Lemon Law

(RA 10642)
[Sec. 3 (a)] Brand new motor vehicle refers to a
vehicle constructed entirely from new parts and
covered by a manufacturer’s express warranty at
the time of purchase that it has never been sold
or registered with the Department of
Transportation and Communications (DOTC) or
an appropriate agency or authority, and has never
been operated on any highway of the Philippines,
propelled, four (4) wheeled road vehicle designed
to carry passengers including, but not limited to,
sedans, coupes, station wagons, convertibles,
pick-ups, vans, sports utility vehicles (SUVs) and
Asian Utility Vehicles (AUVs) but excluding
motorcycles, delivery trucks, dump trucks, buses,
road rollers, trolley cars, street sweepers,
such as, but not limited to, bulldozers,
payloaders, graders, forklifts, amphibian trucks,
tracks, and tractors, trailers and traction engines
of all kinds used exclusively for agricultural
purposes. Trailers having any number of wheels,
when propelled or intended by attachment to a
motor vehicle, shall be classi ed as separate
motor vehicle with no power rating.
Drugs and Medicines under the Universally
Accessible, Cheaper and Quality Medicines Act
(RA 9502)
[Sec. 4 (c)] "Drugs and medicines" refers to any
chemical compound or biological substance,
other than food, intended for use in the
treatment, prevention or diagnosis of disease in
humans or animals, including but not limited to:
(1) any article recognized in the o cial United
States Pharmacopoeia-National Formulary
(USP-NF), o cial Homeopathic
Pharmacopoeia of the United States,
Philippine Pharmacopoeia, Philippine National
Drug Formulary, British Pharmacopoeia,
European Pharmacopoeia, Japanese
Pharmacopoeia, Indian Pharmacopoeia, any
national compendium or any supplement to
(2) any article intended for use in the diagnosis,
cure, mitigation, treatment, or prevention of
disease in humans or animals;
(3) any article other than food intended to a ect
the structure or any function of the human
(4) any article intended for use as a component of
any articles speci ed in clauses (1), (2), and (3)
parts, or accessories; and
(5) herbal and/or traditional drugs which are
articles of plant or animal origin used in folk
medicine. x x x
[Sec. 4 (d)] "Essential drugs list or national drug
formulary" refers to a list of drugs prepared and
periodically updated by the Department of Health
on the basis of health conditions obtaining in the
 Philippines as well as on internationally accepted • Executive Order No. 106 dated February
criteria.
2020

• FDA Circular No. 2021-016 (Licensing

[Sec. 23] List of Drugs and Medicines that are Guidelines for Vapor Products and Heated
Subject to Price Regulation. - The list of drugs Tobacco Products) 

and medicines that are subject to price regulation
shall include, inter alia: CASE:

Department of Health v. Philip Morris Philippines
(a) All drugs and medicines indicated for Manufacturing, Inc.

treatment of chronic illnesses and life G.R. No. 202943, March 25, 2015

threatening conditions, such as, but not

limited to, endocrine disorders, e.g., diabetes Electric Service under Electric Power Industry
mellitus; gastrointestinal disorders, e.g., Reform Act (RA 9136)

peptic ulcer; urologic disorders, e.g., benign

prostatic hyperplasia (BPH); cardiovascular [Sec. 41] Promotion of Consumer Interests. - The
diseases, e.g., hypertension; pulmonary Energy Regulatory Commission shall handle
diseases, e.g., pulmonary tuberculosis (PTB), consumer complaints and ensure the adequate
asthma; auto-immune diseases, e.g., promotion of consumer interests.

systemic lupus erythematosus (SLE); skin

diseases, e.g., psoriasis; neuro-psychiatric See also: Magna Carta for Residential Electricity
disorders; other infectious diseases, e.g., Consumers, as amended by ERC Resolution No.
human immunode ciency virus-acquired 28, series of 2010.

immune de ciency syndrome (HIV-AIDS); and 


other conditions such as organ transplants CASE:

and neoplasm;
Manila Electric Co. v. Nordec Philippines

(b) Drugs and medicines indicated for prevention 861 SCRA 515 (2018) 

of diseases, e.g., vaccines, immunoglobulin,
anti-sera;
Persons or Entities
(c) Drugs and medicines indicated for prevention
of pregnancy, e.g., oral contraceptives;
Consumer
(d) Anesthetic agents;

(e) Intravenous uids;

[Art. 4 (n), RA 7394] - Consumer means a natural
(f) Drugs and medicines that are included in the person who is a purchaser, lessee, recipient or
Philippine National Drug Formulary (PNDF) prospective purchaser, lessor or recipient of
Essential Drug List; and
consumer products, services or credit.
(g) All other drugs and medicines which, from
time to time, the Secretary of the Department Supplier
of Health determines to be in need of price
regulation.
[Art. 4 (bu), RA 7394] - Supplier means a person,
other than a consumer, who in the course of his
CASE:
 business, solicits, o ers, advertises, or promotes
Roma Drug v. RTC of Guagua
 the disposition or supply of a consumer product
G.R. No. 149907, April 16, 2009
or who other than the consumer, engages in,
enforces, or otherwise participates in a consumer
COVID-related Products transaction, whether or not any privity of contract

 actually exists between that person and the
Refer to various DTI issuances covering consumer, and includes the successor to, or
consumer products and concerns relating to assignee of, any right or obligation on of the
COVID-19 prevention and consumer protection supplier.
during the pandemic 

https://www.dti.gov.ph/covid19/issuances/
NOTE: See liabilities under Arts. 99-107.

Cigarettes, Tobacco, Tobacco Products Manufacturer

Includes: Heated Tobacco Products (HTPs); [Art. 4 (as), RA 7394] - Manufacturer means any
Electronic Nicotine/Non-Nicotine Delivery person who manufactures, assembles or
Systems (ENDS/ENNDS) and Other Novel processes consumer products, except that if the
Tobacco Products.
goods are manufactured, assembled or
processed for another person who attaches his
• RA 9211 (Tobacco Regulation Act of 2003)
own brand name to the consumer products, the
• I n t e r- A g e n c y C o m m i t t e e - To b a c c o latter shall be deemed the manufacturer. In case
Memorandum Circular No. 1, Series of 2004, of imported products, the manufacturer's
IRR of RA 9211
representatives or, in his absence, the importer,
• I n t e r- A g e n c y C o m m i t t e e - To b a c c o shall be deemed the manufacturer.

Memorandum Circular No. 1, Series of 2008,

Monitoring and Enforcement Guidelines of [Sec. 10 (v) of RA 3720 as amended by RA 9711]
RA 9211 and its IRR RA 10643 (Graphic ‘Manufacturer’, in relation to a health product,
Health Warnings Law)
means an establishment engaged in any and all
• IRR of RA 10643
operations involved in the production of health
• Sec. 3, RA 11467
products including preparation, processing,
compounding, formulating, lling, packing,

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 repacking, altering, ornamenting, nishing and consumer product other than a manufacturer of
labeling with the end in view of its storage, sale the product.

or distribution: Provided, That the term shall not

apply to the compounding and lling of A consumer product bears a private label if (1)
prescriptions in drugstores and hospital the product or its container is labeled with a
pharmacies. A trader shall be categorized as a brand or trademark of a person other than its
manufacturer.
manufacturer; or (2) the brand or trademark of the
manufacturer of such product does not appear
Seller/Reseller, Distributor, Importer,
 on such label.

Exporter, Wholesaler, Trader

[Art. 4 (ac), RA 7394] - Distributor means any
person to whom a consumer product is delivered
or sold for purposes of distribution in commerce,
except that such term does not include a
manufacturer or retailer of such product.
the public to distinguish the business of the
[Art. 4 (bn), RA 7394] - Seller means a person
[Art. 4 (bx), RA 7394] - Trade name or trademark
means a word or words, name, title, symbol,
emblem, sign or device or any combination
thereof used as an advertisement, sign, label,
poster or otherwise for the purpose of enabling
person who owns and uses said trade name or
trademark.

engaged in the business of selling consumer

products directly to consumers. It shall include a [Sec. 4.1, RA 8293] - The term “intellectual
supplier or distributor if (1) the seller is a property rights” consists of:

subsidiary or a liate of the supplier or distributor;

(2) the seller interchanges personnel or maintains a) Copyright and Related Rights;

common or overlapping o cers or directors with b) Trademarks and Service Marks;

the supplier or distributor; or (3) the supplier or c) Geographic Indications;

distributor provides or exercises supervision, d) Industrial Designs;

direction or control over the selling practices of e) Patents;

the seller.
f) Layout-Designs (Topographies) of Integrated
Circuits; and

NOTE: Art. 98, RA 7394 on Liability of Tradesman g) Protection of Undisclosed Information

or Seller.

[Sec. 4.2, RA 8293] - The term “technology

[Sec. 10 (r) of RA 3720 as amended by RA 9711]
- ‘Distribute’ means the delivery or sale of any
health product for purposes of distribution in
commerce, except that such term does not
include the manufacture or retail of such product.
including management contracts; and the
[Sec. 10 (bb) of RA 3720 as amended by RA
9711] - ‘Distributor/importer/exporter’ means any
establishment that imports or exports raw
transfer arrangements” refers to contracts or
agreements involving the transfer of systematic
knowledge for the manufacture of a product, the
application of a process, or rendering of a service
transfer, assignment or licensing of all forms of
intellectual property rights, including licensing of
computer software except computer software
developed for mass market.

materials, active ingredients and/or nished

products for its own use or for wholesale
distribution to other establishments or outlets. If
the distributor/importer/exporter sells to the
general public, it shall be considered a retailer.
conditions that may in particular cases constitute
[Sec. 10 (cc) of RA 3720 as amended by RA
9711] - ‘Distributor/wholesaler’ means any
establishment that procures raw materials, active
[Sec. 85, RA 8293] - Voluntary License Contract. ‑
To encourage the transfer and dissemination of
technology, prevent or control practices and
an abuse of intellectual property rights having an
adverse e ect on competition and trade, all
technology transfer arrangements shall comply
with the provisions of this Chapter.

ingredients and/or nished products from local

establishments for local distribution on wholesale [Sec. 89, RA 8293] - Rights of Licensor. ‑ In the
basis.
absence of any provision to the contrary in the
technology transfer arrangement, the grant of a
license shall not prevent the licensor from
Buyer/Retailer/Dealer
granting further licenses to third person nor from
exploiting the subject matter of the technology
[Art. 4 (bk), RA 7394] - Retailer means a person transfer arrangement himself.

engaged in the business of selling consumer

products directly to consumers.
[Sec. 90, RA 8293] - Rights of Licensee. ‑ The
[Sec. 10 (mm) of RA 3720 as amended by RA
9711] - ‘Retailer’ means any establishment which
sells or o ers to sell any health product directly to
licensee shall be entitled to exploit the subject
matter of the technology transfer arrangement
during the whole term of the technology transfer
arrangement.

the general public.”

Creditor in a Consumer Credit Transaction

Intellectual Property Rights


Licensor and Licensee
[Art. 4 (bf), RA 7394] - Private labeler means an
owner of a brand or trademark on the label of
[Art. 4 (o), RA 7394] - Consumer credit means any
credit extended by a creditor to a consumer for
the sale or lease of any consumer product or
service under which part or all of the price or

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payment therefor is payable at some future time,
whether in full or in installments.

[Art. 4 (x), RA 7394] - Credit Sale means a sale

products, services or an interest in land to a
person on credit where a debt is payable in
installments or a nance charge is imposed and
includes any agreement in the form of a bailment
of products or lease of products or real property
if the bailee or lessee pays or agrees to pay
compensation for use a sum substantially
equivalent to or in excess of the aggregate value
of the products or real property involved and it is
agreed that the bailee or lessee will become, or
for no other or a nominal consideration has the
option to become, the owner of the products or
real property upon full compliance with the terms
of the agreement.

[Art. 4 (z), RA 7394] - Creditor means any person

engaged in the business of extending credit and
shall include any person who as a regular
business practice makes loans or sells or rents
property or services on a time, credit or
installment basis, either as principal or as agent
who requires as an incident to the extension of
credit, the payment of a nance charge.

Agent/Contractor/Service provider

EG: packer, transporter, logistics service provider,

warehouse operator

Advertiser

[Art. 4 (d), RA 7394] Advertiser means the client

of the advertising agency or the sponsor of the
advertisement on whose account the advertising
is prepared, conceptualized, presented or
disseminated.

Third Parties

CASE:

Petron Corp. v. Sps. Jovero, et al.

G.R. No. 151038, January 18, 2012

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