II. CONSUMER PROTECTION
To protect the public against unreasonable risks of injury
 It is the policy of the State;
1. To protect the interests of the consumer,
2. Promote his general welfare, and
3. To establish standards of conduct for business and
industry
 Objectives
1. Protection against hazards to health and safety;
2. Protection against deceptive, unfair, and unconscionable
sales acts and practices;
3. Provision of information and education to facilitate
sound choice and the proper exercise of rights by the
consumer;
4. Provision of adequate rights and means of redress; and
5. Involvement of consumer representatives in the
formulation of social and economic policies
Rights of the Consumer
1. Right to basic needs
2. Right to safety
3. Right to information
4. Right to choice
5. Right to representative
6. Right to redress
7. Right to consumer education
8. Right to healthy environment
II.a. CONSUMER PRODUCT QUALITY AND SAFETY
 Duties of the State:
1. To develop and provide safety and quality standards for
consumer products, including performance or use-
oriented standards, codes of practice, and methods of
tests;
2. To assists the consumer in evaluating the quality,
including safety, performance and comparative utility of
consumer products;
3.
associated with consumer products;
4. To undertake research on quality improvement of
products and investigation into causes and prevention of
product related deaths, illness, and injuries;
5. to assure the public of the consistency of standardized
products
 Implementing agencies:
1. Department of Health – foods, drugs, cosmetics, devices,
and substances;
2. Department of Agriculture - products related to
agriculture;
3. Department of Trade and Industry - other consumer
products
 The concerned department shall adopt existing government
domestic product quality and safety standards.
In the absence of such standards, the concerned department shall
form specialized technical committees composed of equal number
of representatives from each of the Government, business and
consumer sectors to formulate, develop and purpose product
quality and safety standards.
 In case the department, upon petition by an interested party or
its own initiative and after due hearing and notice, determines a
consumer product to be substandard or materially defective, it
shall so notify the manufacturer, distributor or seller thereof of
such finding and order such manufacturer, distributor or seller to:
1. Give notice to the public of the defect or failure to
comply with the product quality and safety standards;
and
2. Give notice to each distributor or retailer of such
product.
 The department shall also direct the manufacturer, distributor or
seller of such product to extend any or all of the following
remedies to the injured person:
 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
determined by the department
 The manufacturer shall avail of the Philippine Standard
Certification Mark which concerned department shall grant after
determining the product’s compliance with the relevant standard
in accordance with the implementing rules and regulation.
 Imported Products
1. Refused admission if it:
a) Fails to comply with an applicable consumer
product quality and safety standard or rule
b) Is or has been determined to be injurious,
unsafe, and dangerous;
c) Is substandard; or
d) Has material defect
2. Owner or consigner of the imported products may
manifest under bond that none of the above ground for
non-admission exists or that measures have been taken
to cure them before they are sold, distributed, offered
for sale to the general public
3. Any consumer product, the sale or use of which has been
banned or withdrawn in the country of manufacture,
shall not be imported into the country.
4. Non-admitted imported products may be released from
customs custody under bond for purpose of permitting
the owner or consignee an opportunity to so modify such
product.
5. If the product cannot be so modified, or consignee is not
proceeding to satisfactorily modify such product 
refused admission, and direct redelivery into customs
custody, or seize the product if redelivered.
6. Non-admitted imported products must be exported.
Otherwise, products undergo destruction.
 Exported Products – safety and quality provision on imported
products shall apply to any consumer product if:
1. It can be shown that such product is manufactured, sold
or held for sale for export from the Philippines, or that
such product was imported for export, unless such
consumer product is in fact distributed in commerce for
use in the Philippines; and
2. Such consumer product or the packaging thereof bears a
stamp or label stating that such consumer product is
intended for export and actually exported.
II.B. DECEPTIVE, UNFAIR, AND UNCONSIONABLE SALES ACTS AND
PRACTICES
II.B.i. Deceptive sales acts or practices
 An act or practices where the producer, manufacturer, supplier or
seller through concealment, false representation or fraudulent
manipulation, induces a consumer to enter into a sales or lease
transactions of any consumer products or service.
 An act or practice of a seller or supplier is deceptive when it
represents that:
1. Consumer product/service has the sponsorship, approval
performance, characteristics, ingredients, accessories,
uses or benefits it does not have;
2. Consumer product/service is of a particular standard,
quality, grad, style, or model when in fact it is not;
3. Consumer product/service is new, original or unused,
when it fact, it is in a deteriorated, altered,
reconditioned, reclaimed or second-hand state;
4. Consumer product/service is available to the consumer
for a reason that is different from the fact;
 5. Consumer product/service has been supplied in
accordance with the previous representation when in
fact it is not;
6. Consumer product/service can be supplied in a quantity
greater than the supplier intends;
7. Services, or repair of a consumer product is needed when
in fact it is not;
8. Specific price advantage of a consumer product exists
when in fact it does not;
9. Sales act or practices involves or does not involve a
warranty, a disclaimer of warranties, particular warranty
terms or other rights, remedies or obligation if the
indication is false; and
10. Seller or supplier has a sponsorship, approval, or
affiliation he does not have.
 Deceptive act or practice by seller or supplier in connection with a
consumer transaction violates this act whether it occurs before,
during or after the transaction.
II.b.ii. Unfair or unconscionable sales acts or practices
 Act or practice where 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, distributor, manufacturer, supplier, or
seller.
 Circumstances to be considered:
1. Producer, manufacturer, distributor, supplier, or seller
took advantage of the inability of the consumer to
reasonably protect his interest because of his inability to
understand the language of an agreement of similar
factors;
2. When consumer transaction was entered into, the price
gross they exceeded the price at which similar products
or services were readily obtainable in similar transaction
by like consumers;
3. When consumer transaction was entered into, the
consumer was unable to receive a substantial benefit
from the subject of the transaction;
4. When the consumer was entered into, the seller or
supplier was aware that there was no reasonable
probability or payment of the obligation imposed by the
consumer; and
5. Transaction that the seller or supplier induce the
consumer to enter into a successively one-sided in favor
of the seller or supplier.
 Unfair or unconscionable sales act or practice by a seller or
supplier in connection with the consumer transaction violates the
act whether it occurs before, during, or after the consumer
transaction.
II.b.ii. Chain distribution plans or pyramid sales schemes
 Sales devices whereby a person, upon condition that he makes an
investment, is granted by the manufacturer or his proper
tentative are right to recruit to profit one or more additional
persons who will also be granted such right to record upon
condition of making similar investments.
The profits of the person employing such a plan or derive
primarily from the recruitment of other plans into the plan rather
than from the sale of consumer products, services, or credit
 Not be employed in the sale of consumer products
II.b.ii.2. Home solicitation sales
 Allowed it with permit from the DTI
 Conducted only between 9:00 a.m. and 7:00 p.m. of each working
day. exception: other times, if agreed upon
Conducted only by a person who has the proper identification and
authority for his principle to make such solicitation
 HSS shall not represent that: (a) the buyer has been; (b) a survey,
test our research is being conducted, (c) the seller is making a
special offer to a few persons only for a limited period of time
II.b.ii.3 Referrals sales
 Takes place when an existing consumer provides nation of a
prospective sales representatives
 GR: not be used in a sale of consumer products.
XPN: sender execute in favor of the buyer a written undertaking
that will grant a specified compensation or other benefit to set by
your in return for each and every transaction consummated by
said seller with the persons referred by said by or for subsequent
sales that said buyers has helped the seller enter into.
II.b.ii. Penalties
1. Fine -5k to 10k
2. Imprisonment - not more than 1 year
3. Both, at the discretion of the court
II.c. PRODUCT AND SERVICE WARRANTY
II.c.i. Consumer product with warranty
 Any seller or manufacturer who gives an express warranty shall:
1. Set forth the terms of warranty in clear and readily
understandable language and clear to identify himself as
a warrantor;
2. Identify the party to whom the warranty is extended;
3. State the products are parts covered;
4. State what the warrant or will do in the event of a defect
malfunction of failure to conform to the written warranty
and at whose expense
5. State what the consumer must do to avail of the rights
which accrue to the warranty; and
6. Stipulate the period within which, after the notice of
defect, malfunction, or failure to conform to the
warranty, the warranty will perform any obligation under
the warranty.
 All written warranties or guarantees issued by a manufacturer,
producer, or importer shall be operative from the moment of sale.
 Sales report - all sales made by distributors of products shall be
reported to the manufacturer producer importer of the products
sold within 30 days from date of purchase unless otherwise
agreed upon.
1. It shall contain the date of purchase, model of the
product bought, it serial number, name, and address of
the buyer.
2. It is equivalent to the warranty registration with the
manufacturer, producer, or importer. Such registration is
sufficient to hold the manufacturer or producer importer
liable under its warranty.
 1. Manufacturer, producer, or importer
- primarily liable
2. Distributor
- Primarily liable, if no sales reported made
- Cannot ask for reimbursement for a costs incurred in
honoring the warranty
3. Retailer
- Subsidiary liable, if both distributor and mpi field to
honor the warranty
- Can ask reimbursement from distributor or mpi
 Warranty rights can be enforced by presentment of a claim
1. Warranty card artificial receipt or sales invoice
2. Product to be your serviced or returned
 Designation of warranties
1. Full warranty - if written warranty meets the minimum
requirements
2. Limited warranty - if written does not meet such
minimum requirements
  To meet the minimum standards for warranty; warranty shall:
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 a reasonable number of
attempts to remedy, the product continues to have the
defect or to malfunction.
Warrantor will not be required to perform the above
duties if i can show that the defect, malfunction, or
failure to confirm the written warranty was caused by
damage due to unreasonable use their off.
 Enforceability of the warranties:
1. Express - as to stipulation of the parties
2. Express with implied - both will be of equal duration
3. Implied - not less than 60 days or more than 1 year
 Breach of warranties:
1. Express
a) Retain the goods + damages
b) Retain the goods + cancel the contract + recover
purchase price + damages
II.c.ii. Warranties in supply of services
 There is an implication 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
 When 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 ok purpose or are of such a mature 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
judgement
 This act on warranty shall not apply to professional services of
CPA's, architect engineers, lawyers, veterinarians, optometrists,
pharmacists, nurses, and other professional engaged in their
respective professional endeavors.
 Service firms shall guarantee workmanship and replacement of
spare parts for a period not less than 90 days which shall be
indicated in the pertinent invoices.
Il.c.iii. Prohibited acts
 1. Refusal without any valid legal cause by the local manufacturer
or any person obligated under the warranty or guarantee to
honor a warranty or guarantee issued;
2. Unreasonable delay by the local manufacturer or any person
obligated under the warranty or guarantee in honoring the
warranty:
3. Removal by any person of a product's warranty card for the
purpose of evading said warranty obligation;
4. Any false representation in an advertisement as to the
existence of a warranty or guarantee.
II.c.iv. Penalties
 1. Any person who shall violate the provisions of Art. 67
(Conditions and
Warranties governed by CC)
a) Fine-P500 to P5,000
b) Imprisonment - 1 to 2yrs
c) Both
2. Prohibited acts other than Art 67
a) Fine-P1,000 to P50,000
b) Imprisonment - 1 to 5yrs
c) Both
 Any imposition of any of the penalties is without prejudice to any
liability incurred under the warranty or guarantee.
II.d. LABELLING AND PACKAGING
  The State shall enforce compulsory labeling, and fair packaging to
enable the consumer to obtain accurate information as to the
nature, quality and quantity of the contents of consumer products
and to facilitate his comparison of the value of such products.
II.d.i. Prohibited acts
 It shall be unlawful for any person, either as principal or agent,
engaged in labeling or packaging of any consumer product, to
display or distribute or to cause to be displayed or distributed in
commerce any consumer product whose package or label does
not conform to the provisions hereof.
 Prohibition shall not apply to persons engaged in the business of
wholesale or retail distributors of consumer products.
XPNs: When they (a) are engaged in the packaging or labeling of
such products, (b) prescribe or specify by any means the manner
in which such products are packaged or labeled; or (c) having
knowledge, refuse to disclose the source of the mislabeled or
mispackaged products.
II.d.ii. Labeling requirements for consumer products
 Minimum labeling requirements
1. Its correct and registered trade name or brand name,
2. Its duly registered trademark;
3. Its duly registered business name;
4. The address of the manufacturer, importer, repacker of
the consumer product in the Phil,
5. Its general make or active ingredients;
6. 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,
7. Country of manufacturer, and
8. If a consumer product is manufactured, refilled or
repacked under license from a principal, the label shall so
state the fact
 Any word, statement or other information required by or under
authority:
1. Whether it is flammable or inflammable,
2. Directions for use, if necessary;
3. Warning of toxicity;
4. Wattage, voltage or amperes; or
5. Process of manufacture used if necessary shall appear on
the label or labeling with such conspicuousness as
compared with other words, statements, designs or
devices therein, and in such terms as to render it likely to
be read and understood by the ordinary individual under
customary conditions of purchase or use.
It shall form an integral part of the label without danger
of being erased or detached under ordinary handling of
the product.
 Label may contain the Philippine Product Standard Mark if it is
certified to have passed the consumer product standard
prescribed by the concerned department.
 A package shall be deemed to be non-functionally slack-filled if it
is filled to substantially less than its capacity for reasons other
than: (a) protection of the contents of such package, (b) the
requirements of machines used for enclosing the conter in such
package, or (c) inherent characteristics of package materials or
construction being used.
II.d.iii. Packaging of consumer products for the protection of children
 Standards for the special packaging of any consumer product may
be established if it finds that:
1. Degree or nature of the hazard to children in the
availability of such product, by reason of its packaging, is
such that special packaging is required to protect
children from serious personal injury or serious illness
resulting from handling and use of such product;
2. Special packaging to be required by such standard is
technically feasible, practicable and appropriate for such
product.
 The concerned department shall consider the:
a) reasonableness of such standard;
b) available scientific, medical and engineering
data concerning special packaging and
concerning accidental, ingestions, illnesses and
injuries caused by consumer product
c) manufacturing practices of industries affected
by this Act; and d) nature and use of consumer
products.
Il.d.iv. Additional labeling requirements
1. For food
a) Expiry or expiration date, where applicable;
b) Whether the consumer product is semi
processed, fully processed, ready to cook, ready
to eat, prepared food or just plain mixture
c) Nutritive value, if any
d) Whether the ingredients use are natural or
synthetic, as the case may be.
e) Such other labeling requirements as the
concerned department may deem necessary
and reasonable.
3. 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
4. For drugs- Generics Act shall apply
5. For cigarettes
a) 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"
b) 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 cake with
other printed matter on the package
c) Any advertisement of cigarette shall contain the
name warning as indicated in the label
II.e. CONSUMER RIGHTS
II.e.i. Price Tag Act
 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.
II.e.l.1. Manner of placing price tags
 Smaller consumer products-a price list placed at the nearest point
where the products are displayed may suffice.
 Price tags, labels or markings must be written clearly, indicating
the price of the consumer product per unit in pesos and centavos.
II.c.1.2. Regulations for price tag placements
 The concerned department shall prescribe rules and regulations
for the visible placement of price tags for specific consumer
products and services. There shall be no erasures or alterations of
any sort of price tags, labels or markings.
II.e.i.3. Penalties
 1. Fine P200 to P5,000
2. Imprisonment - Imo to 6mos
3. Both, upon discretion of the court
 Second conviction carries the penalty of revocation of business
permit and license
Il.e.ii. Lemon Law
 State must promote full protection to the rights of consumers in
the sale of motor vehicles against business and trade practices
 which are deceptive, unfair or otherwise inimical to consumers
and the public interest.
 The State recognizes that a MV is a major consumer purchase or
investment. Hence, the rights of consumers should be clearly
defined, incl. the means for redress for violations thereof.
II.e.ii.1. Requisites to invoke Lemon Law Rights
 1. Brand new MV
2. Purchased in the Philippines
3. Reported by a consumer to be in nonconformity with the
vehicle's manufacturer or distributor's standards or specifications
4. Within 12mos from the date of original delivery to the
consumer, or up to 20,000kms of operation after such delivery,
whichever comes first
 At any time within the Lemon Law rights period, AND after at least
4 separate repair attempts by the same manufacturer, distributor,
authorized dealer or retailer (MDA) for the same complaint, and
the nonconformity issue remains unsolved, the consumer may
invoke his rights under this Act.
 Notice of availment - Before availing of any remedy, the
consumer shall, in writing, notify the MDA of (1) the unresolved
complaint, and (2) the consumer's intention to invoke his rights
under this Act within the Lemon Law rights period.
After filing the notice, the consumer shall bring the vehicle to the
MDA from where the vehicle was purchased for a final attempt to
address the complaint of the consumer to his satisfaction.
 In case the nonconformity issue remains unresolved despite the
MDA's efforts to repair the vehicle, pursuant to the consumer's
availment of his Lemon Law rights, the consumer may file a
complaint before the DTI
 If the vehicle is not returned for repair, based on the same
complain, within 30CD from the date of notice of release of the
MV to the consumer following this repair attempt within the
Lemon Law rights period, the repair is deemed successful.
If the nonconformity issue still exists or persists after the 30 day
period but still within the Lemon Law rights period, the consumer
may be allowed to invoke his rights under this Act.
 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 residence to his regular workplace or
destination and vice versa, equivalent to:
1. Air-conditioned taxi fare, as evidenced by OR;
2. In such amount to be agreed upon by the parties;
3. A service vehicle at the option of the manufacturer
distributor, authorized dealer or retailer
11.e.ii.2. Remedies for dispute resolution
 DTI shall exercise exclusive and original jurisdiction over dispute
arising from the provisions of the Lemon Law
 Dispute resolution mechanisms
1. Mediation principles of negotiation, conciliation and
mediation towards amicable settlement between the
MDA and the consumer shall be strictly observed.
2. Arbitration if there is failure to settle the complaint
during the mediation proceedings, both parties may
voluntarily decide to undertake arbitration proceedings
3. Adjudication
a) In case there is finding of not-conformity, the
DTI shall rule in favor of the consumer and direct
the MDA to grant either the following remedies:
i. Replace the MV with a similar or
comparable MV in terms of
specifications and values subject to
availability, or
ii. Accept the return of the MV pay
purchase price collateral damages.
b) If the nonconformity of the MV is not found by
the DTI, it shall rule in favor of the MDA, and
direct the consumer to reimburse the MDA the
 costs incurred by the latter in validating the
consumer's complaints
 Reasonable allowance for use - whichever is lower bet:
1. 20% per annum deduction from purchase price; or
2. Formula = [(Distance traveled in kms) * (Purchase price) /
(100,000 kms)

 Disclosure on resale - if the returned MV be made available for

resale, the MDA shall, prior to sale or transfer, disclose in writing
to the next purchaser of the same vehicle the following
information:
1. MV was returned to the MDA;
2. Nature of the nonconformity which caused the return
and
3. Condition of the MV at the time of the transfer to the
MDA