CONSUMER PROTECTION

PRESENTED BY:
DURAN, LYKA MHEA NADINE
SHANGKULA, SHERMALYN
TIBERIO, RANE ABEGAIL
 Consumer Product Quality and Safety
Deceptive Sales Acts and Practices
Table of Product Service and Warranty
Contents Consumer Rights
-Price Tag Act
-Lemon Law
 WHAT IS CONSUMER?
Refers to any individuals or households that use goods and
services generated within the economy.
WHAT IS CONSUMER PROTECTION?
A concept that are designed to ensure fair competition and
the free flow of truthful information in the marketplace
OBJECTIVE OF CONSUMER PROTECTION

To protect the consumer from abuse

To provide a venue for grievance/redress
To ensure a better quality of living by improving the
quality of consumer products and services
THE CONSUMER ACT OF THE PHILIPPINES

Republic Act No. 7394 : It is the policy of the State to

protect the interests of the consumer, promote his
general welfare and to establish standards of conduct
for business and industry.
 Towards this end, the State shall implement measures to achieve the
following objectives:

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.
Who are the agencies concerned?

a) Department of Health: food, drugs,

cosmetics, devices and substances

b) Department of Agriculture : products

related to agriculture

c) Department of Trade and Industry : other

consumer products not specified above
 What are the scope of agencies implemented?
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.
Deceptive Acts
a consumer product or service can be a supplied in a quantity greater than the
supplier intends.
a service, or repair of a consumer product is needed when in fact it is not.
a specific price advantage of a consumer product exists when in fact it does not.
the sales act or practice involves or does not involve a warranty, a disclaimer or
warranties, particular warranty terms or other rights, remedies or obligations if
the indication is false.
the seller or supplier has a sponsorship, approval, or affiliation he does not have
Unfair or Unconscionable Sales Act or Practice
a) that the producer, manufacturer, distributor, supplier or seller took advantage of the
inability of the consumer to reasonably protect his interest because of his inability to
understand the language of an agreement, or similar factors;
b) that when the consumer transaction was entered into, the price grossly exceeded the price
at which similar products or services were readily obtainable in similar transaction by like
consumers;
c) that when the consumer transaction was entered into, the consumer was unable to receive a
substantial benefit from the subject of the transaction;
d) that when the consumer was entered into, the seller or supplier was aware that there was no
reasonable probability or payment of the obligation in full by the consumer; and
e) that the transaction that the seller or supplier induced the consumer to enter into was
excessively one-sided in favor of the seller or supplier.
Product
Service and
Warrantly
Article 68 .
a.Terms of express 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
clearly identify himself as the warrantor; 2) identify the party to whom the warranty is
extended; 3) state the products or parts covered; 4) state what the warrantor 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 notice of defect,
malfunction or failure to conform to the warranty, the warrantor will perform any
obligation under the warranty.
 Product
Service and
Warrantly

b. Express Warranty
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 - A written warranty shall clearly and conspicuously

designate such warranty as:
* Full Warranty
* Limited Warranty
 Labelling and
Packaging

Legal Basis

Republic Act No. 7394

CONSUMER ACT OF THE PHILIPPINES

It is policy of the state the PROTECT the interests of

the consumer promote his general welfare and to
establish standards of conduct for business and
industry.
 Labelling and
Packaging
Article 77 – Minimum labelling requirements for
consumer products

Label needs its correct registered trade or brand

name, its duly trade mark, duly business name, the
address of the manufacturer, importer and repacker of
the consumer product of the Phil., its general make or
active ingredients, the net quantity of contents, and
country of manufacture (imported or not).
Labelling and
Packaging
 Labelling and
Packaging
Article 78 – Philippine Standard Mark

Article 80 – Special packaging of consumer products for

the protection for children
 Labelling and
Packaging
• Article 84 – Additional labelling requirements for food

(Expiration date, whether the product is semi-

cooked, fully processed, or ready-to-eat, and if the
ingredients used are natural or synthetic.)
 Labelling and
Packaging
Article 87 – Additional labelling requirements for
cosmetics

Article 94 – Labelling requirements for cigarette

Warning: Cigarette Smoking is Dangerous to your
Health
What are Consumer
Rights?
Right to basic needs
Right to safety
Right to information
Right to choose
Right to representation
Right to redress
Right to consumer education
Right to a healthy environment
WHAT ARE CONSUMER RIGHTS?
Right to basic needs: which guarantee survival, adequate food, clothing,
shelter, health care, education and sanitation

Right to safety: to be protected against the marketing of goods or the

provisions of the services that are hazardous to health and life.

Right to information: to be protected against dishonest or misleading

advertising or labeling and the right to be given the facts and information
needed to make informed choice.

Right to choose: to have available a variety of products and services at

competitive prices.
WHAT ARE CONSUMER RIGHTS?
Right to representation: to express consumer interests in the making and
execution of government policies.

Right to redress: to be compensated for misrepresentation, shoddy goods or

unsatisfactory services.

Right to consumer education: to acquire the knowledge and skills necessary

to be an informed customer.

Right to health environment: to live and work in an environment which is

neither threatening nor dangerous and which permits a life of dignity and
well-being.
 What is Price
Tag Act?
R.A No. 71 An Act Requiring Price Tags or Labels to be Affixed on All Articles of
Commerce Offered for Sale at Retail and Penalizing Violations of Such Requirement

Section 1. All articles of commerce and trade offered for sale to the public at retail shall
be publicly displayed with appropriate tags or labels to indicate the price of each
article and said articles shall be sold uniformly and without discriminations at the
stated price: Provided, That the Secretary of Agriculture and Commerce may, upon the
recommendation of the Director of Commerce, exempt from time to time certain
articles of commerce and trade or certain classes of establishments from the provisions
of this Act. The Secretary of Agriculture and Commerce is hereby authorized to issue
rules and regulations to carry into effect the provisions of this section.
 What is Price
Tag Act?

Section 2. Any violation of this Act shall be punished by imprisonment of not more than
six months or a fine of not more than two hundred pesos, or both such fine and
imprisonment in the discretion of the court.

Section 3. This Act shall take effect on the sixtieth day after its approval.
 What is Price
Tag Act?
Article 81 of Republic Act' 7394, otherwise known as The Consumer Act of the
Philippines, provides that:

Art. 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, furlher, 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.
 What is
Lemon Law?

R.A No. 10642. An act strengthening consumer protection in the purchase of brand
new motor vehicles.

SECTION 1. Short Title. – This Act shall be known as the “Philippine Lemon Law”.

SEC. 2. Declaration of Policy. – It is hereby declared the policy of the State to

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.
What motor
vehicles are
covered under the
Lemon Law?

The Lemon Law covers only brand new motor vehicles: meaning vehicles
constructed entirely from new parts, and have never been sold nor operated in
any country. The Lemon Law further limits its coverage to only common four-
wheeled road vehicles such as cars, pick-ups, vans, sports utility vehicles, and Asian
utility vehicles.
What defects are
covered under the
Lemon Law?

The Lemon Law covers those irreparable nonconformities which substantially

impair the use, value, or safety of these new vehicles and prevent such motor
vehicles from conforming to the manufacturers’ or distributors’ standards or
specifications.
Within what
period may a
consumer avail of
his rights under
the Lemon Law?

The consumer may invoke his rights under the Lemon Law within the Coverage
Period which is 12 months from the date of the delivery of the motor vehicle, or for
as long as the motor vehicle has not run more than 20,000 km after such delivery,
whichever comes first.
What else needs to
be done before a
consumer can invoke
his rights under the
Lemon Law?

The consumer must have had the affected motor vehicle brought in for repair with
the Seller at least four separate times for the same complaint, and for all those
times, the nonconformity remains unresolved. Such repair attempts include the
replacement of parts, components, or assemblies of the motor vehicle.
After four (4)
unsuccessful repair
attempts, can the
consumer now avail
of his rights under
the Lemon Law?

The consumer must first notify the Seller, in writing that he wishes to invoke his
rights under the Lemon Law, and such notification must comply with the form and
procedure set forth in the Seller’s warranty booklet before such notice may be
binding upon the Seller.
After such notification, the Seller is given a final attempt to fix the nonconformity.
In case there is still a failure to fix the nonconformity, the consumer may then file
a complaint with the Department of Trade and Industry (“DTI”), invoking his rights
under the Lemon Law.