APRIL 15, 2012 DATE

NR # 2710
REF. NO.

Solon seeks strict enforcement of the Consumer Act of the Philippines

A lawmaker wants the Secretary of the Department of Trade and Industry (DTI) to strictly implement the provisions of Republic Act 7394 otherwise known as the Consumer Act of the Philippines particularly on the protection against deceptive, unfair and unconscionable sales acts or practices in the sales of pia cloth for the Barong Pilipino. Rep. Angelo Palmones (Party-list, AGHAM) filed House Resolution 2192 seeking the strict enforcement of fines as provided for under RA 7394 to serve as a deterrent to violators. RA 7394 imposes a fine of not less than P500 but not more than P10,000 or imprisonment of not less than 5 months but not more than one year or both upon the discretion of the court. RA 7394 or the Consumer Act of the Philippines of 1992, declared as a policy of the State to 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, Palmones said. Palmones said the Barong Pilipino and the terno are recognized national costumes in the Philippines. The highest quality Barong Pilipino is made from the finest pineapple (pia) leaf fibers, extracted from the native Red Spanish variety, that is hand processed and hand woven using hand looms. He said the pia fabric production and barong-making industry employs around 10,000 people, and the industry exports earnings estimated at about P315 million a year with the United States importing close to US$0.5 M annually. A pure pia fabric Barong Pilipino is priced at close to P8,000 compared to nonpia fabric barong which costs less than P3,000, Palmones said. Palmones said because of the significant price difference between a pure pia and non-pia Barong Pilipino, there has been a proliferation of non-pure pia barong labeled and sold as pia barong, thus deceiving the unsuspecting public. In many clothing outlets in Metro Manila and elsewhere, Barong Pilipino is sold as made of pia fabric even if it is not, Palmones said. Palmones said the practice is abetted by non-apprehension of violators of RA 7394 to the detriment of the industry and the people engaged in the production of pia fabric and pia Barong Pilipino. According to Palmones, Article 50 of RA 7394 provides that a deceptive act or

APRIL 15, 2012 DATE

NR # 2710
REF. NO.

practice by a seller or supplier in connection with a consumer transaction violates this Act 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 of fraudulent manipulation, induces a consumer to enter into a sale or lease transaction of any consumer product or service. Article 50 further provides than an act or practice of a seller or supplier is deceptive when the seller or supplier represents that a consumer product or service has the sponsorship, approval, performance, characteristics, ingredients, accessories, uses, or benefits it does not have. DTI should strictly implement the provisions of RA 7394 on the deceptive sale of non-pia fabrics as pia Barong Pilipino, Palmones said. (30) lvc