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Consumer Protection ACT Notes
Laws on Business Organizations (LAW 3A)
Saint Louis University (Philippines)
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SALIENT POINTS OF THE CONSUMER PROTECTION ACT
Republic Act No. 7394 (Consumer Act Of The Philippines) Consituional Basis: Aricle XVI, Sect. 9 → “The state shall protect consumers from the trade malpracices and from substandard or hazardous products.”
Consumer → means a natural person who is a purchaser, lessee, recipient or prospecive purchaser, lessor or recipient of consumer products, services or credit
Consumer Protecion → concept that is designed to ensure fair compeiion and the free low of truthful informaion in the market place
Consumer Protecion Laws → these are laws designed to prevent businesses that engage in fraud on speciied unfair pracices from gaining an advantage over compeitors and provide addiional protecion for the weak and those unable to take care of themselves
Objecive 1. Protecion of customers against hazards to health and safety 2. Protecion of consumers against decepive, unfair ad unconscionable sales and promotes 3. Provision of informaion and educaion to facilitate sound choice and the proper exercise of rights by the consumer 4. Provision of adequate rights and means of redress 5. Involvement of consumer representaive in the formulaion of social and economic policies
Basic Policy a. to develop and provide safety and quality standards for consumer products, including performance or use- oriented standards, codes of pracice and methods of tests b. to protect the public against unreasonable risks of injury associated with consumer products c. to undertake research on quality improvement of products and invesigaion into causes and prevenion of d. to assure the public of the consistency of standardized products
What is a consumer product or service? → Refer to goods, service and credits, debts or obligaions which are primarily for personal, family, household or agricultural purpose, which shall include, but not to limited to food, drugs, cosmeics and devices
Agencies Mandated to Implement a. Department of Health → Foods, drugs, cosmeics, devices and substances b. Department of Agriculture → Products related to agriculture c. Department of Trade and Industry → Consumer products (other)
Inclusions Required in Consumer Product Quality and Safety Standards a. requirements as to performance, composiion, contents, design, construcion, inish, 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 product d. requirements as to precauions in storage, transporing and packaging
e. requirements that a consumer product be marked with or accompanied by clear and adequate safety warnings or instrucions, or requirements respecing the form of warnings or instrucions
Bureau of Philippine Standards (BPS-DTI) → governmental body under the Department of Trade and Industry → naional standards body of the Philippines → responsible in developing/adoping, implemening and promoing Philippine Naional Standards Body → establish PNS standards for products, as well as test methods and codes of pracice to provide the technical bases for the inspecion, tesing and ceriicaion of these products → provide Bureau of Customs, a list of products under Philippine Standards, the PRODUCT CERTIFICATION as a guide to incoming shipments → inspect or obtain samples from import shipments, covered by mandatory BPS product ceriicaion for tesing and ceriicaion purposes → issue condiional release pending the issuance of import commodity clearance and if denied, the importaion shall be re-exported by the importer → to conduct necessary tests for products → shall recommend to the Bureau of customs the issuance of warrant seizure and detenion for ofending shipment
Standard → document established by consensus and approved by a recognized body, that provides, for common and repeated use, rules, guidelines or characterisics for aciviies or their results, aimed at the achievement of the opimum degree of order in a given context → Based on the consolidated results of science, technology and experience, and aimed at the promoions of opimum community beneits → Means set of condiions to be fulilled to ensure the quality and safety of a product
Kinds of Standard 1. Basic Standard → Standard that has a wide ranging coverage or contains general provisions for one paricular ield → May funcion as a standard for direct applicaion or as a basis for other standards 2. Terminology Standard → Concerned with terms, usually accompanied by their deiniions, and someimes by explanatory notes, illustraions, examples 3. Tesing Standard → Concerned with test methods, someimes supplemented with other provisions related to tesing, such as sampling, use of staisical methods, sequence of tests 4. Product Standard → Speciies requirements to be fulilled by a product or a group of products to establish its itness for purpose 5. Service Standard → Speciies requirements to be fulilled by a service, to establish its itness for purpose 6. Interface Standard → Speciies: compaibility if products or systems at their points of interconnecion 7. Standard on Data Provided → Contains a list of characterisics for which values or other data are to be stated for specifying the product, process or service
Standardizaion → An acivity of establishing, with regard to actual or potenial problems, provision for common and repeated use, aimed at the achievement of the opimum degree order in a given context → Consists of the processes of formulaing, issuing and implemening standards → IMPORTANT BENEFITS: Improvement of the suitability of products, processes and services for their intended
g) country of manufacture, if imported; and h) if a consumer product is manufactured, reilled or repacked under license from a principal, the label shall so state the fact.
The following may be required by the concerned department in accordance with the rules and regulaions they will promulgate under authority of this Act:
a) whether it is lammable or inlammable; b) direcions for use, if necessary; c) warning of toxicity; d) watage, voltage or amperes; or e) process of manufacture used if necessary.
Any word, statement or other informaion required by or under authority of the preceding paragraph 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 condiions of purchase or use.
The above requirements shall form an integral part of the label without danger of being erased or detached under ordinary handling of the product.
→ ARTICLE 81. Price Tag Requirement. — It shall be unlawful to ofer 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 aricle and said products shall not be sold at a price higher than that stated therein and without discriminaion to all buyers: Provided, That lumber sold, displayed or ofered for sale to the public shall be tagged or labeled by indicaing thereon the price and the corresponding oicial name of the wood: Provided, further, That if consumer products for sale are too small or the nature of which makes it impracical to place a price tag thereon price list placed at the nearest point where the products are displayed indicaing the retail price of the same may suice.
“PM is the key.” = PROHIBITED
Consumer Rights o Right to basic needs o Right to safety o Right to informaion o Right to choose o Right to representaion o Right to redress o Right to consumer educaion o Right to Healthy environment
Other Laws Protecing Consumer Rights o Toy and Game Safety Labelling Act of 2013 (RA 10620) o Cheaper Medicines Act (RA 9502) o Air Passenger Bill of Rights o Pre-Need Code (RA 9829) o Ani-Lemon Law (RA 10642)
Ani-Lemon Law → Lemon Law Philippines or RA 10642 (An Act Strengthening Consumer Protecion in the Purchase of Brand New
Motor Vehicles), in order to protect buyers from lemon cars and assure its replacement from the dealership it originated from
“Lemon Car” → All brand-new vehicle → Purchased from an authorized dealer in the Philippines → Gross factory defects and have unresolved problems and could not be repaired
Salient Points of the Lemon Law → Problem in car : bring it to the dealer right away → Complaint : recorded – dealer will give at least 4 atempts (in a 12 mos period) to repair unil lemon law claim → Fixing ime : dealer – support the client an alternaive vehicle or daily means of transportaion
Sample Cases (Consumer Protecion Act) 1. DOH : Banned potassium bromate as ingredient for breads → Bromate – reports concerning safety 2. BFAD warned about the use of poisonous food colors in making bagoong and other products 3. Adulteraion of hotdogs and similar products → Use of illers (ex. Flour) to add bulk 4. Adulteraion of rice → High grade mixed with lower grade 5. Sale of poultry products injected with water : heavier 6. Rose Bowl Canned Foods from Malaysia : suspended by customs → BFAD : decomposed; strong ofensive odor; with foreign mater 7. 30M worth of mislabelled whiskey from a local liquor irm : Johnny Walker Whiskey 8. Royal Tri-Orange : Foreign Mater SOURCE: Novis Veteris. (2020, September 3). PART 1 THE CONSUMER PROTECTION ACT [Video ile]. Retrieved October 1, 2020, from htps:youtube/watch?v=6Z2I7nBsB2g&t=8s Novis Veteris. (2020, September 3). PART 2 THE CONSUMER PROTECTION ACT [Video ile]. Retrieved October 1, 2020, from htps:youtube/watch?v=WEbK4CWebw4&t=3st
Consumer Protection ACT Notes
Course: Laws on Business Organizations (LAW 3A)
University: Saint Louis University (Philippines)
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