Implementing Agency.
Article 66
ART. 66. Implementing Agency. - The Department of Trade and Industry, shall strictly enforce the provision of this Chapter and its implementing rules and regulations.
RA 7394 (Consumer Act of the Philippines) CHAPTER III
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Applicable Law on Warranties.
Article 67
ART. 67. Applicable Law on Warranties. - The provisions of the Civil Code on conditions and warranties shall govern all contracts of sale with conditions and warranties.
Additional Provisions on Warranties.
Article 68
ART. 68. Additional Provisions on Warranties. - In addition to the Civil Code provisions on sale with warranties, the following provisions shall govern the sale of consumer products with warranty: Terms of express warranty. - Any seller or manufacturer who gives an express warranty shall: set forth the terms of warranty in clear and readily understandable language and clearly identify himself as the warrantor; identify the party to whom the warranty is extended; state the products or parts covered; state what the warrantor will do in the event of a defect, malfunction or failure to conform to the written warranty and at whose expense; state what the consumer must do to avail of the rights which accrue to the warranty; and 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. 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. Sales Report. - All sales made by distributors of products covered by this Article shall be reported to the manufacturer, producer, or importer of the product sold within thirty (30) days from date of purchase, unless otherwise agreed upon. The report shall contain, among others, the date of purchase, model of the product bought, its serial number, name and address of the buyer. The report made in accordance with this provision shall be equivalent to a warranty registration with the manufacturer, producer, or importer. Such registration is sufficient to hold the manufacturer, producer, or importer liable, in appropriate cases, under its warranty. Failure to make or send report. - Failure of the distributor to make the report or send them the form required by the manufacturer, producer, or importer shall relieve the latter of its liability under the warranty: Provided, however, That the distributor who failed to comply with its obligation to send the sales report shall be personally liable under the warranty. For this purpose, the manufacturer shall be obligated to make good the warranty at the expense of the distributor. Retail. - The retailer shall be subsidiarily liable under the warranty in case of failure of both the manufacturer and distributor to honor the warranty. In such case, the retailer shall shoulder the expenses and costs necessary to honor the warranty. Nothing therein shall prevent the retailer from proceeding against the distributor or manufacturer. Enforcement of warranty or guarantee. - The warranty rights can be enforced by presentment of a claim. To this end, the purchaser needs only to present to the immediate seller either the warranty card or the official receipt along with the product to be serviced or returned to the immediate seller. No other documentary requirement shall be demanded from the purchaser. If the immediate seller is the manufacturer's factory or showroom, the warranty shall immediately be honored. If the product was purchased from a distributor, the distributor shall likewise immediately honor the warranty. In the case of a retailer other than the distributor, the former shall take responsibility without cost to the buyer of presenting the warranty claim to the distributor in the consumer's behalf. Record of purchases. - Distributors and retailers covered by this article shall keep a record of all purchases covered by a warranty or guarantee for such period of time corresponding to the lifetime of the products' respective warranties or guarantees. Contrary stipulations-null and void. - All covenants, stipulations or agreements contrary to the provisions of this article shall be without legal effect. Designation of warranties. - A written warranty shall clearly and conspicuously designate such warranty as "Full warranty" if the written warranty meets the minimum requirements set forth in paragraph (d); or "Limited warranty" if the written warranty does not meet such minimum requirements. Minimum standards for warranties. - For the warrantor of a consumer product to meet the minimum standards for warranty, he shall: 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; 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 reasonable number of attempts to remedy the defect or malfunction, the product continues to have the defect or to malfunction. The warrantor will not be required to perform the above duties if he can show that the defect, malfunction or failure to conform to a written warranty was caused by damage due to unreasonable use thereof. Duration of warranty. - The seller and the consumer may stipulate the period within which the express warranty shall be enforceable. If the implied warranty on merchantability accompanies an express warranty, both will be of equal duration. Any other implied warranty shall endure not less than sixty (60) days nor more than one (1) year following the sale of new consumer products. Breach of warranties. - 1) In case of breach of express warranty, the consumer may elect to have the goods repaired or its purchase price refunded by the warrantor. In case the repair of the product in whole or in part is elected, the warranty work must be made to conform to the express warranty within thirty (30) days by either the warrantor or his representative. The thirty-day period, however, may be extended by conditions which are beyond the control of the warrantor or his representative. In case the refund of the purchase price is elected, the amount directly attributable to the use of the consumer prior to the discovery of the non-conformity shall be deducted. 2) In case of breach of implied warranty, the consumer may retain in the goods and recover damages, or reject the goods, cancel and contract and recover from the seller so much of the purchase price as has been paid, including damages.
Warranties in Supply of Services.
Article 69
ART. 69. Warranties in Supply of Services. - In every contract for the supply of services to a consumer made by a seller in the course of a business, there is an implied warranty that the services 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. Where a seller supplies consumer services in the course of a business and the 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 purpose or are of such a nature 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 judgment.
Professional Services.
Article 70
ART. 70. Professional Services. - The provisions of this Act on warranty shall not apply to professional services of certified public accountants, architects, engineers, lawyers, veterinarians, optometrists, pharmacists, nurses, nutritionists, dietitians, physical therapists, salesmen, medical and dental practitioners and other professionals engaged in their respective professional endeavors.
Guaranty of Service Firms.
Article 71
ART. 71. Guaranty of Service Firms. - Service firms shall guarantee workmanship and replacement of spare parts for a period not less than ninety (90) days which shall be indicated in the pertinent invoices.
Prohibited Acts.
Article 72
ART. 72. Prohibited Acts. - The following acts are prohibited: 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; unreasonable delay by the local manufacturer or any person obligated under the warranty or guarantee in honoring the warranty; removal by any person of a product's warranty card for the purpose of evading said warranty obligation; any false representation in an advertisement as to the existence of a warranty or guarantee.
Penalties.
Article 73
ART. 73. Penalties. - Any person who shall violate the provisions of Article 67 shall be subject to fine of not less than Five hundred pesos (P500.00) but not more than Five thousand pesos (P5,000.00) or an imprisonment of not less than three (3) months but not more than two (2) years or both upon the discretion of the court. Any person, natural or juridical, committing any of the illegal acts provided for in Chapter III, except with respect to Article 67, shall be liable for a fine of not less than One thousand pesos (P1,000.00) but not more than Fifty thousand pesos (P50,000.00) or imprisonment for a period of at least one (1) year but not more than five (5) years, or both, at the discretion of the court. The imposition of any of the penalties herein provided is without prejudice to any liability incurred under the warranty or guarantee. CHAPTER IVLABELING AND FAIR PACKAGING
Declaration of Policy.
Article 74
ART. 74. Declaration of Policy. - 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.
Implementing Agency.
Article 75
ART. 75. Implementing Agency. - The Department of Trade and Industry shall enforce the provisions of this chapter and its implementing rules and regulations: Provided, That with respect to food, drugs, cosmetics, devices, and hazardous substances, it shall be enforced by the concerned department.
Prohibited Acts on Labeling and Packaging.
Article 76
ART. 76. Prohibited Acts on Labeling and Packaging. - It shall be unlawful for any person, either as principal or agent, engaged in the 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 of this chapter. The prohibition in this chapter shall not apply to persons engaged in the business of wholesale or retail distributors of consumer products except to the extent that such persons: are engaged in the packaging or labeling of such which such products; prescribe or specify by any means the manner in which such products are packaged or labeled; or having knowledge, refuse to disclose the source of the mislabeled or mispackaged products.
Minimum Labeling Requirements for Consumer Products.
Article 77
ART. 77. Minimum Labeling Requirements for Consumer Products. - All consumer products domestically sold whether manufactured locally or imported shall indicate the following in their respective labels of packaging: its correct and registered trade name or brand name; its duly registered trademark; its duly registered business name; the address of the manufacturer, importer, repacker of the consumer product in the Philippines; ts general make or active ingredients; the net quantity of contents, in terms of weight, measure or numerical count rounded of to at least the nearest tenths in the metric system; country of manufacture, if imported; and if a consumer product is manufactured, refilled 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 regulations they will promulgate under authority of this Act: whether it is flammable or inflammable; directions for use, if necessary; warning of toxicity; wattage, voltage or amperes; or process of manufacture used, if necessary. Any word, statement or other information required by or under authority of the preceeding 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 conditions 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.
Philippine Product Standard Mark.
Article 78
ART. 78. Philippine Product Standard Mark. - The label may contain the Philippine Product Standard Mark if it is certified to have passed the consumer product standard prescribed by the concerned department.
Authority of the Concerned Department to Provide for Additional Labeling and Packaging Requirements.
Article 79
ART. 79. Authority of the Concerned Department to Provide for Additional Labeling and Packaging Requirements. - Whenever the concerned department determines that regulations containing requirements other than those prescribed in Article 77 hereof are necessary to prevent the deception of the consumer or to facilitate value comparisons as to any consumer product, it may issue such rules and regulations to: establish and define standards for characterization of the size of a package enclosing any consumer product which may be used to supplement the label statement of net quantity, of contents of packages containing such products but this clause shall not be construed as authorizing any limitation on the size, shape, weight, dimensions, or number of packages which may be used to enclose any product; regulate the placement upon any package containing any product or upon any label affixed to such product of any printed matters stating or representing by implication that such product is offered for retail at a price lower than the ordinary and customary retail price or that a price advantage is accorded to purchases thereof by reason of the size of the package or the quantity of its contents; prevent the nonfunctional slack-fill of packages containing consumer products. For purposes of paragraph (c) of this article, a package shall be deemed to be nonfunctionally slack-filled if it is filled to substantially less than its capacity for reasons other than (1) protection of the contents of such package, (2) the requirement of machines used for enclosing the contents in such package, or (3) inherent characteristics of package materials or construction being used.
Special Packaging of Consumer Products for the Protection of Children.
Article 80
ART. 80. Special Packaging of Consumer Products for the Protection of Children. - The concerned department may establish standards for the special packaging of any consumer product if it finds that: the 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; and the special packaging to be required by such standard is technically feasible, practicable and appropriate for such product. In establishing a standard under this article, the concerned department shall consider: the reasonableness of such a standard; available scientific, medical and engineering data concerning special packaging and concerning accidental ingestions, illnesses and injuries caused by consumer product; the manufacturing practices of industries affected by this article; and the nature and use of consumer products.
Price Tag Requirement.
Article 81
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, further, 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.
Manner of Placing Price Tags.
Article 82
ART. 82. Manner of Placing Price Tags. - Price tags, labels or markings must be written clearly, indicating the price of the consumer product per unit in pesos and centavos.
Regulations for Price Tag Placement.
Article 83
ART. 83. Regulations for Price Tag Placement. - 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.
Additional Labeling Requirements for Food.
Article 84
ART. 84. Additional Labeling Requirements for Food. - The following additional labeling requirements shall be imposed by the concerned department for food: expiry or expiration date, where applicable; whether the consumer product is semi-processed, fully processed, ready-to-cook, ready-to-eat, prepared food or just plain mixture; nutritive value, if any; whether the ingredients used are natural or synthetic, as the case may be; such other labeling requirements as the concerned department may deem necessary and reasonable.
Mislabeled Food.
Article 85
ART. 85. Mislabeled Food. - A food shall also be deemed mislabeled: if its labeling or advertising is false or misleading in anyway; if it is offered for sale under the name of another food; if it is an imitation of another food, unless its label bears in type of uniform size and prominence, the word "imitation" and, immediately thereafter, the name of the food imitated; its containers is so made, formed, or filled as to be misleading; if in package form unless it bears a label conforming to the requirements of this Act: Provided, That reasonable variation on the requirements of labeling shall be permitted and exemptions as to small packages shall be established by the regulations prescribed by the concerned department of health; if any word, statement or other information required by or under authority of this Act to appear on the principal display panel of the label or labeling is not prominently placed thereon with such conspicuousness as compared with other words, statements, designs or devices in the labeling and in such terms as to render it likely to be read and understood by the ordinary individual under customary conditions of purchase and use; if it purports to be or is represented as a food for which a definition or standard of identity has been prescribed unless: it conforms to such definition and standard; and its labels bears the name of the food specified in the definition or standards, and insofar as may be required by such regulations, the common names of optional ingredients other than spices, flavoring and coloring, present in such food; if it purports to be or is represented as: a food for which a standard of quality has been prescribed by regulations as provided in this Act and its quality fall below such standard, unless its label bears in such manner and form as such regulations specify, a statement that it falls below such standard; or a food for which a standard or standards or fill of container have been prescribed by regulations as provided by this Act and it falls below the standard of fill of container applicable thereto, unless its label bears, in such manner and form as such regulations specify, a statement that it fall below such standard; if it is not subject to the provisions of paragraph (g) of this article unless its label bears; the common or usual name of the food, if there be any; and in case it is manufactured or processed from two or more ingredients, the common or usual name of such ingredient; except the spices, flavorings and colorings other than those sold as such, may be designated as spices, flavorings and colorings without naming each: Provided, That to the extent that compliance with the requirement of clause (2) of this paragraph is impracticable or results in deception or unfair competition, exemptions shall be established by regulations promulgated by the concerned Department of Health; if it purports to be or is represented for special dietary uses, unless its label bears such information concerning its vitamin or mineral or other dietary properties as the concerned department determines to be, or by regulations prescribed as necessary in order fully to inform purchasers as its value for such uses; if it bears or contains any artificial flavoring, artificial coloring, or chemical preservative, unless it bears labeling, stating that fact: Provided, That to the extent that compliance with the requirements of this paragraph is impracticable, exemptions shall be established by regulations promulgated by the concerned department. The provisions of this paragraph or paragraphs (g) and (i) with respect to the artificial coloring shall not apply in the case of butter, cheese or ice cream.
Labeling of Drugs.
Article 86
ART. 86. Labeling of Drugs. - The Generics Act shall apply in the labeling of drugs.
Additional Labeling Requirements for Cosmetics.
Article 87
ART. 87. Additional Labeling Requirements for Cosmetics. - The following additional requirements may be required for cosmetics: expiry or expiration date; whether or not it may be an irritant; precautions or contra-indications; and such other labeling requirements as the concerned department may deem necessary and reasonable.
Special Labeling Requirements for Cosmetics.
Article 88
ART. 88. Special Labeling Requirements for Cosmetics. - A cosmetic shall be deemed mislabeled: if its labeling or advertising is false or misleading in any way; if in package form unless it bears a label conforming to the requirements of labeling provided for in this Act or under existing regulations: Provided, That reasonable variations shall be permitted, and exemptions as to small packages shall be established by regulations prescribed by the concerned department; if any word, statement or other information required by or under authority of this Act to appear on the label or labeling is not prominently placed thereon with such conspicuousness, as compared with other words, statements, designs or devices in the labeling, and in such terms as to render it likely to be read and understood by the ordinary individual under customary conditions of purchase and use; if its container is so made, formed or filled as to be misleading; or if its label does not state the common or usual name of its ingredients.
Mislabeled Drugs and Devices.
Article 89
ART. 89. Mislabeled Drugs and Devices. - A drug or device shall be deemed to be mislabeled: if its labeling is false or misleading in any way; if it is in package form unless it bears a label conforming to the requirements of this Act or the regulations promulgated therefor: Provided, That reasonable variations shall be permitted and exemptions as to small packages shall be established by regulations prescribed by the concerned department. if any word, statement or other information required by or under authority of this Act to appear on the principal display panel of the label or labeling is not prominently placed thereon with such conspicuousness as compared with other words, statements, designs or devices in the labeling and in such terms as to render it likely to be read and understood by the ordinary individual under customary conditions of purchase and use; if it is for use by man and contains any quantity of the narcotic or hypnotic substance alpha-eucaine, barbituric acid, beta-eucaine, bromal, cannabis, carbromal, chloral, coca, cocaine, codeine, heroin, marijuana, morphine, opium, paraldehyde, peyote or sulfonmethane, or any chemical derivative of such substance, which derivative has been designated by the concerned department after investigation, and by regulations, as habit forming; unless its label bears the name and quantity or proportion of such substance or derivative and in juxtaposition therewith the statement "Warning - May be habit forming;� its labeling does not bear: adequate directions for use; and such adequate warning against use in those pathological conditions or by children where its use may be dangerous to health, or against unsafe dosage or methods or duration of administration or application, in such manner and form, as are necessary for the protection of users: Provided, That where any requirement of clause (1) of this paragraph, as applied to any drug or device, is not necessary for the protection of the public health, the concerned department may promulgate regulations exempting such drug or device from such requirement; if it purports to be a drug the name of which is recognized in an official compendium, unless it is packaged and labeled as prescribed therein: Provided, That the method of packing may be modified with the consent of the concerned department; if it has been found by the concerned department to be a drug liable to deterioration, unless it is packaged in such form and manner, and its label bears a statement of such precautions, as the concerned department, shall by regulations, require as necessary for the protection of the public health; if it is a drug and its container is so made, formed or filled as to be misleading; or if it is an imitation of another drug; or if it is offered for sale under the name of another drug; if it is dangerous to health when used in the dosage, or with the frequency of duration prescribed, recommended or suggested in the labeling thereof; if it is, purports to be or is represented as a drug composed wholly or partly of insulin or of any kind of penicillin, streptomycin, chlortetracycline, chloramphenicol, bacitracin, or any other antibiotic drug, or any derivative thereof, unless: it is from a batch with respect to which a certificate of release has been issued pursuant to regulations of the concerned department; and such certificate of release is in effect with respect to such drug: Provided, That this paragraph shall not apply to any drug or class of drugs exempted by regulations promulgated under Authority of this Act.
Regulation-making Exemptions.
Article 90
ART. 90. Regulation-making Exemptions. - The concerned department may promulgate regulations exempting from any labeling requirements of this Act, food, cosmetics, drugs or devices which are, in accordance with the practice of trade, to be processed, labeled or repacked in substantial quantities at establishments other than those where originally processed, labeled or packed on condition that such food, cosmetics, drugs or devices are not adulterated or mislabeled under the provisions of this Act and other applicable laws upon approval from such processing, labeling and repacking establishments.
Mislabeled Hazardous Substances.
Article 91
ART. 91. Mislabeled Hazardous Substances. - Hazardous substances shall be deemed mislabeled when: a. having been intended or packaged in a form suitable for use in households, especially for children, the packaging or labeling of which is in violation of the special packaging regulations issued by the concerned department; b. such substance fails to bear a label: 1. which states conspicuously: (i) the name and the place of business of the manufacturer, packer, distributor or seller; (ii) the common or usual name or the chemical name, if there be no common or usual name, of the hazardous substance or of each component which contributes substantially to the harmfulness of the substance, unless the concerned department by regulation permits or requires the use of the recognized generic name; (iii) the signal word "danger" on substances which are extremely flammable, corrosive or highly toxic; (iv) the signal word "warning" or "caution" with a bright red or orange color with a black symbol on all other hazardous substances; (v) a clear statement as to the possible injury it may cause if used improperly; (vi) precautionary measures describing the action to be followed or avoided; (vii) instructions when necessary or appropriate for first-aid treatment; (viii) the word "poison" for any hazardous substance which is defined as highly toxic; (ix) instructions for handling and storage of packages which require special care in handling and storage; and (x) the statement "keep out of the reach of children", or its practical equivalent, if the article is not intended for use by children and is not a banned hazardous substance, with adequate directions for the protection of children from the hazard involved. The aforementioned signal words, affirmative statements, description of precautionary measures, necessary instructions or other words or statements may be in the English language or its equivalent in Filipino; and 2. on which any statement required under clause 1) of this paragraph is located prominently in bright red and orange color with a black symbol in contrast typography, layout or color with the other printed matters on the label.
Exemptions.
Article 92
ART. 92. Exemptions. - If the concerned department finds that for good or sufficient reasons, full compliance with the labeling requirements otherwise applicable under this Act is impracticable or is not necessary for the adequate protection of public health and safety, it shall promulgate regulations exempting such substances from these requirements to the extent it deems consistent with the objective of adequately safeguarding public health and safety, and any hazardous substance which does not bear a label in accordance with such regulations shall be deemed mislabeled hazardous substance.
Grounds for Seizure and Condemnation of Mislabeled Hazardous Substances.
Article 93
ART. 93. Grounds for Seizure and Condemnation of Mislabeled Hazardous Substances. - Any mislabeled hazardous substance when introduced into commerce or while held for sale shall be liable to be proceeded against and condemned upon order of the concerned department in accordance with existing procedure for seizure and condemnation of articles in commerce: Provided, That this article shall not apply to a hazardous substance intended for export to any foreign country if: it is in a package labeled in accordance with the specifications of the foreign purchaser; it is labeled in accordance with the laws of the foreign country; it is labeled on the outside of the shipping package to show that it is intended for export; and it is so exported, any hazardous substance condemned under this article shall after entry of order of condemnation be disposed of by destruction or sale as the concerned department may direct, and the proceeds thereof, if sold, less the legal cost and charges, shall be paid into the treasury of the Philippines; but such hazardous substance shall not be sold under any order which is contrary to the provisions of this Act: Provided, That, after entry of the order and upon the payment of the costs of such proceedings and the execution of a good and sufficient bond conditioned that such hazardous substance shall not be sold or disposed of contrary to the provisions of this Act, under the supervision of an officer or employee duly designated by the concerned department. The expenses for such supervision shall be paid by the person obtaining release of the hazardous substance under bond. all expenses in connection with the destruction provided for in paragraphs (a) and (b) of this article and all expenses in connection with the storage and labor with respect to such hazardous substance shall be paid by the owner or consignee, and default in such payment shall constitute a lien against any importation by such owner or consignee.
Labeling Requirements of Cigarettes.
Article 94
ART. 94. Labeling Requirements of Cigarettes. - 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." 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 color with other printed matter on the package. Any advertisement of cigarette shall contain the name warning as indicated in the label.
Penalties.
Article 95
ART. 95. Penalties. - Any person who shall violate the provisions of Title III, Chapter IV of this Act, or its implementing rules and regulations, except Articles 81 to 83 of the same chapter, shall be subject to a fine of not less than Five hundred pesos (P500.00) but not more than Twenty thousand pesos (P20,000.00) or imprisonment of not less than three (3) months but not more than two (2) years or both, at the discretion of the court: Provided, That, if the consumer product is one which is not a food, cosmetic, drug, device or hazardous substance, the penalty shall be a fine of not less than Two hundred pesos (P200.00) but not more than Five thousand pesos (P5,000.00) or imprisonment of not less than one (1) month but not more than one (1) year or both, at the discretion of the court. Any person who violates the provisions of Article 81 to 83 for the first time shall be subject to a fine of not less than Two hundred pesos (P200.00) but not more than Five thousand pesos (P5,000.00) or by imprisonment of not less than one (1) month but not more than six (6) months or both, at the discretion of the court. A second conviction under this paragraph shall also carry with it the penalty of revocation of business permit and license. CHAPTER VLIABILITY FOR PRODUCT AND SERVICE
lmplementing Agency.
Article 96
ART. 96. lmplementing Agency. - The Department of Trade and Industry shall enforce the provisions of this chapter and its implementing rules and regulations.
Liability for the Defective Products.
Article 97
ART. 97. Liability for the Defective Products. - Any Filipino or foreign manufacturer, producer, and any importer, shall be liable for redress, independently of fault, for damages caused to consumers by defects resulting from design, manufacture, construction, assembly and erection, formulas and handling and making up, presentation or packing of their products, as well as for the insufficient or inadequate information on the use and hazards thereof. A product is defective when it does not offer the safety rightfully expected of it, taking relevant circumstances into consideration, including but not limited to: presentation of product; use and hazards reasonably expected of it; the time it was put into circulation. A product is not considered defective because another better quality product has been placed in the market. The manufacturer, builder, producer or importer shall not be held liable when it evidences: that it did not place the product on the market; that although it did place the product on the market such product has no defect; that the consumer or a third party is solely at fault.
Liability of Tradesman or Seller.
Article 98
ART. 98. Liability of Tradesman or Seller. - The tradesman/seller is likewise liable, pursuant to the preceding article when: it is not possible to identify the manufacturer, builder, producer or importer; the product is supplied, without clear identification of the manufacturer, producer, builder or importer; he does not adequately preserve perishable goods. The party making payment to the damaged party may exercise the right to recover a part of the whole of the payment made against the other responsible parties, in accordance with their part or responsibility in the cause of the damage effected.
Liability for Defective Services.
Article 99
ART. 99. Liability for Defective Services. - The service supplier is liable for redress, independently of fault, for damages caused to consumers by defects relating to the rendering of the services, as well as for insufficient or inadequate information on the fruition and hazards thereof. The service is defective when it does not provide the safety the consumer may rightfully expect of it, taking the relevant circumstances into consideration, including but not limited to: the manner in which it is provided; the result of hazards which may reasonably be expected of it; the time when it was provided. A service is not considered defective because of the use or introduction of new techniques. The supplier of the services shall not be held liable when it is proven: that there is no defect in the service rendered; that the consumer or third party is solely at fault.
Liability for Product and Service Imperfection.
Article 100
ART. 100. Liability for Product and Service Imperfection. - The suppliers of durable or nondurable consumer products are jointly liable for imperfections in quality that render the products unfit or inadequate for consumption for which they are designed or decrease their value, and for those resulting from inconsistency with the information provided on the container, packaging, labels or publicity messages/advertisement, with due regard to the variations resulting from their nature, the consumer being able to demand replacement to the imperfect parts. If the imperfection is not corrected within thirty (30) days, the consumer may alternatively demand at his option: the replacement of the product by another of the same kind, in a perfect state of use; the immediate reimbursement of the amount paid, with monetary updating, without prejudice to any losses and damages; a proportionate price reduction. The parties may agree to reduce or increase the term specified in the immediately preceding paragraph; but such shall not be less than seven (7) nor more than one hundred and eighty (180) days. The consumer may make immediate use of the alternatives under the second paragraph of this article when by virtue of the extent of the imperfection, the replacement of the imperfect parts may jeopardize the product quality or characteristics, thus decreasing its value. If the consumer opts for the alternative under sub-paragraph (a) of the second paragraph of this article, and replacement of the product is not possible, it may be replaced by another of a different kind, mark or model: Provided, That any difference in price may result thereof shall be supplemented or reimbursed by the party which caused the damage, without prejudice to the provisions of the second, third and fourth paragraphs of this article.
Liability for Product Quantity Imperfection.
Article 101
ART. 101. Liability for Product Quantity Imperfection. - Suppliers are jointly liable for imperfections in the quantity of the product when, in due regard for variations inherent thereto, their net content is less than that indicated on the container, packaging, labeling or advertisement, the consumer having powers to demand, alternatively, at his own option: the proportionate price; the supplementing of weight or measure differential; the replacement of the product by another of the same kind, mark or model, without said imperfections; the immediate reimbursement of the amount paid, with monetary updating without prejudice to losses and damages if any. The provisions of the fifth paragraph of Article 99 shall apply to this Article. The immediate supplier shall be liable if the instrument used weighing or measuring is not gauged in accordance with official standards.
Liability for Service Quality Imperfection.
Article 102
ART. 102. Liability for Service Quality Imperfection. - The service supplier is liable for any quality imperfections that render the services improper for consumption or decrease their value, and for those resulting from inconsistency with the information contained in the offer or advertisement, the consumer being entitled to demand alternative at his option: the performance of the services, without any additional cost and when applicable; the immediate reimbursement of the amount paid, with monetary updating without prejudice to losses and damages, if any; a proportionate price reduction. Reperformance of services may be entrusted to duly qualified third parties, at the supplier's risk and cost. Improper services are those which prove to be inadequate for purposes reasonably expected of them and those that fail to meet the provisions of this Act regulating service rendering.
Repair Service Obligation.
Article 103
ART. 103. Repair Service Obligation. - When services are provided for the repair of any product, the supplier shall be considered implicitly bound to use adequate, new, original replacement parts, or those that maintain the manufacturer's technical specifications unless, otherwise authorized, as regards to the latter by the consumer.
Ignorance of Quality lmperfection.
Article 104
ART. 104. Ignorance of Quality lmperfection. - The supplier's ignorance of the quality imperfections due to inadequacy of the products and services does not exempt him from any liability.
Legal Guarantee of Adequacy.
Article 105
ART. 105. Legal Guarantee of Adequacy. - The legal guarantee of product or service adequacy does not require an express instrument or contractual exoneration of the supplier being forbidden.
Prohibition in Contractual Stipulation.
Article 106
ART. 106. Prohibition in Contractual Stipulation. - The stipulation in a contract of a clause preventing, exonerating or reducing the obligation to indemnify for damages effected, as provided for in this and in the preceding articles, is hereby prohibited, if there is more than one person responsible for the cause of the damage, they shall be jointly liable for the redress established in the pertinent provisions of this Act. However, if the damaged is caused by a component or part incorporated in the product or service, its manufacturer, builder or importer and the person who incorporated the component or part are jointly liable.
Penalties.
Article 107
ART. 107. Penalties. - Any person who shall violate any provision of this chapter or its implementing rules and regulations with respect to any consumer product which is not food, cosmetic, or hazardous substance shall upon conviction, be subject to a fine of not less than Five thousand pesos (P5,000.00) and by imprisonment of not more that one (1) year or both upon the discretion of the court. In case of juridical persons, the penalty shall be imposed upon its president, manager or head. If the offender is an alien, he shall, after payment of fine and service of sentence, be deported without further deportation proceedings.
Back to RA 7394 (Consumer Act of the Philippines) — full text
Provisions on this page are reproduced verbatim from official open data. See the attribution line.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).