Declaration of Policy.
Article 108
ART. 108. Declaration of Policy. - The State shall protect the consumer from misleading advertisements and fraudulent sales promotion practices.
RA 7394 (Consumer Act of the Philippines) CHAPTER VI
Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails.・Read the official text ↗
Implementing Agency.
Article 109
ART. 109. 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 Department of Health. FALSE, DECEPTIVE AND MISLEADING ADVERTISEMENT
False, Deceptive or Misleading Advertisement.
Article 110
ART. 110. False, Deceptive or Misleading Advertisement. - It shall be unlawful for any person to disseminate or to cause the dissemination of any false, deceptive or misleading advertisement by Philippine mail or in commerce by print, radio, television, outdoor advertisement or other medium for the purpose of inducing or which is likely to induce directly or indirectly the purchase of consumer products or services. An advertisement shall be false, deceptive or misleading if it is not in conformity with the provisions of this Act or if it is misleading in a material respect. In determining whether any advertisement is false, deceptive or misleading, there shall be taken into account, among other things, not only representations made or any combination thereof, but also the extent to which the advertisement fails to reveal material facts in the light of such representations, or materials with respect to consequences which may result from the use or application of consumer products or services to which the advertisement relates under the conditions prescribed in said advertisement, or under such conditions as are customary or usual.
Price Comparisons.
Article 111
ART. 111. Price Comparisons. - Comparative price advertising by sellers of consumer products or services shall conform to the following conditions: Where the comparison relates to a former price of the seller, the item compared shall either have been sold at that price within ninety (90) days immediately preceding the date of the advertisement, or it shall have been offered for sale for at least four (4) weeks during such ninety-day period. If the comparison does not relate to an item sold or offered for sale during the ninety-day period, the date, time or seasonal period of such sale or offer shall be disclosed in the advertisement. Where the comparison relates to a seller's future price, the future price shall take effect on the date disclosed in the advertisement or within ninety (90) days after the price comparison is stated in the advertisement. The stated future price shall be maintained by the seller for a period of at least four (4) weeks after its effective date: Provided, That compliance thereof may be dispensed with in case of circumstances beyond the seller's control. Where the comparison relates to a competitor's price, the competitor's price shall relate to the consumer products or services advertised or sold in the ninety-day period and shall be representative of the prices similar consumer products or services are sold or advertised in the locality where the price comparison was made.
Special Advertising Requirements for Food, Drug, Cosmetic, Device, or Hazardous Substance.
Article 112
ART. 112. Special Advertising Requirements for Food, Drug, Cosmetic, Device, or Hazardous Substance. - No claim in the advertisement may be made which is not contained in the label or approved by the concerned department. No person shall advertise any food, drug, cosmetic, device, or hazardous substance in a manner that is false, misleading or deceptive or is likely to create an erroneous impression regarding its character, value, quantity, composition, merit, or safety. Where a standard has been prescribed for a food, drug cosmetic, or device, no person shall advertise any article or substance in such a manner that it is likely to be mistaken for such product, unless the article complies with the prescribed standard or regulation. No person shall, in the advertisement of any food, drug, cosmetic, device, or hazardous substance, make use of any reference to any laboratory report of analysis required to be furnished to the concerned department, unless such laboratory report is duly approved by such department. Any businessman who is doubtful as to whether his advertisement relative to food, drug, cosmetic, device, or hazardous substance will violate or does not conform with this Act or the concerned department's pertinent rules and regulations may apply to the same for consideration and opinion on such matter before such advertisement is disseminated to the public. In this case, the concerned department shall give its opinion and notify the applicant of its action within thirty (30) days from the date of application; otherwise the application shall be deemed approved. No person shall advertise any food, drug, cosmetic, device, or hazardous substance unless such product is duly registered and approved by the concerned department for use in any advertisement.
Credit Advertising.
Article 113
ART. 113. Credit Advertising. - No advertisement to aid, promote, or assist, directly or indirectly, any extension of consumer credit may: state that a specific periodic consumer credit amount or installment amount can be arranged, unless the creditor usually and customarily arranges credit payment or installments for that period and in that amount; and state that a specified down payment is required in any extension of consumer credit, unless the creditor usually or customarily arranges down payment in that amount.
Advertising of Open-end Credit Plan.
Article 114
ART. 114. Advertising of Open-end Credit Plan. - In case of an open-end credit plan, the rate of interest and other material features of the plan shall be disclosed in the advertisement.
Special Claims.
Article 115
ART. 115. Special Claims. - Any advertisement which makes special claims shall: substantiate such claims, and properly use research results, scientific terms, statistics or quotations. PROMOTION OF SALES OF CONSUMER PRODUCTS AND SERVICES
Permit to Conduct Promotion.
Article 116
ART. 116. Permit to Conduct Promotion. - No person shall conduct any sales campaigns, including beauty contest, national in character, sponsored and promoted by manufacturing enterprises without first securing a permit from the concerned department at least thirty (30) calendar days prior to the commencement thereof. Unless an objection or denial is received within fifteen (15) days from filing of the application, the same shall be deemed approved and the promotion campaign or activity may be conducted: Provided, That any sales promotion campaign using medical prescriptions or any part thereof or attachment thereto for raffles or a promise of reward shall not be allowed, nor a permit be issued thereof.
Suspension of Publication or Dissemination of Information.
Article 117
ART. 117. Suspension of Publication or Dissemination of Information. - The concerned department may, after due notice and hearing, suspend the publication and dissemination of any information accompanying a sales promotion campaign, if it finds the campaign to be in violation of the provisions of this chapter or its implementing rules and regulations.
Conduct of Sales Promotion.
Article 118
ART. 118. Conduct of Sales Promotion. - A sales promotion which is intended for broad consumer participation and utilizes mass media shall indicate the duration, commencement and termination of the promotion, the deadline for submission of entries and the governing criteria or procedure to be followed therein.
Packaging of Products Under Promotion.
Article 119
ART. 119. Packaging of Products Under Promotion. - The packaging of the products covered by the sales promotion shall not be tampered, neither shall any change in the product's package be affected without the authority of the sponsoring agency or the owner or manufacturer of the product.
Change in Starting and Termination Dates of Promotion.
Article 120
ART. 120. Change in Starting and Termination Dates of Promotion. - The concerned department shall be advised of any delay of starting dates or termination dates and details of any change in the conduct of a sales promotion. Any change in the termination dates shall be published in a newspaper of general circulation before the expiration of the original schedule or the termination date, whichever comes first.
Determination of Winners.
Article 121
ART. 121. Determination of Winners. - The winners in any sales promotion shall be determined at a definite time and place and shall be verified by a representative of the concerned department and the sponsor. Immediately after the winners are selected or determined, a list with their addresses and corresponding prizes shall be submitted to the concerned department. All winners shall be announced or published in the same manner that the sales promotion was announced or published: Provided, That publication in a newspaper of general circulation shall be done in a legible manner at least once, if the sales promotion is national in scope: Provided, further, That such announcement and publication shall be done not later than two (2) weeks after the determination of winners. In all cases where the amount of the price is Five hundred pesos (P500.00) or more, the winners shall also be notified in writing by registered mail or any communication wherein proof of notice or service can be verified.
Injunctive Relief.
Article 122
ART. 122. Injunctive Relief. - Whenever the concerned department has the reason to believe (1) that any person, partnership or corporation is engaged in or is about to engage in the dissemination or the causing of dissemination of any advertisement in violation of Articles 110 to 115, and (2) that the enjoining thereof would be to the interest of the public, the concerned department shall direct the filing of a complaint in the court of competent jurisdiction, to enjoin the dissemination or the causing of the dissemination of such advertisement. Upon proper showing, a temporary injunction or restraining order shall be granted without bond. Any such complaint shall be filed in the locality in which the person, partnership or corporation resides or transacts business. Any person who may suffer loss, damage or injury due to a false, misleading or deceptive advertisement as defined in Article 4 may file a complaint with injunction in his own name with any court of competent jurisdiction to recover damages, cost of suit and reasonable attorney's fees.
Penalties.
Article 123
ART. 123. Penalties. - any person, association, partnership or corporation who shall violate any of the provisions of Articles 110 to 115 shall, upon conviction, be subject to a 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 one (1) month but not more than (6) months or both upon the discretion of the court. Any violation of the provisions of Articles 116 to 121 shall upon conviction, subject the offenders to a fine of not less than Two hundred pesos (P200.00) but not more than Six hundred pesos (P600.00) or an imprisonment of not less than one (1) month but not more than six (6) months or both upon the discretion of the court. If the violation was committed by a juridical person, the manager, representative, director, agent or employee of said juridical person responsible for the act shall be deported after service of sentence and payment of the fine without need for further deportation proceedings.
Exemption from Penalties.
Article 124
ART. 124. Exemption from Penalties. - No publisher, radio broadcast, television licensee or medium for the dissemination of advertising shall be liable, under this chapter, by reason of dissemination by him of any false advertisement unless he refuses, on the request of appropriate authorities, to furnish the name and post office address of the manufacturer, packer, distributor seller or advertising agency. This exemption shall not apply however, to the manufacturer, packer, distributor or seller of the consumer product or service and the advertising agency responsible for the false and misleading advertising. CHAPTER VIIREGULATION OF REPAIR AND SERVICE FIRMS
Declaration of Policy.
Article 125
ART. 125. Declaration of Policy. - The State shall cause the accreditation of repair and service firms or establishments and their technical personnel in order to protect the interest of the consumers availing of their services.
Implementing Agency.
Article 126
ART. 126. Implementing Agency. - The Department of Trade and Industry, hereby referred to as the department, shall enforce the provisions of this chapter.
Minimum Requirements for Accreditation.
Article 127
ART. 127. Minimum Requirements for Accreditation. - The following shall be the minimum requirements for accreditation of repair and service firms: the duly registered business name, firm name or style of the firm; date of issue and effectivity of the certificate of accreditation; number and skills of technical personnel; and required license for the repair or servicing of any consumer product as required by special laws.
Accreditation of Repair and Service Firm.
Article 128
ART. 128. Accreditation of Repair and Service Firm. - No person shall operate a repair and service firm or act as technical personnel therein without first being accredited by the department.
Certification of Accreditation.
Article 129
ART. 129. Certification of Accreditation. - Upon compliance with the requirements for accreditation, the department shall issue the corresponding certificate of accreditation. A separate certificate shall be required for each branch of an enterprise located in areas outside of the main office. However, with respect to repair and service centers of factory authorized representatives or franchised dealers, such centers may display a certified true copy of the certificate of accreditation of the parent company.
Suspension, Revocation or Cancellation of Certification of Accreditation.
Article 130
ART. 130. Suspension, Revocation or Cancellation of Certification of Accreditation. - Any certificate of accreditation may be suspended, revoked or canceled by the department, for cause, after due notice and hearing. TITLE IVCONSUMER CREDIT TRANSACTION
Declaration of Policy.
Article 131
ART. 131. Declaration of Policy. - The State shall simplify, clarify and modernize the laws governing credit transactions and encourage the development of fair and economically sound consumer credit practices. To protect the consumer from lack of awareness of the true cost of credit to the user, the State shall assure the full disclosure of the true cost of credit.
Determination of Finance Charges.
Article 132
ART. 132. Determination of Finance Charges. - Except as otherwise provided, the amount of the finance charges in connection with any consumer credit transaction shall be determined as the sum of all charges, payable directly or indirectly by the person to whom the credit is extended and imposed directly or indirectly by the creditor as an accident to the extension of credit, including any of the following type of charges which are applicable: interest or time price differential and any amount payable under point or other system of additional charges; collection fees which include finder's fees or similar charges; credit investigation fees; notarial fee, if any; premium or other charges for any guarantee or insurance protecting the creditor against the obligor's default or other credit loss. The implementing agency shall determine what items shall be exempted from the computation of the finance charges.
Determination of Simple Annual Rate.
Article 133
ART. 133. Determination of Simple Annual Rate. - The simple annual rate applicable to any extension of consumer credit shall be determined in accordance with the rules and regulations promulgated by the implementing agency.
Delinquency Charges.
Article 134
ART. 134. Delinquency Charges. - With respect to a consumer credit transaction other than one pursuant to an open-end credit plan, the parties may agree to a delinquency charge on any installment not paid in full on or before the tenth day after its scheduled or deferred due date.
Deferral Charges.
Article 135
ART. 135. Deferral Charges. - The parties in a consumer credit transaction may at any time agree in writing to a deferral of all or part of one or more unpaid installments and the creditor may make and collect a charge which shall not exceed the rate previously disclosed pursuant to the provisions on disclosure. A deferral charge may be collected at the time it is assessed.
Finance Charge on Refinancing.
Article 136
ART. 136. Finance Charge on Refinancing. - The parties may agree on a finance charge in an open-end credit plan based on the amount financed resulting from the refinancing or consolidation at a rate not exceeding that permitted by the rules promulgated by the implementing agency.
Right to Prepay.
Article 137
ART. 137. Right to Prepay. - The person to whom credit is extended may prepay in full or in part, at any time without penalty, the unpaid balance of any consumer credit transaction.
Rebate on Prepayment.
Article 138
ART. 138. Rebate on Prepayment. - Upon prepayment in full of the unpaid balance of a precomputed consumer credit transaction, refinancing or consolidation, an amount not less than the unearned portion of the finance charge calculated according to this article shall be rebated to the person to whom credit is extended. The unearned portion of the precomputed finance charge on consumer transactions repayable in substantially equal successive installments shall be equal to at least that portion of finance charge which the sums of the installment balances of the obligation scheduled to be outstanding after the installment date nearest the date of prepayment bears to the sum of all installment balances originally scheduled to be outstanding under the obligation. For the purpose of determining the installment date nearest the date of prepayment when payments are monthly, any payment made on or before the fifteenth day following an installment due date shall be deemed to have been made as of the installment due date, and if prepayment occurs after the fifteenth day, it shall be deemed to have been made on the succeeding installment due date. This method of calculating rebates may be referred to as the "Rule of 78" or "sum of the digits" method. The implementing agency may promulgate and adopt rules and regulations with respect to other precomputed consumer credit transactions.
General Requirement on Credit Cost Disclosure.
Article 139
ART. 139. General Requirement on Credit Cost Disclosure. - Each creditor shall disclose, in accordance with the regulations of the implementing agency, to each person to whom consumer credit is extended, the disclosures required by this Act. If there is more than one obligor, a creditor need not furnish a statement of information required under this Act to more than one of them.
Credit Sale, Required Disclosures.
Article 140
ART. 140. Credit Sale, Required Disclosures. - Any creditor extending a consumer credit sale other than one pursuant to an open-end credit plan shall disclose in a statement to the extent applicable, the following information: the cash price or delivered price of the property or service to be acquired; the amounts, if any, to be credited as downpayment and/or trade in; the total amount to be financed or the difference between the amounts set forth under paragraphs (1) and (2); the charges, individually itemized, which are paid or to be paid by such person in connection with the transaction but which are not incident to the extension of credit; the finance charge expressed in terms of pesos and centavos; the percentage that the finance charge bears to the total amount to be financed expressed as a simple annual rate on the outstanding balance of the obligation; the effective interest rate; the number, amount and due dates or periods of payments scheduled to repay the indebtedness; and the default, delinquency or similar charges payable in the event of late payments.
Required Disclosure on Open-end Credit Plan.
Article 141
ART. 141. Required Disclosure on Open-end Credit Plan. - Before opening any account under an open-end consumer credit plan, the creditor shall disclose, to the extent applicable, the following information: the conditions under which a finance charge may be imposed, including the time period, if any, within which any credit extended may be repaid without incurring a finance charge; the method of determining the balance upon which a finance charge may be imposed; the method of determining the amount of the finance charges, including any minimum or fixed amount imposed as a finance charge; where one or more periodic rates may be used to compute a finance charge, each such rate, the range of balances to which it is applicable, and the corresponding simple annual rate; the conditions under which the creditor may impose a security lien and a description of the goods to which such lien may attach. The implementing agency shall prescribe regulations consistent with commonly accepted accounting standards to carry out the requirements of this article.
Required Disclosures on Consumer Loans not Under Open-End Credit Plan.
Article 142
ART. 142. Required Disclosures on Consumer Loans not Under Open-End Credit Plan. - Any creditor extending a consumer loan or in a transaction which is neither a consumer credit sale nor under an open-end consumer credit plan shall disclose, to the extent applicable, the following information: the amount of credit of which the debtor will have the actual use, or which is or will be paid to him or for his account or to another person on his behalf; all charges, individually itemized, which are included in the amount of credit extended but which are not part of the finance charge; the total amount to be financed or the sum of the amounts referred to in paragraphs (a) and (b); the finance charge expressed in terms of pesos and centavos; the effective interest rate; the percentage that the finance charge bears to the total amount to be financed expressed as a simple annual rate on the outstanding unpaid balance of the obligation; the default, delinquency or similar charges payable in the event of late payments; a description of any security interest held or to be held or to be retained or acquired by the creditor in connection with the extension of credit and a clear identification of the property to which the security interest relates.
Form and Timing of Disclosure.
Article 143
ART. 143. Form and Timing of Disclosure. - All disclosures required under this Act shall be made clearly and conspicuously in writing before the transaction is consummated.
Periodic Statement of Charges.
Article 144
ART. 144. Periodic Statement of Charges. - The periodic statement transmitted by the creditor in connection with any extension of consumer credit other than under an open-end consumer credit plan, shall set forth the following information: the simple annual rate; the effective interest rate; the date by which, or the period (if any) within which payment must be made in order to avoid additional finance charges; method of determining the balance upon which the finance charge may be imposed.
Exempted Transaction.
Article 145
ART. 145. Exempted Transaction. - The foregoing requirements on consumer credit transactions shall not apply to the following credit transactions: those involving extension of credits for business or commercial purposes, or to the government and governmental agencies and instrumentalities, juridical entities or to organizations; those in which the debtor is the one specifying the definite set of credit terms such as bank deposits, insurance contracts, sale of bonds or analogous transactions.
Sale of Consumer Products On Installment Payment.
Article 146
ART. 146. Sale of Consumer Products On Installment Payment. - In a consumer credit sale other than one pursuant to an open-end credit plan, the obligation of the consumer to whom credit is being extended shall be evidenced by a single instrument which shall include, in addition to the disclosures required by this act, the signature of the seller and the person to whom credit is extended, the date it was signed, a description of the property sold and a description of any property transferred as a trade-in. The instrument evidencing the credit shall contain a clear and conspicuous typewritten notice to the person to whom credit is being extended that: he should not sign the instrument if it contains any blank space; he is entitled to a reasonable return of the precomputed finance charge if the balance is prepaid; and he is entitled to an exact, true copy of the agreement. In cases where the instrument will be sold at a discount to a bank, financing company or other lender, the said transferee shall be subject to all claims and defenses which the debtor could assert against the seller of consumer products obtained hereto or with the proceeds thereof.
Penalties.
Article 147
ART. 147. Penalties. - Any creditor who in connection with any credit transaction fails to disclose to any person any information in violation of this chapter or the implementing rules and regulations issued thereunder shall be liable to such person in the amount of One thousand pesos (P1,000.00) or in amount equal to twice the finance charge required by such creditor in connection with such transaction, whichever is greater, except that such liability shall not exceed Three thousand pesos (P3,000.00) for any credit transaction and actual damages with the non-disclosure of the required information. Action to recover such penalty may be brought by such person within one (1) year from the date of the occurrence of the violation in any court of competent jurisdiction. TITLE VTHE NATIONAL CONSUMER AFFAIRS COUNCILCHAPTER IESTABLISHMENT AND COMPOSITION
National Consumer Affairs Council.
Article 148
ART. 148. National Consumer Affairs Council. - To improve the management, coordination and effectiveness of consumer programs, a National Consumer Affairs Council is hereby created, hereinafter referred to as the "Council".
Composition.
Article 149
ART. 149. Composition. - The Council shall be composed of representatives from the following government agencies and non-government agencies: Department of Trade and Industry; Department of Education, Culture and Sports; Department of Health; Department of Agriculture; four (4) representatives from consumer organizations of nationwide base to be chosen by the President from among the nominees submitted by the various consumer groups in the Philippines; two (2) representatives from business/industry sector to be chosen by the President from among the nominees submitted by the various business organizations.
Chairman; Functions.
Article 150
ART. 150. Chairman; Functions. - The Council shall be headed and presided by a chairman who shall be elected by the members from among themselves. He shall establish, with the concurrence of the Council, the policies, procedures and standards to govern the implementation and interpretation of the functions and duties of the council.
Per Diems of members.
Article 151
ART. 151. Per Diems of members. - The members of the council shall be entitled to an allowance of Five hundred pesos (P500.00) per meeting actually attended but not more than Two thousand pesos (P2,000.00) a month.
The Secretariat.
Article 152
ART. 152. The Secretariat. - The council shall appoint an executive director who shall assist the chairman and act as secretary of the council. The Department of Trade and Industry shall provide the secretariat which shall assist the council in the effective performance of its functions. CHAPTER IIPOWERS AND FUNCTIONS
Powers and Functions.
Article 153
ART. 153. Powers and Functions. - The council shall have the following powers and functions: to rationalize and coordinate the functions of the agencies charged with consumer programs and enforcement of consumer related laws to the end that an effective, coordinated and integrated system of consumer protection, research and implementation and enforcement of such laws shall be achieved; to recommend new policies and legislation or amendments to existing ones; to monitor and evaluate implementation of consumer programs and projects and to take appropriate steps to ensure that concerned agencies take appropriate steps to comply with the established priorities, standards and guidelines; to seek the assistance of government instrumentalities in the form of augmenting the need for personnel, facilities and other resources; to undertake a continuing education and information campaign to provide the consumer with, among others; facts about consumer products and services; consumer rights and the mechanism for redress available to him information on new concepts and developments on consumer protection; general knowledge and awareness necessary for a critical and better judgment on consumption; and such other matters of importance to the consumer's general well-being.
Consumer Education in Schools.
Article 154
ART. 154. Consumer Education in Schools. - The Department of Education, Culture and Sports, with the cooperation and advice of the Council, shall develop and adopt a consumer education program which shall be integrated into existing curricula of all public and private schools from primary to secondary levels. A continuing consumer education program for out-of-school youth and adults shall likewise be developed and undertaken. The consumer education program shall include information regarding: The consumer as a responsible member of society and his responsibility to develop: critical awareness which is the responsibility to be alert and questioning about the use of and the price and quality of goods he uses; assertiveness which is the responsibility to assert himself and act so he is assured of a fair deal, aware that for as long as he remains to be a passive consumer he will continue to be exploited; social concern which is the responsibility to be aware of the impact of his consumption on other citizens, especially the disadvantaged; and environmental awareness which is the responsibility to understand the environmental consequences of his consumption, recognizing his individual and social responsibility to conserve natural resources for future generations; consumer rights; and practical problems the consumer faces in daily life.
Concerned Departments, Powers and Duties Under Existing Laws.
Article 155
ART. 155. Concerned Departments, Powers and Duties Under Existing Laws. - The concerned departments shall continue to exercise the powers and duties provided to them under existing laws, unless repealed or modified accordingly.
Consumer Participation.
Article 156
ART. 156. Consumer Participation. - The departments shall establish procedures for meaningful participation by consumers or consumer organizations in the development and review of department rules, policies, and programs. Such procedures shall include provisions for a forum, where consumers can express their concerns and recommendations to decision makers. The departments shall exert efforts to inform consumers of pending proceedings where their participation is important.
Advisory Services.
Article 157
ART. 157. Advisory Services. - The departments shall render advisory services upon request. Technical and legal assistance shall be made available to consumers and their organizations and to the general public.
Consumer Program Reforms.
Article 158
ART. 158. Consumer Program Reforms. - Each concerned Department shall formulate and develop a consumer program consonant with the objectives of its charter or the applicable laws which program shall embody the standards set forth in Sections 156 and 157 of this Act. Copies of these program shall be furnished the council. The executive director shall, among his other functions, monitor and coordinate the implementation by the concerned agencies of their respective consumer programs. After the close of the fiscal year, the council shall submit to Congress and the Office of the President, a full report on the progress of the implementation of consumer programs. CHAPTER IIICONSUMER COMPLAINTS
Consumer Complaints.
Article 159
ART. 159. Consumer Complaints. - The concerned department may commence an investigation upon petition or upon letter-complaint from any consumer: Provided, That, upon a finding by the department of a prima facie violation of any provisions of this Act or any rule or regulation promulgated under its authority, it may motu proprio or upon verified complaint commence formal administrative action against any person who appears responsible therefor. The department shall establish procedures for systematically logging in, investigating and responding, to consumer complaints into the development of consumer policies, rules and regulations, assuring as far as practicable simple and easy access on the part of the consumer to seek redress for his grievances.
Consumer Arbitration Officers.
Article 160
ART. 160. Consumer Arbitration Officers. - The concerned department secretaries shall appoint as many qualified consumer arbitration officers as may be necessary for the effective and efficient protection of consumer rights: Provided, however, That there shall be not more than ten (10) consumer arbitration officers per province, including the National Capital Region.
Consumer Arbitration Officers; Qualifications.
Article 161
ART. 161. Consumer Arbitration Officers; Qualifications. - The consumer arbitration officers must be a college graduate with at least three (3) years experience in the field of consumer protection and shall be of good moral character.
Arbitration Officers; Jurisdiction.
Article 162
ART. 162. Arbitration Officers; Jurisdiction. - The consumer arbitration officers shall have original and exclusive jurisdiction to mediate, conciliate, hear and adjudicate, all consumer complaints: Provided, however, That this does not preclude the parties from pursuing the proper judicial action.
Investigation Procedure.
Article 163
ART. 163. Investigation Procedure. - The consumer arbitration officer shall conduct hearings on any complaint received by him or referred by the Council. Parties to the case shall be entitled to notice of the hearing, and shall be informed of the date, time and place of the same. A copy of the complaint shall be attached to the notice. The department shall afford all interested parties the opportunity to submit a statement of facts, arguments, offers of settlement or proposals of adjustments. The consumer arbitration officer shall first and foremost ensure that the contending, parties come to a settlement of the case. In the event that a settlement has not been effected, the mediation officer may now proceed to formally investigate, hear and decide the case. The consumer arbitration officer may summon witnesses, administer oaths and affirmations, issue subpoena and subpoena duces tecum, rule upon offers of proof and receive relevant evidence, take or cause deposition to be taken whenever the ends of justice would be served thereby, regulate the course of the hearing, rule on any procedural request or similar matter and decide the complaint. In hearing the complaint, the mediation officer shall use every and all reasonable means to ascertain the facts in each complaint speedily and objectively without regard to strict rules of evidence prevailing in suits before courts. The complaint shall be decided within fifteen (15) days from the time the investigation was terminated.
Sanctions.
Article 164
ART. 164. Sanctions. - After investigation, any of the following administrative penalties may be imposed even if not prayed for in the complaint: the issuance of a cease and desist order: Provided, however, That such order shall specify the acts that respondent shall cease and desist from and shall require him to submit a report of compliance therewith within a reasonable time; the acceptance of a voluntary assurance of compliance or discontinuance from the respondent which may include any or all of the following, terms and conditions: an assurance to comply with the provisions of this Act and its implementing rules and regulations; an assurance to refrain from engaging in unlawful acts and practices or unfair or unethical trade practices subject of the formal investigation; an assurance to comply with the terms and conditions specified in the consumer transaction subject of the complaint; an assurance to recall, replace, repair, or refund the money value of defective products distributed in commerce; an assurance to reimburse the complaint out of any money or property in connection with the complaint, including, expenses in making, or pursuing the complaint, if any, and to file a bond to guarantee compliance therewith. restitution or rescission of the contract without damages; condemnation and seizure of the consumer product found to be hazardous to health and safety unless the respondent files a bond to answer for any damage or injury that may arise from the continued use of the product; the imposition of administrative fines in such amount as deemed reasonable by the secretary, which shall in no case be less that Five hundred pesos (P500.00) nor more than Three hundred thousand pesos (P300.000.00) depending on the gravity of the offense, and an additional fine of not more than One thousand pesos (P1,000.00) for each day of continuing violation.
Appeal from Orders.
Article 165
ART. 165. Appeal from Orders. - Any order, not interlocutory, of the consumer arbitration officer, becomes final and executory unless appealed to the department secretary concerned within fifteen (15) days from receipt of such order. An appeal may be entertained only on any of the following grounds: grave abuse of discretion; the order is in excess of the jurisdiction or authority of the consumer arbitration officer; the order is not supported by the evidence or there is serious error in the findings of facts.
Decision on Appeal.
Article 166
ART. 166. Decision on Appeal. - The secretary shall decide the appeal within thirty (30) days from receipt thereof. The decision becomes final after fifteen (15) days from receipt thereof unless a petition for certiorari is filed with the proper court. TITLE VITRANSITORY AND FINAL PROVISIONS
Relation of the Act to Other Rights.
Article 167
ART. 167. Relation of the Act to Other Rights. - The provisions of this Act shall apply notwithstanding any agreement to the contrary but shall not restrict, limit or derogate from any other rights or remedies of a consumer under any other law.
Application of Laws Enacted Prior to the Act.
Article 168
ART. 168. Application of Laws Enacted Prior to the Act. - All actions or claims accruing prior to the effectivity of this Act shall be determined in accordance with the acts, laws, decrees and regulations in force at the time of the accrual.
Prescription.
Article 169
ART. 169. Prescription. - All actions or claims accruing under the provisions of this Act and the rules and regulations issued pursuant thereto shall prescribe within two (2) years from the time the consumer transaction was consummated or the deceptive or unfair and unconscionable act or practice was committed and in case of hidden defects, from discovery thereof.
Repealing Clause.
Article 170
ART. 170. Repealing Clause. - All laws, executive orders, rules and regulations or parts thereof which are inconsistent with this Act are hereby repealed or amended accordingly.
Appropriations.
Article 171
ART. 171. Appropriations. - For the initial operating expenses of the National Consumer Affairs Council, the sum of Two million pesos (P2,000,000.00) is hereby appropriated out of funds of the National Treasury not otherwise appropriated. Thereafter, such sums as may be necessary to carry out its purpose shall be included in the General Appropriations Act.
Separability Clause.
Article 172
ART. 172. Separability Clause. - If for any reason any article or provision of this Act or any portion thereof or the application of such article, provision or portion thereof to any person, group or circumstance is declared invalid or unconstitutional, the remainder of this Act shall not be affected by such decision.
Effectivity.
Article 173
ART. 173. Effectivity. - This Act shall take effect thirty (30) days from the date of its publication in the Official Gazette. Approved, (Sgd.) RAMON V. MITRA (Sgd.) NEPTALI A. GONZALES Speaker of the House of Representatives President of the Senate This bill which is a consolidation of Senate Bill No. 1820 and House Bill No. 33757, was finally passed by the Senate and the House of Representatives on February 6, 1992. (Sgd.) CAMILO L. SABIO (Sgd.) ANACLETO D.BADOY, JR. Secretary General House of Representatives Secretary of the Senate Approved: April 13, 1992 (Sgd.) CORAZON C. AQUINO President of the Philippines
Back to RA 7394 (Consumer Act of the Philippines) — full text
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