FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
! 
SENATE 
S. No. 
Introduced by Senator JUAN MIGUEL F. ZUBlRl 
EXPLANATORY NOTE 
Section 13, Article Xi1 of the 1987 Constitution mandates that "the State 
shall pursue a trade policy that serves the general welfare and utilizes all forms 
and arrangements of exchange on the basis of equality and reciprocity." 
In pursuance of such mandate, Congress has enacted RA 7394 or the 
Consumer Act of the Philippines in 1992. The Law was enacted to protect the 
interests of consumers through the promotion of public health and safety 
measures, and the prevention of deceptive and unfair acts of unscrupulous 
businessmen. It consolidated all the relevant laws on consumer protection at 
that time with new sections on consumer credit transactions and the creation of a 
National Consumers Affairs Council (NCAC). 
The NCAC brought together the DTI, DA, DOH, DepEd, NGOs, consumer 
advocates and business leaders to develop a coherent program for consumer 
welfare and protection. 
It was tasked to: 1) coordinate existing consumer 
protection policies and programs, 2) monitor and evaluate the implementation of 
these programs, 3) recommend new policies and propose amendments to 
existing legislation, and 4) undertake research on consumer education and 
information campaign. 
However, by being an attached agency of the DTI, the performance of the 
NCAC has been very much restricted. It has become dependent on the DTI in 
terms of budgetary allocation for its activities and program implementation. 
This bill seeks to remedy the situation by making it an independent body 
under the Office of the President. Likewise, the composition of the Council is 
being modified to include representatives from the DlLG and the Philippine 
Information Agency because of their important role in consumer protection and 
information dissemination. 
In view of the foregoing, approval of this bill is earnestly requested. 


FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
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SENATE 
S.No. 2195 
Introduced by Senator JUAN MIGUEL F. ZUBlRl 
AN ACT 
TO FURTHER STRENGTHEN CONSUMER PROTECTION, AMENDING FOR THIS 
PURPOSE CERTAIN PROViSlONS OF REPUBLIC ACT NO. 7394, OTHERWISE 
KNOWN AS THE “CONSUMER ACT OF THE PHILIPPINES”, AND FOR OTHER 
PURPOSES 
Be if 
enacted by the Senate and the House of Represenfafives of the Philippines in 
Congress assembled: 
SECTION 1. - Article 6 of Republic Act No. 7394, otherwise known as the 
Consumer Act of the Philippines, is hereby amended to read as follows: 
ARTICLE 6. Implementing Agencies. - The provisions of this Article and its 
implementing rules and regulations shall be enforced by: 
a) the Department of Health with respect to food, drugs, cosmetics, 
b) the Department of Agriculture with respect to products related to 
c) the Department of Trade and industry with respect to other consumer 
devices and substances; 
agriculture [, and]; 
products not specified above, AND 
D) “THE BANGKO SENTRAL NG PILIPINAS, WITH RESPECT TO 
CONSUMER CREDIT TRANSACTIONS.” 
SEC. 2. - Article 8 of the same law is hereby amended to read as follows: 
“ARTICLE 8. Publication of Consumer Product Standards. - The 
concerned departments shall, upon promulgation of the above standards, publish 
or cause the publication of the same in two (2) newspapers of general circulation 
at least once a week for a period of not less than one (1) month: PROVIDED, 
HOWEVER, THAT CONSUMER PRODUCTS STANDARDS THAT ARE 
VOLUMINOUS 
AND 
WHICH WILL 
ENTAIL 
UNREASONABLY 
HUGE 
PUBLICATION EXPENSES NEED NOT BE PUBLISHED IN ITS FULL TEXT 
BUT MAY BE IN THE FORM OF A NOTICE IN SUCH NEWSPAPERS, GIVING 
THE ABSTRACT OF THE SUBJECT THEREOF WITH A STATEMENT AS TO 


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HOW AND WHERE COPIES OF THE FLJLL TEXT THEREOF MAY BE 
OBTAINED. It may likewise conduct an information campaign through other 
means deemed effective to ensure Ihe proper guidance of consumers, business, 
industries and other sectors concerned.” 
SEC. 3. - Article 148 of the same law is hereby amended to read as follows: 
“ARTICLE 148. National Consumer Affairs Co~incil. - To improve the 
management, coordination and effectiveness of consumer programs, a National 
Consumer Affairs Council is hereby created, hereinafter referred to as the 
“Council” WHICH SHALL BE DIRECTLY UNDER THE OFFICE OF THE 
PRESIDENT.” 
SEC. 4. - Article 149 of the same law is hereby amended to read as follows: 
“ARTICLE 149. Composition. 
I The Council shall be composed of 
representatives from the following government agencies and non-government 
agencies: 
a) Department of Trade and Industry; 
b) Department of Education, Culture and Sports; 
c) Department of Health: 
d) Department of Agriculture; 
e) DEPARTMENT OF INTERIOR AND LOCAL GOVERNMENT, 
f) PHILIPPINE INFORMATION AGENCY 
[e] (G) 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; 
[fl (H) two (2) representatives from businesslindustry sector to be chosen 
by the President from among the nominees submitted by the various business 
organizations: 
“PROVIDED, THAT FOR AGENCIES DIRECTLY IMPLEMENTING THIS 
ACT, THEIR REPRESENTATIVES TO THE COUNCIL SHALL HAVE A RANK 
NOT LOWER THAN ASSISTANT SECRETARY SHALL SIT IN THE COUNCIL.” 
SEC. 5. - Article 152 of the same law is hereby amended to read as follows: 
“ARTICLE 152. The [Secretariat] EXECUTlVE DIRECTOR. - 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.] THE EXECUTIVE DIRECTOR SHALL RE ASSISTED BY SUCH 


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NUMBER OF PERSONNEL AS HE MAY DEEM NECESSARY FOR THE 
EFFECTIVE PERFORMANCE OF HIS FUNCTIONS.” 
SEC. 6. - Article ‘I 53 of the same law is hereby amended to read as follows: 
“ARTICLE 153. Powers and Functions. I The Council shall have the 
following powers and functions: 
xxx 
e) to undertake a continuing education and information campaign to 
provide the consumer with, among others; 
1) facts about consumer products and services; 
2) consumer rights and the mechanism for redness available to 
him; 
3) information on new concepts and developments on consumer 
protection; and 
4) general knowledge and awareness necessary for a critical and 
better judgement on consumption; 
5) such other matters of importance to the consumer’s general well- 
being [.] 
F) TO IMPROVE FOR SUBMISSION TO THE DEPARTMENT OF 
BUDGET AND MANAGEMENT THE ANNUAL BUDGET OF THE COUNCIL; 
G) TO PROMULGATE SUCH RULES AND REGULATIONS AS MAY BE 
ESSENTIAL AND NECESSARY TO ATTAIN THE OBJECTIVES AND 
PURPOSE OF THIS ACT; 
H) TO CREATE ADDITIONAL POSITIONS, BOTH IN THE CENTRAL 
AND REGIONAL OFFICES, INCLUDING BUT NOT LIMITED TO HIRING 
CONSULTANTS, AS MAY BE NECESSARY TO CARRY OUT EFFECTIVELY 
AND EFFICIENTLY ITS FUNCTIONS AND DUTIES; 
I) TO RECEIVE AND UTILIZE, FOR FURTHERANCE OF THE 
COUNCIL’S, FUNDS, GIFTS, DONATIONS AND BEQUESTS FROM SOURCES 
OTHER THAN THE COUNCIL’S BUDGET APPROPRIATIONS. SUCH GIFTS, 
DONATIONS OR BEQlJESTS SHALL BE EXEMPT FROM ALL TAXES, 
DUTIES, DUES OR FEES WHATSOEVER, IMPOSED OR HEREAFTER TO BE 
IMPOSED 
BY 
THE 
NATIONAL 
GOVERNMENT, 
ITS 
AGENCIES, 
INSTRUMENTALITIES OR POLITICAL SUBDIVISIONS, AND THE SAME 
SHALL BE FULLY DEDUCTIBLE FROM THE GROSS INCOME OF THE 
DONOR OR GRANT FOR INCOME TAX PURPOSES; 
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J) TO PROVIDE FREE LEGAL REPRESENTATION, SUBJECT TO 
GUIDELINES THE COUNCIL MAY APPROVE, TO CONSUMERS WITH 
MERITORIOUS COMPLAINTS; AND 
K) GENERALL.Y TO UNDERTAKE SUCH OTHER FUNCTIONS AS MAY 
BE NECESSARY TO CARRY OUT THE OBJECTiVES AND PURPOSES OF 
THIS ACT. 
SEC. 7. Separability Clause. - In ?ne event that any provision of this Act is 
declared unconstitutional, the validity of the remainder shall not be affected thereby 
SEC. 8. Repealing Clause. - All laws, executive orders, letters of instructions, 
rules and regulations, or provisions thereof which are inconsistent with the provisions of 
this Act are hereby repealed, amended or modified accordingly. 
SEC. 9. Effectivity Ciause. -This Act shall take effect fifteen (15) days after ?he 
completion of its publication in at least two (2) newspapers of general circulation. 
Approved, 
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