FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHIILIPPINES 
Second Regular Session 
SENATE 
S.B.No. 2975 
) 
) 
) 
INTRODUCED BY HONORABLE RALPH G. RECTO 
EXPLANATORY NOTE 
'11 
SEP 26 P4 :20 
The President of the Philippines has identified this measure as among the priority bills 
during the presentation in the Legislative Executive Development Advisory Council (LEDAC). 
The bill amends RA 7394 otherwise known as the "Consumer Act of the Philippines". 
Among the new provisions is the eight (8) Consumer Bill of Rights namely, the right to: 
basic needs, choose products, representation, redress, consumer education, safety, healthy 
environment, and sanitation. These rights have been endorsed by the United Nations through the 
United Nations Guidelines for Consumer Protection. Corollary to the consumer rights is the 
provision of five (5) consumer responsibilities to wit: critical awareness, action, social concern, 
environmental awareness, and solidarity. 
The bill also provides a new Article mandating the English or Filipino translation of 
product labels written in foreign characters/languages. This will allow better understanding of 
the contents, features and uses of imported products for consumer protection against unsafe 
products. 
A new provision permanently banning suppliers engaged in the importation of 
defective goods has also been included. 
The coverage of the provisions on advertising and promotion has been expanded to 
include those for consumer products, services and credit facilities which include sponsorships of 
programs, concerts, games, shows and similar activities. 
A new Article also protects consumers from aggressive marketing promotions that 
significantly impair the average consumer's freedom of choice with regard to the purchase of a 
product or service. 
The chapter on Advertising and Sales Promotion is further strengthened with the addition 
of advertising general principles and a specific guideline in the presentation of advertisements. 
Hence, among others, the bill provides instructions on how advertisements should treat specific 
claims on ingredients, results of researches and surveys, scientific claims, testimonials and 
endorsements, and leadership claims. 
The bill increases the penalties for violations of any provision of the Consumers Act of 
the Philippines. It sets a uniform penalty to be imposed on any violations and lengthened the 
period of prescription for claims relative to deceptive or unfair and unconscionable practice from 
two (2) to three (3) years. 
Further amendments to RA 7394 include the definition of terms in accordance with new 
technologies and trade practices. Notable of these new definitions is the one for "Mass Media" 
which now includes the internet, mobile phones, and similar electronic devices. 
1 


The chapter on Consumer Product Quality and Safety has also been amended by adding 
the grant of authority for the automatic closing down of any establishments caught inflagrante 
delicto selling, distributing, manufacturing, producing, or importing substandard and hazardous 
products. 
The above cited amendments are intended to enhance consumer protection and to 
promote high ethical standards in trade practices. Hence, the passage of this bill is earnestly 
sought. 
""" '1 
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2 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
SENATE 
S.B.No. 2975 
) 
) 
) 
Introdnced by Sen. Ralph G. Recto 
AN ACT 
'11 
SEP 26 P 4 :20 
GRANTING BROADER PROTECTION TO CONSUMERS AMENDING FOR THE PURPOSE 
REPUBLIC ACT NO. 7394, OTHERWISE KNOWN AS "THE CONSUMER ACT OF THE 
PHILIPPINES" 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
1 
SECTION 1. Short Title. - This Act shall be known as "The Enhanced Consumer Act of 2011". 
2 
3 
SEC. 2. Republic Act No. 7394, otherwise known as the "Consumer Act of the Philippines" is 
4 
hereby amended by inserting a new Article 3 under Title I General Provisions to read as follows: 
5 
6 
"ART. 3. THE EIGHT (8) CONSUMER BILL OF RIGHTS - THE GOVERNMENT, IN 
7 
MAINTAINING 
AND 
STRENGTHENING 
THE 
PROMOTION 
OF 
CONSUMER 
8 
INTEREST AND WELFARE IN HIS RELATION TO THE BUSINESS AND INDUSTRY 
9 
PRACTICE AS WELL AS THE PRODUCTION AND DISTRIBUTION OF CONSUMER 
10 
PRODUCTS, SHALL ADOPT MEASURES AND 
FORMULATE POLICIES TAKING 
11 
INTO ACCOUNT THE EIGHT (8) BASIC CONSUMER RIGHTS. THE CONSUMERS 
12 
SHALL BE ENTITLED TO: 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
A) 
RIGHT TO BASIC NEEDS -
THE GUARANTEED SURVIVAL AND, 
THUS, BE PROVIDED WITH ADEQUATE FOOD, CLOTHING, SHELTER, 
HEALTH CARE, EDUCATION AND SANITATION; 
B) 
RIGHT 
TO 
CHOOSE 
-
THE 
CHOICE 
OF 
PRODUCTS 
AT 
COMPETITIVE PRICES WITH ASSURED SATISFACTORY QUALITY IN 
ACCORDANCE WITH GOVERNMENT STANDARDS; 
C) 
RIGHT TO REPRESENTATION - THE EXPRESSION OF CONSUMER 
INTERESTS IN THE FORMULATION AND EXECUTION OF GOVERNMENT 
POLICIES; 
3 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
D) 
RIGHT TO REDRESS - CLAIM COMMENSURATE COMPENSATION 
FOR MISREPRESENTATION, SUBSTANDARD, DEFECTIVE GOODS OR 
UNSATISFACTORY SERVICES; 
E) 
RIGHT 
TO 
CONSUMER 
EDUCATION 
-
ACQUISITION 
OF 
KNOWLEDGE AND SKILLS NECESSARY TO MAKE AN INFORMED CHOICE; 
F) 
RIGHT TO SAFETY -THE PROTECTION AGAINST THE MARKETING 
OF GOODS OR PROVISION OF SERVICES THAT ARE HAZARDOUS TO 
HEALTH AND LIFE; 
G) 
RIGHT TO A HEALTHY ENVIRONMENT. - LIVE AND WORK IN AN 
ENVIRONMENT WHICH PERMITS A LIFE OF DIGNITY AND WELL-BEING 
AND WHICH IS NEITHER THREATENING NOR DANGEROUS; AND 
H) 
RIGHT TO INFORMATION - PROTECTION AGAINST DISHONEST OR 
MISLEADING ADVERTISING OR LABELING AND BE GIVEN THE PRODUCT 
FACTS AND INFORMATION NEEDED TO MAKE AN INFORMED CHOICE." 
20 
SEC. 3. Republic Act No. 7394, otherwise known as the "Consumer Act of the Philippines" is 
21 
hereby amended by inserting a new Article 4 under Title I General Provisions to read as follows: 
22 
23 
24 
"ART. 4. THE FIVE (5) CONSUMER RESPONSIBILITIES - IN CONNECTION WITH 
25 
HIS ENTITLEMENT OF THE BASIC RIGHTS STATED IN THE PRECEDING SECTION, 
26 
THE CONSUMER SHALL EXERCISE THE FOLLOWING RESPONSIBILITIES: 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 
40 
41 
42 
A) 
CRITICAL AWARENESS -
BE MORE ALERT AND QUESTIONING 
ABOUT THE USES, THE PRICE AND QUALITY OF GOODS AND SERVICES 
PURCHASED. 
B) 
CONSUMER ACTION - ASSERT AND ACT TO ENSURE THAT HIS 
RIGHTS ARE PROTECTED AND THAT HE IS NOT EXPLOITED. 
C) 
SOCIAL CONCERN -
BE MORE AWARE OF THE IMPACT OF HIS 
CONSUMPTION ON OTHER CITIZENS, ESPECIALLY DISADVANTAGED OR 
POWERLESS GROUPS, WHETHER IN THE LOCAL, 
NATIONAL, OR 
INTERNATIONAL COMMUNITY. 
D) 
ENVIRONMENTAL 
AWARENESS 
UNDERSTAND 
THE 
ENVIRONMENTAL CONSEQUENCES OF HIS CONSUMPTION. HE SHOULD 
RECOGNIZE INDIVIDUAL AND SOCIAL RESPONSIBILITY TO CONSERVE 
4 


1 
2 
3 
NATURAL RESOURCES AND PROTECT THE EARTH FOR FUTURE 
GENERATIONS. 
4 
5 
6 
7 
E) 
SOLIDARITY -
ORGANIZE CONSUMER GROUPS TO DEVELOP 
THEIR STRENGTH AND INFLUENCE TO PROMOTE AND PROTECT 
CONSUMER INTERESTS." 
8 
SEC. 4. Article 4, Title I - General Provisions of Republic Act 7394, otherwise known as the 
9 
"Consumer Act of the Philippines" is hereby amended to read as follows: 
10 
11 
12 
"Art. [4]6. Definition of Terms. - For purposes of this Act, the term: 
13 
14 
xxx 
15 
16 
n) 
"Consumer" means a natural person who is a purchaser, lessee, recipient or 
17 
prospective purchaser, lessor or recipient of consumer products, services, credit, 
18 
TECHNOLOGY, 
ADVERTISING 
OR 
PROMOTION, 
AND 
OTHER 
ITEMS 
IN 
19 
COMMERCE. 
20 
21 
xxx 
22 
23 
(q) 
"Consumer products and services" means goods, services and credits, debts or 
24 
obligations, SERVICES which are primarily for personal, family, household or agricultural 
25 
purposes, which shall include but not limited to food, drugs, cosmetics, and devices, 
26 
PRODUCT, 
MERCHANDISE, 
GOODS, 
CREDIT, 
TECHNOLOGY AND OTHER 
27 
TRANSACTIONS OR MATTERS INTENDED TO BE COVERED BY THIS ACT. 
28 
29 
xxx 
30 
31 
(u) "Cosmetics" means [(1) articles intended to be rubbed, poured, sprinkled, or sprayed 
32 
on, introduced into or otherwise applied to the human body or any part thereof for 
33 
cleansing, beautifying, promoting attractiveness, or altering the appearance, and (2) 
34 
article intended for uses as a component of any such article except that such term shall 
35 
not include soap.] ANY SUBSTANCE OR PREPARATION INTENDED TO BE APPLIED 
36 
IN CONTACT WITH THE VARIOUS EXTERNAL PARTS OF THE HUMAN BODY OR 
37 
WITH THE TEETH AND THE MUCOUS MEMBRANES OF THE ORAL CAVITY WITH A 
38 
VIEW EXCLUSIVELY OR MAINLY TO CLEANING THEM, PERFUMING THEM, 
39 
CHANGING THEIR APPEARANCE, CORRECTING BODY ODORS, OR MAINTAINING 
40 
THEM IN HEALTHY CONDITION." 
41 
42 
xxx 
5 


I 
2 
w) "Credit card" means any card, plate, coupon book or other credit SINGLE device 
3 
existing for the 
purpose of BEING 
USED 
FROM TIME TO TIME 
UPON 
4 
PRESENTATION TO obtain[ing] money, property, labor or services on credit. 
5 
xxx 
6 
7 
aj) 
"Guarantee" means an expressed or implied assurance of the REAL quality, 
8 
COST, PRICE, PROMOTION of the consumer products and services offered for sale or 
9 
length of satisfactory use, COSTS OR OTHER SIMILAR MATTERS to be expected from 
10 
SUCH CONSUMER productS or SERVICES BASED ON APPLICABLE AND ACTUAL 
II 
DOCUMENTS IN ACCORDANCE WITH THE LAW, MORALS, GOOD FAITH AND 
12 
PUBLIC POLICY." 
13 
14 
xxx 
15 
16 
at) "Mass media" refers to any means or methods used to convey advertising 
17 
messages to the public such as television, radio, THE INTERNET, MOBILE PHONES 
18 
AND SIMILAR ELECTRONIC DEVICES, magazines, cinema, billboards, posters, 
19 
streamers, hand bills, leaflets, mails and the like. 
20 
21 
xxx 
22 
23 
bm) 
"Sales Promotion" means techniques intended for broad consumer 
24 
participation which contain promises of gain such as prizes, in cash or in kind, OR AN 
25 
OPPORTUNITY TO WIN ANY PRIZES OR FREE SERVICES, OR GIFT, OR ANY 
26 
SIMILAR 
SCHEME, 
as 
reward 
for 
TRANSACTING 
FOR, 
RECEIVING, 
OR 
27 
purchas[e]ING [the purchase of] a product, security, service or winning in contest, 
28 
game, tournament and other similar competitions OR CHALLENGES which involve 
29 
determination of winner/s and which utilize mass media or other widespread media of 
30 
information such as INFORMATION AND COMMUNICATION TECHNOLOGY. It also 
31 
means techniques purely intended to increase the sales, patronage and/or goodwill of [a 
32 
product], TRANSACTION FOR, PURCHASING, OR RECEIVING OF, CONSUMER 
33 
PRODUCTS AND SERVICES. 
34 
35 
xxx 
36 
37 
bn) 
"Seller" means a person engaged in the business of selling consumer products 
38 
AND SERVICES directly to consumers. It shall include a supplier or distributor if (1) the 
39 
seller is a subsidiary or affiliate of the supplier or distributor; (2) the seller interchanges 
40 
personnel or maintains common or overlapping officers or directors with the supplier or 
41 
distributor; or (3) the supplier or distributor provides or exercises supervision, direction or 
42 
control over the selling practices of the seller. 
6 


1 
2 
xxx 
3 
4 
br) 
"Standard" means a set of conditions to be fulfilled to ensure the quality and 
5 
safety of a product AND SERVICE; 
6 
7 
xxx 
8 
9 
10 
SEC. 5. Article 6, Chapter I - Consumer Product Quality and Safety of Republic Act 7394, 
11 
otherwise known as the "Consumer Act of the Philippines" is hereby amended to read as 
12 
follows: 
13 
14 
"Art. [6] 8. Implementing Agencies. - The provisions of this Act and its implementing 
15 
rules and regulations shall be enforced by: 
16 
17 
a) 
the Department of Health with respect to PROCESSED food, drugs, cosmetics, 
18 
devices and HAZARDOUS substances; 
19 
20 
b) 
the Department of Agriculture with respect to products related to agriculture AND 
21 
FISHERIES; 
22 
23 
c) 
the Department of Trade and Industry with respect to other consumer products 
24 
not specified above; 
25 
26 
SEC. 6. Article 8, Chapter I - Consumer Product Quality and Safety of Republic Act 7394, 
27 
otherwise known as the "Consumer Act of the Philippines" is hereby amended to read as 
28 
follows: 
29 
30 
"Art. [8]10. Publication of Consumer Product Standards. -
The department 
31 
concemed shall, upon promulgation of the above standards, publish or cause the 
32 
publication of the same EITHER in a newspaper of general circulation, in the OFFICIAL 
33 
GAZETIE, OR IN THE DEPARTMENT'S OR AGENCY'S OFFICIAL WEB PORTAL. It 
34 
may likewise conduct an information campaign through other means deemed effective to 
35 
ensure the proper guidance of consumers, businesses, industries and other sectors 
36 
concemed." 
37 
38 
SEC. 7. Article 10, Chapter I - Consumer Product Quality and Safety of Republic Act 7394, 
39 
otherwise known as the "Consumer Act of the Philippines" is hereby amended to read as 
40 
follows: 
41 
7 


1 
2 
"Art. [10]12. Injurious, Dangerous and Unsafe Products. -
Whenever the 
3 
departments find, by their own initiative or by petition of a consumer, that a consumer 
4 
product is found to be injurious, unsafe or dangerous, it shall, after due notice and 
5 
hearing, make the appropriate order for its recall, prohibition or seizure from public sale 
6 
or distribution: Provided, That, in the sound discretion of the department it may declare a 
7 
consumer product to be imminently injurious, unsafe or dangerous, and order is 
8 
immediate recall, ban or seizure from public sale or distribution, in which case, the seller, 
9 
distributor, manufacturer or producer thereof shall be afforded a hearing within forty-
10 
eight 
(48) 
hours 
from 
such 
order: 
PROVIDED, 
FURTHER, 
THAT 
ANY 
11 
ESTABLISHMENT CAUGHT IN FLAGRANTE DELICTO SELLING, DISTRIBUTING, 
12 
MANUFACTURING, 
PRODUCING, 
OR 
IMPORTING 
SUBSTANDARD 
AND 
13 
HAZARDOUS PRODUCTS SHALL BE AUTOMATICALLY CLOSED AND SHUT 
14 
DOWN. 
15 
xxx 
16 
17 
SEC. 8. Article 11, Chapter I - Consumer Product Quality and Safety of Republic Act 7394, 
18 
otherwise known as "Consumer Act of the Philippines" is hereby amended to read as follows: 
19 
20 
21 
"Art. [11]13. Amendment and Revocation of Declaration of the Injurious, Unsafe or 
22 
Dangerous Character of a Consumer Product. - Any interested person may petition 
23 
the appropriate department to commence a proceeding for the issuance of an 
24 
amendment or revocation of a consumer product safety rule or an order declaring a 
25 
consumer product injurious, dangerous and unsafe. 
26 
27 
In case the department, upon petition by an interested party or its own initiative and after 
28 
due notice and hearing, determines a consumer product to be substandard or materially 
29 
defective, it shall so notify the manufacturer, distributor or seller thereof of such finding 
30 
and order such manufacturer, distributor or seller to WITHOUT DELAY: 
31 
32 
a) 
give notice to the public of the defect or failure to comply with the product safety 
33 
standards; 
34 
35 
36 
37 
38 
39 
b) 
give notice to each distributor or seller of such product; and 
c) 
WHEN POSSIBLE, GIVE NOTICE TO EVERY PERSON TO WHOM SUCH 
CONSUMER PRODUCT WAS DELIVERED OR SOLD. 
40 
The department shall also direct the manufacturer, distributor or seller of such product to 
41 
extend WITHIN REASONABLE TIME any or all of the following remedies to the injured 
42 
person: 
8 


1 
2 
xxx 
3 
4 
SEC. 9. Republic Act No. 7394, otherwise known as the "Consumer Act of the Philippines" is 
5 
hereby amended by inserting a new Article 14 under Chapter I - Consumer Product Quality and 
6 
Safety to read as follows: 
7 
8 
9 
"ART. 14. PHYSICAL SAFETY -MANUFACTURERS OR DISTRIBUTORS SHOULD 
10 
ENSURE THAT AS SOON AS THEY BECOME AWARE OF UNFORESEEN HAZARDS 
11 
AFTER PRODUCTS ARE PLACED ON THE MARKET, THEY SHOULD NOTIFY THE 
12 
GOVERNMENT AUTHORITIES CONCERNED AND, AS APPROPRIATE, INFORM 
13 
THE PUBLIC WITHOUT DELAY. THE GOVERNMENT SHOULD ALSO ESTABLISH 
14 
MECHANISMS FOR ENSURING THAT CONSUMERS ARE PROPERLY INFORMED 
15 
OF SUCH HAZARDS." 
16 
17 
SEC. 10. Article 52, Chapter 1- Deceptive, Unfair, and Unconscionable Sales Acts or Practices, 
18 
Title III of Republic Act 7394, otherwise known as the "Consumer Act of the Philippines" is 
19 
hereby amended to read as follows: 
20 
21 
"Art. [52] 55. Unfair or Unconscionable Sales Act or Practice. xxx 
22 
23 
"a) xxx 
24 
25 
d)that the transaction that the seller or supplier induced the consumer to enter into was 
26 
excessively one-sided in favor of the seller or supplier SUCH AS BUT NOT LIMITED 
27 
TO: 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 
40 
41 
42 
I. 
II. 
THAT WHEN THE CONSUMER TRANSACTION WAS ENTERED INTO, 
THE SELLER OR SUPPLIER IMPOSED UPON THE CONSUMER 
TERMS AND CONDITIONS GROSSLY DISADVANTAGEOUS TO THE 
LATTER WHO IS REDUCED TO THE ALTERNATIVE OF ACCEPTING 
THE CONTRACT OR LEAVING IT, COMPLETELY DEPRIVED OF THE 
OPPORTUNITY TO BARGAIN ON EQUAL FOOTING; AND 
THE 
SELLER 
OR 
SUPPLIER 
EMPLOYS 
AN 
AGGRESSIVE 
MARKETING PRACTICE THAT SIGNIFICANTLY CONSTRAINS OR 
IMPAIRS OR IS LIKELY TO SIGNIFICANTLY CONSTRAIN OR IMPAIR 
THE AVERAGE CONSUMER'S FREEDOM OF CHOICE OR CONDUCT 
WITH REGARD TO THE PURCHASE OF A PRODUCT OR SERVICE 
THAT CAUSES HIM OR IS LIKELY TO CAUSE HIM TO ENTER INTO A 
CONSUMER TRANSACTION DIFFERENT FROM THE ONE HE 
9 


1 
WOULD HAVE INTENDED, OR HE WOULD NOT HAVE DONE 
2 
WITHOUT THE MARKETING PRACTICE. 
3 
4 
SEC. 11. Article 81, Chapter IV - Labeling and Fair Packaging, Title III of Republic Act 7394, 
5 
otherwise known as the "Consumer Act of the Philippines" is hereby amended to read as 
6 
follows: 
7 
8 
"Art.[81]84. Price Tag Requirement. - It shall be unlawful to offer any consumer 
9 
product OR SERVICE for retail sale to the public without an appropriate price tag, label, 
10 
or marking, OR WITH 
MORE THAN ONE PRICE, OR DIFFERENT PRICE TAGS, 
11 
LABELS, OR MARKINGS publicly displayed to indicate of each article and said products 
12 
shall not be sold at a price higher than that stated therein and without discrimination to 
13 
all buyers: PROVIDED, THAT IT SHALL BE UNLAWFUL FOR ANY RETAILER TO 
14 
CHARGE THE CUSTOMERS MORE THAN THE ACTUAL CASH RETAIL PRICE OF 
15 
THE GOODS OR SERVICES PURCHASED WHEN SUCH PURCHASE IS DONE WITH 
16 
THE USE OF CREDIT CARD AND/OR TO LIMIT BARGAIN SALE ITEMS AND 
17 
SERVICES TO CASH PURCHASES: Provided, further, That lumber sold, displayed or 
18 
offered for sale to the public shall be tagged or labeled by indicating thereon the price 
19 
and the corresponding official name of the wood: PROVIDED, FINALLY, That if 
20 
consumer products for sale are too small or the nature of which makes it impractical to 
21 
place a price tag thereon price list placed at the nearest point where the products are 
22 
displayed indicating the retail price of the same may suffice." 
23 
24 
SEC. 12. Republic Act No. 7394, otherwise known as the "Consumer Act of the Philippines" is 
25 
hereby amended by inserting a new Article 87 under Chapter IV Labeling and Fair Packaging, 
26 
Title III to read as follows: 
27 
28 
"ART. 87. ENGLISH OR FILIPINO TRANSLATIONS OF PRODUCT LABELS 
29 
WRITTEN IN FOREIGN CHARACTERS/LANGUAGES. - CONSUMER PRODUCTS 
30 
WITH PRODUCT LABELS WRITTEN IN FOREIGN CHARACTERS/LANGUAGE SHALL 
31 
BE ALLOWED ENTRY INTO THE COUNTRY AND INTRODUCED INTO COMMERCE 
32 
ONLY IF THEY HAVE A CORRESPONDING ENGLISH OR FILIPINO TRANSLATION 
33 
TO ENABLE THE AUTHORITIES TO DETERMINE WHETHER THE PRODUCT HAS 
34 
COMPLIED WITH ALL THE OTHER LABELING REQUIREMENTS AS WELL AS 
35 
PROVIDE THE CONSUMERS PROPER GUIDANCE ON THE CONTENTS AND 
36 
ORIGIN OF THE PRODUCT." 
37 
38 
SEC. 13. Republic Act No. 7394, otherwise known as the "Consumer Act of the Philippines" is 
39 
hereby amended by inserting a new Article 88 under Chapter IV Labeling and Fair Packaging to 
40 
read as follows: 
41 
42 
10 


1 
"ART. 88. OFFICIAL SOURCES OF INFORMATION FOR IMPORTED CONSUMER 
2 
PRODUCTS. -IMPORT DATA FROM THE BUREAU OF CUSTOMS AND BUREAU OF 
3 
IMPORT SERVICES SHALL BE RECOGNIZED AS OFFICIAL SOURCES OF 
4 
INFORMATION TO VALIDATE THE FOLLOWING INFORMATION RELATIVE TO A 
5 
PARTICULAR IMPORTED CONSUMER PRODUCT: 
6 
7 
8 
9 
10 
11 
12 
13 
1. 
2. 
3. 
4. 
5. 
6. 
COUNTRY OF MANUFACTURE; 
NAME AND ADDRESS OF MANUFACTURER / EXPORTER; 
NAME AND ADDRESS OF IMPORTER/CONSIGNEE; 
VALUE AND VOLUME OF SHIPMENT; 
DATE OF ARRIVAL, AND; 
OTHER INFORMATION RELEVANT TO THE SHIPMENT IN QUESTION." 
14 
SEC. 14. Republic Act No. 7394, otherwise known as the "Consumer Act of the Philippines" is 
15 
hereby amended by inserting a new Article 115 under Chapter VI -Advertising and Sales 
16 
Promotion, Title III to read as follows: 
17 
18 
"ART. 115. COVERAGE OF ADVERTISING AND SALES PROMOTION. -
THE 
19 
PROVISIONS ON ADVERTISING AND SALES PROMOTION SHALL APPLY TO 
20 
ADVERTISING AND PROMOTION OF CONSUMER PRODUCTS, SERVICES AND 
21 
CREDIT 
FACILITIES, 
WHICH 
INCLUDE 
SPONSORSHIPS 
OF 
PROGRAMS, 
22 
CONCERTS, GAMES, SHOWS AND SIMILAR ACTIVITIES. PROVIDED, THAT WITH 
23 
RESPECT TO 
FOOD, 
DRUGS, 
DEVICES, 
COSMETICS AND 
HAZARDOUS 
24 
SUBSTANCES AND AGRICULTURAL PRODUCTS, THE SAME SHALL BE UNDER 
25 
THE JURISDICTION OF THE DEPARTMENTS CONCERNED." 
26 
27 
SEC. 15. Republic Act No. 7394, otherwise known as the "Consumer Act of the Philippines" is 
28 
hereby amended by inserting a new Article 116 under Chapter VI -Advertising and Sales 
29 
Promotion, Title III to read as follows: 
30 
31 
"ART. 116. COVERAGE - THESE PROVISIONS SHALL APPLY TO THE PHILIPPINE 
32 
ADVERTISING COMMUNITY WHICH INCLUDES ADVERTISERS, ADVERTISING 
33 
AGENCIES, MEDIA AND ADVERTISING SUPPORT GROUPS BUT SHALL NOT 
34 
APPLY TO THE FOLLOWING: 
35 
36 
1) 
PUBLIC SERVICE AND EMERGENCY ANNOUNCEMENTS OF UTILITY 
37 
COMPANIES. 
38 
39 
2) 
RELIGIOUS, POLITICAL AND PUBLIC ISSUE ADVERTISEMENTS AND 
40 
ANNOUNCEMENTS, EXCEPT WHERE THESE INVOLVE OR SEEK TO PROMOTE 
41 
COMMERCIAL TRANSACTIONS. 
42 
11 


1 
3) 
STANDARD 
TRANSPORT 
ANNOUNCEMENTS, 
CLASSIFIED 
2 
ADVERTISEMENTS AND OBITUARIES." 
3 
4 
SEC. 16. Republic Act No. 7394, otherwise known as the "Consumer Act of the Philippines" is 
5 
hereby amended by inserting a new Article 117 under Chapter VI -Advertising and Sales 
6 
Promotion, Title III to read as follows: 
7 
8 
"ART. 117. ADVERTISING GENERAL PRINCIPLES - ADVERTISEMENTS SHALL BE 
9 
GUIDED BY THE FOLLOWING PRINCIPLES: 
10 
11 
(1) ADVERTISING MUST PROVIDE THE GENERAL PUBLIC WITH RELEVANT 
12 
AND TRUTHFUL INFORMATION ON PRODUCTS AND SERVICES, THEREBY 
13 
HELPING CONSUMERS MAKE INFORMED CHOICES. 
14 
15 
(2) THE ADVERTISING INDUSTRY SHOULD CONTINUE TO IMPROVE THE 
16 
LEVELS AND STANDARDS OF ADVERTISING. 
17 
18 
19 
SEC. 17. Republic Act No. 7394, otherwise known as the "Consumer Act of the Philippines" is 
20 
hereby amended by inserting a new Article 118 under Chapter VI -Advertising and Sales 
21 
Promotion, Title III to read as follows: 
22 
23 
"ART. 118. PRESENTATION OF ADVERTISEMENTS - (1) CLAIMS OF PRODUCTS 
24 
AND SERVICE PROPERTIES OR THEIR INTENDED USAGE SHOULD BE CLEARLY 
25 
PRESENTED AND SHOULD NOT MISLEAD OR BE LIKELY TO MISLEAD THE 
26 
PERSONS TO WHOM THEY ARE ADDRESSED BY INACCURACY, AMBIGUITY, 
27 
EXAGGERATION OR OMISSION. 
28 
29 
(2) ANY TEST OR DEMONSTRATION MAY BE USED ONLY IF IT DIRECTLY 
30 
PROVES 
THE 
CLAIMED 
PRODUCT 
OR 
SERVICE 
PROPERTY 
OR 
31 
CHARACTERISTICS AND SHOULD BE PRESENTED CLEARLY AND ACCURATELY. 
32 
33 
(3) CORPORATE ADVERTISING MUST BE FAIR, TRUTHFUL AND ACCURATE; IT 
34 
SHOULD 
NOT 
CONTAIN 
ANY 
EXAGGERATIONS 
OR 
SWEEPING 
35 
GENERALIZATIONS THAT MAY 
MISLEAD THE 
PUBLIC REGARDING THE 
36 
ADVERTISER OR THE ATTRIBUTES OF ITS PRODUCTS OR SERVICES. WHERE 
37 
THE ADVERTISEMENTS CONTAIN SPECIFIC CLAIMS REGARDING THE COMPANY 
38 
OR ITS PRODUCTS OR SERVICES, SUCH CLAIMS MUST BE VERIFIABLE AND 
39 
SUBJECT TO SUBSTANTIATION IN THE SAME MANNER AS REGULAR PRODUCT 
40 
OR SERVICE ADVERTISEMENTS. " 
41 
12 


1 
SEC. 18. Article 110, Chapter VI -Advertising and Sales Promotion, Title III of Republic Act 
2 
7394, otherwise known as the "Consumer Act of the Philippines" is hereby amended to read as 
3 
follows: 
4 
5 
"Art. [110]119. False, Deceptive or Misleading Advertisement. - It shall be unlawful 
6 
for any person to disseminate or to cause the dissemination of any false, deceptive or 
7 
misleading advertisement by Philippine mail or in commerce by print, radio, television, 
8 
outdoor advertisement, INTERNET, MOBILE PHONE, or other medium for the purpose 
9 
of inducing or which is likely to induce directly or indirectly the purchase of consumer 
10 
products or services." 
11 
xxx 
12 
13 
SEC. 19. Republic Act No. 7394, otherwise known as the "Consumer Act of the Philippines" is 
14 
hereby amended by inserting a new Article 120 under Chapter VI -Advertising and Sales 
15 
Promotion, Title III to read as follows: 
16 
17 
"ART. 120. SPECIFIC CLAIMS -
(1) 
INGREDIENT ADVERTISING -
(A) 
18 
ADVERTISEMENTS SHOULD NOT CONTAIN ANY REFERENCE WHICH COULD 
19 
LEAD THE PUBLIC TO ASSUME THAT A PRODUCT CONTAINS A SPECIFIC 
20 
INGREDIENT UNLESS THE INGREDIENT'S QUANTITIES AND PROPERTIES AS 
21 
WELL AS THE MATERIAL BENEFIT THAT RESULTS FR<;:lM ITS INCLUSION IN THE 
22 
PRODUCT FORMULATION HAVE BEEN TECHNICALLY SUBSTANTIATED; AND (B) 
23 
ADVERTISEMENTS SHOULD NOT IMPLY THAT A CERTAIN BENEFIT IS DUE TO A 
24 
SPECIFIC 
INGREDIENT 
UNLESS 
A 
VERIFIABLE 
CAUSE 
AND 
EFFECT 
25 
RELATIONSHIP EXISTS. 
26 
27 
(2) PROFESSIONAL DA TE REFERENCES -
ADVERTISEMENTS USING THE 
28 
RESULTS OF A BONA FIDE RESEARCH, SURVEYS, OR TEST RELATING TO A 
29 
PRODUCT SHOULD NOT BE PRESENTED INACCURATELY OR IN A MISLEADING 
30 
MANNER, NOR SHOULD IT CLAIM ANY IMPLICATIONS BEYOND THAT CLEARLY 
31 
ESTABLISHED BY RESEARCH, SURVEY OR TEST. 
32 
33 
(3) SCIENTIFIC CLAIMS -
(A) VISUAL REPRESENTATIONS OF LABORATORY 
34 
SETTINGS MAY ONLY BE EMPLOYED PROVIDED THE RESEARCH WAS 
35 
CONDUCTED IN THE LABORATORY; 
AND (B) IN CASE OF REFERENCES TO 
36 
TESTS BY PROFESSIONALS OR INSTITUTIONS INCLUDING BUT NOT LIMITED TO 
37 
DOCTORS, 
ENGINEERS, 
RESEARCH 
FOUNDATIONS, 
DOCUMENTED 
AND 
38 
AUTHORITATIVE EVIDENCE SHOULD BE SUBMITTED TO SUBSTANTIATE SUCH 
39 
TESTS AND THE CLAIMS BASED THEREON. 
40 
41 
(4) NUMBER 1 OR LEADERSHIP CLAIM -
(A) NO "NUMBER 1" CLAIM WITH 
42 
RESPECT TO ANY PRODUCT OR SERVICE SHALL BE ALLOWED UNLESS IT IS 
13 


1 
CLEARLY 
DELINEATED 
AND 
QUALIFIED 
AS 
TO 
RENDER 
THE 
CLAIM 
2 
OBJECTIVELY 
VERIFIABLE. 
THE 
CLAIM 
SHOULD, 
IN 
ANY 
CASE, 
BE 
3 
SUBSTANTIATED. 
4 
5 
(5) TESTIMONIALS -
(A) TESTIMONIAL CLAIMS RELATING TO THE PRODUCT 
6 
BEING ADVERTISED SHOULD BE GENUINE AND TRUTHFUL. 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
(8) 
INDIVIDUALS 
ENDORSING 
A 
PRODUCT 
OR 
SERVICE 
IN 
COMMUNICATION MATERIALS AND WHO IS PRESENTED AS AN EXPERT 
MUST HAVE DEMONSTRABLE CREDENTIALS TO SUBSTANTIATE THE 
CLAIMED 
EXPERTISE. 
HIS 
OR 
HER 
ENDORSEMENT 
MUST 
BE 
SUPPORTED 
BY AN 
ACTUAL 
EXERCISE OF HIS 
EXPERTISE 
IN 
EVALUATING 
THE 
PRODUCT 
OR 
SERVICE 
FEATURES 
OR 
CHARACTERISTICS. SUCH EVALUATION MUST BE RELEVANT AND 
AVAILABLE TO AN ORDINARY CONSUMER'S USE OF OR EXPERIENCE 
WITH THE PRODUCT. 
18 
(C) ENDORSEMENTS BY AN ORGANIZATION ARE CONSIDERED AS 
19 
JUDGMENT BY A GROUP WHOSE COLLECTIVE EXPERIENCE OUTWEIGHS 
20 
THAT OF AN INDIVIDUAL MEMBER. ADVERTISER MUST PROVIDE 
21 
EVIDENCE THAT THE ORGANIZATION'S ENDORSEMENT WAS REACHED 
22 
BY A PROCESS SUFFICIENT TO ENSURE THAT IT REFLECTS THE 
23 
COLLECTIVE JUDGMENT OF THE ORGANIZATION. 
24 
25 
THE ORGANIZATION MAY BE CONSIDERED LEGITIMATE IF IT CAN PRESENT 
26 
PROOF OF EXISTENCE FOR AT LEAST ONE YEAR." 
27 
28 
29 
SEC. 20. Republic Act No. 7394, otherwise known as the "Consumer Act of the Philippines" is 
30 
hereby amended by inserting a new Article 125 under Chapter VI -Advertising and Sales 
31 
Promotion, Title III to read as follows: 
32 
33 
"ART. 125. COVERAGE AND EXEMPTION OF THE SALES PROMOTION OF 
34 
CONSUMER PRODUCTS AND SERVICES. (A) COVERAGE OF THE SALES 
35 
PROMOTION OF CONSUMER PRODUCTS AND SERVICES - THE PROVISIONS ON 
36 
SALES PROMOTIONS OF THE CONSUMER PRODUCTS AND SERVICES SHALL 
37 
APPLY TO ALL PROMOTIONAL CAMPAIGNS AND ANNOUNCEMENTS FOR 
38 
CONSUMER PRODUCTS, SERVICES, CREDIT FACILITIES, AS WELL AS BEAUTY 
39 
CONTESTS, NATIONWIDE IN CHARACTER. 
40 
41 
THE PROVISIONS OF SALES PROMOTION OF CONSUMER PRODUCTS AND 
42 
SERVICES SHALL LIKEWISE APPLY TO SIMILAR ACTIVITIES SUCH AS BUT NOT 
14 


1 
LIMITED TO IN-STORE PROMOTIONS OFFERING REDUCED PRICES, 
SPECIAL 
2 
OFFERS, 
PRODUCT 
DEMONSTRATION, 
PRODUCTS 
SAMPLES, 
REBATES, 
3 
DISCOUNTS, PREMIUM-IN-PACK, AND EXPERT ADVICE. 
4 
5 
(B) EXEMPTION OF THE SALES PROMOTION OF CONSUMER PRODUCTS 
6 
AND SERVICES -
THE PROVISIONS OF SALES PROMOTION OF CONSUMER 
7 
PRODUCTS 
AND 
SERVICES 
SHALL 
NOT 
APPLY 
TO 
THE 
FOLLOWING 
8 
PROMOTIONAL CAMPAIGNS OR ACTIVITIES: 
9 
10 
11 
12 
13 
14 
15 
16 
17 
(1) 
GOVERNMENT 
OR 
ANY 
OF 
ITS 
AGENCIES 
OR 
INSTRUMENTALITIES, WHEN 
THE 
SAME 
IS 
CONDUCTED 
IN 
THE 
EXERCISE OF THEIR GOVERNMENTAL FUNCTIONS. 
(2) 
PRIVATE ENTITIES IN JOINT PROJECT/S WITH ANY GOVERNMENT 
AGENCY UNDER THE PRECEDING PARAGRAPH. 
(3) 
SOCIAL, 
CIVIC, 
POLITICAL, 
RELIGIOUS, 
EDUCATIONAL, 
18 
PROFESSIONAL AND OTHER SIMILAR ORGANIZATIONS WHICH EXTEND 
19 
PROMOTIONAL ACTIVITY AMONG THEIR MEMBERS: PROVIDED, THAT 
20 
THE 
PROMOTIONAL 
ACTIVITY 
IS 
NOT 
CONSIDERED 
SALES 
21 
PROMOTIONAL CAMPAIGN AS DEFINED UNDER THIS ACT. 
22 
23 
SEC. 21. Article 116, Chapter VI -Advertising and Sales Promotion, Title III of Republic Act 
24 
7394, otherwise known as the "Consumer Act of the Philippines" is hereby amended to read as 
25 
follows: 
26 
27 
"ART. [116] 126. 
Permit to Conduct Promotion. -
No person shall conduct any 
28 
sales campaigns, including beauty contest, national in character, sponsored and 
29 
promoted by PRODUCERS, RETAILERS, SELLERS, DISTRIBUTORS, SUPPLIERS, 
30 
IMPORTERS, OR manufacturing enterprises without first securing a permit from the 
31 
concerned department [at least thirty (30) calendar days] prior to the commencement 
32 
thereof. Unless an objection or denial is received WITHIN 5 (FIVE) DAYS [fifteen (15) 
33 
days} from filing of the COMPLETE application, the same shall be deemed approved 
34 
and the promotion campaign or activity may be conducted: Provided, that any sales 
35 
promotion campaign using medical prescriptions or any part thereof or attachment 
36 
thereto for raffles or a promise of reward shall not be allowed, nor a permit be issued 
37 
thereof." 
38 
39 
SEC. 22. Republic Act No. 7394, otherwise known as the "Consumer Act of the Philippines" is 
40 
hereby amended by inserting a new Article 127 under Chapter VI - Advertising and Sales 
41 
Promotion, Title III, to read as follows: 
42 
15 


1 
"ART. 127. APPLICATION FOR PERMIT - (A) THE APPLICATION FOR PERMIT 
2 
SHALL BE IN THE FORM PRESCRIBED BY THE DEPARTMENT CONCERNED. 
3 
4 
(B) WHO MA Y FILE THE APPL/CA TlON FOR PERMIT -
THE PERSON WHOSE 
5 
CONSUMER PRODUCTS, SERVICES, CREDIT FACILITIES, BEAUTY CONTESTS, 
6 
COMPETITION, GAMES SHOWS AND THE LIKE ARE BEING PROMOTED. 
7 
8 
THE ABOVE PERSON SHALL SIGN THE APPLICATION INDIVIDUALLY OR JOINTLY 
9 
WITH THE OTHERS OR SUBMIT THEREWITH A TRUE COpy OF ANY WRITTEN 
10 
AGREEMENT BETWEEN OR AMONG THEMSELVES, REFLECTING THE DEGREE 
II 
OR EXTENT OF THEIR PARTICIPATION AND RESPONSIBILITY IN THE CONDUCT 
12 
OF THE PROMOTIONAL ACTIVITY COVERED BY THIS ACT OR THE RULES. 
13 
WHERE 
NO 
LIMITATION 
AS 
TO THE 
EXTENT 
OF 
THE 
LIABILITY OR 
14 
RESPONSIBILITY IS INDICATED IS SUCH AGREEMENT, ALL OF THEM SHALL BE 
15 
JOINTLY AND SEVERALLY LIABLE AND RESPONSIBLE THEREFOR. 
16 
17 
(C) APPLICA TION THROUGH AND BY AN AGENT - WHERE THE PROMOTIONAL 
18 
CAMPAIGNIACTIVITY IS APPLIED FOR AND IN BEHALF OF THE PERSONS 
19 
MENTIONED IN PARAGRAPH (A) HEREOF, THE AGENT SHALL BE AUTHORIZED 
20 
BY A SPECIAL POWER OF ATTORNEY OR A BOARD RESOLUTION AS 
21 
EVIDENCED BY SECRETARY'S CERTIFICATE AS THE CASE MAY BE." 
22 
23 
SEC. 23. Republic Act No. 7394, otherwise known as the "Consumer Act of the Philippines" is 
24 
hereby amended by inserting a new Article 128 under Chapter VI - Advertising and Sales 
25 
Promotion, Title III, to read as follows: 
26 
27 
"ART. 128. PROHIBITED ACTS IN THE CONDUCT OF SALES PROMOTION - "THE 
28 
FOLLOWING ACTS ARE PROHIBITED IN THE CONDUCT OF SALES PROMOTION 
29 
CAMPAIGN: 
30 
31 
(A) GAMBLING AND WAGERING SCHEMES; 
32 
33 
(B) USE OF MEDICAL PRESCRIPTIONS; AND 
34 
35 
(C) NO PERSON SHALL DIRECTLY OR INDIRECTLY TAMPER WITH THE ENTRIES , 
36 
PARAPHERNALIA 
ANDIOR 
ELECTRONIC 
DEVICE 
IN 
A 
PROMOTIONAL 
37 
CAMPAIGN/ACTIVITY COVERED BY THIS ACT OR THE RULES NOR UNDULY 
38 
INFLUENCE THE RESULTS THEREOF, NOR PERFORM ANY ACT TO THE 
39 
PREJUDICE OF LEGITIMATE PARTICIPANTS OR WINNERS. 
40 
16 


I 
SEC. 24. Republic Act No. 7394, otherwise known as the "Consumer Act of the Philippines" is 
2 
hereby amended by inserting a new Article 129 under Chapter VI - Advertising and Sales 
3 
Promotion, Title III, to read as follows: 
4 
5 
6 
"ART. 129. VOLUNTARY CANCELLATION OF APPROVED PROMOTIONAL 
7 
CAMPAIGN/ACTIVITY - (A) VOLUNTARY CANCELLATION BEFORE PUBLICATION-
8 
A PERSON MAY VOLUNTARILY CANCEL OR DISCONTINUE THE APPROVED 
9 
PROMOTIONAL 
CAMPAIGN/ACTIVITY 
PROVIDED 
NO 
INFORMATION 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
DISSEMINATION AND ADVERTISING THEREON HAS BEEN MADE AND THAT A 
WRITIEN NOTICE BE SUBMITIED TO THE DEPARTMENT PRIOR TO SUCH 
VOLUNTARY CANCELLATION. 
(B) 
VOLUNTARY 
CANCELLATION 
AFTER 
PUBLICAT/ON 
IF 
ANY 
ANNOUNCEMENT, INFORMATION DISSEMINATION OR ADVERTISING OF THE 
PROMOTIONAL CAMPAIGN/ACTIVITY HAS ALREADY BEEN MADE, BUT THE 
PROMOTION PERIOD HAS NOT YET COMMENCED, THE DISCONTINUANCE OR 
CANCELLATION OF THE PROMOTION MAY BE MADE ONLY UPON PRIOR 
WRITIEN NOTICE TO THE DEPARTMENT WITHIN A PERIOD OF NOT LESS THAN 
FIVE (5) DAYS BEFORE THE COMMENCEMENT OF THE ORIGINAL INTENDED 
DATE OF PROMOTION. 
23 
THE SPONSOR SHALL HONOR THE PROMOTIONAL COMMITMENTS SHOULD IT 
24 
FAIL TO COMPLY WITH THE REQUIRED PERIOD. 
25 
26 
(C) VOLUNTARY CANCELLATION OF ONGOING PROMOTION -
VOLUNTARY 
27 
CANCELLATION OR DISCONTINUANCE OR SUSPENSION OF ANY ONGOING 
28 
PROMOTIONAL CAMPAIGNSIACTIVITIES SHALL NOT BE ALLOWED EXCEPT 
29 
UPON PRIOR WRITIEN APPROVAL BY THE DEPARTMENT WHICH SHALL BE 
30 
BASED ON ANY OF THE FOLLOWING GROUNDS: 
31 
32 
(I) A FINAL JUDGMENT OF VOLUNTARY INSOLVENCY OR BANKRUPTCY 
33 
AGAINST THE PERSON WHO APPLIED; 
34 
35 
36 
37 
38 
39 
40 
41 
(II) OCCURRENCE OF ANY FORTUITOUS EVENT OR FORCE MAJEURE 
THAT WILL MAKE IT IMPOSSIBLE TO CONTINUE THE PROMOTIONAL 
CAMPAIGN OR ACTIVITY: PROVIDED, HOWEVER, THAT THOSE WHO HAD 
ALREADY WON IN THE PROMOTION BEFORE THE APPROVAL OF THE 
CANCELLATION OR DISCONTINUANCE OR SUSPENSION SHALL BE PAID 
OR GIVEN THEIR PRIZES. 
17 


1 
SEC. 25. Republic Act No. 7394, otherwise known as the "Consumer Act of the Philippines" is 
2 
hereby amended by inserting a new Article 132 under Chapter VI - Advertising and Sales 
3 
Promotion, Title III to read as follows: 
4 
5 
6 
"ART. 132. RULES ON MECHANICS - ALL COVERED PROMOTIONAL CAMPAIGNS 
7 
AND ACTIVITIES SHALL ABIDE BY OR COMPLY WITH THE RULES ON THE 
8 
MECHANICS OF THE PROMOTION SET FORTH IN THE IMPLEMENTING RULES 
9 
AND REGULATIONS OF THE AGENCY CONCERNED." 
10 
11 
SEC. 26. Republic Act No. 7394, otherwise known as the "Consumer Act of the Philippines" is 
12 
hereby amended by inserting a new Article 136 under Chapter VI - Advertising and Sales 
13 
Promotion, Title III to read as follows: 
14 
15 
16 
"ART. 136. SELECTION OF PARTICIPANTS AND WINNERS. THE SELECTION OF 
17 
PARTICIPANTS AND WINNERS OF A PROMOTIONAL PROGRAM SHALL BE 
18 
GUIDED BY THE FOLLOWING: 
19 
20 
(A) 
MODE OF SELECTION OF PROSPECTIVE PARTICIPANTS/ENTRIES -
21 
PROSPECTIVE PARTICIPANTS/ENTRIES ARE SELECTED IN A FAIR, HONEST AND 
22 
TRANSPARENT MANNER. THERE MUST BE PROOF OF NOTICE OF SELECTION 
23 
AND SUCH OTHER RELEVANT INFORMATION TO THE SELECTED PARTICPANTS 
24 
IN A MANNER EXPRESSLY PROVIDED FOR IN THE MECHANICS. 
25 
26 
(B) DETERMINATION OF WINNERS -
DRAW DATE OR DATES FOR THE 
27 
SELECTION OF PARTICIPANTS OR WINNERS TO A PROMOTIONAL CAMPAIGN 
28 
OR ACTIVITY SHALL NOT BE MORE THAN FOURTEEN (14) DAYS AFTER THE 
29 
DEADLINE OF THE SUBMISSION OF ENTRIES. 
30 
31 
WINNERS MAY BE DETERMINED THROUGH THE USE OF ANY TECHNIQUE NOT 
32 
CONTRARY TO LAW, MORALS AND PUBLIC POLICY PROVIDED THE SAME SHALL 
33 
BE CONDUCTED IN A FAIR, HONEST AND TRANSPARENT MANNER." 
34 
35 
36 
SEC. 27. Republic Act No. 7394, otherwise known as the "Consumer Act of the Philippines" is 
37 
hereby amended by inserting a new Article 162 under Title IV - Consumer Credit Transaction to 
38 
read as follows: 
39 
40 
"ART. 162. IMPLEMENTING AGENCY. - THE BANGKO SENTRAL NG PILIPINAS 
41 
SHALL STRICTLY ENFORCE THE PROVISION OF THIS CHAPTER AND ITS 
18 


1 
IMPLEMENTING RULES AND REGULATIONS EXCEPT THOSE WHICH FALL WITHIN 
2 
THE JURISDICTION OF THE SECURITIES AND EXCHNAGE COMMISSION." 
3 
4 
5 
SEC. 28. Article 149, Chapter I - Establishment and Composition, Title V of Republic Act 7394, 
6 
otherwise known as the "Consumer Act of the Philippines" is hereby amended to read as 
7 
follows: 
8 
9 
"Art. [149] 165. Composition. The Council shall be composed of representatives from 
10 
the following government agencies and non-government agencies: 
11 
12 
13 
14 
15 
16 
17 
a) 
b) 
c) 
d) 
E) 
F) 
Department of Trade And Industry; 
Department of Education, [Culture and Sports.] 
Department of Health; 
Department of Agriculture; 
DEPARTMENT OF ENERGY; 
BANGKO SENTRAL NG PILIPINAS; 
18 
G) 
[e] four (4) representatives from the consumer organizations of 
19 
nationwide base to be chosen by the President among [the] ITS nominees 
20 
[submitted by the various groups in the Philippines]; AND 
21 
22 
H) 
If] two (2) representatives from the business industry/sector to be chosen 
23 
by the President from among the nominees submitted by the various business 
24 
organizations." 
25 
26 
SEC. 29. Article 151, Chapter I - Establishment and Composition, Title V of Republic Act 7394, 
27 
otherwise known as the "Consumer Act of the Philippines" is hereby amended to read as 
28 
follows: 
29 
30 
"Art. [151] 167. Per Diems of Members. -
The members of the Council shall be 
31 
entitled to an allowance of FIVE THOUSAND PESOS (P5,OOO.00) [five hundred pesos 
32 
(P500.00)] per meeting actually attended but not more than TWENTY THOUSAND 
33 
PESOS (P20,OOO.OO) [two thousand pesos (P2,OOO.OO)] a month." 
34 
35 
36 
SEC. 30. 
Article 156, Chapter II - Powers and Functions, Title V, of Republic Act 7394, 
37 
otherwise known as the "Consumer Act of the Philippines" is hereby amended to read as 
38 
follows: 
39 
40 
"Art. [156] 171. Consumer Participation. -
The Departments shall establish 
41 
procedures for RECOGNITION OF THE meaningful partiCipation by consumers or 
19 


1 
consumer organizations in the development and review of department rules, policies, 
2 
and programs. Such procedures shall include provisions for a forum, where consumers 
3 
can express their concerns and recommendations to decision-makers. The departments 
4 
shall exert efforts to inform consumers of pending proceedings where their participation 
5 
is important. 
6 
7 
SEC. 
31. Article 164, Chapter III - Consumer Complaints, Title V, of Republic Act 7394, 
8 
otherwise known as the "Consumer Act of the Philippines" is hereby amended to read as 
9 
follows: 
10 
11 
"Art. [164] 179. Sanctions. - After investigation, any of the following administrative 
12 
penalties may be imposed even if not prayed for in the complaint: 
13 
14 
xxx 
15 
16 
E) AUTOMATIC CANCELLATION OF A BUSINESS NAME; 
17 
18 
[e]F)the imposition of administrative fines in such amount as deemed reasonable by the 
19 
Secretary, which shall in no case be less than FIFTY THOUSAND PESOS (P50,OOO.OO) 
20 
[Five hundred pesos (P500.00)] nor more than ONE MILLION PESOS (P1,000,000.00) 
21 
[Three hundred thousand pesos (P300,000.00)] depending on the gravity of the offense, and 
22 
an additional fine of not [more] LESS than One thousand pesos (P1,000.00) FOR [or] each 
23 
day of continuing violation. 
24 
25 
SEC. 32. Republic Act No. 7394, otherwise known as the "Consumer Act of the Philippines" is 
26 
hereby amended by inserting a new Article 185 under Title VI - Transitory and Final Provisions 
27 
to read as follows: 
28 
29 
30 
"ART. 185. CRIMINAL PENALTIES -
ANY PERSON WHO VIOLATES ANY 
31 
PROVISION OF THIS ACT SHALL, UPON CONVICTION, BE SUBJECT TO A FINE OF 
32 
NOT LESS THAN FIFTY THOUSAND PESOS (P50,000.00) BUT NOT MOT MORE 
33 
THAN ONE MILLION PESOS (P1,000,000.00) OR IMPRISONMENT OF NOT LESS 
34 
THAN THREE (3) YEARS BUT NOT MORE THAN SEVEN (7) YEARS OR BOTH, 
35 
UPON THE DISCRETION OF THE COURT. 
36 
37 
38 
SEC. 33. Article 169, Title VI - Transitory and Final Provisions of Republic Act 7394, otherwise 
39 
known as the "Consumer Act of the Philippines" is hereby amended to read as follows: 
40 
41 
"Art. [169] 186. Prescription. -
All actions or claims accruing under the provisions of 
42 
this Act and the rules and regulations issued pursuant thereto shall prescribe within 
20 


1 
THREE (3) years [two (2)] from the time the consumer transaction was consummated or 
2 
the deceptive or unfair and unconscionable act or practice was committed and in case of 
3 
hidden defects, from discovery thereof." 
4 
5 
SEC. 34. Renumbering of Artie/es. Articles of Republic Act Number 7394 are hereby 
6 
renumbered accordingly. 
7 
8 
SEC 35. Implementing Rules and Regulations. - The Council shall promulgate the necessary 
9 
implementing rules and regulations within sixty (60) days from the effectivity of this Act. 
10 
11 
SEC. 36. Separability Clause. If any part or parts of this Act should, for any reason, be declared 
12 
invalid or unconstitutional, the part or parts thereof unaffected shall thereby continue to remain 
13 
in full force and effect. 
14 
15 
SEC. 37. Repealing Clause. All laws, decrees, executive order, rules and regulations and other 
16 
issuances consistent with this Act is hereby repealed or amended accordingly. 
17 
18 
SEC. 38. Effectivity. This Act shall take effect fifteen (15) days from the date of publication in at 
19 
least two (2) newspapers of general circulation. 
20 
21 
Approved, 
21