SEVENTEENTH CONGRESS —_)
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

/ Representative Maximo B. Rodriguez, Jr.

3663

EXPLANATORY NOTE

Introduced b

House Bill No.

This bill was originally introduced as House Bill No, 3833 during the 15th Congress
where it was approved by the Committee on Trade and Industry and substituted by
House Bill No. 6930. It was again re-filed during the 16" Congress.

Republic Act 7394, otherwise known as the Consumer Act of the Philippines was
enacted almost 20 years ago, on April 13, 1992, As such, the penalties provided for
in the law are not in tune with the prevailing situation at present.

Due to the relatively low penalties provided, violators would rather pay the penalties
instead of complying with the law making the penal provisions of the law somewhat
ineffective. Is it therefore time to increase the penalties provided in the law to give it
more teeth and to ensure that future violators would think twice and would comply
with the law.

Further, in line with the policy of the State to protect and promote the right to health
of the people and instill health consciousness among them and to adopt an
integrated and comprehensive approach to health development, it is imperative that
all food, medicine and food supplement products and goods being sold in the
country be required to put the English translation of the name, ingredients, place of
manufacture and nutrient contents of the products prior to putting them in the local
market.

This proposed measure will also afford greater protection to consumers and to
harmonize the Consumer Act with current developments particularly brought about
by technological advancement and the globalized economy directly affecting
consumer transactions.

In view of the foregoing, immediate passage of this bill is earnestly requested

MAXIMO B. RODRIGUEZ, JR.


SEVENTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Maximo B. Rodriguez, Jr.

House Bill No, 3663

AN ACT
AFFORDING MORE 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:

SECTION 1. Article 2 of Republic Act No. 7394 is hereby amended to read as follows:
“Art. 2. Declaration of Basic Policy. ~ Itis the policy of the State to [protect the

interests of the consumer, promote his general welfare and to establish standards of
conduct for business and industry. Towards this end, the State shall implement
measures to achieve] DEVELOP AND IMPLEMENT A STRONG CONSUMER
PROTECTION POLICY, PROMOTE THE GENERAL WELFARE OF CONSUMERS,
AND ESTABLISH STANDARDS OF ETHICAL CONDUCT FOR BUSINESS AND
INDUSTRY. THE STATE RECOGNIZES THAT CONSUMERS OFTEN FACE
IMBALANCES IN ECONOMIC TERMS, EDUCATIONAL LEVELS, AND
BARGAINING POWER. FURTHER, IT SHALL ENSURE THE ACCESS OF
CONSUMERS TO SAFE AND NON-HAZARDOUS PRODUCTS AND TO JUST,
EQUITABLE AND SUSTAINABLE ECONOMIC AND SOCIAL DEVELOPMENT
AND ENVIRONMENTAL PROTECTION. IN THIS REGARD, THE STATE SHALL
IMPLEMENT MEASURES TO ATTAIN the following objectives

[(a) protection against. hazards =~ to ~—shealth = and _—_ safety;

(b) protection against deceptive, unfair and unconscionable sales acts and

practices;

(c) provision of information and education to facilitate sound choice and the

proper exercise of rights by the consumer;

(d) provision of adequate rights and means of redress; and

(e) involvement of consumer representatives in the formulation of social and

economic policies}

TO ACHIEVE AND MAINTAIN ADEQUATE PROTECTION FOR THE

POPULATION AS CONSUMERS;

TO FACILITATE PRODUCTION AND DISTRIBUTION PATTERNS

RESPONSIVE TO THE NEEDS OF CONSUMERS;

TO ENCOURAGE HIGH STANDARDS OF ETHICAL CONDUCT FOR THOSE

ENGAGED IN THE PRODUCTION AND DISTRIBUTION OF GOODS AND

SERVICES TO CONSUMERS;

TO CURB ABUSIVE BUSINESS PRACTICES BY ALL ENTERPRISES WHICH

ADVERSELY AFFECT CONSUMERS;

TO FACILITATE THE DEVELOPMENT OF INDEPENDENT CONSUMER

GROUPS;

TO FOSTER INTERNATIONAL COOPERATION IN THE FIELD OF

CONSUMER PROTECTION;

TO ENCOURAGE THE DEVELOPMENT OF MARKET CONDITIONS WHICH

PROVIDE CONSUMERS WITH GREATER CHOICE AT REASONABLE

a

b

©)

d

e)

g


PRICES; AND

h) TO PROMOTE SUSTAINABLE CONSUMPTION TAKING INTO ACCOUNT
THE GOALS OF ERADICATING POVERTY, SATISFYING BASIC HUMAN
NEEDS OF ALL MEMBERS OF THE SOCIETY AND REDUCING INCOME
INEQUALITY AMONG THE POPULATION.”

Sec, 2. Anew Article 2-A is hereby inserted after Article 2 of Republic Act No. 7394, to read
as follows:

‘ART. 2-A. CONSUMER RIGHTS. - THE CONSUMER SHALL HAVE THE

FOLLOWING BASIC RIGHTS:

a) RIGHT TO BASIC NEEDS - THE CONSUMER SHALL HAVE ACCESS TO
FOOD, CLOTHING, SHELTER, HEALTH CARE, EDUCATION AND
SANITATION IN ACCORDANCE WITH THE CONSUMER'S ECONOMIC
STATUS;

RIGHT TO CHOOSE ~ THE CONSUMER SHALL HAVE ACCESS TO A
VARIETY OF OPTIONS, INCLUDING PRODUCTS AND SERVICES AT
COMPETITIVE PRICES WITH AN ASSURANCE OF SATISFACTORY
QUALITY;

RIGHT TO REPRESENTATION ~ THE CONSUMER SHALL BE ENTITLED TO
EXPRESS CONSUMER INTERESTS AND BE INVOLVED IN THE MAKING
AND EXECUTION OF GOVERNMENT POLICIES;

d) RIGHT TO REDRESS - THE CONSUMER SHALL HAVE ACCESS TO
APPROPRIATE REMEDIES FOR MISREPRESENTATION, SUBSTANDARD
OR DEFECTIVE PRODUCTS OR UNSATISFACTORY SERVICES;

RIGHT TO CONSUMER EDUCATION - THE CONSUMER SHALL HAVE
ACCESS TO KNOWLEDGE AND INFORMATION NECESSARY TO MAKE AN
INFORMED CHOICE;

RIGHT TO SAFETY - THE CONSUMER SHALL BE ENTITLED TO
PROTECTION AGAINST THE MARKETING OF GOODS OR PROVISION OF
SERVICES THAT ARE HAZARDOUS TO HEALTH AND LIFE;

RIGHT TO A HEALTHY ENVIRONMENT- THE CONSUMER SHALL HAVE THE
RIGHT TO LIVE AND WORK IN AN ENVIRONMENT WHICH IS NEITHER
THREATENING NOR DANGEROUS, WHICH PROMOTES WELL-BEING, AND
WHICH PERMITS A LIFE OF DIGNITY; AND

RIGHT TO INFORMATION - THE CONSUMER SHALL BE PROVIDED WITH
THE FACTS AND INFORMATION NEEDED TO MAKE AN INFORMED
CHOICE, AND TO PROTECTION AGAINST DISHONEST OR MISLEADING
ADVERTISING OR LABELING AND SHALL.”

b)

°)

e)

f)

g

h

Sec. 3. Anew Article 2-B is hereby inserted after Article 2 of Republic Act No. 7394, to read
as follows:

‘ART. 2-B. CONSUMER RESPONSIBILITIES. THE CONSUMER SHALL
EXERCISE THE FOLLOWING BASIC RESPONSIBILITIES:

a) CRITICAL AWARENESS - THE CONSUMER SHALL BE ALERT AND
INQUISITIVE ABOUT THE USE, PRICE, AND QUALITY OF
PRODUCTS AND SERVICES;

ACTION — THE CONSUMER SHALL REFRAIN FROM BEING PASSIVE
AND SHALL ASSERT THE RIGHT TO TAKE ACTION TO ENSURE
THAT ONE'S RIGHTS AS A CONSUMER ARE AMPLY PROTECTED;

¢) SOCIAL CONCERN - THE CONSUMER SHALL BE MORE AWARE OF

THE IMPACT OF ONE’S CONSUMPTION ON OTHER CITIZENS

ESPECIALLY THE DISADVANTAGED OR POWERLESS GROUPS,

WHETHER IN THE LOCAL, NATIONAL, OR INTERNATIONAL

COMMUNITY;

b)


d) ENVIRONMENTAL AWARENESS — THE CONSUMER SHALL BE
CONSTANTLY AWARE OF THE IMPACT AND CONSCIOUSNESS OF
HUMAN ACTIVITY ON THE ENVIRONMENT, THE CONSUMER
SHOULD RECOGNIZE THE OBLIGATION OF INDIVIDUALS, AND OF
SOCIETY IN GENERAL, TO UTILIZE NATURAL RESOURCES
RESPONSIBLY, AND TO SECURE AND PROTECT THE EARTH FOR
FUTURE GENERATIONS; AND

SOLIDARITY — CONSUMERS SHALL ORGANIZE THEMSELVES INTO
GROUPS OR ASSOCIATIONS TO FOSTER STRENGTH AND
INFLUENCE IN THE FORMULATION OF POLICIES THAT SEEK TO
PROMOTE AND PROTECT THEIR INTERESTS.

e)

Sec. 4. Article 4 of Republic Act No. 7394 is hereby amended to read as follows:

“Art. 4. Definition of Terms. — For purposes of this Act, the term:
Ox

k) “Chain distribution plan{s]’ or ("pyramid sales schemes"] “PSEUDO-
INVESTMENT’ means ANY [sales devices whereby a person, upon
condition that he makes an investment, is granted by the manufacturer of his
representative a right to recruit for profit one or more additional persons who
will also be granted such right to recruit upon condition of making similar
investments: Provided, That the profits of the person employing such a plan
are derived primarily from the recruitment of other persons into the plan
rather than from the sale of consumer products, services and credit
Provided, further, That the limitation on the number of participants dees not
change the nature of the plan.] OF THE FOLLOWING:

1. PYRAMID SALES SCHEME REFERS TO SALE DEVICES OR

PLANS WHEREBY UPON CONDITION THAT AN INVESTMENT
IS MADE BY WAY OF PURCHASING GOODS OR PAYING A
FEE, A PERSON IS GRANTED BY A MANUFACTURER OR
THE MANUFACTURER'S REPRESENTATIVE THE RIGHT TO
SELL PRODUCTS AND SERVICES AS WELL AS RECRUIT
ONE OR MORE ADDITIONAL PERSONS WHO WILL BE
GRANTED SUCH RIGHT TO RECRUIT, UPON CONDITION OF
MAKING SIMILAR INVESTMENTS;

2. PONZI| SCHEME REFERS TO A BUSINESS STRUCTURE
SIMILAR TO THE PYRAMID SCHEME THAT IS OPERATED BY
A PERSON OR GROUP, NATURAL OR JURIDICAL, WHERE
THERE IS NO TRUE PRODUCT OR SERVICE BEING
OFFERED IN EXCHANGE FOR THE INVESTMENT AND
WHERE THE MONEY TENDERED BY NEW INVESTORS ARE
PAID TO EARLIER INVESTORS;

TELEMARKETING FRAUD REFERS TO A SCHEME WHERE
HIGH PRESSURE TACTICS ARE MADE OVER THE PHONE
WITH THE INTENT TO MAKE THE INVESTOR BUY INTO A
FRAUDULENT OR NON-EXISTENT INVESTMENT OFFERING;
AND
TECHNOLOGY FRAUD REFERS TO A SCHEME WHEREIN
INVESTORS ARE LULLED INTO MAKING PURCHASES OF OR
INVESTMENTS ON NON-EXISTENT PRODUCTS, THROUGH
THE INTERNET OR CYBER SHOPPING.
70x

m) "Commerce" means the sale, lease, exchange, traffic or distribution of

goods, commodities, productions, services or property, tangible or

2

ES


intangible, INCLUDING THOSE TRANSACTED BY ELECTRONIC
MEANS.
00x
n) "Consumer" means a natural person who is a purchaser, lessee, recipient
or prospective purchaser, lessor or recipient of consumer products,
services, [or] credit, TECHNOLOGY, ADVERTISING OR PROMOTION,
AND OTHER ITEMS IN COMMERCE.
10K
q) “Consumer products and services” mean{s] goods, services and credits,
debts or obligations, which are primarily for personal, family, household or
agricultural purposes, which shall include, but not limited to,] food, drugs,
cosmetics, [and] devices AND TECHNOLOGY,
00
w) "Credit card" means any card, plate, coupon book or other SINGLE credit
device existing for the purpose of obtaining money, property, labor or
services] BEING USED FROM TIME TO TIME UPON PRESENTATION
TO PAY FOR GOODS OR SERVICES, OR TO BORROW MONEY on
credit
200K
at) “Mass media” [refers to] MEANS any [means] OF THE MODES or
methods OF COMMUNICATION used to convey advertising messages to
the public such as television, radio, BROADSHEETS, THE INTERNET,
MOBILE PHONES AND SIMILAR ELECTRONIC DEVICES, magazines.
cinema, billboards, posters, streamers, hand bills, leaflets, mails and the
tke.

00K

bm) "Sales Promotion" means techniques INTENDED TO PROMOTE OR
INCREASE THE SALES, PATRONAGE OR GOODWILL OF A
PRODUCT OR SERVICE AND intended for broad consumer participation
which contain promises of gain such as prizes, in cash or in kind, OR AN
OPPORTUNITY TO WIN ANY PRIZE, GIFT OR FREE SERVICES, OR
SIMILAR SCHEME as reward for transacting for, receiving, or purchasing
a product, security, service or winning in contest, game, tournament and
other similar competitions or challenges which involve determination of
{winner/s] WINNER OR WINNERS and which utilize mass media or other
widespread media of information INCLUDING INFORMATION AND
COMMUNICATION TECHNOLOGY, [It also means techniques purely
intended to increase the sales, patronage and/or goodwill of a product}

bn) "Seller" means a person engaged in the business of selling consumer
products OR SERVICES directly to consumers. It shall include a supplier
or distributor if (1) the seller is a subsidiary or affiliate of the supplier or
distributor; (2) the seller interchanges personnel or maintains common or
overlapping officers or directors with the supplier or distributor; or (3) the
supplier or distributor provides or exercises supervision, direction or
control over the selling practices of the seller.

200

br) "Standard" means a set of conditions to be fulfilled to ensure the quality
and safety of a product OR SERVICE PROPERLY ESTABLISHED BY A
RECOGNIZED NATIONAL OR INTERNATIONAL AUTHORITY OF
RELEVANT EXPERTISE AS ESTABLISHED BY LAW.”

20x

Sec. 5, Article 8 of Republic Act No. 7394 is hereby amended to read as follows.


“Art. 8. Publication of Consumer Product Standards, - The concemed
department shall, upon promulgation of the above standards, publish or cause the
publication of the same EITHER in [two] A [newspapers] newspaper of general
circulation [at least once a week for a period of not less than one (1) month,], IN THE
OFFICIAL GAZETTE, OR IN THE OFFICIAL WEB PORTAL OF THE
DEPARTMENT OR AGENCY. It may likewise conduct an information campaign
through other means deemed effective to ensure the proper guidance of consumers,
businesses, industries and other sectors concerned,”

Sec. 6. Article 10 of Republic Act No. 7394 is hereby amended to read as follows:

‘Art. 10. injurious, Dangerous and Unsafe Products. - Whenever the
departments find, by their own initiative or by petition of a consumer, that a consumer
product is found to be injurious, unsafe or dangerous, it shall, after due notice and
hearing, make the appropriate order for its recall, prohibition or seizure from public
sale of distribution: Provided, That, in the sound discretion of the department, it may
declare a consumer product to be imminently injurious, unsafe or dangerous, and
order its immediate recall, ban or seizure from public sale or distribution, in which
case, the seller, distributor, manufacturer or producer thereof shall be afforded a
hearing within forty-eight (48) hours from such order: PROVIDED FURTHER, THAT
THE IMPLEMENTING AGENCIES ARE EMPOWERED TO CLOSE OR’ SHUT
DOWN THE BUSINESS PREMISES OF ANY ESTABLISHMENT CAUGHT
SELLING, DISTRIBUTING, MANUFACTURING, PRODUCING, DISPLAYING OR
IMPORTING CONSUMER PRODUCT ADJUDGED TO BE INJURIOUS, UNSAFE
OR DANGEROUS OR IMMINENTLY INJURIOUS, UNSAFE OR DANGEROUS.

The ban on the sale and distribution of a consumer product adiudged injurious,
unsafe or dangerous, or imminently injurious, unsafe or dangerous OR THE CLOSURE
OR SHUTTING DOWN OF THE CONCERNED ESTABLISHMENT under the preceding
paragraph shall stay in force until such time that its safety can be assured or measures
to ensure its safety have been established.”

Sec. 7. Article 11 of Republic Act No, 7394 is hereby amended to read as follows:

“Art. 11. Amendment and Revocation of Declaration of the injurious, Unsafe
or Dangerous Character of a Consumer Product. — Any interested person may
petition the appropriate department to commence a proceeding for the issuance of
an amendment or revocation of a consumer product safety rule or an order declaring
a consumer product injurious, dangerous and unsafe.

In case the department, upon petition by an interested party or its own
initiative and after due notice and hearing, determines a consumer product to be
substandard or materially defective, it shall, WITHOUT DELAY, [so] notify the
manufacturer, distributor or seller thereof of such finding and order such
manufacturer, distributor or seller to

a) ISSUE A PRODUCT RECALL ORDER ACCORDING TO THE

PROCEDURE PRESCRIBED BY THE CONCERNED DEPARTMENT
AND dive notice to the public of the defect or failure to comply with the
product safety standards;

b) give notice to each distributor or seller of such product; AND

c) GIVE NOTICE TO EVERY PERSON TO WHOM SUCH CONSUMER

PRODUCT WAS DELIVERED OR SOLD:

PROVIDED, THAT WHEN A CONSUMER PRODUCT IS DECLARED
TO BE IMMINENTLY INJURIOUS, UNSAFE OR DANGEROUS
PURSUANT TO ARTICLE 10 OF THIS ACT, ITS IMMEDIATE RECALL
FROM PUBLIC SALE OR DISTRIBUTION SHALL BE ORDERED
BEFORE THE SELLER, DISTRIBUTOR, MANUFACTURER OR


PRODUCER THEREOF SHALL BE AFFORDED A HEARING WITHIN
FORTY-EIGHT (48) HOURS FROM SUCH ORDER
The CONCERNED department shall also direct the manufacturer, distributor or
seller of such product to extend, WITHIN REASONABLE TIME, any or all of the
following remedies to the injured person
a) to bring such product into conformity with the requirements of the applicable
consumer product standards or to repair the defect in order to conform with
the same;
b) to replace the product with a like or equivalent product which complies with
the applicable consumer product standards which does not contain the defect;
c) to refund the purchase price of the product less a reasonable allowance for
use; and
d) to pay the consumer reasonable damages as may be determined by the
department.
The manufacturer, distributor or seller shall not charge a consumer who avails
himself of the remedy as provided above of any expense and cost that may be
incurred.”

Sec 8. Article 19 of Republic Act No. 7394 is hereby amended to read as follows:

Art. 19. Penalties. - a) Any person who shall violate any provision of Article 18 shall,
upon conviction, be subject to a fine of not less than [One thousand pesos (P1,000.00)}
TEN THOUSAND PESOS (PHP 10,000) but not more than [Ten thousand pesos
(P10,000.00)} ONE HUNDRED THOUSAND PESOS (PHP 100,000) or imprisonment of
not less than [two (2) months] ONE (1) YEAR but not more than [one (1) year] FIVE (5)
YEARS, or both upon the discretion of the court. If the offender is an alien, he shall be
deported after service of sentence and payment of fine without further deportation
proceedings.

bb) xxx

6) xx."

Sec. 9. Article 39 of Republic Act No. 7394 is hereby amended to read as follows:

“Art. 39. Administrative Sanctions- [In addition to the administrative sanctions
provided for under Letter of Instructions No. 1223, the Department is hereby authorized
to impose, after notice and hearing, administrative fines of not less than One thousand
pesos (P1,000.00) nor more than Five thousand pesos (P§,000.00) for any violation of
this Act] WHERE AFTER DUE NOTICE AND HEARING, A PERSON HAS BEEN
FOUND TO HAVE COMMITTED ANY OF THE PROHIBITED ACTS UNDER THIS
LAW, THE DEPARTMENT IS HEREBY AUTHORIZED TO IMPOSE ONE OR MORE
OF THE FOLLOWING ADMINISTRATIVE PENALTIES:

“(1) CANCELLATION OF ANY AUTHORIZATION WHICH MAY HAVE BEEN
GRANTED BY THE FOOD AND DRUG ADMINISTRATION (FDA), OR SUSPENSION
OF THE VALIDITY THEREOF FOR SUCH PERIOD OF TIME AS THE DIRECTOR-
GENERAL OF THE FDA MAY DEEM REASONABLE, WHICH SHALL NOT EXCEED
ONE (1) YEAR;

“(2) A FINE OF NOT LESS THAN FIFTY THOUSAND PESOS (P§0,000.00) BUT NOT
MORE THAN FIVE HUNDRED THOUSAND PESOS (P500,000.00). AN ADDITIONAL
FINE OF NOT MORE THAN ONE THOUSAND PESOS (P1,000.00) SHALL BE
IMPOSED FOR EACH DAY OF CONTINUING VIOLATION; AND

“(3) DESTRUCTION AND/OR APPROPRIATE DISPOSITION OF THE SUBJECT
HEALTH PRODUCT AND/OR CLOSURE OF THE ESTABLISHMENT FOR ANY
VIOLATION OF THIS ACT, AS DETERMINED BY THE DIRECTOR-GENERAL OF
THE FDA.”

Sec. 10. Article 41 of Republic Act 7394 is hereby amended to read as follows:


“Art, 41. Penalties.- a) Any person who violates any of the provisions of Article 40
hereof shall, upon conviction, [be subject to imprisonment of not less than one (1) year
but not more than five (5) years, or a fine of not less than Five thousand pesos
(P5,000.00) but not more than Ten thousand pesos (P10,000.00), or both such
imprisonment and fine, in the discretion of the Court] SUFFER THE PENALTY OF
IMPRISONMENT RANGING FROM ONE (1) YEAR BUT NOT MORE THAN TEN (10)
YEARS, OR A FINE OF NOT LESS THAN FIFTY THOUSAND PESOS (P50,000.00)
BUT NOT MORE THAN FIVE HUNDRED THOUSAND PESOS (P500,000.00), OR
BOTH AT THE DISCRETION OF THE COURT: PROVIDED, THAT IF THE OFFENDER
IS A MANUFACTURER, IMPORTER OR DISTRIBUTOR OF ANY HEALTH PRODUCT,
THE PENALTY OF AT LEAST FIVE (5) YEARS IMPRISONMENT BUT NOT MORE
THAN TEN (10) YEARS AND A FINE OF AT LEAST FIVE HUNDRED THOUSAND.
PESOS (P500,000.00) BUT NOT MORE THAN FIVE MILLION PESOS (P5,000,000.00)
SHALL BE IMPOSED: PROVIDED FURTHER, THAT AN ADDITIONAL FINE OF ONE
PERCENT (1%) OF THE ECONOMIC VALUE/COST OF THE VIOLATIVE PRODUCT
OR VIOLATION, OR ONE THOUSAND PESOS (P1,000.00), WHICHEVER IS HIGHER,
SHALL BE IMPOSED FOR EACH DAY OF CONTINUING VIOLATION: PROVIDED,
FINALLY, THAT HEALTH PRODUCTS FOUND IN VIOLATION OF THE PROVISIONS
OF THIS ACT AND OTHER RELEVANT LAWS, RULES AND REGULATIONS MAY
BE SEIZED AND HELD IN CUSTODY PENDING PROCEEDINGS, WITHOUT
HEARING OR COURT ORDER, WHEN THE DIRECTOR-GENERAL OF THE FDA HAS
REASONABLE CAUSE TO BELIEVE FROM FACTS FOUND BY AN AUTHORIZED
OFFICER OR EMPLOYEE OF THE FDA THAT SUCH HEALTH PRODUCTS MAY
CAUSE INJURY OR PREJUDICE TO THE CONSUMING PUBLIC.

Should the offense be committed by a juridical person, the Chairman of the Board of
Directors, the President, General Manager, or the partners and/or the persons directly
responsible therefor shall be penalized

A FOREIGN NATIONAL, WHO VIOLATES ANY PROVISION OF THIS ACT
SHALL, IN ADDITION TO THE PENALTIES PRESCRIBED, BE DEPORTED WITHOUT
FURTHER PROCEEDINGS AFTER SERVICE OF SENTENCE.

(b) x0%%."

Sec. 11. Article 47 of Republic Act No. 7394 is hereby amended to read as follows
“Art 47. Penalties, Exception. a) Any person who violates any of the provisions of
Article 46 shall, upon conviction, [be subject to a fine of not less than One thousand
pesos (P1,000.00)} or an imprisonment of not less than six (6) months but not more than
five (5) years or both upon the discretion of the court] SUFFER THE PENALTY OF
IMPRISONMENT RANGING FROM ONE (1) YEAR BUT NOT MORE THAN TEN (10)
YEARS OR A FINE OF NOT LESS THAN FIFTY THOUSAND PESOS (P50,000.00)
BUT NOT MORE THAN FIVE HUNDRED THOUSAND PESOS (P500,000.00), OR
BOTH AT THE DISCRETION OF THE COURT: PROVIDED, THAT IF THE OFFENDER
IS A MANUFACTURER, IMPORTER OR DISTRIBUTOR OF ANY HEALTH PRODUCT,
THE PENALTY OF AT LEAST FIVE (5) YEARS IMPRISONMENT BUT NOT MORE
THAN TEN (10) YEARS AND A FINE OF AT LEAST FIVE HUNDRED THOUSAND
PESOS (P500,000.00) BUT NOT MORE THAN FIVE MILLION PESOS (P5,000,000.00)
SHALL BE IMPOSED: PROVIDED FURTHER, THAT AN ADDITIONAL FINE OF ONE
PERCENT (1%) OF THE ECONOMIC VALUE OR COST OF THE VIOLATIVE
PRODUCT OR VIOLATION, OR ONE THOUSAND PESOS (P1,000.00), WHICHEVER
IS HIGHER, SHALL BE IMPOSED FOR EACH DAY OF CONTINUING VIOLATION:
PROVIDED, FINALLY, THAT HEALTH PRODUCTS FOUND IN VIOLATION OF THE
PROVISIONS OF THIS ACT AND OTHER RELEVANT LAWS, RULES AND
REGULATIONS MAY BE SEIZED AND HELD IN CUSTODY PENDING
PROCEEDINGS, WITHOUT HEARING OR COURT ORDER, WHEN THE DIRECTOR-
GENERAL OF THE FDA HAS REASONABLE CAUSE TO BELIEVE FROM FACTS
FOUND BY AN AUTHORIZED OFFICER OR EMPLOYEE OF THE FDA THAT SUCH

8


HEALTH PRODUCTS MAY CAUSE INJURY OR PREJUDICE TO THE CONSUMING
PUBLIC.

SHOULD THE OFFENSE BE COMMITTED BY A JURIDICAL PERSON, THE
CHAIRMAN OF THE BOARD OF DIRECTORS, THE PRESIDENT, GENERAL
MANAGER, OR THE PARTNERS ANDIOR THE PERSONS DIRECTLY
RESPONSIBLE THEREFOR SHALL BE PENALIZED.

A FOREIGN NATIONAL, WHO VIOLATES ANY PROVISION OF THIS ACT
SHALL, IN ADDITION TO THE PENALTIES PRESCRIBED, BE DEPORTED WITHOUT
FURTHER PROCEEDINGS AFTER SERVICE OF SENTENCE.

(b) xxx."

Sec. 12. Article 50 of Republic Act No, 7394 is hereby amended to read as follows:

“Art, 50. Prohibition Against Deceptive Sales Acts or Practices. — A deceptive
act or practice by a seller or supplier in connection with a consumer transaction violates
this Act whether it occurs before, during or after the transaction, An act or practice shall
be deemed deceptive whenever the producer, manufacturer, supplier or seller, through
concealment, false representation of fraudulent manipulation, induces a consumer to
enter into a sales or lease transaction of any consumer product or service, Without
limiting the scope of the above paragraph, the act or practice of a seller or supplier is
deceptive when it represents that

XXX
K) GIFT CHECKS, CERTIFICATES OR CARDS BEING SOLD OR SUPPLIED
SHALL EXPIRE WITHIN A CERTAIN PERIOD: PROVIDED THAT THE GIFT
CHECKS, CERTIFICATES OR CARDS THAT ARE ISSUED BY THE SUPPLIER
TO CONSUMERS UNDER AN AWARD, LOYALTY OR PROMOTIONAL
PROGRAM ARE NOT COVERED BY THIS PROVISION.”

Sec. 13. Article 52 of Republic Act No. 7394 is hereby amended to read as follows:

“Art. 52. Unfair or Unconscionable Sales Act or Practice. — An unfair or
unconscionable sales act or practice by a seller or supplier in connection with a
consumer transaction violates this Chapter whether it occurs before, during, or after the
consumer transaction. An act or practice shall be deemed unfair or unconscionable
whenever the producer, manufacturer, distributor, supplier or seller, by taking advantage
of the consumer's physical or mental infirmity, ignorance, illiteracy, lack of time or the
general conditions of the environment or surroundings, induces the consumer to enter
into a sales or lease transaction inimical to the interests of the consumer or grossly one-
sided in favor of the producer, manufacturer, distributor, supplier or seller,

In determining, whether an act or practice is unfair and unconscionable, the following
circumstances shall be considered:

200K
e) that the transaction that the seller or supplier induced the consumer to enter into
was excessively one-sided in favor of the seller or supplier SUCH AS THE
FOLLOWING:

1) AT THE TIME THE CONSUMER TRANSACTION WAS ENTERED.
INTO, THE SELLER OR SUPPLIER IMPOSED UPON THE CONSUMER
TERMS AND CONDITIONS GROSSLY DISADVANTAGEOUS TO THE
CONSUMER, WHO IS INDUCED TO TAKE THE ALTERNATIVE OF
ACCEPTING THE CONTRACT OR GIVING IT UP, COMPLETELY
DEPRIVED OF THE OPPORTUNITY TO BARGAIN ON EQUAL
FOOTING; OR
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

2)


WITH REGARD TO THE PURCHASE OF A PRODUCT OR SERVICE
OR WHICH CAUSES, OR IS LIKELY TO CAUSE THE CONSUMER TO
ENTER INTO A CONSUMER TRANSACTION DIFFERENT FROM THE
ONE THE CONSUMER WOULD HAVE INTENDED, OR ONE WHICH
THE CONSUMER WOULD NOT HAVE ENTERED INTO OTHERWISE.”

Sec, 14. Article 53 of Republic Act No, 7394 is hereby amended to read as follows
“Art. 53 Chain Distribution Plan[s}] or [Pyramid Sales Schemes] PSEUDO-
INVESTMENT. - Chain distribution plans] or [pyramid sales schemes] PSEUDO-
INVESTMENT shall not be employed in the sale of consumer products OR SERVICES. °

Sec. 15. Article 60 of Republic Act No. 7394 is hereby amended to read as follows:
“Art 60. Penalties. a) Any person who shall violate the provisions of Title Ill,
Chapter |, shall upon conviction, be subject to a fine of not less than [Five Hundred
Pesos] FIFTY THOUSAND PESOS (PHP 50,000) but not more than [Ten Thousand
Pesos] ONE MILLION PESOS (PHP 1,000,000) or imprisonment of not less than [five
(5) months] ONE (1) YEAR but more than [one (1) year] FIVE (5) YEARS, or both upon
the discretion of the court.”
b) xxx

Sec. 16 A new Article 62-A is hereby inserted after Article 62 of Republic Act No. 7394 to
read as follows:

“ART. 62-A. ESTABLISHMENT OF TIMBANGAN NG BAYAN CENTERS.
ALL LOCAL GOVERNMENT UNITS, THROUGH THEIR CONCERNED
PROVINCIAL, CITY OR MUNICIPAL TREASURERS, SHALL ESTABLISH A
TIMBANGAN NG BAYAN CENTER IN ALL MARKETS NATIONWIDE WHERE
INSTRUMENTS FOR DETERMINING WEIGHTS AND MEASURES SHALL BE
OPEN FOR AND ACCESSIBLE TO ANYONE WHO WANTS TO VERIFY THE
ACCURACY OF THE QUANTITY AND MEASUREMENT OF THE PRODUCTS
THAT THEY PURCHASED.

THE SAFEKEEPING AND MAINTENANCE OF THE INSTRUMENTS SHALL
BE UNDER THE CONTROL AND SUPERVISION OF THE CONCERNED
PROVINCIAL, OR CITY OR MUNICIPAL TREASURER, OR THE RESPECTIVE
AUTHORIZED REPRESENTATIVE WHO SHALL LIKEWISE BE IN CHARGE OF
KEEPING A RECORD OF EVERY PRODUCT FOUND TO BE WANTING IN
QUANTITY OR SUBSTANDARD IN DIMENSION AS WELL AS THE
CIRCUMSTANCES SURROUNDING THE SALE THEREOF, INCLUDING THE
NAME OF THE BUYER, THE PRICE PAID, THE NAME OF THE
ESTABLISHMENT WHERE THE PRODUCT WAS BOUGHT, AND THE NAME
OF THE PROPRIETOR OR MANAGER THEREOF. A CERTIFICATION DULY
ISSUED BY THE PROVINCIAL, OR CITY, OR MUNICIPAL TREASURER OR
THE RESPECTIVE AUTHORIZED REPRESENTATIVE REFLECTING THE
CONTENTS OF SUCH RECORD OF SUBSTANDARD OR MISREPERESENTED
PRODUCTS SHALL BE PRIMA FACIE EVIDENCE OF A VIOLATION OF THIS
ACT.”

Sec 17. Article 65 of Republic Act No, 7394 is hereby amended to read as follows:
“Art 65, Penalties, a) Any person who shall violate the provisions of paragraphs
(a) to (f) and paragraph (I) of Arlicle 64 or its implementing rules and regulations
shall, upon conviction, be subject to a fine of not less than [Two hundred (P200.00)]
FIFTY THOUSAND PESOS (PHP 50,000) but not more than [One thousand pesos
(P1,000,00)] ONE MILLION PESOS (PHP 1,000,000) or by imprisonment of not
{more] LESS than one (1) year BUT NOT MORE THAN FIVE (5) YEARS, or both
upon the discretion of the court.


b) Any person who shall violate the provisions of paragraph (g) of Article 64 for
the first time shall be subject to a fine of not less than [Five hundred pesos
(P500.00)] FIFTY THOUSAND PESOS (PHP 50,000) BUT NOT MORE THAN ONE
MILLION PESOS (PHP 1,000,000) or by imprisonment of not less than [one (1)
month)] ONE (1) YEAR but not more than five (5) years, or both upon the discretion
of the court

c) The owner-possessor or user of instrument of weights and measure
enumerated in paragraphs (h) to (k) of Article 64 shall, upon conviction, be subject to
a fine of not less [Three hundred pesos (P300.00)] FIFTY THOUSAND PESOS
(PHP 50,000) BUT NOT MORE THAN ONE MILLION PESOS (PHP 1,000,000) or
imprisonment not exceeding one (1) year BUT NOT MORE THAN FIVE (5) YEARS,
or both upon the discretion of the court.”

Sec. 18. Article 68 of Republic Act No. 7394 is hereby amended to read as follows:

‘Art. 68. Additional Provisions on Warranties. — In addition to the Civil Code
provisions on sale with warranties, the following provisions shall govern the sale of
consumer products with warranty:

20
(f) Breach of warranties. —
(1) 0x
(2) x0
(3) MANUFACTURERS, DISTRIBUTORS, SUPPLIERS, OR RETAILERS
MUST MAINTAIN CONSUMER HOTLINES OR CALL CENTERS OR SERVICE
CENTERS WHICH CONSUMERS CAN EASILY REACH FOR COMPLAINTS
AND INQUIRIES. CONSUMERS MUST NOT BE MADE TO SUFFER GREAT
INCONVENIENCES IN CONTACTING MANUFACTURERS, DISTRIBUTORS,
SUPPLIERS, OR RETAILERS TO CLAIM WARRANTIES AND OTHER
NEEDED SERVICES.”

200

Sec, 19. Arficle 73 of Republic Act No. 7394 is hereby amended to read as follows:

“Art. 73. Penalties. a) Any person who shall violate the provisions of Article 67
shall be subject to fine of not less than [Five hundred pesos (P500.00)] FIFTY
THOUSAND PESOS (PHP 50,000) but not more than [Five thousand pesos
(P5,000.00}] ONE MILLION PESOS (PHP 1,000,000) or an imprisonment of not
less than [three (3) months] ONE (1) YEAR but not more than [two (2) years FIVE (5)
YEARS, or both upon the discretion of the court. A second conviction under this
paragraph shall also cary with it the penalty or revocation of his business permit and

license.
b) Any person, natural or juridical, committing any of the illegal acts provided for

in Chapter Ill, except with respect to Article 67, shall be liable for a fine of not less
than [One thousand pesos (P1,000.00)] FIFTY THOUSAND PESOS (PHP 50,000)
but not more than(Fifty thousand pesos (P50,000.00)] ONE MILLION PESOS (PHP
1,000,000) or imprisonment [for a period of at least | OF NOT LESS THAN one (1)
year but not more than five (5) years, or both upon the discretion of the court.”

The imposition of any of the penalties herein provided is without prejudice to any
llabiliy incurred under the warranty or guarantee

Sec. 20. Anew Article 77-A is hereby inserted after Article 77 of Republic Act No. 7394
to read as follows:

“ART. 77-A. ENGLISH OR FILIPINO TRANSLATION OF PRODUCT LABELS
WRITTEN IN FOREIGN LANGUAGES OR CHARACTERS. - CONSUMER
PRODUCTS WITH PRODUCT LABELS WRITTEN IN FOREIGN LANGUAGE OR
CHARACTER SHALL BE ALLOWED ENTRY INTO THE COUNTRY AND


INTRODUCED INTO COMMERCE: PROVIDED THAT THEY CARRY A
CORRESPONDING ENGLISH OR FILIPINO TRANSLATION TO ENABLE THE
AUTHORITIES TO DETERMINE WHETHER THE PRODUCT HAS COMPLIED
WITH ALL THE OTHER LABELING REQUIREMENTS AND HAS PROVIDED THE
CONSUMERS PROPER GUIDANCE ON THE CONTENT, SOURCE OR ORIGIN
OF THE PRODUCT.”

Sec, 21. Article 79 of Republic Act No, 7394 is hereby amended to read as follows:

“Art. 79. Authority of the Concerned Department to Provide for Additional
Labeling and Packaging Requirements. - Whenever the concerned department
determines that regulations covering requirements other than those prescribed in
Section 77 hereof are necessary to prevent the deception of the consumer or to
facilitate value comparisons as to any consumer product, it may issue such rules and
regulations to

a) establish and define standards for characterization of the size of a package
enclosing any consumer product which may be used to supplement the label
statement of net quality, of contents of packages containing such products but
this clause shall not be construed as authorizing any limitation on the size,
shape, weight, dimensions, or number of packages which may be used to
enclose any product;

b) regulate the placement upon any package containing any product or upon any

label affixed to such product of any printed matter stating or representing by

implication that such product is offered for retail at a price lower than the ordinary
and customary retail price or that a price advantage is accorded to purchases
thereof by reason of the size of the package or the quantity of its contents:

¢) prevent the non-functional slack-fill of packages containing consumer

products;

THE CONCERNED DEPARTMENT MAY LIKEWISE ISSUE SUCH OTHER
REQUIREMENTS AS MAY BE PRESCRIBED BY THE PERTINENT LAWS TO
ENSURE THE SAFETY, EFFICACY AND QUALITY OF CONSUMER PRODUCTS
AND SERVICES.”

20x

Sec. 22. Article 81 of Republic Act No. 7394 is hereby amended to read as follows:
“Art. 81. Price Tag Requirement. It shall be unlawful to offer any consumer
product OR SERVICE for retail sale to the public without an appropriate price tag,
label, or marking OR WITH MORE THAN ONE PRICE, OR DIFFERENT PRICE
TAG, LABEL, OR MARKING publicly displayed to indicate the price of each article
and said products or services shall not be sold at a price higher than that stated
therein and without discrimination to all buyers: Provided, That lumber sold,
displayed or offered for sale to the public shall be tagged or labeled by indicating
thereon the price and the corresponding official name of the wood: Provided, further,
That if consumer products for sale are too small or [the] IF ITS nature [of which]
makes it impractical to place a price tag thereon, A price list placed at the nearest
point where the products are displayed indicating the retail price of the same may
suffice) PROVIDED FINALLY, THAT IF CONSUMER IS PAYING BY CREDIT
CARD, AUTOMATED TELLER MACHINE OR DEBIT CARD, AND SIMILAR
MEANS, IT SHALL BE UNLAWFUL FOR ANY MERCHANDISING STORE OR
SERVICE ESTABLISHMENT TO CHARGE MORE THAN THE ACTUAL CASH
RETAIL PRICE OF THE GOODS AND SERVICES PURCHASED UNLESS
AUTHORIZED IN WRITING BY THE CREDIT CARD COMPANY AND THE
ADDITIONAL RATES ARE REASONABLE AS DETERMINED BY THE
IMPLEMENTING AGENCY.”


Sec. 23. Article 95 of Republic Act No. 7394 is hereby amended to read as follows

“Art. 95. Penalties. a) Any person who shall violate the provisions of Title II,
Chapter IV of this Act, or its implementing rules and regulations, except Articles 81 to
83 of the same Chapter, shall be subject to a fine of not less than [Five hundred
pesos (P500.00)} FIVE THOUSAND PESOS (PHP 5,000) but not more than [Twenty
thousand pesos (P20,000.00)] TWO HUNDRED THOUSAND PESOS (PHP
200,000) or imprisonment of not less than [three (3) months] ONE (1) YEAR but not
more than [two (2) years] FIVE (5) YEARS, or both at the discretion of the court
(;Provided, That, if the consumer product is one which is not a food, cosmetic, drug,
device or hazardous substance, the penalty shall be a fine of not less than Two
hundred pesos (P200.00) but not more than Five thousand pesos (P5,000.00) or
imprisonment of not less than one (1) month but not more than one (1) year or both,
at the discretion of the court. ]

b) Any person who violates the provisions of Article 81 to 83 for the first time shall be
Subject to a fine of not less than [Two hundred pesos (P200.00)] FIFTY THOUSAND
PESOS (PHP 50,000) but not more than (Five thousand pesos (P5,000.00) | ONE
MILLION PESOS (PHP 1,000,000) or by imprisonment of not less than one fone (1)
month] (1) YEAR but not more than (six (6) months] FIVE (5) YEARS, or both at the
discretion of the court. A second conviction under this paragraph shall also carry with
it the penalty of revocation of business permit and license.”

Sec. 24. Article 103 of Republic Act No. 7394 is hereby amended to read as follows:

“Art. 103. Repair Service Obligation. When services are provided for the repair
of any product, the supplier shall be considered implicitly bound to use adequate,
new, original replacement parts, or those that maintain the manufacturer's technical
specifications, unless[,] otherwise authorized, as regards [to] the latter, by the
consumer.

IN PROVIDING SERVICE OR REPAIR AS REQUIRED UNDER THIS ARTICLE,
THE MANUFACTURER, DISTRIBUTOR, AUTHORIZED DEALER OR RETAILER
MUST INFORM THE CONSUMER ABOUT WHICH PARTICULAR PART OR
PARTS OF THE GOODS ARE DAMAGED AND HAVE TO BE REPAIRED. THE
CONSUMER SHALL BE GIVEN THE OPTION TO REPLACE ONLY THE
DAMAGED PART OR PARTS. THE CONSUMER SHOULD NOT BE FORCED TO
REPLACE OTHER PARTS THAT ARE STILL IN GOOD CONDITION ON THE
GROUNDS THAT ALL REPLACEMENT PARTS COME IN ONE SET."

Sec. 25. Article 107 of Republic Act No. 7394 is hereby amended to read as follows:

“Art. 107. Penalties. — Any person who shall violate any provision of this Chapter
or its implementing rules and regulations with respect to any consumer product
which is not food, cosmetic, or hazardous substance shall upon conviction, be
subject to a fine of not less than (Five thousand pesos (P5,000.00)] FIFTY
THOUSAND PESOS (PHP 50,000) BUT NOT MORE THAN ONE MILLION PESOS
(PHP 1,000,000) and by imprisonment of not [more] LESS than one (1) year BUT
MORE THAN FIVE (5) YEARS, or both upon the discretion of the court.’

Sec. 26. Article 110 of Republic Act No. 7394 is hereby amended to read as follows:

“Art. 110. False, Deceptive or Misleading Advertisement. — \t 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, INCLUDING HOME TELEVISION SHOPPING, outdoor
advertisement, THE INTERNET, CYBER SHOPS, SOCIAL NETWORKING SITE,
LANDLINE OR MOBILE PHONE, or other medium for the purpose of inducing or
which is likely to induce directly or indirectly the purchase of consumer products or
services.”

20%

2B


Sec. 27. Article 116 of Republic Act No. 7394 is hereby amended to read as follows:

“Art. 116. Permit to Conduct SALES Promotion. — No person shall conduct
any sales [campaign] PROMOTION, including beauty contest, national in character,
sponsored and promoted by PRODUCERS, RETAILERS, SELLERS,
DISTRIBUTORS, SUPPLIERS, IMPORTERS OR 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]

THE CONCERNED DEPARTMENT SHALL PRESCRIBE THE
REQUIREMENTS FOR THE ISSUANCE OF THE PERMIT, INCLUDING THE
NUMBER OF WORKING DAYS WITHIN WHICH THE DEPARTMENT MUST

APPROVE OR DENY THE APPLICATION. THE SAME APPLICATION FOR

PERMIT SHALL BE DEEMED APPROVED IF THE CONCERNED DEPARTMENT
EXCEEDS THE PRESCRIBED NUMBER OF WORKING DAYS WITHIN WHICH IT

MUST ACT ON THE APPLICATION, AND THE SALES PROMOTION CAMPAIGN
OR ACTIVITY MAY COMMENCE, UNLESS AN OBJECTION OR DENIAL IS
RECEIVED BY THE APPLICANT: Provided, That any sales promotion campaign

using medical prescriptions or any part thereof or attachment thereto for A raffle(s]

‘or_a promise of reward shall not be allowed, nor a permit be issued thereof
PROVIDED FINALLY, THAT THE CONCERNED DEPARTMENT MAY ISSUE
RULES TO REGULATE SALES PROMOTION.

ALL HOLDERS OF SALES PROMOTION PERMITS SHALL PROVIDE TO THE
CONCERNED DEPARTMENT A COPY OF ITS PROMOTIONAL MATERIALS NOT

LATER THAN THE DATE OF PUBLICATION OR RELEASE OF SUCH
PROMOTIONAL MATERIALS, OR LAUNCH DATE OF THE SALES PROMOTION,
WHICHEVER IS EARLIER.”

Sec. 28. Article 123 of Republic Act No. 7394 is hereby amended to read as follows:

“Art. 123. Penalties. a) 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)] FIFTY THOUSAND
PESOS (PHP 50,000) but not more than [Five thousand pesos (P5,000.00)] ONE
MILLION PESOS (PHP 1,000,000) or an imprisonment of not less than [one (1)
month] ONE (1) YEAR but more than six (6) months] FIVE (5) YEARS, or both upon

the discretion of the court.
b) 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 (P2900,00)]
FIFTY THOUSAND PESOS (PHP 50,000) but not more than [Six hundred pesos
(P600.00)] ONE MILLION PESOS (PHP 1,000,000) or an imprisonment of not less
than [one (1) month] ONE (1) YEAR but not more than {six (6) months] FIVE (5)

YEARS, 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.’

Sec. 29. Anew Article 131-A is hereby inserted after Article 131 of Republic Act No, 7394 to

read as follows:
‘ART. 131-A. IMPLEMENTING AGENCY - THE BANGKO SENTRAL NG
PILIPINAS (BSP) SHALL IMPLEMENT AND ENFORCE THE PROVISIONS OF
TITLE IV OF THIS ACT."

Sec. 30. Article 149 of Republic Act No. 7394 is hereby amended to read as follows
“Art 149. Composition. The Council shall be composed of representatives from
the following government agencies and non-government agencies:

14


a) Department of Trade and Industry;
b) Department of Education;
c) Department of Health;
d) Department of Agriculture:
E) DEPARTMENT OF ENERGY,
F) BANGKO SENTRAL NG PILIPINAS;
G) DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES.
{e] H) 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; and
[f]1) two (2) representatives from the business industry/sector to be chosen by
the President from among the nominees submitted by the various business
organizations.

Sec. 31. Article 151 of Republic Act No. 7394 is hereby amended to read as follows:

“Art. 151. Per Diems of Members. The members of the Council shall be entitled

to [an allowance of Five hundred pesos (Php 500.00) per meeting actually attended

but not more than Two thousand pesos (Php 2,000.00)'a month] PER DIEMS IN AN

AMOUNT APPROVED BY THE COUNCIL AND SUBJECT TO EXISTING LAWS,
RULES AND REGULATIONS.”

Sec. 32. Title of Chapter III under Title V of Republic Act No. 7294 is hereby amended to
read as follows:
“CHAPTER Il
CONSUMER COMPLAINTS; SANCTIONS AND PENALTIES”

Sec. 33. Article 164 of Republic Act No, 7394 is hereby amended to read as follows:
“Art. 164. Sanctions — After investigation, any of the following administrative
penalties may be imposed even if not prayed for in the complaint:
XXX
€) the imposition of administrative fines in such amount as deemed reasonable
by the Secretary OF THE CONCERNED DEPARTMENT , which shall in no case be
less than [Five hundred pesos (Php 500.00) nor more than Three thousand pesos
(Php 3,000.00) depending on the gravity of the offense] FIFTY THOUSAND PESOS
(PHP 50,000.00) BUT NOT MORE THAN ONE MILLION PESOS (PHP
1,000,000.00), and an additional fine of not more than One thousand pesos (Php
1,000.00) for each day of continuing violation.”

Sec. 34. Anew Article 168-A is hereby inserted after Article 168 of Republic Act 7394 to read

as follows
Article 168-A. CONGRESSIONAL OVERSIGHT COMMITTEE. - TO OVERSEE THE
IMPLEMENTATION OF REPUBLIC ACT NO. 7394 AND THIS ACT, THERE SHALL BE
CREATED A CONGRESSIONAL OVERSIGHT COMMITTEE ON CONSUMER
PROTECTION AND WELFARE (COCCPW), TO BE COMPOSED OF THE
CHAIRPERSONS OF THE SENATE COMMITTEES ON TRADE AND COMMERCE,
HEALTH AND DEMOGRAPHY, AGRICULTURE, AND _ FINANCE; THE
CHAIRPERSONS OF THE HOUSE OF REPRESENTATIVES COMMITTEES ON TRADE
AND INDUSTRY, HEALTH, AGRICULTURE AND FOOD, AND APPROPRIATIONS; AND
TWO MEMBERS EACH FROM THE SENATE AND THE HOUSE OF
REPRESENTATIVES WHO SHALL BE DESIGNATED BY THE SENATE PRESIDENT
AND THE SPEAKER OF THE HOUSE OF REPRESENTATIVES: PROVIDED, THAT
ONE OF THE TWO SENATORS AND ONE OF THE TWO HOUSE MEMBERS SHALL
BE NOMINATED BY THE RESPECTIVE MINORITY LEADERS OF THE SENATE AND
THE HOUSE OF REPRESENTATIVES. THE CONGRESSIONAL OVERSIGHT
COMMITTEE SHALL BE JOINTLY CHAIRED BY THE CHAIRPERSONS OF THE

15


SENATE COMMITTEE ON TRADE AND COMMERCE AND THE HOUSE OF
REPRESENTATIVES COMMITTEE ON TRADE AND INDUSTRY. THE POSITION OF
VICE-CHAIRPERSON OF THE CONGRESSIONAL OVERSIGHT COMMITTEE SHALL
BE JOINTLY HELD BY THE CHAIRPERSONS OF THE SENATE COMMITTEE ON
HEALTH AND DEMOGRAPHY AND THE HOUSE OF REPRESENTATIVES
COMMITTEE ON HEALTH. THE SECRETARIAT OF THE CONGRESSIONAL
OVERSIGHT COMMITTEE ON CONSUMER PROTECTION AND WELFARE SHALL BE
DRAWN FROM THE EXISTING PERSONNEL OF THE SENATE AND HOUSE OF
REPRESENTATIVES COMMITTEES COMPRISING THE CONGRESSIONAL
OVERSIGHT COMMITTEE.

Sec. 35. Separability Clause. If any part or parts of this Act should, for any reason, be
declared invalid or unconstitutional, the part or parts thereof unaffected shall thereby continue
to remain in full force and effect

Sec. 36. Repealing Clause. - All laws, decrees, executive order, rules and regulations and
other issuances consistent with this Act is hereby repealed or amended accordingly

Sec. 37. Effectivity. - This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation

Approved,

16