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THIRTEENTH CONGRESS OF THE REPUBLI 
First Regular Session 
OF THE PHILIPPINES 
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S E N A T  
S. No. 
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Introduced by Senator S. R. OsmeAa III 
EXPLANATORY NOTE 
The 1987 Constitution mandates that “the state shall protect consumers 
from trade malpractices and from substandard and hazardous products.” 
Consistent with such mandate, consumerists had successfully pushed for 
the passage of the Consumer Act of the Philippines in 1992. The Code 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, DECS, NGOs, consumer 
advocates and business leaders to develop a coherent program for consumer 
welfare. 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 circumscribed. It has become dependent on the DTI 
in terms of budgetary allocation for its activities and programs. 
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. 
In view of the foregoing, immediate approval of this bill is earnestly sought. 
SERGIQ QSMENA 111 
Senator 


THIRTEENTH CONGRESS OF THE REPUBLI 
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724 JUid 30 P3 :29 
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OF THE PHILIPPINES 
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First Regular Session 
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S E N A T  
S. No. 
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Introduced by Senator S. R. OsmeAa 111 
AN ACT 
TO FURTHER STRENGTHEN CONSUMER PROTECTION, AMENDING FOR 
THIS PURPOSE CERTAIN PROVISIONS 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 House of Representatives of the Philippines in 
Congress assembled: 
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SECTION I. - Article 6 of Republic Act No. 7394, otherwise known as 
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the Consumer Act of the Philippines, is hereby amended to read as follows: 
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“ARTILCE 6. Implementing Agencies. - The provisions of this 
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Article and its implementing rules and regulations shall be enforced by: 
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a) 
the Department of Health with respect to food, drugs, 
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cosmetics, devices and substances; 
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b) 
the Department of Agriculture with respect to products 
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related to agriculture [, and]; 
c) 
the Department of Trade and Industry with respect to other 
consumer products not specified above, AND 
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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 standaids,‘ 
publish or cause the publication of the same in two (2) newspapers of 
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general circulation at least once a week for a period of not less than one 
(I) 
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 HOW AND WHERE 
COPIES OF THE FULL TEXT THEREOF MAY BE OBTAINED. It may 
likewise conduct an information campaign through other means deemed 
effective to ensure the proper guidance of consumers, business, industries 
and other sectors concerned.” 
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SEC. 3. - Article 148 of the same law is hereby amended to-read as 
follows: 
“ARTICLE 148. National Consumer Affairs Council. - To improve 
the management, coordination and effectiveness of consumer programs, a 
National Consumer Affairs Council is hereby created, hereinafter referred 
to as the “Council” 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. - The Council shall be composed of 
representatives from the following government agencies and non- 
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government agencies: 
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a) Department of Trade and Industry; 
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b) Department of Education, Culture and Sports; 
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c) Department of Health; 
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d) Department of Agriculture; 
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e) DEPARTMENT OF INTERIOR AND LOCAL GOVERNMENT, 
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f) PHILIPPINE INFORMATION AGENCY 
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[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; 
[f) (H) two (2) representatives from business/industry 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] EXECUTIVE 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 BE ASSISTED BY SUCH NUMBER OF PERSONNEL AS HE 
MAY DEEM NECESSARY FOR THE EFFECTIVE PERFORMANCE OF 
HIS FUNCTIONS.” 
SEC. 6. - Article 153 of the same law is hereby amended to read as 
follows: 
“ARTICLE 153. Powers and Functions. - The Council shall have 
the following powers and functions: 
x x x  
e) 
to undertake a continuing education and information 
campaign to provide the consumer with, among others; 
1) 
facts about consumer products and services; 
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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; 
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such other matters of importance to the consumer’s general 
w el I- bei ng [ .] 
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 CREAT ADDITIONAL POSITIONS, BOTH IN THE 
CENTRAL AND REGIONAL OFFICES, INCLUDING BUT NOT LIMITED 
TO HIRING CONSULTANTS, AS MAY BE NECESSARY TO CARSRY. 
OUT EFFECITVELY AND EFFICIENTLY TIS FUNCTIONS AND DUTIES; 
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 BEQUESTS 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) GENERALLYl TO UNDERTAKE SUCH OTHER FUNCTIONS 
AS MAY BE NECESSARY TO CARRY OUT THE OBJECTIVES AND 
PURPOSES OF THIS ACT. 
SEC. 7. Separability Clause. - In the 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 Clause. - This Act shall take effect fifteen (15) days 
after the completion of its publication in at least two (2) newspapers of general 
circulation. 
Approved , 
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