Republic of the Philippines
House of Representatives
Quezon City
‘Thirteenth Congress

.- First Regula Session

HOUSE BILLNO.___125

Introduced by Representative JOEY SARTE SALCEDA

EXPLANATORY NOTE

‘The Consumer Act of the Philippines (R.A. 7394) ercated the National Consumer Affairs Council
(NCAC) to advance the interest of consumers. It brought together the DTI, DA. DOH. DeptEd, NGOs,
consumer advocates and business leaders to develop a coherent strategy of programs and scrvices for consumer
welfare

The Council 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 works on consumer education and information
campaign.

However, by being an attached office of the DTI ~ one of the agencies it is supposed to monitor ~
NCAC's effective performance of the above functions is being affected. At the moment, NCAC is dependent on
DTI in terms of preparing and allocating its budget for the Council's various activities and programs

To remedy the above situation, this bill sccks to make NCAC a truly independent body’ as intended by
law. By placing in under the Office of the President. it shall have the power to (1) prepare its annual budget for
submission to the DBM, (2) create other positions as may be necessary in furtherance of its mandate, and (3)
assume the authority to represent consumers in their claims and complaints involving violations of the
Consumer Act.

This bill also sccks to include Bangko Sentral ng Pilipinas (BSP) as one of the implementing agencies
of the Act ~‘an agency whose participation is of crucial importance on matters affecting consumer credit
transactions

Likewise, this refines the composition of the Council to include representatives of the Department of
Interior and Local Government (DILG) and the Philippine Information Agency (PIA) because of their important
role in furthering consumer protection.

In view of the foregoing, the immediate approvab-of-this bill is earnest

'Y SARTE SALCEDA



Republic of the Philippines
House of Representatives
Quezon City
Thirteenth Congress

First Regular Session

House Bitt No, 2.25

Introduced by Representative JOEY SARTE SALCEDA

AN ACT
TO FURTHER STRENGTHEN CONSUMER PROTECTION BY AMENDING FOR THIS
PURPOSE CERTAIN PROVISIONS OF REPUBLIC ACT NO. 7394, OTHERWISE
KNOWN AS THE CONSUMER ACT OF THE PIALIPPINES:

Be it enacted by the Senate and the House of Represematives of the Philippines in Congress
assembled:

SECTION |. Article 6 of Republic Act No. 7394 is hereby amended to read as follows:
“Art. 6. Implementing Agencies. - The provisions of this Article and its implementing rules
and regulations shall be enforced by:
(a) The Department of Health with respect to food, drugs, cosmetics, devices and substances,
(b) The Department of Agriculture with respect to products related to agriculture,
(c) The Department of Trade and Industry with respect to other consumer products not
-- specified above, and —_
(4) THE BANGKO SENTRAL NG PILIPINAS, WITH RESPECT TO CONSUMER
CREDIT TRANSACTIONS.”

Section 2. Article 8 of Republic Act No. 7394 is hereby amended to read as follows:

“Art. 8. Publication of Consumer Products Standards. - The concerned department shall, upon
promulgation of the above standards, publish or cause the publication of the same in two (2)
newspapers of general circulation of at least once a week for a period of now less than one (1) month:
PROVIDED, HOWEVER, THAT CONSUMER PRODUCTS STANDARDS THAT ARE
VOLUMINOUS AND WHICH WILL ENTAIL UNREASONABLY HUGE PUBLICATION



EXPENSES NEED NOT BE PUBLISHED IN ITS FULL TEXT BUT MAYBE 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, businesses,

industries and other sectors concerned."

Section 3. Article 148 of Republic Act No. 7394 is hereby amended to read as follows:

"Art, 148, The 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.”

Section 4. Article 149 of Republic Act No, 7394 is hereby amended, by adding letters E and F,
and changing letters (e) to G and (f) to H, to read as follows:

"Art, 149. Composition. - The Council shall be composed of representatives from the
following government agencies and non-government agencies:

(a) Department of Trade and Industry,

(b) DEPARTMENT OF EDUCATION

(c) Department of Health,

(d) Department of Agriculture,

(E) DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMEN

(F) PHILIPPINE INFORMATION AGENCY;

(G)[e] four (4) representatives from consumer organizations of nationwide base to be chosen

by the President among the nominees submitted by various consumer groups in the
Philippines;
(H)[f] Two (2) representatives from the business industry/sector to be chosen by the President
from among the nominees submitted by various business organizations.
PROVIDED THAT IN AGENCIES DIRECTLY IMPLEMENTING THE ACT, NO
GOVERNMENT OFFICIAL LOWER THAN THE RANK OF AN ASSISTANT SECRETARY
SHALL SIT IN THE COUNCIL."



Section 5. Article 152 of Republic Act No, 7394 is hereby amended to read as follows

"Art, 152. The Executive Director. - The Council shall appoint an Executive Director who
shall assist: the Chairman and act as Secretary of the Council. THE EXECUTIVE DIRECTOR
SHALL BE ASSISTED BY SUCH NUMBER OF PERSONNEL AS HE MAY DEEM
NECESSARY FOR THE EFFECTIVE PERFORMANCE OF HIS/HER FUNCTIONS."

Section 6. Article 153 of Republic Act No, 7394 is hereby amended to read as follows

"Art. 153. Powers and Functions. - The Council shall have the following powers and
functions:

XXX XXX XXX
(¢) to undertake a continuing education and information campaign to provide the consumer
with among others; _
1) facts about consumer products and services,
2) consumer rights and the mechanism for redress available to him;
3) information on new concepts and developments on consumer protection;
4) general knowledge and awareness necessary for a critical and better judgement on
consumption; and

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such other matters of importance to the consumer's general well-being

(F) TO APPROVE FOR SUBMISSION TO THE DEPARTMENT OF BUDGET AND
MANAGEMENT THE ANNUAL BUDGET OF THE COUNCIL:

(G)TO PROMULGATE SUCH RULES AND REGULATIONS AS MAY BE
ESSENTIAL AND NECESSARY TO ATTAIN THE OBJECTIVES AND PURPOSE
OF THIS ACT:

(H)TO CREATE ADDITIONAL POSITIONS, BOTH IN THE CENTRAL AND
REGIONAL OFFICES, INCLUDING BUT NOT LIMITED TO HIRING OF
CONSULTANTS, AS MAY BE NECESSARY TO CARRY OUT EFFECTIVELY
AND EFFICIENTLY ITS 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,

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INSTRUMENTALITIES OR POLITICAL SUBDIVISIONS, AND THE SAME
SHALL BE FULLY DEDUCTIBLE FROM THE GROSS INCOME OF THE
DONOR OR GRANT FOR INCOME TAX PURPOSES;

(J) TO PROVIDE FREE LEGAL REPRESENTATION, SUBJECT TO GUIDELINES
THE COUNCIL MAY APPROVE, TO CONSUMERS WITH MERITORIOUS
COMPLAINTS; AND —.

(K)GENERALLY, TO UNDERTAKE SUCH OTHER FUNCTIONS AND DUTIES AS
MAY BE NECESSARY TO CARRY OUT THE OBJECTIVES AND PURPOSE OF
THIS ACT,

Section 7. Separability Clause. ~ Any portions or provisions of this Act that may be declared

unconstitutional or invalid shall not have the effect of nullifying other portions and provisions hereof

as long as such remaining portion or provisions can

ill subsist and be given effect in their entirety.
Section 8. Repealing Clause. - All laws, decrees, executive orders, proclamations and
administrative regulations, or parts thereof inconsistent herewith are hereby repealed or modified

accordingly

Section 9. Effectivity Clause. - This Act shatttake effect fifteen (15) days after its publication
in at least two (2) national papers of general circulation.

Approved,