SEVENTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
F irst R egular Session
SENATE
S.B. No. 
1241
#:. 9 ..
.^fuatr
of (Ilf
'16 NOV 16 P3 :40
HI
■/
In tro d u c e d  by: S enator Paolo Benigno "B am " A. A q uin o IV
AN ACT
GRANTING BROADER PROTECTION FOR CONSUMERS ADDING NEW PROVSIONS 
AND AMENDING CERTAIN PROVISIONS FOR THE PURPOSE REPUBLIC ACT NO. 
7394, OTHERWISE KNOWN AS THE CONSUMER ACT OF THE PHILIPPINES
EXPLANATORY NOTE
One of the key manifestations of the country's development in the last half-decade 
is the maturity of industries and its growing consumer base. Consumers have driven growth 
and produced the necessary forces that lead to innovation and progress. Moreover, 
business leaders recognize their customers' vital importance to their sustainability and 
profitability.
In order to build stronger commercial systems and maintain thriving markets, there 
is a need to bolster the rights of consumers -  and we need to do this at the soonest possible 
time. Thus, this measure aims to update and amend the 1992 Consumer Act of the 
Philippines in order to address the current issues of consumers and markets today.
In this enhanced version of the Consumer Act, we recognize the basic rights and 
responsibilities of consumers, based on the United Nations Guidelines for Consumer 
Protection. We also propose revisions to the current law to take into account the growing 
role of Information and Communication Technologies in the types of products, services and 
the ways these are now promoted and advertised in the market. We seek to provide greater 
protection to consumers particularly from false and deceptive advertising using mobile 
phones and the internet. Proposed provisions in this measure also aim to better protect 
consumers from dangerous and unsafe products and abusive sales practices.
Anticipating the looming influx of products and services from around the region due 
to the ASEAN integration, the proposed measures makes inclusion of English or Filipino 
translation on product labels written in foreign character/languages mandatory as part of 
labeling and packaging requirements.
The proposed Enhanced Consumer Act further seeks to address unnecessary 
constraints for small businesses, including e-commerce businesses, in order to enable them


to offer more affordable and broader options to consumers, without sacrificing the quality 
of products and services.
Finally, the National Consumer Affairs Council is expanded and strengthened to 
make the body more effective in pushing for consumer programs and policies in 
government. Administrative penalties for violations of provisions of this Act are also 
increased to more effectively address consumer complaints.
With the Enhanced Consumer Protection Act, we seek to strengthen consumer rights 
and responsibilities not only to produce smarter and more strategic buyers, but also push 
sellers to improve products and services to better cater to the public and better compete 
within the marketplace.
In view of the foregoing, the approval of this bill is earnestly sought.
Senator'Paolo Benigno
Bam" A. Aquino IV


SEVENTEENTH CONGRESS OF THE REPUBLIC 
)
OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
S.B. No. 1241
'.■■ir ( S l h f t  of
'16 NOV 16 
P3 :40
in .
Y:
Introduced by: Senator Paolo Benigno "Bam" A. Aquino IV
AN ACT
GRANTING BROADER PROTECTION FOR CONSUMERS ADDING NEW PROVSIONS AND 
AMENDING CERTAIN PROVISIONS FOR THE PURPOSE REPUBLIC ACT NO. 7394, 
OTHERWISE KNOWN AS THE CONSUMER ACT OF THE PHILIPPINES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
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SECTION 1. Article 1 of Republic Act No. 7394 is hereby amended to read as follows:
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"Art. 1. Short Title. -  This Act shall be known as the "REVISED Consumer Act of the 
Philippines.""
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SECTION 2. Article 2 of the same Act is hereby amended to read as follows:
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"Art. 2. Declaration of Policy. -  It is the policy of the State to protect the interests of
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the consumer, promote his general welfare and to establish standards of conduct
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for business and industry. THE STATE RECOGNIZES THAT CONSUMERS OFTEN FACE
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IMBALANCES IN ECONOMIC STATUS, EDUCATIONAL LEVELS AND BARGAINING
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POWER. IT FURTHER RECOGNIZES THAT CONSUMERS SHOULD HAVE THE RIGHT OF
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ACCESS TO NON-HAZARDOUS PRODUCTS, AS WELL AS THE RIGHT TO A JUST,
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EQUITABLE AND SUSTAINABLE ECONOMIC AND SOCIAL DEVELOPMENT AND
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ENVIRONMENTAL PROTECTION. 
Towards this end, the State shall implement
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measures to attain the following objectives:
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A) TO PROVIDE ADEQUATE PROTECTION FOR THE POPULATION AS CONSUMERS;
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B) TO FACILITATE PRODUCTION AND DISTRIBUTION PATTERNS RESPONSIVE TO THE
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NEEDS AND DESIRES OF CONSUMERS;
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C) TO INSTILL THE VALUE OF ETHICAL CONDUCT AMONG THOSE ENGAGED IN THE
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PRODUCTION AND DISTRIBUTION OF GOODS AND SERVICES TO CONSUMERS;
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D) TO CURB ABUSIVE BUSINESS PRACTICES BY ALL ENTERPRISES WHICH MAY
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ADVERSELY AFFECT CONSUMERS;
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E) TO ENCOURAGE AND ENSURE THE REPRESENTATION AND ACTIVE INVOLVEMENT
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OF VARIOUS STAKEHOLDERS AND THE PUBLIC AT LARGE IN THE FORMULATION


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OF BOTH SOCIAL AND ECONOMIC POLICIES THAT AY AFFECT THE INTERESTS OF
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CONSUMERS;
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F) TO FACILITATE THE DEVELOPMENT AND STRENGTHENING OF INDEPENDENT
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CONSUMER GROUPS;
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G) TO FOSTER LINKAGES, PARTNERSHIPS AND INTERNATIONAL COOPERATION IN
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THE FIELD OF CONSUMER PROTECTION;
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H) TO ENCOURAGE THE DEVELOPMENT OF MARKET CONDITIONS WHICH PROVIDE
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CONSUMERS WITH GREATER CHOICE AT LOWER PRICES; AND
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I) TO PROMOTE SUSTAINABLE CONSUMPTION."
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[a) Protection against hazards to health 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.]
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SECTION 3. A new Article denominated as Article 3 is hereby inserted to read as follows:
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"ART. 3. CONSUMER RIGHTS -THE CONSUMER RIGHTS ARE:
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A) RIGHT TO BASIC NEEDS -  THE CONSUMER SHALL HAVE ACCESS TO FOOD, 
CLOTHING, SHELTER, HEALTH CARE, EDUCATION AND SANITATION REGARDLESS OF 
ECONOMIC STATUS.
B) RIGHT TO SAFETY -  THE CONSUMER SHALL BE ENTITILED TO PROTECTION 
AGAINST THE MARKETING OF GOODS OR PROVISION OF SERVICES THAT ARE 
HAZARDOUS TO HEALTH AND LIFE, AND DAMAGING TO PROPERTY;
C) RIGHT TO CHOOSE -  THE CONSUMER SHALL BE ABLE TO FREELY CHOOSE FROM A 
VARIETY OF OPTIONS, INCLUDING PRODUCTS, SERVICES, CREDIT AND TECHNOLOGY, 
AT COMPETITIVE PRICES WITH AN ASSURANCE OF SATISFACTORY QUALITY.
D) RIGHT TO REPRESENTATION -  THE CONSUMER SHALL BE ENTITLED TO EXPRESS 
CONSUMER INTERESTS AND BE INVOLVED IN THE MAKING AND EXECUTION OF 
GOVERNMENT POLICIES.
E) RIGHT TO REDRESS -  THE CONSUMER SHALL HAVE ACCESS TO THE APPROPRIATE 
REMEDIES FOR MISREPRESENTATION, SUBSTANDARD OR DEFECTIVE GOODS AND 
IMPERFECT AND/OR UNSATISFACTORY SERVICES.
F) RIGHT TO CONSUMER EDUCATION -  THE CONSUMER SHALL HAVE ACCESS TO 
KNOWLEDGE AND SKILLS NECESSARY TO MAKE AN INFORMED CHOICE.
G) 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.
H) RIGHT TO A HEALTHY ENVIRONMENT. -  THE CONSUMER SHALL HAVE ACCESS TO 
LIVE AND WORK IN AN ENVIRONMENT WHICH IS NEITHER THREATENING NOR 
DANGEROUS AND WHICH PERMITS A LIFE OF DIGNITY AND WELL-BEING."
I) RIGHT TO INFORMATION -  THE CONSUMER SHALL HAVE ACCESS TO PROTECTION 
AGAINST DISHONEST OR MISLEADING ADVERTISING OR LABELING AND SHOULD BE


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PROVIDED WITH THE FACTS AND INFORMATION NEEDED TO MAKE AN INFORMED 
CHOICE."
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SECTION. 4. A new Article denominated as Article 4 is hereby inserted to read as follows:
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"ART. 4. CONSUMER RESPONSIBILITIES. -  THE CONSUMER RESPONSIBILITIES ARE:
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A) CRITICAL AWARENESS -  THE CONSUMER SHALL BE 
ALERT AND
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INQUISITIVE ABOUT THE QUALITY, PRICE AND USE OF GOODS AND SERVICES;
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B) ACTION -  THE CONSUMER SHALL ASSERT AND ACT TO ENSURE THAT
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HE/SHE WILL ALWAYS GET A FAIR DEAL TAKING INTO CONSIDERATION THAT
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AS LONG AS A CONSUMER REMAINS PASSIVE, CONSUMERS WILL CONTINUE
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TO BE EXPLOITED;
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C) SOCIAL CONCERN -  THE CONSUMER SHALL 
BE MORE AWARE 
OF THE
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IMPACT OF 
ONE'S CONSUMPTION 
ON OTHER 
CITIZENS, ESPECIALLY
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DISADVANTAGED OR POWERLESS GROUPS, WHETHER IN THE LOCAL,
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NATIONAL, OR INTERNATIONAL COMMUNITY;
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D) ENVIRONMENTAL AWARENESS -  THE CONSUMER SHALL BE MORE AWARE
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OF THE ENVIRONMENTAL CONSEQUENCES OF ONE'S CONSUMPTION. THE
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CONSUMER SHOULD RECOGNIZE INDIVIDUAL AND SOCIAL RESPONSIBILITY
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TO CONSERVE NATURAL RESOURCES AND PROTECT THE EARTH FOR FUTURE
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GENERATIONS; AND
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E) SOLIDARITY -  CONSUMERS SHALL ORGANIZE INTO AN ASSOCIATION TO
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DEVELOP THEIR STRENGTH AND INFLUENCE IN THE PROMOTION AND
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PROTECTION OF THEIR INTERESTS."
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SECTION. 5. Article 4 of the same Act is hereby amended to read as follows:
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"ART. [4] 6. Definition of Terms. -  For purposes of this Act, the term:
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a) 
"Advertisement" means A FORM OF COMMUNICATION AND/OR 
ANY PAID ANNOUNCEMENT OR PUBLIC NOTICE ABOUT CONSUMER 
PRODUCTS, SERVICES, CREDIT, OR TECHNOLOGY ESPECIALLY IN PRINT, BY 
BROADCAST, AND USING ANY OTHER MEDIA INTENDED TO PERSUADE AN 
AUDIENCE OR THE PUBLIC AT LARGE TO PURCHASE OR TAKE SOME 
ACTIONS, 
[the prepared and through any form of mass medium, 
subsequently applied, disseminated or circulated advertising m a tte r].
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XXX
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h) "Batch" means a quantity of any [drug or device] PRODUCT OR 
GOOD 
produced 
during 
a 
given 
cycle 
of 
manufactur[e]ING 
OR 
PROCESSING.
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XXX
XXX
XXX
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k) "Chain distribution plans" or "pyramid sales schemes" means sales 
[devices] MECHANISMS whereby a person, upon condition that he makes


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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] 
DIRECTLY 
from 
the 
recruitfmentj'S 
INVESTMENT 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 does not change the nature of 
the plan.
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XXX
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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.
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XXX
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q) "Consumer products and services" means 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.
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w) "Credit card" means any card for USE UPON PRESENTATION TO PAY 
FOR CONSUMER PRODUCTS AND SERVICES [means any card, plate, 
coupon book or other credit device existing for the purpose of 
obtaining money, property, labor or services on credit].
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XXX
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at) "Mass media" refers to any means or methods used to convey 
advertising messages to the public such as television, radio, INTERNET, 
MOBILE PHONES AND SIMILAR ELECTRONIC DEVICES, magazines, cinema, 
billboards, posters, streamers, hand bills, leaflets, mails and the like.
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bm) 
"Sales Promotion" means techniques intended for broad 
consumer participation which contain promises of gain such as prizes, in 
cash or in kind, as reward for the purchase of a product, security, service 
or winning in contest, game, tournament and other similar competitions 
which involve determination of winner/s and which utilize mass media or


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other widespread media of information. It also means techniques purely 
intended to increase the sales, patronage and/or goodwill of a product.
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bn) 
"Seller" means a person engaged in the business of selling 
consumer products AND 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.
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br) 
"Standard" means a set of conditions to be fulfilled to ensure the 
quality and safety of a product AND SERVICE;
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SECTION 6. Article 6 of the same Act is hereby amended to read as follows:
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"ART. [6] 8. Implementing Agencies. -  The provisions of this Article and its implementing
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rules and regulations shall be enforced by:
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a) the Department of Health with respect to food, drugs, cosmetics, devices and
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substances;
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b) the Department of Agriculture with respect to products related to agriculture AND
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FISHERY, (and;]
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C) THE DEPARTMENT OF ENERGY WITH RESPECT TO FUEL AND PETROLEUM PRODUCTS;
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D) THE DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES WITH RESPECT TO
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ENVIRONMENTAL CONCERNS;
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E) THE DEPARTMENT OF INFORMATION AND COMMUNICATIONS TECHNOLOGY FOR
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PRODUCTS AND SERVICES AVAILABLE ONLINE; AND
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F) the Department of Trade and Industry with respect to other consumer products not
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specified above."
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SECTION 7. Article 8 of the same Act is hereby amended to read as follows:
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"ART. [8] 10 Publications of Consumer Product Standards. -  The concerned
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departments shall, upon promulgation of the above standards, publish or cause the
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publication of the same in two (2) newspapers of general circulation at least once a
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week for a period of not less than one (1) month 
AND IN THE OFFICIAL GAZETTE. IT
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MAY ALSO BE PUBLISHED IN THE DEPARTMENT'S/AGENCY'S OFFICIAL WEB PORTAL.
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It may likewise conduct an information campaign through other means deemed
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effective to ensure the proper guidance of consumers, businesses, industries and
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other sectors concerned."


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SECTION 8. Article 10 of the same Act is hereby amended to read as follows:
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"ART. [10] 12. Injurious, Dangerous and Unsafe Products. - Whenever the
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departments find, by their own initiative or by petition of a consumer, that a
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consumer product is found to be injurious, unsafe or dangerous, it shall, after due
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notice and hearing, make the appropriate order for its recall, prohibition or seizure
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from public sale or distribution: Provided, That, in the sound discretion of the
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department it may declare a consumer product to be imminently injurious, unsafe
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or dangerous, and order is immediate recall, ban or seizure from public sale or
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distribution, in which case, the seller, distributor, manufacturer or producer thereof
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shall be afforded a hearing within forty-eight (48) hours from such order: PROVIDED,
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FURTHER, THAT ANY ESTABLISHMENT CAUGHT IN THE ACT OF 
SELLING,
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DISTRIBUTING, MANUFACTURING, PRODUCING, DISPLAY OR IMPORTATION OF
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SUBSTANDARD 
AND 
HAZARDOUS 
PRODUCTS 
SHALL 
AUTHORIZE 
THE
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IMPLEMENTING AGENCIES TO CLOSE AND SHUT DOWN THE BUSINESS PREMISES.
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The ban on the sale and distribution of a consumer product adjudged injurious,
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unsafe or dangerous, or imminently injurious, unsafe or dangerous under the
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preceding paragraph shall stay in force until such time that its safety can be assured
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or measures to ensure its safety have been established."
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SECTION 9. Article 11 of the same Act is hereby amended to read as follows:
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"ART. [11] 13. Amendment and Revocation of Declaration of the Injurious, Unsafe 
or Dangerous Character of a Consumer Product OR SERVICE. -  Any interested 
person may petition the appropriate department to commence a proceeding for 
the issuance of an amendment or revocation of a consumer product OR SERVICE 
safety rule or an order declaring a consumer product OR SERVICE injurious, 
dangerous and unsafe.
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In case the department, upon petition by an interested party or its own initiative 
and after due notice and hearing, determines a consumer product OR SERVICE to 
be substandard or materially defective, OR DEFICIENT IN THE CASE OF A SERVICE, 
it shall so notify the PRODUCT manufacturer, distributor or seller, OR SERVICE 
PROVIDER [thereof of such finding and order such manufacturer, distributor or 
seller] to RECTIFY WITHOUT DELAY:
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a) 
ISSUE PRODUCT RECALL AND/OR SERVICE SUSPENSION AND give notice 
to the public of the defect or failure to comply with the product safety 
standards; [and]
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b) 
Give notice to each distributor or SELLER [retailer] of such product OR 
SERVICE; AND
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c) 
GIVE NOTICE TO EVERY PERSON TO WHOM SUCH CONSUMER PRODUCT 
WAS DELIVERED OR SOLD OR SERVICE REDERED OR GIVEN."


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The department shall also direct the manufacturer, distributor or seller of such 
product OR SERVICE PROVIDER to extend WITHIN REASONABLE TIME any or all of 
the following remedies to the injured person:
a) To bring such product OR SERVICE into conformity with the requirements of 
the applicable consumer product OR SERVICE standards or to repair the 
defect OR CORRECT THE SERVICE DEFICIENCY in order to conform with the 
same;
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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;
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c) To refund the purchase price of the product less a reasonable allowance for 
use OR IN THE CASE OF SERVICE REFUND LESS THE FEE PAID FOR THE 
SERVICE; and
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d) To pay the consumer reasonable damages as may be determined by the 
department.
The PRODUCT manufacturer, distributor or seller OR SERVICE PROVIDER shall not 
charge a consumer who avails himself of the remedy as provided above of any 
expense and cost that may be incurred."
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SECTION 10. Article 52 of the same Act is hereby amended to read as follows:
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"ART. [52] 54. Unfair or Unconscionable Sales Act or Practice. -  An unfair or
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unconscionable sales act 
or practice by a seller or supplier in connection with a
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consumer transaction violates this Chapter whether it occurs before, during or after the
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consumer transaction. An act or practice shall be deemed unfair or unconscionable
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whenever 
the producer, 
manufacturer, distributor, supplier or seller, by taking
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advantage of the consumer's physical or mental infirmity, ignorance illiteracy, lack of
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time or the general conditions of the environment or surroundings, induces the
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consumer to enter into a sales or lease transaction inimical to the interests of the
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producer, manufacturer, distributor, supplier or seller.
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In determining, whether an act or practice is unfair and unconscionable, the following
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circumstances shall be considered:
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a) that the producer, manufacturer, distributor, supplier or seller took advantage of
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the inability of the consumer to reasonably protect his interest because of
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inability to understand the language of an agreement, or similar factors;
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b) that when the consumer transaction was entered into, the price grossly
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exceeded the price at which similar products or services were readily obtainable
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in similar transaction by like consumers;


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c) that when the consumer transaction was entered into the consumer was unable 
to receive a substantial benefit from the subject of transaction;
d) that when the consumer transaction was entered into, the seller or supplier was 
aware that there was no reasonable probability or payment of the obligation in 
full by the consumer;
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 BUT NOT 
LIMITED TO:
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1) THAT WHEN THE CONSUMER TRANSACTION WAS ENTERED INTO, 
THE SELLER OR SUPPLIER IMPOSES 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
2) 
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/HER OR IS LIKELY TO CAUSE HIM/HER TO ENTER INTO A 
CONSUMER TRANSACTION DIFFERENT FROM THE ONE HE/SHE 
WOULD HAVE INTENDED, OR HE/SHE WOULD NOT HAVE DONE 
OTHERWISE."
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SECTION 11. Article 62 of the same Act is hereby amended to read as follows:
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"ART. [62] 64. Sealing and Testing of Instruments of Weights and Measure. -  All 
instruments for determining weights and measures in all consumer and consumer 
related transactions shall be tested, calibrated and sealed every six (6) months by 
the official sealer who shall be the Provincial or City or Municipal Treasurer or his 
authorized 
representative 
SUCH 
AS 
THE 
DULY 
DESIGNATED 
MARKET 
ADMINISTRATOR IN THE SAID LOCALITY upon payment of fees required under 
existing law: Provided, That all instruments of weights and measures shall 
continuously be inspected for compliance with the provisions of this Chapter.
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THE SAFEKEEPING AND MAINTENANCE OF SAID INSTRUMENTS SHALL BE UNDER 
THE CONTROL AND SUPERVISION OF THE MARKET SUPERVISOR CONCERNED WHO 
SHALL LIKEWISE BE IN CHARGE OF KEEPING A RECORD OF EVERY PRODUCT FOUND 
TO BE WANTING OF A QUANTITY OR A SUBSTANDARD IN DIMENSION AS WELL AS 
THE CIRCUMSTANCES SURROUNDING THE SALE THEREOF, INCLUDING BUT NOT 
LIMITED TO, THE NAME OF THE BUYER, THE PRICE PAID, AND THE ESTABLISHMENT 
WHERE THE SAME WAS BOUGHT INCLUDING THE NAME OF THE PROPRIETOR OR 
MANAGER THEREOF.


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A CERTIFICATION DULY ISSUED BY THE MARKET ADMINISTRATOR SUPERVISOR OR 
HIS/HER AUTHORIZED REPRESENTATIVE REFLECTING THE CONTENTS OF SUCH 
RECORD SHALL SERVE AS A PRIMA FACIE EVIDENCE OF VIOLATION OF THE 
PROHIBITED ACTS AS PROVIDED HEREIN.
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SECTION 12. Article 68 of the same Act is hereby amended to read as follows:
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"ART. [68] 70. Additional Provisions on Warranties. -  In addition to the Civil Code
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provisions on sale with warranties, the following provisions shall govern the sale of
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consumer products with warranty:
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(f) Breach of warranties. -
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(3) MANUFACTURERS OR DISTRIBUTORS MUST MAINTAIN CONSUMER 
HOTLINES OR SERVICE CENTERS THAT CONSUMERS CAN EASILY REACH FOR 
COMPLAINTS AND INQUIRIES BY PHONE, EMAIL, OR OTHER EFFECTIVE 
MEANS. 
CONSUMERS 
MUST 
NOT 
BE 
MADE 
TO 
SUFFER 
GREAT 
INCONVENIENCES IN CONTACTING MANUFACTURERS TO CLAIM WARRANTIES 
AND OTHER NEEDED SERVICES."
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SECTION 13. A new Article denominated as Article 80 is hereby inserted to read as follows:
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"ART. 80. ENGLISH OR FILIPINO TRANSLATION OF PRODUCT LABELS WRITTEN IN
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FOREIGN CHARACTERS/LANGUAGES. -  CONSUMER PRODUCTS WITH PRODUCT
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LABELS WRITTEN IN FOREIGN CHARACTERS/LANGUAGE SHALL BE ALLOWED ENTRY
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INTO THE COUNTRY AND INTRODUCED INTO COMMERCE PROVIDED THEY HAVE A
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CORRESPONDING ENGLISH OR FILIPINO TRANSLATION TO ENABLE THE AUTHORITIES
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TO DETERMINE WHETHER THE PRODUCT HAS COMPLIED WITH ALL THE OTHER
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LABELING REQUIREMENTS AS WELL AS PRQVIDE THE CQNSUMERS PRQPER
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GUIDANCE ON THE CONTENTS AND SOURCE /  ORIGIN OF THE PRODUCT.
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IMPORT DATA FROM THE BUREAU OF CUSTOMS AND BUREAU OF IMPORT SERVICES
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SHALL BE RECOGNIZED AS OFFICIAL SOURCES OF INFORMATION TO VALIDATE THE
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FOLLOWING INFORMATION RELATIVE TO A PARTICULAR IMPORTED CONSUMER
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PRODUCT:
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A) COUNTRY OF MANUFACTURER;
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B) NAME AND ADDRESS OF MANUFACTURER/EXPORTER;
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C) NAME AND ADDRESS OF IMPORTER/CONSIGNEE;
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D) VALUE AND VOLUME OF SHIPMENT;
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E) DATE OF ARRIVAL; AND
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F) OTHER INFORMATION RELEVANT TO THE SHIPMENT IN QUESTION."


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SECTION 14. Article 79 of the same Act is hereby amended to read as follows;
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"ART [79] 82. Authority of the Concerned Department to Provide for Additional
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Labeling and Packaging Requirements. - Whenever the concerned department
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determines that regulations covering requirements other than those prescribed in
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Section 77 hereof are necessary to prevent the deception of the consumer or to
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facilitate value comparisons as to any consumer product, it may issue such rules and
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regulations to:
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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;
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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;
20
21
c) Prevent the non-functional slack-fill of packages containing consumer 
products; AND
22
23
24
D) THE CONCERNED 
DEPARTMENT 
MAY 
LIKEWISE 
ISSUE 
SUCH 
OTHER 
REQUIREMENTS AS MAY BE PRESCRIBED BY REGULATIONS TO ENSURE THE 
SAFETY, EFFICACY AND QUALITY QF HEALTH PRODUCTS.
25 
For purposes of paragraph (c) of this Article, a package shall be deemed to be
26 
nonfunctionally slack-filled if it is filled to substantially less than its capacity for
27 
reasons other than (1) protection of the contents of such package, (2) the
28 
requirements of machines used for enclosing the contents in such package, or (3)
29 
inherent characteristics of package materials or construction being used."
30 
SECTION 15. Article 103 of the same Act is hereby amended to read as follows:
31 
"ART. [103] 106. Repair Service Obligation. - When services are provided for the
32 
repair of any product, the supplier shall be considered implicitly bound to use
33 
adequate, 
new, 
original 
replacement 
parts, 
or 
those 
that 
maintain 
the
34 
manufacturer's technical specifications unless, otherwise authorized, as regards to
35 
the latter by the consumer.
36 
IN PROVIDING SERVICE OR REPAIR AS REQUIRED UNDER THIS ARTICLE, THE
37 
MANUFACTURER, DISTRIBUTOR, OR SELLER MUST INFORM THE CONSUMER ABOUT
38 
WHICH PARTICULAR PARTS OF THE GOODS ARE DAMAGED AND HAVE TO BE
10


1 
REPAIRED. THE CONSUMER SHALL BE GIVEN THE OPTION TO REPLACE ONLY THE
2 
DAMAGED PARTS."
3 
SECTION 16. Article 110 of the same Act is hereby amended to read as follows:
4 
"ART. [110] 113. False, Deceptive or Misleading Advertisement. -  It shall be unlawful
5 
for any person to disseminate or to cause the dissemination of any false, deceptive
6 
or misleading advertisement by Philippine mail or in commerce by print, radio,
7 
television, outdoor advertisement, INTERNET, LANDLINE, MOBILE PHONE, or other
8 
medium for the purpose of inducing or which is likely to induce directly or indirectly
9 
the purchase of consumer products or services.
10 
XXX 
XXX 
XXX
11 
SECTION 17. Article 116 of the same Act is hereby amended to read as follows:
12 
"ART. [116] 119. 
Permit to Conduct Promotion. — No person shall conduct any
13 
PROMOTIONAL sales campaign[s], including [beauty] ANY GAME OR contest, THAT
14 
IS national in character, sponsored and promoted by PRODUCERS, RETAILERS,
15 
SELLERS, DISTRIBUTORS, SUPPLIERS, IMPORTERS, OR manufacturing enterprises
16 
without first securing a permit from the concerned department AND SUCH
17 
APPLICATION SHALL IMMEDIATELY BE APPROVED UPON THE FILING OF THE
18 
APPLICATION. IN CERTAIN SALES PROMOTION APPLICATION THAT MAY REQUIRE
19 
EVALUATION prior to the commencement thereof, 
the same shall be deemed
20 
approved and the promotion campaign or activity SHALL BE COMMENCED WITHIN
21 
FIVE (5) DAYS FROM ITS FILING: Provided, That any sales promotion campaign using
22 
medical prescriptions or any part thereof or attachment thereto for raffles or a
23 
promise of reward shall not be allowed, nor a permit be issued thereof. PROVIDED
24 
FURTHER, THAT THE OFFER OF PRICE DISCOUNTED RATES FOR SINGLE OR BULK
25 
PURCHASE OF PRODUCT/S OR SERVICE/S IS EXEMPTED FROM THE REQUIREMENT
26 
TO SECURE A PERMIT.
27 
ALL HOLDERS OF SALES PROMOTION PERMIT SHALL PROVIDE TO THE CONCERNED
28 
DEPARTMENT A COPY OF ITS PROMOTIONAL MATERIALS FOR POST AUDIT NOT
29 
LATER THAN THE PUBLICATION, RELEASE, OR LAUNCH DATE, WHICHEVER IS
30 
EARLIER."
31 
SECTION 18. Article 148 of the same Act is hereby amended to read as follows:
32 
"ART. [148] 151. National Consumer Affairs Council. -  To improve the management,
33 
coordination and effectiveness of consumer programs, a National Consumer Affairs
34 
Council is hereby [created] STRENGTHENED, hereinafter referred to as the "Council,"
35 
WHICH SHALL BE ATTACHED TO THE OFFICE OF THE SECRETARY OF THE DEPARTMENT
36 
OF TRADE AND INDUSTRY (DTI)."
11


1 
SECTION 19. Article 149 of the same Act is hereby amended to read as follows:
2 
"ART [149] 152. Composition. The Council shall be composed of representatives
3 
from the following government agencies and non-government agencies:
4
5
6
7
8 
9
10
11
12
13
14
15
16 
17
a) 
Department of Trade And Industry;
b) 
Department of Education], Culture and Sports];
c) 
Department of Health;
d) 
Department of Agriculture;
E) 
DEPARTMENT OF ENERGY;
F) 
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES;
G) 
DEPARTMENT OF INFORMATION AND COMMUNICATIONS TECHNOLOGY;
H) 
BANGKO SENTRAL NG PILIPINAS;
[e] I) 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] J) two (2) representatives from business/industry sector to be chosen by the
President from among the nominees submitted by the various business 
organizations.
18 
GOVERNMENT AGENCY REPRESENTATIVES TO THE COUNCIL SHALL BE REPRESENTED
19 
BY A PRINCIPAL MEMBER WITH A RANK OF NOT LESS THAN ASSISTANT SECRETARY OR
20 
ITS EQUIVALENT, OR AN ALTERNATE MEMBER WITH A RANK OF NOT LESS THAN A
21 
DIRECTOR OR ITS EQUIVALENT."
22 
SECTION 20. Article 151 of the same Act is hereby amended to read as follows:
23 
"ART. [151] 154. Per Diems of Members. — The members of the Council, EXCLUDING
24 
THE REPRESENTATIVES FRQM THE GQVERNMENT AGENCIES, shall be entitled to an
25 
allowance of FIVE THQUSAND PESOS (P5, 000.00) [five hundred pesos (P500.00) per
26 
meeting actually attended] PER MONTH."
27 
SECTION 21. Article 152 of the same Act is hereby amended to read as follows:
28 
"ART. [152] 155. 
The Secretariat. — The Council shall appoint an Executive Director
29 
who shall assist the Chairman and act as Secretary of the Council. The COUNCIL SHALL
30 
LIKEWISE SELECT AND HIRE ITS OWN EMPLOYEES AND FOR THIS PURPOSE provide ITS
31 
OWN Secretariat which shall assist the Council in the effective performance of its
32 
functions."
33
34
35
36
SECTION 22. Article 164 of the same Act is hereby amended to read as follows:
"Article 
[164] 
167. Sanctions. -  
After 
investigation, 
any 
of 
the 
following
administrative penalties may be imposed even if not prayed for in the complaint:
XXX
XXX
XXX
37 
e) the imposition of administrative fines in such amount as deemed reasonable by
38 
the Secretary, which shall BE COMPUTED BASED ON FIVE PERCENT (5%) OF THE
12


1 
GROSS VALUE OF SALES OF THE CONSUMER PRODUCT OR SERVICE SUBJECT TO
2 
THE CONSUMER COMPLAINT, BUT SHALL in no case be less than FIFTY
3 
THOUSAND 
PESOS (Php 50,000) OR MORE THAN TEN MILLION PESOS (Php
4 
10,000,000) [Five hundred pesos (P500.00) nor more than Three hundred
5 
thousand pesos (P300,000.00) depending on the gravity of the offense], and an
6 
additional fine of not more than One thousand pesos (P1,000.00) for each day of
7 
continuing violation]."
8 
SECTION 23. Separability Clause. If any part or parts of this Act should, for any reason, be
9 
declared invalid or unconstitutional, the part or parts thereof unaffected shall thereby
10 
continue to remain in full force and effect.
11 
SECTION 24. Repealing Clause. All laws, decrees, executive order, rules and regulations and
12 
other issuances consistent with this Act is hereby repealed or amended accordingly.
13 
SECTION 25. Effectivity. This Act shall take effect fifteen (15) days from the date of
14 
publication in at least two (2) newspapers of general circulation.
15
Approved,
13