13th CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
1 
First Regular Session 
1 
SENATE 
"04 JllL -6 iilO:53 
S. BILL NO. 
1 
Introduced by Senator Ralph G. Recto 
EXPLANATORY NOTE 
This bill seeks to increase the penalties for violations of certain 
provisions of Republic Act No. 7394, otherwise known as "The Consumer 
Act of the Philippines" by amending specific sections that fall under said 
provisions. 
Republic Act No. 7394 was enacted primarily to protect the 
consumers against hazards to health and safety, and against deceptive, 
unfair and unconscionable sales acts and practices. Unfortunately,, 
blatant disregard to the law is still practiced by several manufacturers, 
distributors, retailers, and suppliers that puts the consumer in the losing 
end. 
The penalties provided in the Consumer Act are found to be less 
than what it is warranted to be. Throughout the world, people are 
increasingly coming to the understanding that substantial fines and 
appropriate prison terms are necessary deterrents. The law was enacted 
in 1992 when the penalties imposed have become too inconsequential 
relative to the standards of living today. The penalties are no longer 
effective deterrent against the commission of violations by persons who 
only wanted to increase profit. 
Consumer advocacy has yet to take roots in the country and it is 
incumbent upon Congress to continuously review the Consumer Act and 
its related laws towards promoting the best interests and general welfare 
of the consuming public. 
In view of the foregoing, immediate approval of this bill is earnestly 


13th CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
I 
1 
'04 JL.L -6 
n?,3 :59 
First Regular Session 
I 
S. BILL NO. 
Introduced by Senator Ralph G. Recto 
AN ACT 
INCREASING THE PENALTIES FOR VIOLATIONS OF CERTAIN PROVISIONS OF 
(R.A. NO. 7394), OTHERWISE KNOWN AS THE CONSUMER ACT OF THE 
PHILIPPINES 
REPUBLIC ACT NUMBERED SEVEN THOUSAND THREE HUNDRED NINETY-FOUR 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
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SECTION 1. 
Article 1 9  of Republic Act No. 7394 (R.A. No. 7394), 
2 otherwise known as the Consumer Act of the Philippines, is hereby 
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amended to read as follows: 
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"Article 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 (Pl,OOO.OO)] TWENTY THOUSAND 
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PESOS (P20,OOO.OO) but not more than [Ten thousand pesos 
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(PlO,OOO.OO)] TWO HUNDRED THOUSAND PESOS (P200,OOO.OO) or 
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imprisonment of not less than [two (2) months] THREE (3) YEARS but 
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not more than [one (1) year] SIX (6) YEARS, or both upon the 
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discretion of the court." 
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"If the offender is an alien, he shall be deported after service 
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of 
sentence and payment of 
fine without further deportation 
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proceedings." 


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SEC. 2. Article 4 1  of R.A. 7394 is hereby amended to read as follows: 
"Article 41. Penalties. - a) Any person who violates any of the 
provisions of Article 40 shall, upon conviction, be subject to 
imprisonment of not less than [one (1) year] THREE (3) YEARS but not 
more than [five (5) years] SIX (6) YEARS, or a fine of not less than 
[Five thousand pesos (PS,OOO.OO)] ONE HUNDRED THOUSAND PESOS 
(P100,OOO.OO) 
but not more than [Ten thousand pesos (P1 O.OOO.OO)] 
TWO HUNDRED THOUSAND PESOS (P200,000.00), or both such 
imprisonment or fine, in the discretion of the Court." 
SEC. 3. Article 47 of R.A. 7394 is hereby amended to read as follows: 
'"Article 47. Penalfies: excepfion - 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 (Pl,OOO.OO)] 
TWENTY THOUSAND PESOS (P20.000.00) 
or an imprisonment of not 
less than [six (6) months] THREE (3) YEARS but not more than [five (5) 
years] SIX (6) YEARS or both upon the discretion of the court." 
SEC. 4. Article 60 of R.A. 7394 is hereby amended to read as follows: 
, "Article 60. Penalties. - a) Any person who violates any 
of the provisions of Title Ill, Chapter I, shall upon conviction, be 
subject to a fine of not less than [Five hundred pesos (P500.00)] TEN 
THOUSAND PESOS (PlO,OOO.OO) but not more than [Ten thousand 
pesos (Pl0,OOO.OO)J TWO HUNDRED THOUSAND PESOS (P200,OOO.OO) 
or imprisonment of not less than [five (5) months] THREE (3) YEARS 
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but not more than SIX (6) YEARS [one (1) year] or both upon the 
discretion of the court." 
SEC. 5. Article 65 of R.A. 7394 is hereby amended to read as follows: 
"Article 65. Penalties. - a) Any person who shall violate the 
provisions of paragraphs (a) to (f) and paragraph (I) of Article 64 or 
its implementing rules and regulations shall, upon conviction, be 
subject to a fine of not less than [Two hundred pesos (P200.00)1 TEN 
THOUSAND PESOS (PlO,OOO.OO) but not more than [One thousand 
pesos (P1 ,OOO)] TWO HUNDRED THOUSAND PESOS (P200,OOO.OO) or by 
imprisonment of not more than [one (1) year] THREE (3) YEARS or 
both upon the discretion of the court." 
"b) Any person who shall violate the provisions of paragraph 
(9) of Article 64 for the first time shall be subject to a fine of not less 
than [Five hundred pesos (P500.00)] TEN THOUSAND PESOS 
(Pl0,OOO.OO) or imprisonment of not less than [one ( 1  ] month] THREE 
(3) YEARS but not more than [five (5) years] SIX (6) 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 than [Three 
hundred pesos (P300.00)] TEN THOUSAND PESOS (PlO,OOO.OO] or 
imprisonment not exceeding [One (1) year] THREE (3) YEARS or both, 
upon the discretion of the court. 
SEC. 6. Article 73 of R.A. 7394 is hereby amended to read as follows: 


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"Article 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)] TEN THOUSAND PESOS (Pl0,OOO.OO) but not 
more than [Five thousand pesos (P5,000.00)] ONE HUNDRED 
THOUSAND PESOS (P50,OOO.OO) or an imprisonment of not less than 
[three (3) months] THREE (3) YEARS but not more than [two (2) years] 
SIX (6) YEARS or both upon the discretion of the court. A second 
conviction under this paragraph shall also carry 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 
(Pl,OOO.OO)] TEN THOUSAND PESOS (P10, 000.00) but not more than 
[Fifty thousand pesos (P50,OOO.OO)) THREE HUNDRED THOUSAND 
PESOS (P300,OOO.OO) 
or imprisonment for a period of at least [one (1 ) 
year] THREE (3) YEARS but not more than [five (5) years] SIX (6) YEARS 
or both, at the discretion of the court." 
"The imposition of any of the penalties herein provided is 
without prejudice to any liability incurred under the warranty or 
guarantee." 
SEC. 7. Article 95 of R.A. 7394 is hereby amended to read as follows: 
"Arficle 95. Penalties. - a) Any person who shall violate the 
provisions of Title 111, Chapter IV of this Act, or its implementing rules 
and regulations, except Article 81 to 83 of the same Chapter of the 


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same Chapter, shall be subject to a fine of not less than [Five 
hundred pesos (P500.00)) TEN THOUSAND PESOS (P10,OOO.OO) but not 
more than [Twenty thousand pesos (P20,OOO.OO)j THREE HUNDRED 
THOUSAND PESOS (P300,OOO.OO) or imprisonment of not less than 
[three (3) months] THREE (3) YEARS but nof more than [two (2) years] 
SIX (6) YEARS, 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)] TEN THOUSAND PESOS 
(PlO,OOO.OO) but not more than [Five thousand pesos (P5,000.00)] 
ONE HUNDRED THOUSAND PESOS (PlOO,OOO.OO) or imprisonment of 
not less than [one (1) month] ONE (1) YEAR but not more than [one 
(1) year] THREE (3) YEARS or both, at the discretion of the court." 
SEC. 
8. Article 107 of R.A. 7394 is hereby amended to read as 
follows: 
"Article 107. Penalfies. - 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)] ONE HUNDRED 
THOUSAND PESOS (P100.000.00)and by imprisonment of not more 
than [One (1) year] THREE (3) YEARS or both upon the discretion of 
the court." 
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without further deportation proceedings." 
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SEC. 
9. Article 123 of R.A. 7394 is hereby amended to read as 
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follows: 
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"Article 123 . Penalties. - (a) Any person, 
association, 
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partnership or corporation who shall violate any of the provisions of 
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Articles 110 to 115 shall, upon conviction, be subject to a fine of not 
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less than [Five hundred pesos (PSOO.OO)] TEN THOUSAND PESOS 
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(P10,OOO.OO) but not more than [Five thousand pesos (PS,OOO.OO)] 
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ONE HUNDRED THOUSAND PESOS (P100.000.00) or an imprisonment 
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of not less than [one (1) month] ONE (1) YEAR but not more than [Six 
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(6) months] THREE (3) YEARS or both upon the discretion of the 
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court." 
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"(b) Any violations of the provisions of Article 11 6 to 121 shall, 
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upon conviction, subject the offenders to a fine of not less than 
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[Two hundred pesos (P200.00)] TEN THOUSAND PESOS (P10,OOO.OO) 
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but not more than [Six hundred pesos (P600.00)] TWO HUNDRED 
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THOUSAND PESOS (P200,OOO.OO) or an imprisonment of not less than 
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[one (1) monfh] ONE (1) YEAR but not more than [Six (6) months] 
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THREE (3) YEARS or both upon the discretion of the court." 
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"If the violation was committed by a juridical person 
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responsible for the act shall be deported after service of sentence 
"In case of juridical persons, the penalty shall be imposed 
upon its president, manager or head. If the offender is an alien, he 
shall, after payment of fine and service of sentence, be deported 
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and payment of the fine without need for further deportation 
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proceedings.” 
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SEC. 10. Article 147 of R.A. 7394 is hereby amended to read as 
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follows: 
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“Article 147. Penalfies. - Any creditor who in connection with 
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any credit transaction fails to disclose to any person any information 
in violation of this Chapter or the Implementing Rules and 
Regulations issued thereunder shall be liable to such person in the 
amount of [One thousand pesos (P1 ,OOO.OO)] TWENTY THOUSAND 
PESOS (P20,OOO.OO) 
or in amount equal to twice the finance charge 
required by such creditor in connection with such transaction, 
whichever is greater, except that such liability shall not exceed 
Three thousand pesos (P3,OOO.OO) for any credit transaction and 
actual damages with the non-disclosure of 
the required 
information. Action to recover such penalty may be brought by 
such person within one (1) year from the date of the occurrence of 
the violation in any court of competent jurisdiction.” 
SEC. 
11. Repealing Clause. - All laws, presidential decrees, 
executive orders, rules and regulations or parts thereof inconsistent with 
the provisions of this Act are hereby repealed or modified accordingly. 
SEC. 12. Effectivity Clause. - This Act shall take effect fifteen (1 5) 
days after its complete publication in a newspaper of general circulation. 
I take effect upon approval. 
Approved, 
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