NINETEENTH CONGRESS OF THE ] 
REPUBLIC OF THE PHILIPPINES ] 
First Regular Session 
]
SENATE
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RECEIVES BY:
S.B. No.
942
Introduced by SEN. WIN GATCHALIAN
AN ACT
GRANTING BROADER PROTECTION TO CONSUMERS AMENDING FOR THE 
PURPOSE REPUBLIC ACT NO. 7394, OTHERWISE KNOWN AS 
"THE CONSUMER ACT OF THE PHILIPPINES"
EXPLANATORY NOTE
An effective consumer protection legislation is important in addressing the 
imbalances that consumers face in economic terms, educational levels, and bargaining 
power. Governments should develop, strengthen, or maintain a strong consumer 
protection policy in accordance with the economic and social circumstances of the 
country, and the needs of its population, and the costs and benefits of proposed 
measures.
Thus, this bill seeks to amend Republic Act No. 7394 or the Consumer Act of 
the Philippines to include the following principles, among others:
1. Eight (8) Consumer Bill of Rights;
2. Five (5) Consumer Responsibilities;
3. Required English or Filipino translation of product labels in foreign 
languages;
4. Expansion of regulation on advertising and promotion to include those for 
consumer products, services and credit facilities;


5. 
Protection from aggressive marketing promotions that significantly impair 
the average consumer's freedom of choice on purchase of a product or 
service;
6. Authority to close down any establishment caught in flagrante delicto selling 
substandard and hazardous products; and
7. Increased penalties on the violations of the provisions of the law.
In sum, these amendments intends to enhance consumer protection and 
promote ethical standards In trade practices which will consequently improve market 
outcomes for the entire economy.
In view of the foregoing, passage of this bill is earnestly^ou^t.


if tilt Bonmi-}’
NINETEENTH CONGRESS OF THE ] 
REPUBLIC OF THE PHILIPPINES ] 
First Regular Session 
]
SENATE 
S.B. No. 942
RECEIV’EDSV:
Introduced by SEN. WIN GATCHALIAN
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AN ACT
GRANTING BROADER 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. Short Title. — This Act shall be known as "The Enhanced Consumer
Act".
Sec. 2. Republic Act (R.A.) No. 7394, otherwise known as the "Consumer Act 
of the Philippines" is hereby amended by inserting a new Article 3 under Title I General 
Provisions, to read as follows:
"ART. 3. THE EIGHT (8) CONSUMER BILL OF RIGHTS. - THE 
GOVERNMENT, IN MAINTAINING AND STRENGTHENING THE 
PROMOTION OF CONSUMER INTEREST AND WELFARE IN RELATION 
TO THE BUSINESS AND INDUSTRY PRACTICE AS WELL AS THE 
PRODUCTION AND DISTRIBUTION OF COi^SUMER PRODUCTS, SHALL 
ADOPT MEASURES AND FORMULATE POLICIES TAKING INTO


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ACCOUNT THE EIGHT (8) BASIC CONSUMER RIGHTS. THE 
CONSUMERS SHALL BE ENTITLED TO:
A) RIGHT TO BASIC NEEDS - THE GUARANTEED SURVIVAL AND, 
THUS, BE PROVIDED WITH ADEQUATE FOOD, CLOTHING, 
SHELTER, HEALTH CARE, EDUCATION AND SANITATION;
B) RIGHT TO CHOOSE - THE CHOICE OF PRODUCTS AT 
COMPETITIVE PRICES WITH ASSURED SATISFACIORY 
QUALITY IN ACCORDANCE WITH GOVERNMENT STANDARDS;
C) RIGHT TO REPRESENTATION - THE CONSIDERATION OF 
CONSUMER INTERESTS IN THE FORMULATION AND 
EXECUTION OF GOVERNMENT POLICIES;
D) 
RIGHT TO REDRESS - CLAIM COMMENSURATE 
COMPENSATION FOR MISREPRESENTATION, SUBSTANDARD, 
DEFECTIVE GOODS OR UNSATISFACTORY SERVICES;
E) RIGHT TO CONSUMER EDUCATION - ACQUISITION OF 
KNOWLEDGE AND SKILLS NECESSARY TO MAKE AN INFORMED 
CHOICE;
F) RIGHT TO SAFETY - THE PROTECTION AGAINST THE 
MARKETING OF GOODS OR PROVISION OF SERVICES THAT ARE 
HAZARDOUS TO HEALTH AND LIFE;
G) RIGHT TO A HEALTHY ENVIRONMENT - LIVE AND WORK IN 
AN ENVIRONMENT WHICH PERMITS A LIFE OF DIGNITY AND 
WELL-BEING AND WHICH IS NEITHER THREATENING NOR 
DANGEROUS; AND
H) 
RIGHT TO INFORMATION - PROTECTION AGAINST 
DISHONEST OR MISLEADING ADVERTISING OR LABELING AND 
BE GIVEN THE PRODUCT FACTS AND INFORMATION NEEDED 
TO MAKE AN INFORMED CHOICE."


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Sec. 3. R. A. No. 7394, is hereby amended by inserting a new Article 4 under
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Title I General Provisions to read as follows:
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"ART. 4. 
THE FIVE (5) CONSUMER 
RESPONSIBILITIES. - IN
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CONNECTION WITH THE ENTITLEMENT OF THE BASIC RIGHTS
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STATED IN THE PRECEDING SECTION, THE CONSUMER SHALL
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EXERCISE THE FOLLOWING RESPONSIBILITIES;
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A) CRITICAL AWARENESS - BE MORE ALERT AND
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QUESTIONING ABOUT THE USES, THE PRICE AND QUALITY OF
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GOODS AND SERVICES PURCHASED;
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B) CONSUMER ACTION - ASSERT AND ACT TO ENSURE THAT
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HIS RIGHTS ARE PROTECTED AND THAT HE IS NOT EXPLOITED;
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C) SOCIAL CONCERN - BE MORE AWARE OF THE IMPACT OF HIS
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CONSUMPTION ON OTHER CITIZENS, ESPECIALLY THE
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DISADVANTAGED OR POWERLESS GROUPS, WHETHER IN THE
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LOCAL, NATIONAL, OR INTERNATIONAL COMMUNITY;
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D) ENVIRONMENTAL AWARENETS - UNDERSTAND THE
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ENVIRONMENTAL CONSEQUENCES OF HIS CONSUMPTION. HE
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SHOULD RECOGNIZE INDIVIDUAL AND SOCIAL
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RESPONSIBILITY TO CONSERVE NATURAL RESOURCES AND
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PROTECT THE EARTH FOR FUTURE GENERATIONS; AND
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E) SOLIDARITY - ORGANIZE CONSUMER GROUPS TO DEVELOP
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THEIR STRENGTH AND INFLUENCE TO PROMOTE AND PROTECT
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CONSUMER INTERESTS."
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Sec. 4. Article 4, Title I — General Provisions of R. A. No. 7394, is hereby
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amended and renumbered 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) XXX
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"x X X


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"n) Consumer- shall refer to a natural person who is a purchaser, lessee, 
recipient or prospective purchaser, lessor or recipient of consumer products, 
services, credit, TECHNOLOGY, ADVERTISING OR PROMOTION, AND 
OTHER ITEMS OF COMMERCE.
"x X X
"q) Consumer products and services - shall refer to goods, services and 
credits, debts or obligations, SERVICES which are primarily for personal, 
family, household or agricultural purposes, which shall include but not limited 
to food, drugs, cosmetics, and devices, PRODUCT, MERCHANDISE, 
GOODS, CREDIT, TECHNOLOGY AND OTHER TRANSACTIONS OR 
MATTERS INTENDED TO BE COVERED BY THIS ACT.
"u) Cosmetics- shall refer to [(-1)-articles Hat-ended to be rubbed-pourod, 
sprinkled,—or-sprayed-on-, - introduced into.or otherwise applied to the- human
body-or any part thereof for cleansing, -beaut4fyingrpronx)ting-attraGtivenesG,
or altering the appearance, and-(-2) art-iele-intended for uses-as-a-eomponent
of any such- article except that- such term sha-lf-net- inclede-seap-.] ANY 
SUBSTANCE OR PREPARATION INTENDED TO BE APPLIED ON THE 
VARIOUS EXTERNAL PARTS OF THE HUMAN BODY INCLUDING THE 
TEETH AND THE MUCOUS MEMBRANES OF THE ORAL CAVITY FOR THE 
PURPOSE EXCLUSIVELY OR MAINLY FOR CLEANING, PERFUMING, 
CHANGING APPEARANCE, CORRECTING BODY ODORS, OR 
MAINTAINING IN HEALTHY CONDITION."
"x X X
"w) Credit card - shall refer to any card, plate, coupon book or other 
credit SINGLE device existing for the purpose of BEING USED FROM TIME 
TO TIME UPON PRESENTATION TO obtain[in§] money, property, labor or 
services on credit.
"x X X
"aj) Guarantee - shall refer to an expressed or implied assurance of the 
REAL quality, PRICE, PROMOTION of the consumer products and services


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offered for sale or length of satisfactory use, COSTS OR OTHER SIMILAR 
CLAIMS to be expected from SUCH CONSUMER products or SERVICES 
BASED ON APPLIC/'BLE AND ACTUAL DOCUMENTS IN ACCORDANCE 
WITH THE LAW, MORALS, GOOD FAITH AND PUBLIC POLICY."
"x X X
"bm) Sales Promotion - shall refer to techniques intended for broad 
consumer participation which contain promises of gain such as prizes, in cash 
or in kind, OR AN OPPORTUNITY TO WIN ANY PRIZES OR FREE 
SERVICES, OR GIFT, OR ANY SIMILAR SCHEME, as reward for 
TRANSACTING FOR, RECEIVING, OR purchasING [the-purchasc of] a 
product, security, service or winning in contest, game, tournament and other 
similar competitions OR CHALLENGES which involve determination of 
winner/s and which utilize mass media or other widespread media of 
information such as INFORMATION AND COMMUNICATION 
TECHNOLOGY. It also means techniques purely intended to increase the 
sales, patronage and/or goodwill of [a-product], TRANSACTION FOR, 
PURCHASING, OR RECEIVING OF, CONSUMER PRODUCTS AND 
SERVICES.
"x X X
"bn) Seller - shall refer to 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.
"x X X
"br) Standard- shall refer to a set of conditions to be fulfilled to ensure 
the quality and safety of a product AND SERVICE;
"x X X


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Sec. 5. Article 6, Chapter I - Consumer Product Quality and Safety of R. A. No.
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7394 is hereby amended to read as follows:
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"Art. [6] 8. Implementing Agencies. — The provisions of this Act and its
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implementing rules and regulations shall be enforced by:
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a) the Department of Health with respect to PROCESSED food,
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drugs, cosmetics, devices and HAZARDOUS substances;
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b) the Department of Agriculture with respect to products related
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to agriculture AND FISHERIES; and
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c) the Department of Trade and Industry vyith respect to other
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consumer products not specified above."
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SEC. 6. Article 8, Chapter I - Consumer Product Quality and Safety of R. A. No.
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7394 is hereby amended to read as follows:
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"Art. [8] 10. Publication of Consumer Product Standards. — The
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department concerned shall, upon promulgation of the above standards,
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publish or cause the publication of the same EITHER in a newspaper of general
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circulation, OR in the OFFICIAL GAZETTE, AND IN THE DEPARTMENT’S
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OR AGENCY’S OFFICIAL WEB PORTAL. It may I kewise conduct an
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information campaign through other means deemed effective to ensure the
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proper guidance of consumers, businesses, industries and other sectors
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concerned."
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Sec. 7. Article 10, Chapter I — Consumer Product Quality and Safety of R. A.
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No. 7394 is hereby amended to read as follows:
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"Art. [40] 12. Injurious, Dangerous and Unsafe Products. - Whenever
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the departments find, by their own initiative or by petition of a consumer, that
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a consumer product is found to be injurious, unsafe or dangerous, it shall, after
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due notice and hearing, make the appropriate order for its recall, prohibition or
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seizure from public sale or distribution: Provided, That, in the sound discretion
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of the department it may declare a consumer product to be imminently


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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: PROVIDEO, FURTHER, THAT ANY
ESTABLISHMENT CAUGHT IN FLAGRANTE DELICTO SELLING, 
DISTRIBUTING, MANUFACTURING, PRODUCING, OR IMPORTING 
PREVIOUSLY DECLARED SUBSTANDARD AND HAZARDOUS 
PRODUCTS SHALL PE AUTOMATICALLY CLOSED AND SHUT DOWN.
"x X X."
SEC. 8. Article 11, Chapter I — Consumer Product Quality and Safety of R. A. 
No. 7394 is hereby amended to read as follows:
"Art. [44] 13. Amendment and Revocation of Declaration of the 
Injurious, Unsafe or Dangerous Character of a Consum^er 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 so notify the manufacturer, 
distributor or seller thereof of such finding and order such manufacturer, 
distributor or seller to WITHOUT DELAY:
a) 
give notice to the public of the defect or failure to comply with the 
product safety standards;
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give notice to each distributor or seller of such product; and
c) 
WHEN POSSIBLE, GIVE NOTICE TO EVERY PERSON TO WHOM 
SUCH CONSUMER PRODUCT WAS DELIVERED OR SOLD.


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The 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:
X X X.
Sec. 9. R. A. No. 7394 is hereby amended by inserting a new Article 14 under 
Chapter I — Consumer Product Quality and Safety to read as follows:
"ART. 14. PHYSICAL SAFETY. - MANUFACTURERS OR 
DISTRIBUTORS SHOULD ENSURE THAT AS SOON AS THEY BECOME 
AWARE OF UNFORESEEN HAZARDS AFTER PRODUCTS ARE PLACED 
ON THE MARKET, THEY SHOULD NOTIFY THE GOVERNMENT 
AUTHORITIES CONCERNED AND, AS APPROPRIATE, INFORM THE 
PUBLIC WITHOUT DELAY. THE GOVERNMENT SHOULD ALSO 
ESTABLISH MECHANISMS FOR ENSURING THAT CONSUMERS ARE 
PROPERLY INFORMED OF SUCH HAZARDS."
Sec. 10. Article 52, Chapter I — Deceptive, Unfair, and Unconscionable Sales 
Acts or Practices, Title III of R. A. No. 7394 is hereby amended to read as follows:
"Art. [52] 55. Unfair or Unconscionable Sales Act or Practice. - "x x x In 
determining whether an act or practice is unfair and unconscionable, the 
following circumstances shall be considered:
"d) that the transaction that the seller or supplier induced the 
consumer to enter into was excessively one-s?ded in favor of the seller or 
supplier SUCH AS BUT NOT LIMITED TO:
I. THAT WHEN THE CONSUMER TRANSACTION WAS ENTERED 
INTO, THE SELLER OR SUPPLIER IMPOSED OPON THE 
CONSUMER TERMS AND CONDITIONS GROSSLY 
DISADVANTAGEOUS TO THE LATTER WHO IS REDUCED TO 
THE ALTERNATIVE OF ACCEPTING THE CONTRACT OR


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LEAVING IT, COMPLETELY DEPRIVED OF THE OPPORTUNITY
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TO BARGAIN ON EQUAL FOOTING; AND
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II. THE SELLER OR SUPPLIER EMPLOYS AN AGGRESSIVE
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MARKETING PRACTICE THAT SIGNIFICANTLY CONSTRAINS
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OR IMPAIRS OR IS LIKELY TO SIGNIFICANTLY CONSTRAIN
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OR IMPAIR THE AVERAGE CONSUMER'S FREEDOM OF
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CHOICE OR CONDUCT WITH REGARD TO THE PURCHASE OF
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A PRODUCT OR SERVICE THAT CAUSES THE CONSUMER OR
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IS LIKELY TO CAUSE THE CONSUMER TO ENTER INTO A
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TRANSACTION DIFFERENT FROM THE ONE THE CONSUMER
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WOULD HAVE INTENDED, OR THE CONSUMER WOULD NOT
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HAVE DONE WITHOUT THE MARKETING PRACTICE."
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Sec. 11. Article 81, Chapter IV - Labeling and Fair Packaging, Title III of R. A.
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No. 7394 is hereby amended to read as follows:
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"Art. [84] 84. Price Tag Requirement — It shall be unlawful to offer any
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consumer product OR SERVICE for retail sale to the public without an
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appropriate price tag, label, or marking, OR WITH MORE THAN ONE PRICE,
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OR DIFFERENT PRICE TAGS, LABELS, OR MARKINGS publicly displayed
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to indicate of each article and said products shall not be sold at a price higher
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than that stated therein and without discrimination to all buyers: PROVIDED,
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THAT IT SHALL BE UNLAWFUL FOR ANY RETAILER TO CHARGE THE
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CUSTOMERS MORE THAN THE ACTUAL CASH RETAIL PRICE OF THE
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GOODS OR SERVICES PURCHASED WHEN SUCH PURCHASE IS DONE
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WITH THE USE OF CREDIT CARD AND/OR TO LIMIT BARGAIN SALE
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ITEMS AND SERVICES TO CASH PURCHASES: Provided, further. That
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lumber sold, displayed or offered for sale to the public shall be tagged or labeled
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by indicating thereon the price and the corresponding officiai name of the
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wood: PROVIDED, FINALLY, That if consumer products for sale are too small
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or the nature of which makes it impracticai to place a price tag thereon price


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list placed at the nearest point where the products are displayed indicating the
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retail price of the same may suffice.”
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Sec. 12. R. A. No. 7394 is hereby amended by inserting a new Article 87 under
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Chapter IV Labeling and Fair Packaging, Title III to read as follows;
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"ART. 87. ENGLISH OR FILIPINO TRANSLA TIONS OF PRODUCT
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LABELS WRITTEN IN FOREIGN CHARACTERS OR LANGUAGES. -
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CONSUMER PRODUCTS WITH PRODUCT LABELS WRITTEN IN
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FOREIGN CHARACTERS OR LANGUAGE SHALL BE ALLOWED ENTRY
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INTO THE COUNTRY AND INTRODUCED INTO COMMERCE ONLY IF
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THEY HAVE A CORRESPONDING ENGLISH OR FILIPINO
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TRANSLATION TO ENABLE THE AUTHORITIES TO DETERMINE
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WHETHER THE PRODUCT HAS COMPLIED WITH ALL THE OTHER
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LABELING REQUIREMENTS AS WELL AS PROVIDE THE CONSUMERS
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PROPER GUIDANCE ON THE CONTENTS AND ORIGIN OF THE
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PRODUCT."
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Sec. 13. R. A. No. 7394 is hereby amended by inserting a new Article 88 under
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Chapter IV Labeling and Fair Packaging to read as foliows:
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"ART. 88. OFFICIAL SOURCES OF INFORMATION FOR
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IMPORTED CONSUMER PRODUCTS. - IMPORT DATA FROM THE
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BUREAU OF CUSTOMS AND BUREAU OF IMPORT SERVICES SHALL BE
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RECOGNIZED AS OFFICIAL SOURCES OF INFORMATION TO VALIDATE
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THE FOLLOWING INFORMATION RELATIVE TO A PARTICULAR
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IMPORTED CONSUMER PRODUCT:
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1. 
COUNTRY OF MANUFACTURE;
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2. 
NAME AND ADDRESS OF MANUFACTURER/EXPORTSR;
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3. 
NAME AND ADDRESS OF IMPORTER/CONSIGNEE;
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4. 
VALUE AND VOLUME OF SHIPMENT;
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5. 
DATE OF ARRIVAL; AND
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6. OTHER INFORMATION RELEVANT TO THE SHIPMENT IN
QUESTION."
Sec. 14. R. A. No. 7394 is hereby amended by inserting a mew Article 115 under 
Chapter VI —Advertising and Sales Promotion, Title III to read as follows:
"ART. 115. COVERAGE OF ADVERTISING AND SALES 
PROMOTION - THE PROVISIONS ON ADVERTISING AND SALES 
PROMOTION SHALL APPLY TO ADVERTISING AND PROMOTION OF 
CONSUMER PRODUCTS, SERVICES AND CREDIT FACILITIES, WHICH 
INCLUDE SPONSORSHIPS OF PROGRAMS, CONCERTS, GAMES, 
SHOWS AND SIMILAR ACTIVITIES: PROVIDED, THAT WITH RESPECT 
TO FOOD, DRUGS, DEVICES, COSMETICS AND HAZARDOUS 
SUBSTANCES AND AGRICULTURAL PRODUCTS, THE SAME SHALL BE 
UNDER THE JURISDICTION OF THE DEPARTMENTS CONCERNED."
Sec. 15. R. A. No. 7394 is hereby amended by inserting a new Article 116 under 
Chapter VI — Advertising and Sales Promotion, Title III to read as follows:
"ART. 116. COVERAGE. - THESE PROVISIONS SHALL APPLY TO 
THE PHILIPPINE ADVERTISING COMMUNITY WHICH INCLUDES 
ADVERTISERS, ADVERTISING AGENCIES, MEDIA AND ADVERTISING 
SUPPORT GROUPS BUT SHALL NOT APPLY TO THE FOLLOWING:
1. 
PUBLIC SERVICE AND EMERGENCY ANNOUNCEMENTS 
OF UTILITY COMPANIES;
2. 
RELIGIOUS, POLITICAL AND PUBLIC ISSUE 
ADVERTISEMENTS AND ANNOUNCEMENTS, EXCEPT 
WHERE THESE INVOLVE OR SEEK TO PROMOTE 
COMMERCIAL TRANSACTIONS; AND
3. 
STANDARD TRANSPORT ANNOUNCEMENTS, CLASSIFIED 
ADVERTISEMENTS AND OBITUARIES."
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Sec. 16. R. A. No. 7394 is hereby amended by inserting a new Article 117 under
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Chapter VI —Advertising and Sales Promotion, Title III to read as follows:
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"ART. 117. ADVERTISING GENERAL PRINCIPLES.
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ADVERTISEMENTS SHALL BE GUIDED BY THE FOLLOWING
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PRINCIPLES:
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(1) ADVERTISING MUST PROVIDE THE GENERAL PUBLIC WITH
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RELEVANT AND TRUTHFUL INFORMATION ON PRODUCTS AND
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SERVICES, THEREBY HELPING 
CONSUMERS 
MAKE 
INFORMED
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CHOICES; AND
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(2) THE advertising INDUSTRY SHOULD CONTINUE TO
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IMPROVE THE LEVELS AND STANDARDS OF ADVERTISING."
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Sec. 17. R. A. No. 7394 is hereby amended by inserting a new Article 118 under
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Chapter VI —Advertising and Sales Promotion, Title li1 to read as follows:
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"ART. 118. PRESENTATION OF ADVERTISEMENTS. - (1)
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CLAIMS OF PRODUCTS AND SERVICE FEATURES OR THEIR INTENDED
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USAGE SHOULD BE CLEARLY PRESENTED AND SHOULD NOT MISLEAD
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OR BE LIKELY TO MISLEAD THE PERSONS TO WHOM THEY ARE
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ADDRESSED BY INACCURACY, AMBIGUITY, EXAGGERATION OR
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OMISSION;
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(2) ANY TEST OR DEMONSTRATION MAY BE USED ONLY IF IT
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DIRECTLY PROVES THE CLAIMED PRODUCT OR SERVICE FEATURE OR
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CHARACTERISTICS AND SHOULD BE PRESENTED CLEARLY AND
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ACCURATELY.
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(3) CORPORATE ADVERTISING MUST BE FAIR, TRUTHFUL AND
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ACCURATE; IT SHOULD NOT CONTAIN ANY EXAGGERATIONS OR
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SWEEPING GENERALIZATIONS THAT MAY MISLEAD THE PUBLIC
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REGARDING THE ADVERTISER OR THE ATTRIBUTES OF ITS
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PRODUCTS OR SERVICES: PROVIDED, THAT WHERE THE
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ADVERTISEMENTS CONTAIN SPECIFIC CLAIMS REGARDING THE
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COMPANY OR ITS PRODUCTS OR SERVICES, SUCH CLAIMS MUST BE 
VERIFIABLE AND SUBJECT TO SUBSTANTIATION IN THE SAME 
MANNER AS REGULAR PRODUCT OR SERVICE ADVERTISEMENTS."
Sec. 18. Article 110, Chapter VI —Advertising and Sales Promotion, Title III of 
A. No. 7394 is hereby amended to read as follows:
"Art. [440] 119. False, Deceptive or Misleading Advertisement — It 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, outdoor advertisement, INTERNET', 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."
"x X x.7'
Sec. 19. R. A. No. 7394 is hereby amended by inserting a new Article 120 under 
Chapter VI —Advertising and Sales Promotion, Title III to read as follows:
"ART. 120. SPECIFIC CLAIMS. - (1) INGREDIENT ADVERTISING 
- (A) ADVERTISEMENTS SHOULD NOT CONTAIN ANY REFERENCE 
WHICH COULD LEAD THE PUBLIC TO ASSUME THAT A PRODUCT 
CONTAINS A SPECIFIC INGREDIENT UNLESS THE INGREDIENT'S 
QUANTITIES AND PROPERTIES AS WELL AS THE MATERIAL BENEFIT 
THAT RESULTS FROM ITS INCLUSION IN THE PRODUCT 
FORMULATION HAVE BEEN TECHNICALLY SUBSTANTIATED; AND (B) 
ADVERTISEMENTS SHOULD NOT IMPLY THAT A CERTAIN BENEFIT IS 
DUE TO A SPECIFIC INGREDIENT UNLESS A VERIFIABLE CAUSE AND 
EFFECT RELATIONSHIP EXISTS.
(2) PROFESSIONAL DATE REFERENCES - ADVERTISEMENTS 
USING THE RESULTS OF A BONA FIDE RESEARCH, SURVEYS, OR TEST 
RELATING TO A PRODUCT SHOULD NOT BE PRESENTED 
INACCURATELY OR IN A MISLEADING MANNER, NOR SHOULD IT
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CLAIM ANY IMPLICATIONS BEYOND WHAT IS CLEARLY 
ESTABLISHED BY RESEARCH, SURVEY OR TEST.
(3) SCIENTIFIC CLAIMS - (A) VISUAL REPRESENTATIONS OF 
LABORATORY SETTINGS MAY ONLY BE EMPLOYED PROVIDED THE 
RESEARCH WAS CONDUCTED IN THE LABORATORY; AND (B) IN CASE 
OF REFERENCES TO TESTS BY PROFESSIONALS OR INSTITUTIONS 
INCLUDING BUT NOT LIMITED TO DOCTORS, ENGINEERS, AND 
RESEARCH FOUNDATIONS, THE DOCUMENTED AND AUTHORITATIVE 
EVIDENCE SHOULD BE SUBMITTED TO SUBSTANTIATE SUCH TESTS 
AND CLAIMS BASED THEREON.
(4) NUMBER ONE OR LEADERSHIP CLAIM - (A) NO "NUMBER 1" 
CLAIM WITH RESPECT TO ANY PRODUCT OR SERVICE SHALL BE 
ALLOWED UNLESS IT IS CLEARLY DELINEATED AND QUALIFIED AS 
TO RENDER THE CLAIM OBJECTIVELY VERIFIABLE. THE CLAIM 
SHOULD, IN ANY CASE, BE SUBSTANTIATED.
(5) TESTIMONIALS - (A) TESTIMONIAL CLAIMS RELATING TO 
THE PRODUCT BEING ADVERTISED SHOULD BE GENUINE AND 
TRUTHFUL; (B) INDIVIDUALS ENDORSING A PRODUCT OR SERVICE 
IN COMMUNICATION MATERIALS AND V HO IS PRESENTED AS AN 
EXPERT MUST HAVE DEMONSTRABLE CREDENTIALS TO 
SUBSTANTIATE THE CLAIMED EXPERTISE. THE ENDORSEMENT MUST 
BE SUPPORTED BY AN ACTUAL EXERCISE OF EXPERTISE IN 
EVALUATING THE PRODUCT OR SERVICE CHARACTERISTICS. SUCH 
EVALUATION MUST BE RELEVANT AND AVAILABLE TO AN ORDINARY 
CONSUMER'S USE OF THE PRODUCT; AND (C) ENDORSEMENTS BY AN 
ORGANIZATION ARE CONSIDERED AS JUDGMENT BY A GROUP 
WHOSE COLLECTIVE EXPERIENCE OUTWEIGHS THAT OF AN 
INDIVIDUAL MEMBER. ADVERTISER MUST PROVIDE EVIDENCE THAT 
THE ORGANIZATION'S ENDORSEMENT WAS REACHED BY A PROCESS 
SUFFICIENT TO ENSURE THAT IT REFLECTS THE COLLECTIVE
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JUDGMENT OF THE ORGANIZATION. THE ORGANIZATION MAY 3E
2 
CONSIDERED LEGITIMATE IF IT CAN PRESENT PROOF OF EXISTENCE
3 
FOR AT LEAST ONE (1) YEAR."
4
5 
Sec. 20. R. A. No. 7394 is hereby amended by inserting a new Articie 125 under
6 
Chapter VI - Advertising and Sales Promotion, Title III to read as follows:
7 
"ART. 125. COVERAGE AND EXEMPTION OF THE SALES
8 
PROMOTION OF CONSUMER PRODUCTS AND SERVICES. - (A)
9 
COVERAGE OF THE SALES PROMOTION OF CONSUMER PRODUCTS
10 
AND SERVICES. - THE PROVISIONS ON SALES PROMOTION OF THE
11 
CONSUMER PRODUCTS AND SERVICES SHALL APPLY TO ALL
12 
PROMOTIONAL CAMPAIGNS AND ANNOUNCEMENTS FOR CONSUMER
13 
PRODUCTS, SERVICES, CREDIT FACILITIES, AS WELL AS BEAUTY
14 
CONTESTS, NATIONWIDE IN CHARACTER.
15 
THE PROVISIONS OF SALES PROMOTION OF CONSUMER
16 
PRODUCTS AND SERVICES SHALL LIKEWISE APPLY TO SIMILAR
17 
ACTIVITIES SUCH AS BUT NOT LIMITED TO IN-STORE PROMOTIONS
18 
OFFERING REDUCED PRICES, SPECIAL OFFERS, PRODUCT
19 
DEMONSTRATION, PRODUCT SAMPLES REBATES, DISCOUNTS,
20 
PREMIUM-IN-PACK, AND EXPERT ADVICE.
21 
(B) EXEMPTION OF THE SALES PROMOTION OF CONSUMER
22 
PRODUCTS AND SERVICES - THE PROVISIONS OF SALES PROMOTION
23 
OF CONSUMER PRODUCTS AND SERVICES SHALL NOT APPLY TO THE
24 
FOLLOWING PROMOTIONAL CAMPAIGNS OR ACTIVITIES:
25 
(1) GOVERNMENT OR ANY OF ITS AGENCIES OR
26 
INSTRUMENTALITIES, WHEN THE SAME IS CONDUCTED IN THE
27 
EXERCISE OF THEIR GOVERNMENTAL FUNCTIONS;
28 
(2) PRIVATE ENTITIES IN JOINT PROJECT/S WITH ANY
29 
GOVERNMENT AGENCY UNDER THE PRECEDING PARAGRAPH;
30 
AND
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(3) SOCIAL, CIVIC, POLITICAL, RELIGIOUS,
2 
EDUCATIONAL, PROFESSIONAL AND OTHER SIMILAR
3 
ORGANIZATIONS WHICH EXTEND PROMOTIONAL ACTIVITY
4 
AMONG THEIR MEMBERS: PROVIDED, THAT THE
5 
PROMOTIONAL ACTIVITY IS NOT CONSIDERED SALES
6 
PROMOTIONAL CAMPAIGN AS DEFINED UNDER THIS ACT.'1
7
8 
Sec. 21. Article 116, Chapter VI — Advertising and Sales Promotion, Title III of
9 
A. No. 7394 is hereby amended to read as follows:
10 
"ART. [446] 127. Permit to Conduct Promotion. — No person shall
11 
conduct any sales campaigns, including beauty contest, national in character,
12 
sponsored and promoted by PRODUCERS, RETAILERS, SELLERS,
13 
DISTRIBUTORS, SUPPLIERS, IMPORTERS, OR manufacturing enterprises
14 
without first securing a permit from the concerned department prior to the
15 
commencement thereof. Unless an objection denial is received WITHIN
16 
FIVE (5) DAYS [ftft-een-(-45-> days] from filing of the COMPLETE application,
17 
the same shall be deemed approved and the promotion campaign or activity
18 
may be conducted: Provided, that any sales promotion campaign using medical
19 
prescriptions or any part thereof or attachment thereto for raffles or a promise
20 
of reward shall not be allowed, nor a permit be issued thereof."
21
22 
Sec. 22. R. A. No. 7394 is hereby amended by inserting a new Article 128 under
23 
Chapter VI — Advertising and Sales Promotion, Title III, to read as follows:
24 
"ART. 128. APPLICATION FOR PERMIT, - (A) THE APPLICATION
25 
FOR PERMIT SHALL BE IN THE FORM PRESCRIBED BY THE
26 
DEPARTMENT CONCERNED.
27 
(B) WHO MAY FILE THE APPLICATION FOR PERMIT. - THE
28 
PERSON WHOSE CONSUMER PRODUCTS, SERVICES, 
CREDIT
29 
FACILITIES, BEAUTY CONTESTS, COMPETITION, GAMES SHOWS AND
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1 
THE LIKE ARE BEING PROMOTED MAY FILE THE APPLICATION FOR
2 
PERMIT.
3 
THE ABOVE PERSON SHALL SIGN THE APPLICATION
4 
INDIVIDUALLY OR JOINTLY WITH THE OTHERS OR SUBMIT
5 
THEREWITH A TRUE COPY OF ANY WRITTEN AGREEMENT BETWEEN
6 
OR AMONG THEMSELVES, REFLECTING THE DEGREE OR EXTENT OF
7 
THEIR PARTICIPATION AND RESPONSIBILITY IN THE CONDUCT OF
8 
THE PROMOTIONAL ACTIVITY COVERED BY THIS ACT WHERE NO
9 
LIMITATION AS TO THE EXTENT OF THE LIABILITY OR
10 
RESPONSIBILITY IS INDICATED IN SUCH AGREEMENT, ALL OF THEM
11 
SHALL BE JOINTLY AND SEVERALLY LIABLE AND RESPONSIBLE
12 
THEREFOR.
13 
(C) APPLICATION THROUGH AND BY AN AGENT- WHERE THE
14 
PROMOTIONAL CAMPAIGN/ACTIVITY IS APPLIED FOR AND IN
15 
BEHALF OF THE PERSONS MENTIONED IN PARAGRAPH (A) HEREOF,
16 
THE AGENT SHALL BE AUTHORIZED BY A SPECIAL POWER OF
17 
ATTORNEY OR A BOARD RESOLUTION AS EVIDENCED BY A
18 
SECRETARY'S CERTIFICATE AS THE CASE MAY BE."
19
20 
Sec. 23. R. A. No. 7394 is hereby amended by in3erting a new Article 129 under
21 
Chapter VI -- Advertising and Sales Promotion, Title III, to read as follows:
22 
"ART. 129. PROHIBITED ACTS IN THE CONDUCT OF SALES
23 
PROMOTION - "THE FOLLOWING ACTS ARE PROHIBITED IN THE
24 
CONDUCT OF SALES PROMOTION CAMPAIGN:
25 
(A) GAMBLING AND WAGERING SCHEMES;
26 
(B) USE OF MEDICAL PRESCRIPTIONS; AND
27 
(C) DIRECTLY OR INDIRECTLY TAMPERING WITH THE
28 
ENTRIES, PARAPHERNALIA AND/OR ELECTRONIC DEVICE IN A
29 
PROMOTIONAL CAMPAIGN/ACTIVITY COVERED 
BY THIS ACT OR
30 
UNDULY INFLUENCING THE RESULTS THEREOF OR PERFORMING
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ANY ACT TO THE PREJUDICE OF LEGITIMATE PARTICIPANTS OR
2 
WINNERS."
3
4 
Sec. 24. R. A. No. 7394 is hereby amended by inserting a new Article 130 under
5 
Chapter VI — Advertising and Sales Promotion, Title III, to read as follows:
6 
"ART. 130. VOLUNTARY CANCELLATION OF APPROVED
7 
PROMOTIONAL CAMPAIGN/ACTIVITY.
8 
(A) VOLUNTARY CANCELLATION BEFORE PUBLICATION - A
9 
PERSON MAY VOLUNTARILY CANCEL OR DISCONTINUE THE
10 
APPROVED PROMOTIONAL CAMPAIGN/ACTIVITY PROVIDED NO
11 
INFORMATION DISSEMINATION AND ADVERTISING THEREON HAS
12 
BEEN MADE AND THAT A WRITTEN NOTICE SHALL BE SUBMITTED TO
13 
THE DEPARTMENT PRIOR TO SUCH VOLUNTARY CANCELLATION.
14 
(B) VOLUNTARY CANCELLATION AFTER PUBLICATION - IF ANY
15 
ANNOUNCEMENT, INFORMATION DISSEMINATION OR
16 
ADVERTISING OF THE PROMOTIONAL CAMPAIGN/ACTIVITY HAS
17 
ALREADY BEEN MADE, BUT THE PROMOTION PERIOD HAS NOT YET
18 
COMMENCED, THE DISCONTINUANCE OR CANCELLATION OF THE
19 
PROMOTION MAY BE MADE ONLY UPON PRIOR WRITTEN NOTICE TO
20 
THE DEPARTMENT WITHIN A PERIOD OF NOT LESS THAN FIVE (5)
21 
DAYS BEFORE THE COMMENCEMENT OF THE ORIGINAL INTENDED
22 
DATE OF PROMOTION.
23 
THE 
SPONSOR SHALL HONOR 
THE 
PROMOTIONAL
24 
COMMITMENTS SHOULD IT FAIL TO COMPLY WITH THE REQUIRED
25 
PERIOD.
26 
(C) VOLUNTARY CANCELLATION OF ONGOING PROMOTION
27 
VOLUNTARY CANCELLATION OR DISCONTINUANCE OR SUSPENSION
28 
OF ANY ONGOING PROMOTIONAL CAMPAIGNS/ACTIVITIES SHALL
29 
NOT BE ALLOWED EXCEPT UPON PRIOR WRITTEN APPROVAL BY THE
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1 
DEPARTMENT WHICH SHALL BE BASED ON ANY OF THE FOLLOWING
2 
GROUNDS:
3 
(I) A FINAL JUDGMENT OF VOLUNTARY INSOLVENCY OR
4 
BANKRUPTCY AGAINST THE PERSON WHO APPLIED;
5 
(II) OCCURRENCE OF ANY FORTUITOUS EVENT OR FORCE
6 
MAJEURE THAT WILL MAKE IT IMPOSSIBLE TO
7 
CONTINUE THE PROMOTIONAL CAMPAIGN OR ACTIVITY:
8 
PROVIDED, HOWEVER, THAT THOSE WHO HAD ALREADY
9 
WON IN THE PROMOTION BEFORE THE APPROVAL THE
10 
CANCELLATION OR DISCONTINUANCE OR SUSPENSION
11 
SHALL BE PAID OR GIVEN THEIR PRIZES."
12
13 
Sec. 25. R. A. No. 7394 is hereby amended by inserting a new Articie 131 under
14 
Chapter VI — Advertising and Sales Promotion, Title III to read as follows:
15 
"ART. 131. RULES ON MECHANICS. - ALL COVERED
16 
PROMOTIONAL CAMPAIGNS AND ACTIVITIES SHALL ABIDE BY OR
17 
COMPLY WITH THE RULES ON THE MECHANICS OF THE PROMOTION
18 
SET FORTH IN THE IMPLEMENTING RULES AND REGULATIONS OF
19 
THE AGENCY CONCERNED."
20
21 
Sec. 26. R. A. No. 7394 is hereby amended by inserting a new Article 136 under
22 
Chapter VI Advertising and Sales Promotion, Title IIII to read as follows:
23 
"ART. 136. SELECTION OF PARTICIPANTS AND WINNERS. - THE
24 
SELECTION OF PARTICIPANTS AND WINNERS OF A PROMOTIONAL
25 
PROGRAM SHALL BE GUIDED BY THE FOLi-OWING:
26 
(A) MODE OF SELECTION OF PROSPECTIVE
27 
PARTICIPANTS/ENTRIES PROSPECTIVE PARTICIPANTS/ENTRIES
28 
ARE SELECTED IN A FAIR, HONEST AND TRANSPARENT MANNER.
29 
THERE MUST BE PROOF OF NOTICE OF SELECTION AND SUCH OTHER
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27
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RELEVANT INFORMATION TO THE SELECTED PARTICPANTS IN A 
MANNER EXPRESSLY PROVIDED FOR IN THE MECHANICS.
(B) DETERMINATION OF WINNERS - DRAW DATE OR DATES 
FOR THE SELECTION OF PARTICIPANTS OR WINNERS TO A 
PROMOTIONAL CAMPAIGN OR ACTIVITY SHALL NOT BE MORE THAN 
FOURTEEN (14) DAYS AFTER THE DEADLINE OF THE SUBMISSION OF 
ENTRIES. WINNERS MAY BE DETERMINED THROUGH THE USE OF 
ANY TECHNIQUE NOT CONTRARY TO LAW, MORALS AND PUBLIC 
POLICY PROVIDED THE SAME SHALL BE CONDUCTED IN A FAIR, 
HONEST AND TRANSPARENT MANNER."
Sec. 27. R. A. No. 7394 is hereby amended by inserting a new Article 148 under 
Title IV - Consumer Credit Transaction to read as follows:
"ART. 148. IMPLEMENTING AGENCY, -THE BANGKO SENTRAL 
NG PILIPINAS SHALL STRICTLY ENFORCE THE PROVISION OF THIS 
CHAPTER AND ITS IMPLEMENTING RULES AND REGULATIONS 
EXCEPT THOSE WHICH FALL WITHIN THE JURISDICTION OF THE 
SECURITIES AND EXCHANGE COMMISSION."
Sec. 28. Article 149, Chapter I - Establishment and Composition, Title V of R.A. 
No. 7394 is hereby amended to read as follows:
"Art. [449] 166. Composition. - The Council shall be composed of 
representatives from the following government agencies and nongovernment 
agencies:
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;
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G) [e] four (4) representatives from the consumer organizations of 
nationwide base to be chosen by the President among [the] ITS nominees 
[si:fbmittcd-by -thc various-groups in the Philipp:;^]; AND
H) [f] 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. 29. Article 151, Chapter I - Establishment and Composition, Title V of R.A. 
No. 7394 is hereby amended to read as follows:
"Art. [454] 168. Per Diems of Members. — The members of the Council shall
be entitled to an allowance of FIVE THOUSAND PESOS [five-hundred..pesos
(-P-5QQ.QQ)] per meeting actually attended but not moi e than TWENTY THOUSAND 
PESOS (P20,000.00) [twe-thousand-pesos (P2,000.Q0)] a month.
Sec. 30. Article 156, Chapter II - Powers and Functions, Title V, of R. A. No. 
7394 is hereby amended to read as follows:
"Art. [456] 173. Consumer Participation. — The Departments shall 
establish procedures for RECOGNITION OF THE meaningful participation by 
consumers or consumer organizations in the development and review of 
department rules, policies, and programs.
Such procedures shall include provisions for a forum, where consumers 
can express their concerns and recommendations to decision-makers. The 
departments shall exert efforts to inform consumers of pending proceedings 
where their participation is important."
Sec. 31. Article 164, Chapter III - Consumer Complaints, Title V, of R. A. No. 
7394 is hereby amended to read as follows:
"Art. [464] 181. Sanctions. — After investigation, any of the following 
administrative penalties may be imposed even if not prayed for in the 
complaint:
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7
8 
9
10
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"a) XXX
"x X X
"E) AUTOMATIC CANCELLATION OF A BUSINESS NAME;
[e] F) the imposition of administrative fines in such amount as deemed 
reasonable by the Secretary, which shail in no case be less than FIFTY 
THOUSAND PESOS (P50A000.00) [Five hundred pesos (P500.00)] nor more 
than ONE MILLION PESOS (Plf000,000.00) {Three hundred thousand 
pesos (PSOO^OOO.00) depending on the gravity c^'the offense, and an additional 
fine of not [more] LESS than One thousand pesos (PI,000.00) FOR [or] each 
day of continuing violation."
Sec. 32. R. A. No. 7394 is hereby amended by inserting a new Article 185 under
13 
Title VI - Transitory and Final Provisions to read as follows:
14 
"ART. 185. CRIMINAL PENALTIES. - ANY PERSON WHO
15 
VIOLATES ANY PROVISION OF THIS ACT SHALL, UPON CONVICTION,
16 
BE SUBJECT TO A FINE OF NOT LESS THAN FIFTY THOUSAND PESOS
17 
(P50,000.00) BUT NOT MORE THAK ONE MILLION PESOS
18 
(P1,000,000.00) OR IMPRISONMENT OF NOT LESS THAN THREE (3)
19 
YEARS BUT NOT MORE THAN SEVEN (7) YEARS OR BOTH, UPON THE
20 
DISCRETION OF THE COURT."
21
22 
Sec. 33. Article 169, Title VI - Transitory and Final Provisions of R. A. No. 20
23 
7394 is hereby amended to read as follows:
24 
"Art. [T69] 187. Prescription. — All actions or claims accruing under the
25 
provisions of this Act and the rules and regulations issued pursuant thereto
26 
shall prescribe within [two-(-2)] THREE (3) years from the time the consumer
27 
transaction was consummated or the deceptive or unfair and unconscionable
28 
act or practice was committed and in case of hidden defects, from discovery
29 
thereof."
30
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Sec. 34. Renumbering of Articles, - Articles of R. A. No. 7394 are hereby 
renumbered accordingly.
Sec 35. Implementing Rules and Regulations. — Within sixty (60) days from 
the effectivity of this Act, the Council shall formulate the rules and regulations to 
effectively implement the provisions of this Act.
Sec. 36. Separability Clause. — If any portion Of" provision of this Act is declared 
unconstitutional, the remainder of this Act or any provisions not affected thereby shall 
remain in force and effect.
Sec. 37. Repealing Clause. — Any laws, presidential decrees or issuances, 
executive orders, letters of instruction, rules or regulations inconsistent with the 
provisions of this Act are hereby repealed or modified accordingly.
Sec. 38. Effectivity. - This Act shall take effect fifteen (15) days following its 
complete publication in two (2) newspapers of general drculafson or in the OTicial 
Gazette.
Approved,
23