SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
Second Regular Session 
) 
'15 
MAR 16 P5:13 
SENAT2G90 
S.B. No. 
• 
Introduced by: Senator Paolo Benigno "Bam" A. Aquino IV 
AN ACT 
GRANTING BROADER PROTECTION FOR CONSUMERS ADDING NEW PROVISIONS AND 
AMENDING CERTAIN PROVISIONS FOR THE PURPOSE REPUBLIC ACT NO. 7394, OTHERWISE 
KNOWN AS THE CONSUMER ACT OF THE PHILIPPINES 
EXPLANATORY NOTE 
One One ofthe 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. 
Part of the continued support is to strengthen the consumer rights and responsibilities 
to not only produce smarter and more strategic buyers, rather, this is to push sellers to improve 
products and services to better cater to the public and better compete within the marketplace. 
Hence, in order to build stronger commercial systems and maintain thriving markets, 
there is a need to bolster the rights and responsibilities of consumers - and we need to do this 
at the soonest possible time. 
Thus, the measure aims to amend the 1992 Act in order to address the current issues of 
consumers and markets today. 
A particular section of the reforms is directed to the emerging markets, specifically, e-
commerce. In June of last year, the Philippines, along with Thailand, was reported to have the 
highest e-commerce growth in the ASEAN'. 
E-commerce brings a wealth of opportunities and benefits to consumers such as a 
variety of choices, ease in comparing prices, and convenience. 
However, there are also disadvantages, which include the inability to experience the 
product before purchase, risk of fraud, scams, and other security issues. 
I Bernie Maglikat. Manila Bulletin. June 26, 2014. "PH, Thailand highest eCommerce growth'ln ASEAN". Last 
accessed 3.11.2015. <http://www.mb.com.ph/ph-thailand-highest-ecommerce-growth-in-asean/> 


With the growth of e-commerce in the country and the looming influx of products and 
services from around the region due to the ASEAN integration, not to mention the expected 
growth of our locally grown businesses, we must ensure that our consumers are better 
informed and adequately protected as soon as possible. 
In view of the foregoing, the approval of this bill is earnestly sought. 
S.,,'o, ,.flt:.;.o .~ r:. A'£ IV 
2 


SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
Second Regular Session 
) 
'15 
MAR 16 1'5:13 
SENAT2G9 
S.B. No. 
9 
Introduced by: Senator Paolo Benigno "Bam" A. Aquino IV 
AN ACT 
GRANTING BROADER PROTECTION FOR CONSUMERS ADDING NEW PROVISIONS 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: 
CHAPTER 1 
2 
AMENDMENTS TO TiTlE I 
3 
(GENERAL PROVISIONS) 
4 
CHAPTER I 
5 
GENERAL PROVISIONS 
6 
SECTION 1. Short Title. - This Act shall be known as "The Consumer Act of the Philippines, AS 
7 
AMENDED", as amended. 
8 
SECTION 2. Article 2 is hereby amended to read as follows: 
9 
"Art. 2. Declaration of Policy. - It is the policy of the State to protect the interests of 
10 
the consumer, promote his general welfare and to establish standards of conduct for 
11 
business and industry. THE STATE RECOGNIZES THAT CONSUMERS OFTEN FACE 
12 
IMBALANCES IN ECONOMIC STATUS, EDUCATIONAL LEVELS AND BARGAINING POWER. 
13 
IT FURTHER RECOGNIZES THAT CONSUMERS SHOULD HAVE THE RIGHT OF ACCESS TO 
14 
NON-HAZARDOUS PRODUCTS, AS WELL AS THE RIGHT TO PROMOTE JUST, EQUITABLE 
15 
AND SUSTAINABLE ECONOMIC AND SOCIAL DEVELOPMENT AND ENVIRONMENTAL 
16· 
PROTECTION. 
Towards this end, the State shall implement measures to attain the 
17 
following objectives: 
18 
a. TO ACHIEVE AND MAINTAIN ADEQUATE PROTECTION FOR THE POPULATION AS 
19 
CONSUMERS; 
20 
b. TO FACILITATE PRODUCTION AND DISTRIBUTION PATTERNS RESPONSIVE TO THE 
21 
NEEDS AND DESIRES OF CONSUMERS; 
22 
C. TO ENCOURAGE HIGH LEVELS OF ETHICAL CONDUCT FOR THOSE ENGAGED IN THE 
23 
PRODUCTION AND DISTRIBUTION OF GOODS AND SERVICES TO CONSUMERS; 
24 
d. TO CURB ABUSIVE BUSINESS PRACTICES BY ALL ENTERPRISES WHICH ADVERSELY 
25 
AFFECT CONSUMERS; 


e. TO FACILITATE THE DEVELOPMENT OF INDEPENDENT CONSUMER GROUPS; 
2 
f. 
TO 
FOSTER 
INTERNATIONAL 
COOPERATION 
IN 
THE 
FIELD 
OF 
CONSUMER 
3 
PROTECTION; 
4 
g. TO ENCOURAGE THE DEVElOPMENT OF MARKET CONDITIONS WHICH PROVIDE 
5 
CONSUMERS WITH GREATER CHOICE AT LOWER PRICES; AND 
6 
h. TO PROMOTE SUSTAINABLE CONSUMPTION." 
7 
[a) Protection against hazards to health and safety; 
8 
b) Protection against deceptive, unfair and unconscionable sales acts and practices; 
9 
c) Provision of information and education to facilitate sound choice and the proper 
10 
exercise of rights by the consumer; 
II 
d) Provision of adequate rights and means of redress; and 
12 
e) Involvement of consumer representatives in the formulation of social and economic 
13 
policies.} 
14 
SECTION 3. A new Article to denominated as Article 2-A is hereby added after Article 2 of the 
15 
same Act to read as follows: 
16 
"ART. 2-A. CONSUMER RIGHTS -THE CONSUMER RIGHTS ARE: 
17 
18 
a) RIGHT TO BASIC NEEDS -
THE CONSUMER SHALL HAVE ACCESS TO FOOD, 
19 
CLOTHING, 
SHELTER, 
HEALTH 
CARE, 
EDUCATION 
AND 
SANITATION 
IN 
20 
ACCORDANCE WITH HIS ECONOMIC STATUS. 
21 
b) RIGHT TO CHOOSE -
THE CONSUMER SHALL HAVE ACCESS TO CHOOSE 
22 
PRODUCTS AT COMPETITIVE PRICES WITH AN ASSURANCE OF SATISFACTORY 
23 
QUALITY. 
24 
c) 
RIGHT TO REPRESENTATION - THE CONSUMER SHALL BE ENTITLED TO EXPRESS 
25 
CONSUMER INTERESTS AND BE INVOLVED IN THE MAKING AND EXECUTION OF 
26 
GOVERNMENT POLICIES. 
27 
d) RIGHT TO 
REDRESS 
-
THE 
CONSUMER SHALL 
HAVE 
ACCESS 
TO 
THE 
28 
APPROPRIATE 
REMEDIES 
FOR 
MISREPRESENTATION, 
SUBSTANDARD 
OR 
29 
DEFECTIVE GOODS OR UNSATISFACTORY SERVICES. 
30 
e) RIGHT TO CONSUMER EDUCATION - THE CONSUMER SHALL HAVE ACCESS TO 
31 
ACQUIRE THE KNOWLEDGE AND SKILLS NECESSARY TO MAKE AN INFORMED 
32 
CHOICE. 
33 
f) 
RIGHT TO SAFETY -
THE CONSUMER SHALL BE ENTITLED TO PROTECTION 
34 
AGAINST THE MARKETING OF GOODS OR PROVISION OF SERVICES THAT ARE 
35 
HAZARDOUS TO HEALTH AND LIFE. 
36 
g) RIGHT TO A HEALTHY ENVIRONMENT. - THE CONSUMER SHALL HAVE ACCESS TO 
37 
LIVE AND WORK IN AN ENVIRONMENT WHICH IS NEITHER THREATENING NOR 
38 
DANGEROUS AND WHICH PERMITS A LIFE OF DIGNITY AND WELL-BEING." 
39 
h) RIGHT TO 
INFORMATION -
THE 
CONSUMER SHALL HAVE 
ACCESS 
TO 
40 
PROTECTION AGAINST DISHONEST OR MISLEADING ADVERTISING OR LABELING 
41 
AND SHOULD BE PROVIDED WITH THE FACTS AND INFORMATION NEEDED TO 
42 
MAKE AN INFORMED CHOICE." 
43 
SECTION. 4. A new Article denominated as Article 2-B is hereby added after the new Article 2-A 
44 
of the same Act which shall read as follows: 
45 
"ART. 2-B. CONSUMER RESPONSIBILITIES. -THE CONSUMER RESPONSIBILITIES ARE: 
46 
a) CRITICAL AWARENESS - THE CONSUMER SHALL BE ALERT AND INQUISITIVE 
47 
ABOUT THE USE OF, THE PRICE AND QUALITY OF GOODS AND SERVICES; 
48 
b) ACTION -
THE CONSUMER SHALL ASSERT AND ACT TO ENSURE THAT 
49 
CONSUMERS WILL ALWAYS GET A FAIR DEAL TAKING INTO CONSIDERATION 
2 


1 
THAT AS LONG AS A CONSUMER REMAINS PASSIVE, CONSUMERS WILL 
2 
CONTINUE TO BE EXPLOITED; 
3 
c) SOCIAL CONCERN - THE CONSUMER SHALL BE MORE AWARE OF THE IMPACT 
4 
OF ONE'S CONSUMPTION ON OTHER CITIZENS, ESPECIALLY DISADVANTAGED 
5 
OR 
POWERLESS GROUPS, WHETHER 
IN THE 
LOCAL, 
NATIONAL, OR 
6 
INTERNATIONAL COMMUNITY; 
7 
d) ENVIRONMENTAL AWARENESS - THE CONSUMER SHALL UNDERSTAND THE 
8 
ENVIRONMENTAL 
CONSEQUENCES 
OF 
ONE'S 
CONSUMPTION. 
THE 
9 
CONSUMER SHOULD RECOGNIZE INDIVIDUAL AND SOCIAL RESPONSIBILITY 
10 
TO CONSERVE NATURAL RESOURCES AND PROTECT THE EARTH FOR FUTURE 
11 
GENERATIONS; AND 
12 
e) SOLIDARITY - THE CONSUMER SHALL ORGANIZE INTO AN ASSOCIAION TO 
13 
DEVELOP THEIR 
STRENGTH 
AND 
INFLUENCE 
THE 
PROMOTION 
AND 
14 
PROTECTION OF THEIR INTERESTS." 
15 
SECTION. 5. Article 4 of the same Act is hereby amended to read as follows: 
16 
17 
"ART. 4. Definition of Terms. - For purposes of this Act, the term: 
18 
xxx 
xxx 
xxx 
19 
n) 
"Consumer" means a natural person who is a purchaser, lessee, 
20 
recipient or prospective purchaser, lessor or recipient of consumer products, 
21 
services, [or] credit, TECHNOlOGY, ADVERTISING OR PROMOTION, AND 
22 
OTHER ITEMS IN COMMERCE. 
23 
24 
25 
26 
27 
28 
29 
30 
31 
xxx 
xxx 
xxx 
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. 
xxx 
xxx 
xxx 
w) "Credit card" means any card for USE UPON PRESENTATION TO PAY 
FOR CONSUMER PRODUCTS AND SERVICES. 
xxx 
xxx 
xxx 
32 
at) "Mass media" refers to any means or methods used to convey 
33 
advertising messages to the public such as television, radio, INTERNET, 
34 
MOBILE PHONES AND SIMILAR ElECTRONIC DEVICES, magazines, cinema, 
35 
billboards, posters, streamers, hand bills, leaflets, mails and the like. 
36 
xxx 
xxx 
xxx 
37 
bm) 
"Sales Promotion" means techniques INTENDED TO PROMOTE 
38 
AND/OR INCREASE THE SALES, PATRONAGE, AND/OR GOODWill OF A 
39 
PRODUCT OR SERVICE AND intended for broad consumer participation which 
40 
contain promises of gain such as prizes, in cash or in kind, OR AN 
41 
OPPORTUNITY TO WIN ANY PRIZES OR FREE SERVICES, OR GIFT, OR ANY 
42 
SIMILAR SCHEME, as reward for TRANSACTING 
FOR, RECEIVING, OR 
3 


1 
PURCHASING [the purchase of] a product, security, service or winning in 
2 
contest, game, tournament and other similar competitions OR CHALLENGES 
3 
which involve determination of winner/s and which utilize mass media or 
4 
other widespread media of information such as INFORMATION AND 
5 
COMMUNICATIONS TECHNOLOGY. 
6 
xxx 
xxx 
xxx 
7 
bn) 
"Seller" means a person engaged in the business of selling consumer 
8 
products AND SERVICES directly to consumers. It shall include a supplier or 
9 
distributor if (1) the seller is a subsidiary or affiliate of the supplier or 
10 
distributor; (2) the seller interchanges personnel or maintains common or 
11 
overlapping officers or directors with the supplier or distributor; or (3) the 
12 
supplier or distributor provides or exercises supervision, direction or control 
13 
over the selling practices of the seller. 
14 
xxx 
xxx 
xxx 
15 
16 
br) 
"Standard" means a set of conditions to be fulfilled to ensure the 
quality and safety of a product AND SERVICE; 
17 
xxx 
xxx 
xxx 
18 
CHAPTER 2 
19 
AMENDMENTS TO TiTlE II 
20 
(CONSUMER PRODUCT QUALITY AND SAFETY) 
21 
CHAPTER I 
22 
CONSUMER PRODUCT QUALITY AND SAFETY 
23 . 
SECTION 6. Article 8 of the Consumer Act is hereby amended to read as follows: 
24 
"ART. 8 Publications of Consumer Product Standards. - The concerned department 
25 
shall, upon promulgation of the above standards, publish or cause the publication of the 
26 
same EITHER in a newspaper of general circulation, in the OFFICIAL GAZETIE, OR IN THE 
27 
DEPARTMENTS/AGENCY'S OFFICIAL WEB PORTAL. It may likewise conduct an 
28 
information campaign through other means deemed effective to ensure the proper 
29 
guidance of consumers, businesses, industries and other sectors concerned." 
30 
SECTION 7. Article 10 of the Consumer Act of the Philippines is hereby amended to read as 
31 
follows: 
32 
"ART. 10. Injurious, Dangerous and Unsafe Products. - Whenever the departments find, 
33 
by their own initiative or by petition of a consumer, that a consumer product is found to 
34 
be injurious, unsafe or dangerous, it shall, after due notice and hearing, make the 
35 
appropriate order for its recall, prohibition or seizure from public sale or distribution: 
36 
Provided, That, in the sound discretion of the department it may declare a consumer 
37 
product to be imminently injurious, unsafe or dangerous, and order is immediate recall, 
38 
ban or seizure from public sale or distribution, in which case, the seller, distributor, 
39 
manufacturer or producer thereof shall be afforded a hearing within forty-eight (48) 
40 
hours from such order: PROVIDED, FURTHER, ANY ESTABLISHMENT CAUGHT IN THE ACT 
4 


OF 
SELLING, 
DISTRIBUTING, 
MANUFACTURING, 
PRODUCING, 
DISPLAY 
OR 
2 
IMPORTATION OF SUBSTANDARD AND HAZARDOUS PRODUCTS SHALL AUTHORIZE THE 
3 
IMPLEMENTING AGENCIES TO CLOSE AND SHUT DOWN THE BUSINESS PREMISES. 
4 
The ban on the sale and distribution of a consumer product adjudged injurious, unsafe 
5 
or dangerous, or imminently injurious, unsafe or dangerous under the preceding 
6 
paragraph shall stay in force until such time that its safety can be assured or measures 
7 
to ensure its safety have been established." 
8 
SECTION 8. Article 11 ofthe Consumer Act is hereby amended to read as follows: 
9 
"ART. 11. Amendment and Revocation of Declaration of the Injurious, Unsafe or 
10 
Dangerous Character of a Consumer Product. - Any interested person may petition 
11 
the appropriate department to commence a proceeding for the issuance of an 
12 
amendment or revocation of a consumer product safety rule or an order declaring a 
13 
consumer product injurious, dangerous and unsafe. 
14 
In case the department, upon petition by an interested party or its own initiative and 
15 
after due notice and hearing, determines a consumer product to be substandard or 
16 
materially defective, it shall so notify the manufacturer, distributor or seller thereof of 
17 
such finding and order such manufacturer, distributor or seller to WITHOUT DELAY: 
18 
a) ISSUE PRODUCT RECALL AND give notice to the public of the defect or failure 
19 
to comply with the product safety standards; 
20 
b) Give notice to each distributor or seller of such product; and 
21 
c) GIVE NOTICE TO EVERY PERSON TO WHOM SUCH CONSUMER PRODUCT 
22 
WAS DELIVERED OR SOLD." 
23 
The department shall also direct the manufacturer, distributor or seller of such product 
24 
to extend WITHIN REASONABLE TIME any or all of the following remedies to the 
25 
injured person: 
26 
a) To bring such product into conformity with the requirements of the applicable 
27 
consumer product standards or to repair the defect in order to conform with the 
28 
same; 
29 
b) To replace the product with a like or equivalent product which complies with 
30 
the applicable consumer product standards which does not contain the defect; 
31 
c) To refund the purchase price of the product less a reasonable allowance for 
32 
use; and 
33 
d) To pay the consumer reasonable damages as may be determined by the 
34 
department. 
35 
The manufacturer, distributor or seller shall not charge a consumer who avails himself 
36 
of the remedy as provided above of any expense and cost that may be incurred." 
37 
CHAPTER 3 
38 
AMENDMENTS TO TITLE III 
5 


(PROTECTION AGAINST DECEPTIVE, UNFAIR AND UNCONSCIONABLE SALES ACTS OR 
2 
PRACTICES) 
3 
CHAPTER I 
4 
DECEPTIVE, UNFAIR AND UNCONSCIONABLE SALES ACTS OR PRACTICES 
5 
REGULATION OF SALES ACTS AND PRACTICES 
6 
SECTION 9. Article 52 of the Consumer Act of the Philippines is hereby amended to read as 
7 
follows: 
8 
"ART. 52. Unfair or Unconscionable Sales Act or Practice. - An unfair or unconscionable sales 
9 
act or practice by a seller or supplier in connection with a consumer transaction violates this 
10 
Chapter whether it occurs before, during or after the consumer transaction. An act or 
11 
practice shall be deemed unfair or unconscionable whenever the producer, manufacturer, 
12 
distributor, supplier or seller, by taking advantage of the consumer's physical or mental 
13 
infirmity, ignorance illiteracy, lack of time or the general conditions of the environment or 
14 
surroundings, induces the consumer to enter into a sales or lease transaction inimical to the 
15 
interests of the producer, manufacturer, distributor, supplier or seller. 
16 
In determining, whether an act or practice is unfair and unconscionable, the following 
17 
circumstances shall be considered: 
18 
a) That the producer, manufacturer, distributor, supplier or seller took advantage of 
19 
the inability of the consumer to reasonably protect his interest because of inability 
20 
to understand the language of an agreement, or similar factors; 
21 
b) That when the consumer transaction was entered into, the price grossly exceeded 
22 
the price at which similar products or services were readily obtainable in similar 
23 
transaction by like consumers; 
24 
c) That when the consumer transaction was entered into the consumer was unable to 
25 
receive'a substantial benefit from the subject of transaction; 
26 
d) That when the consumer transaction was entered into, the seller or supplier was 
27 
aware that there was no reasonable probability or payment of the obligation in full 
28 
by the consumer; 
29 
e) That the transaction that the seller or supplier induced the consumer to enter into 
30 
was excessively one-sided in favor of the seller or supplier SUCH AS BUT NOT 
31 
LIMITED TO: 
32 
1) THAT WHEN THE CONSUMER TRANSACTION WAS ENTERED INTO, 
33 
THE SELLER OR SUPPLIER IMPOSES UPON THE CONSUMER TERMS 
34 
AND CONDITIONS GROSSLY DISADVANTAGEOUS TO THE LAnER 
35 
WHO IS REDUCED TO THE ALTERNATIVE OF ACCEPTING THE 
36 
CONTRACT 
OR 
LEAVING 
IT, 
COMPLETELY DEPRIVED 
OF 
THE 
37 
OPPORTUNITY TO BARGAIN ON EQUAL FOOTING; AND 
38 
2) 
THE SELLER OR SUPPLIER EMPLOYS AN AGGRESSIVE MARKETING 
39 
PRACTICE THAT SIGNIFICANTLY CONSTRAINS OR IMPAIRS OR IS 
40 
LIKELY TO SIGNIFICANTLY CONSTRAIN OR IMPAIR THE AVERAGE 
41 
CONSUMER'S FREEDOM OF CHOICE OR CONDUCT WITH REGARD TO 
42 
THE PURCHASE OF A PRODUCT OR SERVICE THAT CAUSES HIM/HER 
6 


2 
3 
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." 
CHAPTER II 
4 
5 
REGULATION OF PRACTICES RELATIVE TO WEIGHT AND MEASURES 
6 
7 
SECTION 10. Article 62 of the Consumer Act of the Philippines is hereby amended to read as 
8 
follows: 
9 
"ART. 62. Sealing and Testing of Instruments of Weights and Measure. -
All 
10 
instruments for determining weights and measures in all consumer and consumer 
11 
related transactions shall be tested, calibrated and sealed every six (6) months by the 
12 
official sealer who shall be the Provincial or City or Municipal Treasurer or his 
13 
authorized representative SUCH AS THE MARKET ADMINISTRATOR upon payment of 
14 
fees required under existing law: Provided, That all instruments of weights and 
15 
measures shall continuously be inspected for compliance with the provisions of this 
16 
Chapter. 
17 
CHAPTER III 
18 
CONSUMER PRODUCT AND SERVICE WARRANTIES 
19 
SECTION 11. Article 68 of the Consumer Act of the Philippines is hereby amended to read as 
20 
follows: 
21 
"ART. 68. Additional Provisions on Warranties. - In addition to the Civil Code provisions 
22 
on sale with warranties, the following provisions shall govern the sale of consumer 
23 
products with warranty: 
24 
xxx 
25 
. 26 
(f) Breach of warranties. -
xxx 
27 
(3) MANUFACTURERS OR DISTRIBUTORS MUST MAINTAIN A CONSUMER 
28 
HOTLINES OR SERVICE CENTERS THAT CONSUMERS CAN EASILY REACH FOR 
29 
COMPLAINTS AND INQUIRIES BY PHONE, EMAIL, OR OTHER EFFECTIVE MEANS. 
30 
CONSUMERS MUST NOT BE MADE TO SUFFER GREAT INCONVENIENCES IN 
31 
CONTACTING MANUFACTURERS TO CLAIM WARRANTIES AND OTHER NEEDED 
32 
SERVICES." 
33 
x x x 
34 
CHAPTER IV 
35 
LABELING AND FAIR PACKAGING 
36 
SECTION 12. A new Article denominated as Article 77-A is hereby inserted after Article 77 of 
37 
the same Act which shall read as follows: 
38 
"ART. 77-A. ENGLISH OR FILIPINO TRANSLATION OF PRODUCT LABELS WRIITEN IN 
39 
FOREIGN CHARACTERS!LANGUAGES. - CONSUMER PRODUCTS WITH PRODUCT LABElS 
7 


1 
WRITIEN IN FOREIGN CHARACTERS/LANGUAGE SHALL BE ALLOWED ENTRY INTO THE 
2 
COUNTRY 
AND 
INTRODUCED 
INTO 
COMMERCE 
PROVIDED 
THEY 
HAVE 
A 
3 
CORRESPONDING ENGLISH OR PILIPINO TRANSLATION TO ENABLE THE AUTHORITIES TO 
4 
DETERMINE WHETHER THE PRODUCT HAS COMPLIED WITH ALL THE OTHER LABELING 
5 
REQUIREMENTS AS WELL AS PROVIDE THE CONSUMERS PROPER GUIDANCE ON THE 
6 
CONTENTS AND SOURCE / ORIGIN OF THE PRODUCT." 
7 
SECTION 13. Article 79 of the Consumer Act is hereby amended to read as follows: 
8 
"ART 79. Authority of the Concerned Department to Provide for Additional Labeling and 
9 
Packaging Requirements. - Whenever the concerned department determines that 
10 
regulations covering requirements other than those prescribed in Section 77 hereof are 
11 
necessary to prevent the deception of the consumer or to facilitate value comparisons 
12 
as to any consumer product, it may issue such rules and regulations to: 
13 
a) Establish and define standards for characterization of the size of a package 
14 
enclosing any consumer product which may be used to supplement the label 
15 
statement of net quality, of contents of packages containing such products but this 
16 
clause shall not be construed as authorizing any limitation on the size, shape, 
1,7 
weight, dimensions, or number of packages which may be used to enclose any 
18 
product; 
19 
b) Regulate the placement upon any package containing any product or upon any 
20 
label affixed to such product of any printed matter stating or representing by 
21 
implication that such product is offered for retail at a price lower than the ordinary 
22 
and customary retail price or that a price advantage is accorded to purchases 
23 
thereof by reason of the size of the package or the quantity of its contents; 
24 
c) Prevent the non-functional slack-fill of packages containing consumer products. 
25 
d.) 
THE 
CONCERNED 
DEPARTMENT 
MAY 
LIKEWISE 
ISSUE 
SUCH 
OTHER 
26 
REQUIREMENTS AS MAY BE PRESCRIBED BY REGULATIONS TO ENSURE THE SAFETY, 
27 
EFFICACY AND QUALITY OF HEALTH PRODUCTS" 
28 
For purposes of paragraph (c) of this Article, a package shall be deemed to be 
29 
nonfunctionally slack-filled if it is filled to substantially less than its capacity for reasons 
30 
other than (1) protection of the contents of such package, (2) the requirements of 
31 
machines used for enclosing the contents in such package, or (3) inherent 
32 
characteristics of package materials or construction being used. 
33 
CHAPTER V 
34 
LIABIlITY FOR PRODUCTS AND SERVICES 
35 
SECTION 14. Article 103 of the Consumer Act of the Philippines is hereby amended to read as 
36 
follows: 
37 
"ART. 103. Repair Service Obligation. When services are provided for the repair of any 
38 
product, the supplier shall be considered implicitly bound to use adequate, new, 
39 
original replacement parts, or those that maintain the manufacturer's technical 
40 
specifications unless, otherwise authorized, as regards to the latter by the consumer. 
41 
IN 
PROVIDING SERVICE 
OR 
REPAIR AS 
REQUIRED 
UNDER THIS ARTICLE, THE 
42 
MANUFACTURER MUST INFORM THE CONSUMER ABOUT WHICH PARTICULAR PARTS 
8 


1 
OF THE GOODS ARE DAMAGED AND HAVE TO BE REPAIRED. THE CONSUMER SHALL BE 
2 
GIVEN THE OPTION TO REPLACE ONLY THE DAMAGED PARTS." 
3 
CHAPTER VI 
4 
FALSE, DECEPTIVE AND MISLEADING ADVERTISEMENT 
5 
SECTION 15. Article 110 of the Consumer Act of the Philippines is hereby amended to read as 
6 
follows: 
7 
"ART. 110. False, Deceptive or Misleading Advertisement. - It shall be unlawful for any 
8 
person to disseminate or to cause the dissemination of any false, deceptive or 
9 
misleading advertisement by Philippine mail or in commerce by print, radio, television, 
10 
outdoor advertisement, INTERNET, MOBILE PHONE, or other medium for the purpose of 
11 
inducing or which is likely to induce directly or indirectly the purchase of consumer 
12 
products or services. 
13 
x x x 
14 
PROMOTION OF SALES OF CONSUMER PRODUCTS AND SERVICES 
15 
SECTION 16 .. Article 116 of the Consumer Act of the Philippines is hereby amended to read as 
16 
follows: 
17 
"ART. 116. 
Permit to Conduct Promotion. -
No person shall conduct any sales 
18 
campaigns, including beauty contest, national in character, sponsored and promoted by 
19 
PRODUCERS, 
RETAILERS, 
SELLERS, 
DISTRIBUTORS, 
SUPPLIERS, 
IMPORTERS, 
OR 
20 
manufacturing enterprises without first securing a permit from the concerned 
21 
department AND SUCH APPLICATION SHALL IMMEDIATELY BE APPROVED UPON THE 
22 
FILING OF THE APPLICATION. IN CERTAIN SALES PROMOTION APPLICATION THAT MAY 
23 
REQUIRE EVALUATION prior to the commencement thereof, the same shall be deemed 
24 
approved and the promotion campaign or activity SHALL BE COMMENCED WITHIN FIVE 
25 
(5) DAYS FROM ITS FILING: Provided, That any sales promotion campaign using medical 
26 
prescriptions or any part thereof or attachment thereto for raffles or a promise of 
27 
reward shall not be allowed, nor a permit be issued thereof. 
28 
ALL HOLDERS OF SALES PROMOTION PERMIT SHALL PROVIDE TO THE CONCERNED 
29 
DEPARTMENT A COpy OF ITS PROMOTIONAL MATERIALS FOR POST AUDIT NOT LATER 
30 
THAN THE PUBLICATION, RELEASE, OR LAUNCH DATE, WHICHEVER IS EARLIER." 
31 
CHAPTER 4 
32 
33 
AMENDMENTS TO TITLE IV 
34 
(CONSUMER CREDIT TRANSACTION) 
35 
SECTIQN 17. A new Article denominated as Article 131-A is hereby inserted after Article 131 of 
36 
the same Act which shall read as follows: 
37 
"ART. 131-A. IMPLEMENTING AGENCY. - THE BANGKO SENTRAL NG PILIPINAS (BSP) 
38 
SHALL IMPLEMENT AND ENFORCE THE PROVISIONS OF THIS CHAPTER AND ITS 
39 
IMPLEMENTING RULES AND REGULATIONS EXCEPT AS OTHERWISE PROVIDED BY LAW" 
40 
CHAPTER 5 
9 


I 
AMENDMENTS TO TITLE V 
2 
(THE NATIONAL CONSUMER AFFAIRS COUNCIL (NCAC) 
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CHAPTER I 
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ESTABLISHMENT AND COMPOSITION 
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SECTION 18. Article 149 of the Consumer Act of the Philippines is hereby amended to read as 
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follows: 
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"ART 149. Composition. The Council shall be composed of representatives from the 
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following government agencies and non-government agencies: 
a) 
Department of Trade And Industry; 
b) 
DEPARTMENT OF EDUCATION [Department of Education, Culture and Sports]; 
C) 
Department of Health; 
d) 
Department of Agriculture; 
e) 
DEPARTMENT OF ENERGY; 
f) 
BANGKO SENTRAL NG PILIPINAS; 
g) 
Four (4) representatives from consumer organizations to be appointed 
by the President 
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h) 
Two (2) representatives from the business industry/sector to be appointed by 
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the President; 
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SECTION 19. Article 151 of the Consumer Act is·hereby amended to read as follows: 
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"ART. 151. Per Diems of Members. -
The members of the Council, EXCLUDING THE 
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REPRESENTATIVES FROM THE GOVERNMENT AGENCIES shall be entitled to an allowance 
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of FIVE THOUSAND PESOS (P5, 000.00) [five hundred pesos (P500.00) per meeting actually 
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attended] PER MONTH." 
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SECTION 20. Article 152 of the Consumer Act is hereby amended to read as follows: 
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"ART. 152. 
The Secretariat. -
The Council shall appoint an Executive Director who shall 
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assist the Chairman and act as Secretary of the Council. The COUNCIL SHALL LIKEWISE 
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HIRE AND SELECT ITS OWN EMPLOYEES AND FOR THIS PURPOSE provide ITS OWN 
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Secretariat which shall assist the Council in the effective performance of its functions." 
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SECTION 21. A new Article is hereby inserted to the Consumer Act of the Philippines to read as 
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follows: 
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"Article lS2-A. 
THE COUNCIL SHALL HAVE AN ANNUAL BUDGET IN THE AMOUNT 
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NECESSARY FOR THE EFFECTIVE IMPLEMENTATION OF THEIR FUNCTIONS AND WHICH 
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SHALL BE A SEPARATE LINE ITEM AND INCLUDED IN THE GENERAL APPROPRIATION 
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ACT." 
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CHAPTER III 
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CONSUMER COMPLAINTS 
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SECTION 22. Article 164 of the Consumer Act of the Philippines is hereby amended to read as 
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follows: 
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"Article 164. Sanctions. -
After investigation, any of the following administrative 
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penalties may be imposed even if not prayed for in the complaint: 
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xxx 
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i) the imposition of administrative fines in such amount as deemed reasonable by the 
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5ecretary, which shall in no case be less than FIFTY THOUSAND PESOS (Php 50,000) 
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NOR MORE THAN TEN MILLION PESOS (Php 10,000,000) AND WHICH AMOUNT OF 
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FINES SHALL BE COMPUTED ON THE FIVE PERCENT (5%) OF THE GROSS VALUE OF 
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SALES OF THE CONSUMER PRODUCT AND SERVICES SUBJECT OF A CONSUMER 
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COMPLAINT. 
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CHAPTER 6 
II 
AMENDMENTS TO TITLE VI 
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(TRANSITORY AND FINAL PROVISIONS) 
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SECTION 23. Separability Clause. If any part or parts of this Act should, for any reason, be 
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declared invalid or unconstitutional, the part or parts thereof unaffected shall thereby continue 
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to remain in full force and effect. 
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SECTION 24. Repealing Clause. All laws, decrees, executive order, rules and regulations and 
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other issuances consistent with this Act is hereby repealed or amended accordingly. 
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SECTION 25. Effectivity. This Act shall take effect fifteen (15) days from the date of publication 
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in at least two (2) newspapers of general circulation. 
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Approved, 
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