SEVENTEENTH CONGRESS OF THE 
]
REPUBLIC OF THE PHILIPPINES 
]
Second Regular Session 
]
SENATE
S.B. No. ^ ^ ^ 8 9
1 ^ 1  
^eniitp
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c( liir f/i'ri rinrp
'17 JUN13 A10:15
RECtlA/f.O 8“:
Introduced by SEN. SHERWIN “WIN” GATCHALIAN
AN ACT
GRANTING BROADER PROTECTION FOR CONSUMERS, AMENDING FOR 
THE PURPOSE REPUBLIC ACT NO. 7394, OTHERWISE KNOWN AS “THE 
CONSUMER ACT OF THE PHILIPPINES”
EXPLANATORY NOTE
Section 13, Article XII of the 1987 Constitution provides:
“Sec. 13. The State shall pursue a trade policy that serves 
the general welfare and utilizes all forms and arrangements of 
exchange on the basis of equality and reciprocity.”
Pursuant to the above stated policy, Congress enacted in 1992 
Republic Act No. 7394, otherwise known as the “Consumer Act of the 
Philippines,” to ensure the protection of the interests of the consumer, 
promote the general welfare and to establish standards of conduct for 
business and industiy. Since its enactment more than 20 years ago, man\r 
provisions of RA 7394 are no longer applicable and adequate to address the 
prevailing situations at present. Hence, amendments to RA 7394 are 
imperative.
Thus, this bill seeks to provide a broader protection for consumers 
and strengthen their rights by enshrining a Consumer Bill of Rights under 
Article 2-A. Included under such rights are the rights of the consumer to 
basic needs; to choose products at competitive prices with an assurance of 
satisfactory quality; right to consumer education; right to safety and a 
healthy environment, and right to information. This measure also mandates 
that any product with product labels written in foreign language or 
characters shall have a corresponding English or Filipino translation to 
enable the appropriate authorities to determine whether such product has


complied with all the other labeling requirements as wells as provide the 
consumers proper guidance on the contents and source or origin of the 
product. Likewise, this bill contains an avenue for redress where the 
consumer can ask for compensation as a result of misrepresentation, 
substandard or defective goods or unsatisfactory services of any seller, 
manufacturer or distributor.
Corrolarily, this bill requires that any advertisement for a consumer 
product must provide relevant and truthful information on products and 
services to help the general public to make informed choices. Any specific 
claim or attribute with respect to such product or service shall be 
substantiated and shall only include genuine and truthful testimonial 
claims.
Accordingly, this measure aims to increase the penalties of RA 7394 
as the existing penalties no longer ensure compliance and neither does it 
deter violations to the provisions of the law.
Thus, in view of the foregoing, 
earnestly sought.
ediate passage of this bill is
SHERWIN T. GATC
I


'J.
SEVENTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
SENATE
S.B. No. 
1 4 8 9
Senate
juiv' (9(firf of t!)f tTJcrrrtsr^
’17 JUN13 A10:15
RECEIVi:r'i:D BV: 
^
Introduced by SEN. SHERWIN “WIN” GATCHALIAN
AN ACT
GRANTING BROADER PROTECTION FOR 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:
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SECTION 1. Short Title. -  This Act shall be known as the “Consumer
Act of 2017.”
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SEC. 2. Article 2 of Republic Act No. 7394, otherwise known as the
"Consumer Act of the Philippines, ” is hereby amended to read as follows:
“ART. 2. Declaration of Policy. -  It is the policy of the State 
to protect the interests of the consumer, promote his general 
welfare and to establish standards of conduct for business and 
industry. THE STATE RECOGNIZES THAT CONSUMERS 
OFTEN 
FACE 
IMBALANCES 
IN 
ECONOMIC 
STATUS, 
EDUCATIONAL LEVELS AND BARGAINING POWER. 
IT 
FURTHER RECOGNIZES THAT CONSUMERS SHOULD HAVE
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THE RIGHT OF ACCESS TO NON-HAZARDOUS PRODUCTS,


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AS WELL AS THE RIGHT TO PROMOTE JUST, EQUITABLE 
AND SUSTAINABLE ECONOMIC AND SOCIAL DEVELOPMENT 
AND ENVIRONMENTAL PROTECTION. Towards this end, the 
State shall implement measures to attain the following 
objectives:
[(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.]
A) 
TO 
ACHIEVE 
AND 
MAINTAIN 
ADEQUATE 
PROTECTION FOR THE CONSUMERS;
B) 
TO 
FACILITATE 
PRODUCTION 
AND 
DISTRIBUTION PATTERNS RESPONSIVE TO THE NEEDS 
AND DESIRES OF CONSUMERS;
C) 
TO ENCOURAGE HIGH LEVELS OF ETHICAL 
CONDUCT FOR THOSE ENGAGED IN THE PRODUCTION AND 
DISTRIBUTION OF GOODS AND SERVICES TO CONSUMERS;
D) 
TO CURB ABUSIVE BUSINESS PRACTICES BY 
ALL 
ENTERPRISES 
WHICH 
ADVERSELY 
AFFECT 
CONSUMERS;
E) 
TO 
FACILITATE 
THE 
DEVELOPMENT 
OF


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INDEPENDENT CONSUMER GROUPS;
F) 
TO FOSTER INTERNATIONAL COOPERATION IN 
THE FIELD OF CONSUMER PROTECTION;
G) 
TO 
ENCOURAGE 
THE 
DEVELOPMENT 
OF 
MARKET CONDITIONS WHICH PROVIDE CONSUMERS WITH 
GREATER CHOICE AT LOWER PRICES; AND
H) 
TO PROMOTE SUSTAINABLE CONSUMPTION.”
SEC. 3. The following articles are hereby inserted after Article 2 of the 
same Act to read as follows:
“ART. 2-A. 
CONSUMER BILL OF RIGHTS -  THE 
GOVERNMENT, IN MAINTAINING AND STRENGTHENING 
THE PROMOTION OF CONSUMER INTEREST AND WELFARE 
IN HIS RELATION TO THE BUSINESS AND INDUSTRY 
PRACTICE 
AS 
WELL 
AS 
THE 
PRODUCTION 
AND 
DISTRIBUTION OF CONSUMER PRODUCTS, SHALL ADOPT 
MEASURES 
OR 
FORMULATE 
POLICES 
TAKING 
INTO 
ACCOUNT THE FOLLOWING BASIC CONSUMER RIGHTS:
A) 
RIGHT TO BASIC NEEDS - THE CONSUMER 
SHALL 
BE 
ENTITLED 
TO 
GUARANTEED 
SURVIVAL, 
ADEQUATE FOOD, CLOTHING, SHELTER, HEALTH CARE, 
EDUCATION AND SANITATION;
B) 
RIGHT TO CHOOSE -  THE CONSUMER SHALL 
BE ENTITLED TO CHOOSE PRODUCTS AT COMPETITIVE 
PRICES WITH AN ASSURANCE OF SATISFACTORY QUALITY;


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C) 
RIGHT TO REPRESENTATION -  THE CONSUMER 
SHALL BE ENTITLED TO EXPRESS CONSUMER INTERESTS 
AND BE INVOLVED IN THE FORMULATION AND EXECUTION 
OF GOVERNMENT POLICIES;
D) 
RIGHT TO REDRESS -  THE CONSUMER SHALL 
BE 
ENTITLED 
TO 
COMPENSATION 
FOR 
MISREPRESENTATION, 
SUBSTANDARD 
OR 
DEFECTIVE 
GOODS OR UNSATISFACTORY SERVICES;
E) 
RIGHT TO 
CONSUMER EDUCATION -  THE 
CONSUMER SHALL BE ENTITLED TO ACQUIRE THE 
KNOWLEDGE AND SKILLS NECESSARY TO MAKE AN 
INFORMED CHOICE;
F) 
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;
G) 
RIGHT TO A HEALTHY ENVIRONMENT -  THE 
CONSUMER SHALL BE ENTITLED TO LIVE AND WORK IN 
AN ENVIRONMENT WHICH IS NEITHER THREATENING NOR 
DANGEROUS AND WHICH PERMITS A LIFE OF DIGNITY 
AND WELL-BEING; AND
H) 
RIGHT TO INFORMATION -  THE CONSUMER 
SHALL 
BE 
ENTITLED 
TO 
PROTECTION 
AGAINST 
DISHONEST OR MISLEADING ADVERTISING OR LABELING


AND SHOULD BE PROVIDED WITH THE FACTS AND 
INFORMATION NEEDED TO MAKE AN INFORMED CHOICE.
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ART. 
2-B. 
CONSUMER 
RESPONSIBILITIES. 
-  
IN 
CONNECTION WITH THE BASIC RIGHTS STATED IN THE 
PRECEDING SECTION, THE CONSUMER SHALL EXERCISE 
THE FOLLOWING RESPONSIBILITIES:
A) 
CRITICAL 
AWARENESS 
- 
THE 
CONSUMER 
SHALL BE MORE ALERT AND INQUIRING ABOUT THE USE 
OF, THE PRICE AND QUALITY OF GOODS AND SERVICES;
B) 
ACTION - THE CONSUMER SHALL ASSERT AND 
ACT TO ENSURE THAT CONSUMERS WILL ALWAYS GET A 
FAIR DEAL TAKING INTO CONSIDERATION THAT AS LONG 
AS A CONSUMER REMAINS PASSIVE, CONSUMERS WILL 
CONTINUE TO BE EXPLOITED;
C) 
SOCIAL CONCERN - THE CONSUMER SHALL BE 
MORE AWARE OF THE IMPACT OF ONE’S CONSUMPTION 
ON OTHER CITIZENS, ESPECIALLY DISADVANTAGED OR 
POWERLESS 
GROUPS, 
WHETHER 
IN 
THE 
LOCAL, 
NATIONAL, OR INTERNATIONAL COMMUNITY;
D) 
ENVIRONMENTAL 
AWARENESS 
-  
THE 
CONSUMER SHALL UNDERSTAND THE ENVIRONMENTAL 
CONSEQUENCES 
OF 
ONE’S 
CONSUMPTION. 
THE 
CONSUMER SHOULD RECOGNIZE INDIVIDUAL AND SOCIAL 
RESPONSIBILITY TO CONSERVE NATURAL RESOURCES


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AND PROTECT THE EARTH FOR FUTURE GENERATIONS; 
AND
E) 
SOLIDARITY 
-  
THE 
CONSUMER 
SHALL 
ORGANIZE CONSUMERS TOGETHER TO DEVELOP THEIR 
STRENGTH 
AND 
INFLUENCE 
THE 
PROMOTION 
AND 
PROTECTION OF THEIR INTERESTS.”
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SEC. 4. Article 4 of the same Act is hereby amended to read as
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follows:
“ART. 4. 
Definition of Terms. -  For purposes of this Act, the
term:
a) xxx;
XXX
xxx
xxx
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.
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, PRODUCTS, MERCHANDISE, TECHNOLOGY AND


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OTHER TRANSACTIONS OR MATTERS INTENDED TO BE 
COVERED BY THIS ACT.
XXX 
XXX 
XXX
(u) “Cosmetics” means [(1) articles intended to be rubbed, 
poured, sprinkled, or sprayed on, introduced into or otherwise 
applied to the human body or any part thereof for cleansing, 
beautifying, 
promoting 
attractiveness, 
or 
altering 
the 
appearance, and (2) article intended for uses as a component of 
any such article except that such term shall not include soap.] 
ANY SUBSTANCE OR PREPARATION INTENDED TO BE 
PLACED IN CONTACT WITH THE VARIOUS EXTERNAL 
PARTS OF THE HUMAN BODY OR WITH THE TEETH AND 
THE MUCOUS MEMBRANES OF THE ORAL CAVITY WITH A 
VIEW 
EXCLUSIVELY 
OR 
MAINLY 
FOR 
CLEANSING, 
BEAUTIFYING, PROMOTING ATTRACTIVENESS, ALTERING 
OR CHANGING THE APPEARANCE, OR PROTECTING THE 
BODY OR KEEPING IT IN GOOD CONDITION.
XXX
XXX
XXX
w) 
"Credit card" means 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[ing] money, property, labor or services OR ANYTHING 
OF VALUE on credit.
XXX
XXX
XXX


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aj) 
"Guarantee" means an expressed or implied 
assurance 
of 
the 
REAL 
quality, 
COST, 
PRICE, 
AND 
PROMOTION of the consumer products and services offered for 
sale or length of satisfactory use, COSTS OR OTHER SIMILAR 
MATTERS to be expected from SUCH CONSUMER [a] products 
[or other similar specified assurances] SERVICES BASED ON 
APPLICABLE AND ACTUAL DOCUMENTS IN ACCORDANCE 
WITH THE LAW, MORALS, GOOD FAITH AND PUBLIC 
POLICY.
XXX
XXX
XXX
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.
XXX
XXX
XXX
bm) 
"Sales Promotion" means 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 purchase 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


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V;
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Other widespread media of information such as INFORMATION 
AND COMMUNICATIONS TECHNOLOGY. 
It also means 
techniques purely intended to increase the sales, patronage 
and/or goodwill of a product OR SERVICE.
XXX
XXX
XXX
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.
XXX 
XXX 
XXX
br) 
"Standard" means a set of conditions to be fulfilled 
to ensure the quality and safety of a product AND SERVICE;
XXX
XXX
XXX.
SEC. 5. Article 6 of the same Act is hereby amended to read as 
follows:
“ART. 6. Implementing Agencies. — The provisions of this 
Act and its implementing rules and regulations shall be 
enforced by:
a) 
the Department of Health with respect to PROCESSED 
food, drugs, cosmetics, devices and HAZARDOUS substances;


b) 
the Department of Agriculture with respect to products 
related to agriculture AND FISHERIES;
c) 
THE BANGKO SENTRAL NG PILIPINAS WITH RESPECT 
TO CONSUMER CREDIT TRANSACTIONS; AND
D) 
the Department of Trade and Industry with respect to 
other consumer products not specified above.”
SEC. 6. Article 8 of the same Act is hereby amended to read as 
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follows:
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“ART. 8. Publication of Consumer Product Standards. -  The 
concerned department shall, upon promulgation of the above 
standards, publish or cause the publication of the same 
EITHER in [two (2)] A newspaper[s] of general circulation [at 
least once a week for a period of not less than one (1) month.] IN 
THE OFFICIAL GAZETTE, OR IN THE OFFICIAL WEB 
PORTAL OF THE DEPARTMENT OR AGENCY. It may likewise 
conduct an information campaign through other means deemed 
effective 
to ensure 
the proper guidance 
of consumers, 
businesses, industries and other sectors concerned.”
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SEC. 7. Article 10 of the same Act is hereby amended to read as
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follows:
“ART. 10. Injurious, Dangerous and Unsafe Products. - 
Whenever the departments fmd, by their own initiative or by 
petition of a consumer, that a consumer product is found to be
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injurious, unsafe or dangerous, it shall, after due notice and 
hearing, make the appropriate order for its recall, prohibition or 
seizure from public sale or distribution: Provided, That, in the 
sound discretion of the department it may declare a consumer 
product to be imminently 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: PROVIDED, FURTHER, THAT ANY 
ESTABLISHMENT 
CAUGHT 
IN 
FLAGRANTE 
DELICTO 
SELLING, DISTRIBUTING, MANUFACTURING, PRODUCING, 
OR 
IMPORTING 
SUBSTANDARD 
AND 
HAZARDOUS 
PRODUCTS SHALL BE AUTOMATICALLY CLOSED AND SHUT 
DOWN.
The ban on the sale and distribution of a consumer 
product adjudged injurious, unsafe or dangerous, or imminently 
injurious, unsafe or dangerous under the preceding paragraph 
shall stay in force until such time that its safety can be assured 
or measures to ensure its safety have been established.”
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SEC. 8. Article 11 of the sam e Act is hereby am ended to read as
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follows:
“ART. 11. Amendment and Revocation of Declaration of the 
*1- 
Injurious, Unsafe or Dangerous Character of a Consumer Product.
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-  
Any 
interested 
person 
may 
petition 
the 
appropriate
il


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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 DO THE FOLLOWING WITHOUT 
DELAY:
a) 
give notice to the public of the defect or failure to 
comply with the product safety standards; [and]
b) 
give notice to each distributor or seller of such productf.];
AND
C) 
GIVE NOTICE, IN THE MOST PRACTICABLE 
MEANS POSSIBLE, TO EVERY PERSON TO WHOM SUCH 
CONSUMER PRODUCT WAS DELIVERED OR SOLD.
The department shall also direct the manufacturer, 
distributor or seller of such product to extend WITHIN A 
REASONABLE TIME any or all of the following remedies to the 
injured person;
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a) 
to bring the product with a like or equivalent 
product which complies with the applicable consumer product 
standards which does not contain the defect;
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;
c) 
to refund the purchase price of the product less a 
reasonable allowance for use; and
d) 
to pay the consumer reasonable damages as may be 
determined by the department.
The manufacturer, distributor or seller shall not charge a 
consumer who avails himself of the remedy as provided above of 
any expense and cost that may be incurred.”
SEC. 9. A new Article denominated as Article 14-A is hereby inserted 
after Article 14 of the same Act, which shall read as follows:
“ART. 
14-A. PHYSICAL SAFETY. -  APPROPRIATE 
POLICIES SHOULD ENSURE THAT IF MANUFACTURERS OR 
DISTRIBUTORS 
BECOME 
AWARE 
OF 
UNFORESEEN 
HAZARDS AFTER PRODUCTS ARE 
PLACED 
ON 
THE 
MARKET, 
THEY 
SHALL 
NOTIFY 
THE 
RELEVANT 
AUTHORITIES 
AND, 
AS 
APPROPRIATE, 
THE 
PUBLIC 
WITHOUT DELAY. 
THE GOVERNMENT SHOULD ALSO 
CONSIDER WAYS TO ENSURE THAT CONSUMERS ARE 
PROPERLY INFORMED OF SUCH HAZARDS.”
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SEC. 10. Article 15 of the same Act is hereby amended to read as
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follows:
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“ART. 15. Imported Products. -  a) xxx
XXX
xxx
xxx
G) 
WHEN THE MANUFACTURE, SALE OR USE OF A 
CONSUMER PRODUCT IS PROHIBITED IN THE COUNTRY 
OF ORIGIN OF SUCH PRODUCT, THE IMPORTATION, SALE 
OR USE OF SUCH PRODUCT IN THE PHILIPPINES SHALL BE 
PROHIBITED.”
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SEC. 11. Article 16 of the same Act is hereby amended to read as
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follows:
“ART. 16. Consumer Products for Export. - The preceding section 
on safety does not apply to any consumer product if:
a) 
it can be shown that such product is manufactured, 
sold or held for sale for export |'rom the Philippines, or that such 
product was imported for export, unless such consumer 
product is in fact distributed in commerce for use in the 
Philippines; [and]
b) 
such consumer product or the packaging thereof 
bears a stamp or label stating that such consumer product is 
intended for export and actually exported[.j; AND
C) CONSUMER PRODUCTS INTENDED FOR EXPORT 
SHALL 
COMPLY 
WITH 
THE 
SAFETY 
STANDARDS
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ENFORCED BY THE IMPORTING COUNTRY, WHENEVER 
APPLICABLE.”
follows:
SEC. 12. Article 19 of the same Act is hereby amended to read as
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If 
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SEC. 13. Article 41 of the saime Act is hereby amended to read as
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follows:
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“ART. 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 HUNDRED thousand pesos 
[(PI,000.00)] (PlOO,000.00) but not more than [Ten] FIVE 
HUNDRED thousand pesos [(P10,000.00)] (P500,000.00) or 
imprisonment of not less than [two (2) months] THREE (3) 
YEARS but not more than [one (1) year] SEVEN (7) YEARS, or 
both upon the discretion of the court. If the offender is an alien, 
he shall be deported after service of sentence and payment of 
fine without further deportation proceedings.
XXX
XXX
XXX.
“ART. 41. Penalties. - a) Any person who violates any of 
the provisions of Article 40 hereof shall, upon conviction, be 
subject to imprisonment of not less than [one (1) year] THREE 
YEARS but not more than [five (5)] SEVEN (7) years [and] OR 
fine of not less than [Five] ONE HUNDRED thousand pesos 
[(5,000.00)] (PlOO,000.00) but not more than [Ten] FIVE
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HUNDRED thousand pesos [(10,000.00)] (P500,000.00), or 
both such imprisonment and fine, in the discretion of the Court.
XXX
XXX
XXX.
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SEC. 14. Article 47 of the same Act is hereby amended to read as
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follows:
“ART. 47. Penalties, exception. - 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] FIFTY 
thousand pesos [(PI,000.00)] (P50,000.00) or an imprisonment 
of not less than [six (6) months] THREE (3) YEARS but not 
more than [five (5)] SEVEN (7) years, or both, upon the 
discretion of the court.
XXX
XXX
XXX.
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SEC. 15. Article 52 of the same Act is hereby amended to read as
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follows:
“ART. 52. Unfair or Unconscionable Sales Act or Practice. —
An unfair or unconscionable sales act or practice by a seller or 
supplier in connection with a consumer transaction violates this 
Chapter whether it occurs before, during or after the consumer 
transaction. An act or practice shall be deemed unfair or 
unconscionable 
whenever 
the 
producer, 
manufacturer, 
distributor, supplier or seller, by taking advantage of the 
consumer’s physical or mental infirmity, ignorance illiteracy.
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lack of time or the general conditions of the environment or 
surroundings, induces the consumer to enter into a sales or 
lease transaction inimical to the interests of the producer, 
manufacturer, distributor, supplier or seller.
In determining, whether an act or practice is unfair and 
unconscionable, 
the 
following 
circumstances 
shall 
be 
considered:
a) 
xxx;
XXX
xxx
xxx
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 INCLUDING, BUT NOT LIMITED 
TO, THE FOLLOWING CIRCUMSTANCES:
1) 
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 CONSUMER’S 
FREEDOM OF CHOICE OR CONDUCT WITH REGARD TO 
THE PURCHASE OF A PRODUCT OR SERVICE THAT
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CAUSES THE CONSUMER OR IS LIKELY TO CAUSE THE 
CONSUMER TO ENTER INTO A CONSUMER TRANSACTION 
DIFFERENT FROM THE ONE THE CONSUMER WOULD HAVE 
INTENDED, OR WOULD NOT HAVE DONE OTHERWISE.”
6 
SEC. 16. Article 60 of the same Act is hereby amended to read as
7 
follows;
8
9
10
11
“ART. 60. Penalties. - a) Any person who shall violate the 
provisions of Title 111, Chapter 1, shall upon conviction, be 
subject to a fine of not less than [Five Hundred Pesos (P500.00)] 
TWENTY THOUSAND PESOS (P20,000.00) but not more than 
[Ten] FIFTY Thousand Pesos [(P10,000.00)j (P50,000.00) or 
1. 
imprisonment of not less than five (5) months but not more
14 
than one (1) year or both, upon the discretion of the court.
15 
XXX 
XXX 
XXX.”
16
17 
SEC. 17. Article 62 of the same Act is hereby amended to read as
18 
follows:
19
20 
21
V
21
24
25
“ART. 62. 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 upon 
payment of fees required under existing law: Provided, That all
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instruments of weights and measures shall continuously be 
inspected for compliance with the provisions of this Chapter.
THE 
SAFEKEEPING 
AND 
MAINTENANCE 
OF 
INSTRUMENTS 
FOR 
DETERMINING 
WEIGHTS 
AND 
MEASURES 
SHALL 
BE 
UNDER 
THE 
CONTROL 
AND 
SUPERVISION OF THE MARKET SUPERVISOR WHO SHALL 
LIKEWISE BE IN CHARGE OF KEEPING A RECORD OF 
EVERY PRODUCT FOUND TO BE WANTING IN QUANTITY OR 
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 NAME OF THE 
ESTABLISHMENT 
WHERE 
THE 
SAME 
WAS 
BOUGHT 
INCLUDING THE NAME OF THE PROPRIETOR OR MANAGER 
THEREOF. 
A CERTIFICATION DULY ISSUED BY THE
MARKET
SUPERVISION
OR
AN
AUTHORIZED
REPRESENTATIVE REFLECTING THE CONTENTS OF SUCH 
RECORD SHALL BE PRIMA FACIE EVIDENCE OF VIOLATION 
OF THE PROHIBITED ACTS AS PROVIDED HEREIN.”
21 
SEC. 18. Article 65 of the same Act is hereby amended to read as
22 
follows:
23
24
25
“ART. 65. Penalties. - a) Any person who shall violate the 
provisions of paragraphs (a) to (f) and paragraph (1) of Article 64 
or its implementing rules and 
regulations 
shall, 
upon
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conviction, be subject to a fine of not less than [Two hundred 
pesos (P200.00)] FIVE THOUSAND PESOS (P5,000.00) but not 
more than [One] TWENTY-FIVE thousand pesos [(PI,000.00)] 
(P25,000.00) or by imprisonment of not more than one (1) year, 
or both, upon the discretion of the court.
b) Any person who shall violate the provisions of 
paragraph (g) 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 (P10,000.00) or by imprisonment of not 
less than [one (1) month] SIX MONTHS but not more than [five 
(5)] 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 or 
imprisonment not exceeding one (1) year, or both, upon the 
discretion of the court.”
19 
SEC. 19. Article 68 of the same Act is hereby amended to read as
20 
follows:
“ART. 68. Additional Provisions on Warranties. -  In 
addition to the Civil Code provisions on sale with warranties, 
the following provisions shall govern the sale of consumer 
products with warranty: 
a) 
xxx;
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XXX
XXX
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f) 
Breach of warranties. - 1) In case of breach of express 
warranty, the consumer may elect to have the goods repaired or 
its purchase price refunded by the warrantor. In case the repair 
of the product in whole or in part is elected, the warranty work 
must be made to conform to the express warranty within thirty 
(30) days by either the warrantor or his representative. The 
thirty-day period, however, may be extended by conditions, 
which are beyond the control of the warrantor or his 
representative. In case the refund of the purchase price is 
elected, the amount directly attributable to the use of the 
consumer prior to the discoveiy of the non-conformity shall be 
deducted.
2) In case of breach of implied warranty, the consumer 
may retain in the goods and recover damages, or reject the 
goods, cancel [and] THE contract and recover from the seller so 
much of the purchase price as has been paid, including 
damages.
3) 
MANUFACTURERS 
OR 
DISTRIBUTORS 
MUST 
MAINTAIN A SERVICE CENTER 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.w
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SEC. 20. Article 73 of the same Act is hereby amended to read as 
2 
follows:
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“ART. 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 
(PIO,000.00) but not more than [Five] FIFTY thousand pesos 
[(P5,000.00)1 (P50,000.00) or an imprisonment of not less than 
[three (3)] SIX (6) months but not more than [two (2)] SIX (6) 
years, or both, upon 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.”
14 
SEC. 21. Artiele 79 of the same Act is hereby amended to read as
15 
follows:
“ART. 79. Authority of the Concerned Department to Provide 
for Additional Labeling and Packaging Requirements. - Whenever 
the concerned department determines that regulations covering 
requirements other than those prescribed in Article 77 hereof 
are necessary to prevent the deception of the consumer or to 
facilitate value comparisons as to any consumer product, it may 
issue such rules and regulations to:
X X X
X X X
xxx;
For purposes of paragraph (c) of this Article, a package 
shall be deemed to be non-functionally slack-filled if it is filled
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to substantially less than its capacity for reasons other than (1) 
protection of the contents of such package, (2) the requirements 
of machines used for enclosing the contents in such package, or 
(3) inherent characteristics of package materials or construction 
being used.
THE 
CONCERNED 
DEPARTMENT 
MAY 
LIKEWISE 
ISSUE 
SUCH 
OTHER 
REQUIREMENTS 
AS 
MAY 
BE 
PRESCRIBED BY REGULATIONS TO ENSURE THE SAFETY, 
EFFICACY AND QUALITY OF HEALTH PRODUCTS.”
11 
SEC.22. Article 81 of the same Act is hereby amended to read as
12 
follows:
“ART.81. Price tag Requirement. -  It shall be unlawful to 
offer any consumer product OR SERVICE for retail sale to the 
public without an appropriate price tag, label, or marking, OR
WITH MORE THAN ONE PRICE, OR DIFFERENT PRICE 
TAGS, LABELS, OR MARKINGS publicly displayed to indicate 
the price of each article and said products shall not be sold at a 
price higher than that stated therein and without discrimination 
to all buyers: Provided, That IT SHALL BE UNLAWFUL FOR 
ANY RETAILER TO CHARGE THE CUSTOMER MORE THAN 
THE ACTUAL CASH RETAIL PRICE OF THE GOODS OR 
SERVICES PURCHASED WHEN SUCH PURCHASE IS DONE 
WITH THE USE OF CREDIT CARD AND TO LIMIT BARGAIN 
SALE ITEMS AND 
SERVICES TO CASH PURCHASES:
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PROVIDED, FURTHER, THAT lumber sold, displayed or offered 
for sale to the public shall be tagged or labeled by indicating 
thereon the price and the corresponding official name of the 
wood: Provided, [further,] FINALLY, That if consumer products 
for sale are too small or the nature of which makes it 
impractical to place a price tag thereon price list placed at the 
nearest point where the products are displayed indicating the 
retail price of the same may suffice.”
SEC. 23. The following new articles are hereby inserted after Article 94 
of the same Act, which shall read as follows:
“ART. 94-A. ENGLISH OR FILIPINO TRANSLATION OF 
PRODUCT 
LABELS. 
-  
CONSUMER 
PRODUCTS 
WITH 
PRODUCT LABELS WRITTEN IN FOREIGN CHARACTERS OR 
LANGUAGE 
SHALL 
BE 
ALLOWED 
ENTRY 
INTO 
THE 
COUNTRY AND INTRODUCED INTO COMMERCE ONLY IF 
THE CONSUMER PRODUCTS HAVE A CORRESPONDING 
ENGLISH OR FILIPINO TRANSLATION TO ENABLE THE 
APPROPRIATE AUTHORITIES TO DETERMINE WHETHER 
THE PRODUCT HAS COMPLIED WITH ALL THE OTHER 
LABELING REQUIREMENTS AS WELL AS PROVIDE THE 
CONSUMERS PROPER GUIDANCE ON THE CONTENTS AND 
SOURCE OR ORIGIN OF THE PRODUCT.”
25
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ART. 94-B. OFFICIAL SOURCES OF INFORMATION FOR
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IMPORTED CONSUMER PRODUCTS. - IMPORT DATA FROM 
THE BUREAU OF CUSTOMS AND BUREAU OF IMPORT 
SERVICES SHALL BE RECOGNIZED AS OFFICIAL SOURCES 
OF 
INFORMATION 
TO 
VALIDATE 
THE 
FOLLOWING 
INFORMATION RELATIVE TO A PARTICULAR IMPORTED 
CONSUMER PRODUCT:
A) 
COUNTRY OF MANUFACTURE OR ORIGIN;
B) 
NAME AND ADDRESS OF MANUFACTURER OR 
EXPORTER;
C) 
NAME AND ADDRESS 
OF 
IMPORTER AND 
CONSIGNEE;
D) 
VALUE AND VOLUME OF SHIPMENT;
E) 
DATE OF ARRIVAL; AND
F) 
OTHER 
INFORMATION 
RELEVANT 
TO 
THE 
SHIPMENT IN QUESTION.”
18 
SEC. 24. Article 95 of the same Act is hereby amended to read as
19 
follows:
“ART. 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 Articles 81 to 83 of the same 
Chapter, shall be subject to a fine of not less than [Five hundred 
pesos (P500.00)] TEN THOUSAND PESOS (PIO,000.00) but not 
more 
than 
[Twenty] 
ONE 
HUNDRED 
thousand 
pesos
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[(P20,000.00)] (PlOOjOOO.OO) or imprisonment of not less than 
[three (3)] SIX (6) months but not more than [two (2)] SIX (6) 
years, or both, 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)] FIVE 
THOUSAND PESOS (P5,000.00) but not more than [Five] 
FIFTY 
thousand 
pesos 
[{P5,000.00)] 
(P50,000.00) 
or
imprisonment of not less than [one (1) month] SIX (6) MONTHS 
but not more than [one (1) year] THREE (3) YEARS, or both, at 
the discretion of the court.
b) 
Any person who violates the provisions of Article 81 to 
83 for the first time shall be subject to a fine of not less than 
[Two hundred pesos (P200.00)] FIVE THOUSAND PESOS 
(P5,000.00) but not more than [Five] FIFTY thousand pesos 
[(P5,000.00)] (P50,000.00) or by imprisonment of not less than 
one (1) month but not more than six (6) months or both, at the 
discretion of the court. A second conviction under this 
paragraph shall also cany with it the penalty of revocation of 
business permit and license.”
22 
SEC. 25. Article 103 of the same Act is hereby amended to read as
23 
follows:
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“ART. 103. Repair Service Obligation. - When services are 
provided for the repair of any product, the supplier shall be
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considered implicitly bound to use adequate, new, original 
replacement parts, or those that maintain the manufacturer's 
technical specifications unless, otherwise authorized, as regards 
to the latter by the consumer.
IN PROVIDING SERVICE OR REPAIR AS REQUIRED 
UNDER 
THIS 
ARTICLE, 
THE 
MANUFACTURER 
MUST 
INFORM THE CONSUMER WHICH PARTICULAR PARTS OF 
THE GOODS ARE DAMAGED AND HAVE TO BE REPAIRED. 
THE CONSUMER SHALL BE GIVEN THE OPTION TO 
REPLACE ONLY THE DAMAGED PARTS IF POSSIBLE. THE 
CONSUMER SHOULD NOT BE FORCED TO REPLACE OTHER 
PARTS THAT ARE STILL IN GOOD CONDITION ON THE 
GROUNDS THAT ALL THESE PARTS COME IN ONE SET.”
1 
SEC. 26. Article 107 of the same Act is hereby amended to read as
16 
follows:
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21 
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“ART. 107. Penalties. - 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] FIFTY thousand 
pesos [(P5,000.00)1 (P50,000.00) and by imprisonment of not 
LESS THAN SIX (6) MONTHS BUT NOT more that [one (1) 
year] THREE (30 YEARS), OR both, upon the discretion of the 
court.
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In case of juridical persons, t±ie penalty shall be imposed
’ 
upon its president, m anager or head. If the offender is an alien,
3 
he sheill, after paym ent of fine and service of sentence, be
4 
deported without further deportation proceedings.”
5
6 
SEC. 27. The following new articles are hereby inserted after Article
7 
108 of the sam e Act, which shall read as follows:
8 
“ART. 
108-A. 
ADVERTISEMENT, 
GENERAL
9 
PRINCIPLES. -  AN ADVERTISEMENT FOR A CONSUMER
10 
PRODUCT OR A SERVICE MUST PROVIDE THE GENERAL 
PUBLIC WITH RELEVANT AND TRUTHFUL INFORMATION
1. 
ON 
PRODUCTS 
AND 
SERVICES, 
THEREBY 
HELPING
13 
CONSUMERS MAKE INFORMED 
CHOICES.
14 
THE ADVERTISING INDUSTRY SHOULD CONTINUE TO
15 
IMPROVE 
THE 
LEVELS AND 
STANDARDS 
OF
16 
ADVERTISING.”
17
18 
ART. 
108-B. 
COVERAGE; 
EXCEPTIONS. 
-  
THE
19 
PROVISIONS OF THESE CHAPTER ON ADVERTISING AND
20 
SALES PROMOTIONS SHALL APPLY TO THE PHILIPPINE 
ADVERTISING 
COMMUNITY 
WHICH 
INCLUDES
22 
ADVERTISERS, 
ADVERTISING AGENCIES, 
MEDIA AND
23 
ADVERTISING SUPPORT GROUPS BUT SHALL NOT APPLY
24 
TO THE FOLLOWING:
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1) 
TO 
PUBLIC 
SERVICE 
AND 
EMERGENCY 
ANNOUNCEMENTS OF UTILITY COMPANIES;
2) 
TO RELIGIOUS, POLITICAL AND PUBLIC ISSUE 
ADVERTISEMENTS 
AND 
ANNOUNCEMENTS, 
EXCEPT 
WHERE 
THESE 
INVOLVE 
OR 
SEEK 
TO 
PROMOTE 
COMMERCIAL TRANSACTIONS; AND
3) 
TO STANDARD TRANSPORT ANNOUNCEMENTS, 
CLASSIFIED ADVERTISEMENTS AND OBITUARIES.”
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ART. 108-C. PRESENTATION OF ADVERTISEMENTS. -
A) CLAIMS OF PRODUCTS AND SERVICE PROPERTIES OR 
THEIR 
INTENDED 
USAGE 
SHOULD 
BE 
CLEARLY 
PRESENTED AND SHOULD NOT MISLEAD OR BE LIKELY TO 
MISLEAD THE PERSONS TO WHOM THEY ARE ADDRESSED 
BY 
INACCURACY, 
AMBIGUITY, 
EXAGGERATION 
OR 
OMISSION.
B) ANY TEST OR DEMONSTRATION MAY BE USED 
ONLY IF IT DIRECTLY PROVES THE CLAIMED PRODUCT OR 
SERVICE PROPERTY OR CHARACTERISTICS AND SHOULD 
BE PRESENTED CLEARLY AND ACCURATELY.
C) 
CORPORATE 
ADVERTISING 
MUST 
BE 
FAIR, 
TRUTHFUL AND ACCURATE; IT SHOULD NOT CONTAIN ANY 
EXAGGERATIONS OR SWEEPING GENERALIZATIONS THAT 
MAY MISLEAD THE PUBLIC REGARDING THE ADVERTISER 
OR THE ATTRIBUTES OF ITS PRODUCTS OR SERVICES.
29


WHERE 
THE 
ADVERTISEMENTS 
CONTAIN 
SPECIFIC 
CLAIMS REGARDING THE 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.”
7 
SEC. 28. Article 110 of the same Act is hereby amended to read as
8 
follows:
9
10
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13
14 
. i 
I t
17
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20 
21 
22 
23
2 .
“ART. 110. 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.
XXX
XXX
XXX.
SEC. 29. A new Article denominated as Article 115-A is inserted after 
Article 115 of the same Act, which shall read as follows:
“ART. 
115-A. 
SPECIFIC 
CLAIMS. 
- 
ANY 
ADVERTISEMENT WHICH MAKES A SPECIAL CLAIM SHALL 
CONFORM TO THE FOLLOWING CONDITIONS:
A) 
AN 
ADVERTISEMENT 
CONCERNING 
AN 
INGREDIENT OF A CONSUMER PRODUCT:
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1) 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
2) SHOULD NOT IMPLY THAT A CERTAIN BENEFIT 
IS DUE TO A SPECIFIC INGREDIENT UNLESS A
VERIFIABLE
CAUSE
AND
EFFECT
RELATIONSHIP EXISTS.
B) AN ADVERTISEMENT USING THE RESULTS OF A 
BONA FIDE RESEARCH, SURVEY, OR TEST RELATING TO A 
PRODUCT SHOULD NOT BE PRESENTED INACCURATELY 
OR IN A MISLEADING MANNER, NOR SHOULD IT CLAIM 
ANY IMPLICATIONS BEYOND THAT CLEARLY ESTABLISHED 
BY RESEARCH, SURVEY OR TEST.
C) AN ADVERTISEMENT, WHICH INCLUDES ANY 
SCIENTIFIC CLAIMS:
1) MAY EMPLOY VISUAL REPRESENTATIONS OF 
LABORATORY SETTINGS 
ONLY WHEN 
THE 
RESEARCH 
WAS 
CONDUCTED 
IN 
THE 
LABORATORY; AND
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2) SHOULD BE SUPPORTED BY DOCUMENTED AND 
AUTHORITATIVE EVIDENCE TO SUBSTANTIATE 
REFERENCES TO TESTS BY PROFESSIONALS 
OR 
INSTITUTIONS 
INCLUDING 
DOCTORS, 
ENGINEERS, AND RESEARCH FOUNDATIONS 
FOR SUCH TESTS AND THE CLAIMS BASED 
THEREON.
D) 
AN ADVERTISEMENT WHICH UTILIZES THE 
NUMBER ONE OR LEADERSHIP CLAIM, NO “NO. 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.
E) 
AN ADVERTISEMENT USING TESTIMONIAL CLAIMS:
1) 
SHOULD 
ONLY 
INCLUDE 
GENUINE 
AND 
TRUTHFUL TESTIMONIAL CLAIMS RELATING 
TO THE PRODUCT BEING ADVERTISED;
2) 
SHOULD 
ONLY PRESENT AS 
EXPERT AN 
INDIVIDUAL 
WHO 
HAS 
DEMONSTRABLE 
CREDENTIALS 
TO 
SUBSTANTIATE 
THE 
CLAIMED EXPERTISE. 
THE ENDORSEMENT 
MUST 
BE 
SUPPORTED 
BY 
AN 
ACTUAL 
EXERCISE OF THE INDIVIDUAL’S EXPERTISE IN 
EVALUATING 
THE 
PRODUCT 
OR 
SERVICE
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FEATURES 
OR 
CHARACTERISTICS. 
SUCH 
EVALUATION 
MUST 
BE 
RELEVANT 
AND 
AVAILABLE TO AN ORDINARY CONSUMER’S USE 
OF OR EXPERIENCE WITH THE PRODUCT.
3) SHOULD ONLY PRESENT AN ENDORSEMENT BY 
AN 
ORGANIZATION 
WHOSE 
COLLECTIVE 
EXPERIENCE 
OUTWEIGHS 
THAT 
OF 
AN 
INDIVIDUAL MEMBER. THE ADVERTISER MUST 
PROVIDE 
EVIDENCE 
THAT 
THE
ORGANIZATION’S 
ENDORSEMENT 
WAS 
REACHED BY A PROCESS SUFFICIENT TO 
ENSURE THAT IT REFLECTS THE COLLECTIVE 
JUDGMENT 
OF 
THE 
ORGANIZATION. 
THE 
ORGANIZATION 
MAY 
BE 
CONSIDERED 
LEGITIMATE IF IT CAN PRESENT PROOF OF 
HAVING BEEN IN OPERATION FOR AT LEAST 
ONE YEAR.”
18
19 
SEC. 30. Article 116 of the same Act is hereby amended to read as
20 
follows:
21
22
23
24
“ART. 116. 
Permit to Conduct Promotion. — No person 
shall conduct any sales campaigns, including beauty contest, 
national 
in 
character, 
sponsored 
and 
promoted 
by 
PRODUCERS, 
RETAILERS, 
SELLERS, 
DISTRIBUTORS, 
SUPPLIERS, IMPORTERS, 
OR manufacturing enterprises
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without first securing a permit from the concerned department 
[at least thirty (30) calendar days] prior to the commencement 
thereof. Unless an objection or denial is received WITHIN 5 
(FIVE) DAYS [fifteen (15) days] from filing of the COMPLETE 
application, the same shall be deemed approved and the 
promotion campaign or activity may be conducted: Provided,
That any sales promotion campaign using medical prescriptions 
or any part thereof or attachment thereto for raffles or a promise 
of reward shall not be allowed, nor a permit be issued thereof.”
SEC. 31. The following new articles are hereby inserted after Article 
116 of the same Act, which shall read as follows:
“ART. 116-A. REGULATION OF ADVERTISING AND 
SALES PROMOTION. - THE ADVERTISING AND SALES 
PROMOTION OF CONSUMER PRODUCTS, SERVICES AND 
CREDIT FACILITIES, WHICH INCLUDE SPONSORSHIPS OF 
PROGRAMS, CONCERTS, GAMES, SHOWS AND SIMILAR 
ACTIVITIES SHALL BE REGULATED BY THE DEPARTMENT 
OF TRADE AND INDUSTRY.
ADVERTISING AND SALES PROMOTION OF FOOD, 
DRUGS, 
DEVICES, 
COSMETICS 
AND 
HAZARDOUS 
SUBSTANCES SHALL BE UNDER THE JURISDICTION OF 
THE DEPARTMENT OF HEALTH WHILE THE ADVERTISING 
AND SALES PROMOTION OF AGRICULTURAL PRODUCTS
34


SHALL 
BE 
UNDER 
THE 
JURISDICTION 
OF 
THE
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DEPARTMENT OF AGRICULTURE.
ART. 116-B. COVERAGE AND EXEMPTION OF THE 
SALES 
PROMOTION 
OF 
CONSUMER 
PRODUCTS 
AND 
SERVICES. - THE PROVISIONS ON SALES PROMOTIONS OF 
CONSUMER PRODUCTS AND SERVICES SHALL APPLY TO 
ALL PROMOTIONAL CAMPAIGNS AND ANNOUNCEMENTS 
FOR 
CONSUMER 
PRODUCTS, 
SERVICES, 
CREDIT 
FACILITIES, AS WELL AS BEAUTY CONTESTS, NATIONWIDE 
IN CHARACTER.
THE 
PROVISIONS 
OF 
SALES 
PROMOTION 
OF 
CONSUMER PRODUCTS AND SERVICES SHALL LIKEWISE 
APPLY TO SIMILAR ACTIVITIES INCLUDING IN-STORE 
PROMOTIONS, REDUCED PRICES, 
SPECIAL OFFERS, 
PRODUCT 
DEMONSTRATION, 
PRODUCT 
SAMPLES, 
REBATES, DISCOUNTS, PREMIUM-IN-PACK, 
AND EXPERT 
ADVICE.
THE 
PROVISIONS 
OF 
SALES 
PROMOTION 
OF 
CONSUMER PRODUCTS AND SERVICES SHALL NOT APPLY 
TO THE FOLLOWING PROMOTIONAL CAMPAIGNS OR 
ACTIVITIES:
A) 
GOVERNMENT OR ANY OF ITS AGENCIES OR 
INSTRUMENTALITIES, WHEN THE SAME IS CONDUCTED IN 
THE EXERCISE OF THEIR GOVERNMENTAL FUNCTIONS;
35


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B) 
PRIVATE ENTITIES IN JOINT PROJECT/S WITH 
ANY GOVERNMENT AGENCY UNDER THE PRECEDING 
PARAGRAPH; AND
C) 
SOCIAL, 
CIVIC, 
POLITICAL, 
RELIGIOUS,
EDUCATIONAL, 
PROFESSIONAL 
AND 
OTHER 
SIMILAR 
ORGANIZATIONS WHICH EXTEND PROMOTIONAL ACTIVITY 
AMONG 
THEIR 
MEMBERS: 
PROVIDED, 
THAT 
THE
PROMOTIONAL ACTIVITY IS NOT CONSIDERED AS A SALES 
PROMOTIONAL CAMPAIGN AS DEFINED UNDER THIS ACT.
ART. 116-C. APPLICATION FOR PERMIT. -  
A) THE 
APPLICATION FOR PERMIT SHALL BE IN THE FORM 
PRESCRIBED BY THE DEPARTMENT CONCERNED.
ANY 
PERSON 
WHOSE 
CONSUMER 
PRODUCTS, 
SERVICES, 
CREDIT 
FACILITIES, 
BEAUTY 
CONTESTS, 
COMPETITION, GAMES SHOWS AND THE LIKE ARE BEING 
PROMOTED 
MAY 
FILE 
AN 
APPLICATION 
FOR 
THE 
ISSUANCE OF A PERMIT TO CONDUCT PROMOTION.
THE ABOVE PERSON SHALL SIGN THE APPLICATION 
INDIVIDUALLY OR JOINTLY WITH THE OTHERS OR SUBMIT 
THEREWITH A TRUE COPY OF ANY WRITTEN AGREEMENT 
BETWEEN OR AMONG THEM, REFLECTING THE DEGREE 
OR 
EXTENT 
OF 
THEIR 
PARTICIPATION 
AND 
RESPONSIBILITY IN THE CONDUCT OF THE PROMOTIONAL 
ACTIVITY COVERED BY THIS ACT OR THE RULES. WHERE
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NO LIMITATION AS TO THE EXTENT OF THE LIABILITY OR 
RESPONSIBILITY IS INDICATED IN SUCH AGREEMENT, ALL 
OF THEM SHALL BE JOINTLY AND SEVERALLY LIABLE AND 
RESPONSIBLE THEREFOR.
B) APPLICATION THROUGH AND BY AN AGENT - 
WHERE THE PROMOTIONAL CAMPAIGN OR ACTIVITY IS 
APPLIED 
FOR 
AND 
IN 
BEHALF 
OF 
THE 
PERSONS 
MENTIONED IN PARAGRAPH (A) HEREOF, THE AGENT 
SHALL BE AUTHORIZED 
BY A SPECIAL POWER OF 
ATTORNEY OR A BOARD RESOLUTION AS EVIDENCED BY 
SECRETARY’S CERTIFICATE.
ART. 116-D. PROHIBITED ACTS IN THE CONDUCT OF 
SALES 
PROMOTION. 
-  
THE 
FOLLOWING 
ACTS 
ARE 
PROHIBITED IN THE CONDUCT OF SALES PROMOTION 
CAMPAIGN:
A) 
GAMBLING AND WAGERING SCHEMES;
B) 
USE OF MEDICAL PRESCRIPTIONS;
D) 
TAMPERING 
WITH 
THE 
ENTRIES, 
PARAPHERNALIA 
OR 
ELECTRONIC 
DEVICE 
IN 
A 
PROMOTIONAL CAMPAIGN OR ACTIVITY;
E) 
UNDULY INFLUENCING THE RESULTS OF A 
PROMOTIONAL CAMPAIGN OR ACTIVITY; AND
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F) 
PERFORMING ANY ACT TO THE PREJUDICE OF 
THE LEGITIMATE PARTICIPANTS OR WINNERS IN A 
PROMOTIONAL CAMPAIGN OR ACTIVITY.
ART. 
116-E. 
VOLUNTARY 
CANCELLATION 
OF 
PROMOTIONAL CAMPAIGN OR ACTIVITY. -  VOLUNTARY 
CANCELLATION OF APPROVED PROMOTIONAL CAMPAIGN 
OR ACTIVITY SHALL BE ALLOWED SUBJECT TO THE 
FOLLOWING CONDITIONS:
A) 
VOLUNTARY 
CANCELLATION 
BEFORE 
PUBLICATION -  A PERSON MAY VOLUNTARILY CANCEL OR 
DISCONTINUE THE APPROVED PROMOTIONAL CAMPAIGN
OR
ACTIVITY
PROVIDED
NO
INFORMATION
DISSEMINATION AND ADVERTISING THEREON HAS BEEN 
MADE AND THAT A WRITTEN NOTICE BE SUBMITTED TO 
THE 
DEPARTMENT 
PRIOR 
TO 
SUCH 
VOLUNTARY 
CANCELLATION.
B) VOLUNTARY CANCELLATION AFTER PUBLICATION 
-  IF ANY ANNOUNCEMENT, INFORMATION DISSEMINATION 
OR ADVERTISING OF THE PROMOTIONAL CAMPAIGN OR 
ACTIVITY 
HAS 
ALREADY 
BEEN 
MADE, 
BUT 
THE 
PROMOTION PERIOD HAS NOT YET COMMENCED, THE 
DISCONTINUANCE OR CANCELLATION OF THE PROMOTION 
MAY BE MADE ONLY UPON PRIOR WRITTEN NOTICE TO 
THE DEPARTMENT NOT LATER THAN FIVE (5) DAYS
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BEFORE 
THE 
COMMENCEMENT 
OF 
THE 
ORIGINAL 
INTENDED DATE OF PROMOTION.
THE SPONSOR SHALL HONOR THE PROMOTIONAL 
COMMITMENTS SHOULD IT FAIL TO COMPLY WITH THE 
REQUIRED PERIOD.
C) 
VOLUNTARY 
CANCELLATION 
OF 
ONGOING 
PROMOTION 
- 
VOLUNTARY 
CANCELLATION 
OR 
DISCONTINUANCE OR SUSPENSION OF ANY ONGOING 
PROMOTIONAL CAMPAIGNS OR ACTIVITIES SHALL NOT BE 
ALLOWED EXCEPT UPON PRIOR WRITTEN APPROVAL BY 
THE DEPARTMENT WHICH SHALL BE BASED ON ANY OF 
THE FOLLOWING GROUNDS:
1) A FINAL JUDGMENT OF VOLUNTARY INSOLVENCY 
OR BANKRUPTCY AGAINST THE APPLICANT;
2) OCCURRENCE OF ANY FORTUITOUS EVENT OR 
FORCE MAJEURE THAT WILL MAKE IT IMPOSSIBLE TO 
CONTINUE THE PROMOTIONAL CAMPAIGN OR ACTIVITY: 
PROVIDED, THAT THOSE WHO HAD ALREADY WON IN THE 
PROMOTION 
BEFORE 
THE 
APPROVAL 
OF 
THE 
CANCELLATION OR DISCONTINUANCE OR SUSPENSION 
SHALL BE PAID OR GIVEN THEIR PRIZES.
ART. 116-F. RULES ON MECHANICS. -  ALL COVERED 
PROMOTIONAL CAMPAIGNS OR ACTIVITIES SHALL ABIDE 
BY OR COMPLY WITH THE RULES ON THE MECHANICS OF
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THE PROMOTION SET FORTH IN THE IMPLEMENTING 
RULES AND REGULATIONS OF THE AGENCY CONCERNED.
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ART. 116-G. MODE OF SELECTION OF PROSPECTIVE 
PARTICIPANTS/ENTIRES. -  PROSPECTIVE PARTICIPANTS 
OR ENTRIES SHALL BE SELECTED IN A FAIR, HONEST AND 
TRANSPARENT MANNER. THERE MUST BE PROOF OF 
NOTICE OF SELECTION AND SUCH OTHER RELEVANT 
INFORMATION TO THE SELECTED PARTICPANTS IN A 
MANNER EXPRESSLY PROVIDED FOR IN THE MECHANICS.
DRAW DATE OR DATES FOR THE SELECTION OF 
PARTICIPANTS OR WINNERS TO A PROMOTION CAMPAIGN 
OR ACTIVITY SHALL NOT BE MORE THAN FOURTEEN (14) 
DAYS AFTER THE DEADLINE OF THE SUBMISSION OF 
ENTIRES.
DETERMINATION OF WINNERS MAY BE THORUGH 
THE USE OF ANY TECHNIQUE NOT CONTRARY TO LAW, 
MORALS 
AND 
PUBLIC 
POLICY 
WHICH 
SHALL 
BE 
CONDUCTED IN A FAIR, HONEST AND TRANSPARENT 
MANNER.”
22 
SEC. 32. Article 123 of the same Act is hereby amended to read as
follows:
2‘ 
“ART. 123. Penalties. - a) Any person, association,
15 
partnership or corporation who shall violate any of the
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provisions of Articles 110 to 115 shall, upon conviction, be 
subject to a fine of not less than [Five Hundred Pesos (P500.00)] 
TEN THOUSAND PESOS (P10,000.00) but not more than [Five] 
ONE HUNDRED thousand pesos [(P5,000.00)j (PlOO,000.00) or 
an imprisonment of not less than [one (1) month] THREE 
MONTHS but not more than [six (6) months] THREE (3) 
YEARS, OR both, upon the discretion of the court.
b) Any violation of the provisions of Articles 116 to 121 
shall upon conviction, subject the offenders to a fine of not less 
than [Two hundred pesos (P200.00)] FIVE THOUSAND PESOS 
(PSjOOO.OO) but not more than [Six hundred pesos (P600.00)] 
FIFTY THOUSAND PESOS (P50,000.00) or [an] imprisonment 
of not less than [one (1) month] THREE (3) MONTHS but not 
more than [six (6) months] THREE (3) YEARS, or both, upon 
the discretion of the court. If the violation was committed by a 
juridical person, the manager, representative, director, agent or 
employee of said juridical person responsible for the act shall be 
deported after service of sentence and payment of the fine 
without need for further deportation proceedings.”
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SEC. 33. A new Article denominated as Article 131-A is hereby 
inserted after Article 131 of the same Act, which shall read as follows:
“ART. 131-A. LIMITATION IN THE AUTHORITY OF 
BANGKO SENTRAL NG PILIPINAS. -  THE BANGKO SENTRAL 
NG 
PILIPINAS 
SHALL 
STRICTLY 
ENFORCE 
THE
41


PROVISIONS OF THIS CHAPTER AND ITS IMPLEMENTING 
RULES AND REGULATIONS EXCEPT THOSE WHICH FALLS 
WITHIN THE JURISDICTION OF THE SECURITIES AND 
EXCHANGE COMMISSION.”
6 
SEC. 34. Article 147 of the same Act is hereby amended to read as
7 
follows:
“ART. 147. Penalties. - Any creditor who in connection 
with 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] TWENTY thousand pesos 
[(PI,000.00)1 (P20,000.00) 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] ONE HUNDRED thousand pesos 
I(P3,000.00)] (PlOO,000.00) 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.”
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SEC. 35. Article 149 of the same Act is hereby amended to read as
2 
follows:
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“ART 149. Composition. The Council shall be composed of 
representatives from the following government agencies and 
non-govemment agencies:
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) 
BANGKO SENTRAL NG PILIPINAS;
G) 
four 
(4) 
representatives 
from the 
consumer
organizations of nationwide base to be chosen by the President 
among the nominees submitted by the various consumer groups 
in the Philippines; AND
H) 
two 
(2) 
representatives 
from the 
business
industry/sector to be chosen by the President from among the 
nominees submitted by the various business organizations.”
20 
SEC. 36. Article 151 of the same Act is hereby amended to read as
21 
follows:
“ART. 151. Per Diems of Members. — The members of the 
Council shall [be entitled to an allowance of five hundred pesos 
(P500.00) per] RECEIVE PER DIEMS FOR EVERY meeting 
actually attended [but not more two thousand pesos (P2,000.00)
43


a month] AT RATES ALLOWED UNDER EXISTING RULES 
AND REGULATIONS.”
4 
SEC. 37. Article 152 of the same Act is hereby amended to read as
5 
follows:
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“ART. 152. 
The EXECUTIVE DIRECTOR AND THE 
Secretariat. — The Council shall appoint an Executive Director 
who shall assist [the Chairman] and act as Secretary of the 
Council. The COUNCIL [Department of Trade and Industry] 
shall [provide] APPOINT the [Secretariat] STAFF which shall 
assist the [Council] EXECUTIVE DIRECTOR in the [effective] 
performance 
of 
[its 
functions] 
DUTIES 
AND 
RESPONSIBILITIES 
SUBJECT 
TO 
BUDGETARY, 
COMPENSATION 
AND 
CIVIL 
SERVICE 
RULES 
AND 
REGULATIONS.”
17 
SEC. 38. Article 156 of the same Act is hereby amended to read as
18 
follows:
“ART 156. Consumer Participation. -  The Department 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
4 '


exert efforts to inform consumers of pending proceedings where 
their participation is important.”
4 
SEC. 39. Article 164 of the same Act is hereby am ended to read as
5 
follows:
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“ART. 164. Sanctions. -  After investigation, any of the 
following administrative penalties may be imposed even if not 
prayed for in the complaint: 
a) 
xxx\
X X X
X X X
X X X
e) 
AUTOMATIC CANCELLATION OF A BUSINESS NAME;
F) 
the imposition of administrative fines in such 
amount as deemed reasonable by the Secretary, which shall in 
no case be less than [Five hundred pesos (P500.00)] FIFTY 
THOUSAND PESOS (P50,000.00) 
nor more than [Three 
hundred thousand pesos (P300,000.00)] ONE MILLION PESOS 
(PI,000,000.00) depending on the gravity of the offense, and an 
additional fine of [not more than One thousand pesos 
(PI,000.00)] NOT LESS THAN ONE THOUSAND PESOS 
(PI,000.00) [or] FOR each day of continuing violation.
SEC. 40. A new article denominated as Article 164-A is hereby 
inserted after Article 164 of the same Act, which shall read as follows:
“ART. 
164-A. 
USE 
OF 
ADMINISTRATIVE 
FINES 
IMPOSED BY THE CONCERNED DEPARTMENT. -  THE
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SECRETARY OF THE DEPARTMENT CONCERNED SHALL BE 
AUTHORIZED TO RETAIN, WITHOUT NEED OF A SEPARATE 
APPROVAL 
FROM 
ANY 
GOVERNMENT 
AGENCY, 
AND 
SUBJECT ONLY TO EXISTING ACCOUNTING AND AUDITING 
RULES AND REGULATIONS, THE FEES, FINES, AND OTHER 
CHARGES COLLECTED BY THE DEPARTMENT UNDER THIS 
ACT AND OTHER LAWS FOR THE EFFICIENT, EFFECTIVE 
AND EXPEDITIOUS IMPLEMENTATION AND ENFORCEMENT 
OF THIS ACT FOR USE IN ITS OPERATION, INCLUDING, 
BUT 
NOT 
LIMITED 
TO, 
THE 
UPGRADING 
OF 
ITS 
FACILITIES, EQUIPMENT OUTLAY, HUMAN RESOURCE 
DEVELOPMENT 
AND 
EXPANSION, 
ACQUISITION 
OF 
APPROPRIATE OFFICE SPACE, AND OTHER PROJECTS, 
AIMS, OR ACTIVITIES OF THE DEPARTMENT CONCERNED 
NECESSARY 
TO 
IMPROVE 
AND 
STRENGTHEN 
THE 
DELIVERY OF ITS SERVICES TO THE PUBLIC. THIS 
AMOUNT, 
WHICH 
SHALL 
BE IN ADDITION TO THE 
DEPARTMENT’S ANNUAL BUDGET, SHALL BE DEPOSITED 
AND MAINTAINED IN A SEPARATE ACCOUNT OR FUND, 
WHICH MAY BE USED OR DISBURSED DIRECTLY BY THE 
SECRETARY OF THE CONCERNED DEPARTMENT.”
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SEC. 41. Article 169 of the same Act is hereby amended to read as
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follows:
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“ART. 169 Prescription. — All actions or claims accruing 
under the provisions of this Act and the rules and regulations 
issued pursuant thereto shall prescribe within [two (2)] THREE 
(3) years from the time the consumer transaction was 
consummated or the deceptive or unfair and unconscionable act 
or practice was committed and in case of hidden defects, from 
discovery thereof.”
9 
SEC. 42. Article 171 of the sam e Act is hereby amended to read as
10 
follows:
“ART. 171. Appropriations. -  For the initial operating 
expenses of the National Consumer Affairs Council, the sum of 
Two million pesos (P2,000,000.00) is hereby appropriated out of 
funds of the National Treasury not otherwise appropriated. 
Thereafter, such sums as may be necessary to carry out the [its] 
purposes AND FUNCTIONS OF THE COUNCIL shall be 
included in the General Appropriations Act.”
19 
SEC. 43. Separability Clause. -  If any part or provision of this
20 
Act is declared unconstitutional or invalid, the remaining parts or 
•1 
provisions not affected shall remain in full force and effect.
Lx
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SEC. 44. Repealing Clause. -  All laws, decrees, executive order, rules
24 
and regulations and other issuances inconsistent with this Act is hereby
25 
repealed, am ended or modified accordingly.
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SEC. 45. Effectivity. -  This Act shall take effect fifteen (15) days after 
its publication in the Official Gazette or in at least two (2) newspapers of 
general circulation.
Approved,
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