SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHIILIPPINES 
) 
First Regular Session 
) 
SENATE 
1;i~8 
S.No, __ _ 
Introduced by Senator Ralph G. Recto 
Explanatory Note 
~"nuh: 
{t)Ht;:y of Hre ?:~nn't:1r~ 
'13 
JUL -4 r\10:23 
The President of the Philippines has identified this measure as among the priority bills 
during the presentation in the Legislative Executive Development Advisory Council (LEDAC). 
The bill amends R.A. No. 7394 otherwise known as the "Consumer Act of the Philippines". 
Among the new provisions is the eight (8) Consumer Bill of Rights namely, the right to: 
basic needs, choose products, representation, redress, consumer education, safety, healthy 
environment, and sanitation. These rights have been endorsed by the United Nations through the 
United Nations Guidelines for Consumer Protection. Corollary to the consumer rights is the 
provision of five (5) consumer responsibilities to wit: critical awareness, action, social concern, 
environmental awareness, and solidarity. 
The bill also provides a new Article mandating the English or Filipino translation of 
product labels written in foreigu characters/languages. This will alIow better understanding of 
the contents, features and uses of imported products for consumer protection against unsafe 
products. 
A new provision permanently barming suppliers engaged in the importation of 
defective goods has also been included. 
The coverage of the provisions on advertising and promotion has been expanded to 
include those for consumer products, services and credit facilities which include sponsorships of 
programs, c\oncerts, games, shows and similar activities. 
A new Article also protects consumers from aggressive marketing promotions that 
significantly impair the average consumer's freedom of choice with regard to the purchase of a 
product or service. 
The chapter on Advertising and Sales Promotion is further strengthened with the addition 
of advertising general principles and a specific guideline in the presentation of advertisements. 
Hence, among others, the bill provides instructions on how advertisements should treat specific 
claims on ingredients, results of researches and surveys, scientific claims, testimonials and 
endorsements, and leadership claims. 
The bill increases the penalties for violations of any provision of the Consumer Act of the 
Philippines. It sets a uniform penalty to be imposed on any violations and lengthened the period 
of prescription for claims relative to deceptive or unfair and unconscionable practice from two 
(2) to three (3) years. 
Further amendments to R.A. No. 7394 include the definition of terms in accordance with 
new technologies and trade practices. Notable of these new definitions is the one for "Mass 
Media" which now includes the internet, mobile phones, and similar electronic devices. 
The chapter on Consumer Product Quality and Safety has also been amended by adding 
the grant of authority for the automatic closing down of any establishments caught in flagrante 


delicto selling, distributing, manufacturing, producing, or importing substandard and hazardous 
products. 
The above cited amendments are intended to enhance consumer protection and to 
promote high ethical standards in trade practices. Hence, the passage of this bill is earnestly 
sought. 
mint({ 


j~i:iW I,' 
SIXTEENTH CONGRESS OF THE REPUBLIC ) 
tteffl;,t It! Hlf' ;b:':'n'hlf~ 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
JUL -4 IIlG:23 
SENATE 
s, No. _'_l_i,_a 
Introduced by Senator Ralph G. Recto 
AN ACT 
GRANTING BROADER PROTECTION TO CONSUMERS AMENDING FOR THE 
PURPOSE REPUBLIC ACT NO. 7394, OTHERWISE KNOWN AS "THE CONSUMER 
ACT OF THE PHILIPPINES" 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
1 
SECTION 1. Short Title. - This Act shall be known as "The Enhanced Consumer Act of 
2 
2013". 
3 
SEC. 2. Republic Act No. 7394, otherwise known as the "Consumer Act of the 
4 
Philippines" is hereby amended by inserting a new Article 3 under Title I General Provisions to 
5 
read as follows: 
6 
"ART. 3. THE EIGHT (8) CONSUMER BILL OF RIGHTS -
THE 
7 
GOVERNMENT, 
IN 
MAINTAINING 
AND 
STRENGTHENING 
THE 
8 
PROMOTION OF CONSUMER INTEREST AND WELFARE IN HIS 
9 
RELATION TO THE BUSINESS AND INDUSTRY PRACTICE AS WELL AS 
10 
THE PRODUCTION AND DISTRIBUTION OF CONSUMER PRODUCTS, 
11 
SHALL ADOPT MEASURES AND FORMULATE POLICIES TAKING INTO 
12 
ACCOUNT 
THE 
EIGHT 
(8) 
BASIC 
CONSUMER 
RIGHTS. 
THE 
13 
CONSUMERS SHALL BE ENTITLED TO: 
14 
15 
16 
17 
18 
19 
20 
21 
22 
A) 
RIGHT TO BASIC NEEDS - THE GUARANTEED SURVIVAL 
AND, THUS, BE PROVIDED WITH ADEQUATE FOOD, CLOTHING, 
SHELTER, HEALTH CARE, EDUCATION AND SANITATION; 
B) 
RIGHT TO CHOOSE -
THE CHOICE OF PRODUCTS AT 
COMPETITIVE 
PRICES 
WITH 
ASSURED 
SATISFACTORY 
QUALITY IN ACCORDANCE WITH GOVERNMENT STANDARDS; 
C) 
RIGHT TO REPRESENTATION -
THE EXPRESSION OF 
CONSUMER 
INTERESTS 
IN 
THE 
FORMULATION 
AND 
EXECUTION OF GOVERNMENT POLICIES; 
Page 1 of18 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
D) 
RIGHT 
TO 
REDRESS 
-
CLAIM 
COMMENSURATE 
COMPENSATION FOR MISREPRESENTATION, SUBSTANDARD, 
DEFECTIVE GOODS OR UNSATISFACTORY SERVICES; 
E) 
RIGHT TO CONSUMER EDUCATION - ACQUISITION OF 
KNOWLEDGE 
AND 
SKILLS 
NECESSARY 
TO 
MAKE 
AN 
INFORMED CHOICE; 
F) 
RIGHT TO SAFETY -
THE PROTECTION AGAINST THE 
MARKETING OF GOODS OR PROVISION OF SERVICES THAT 
ARE HAZARDOUS TO HEALTH AND LIFE; 
G) 
RIGHT TO A HEALTHY ENVIRONMENT -
LIVE AND 
WORK IN AN ENVIRONMENT WHICH PERMITS A LIFE OF 
DIGNITY 
AND 
WELL-BEING 
AND 
WHICH 
IS 
NEITHER 
THREATENING NOR DANGEROUS; AND 
H) 
RIGHT TO INFORMATION -
PROTECTION AGAINST 
DISHONEST OR MISLEADING ADVERTISING OR LABELING AND 
BE GIVEN THE PRODUCT FACTS AND INFORMATION NEEDED 
TO MAKE AN INFORMED CHOICE." 
SEC. 3. Republic Act No. 7394, otherwise known as the "Consumer Act of the 
Philippines" is hereby amended by inserting a new Article 4 under Title I General Provisions to 
read as follo1ws: 
"ART. 4. THE FIVE (5) 
CONSUMER RESPONSIBILITIES -
IN 
CONNECTION WITH HIS ENTITLEMENT OF THE BASIC RIGHTS 
STATED IN THE PRECEDING SECTION, THE CONSUMER SHALL 
EXERCISE THE FOLLOWING RESPONSIBILITIES: 
A) 
CRITICAL AWARENESS 
-
BE MORE 
ALERT 
AND 
QUESTIONING ABOUT THE USES, THE PRICE AND QUALITY OF 
GOODS AND SERVICES PURCHASED. 
B) 
CONSUMER ACTION - ASSERT AND ACT TO ENSURE 
THAT HIS RIGHTS ARE PROTECTED AND THAT HE IS NOT 
EXPLOITED. 
C) 
SOCIAL CONCERN - BE MORE AWARE OF THE IMP ACT 
OF HIS CONSUMPTION ON OTHER CITIZENS, ESPECIALLY THE 
DISADVANTAGED OR POWERLESS GROUPS, WHETHER IN THE 
LOCAL, NATIONAL, OR INTERNATIONAL COMMUNITY. 
D) 
ENVIRONMENTAL AWARENESS -
UNDERSTAND THE 
ENVIRONMENTAL CONSEQUENCES OF HIS CONSUMPTION. HE 
SHOULD 
RECOGNIZE 
INDIVIDUAL 
AND 
SOCIAL 
Page 2 of18 


I 
RESPONSIBILITY TO CONSERVE NATURAL RESOURCES AND 
2 
PROTECT THE EARTH FOR FUTURE GENERATIONS. 
3 
E) 
SOLIDARITY -
ORGANIZE CONSUMER GROUPS TO 
4 
DEVELOP THEIR STRENGTH AND INFLUENCE TO PROMOTE 
5 
AND PROTECT CONSUMER INTERESTS." 
6 
SEC. 4. Article 4, Title I - General Provisions of Republic Act No. 7394, otherwise 
7 
known as the "Consumer Act of the Philippines" is hereby amended to read as follows: 
8 
"Art. [4]6. Definition of Terms. - For purposes of this Act, the tenn: 
9 
"a) 
x x x. 
10 
"xxx. 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
n) 
"Consumer" means a natural person who is a purchaser, lessee, 
recipient or prospective purchaser, lessor or recipient of consumer 
products, 
services, 
credit, 
TECHNOLOGY, 
ADVERTISING 
OR 
PROMOTION, AND OTHER ITEMS IN COMMERCE. 
"x x x. 
q) 
"Consumer products and services" means goods, services and 
credits, debts or obligations, SERVICES which are primarily for personal, 
family, household or agricultural purposes, which shall include but not 
limited 
to 
food, 
drugs, 
cosmetics, 
and 
devices, 
PRODUCT, 
MERCHANDISE, GOODS, CREDIT, TECHNOLOGY AND OTHER 
TRANSACTIONS OR MATTERS INTENDED TO BE COVERED BY 
THIS ACT. 
"x x x. 
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 tenn shall not include 
soap.] ANY SUBSTANCE OR PREPARATION INTENDED TO BE 
APPLIED 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 TO CLEANING THEM, PERFUMING 
THEM, CHANGING THEIR APPEARANCE, CORRECTING BODY 
ODORS, OR MAINTAINING THEM IN HEALTHY CONDITION." 
"x x x. 
w) 
"Credit card" means any card, plate, coupon book or other credit 
SINGLE device existing for the purpose of BEING USED FROM TIME 
Page 3 of 18 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
TO TIME UPON PRESENTATION TO obtain[ing] money, property, 
labor or services on credit. 
"x x x. 
aj) 
"Guarantee" means an expressed or implied assurance of the REAL 
quality, COST, PRICE, 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 productS 
or 
SERVICES 
BASED 
ON 
APPLICABLE 
AND 
ACTUAL 
DOCUMENTS IN ACCORDANCE WITH THE LAW, MORALS, 
GOOD FAITH AND PUBLIC POLICY." 
"x x x. 
at) 
"Mass media" refers to any means or methods used to convey 
advertising messages to the public such as television, radio, THE 
INTERNET, MOBILE PHONES AND SIMILAR ELECTRONIC 
DEVICES, magazines, cinema, billboards, posters, streamers, hand bills, 
leaflets, mails and the like. 
"x x x. 
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 purchas[e]ING [the purchase 
of] a product, security, service or winning in contest, game, tournament 
and other similar competitions OR CHALLENGES which involve 
determination of winnerls and which utilize' mass media or other 
widespread media of information such as INFORMATION AND 
COMMUNICATION TECHNOLOGY. It also means techniques purely 
intended to increase the sales, patronage andlor goodwill of [a product], 
TRANSACTION 
FOR, 
PURCHASING, 
OR 
RECEIVING 
OF, 
CONSUMER PRODUCTS AND SERVICES. 
"x x x. 
bny "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. 
Page 4 of18 


1 
"xxx. 
2 
br) 
"Standard" means a set of conditions to be fulfilled to ensure the 
3 
quality and safety of a product AND SERVICE; 
4 
"xxx." 
5 
SEC. 5. Article 6, Chapter I - Consumer Product Quality and Safety of Republic Act No. 
6 
7394, otherwise known as the "Consumer Act of the Philippines" is hereby amended to read as 
7 
follows: 
8 
"Art. [6) 8. Implementing Agencies. - The provisions of this Act and its 
9 
implementing rules and regulations shall be enforced by: 
10 
a) 
the Department of Health with respect to PROCESSED food, 
11 
drugs, cosmetics, devices and HAZARDOUS substances; 
12 
b) 
the Department of Agriculture with respect to products related to 
13 
agriculture AND FISHERIES; and 
14 
c) 
the Department of Trade and Industry 'with respect to other 
15 
consumer products not specified above." 
16 
SEC. 6. Article 8, Chapter I - Consumer Product Quality and Safety of Republic Act No. 
17 
7394, otherwise known as the "Consumer Act of the Philippines" is hereby amended to read as 
18 
follows: 
19 
"Art. [8)10. Publication of Consumer Product Standards. - The department 
20 
concerned shall, upon promulgation of the above standards, publish or cause the 
21 
publication of the same EITHER in a newspaper of general circulation, in the 
22 
OFFICIAL GAZETTE, OR IN THE DEPARTMENT'S OR AGENCY'S 
23 
OFFICIAL WEB PORTAL. It may likewise conduct an information campaign 
24 
through other means deemed effective to ensure the proper guidance of 
25 
consumers, businesses, industries and other sectors concerned." 
26 
SEC. 7. Article 10, Chapter I - Consumer Product Quality and Safety of Republic Act 
27 
No. 7394, otherwise known as the "Consumer Act of the Philippines" is hereby amended to read 
28 
as follows: 
29 
"Art. [10)12. Injurious, Dangerous and Unsafe Products. - Whenever the 
30 
departments .find, by their own initiative or by petition of a consumer, that a 
31 
consumer product is found to be injurious, unsafe or dangerous, it shall, after due 
32 
notice and hearing, make the appropriate order for its recall, prohibition or seizure 
33 
from public sale or distribution: Provided, That, in the sound discretion of the 
34 
department itmay declare a consumer product to be imminently injurious, unsafe 
35 
or dangerous, and order its immediate recall, ban or seizure from public sale or 
36 
distribution, in which case, the seller, distributor, manufacturer or producer 
37 
thereof shall be afforded a hearing within forty-eight (48) hours from such order: 
38 
PROVIDED, FURTHER, THAT ANY ESTABLISHMENT CAUGHT IN 
Page 5 of18 


1 
FLAGRANTE DELICTO SELLING, DISTRIBUTING, MANUFACTURING, 
2 
PRODUCING, OR IMPORTING SUBSTANDARD AND HAZARDOUS 
3 
PRODUCTS SHALL BE AUTOMATICALLY CLOSED 'AND SHUT DOWN, 
4 
"x x x." 
5 
SEC. 8. Article 11, Chapter I - Consumer Product Quality and Safety of Republic Act 
6 
No. 7394, otherwise known as "Consumer Act of the Philippines" is hereby amended to read as 
7 
follows: 
8 
"Art. [11]13. Amendment and Revocation of Declaration of the Injurious, 
9 
Unsafe or Dangerous Character of a Consumer Product. - Any interested 
10 
person may petition the appropriate department to commence a proceeding for the 
11 
issuance of an amendment or revocation of a consumer product safety rule or an 
12 
order declaring a consumer product injurious, dangerous and unsafe. 
13 
In case the department, upon petition by an interested party or its own initiative 
14 
and after due notice and hearing, determines a consumer product to be 
15 
substandard or materially defective, it shall so notify the manufacturer, distributor 
16 
or seller thereof of such finding and order such manufacturer, distributor or seller 
17 
to WITHOUT DELAY: 
18 
19 
20 
a) 
give notice to the public of the defect or failure to comply with the 
product safety standards; 
b) 
give notice to each distributor or seller of such product; and 
21 
c) 
WHEN POSSIBLE, GIVE NOTICE TO EVERY PERSON TO 
22 
WHOM SUCH CONSUMER PRODUCT WAS DELIVERED OR 
23 
SOLD. 
24 
The department shall also direct the manufacturer, distributor or seller of such 
25 
product to extend WITHIN REASONABLE TIME any or all of the following 
26 
remedies to the injured person: 
27 
"x x x." 
I 
28 
SEC. 9. Republic Act No. 7394, otherwise known as the "Consumer Act of the 
29 
Philippines~' is hereby amended by inserting a new Article 14 unde; Chapter I - Consumer 
30 
Product Quality and Safety to read as follows: 
31 
"ART. 14. PHYSICAL SAFETY -MANUFACTURERS OR DISTRIBUTORS 
32 
SHOULD ENSURE THAT AS SOON AS THEY BECOME AWARE OF 
33 
UNFORESEEN HAZARDS AFTER PRODUCTS ARE PLACED ON THE 
34 
MARKET, THEY SHOULD NOTIFY THE GOVERNMENT AUTHORITIES 
35 
CONCERNED AND, AS APPROPRIATE, INFORM THE PUBLIC WITHOUT 
36 
DELAY. THE GOVERNMENT SHOULD ALSO ESTABLISH MECHANISMS 
37 
FOR ENSURING THAT CONSUMERS ARE PROPERLY INFORMED OF 
38 
SUCH HAZARDS." 
Page 6 of18 


~~--~-----------
1 
SEC. 10. Article 52, Chapter I - Deceptive, Unfair, and Unconscionable Sales Acts or 
2 
Practices, Title III of Republic Act No. 7394, otherwise known as the "Consumer Act of the 
3 
Philippines" is hereby amended to read as follows: 
4 
"Art. [52] 55. Unfair or Unconscionable Sales Act or Practice. x x x 
5 
In determining whether an act or practice is unfair and unconscionable, the 
6 
following circumstances shall be considered: 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
"a) x x x. 
"x x x. 
"d) that the transaction that the seller or supplier induced the consumer to 
enter into was excessively one-sided in favor of the seller or supplier 
SUCH AS BUT NOT LIMITED TO: 
I. 
II. 
THAT WHEN THE CONSUMER TRANSACTION WAS 
ENTERED 
INTO, 
THE 
SELLER 
OR 
SUPPLIER 
IMPOSED 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 
THE 
SELLER 
OR 
SUPPLIER 
EMPLOYS 
AN 
AGGRESSIVE 
MARKETING 
PRACTICE 
THAT 
SIGNIFICANTLY CONSTRAINS OR IMP AIRS OR IS 
24 
LIKELY 
TO 
SIGNIFICANTLY 
CONSTRAIN 
OR 
25 
IMPAIR THE AVERAGE CONSUMER'S FREEDOM OF 
26 
CHOICE OR CONDUCT WITH REGARD TO THE 
27 
PURCHASE OF A PRODUCT OR SERVICE THAT 
28 
CAUSES HIM OR IS LIKELY TO CAUSE HIM TO 
29 
ENTER 
INTO 
A 
CONSUMER 
TRANSACTION 
30 
DIFFERENT FROM THE ONE HE WOULD HAVE 
31 
INTENDED, OR HE WOULD NOT HAVE DONE 
32 
WITHOUT THE MARKETING PRACTICE." 
33 
SEC. 11. Article 81, Chapter IV - Labeling and Fair Packaging, Title III of Republic Act 
34 
No. 7394, otherwise known as the "Consumer Act of the Philippines" is hereby amended to read 
35 
as follows: 
36 
"Art.[81]84. Price Tag Requirement. -
It shall be unlawful to offer any 
37 
consumer product OR SERVICE for retail sale to the public without an 
38 
appropriate price tag, lahel, or marking, OR WITH MORE THAN ONE PRICE, 
Page 7 of18 
I' 


1 
OR DIFFERENT PRICE TAGS, LABELS, OR MARKINGS publicly displayed 
2 
to indicate of each article and said products shall not be sold at a price higher than 
3 
that stated therein and without discrimination to all buyers: PROVIDED, THAT 
4 
IT SHALL BE UNLAWFUL FOR ANY RET AlLER TO CHARGE THE 
5 
CUSTOMERS MORE THAN THE ACTUAL CASH RETAIL PRICE OF THE 
6 
GOODS OR SERVICES PURCHASED WHEN SUCH PURCHASE IS DONE 
7 
WITH THE USE OF CREDIT CARD AND/OR TO LIMIT BARGAIN SALE 
8 
ITEMS AND SERVICES TO CASH PURCHASES: Provided, further, That 
9 
lumber sold, displayed or offered for sale to the public shall be tagged or labeled 
10 
by indicating thereon the price and the corresponding official name of the wood: 
11 
PROVIDED, FINALLY, That if consumer products for sale are too small or the 
12 
nature of which makes it impractical to place a price tag thereon price list placed 
13 
at the nearest point where the products are displayed indicating the retail price of 
14 
the same may suffice." 
15 
SEC. 12. Republic Act No. 7394, otherwise known as the "Consumer Act of the 
16 
Philippines" is hereby amended by inserting a new Article 87 under Chapter IV Labeling and 
17 
Fair Packaging, Title III to read as follows: 
18 
"ART. 87. ENGLISH OR FILIPINO TRANSLATIONS OF PRODUCT 
19 
LABELS 
WRITTEN IN FOREIGN CHARACTERS/LANGUAGES. 
-
20 
CONSUMER PRODUCTS WITH PRODUCT LABELS WRITTEN IN 
21 
FOREIGN CI:IARACTERS/LANGUAGE SHALL BE ALLOWED ENTRY 
22 
INTO THE COUNTRY AND INTRODUCED INTO COMMERCE ONLY IF 
23 
THEY 
HAVE 
A 
CORRESPONDING 
ENGLISH 
OR 
FILIPINO 
24 
TRANSLATION TO ENABLE THE AUTHORITIES TO DETERMINE 
25 
WHETHER THE PRODUCT HAS COMPLIED WITH ALL THE OTHER 
26 
LABELING REQUIREMENTS AS WELL AS PROVIDE THE CONSUMERS 
27 
PROPER GUIDANCE ON THE CONTENTS AND ORIGIN OF THE 
28 
PRODUCT." 
29 
SEC. 13. Republic Act No. 7394, otherwise known as the "Consumer Act of the 
30 
Philippines" is hereby amended by inserting a new Article 88 under Chapter IV Labeling and 
31 
Fair Packaging to read as follows: 
I 
32 
"ART. 88. OFFICIAL SOURCES OF INFORMAT"!ON FOR IMPORTED 
33 
CONSUMER PRODUCTS. -
IMPORT DATA FROM THE BUREAU OF 
34 
CUSTOMS 
AND 
BUREAU 
OF 
IMPORT 
SERVICES 
SHALL 
BE 
35 
RECOGNIZED 
AS 
OFFICIAL 
SOURCES 
OF 
INFORMATION 
TO 
36 
VALIDATE THE FOLLOWING 
INFORMATION RELATIVE TO 
A 
37 
PARTICULAR IMPORTED CONSUMER PRODUCT: 
38 
1. 
COUNTRY OF MANUFACTURE; 
Page 8 of18 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
2. 
3. 
4. 
NAME AND ADDRESS OF MANUFACTURER / EXPORTER' , 
NAME AND ADDRESS OF IMPORTER/CONSIGNEE; 
VALUE AND VOLUME OF SHIPMENT; 
5. 
DATE OF ARRIVAL, AND; 
6. 
OTHER INFORMATION RELEVANT TO THE SHIPMENT IN 
QUESTION." 
SEC. 14. Republic Act No. 7394, otherwise known as the "Consumer Act of the 
Philippines" is hereby amended by inserting a new Article 115 under Chapter VI -Advertising 
and Sales Promotion, Title III to read as follows: 
"ART. 115. COVERAGE OF ADVERTISING AND SALES PROMOTION. -
THE PROVISIONS ON ADVERTISING AND SALES PROMOTION SHALL 
APPLY 
TO 
ADVERTISING 
AND 
PROMOTION 
OF 
CONSUMER 
PRODUCTS, SERVICES AND CREDIT FACILITIES, WHICH INCLUDE 
SPONSORSHIPS OF PROGRAMS, CONCERTS, GAMES, SHOWS AND 
SIMILAR ACTIVITIES. PROVIDED, THAT WITH RESPECT TO FOOD, 
DRUGS, DEVICES, COSMETICS AND HAZARDOUS SUBSTANCES AND 
AGRICULTURAL PRODUCTS, THE SAME SHALL BE UNDER THE 
JURISDICTION OF THE DEPARTMENTS CONCERNED." 
SEC. 15. Republic Act No. 7394, otherwise known as the "Consumer Act of the 
Philippines"j is hereby amended by inserting a new Article 116 under Chapter VI -Advertising 
and Sales Promotion, Title III to read as follows: 
I "ART. 116. COVERAGE - THESE PROVISIONS SHALL APPLY TO THE 
PHILIPPINE 
ADVERTISING 
COMMUNITY 
WHICH 
INCLUDES 
ADVERTISERS, ADVERTISING AGENCIES, MEDIA AND ADVERTISING 
SUPPORT GROUPS BUT SHALL NOT APPLY TO THE FOLLOWING: 
1) 
PUBLIC SERVICE AND EMERGENCY ANNOUNCEMENTS OF 
UTILITY COMPANIES. 
2) 
RELIGIOUS, 
POLITICAL 
AND 
PUBLIC 
ISSUE 
ADVERTISEMENTS AND ANNOUNCEMENTS, EXCEPT WHERE 
THESE INVOLVE OR SEEK TO PROMOTE COMMERCIAL 
TRANSACTIONS. 
3) STANDARD TRANSPORT ANNOUNCEMENTS, CLASSIFIED 
ADVERTISEMENTS AND OBITUARIES." 
34 
SEC. 16. Republic' Act No. 7394, otherwise known as the "Consumer Act of the 
35 
Philippines" is hereby amended by inserting a new Article 117 under Chapter VI -Advertising 
36 
and Sales Promotion, Title III to read as follows: 
37 
"ART. 117. ADVERTISING GENERAL PRINCIPLES-ADVERTISEMENTS 
38 
SHALL BE GUIDED BY THE FOLLOWING PRINCIPLES: 
Page 9 of18 


------
1 
(1) ADVERTISING MUST PROVIDE THE GENERAL PUBLIC WITH 
2 
RELEVANT AND TRUTHFUL INFORMATION ON PRODUCTS AND 
3 
SERVICES, THEREBY HELPING CONSUMERS MAKE INFORMED 
4 
CHOICES. 
5 
(2) THE ADVERTISING INDUSTRY SHOULD CONTINUE TO 
6 
IMPROVE THE LEVELS AND STANDARDS OF ADVERTISING." 
7 
SEC. 17. Republic Act No. 7394, otherwise known as the "Consumer Act of the 
8 
Philippines" is hereby amended by inserting a new Article 118 under Chapter VI -Advertising 
9 
and Sales P~omotion, Title III to read as follows: 
10 
"ART. 118. PRESENTATION OF ADVERTISEMENTS - (1) CLAIMS OF 
11 
PRODUCTS AND SERVICE PROPERTIES OR THEIR INTENDED USAGE 
12 
SHOULD BE CLEARLY PRESENTED AND SHOULD NOT MISLEAD OR 
13 
BE LIKELY TO MISLEAD THE PERSONS TO WHOM THEY ARE 
14 
ADDRESSED BY INACCURACY, AMBIGUITY, EXAGGERATION OR 
15 
OMISSION. 
16 
(2) ANY TEST OR DEMONSTRATION MAY BE USED ONLY IF IT 
17 
DIRECTLY PROVES THE CLAIMED PRODUCT OR SERVICE PROPERTY 
18 
OR CHARACTERISTICS AND SHOULD BE PRESENTED CLEARLY AND 
19 
ACCURATELY. 
20 
(3) CORPORATE ADVERTISING MUST BE FAIR, TRUTHFUL AND 
21 
ACCURATE; IT SHOULD NOT CONTAIN ANY EXAGGERATIONS OR 
22 
SWEEPING GENERALIZATIONS THAT MAY MISLEAD THE PUBLIC 
23 
REGARDING THE ADVERTISER OR THE ATTRIBUTES OF 
ITS 
24 
PRODUCTS OR SERVICES. WHERE THE ADVERTISEMENTS CONTAIN 
25 
SPECIFIC CLAIMS REGARDING THE COMPANY OR ITS PRODUCTS OR 
26 
SERVICES, SUCH CLAIMS MUST BE VERIFIABLE AND SUBJECT TO 
27 
SUBSTANTIATION IN THE SAME MANNER AS REGULAR PRODUCT OR 
28 
SERVICE ADVERTISEMENTS." 
29 
SEC. 18. 
Article 11 0, Chapter VI -Advertising and Sales Promotion, Title III of 
30 
Republic Act No. 7394, otherwise known as the "Consumer Act of the Philippines" is hereby 
31 
amended to read as follows: 
32 
"Art. [110] 119. False, Deceptive or MislPading Advertisement. - It shall be 
33 
unlawful for any person to disseminate or to cause the dissemination of any false, 
34 
deceptive or misleading advertisement by Philippine mail or in commerce by 
35 
print, radio, television, outdoor advertisement, INTERNET, MOBILE PHONE, or 
36 
other medium for the purpose of inducing or which is likely to induce directly or 
. 37 
indirectly the purchase of consumer products or services." 
38 
"xxx." 
Page 10 oft8 


1 
SEC. 19. Republic Act No. 7394, otherwise known as the "Consumer Act of the 
2 
Philippines" is hereby amended by inserting a new Article 120 under Chapter VI -Advertising 
3 
and Sales Promotioll, Title III to read as follows: 
4 
"ART. 120. SPECIFIC CLAIMS - (1) INGREDIENT ADVERTISING - (A) 
5 
ADVERTISEMENTS SHOULD NOT CONTAIN ANY REFERENCE WHICH 
6 
COULD LEAD THE PUBLIC TO ASSUME THAT A PRODUCT CONTAINS 
7 
A SPECIFIC INGREDIENT UNLESS THE INGREDIENT'S QUANTITIES 
8 
AND PROPERTIES AS WELL AS THE MATERIAL BENEFIT THAT 
9 
RESULTS FROM ITS INCLUSION IN THE PRODUCT FORMULATION 
10 
HAVE 
BEEN 
TECHNICALLY 
SUBSTANTIATED; 
AND 
(B) 
11 
ADVERTISEMENTS SHOULD NOT IMPLY THAT A CERTAIN BENEFIT IS 
12 
DUE TO A SPECIFIC INGREDIENT UNLESS A VERIFIABLE CAUSE AND 
. 
13 
EFFECT RELATIONSHIP EXISTS. 
14 
(2) PROFESSIONAL DATE REFERENCES -
ADVERTISEMENTS USING 
15 
THE RESULTS OF A BONA FIDE RESEARCH, SURVEYS, OR TEST 
16 
RELATING 
TO 
A 
PRODUCT 
SHOULD 
NOT 
BE 
PRESENTED 
17 
INACCURATELY OR IN A MISLEADING MANNER, NOR SHOULD IT 
18 
CLAIM 
ANY 
IMPLICATIONS 
BEYOND 
WHAT 
IS 
CLEARLY 
19 
ESTABLISHED BY RESEARCH, SURVEY OR TEST. 
20 
(3) 
SCIENTIFIC CLAIMS -
(A) 
VISUAL REPRESENTATIONS 
OF 
21 
LABORATORY SETTINGS MAY ONLY BE EMPLOYED PROVIDED THE 
22 
RESEARCH WAS CONDUCTED IN THE LABORATORY; 
AND (B) IN 
23 
CASE 
OF 
REFERENCES 
TO 
TESTS 
BY 
PROFESSIONALS 
OR 
24 
I INSTITUTIONS 
INCLUDING 
BUT NOT 
LIMITED' TO 
DOCTORS, 
25 
ENGINEERS, 
RESEARCH 
FOUNDATIONS, 
DOCUMENTED 
AND 
26 
AUTHORITATIVE 
EVIDENCE 
SHOULD 
BE 
SUBMITTED 
TO 
27 
SUBSTANTIATE SUCH TESTS AND THE CLAIMS BASED THEREON. 
28 
(4) NUMBER 1 OR LEADERSHIP CLAIM - (A) NO "NUMBER I" CLAIM 
29 
WITH RESPECT TO ANY PRODUCT OR SERVICE SHALL BE ALLOWED 
30 
UNLESS IT IS CLEARLY DELINEATED AND QUALIFIED AS TO RENDER 
31 
THE CLAIM OBJECTIVELY VERIFIABLE. THE CLAIM SHOULD, IN ANY 
32 
CASE, BE SUBSTANTIATED. 
33 
(5) TESTIMONIALS - (A) TESTIMONIAL CLAIMS RELATING TO THE 
34 
PRODUCT 
BEING 
ADVERTISED 
SHOULD 
BE 
GENUINE 
AND 
35 
TRUTHFUL. 
36 
(B) INDIVIDUALS ENDORSING A PRODUCT OR SERVICE IN 
37 
COMMUNICATION MATERIALS AND WHO IS PRESENTED AS 
38 
AN EXPERT MUST HAVE DEMONSTRABLE CREDENTIALS TO 
Page 11 of18 


1 
2 
3 
4 
SUBSTANTIATE THE CLAIMED EXPERTISE. HIS OR HER 
ENDORSEMENT MUST BE SUPPORTED 
BY AN ACTUAL 
EXERCISE OF HIS EXPERTISE IN EVALUATING THE PRODUCT 
OR 
SERVICE 
FEATURES 
OR 
CHARACTERISTICS. 
SUCH 
5 
EVALUATION MUST BE RELEVANT AND AVAILABLE TO AN 
6 
ORDINARY CONSUMER'S USE OF OR EXPERIENCE WITH THE 
7 
PRODUCT. 
8 
(C) ENDORSEMENTS BY AN ORGANIZATION ARE CONSIDERED 
9 
AS JUDGMENT BY A GROUP WHOSE COLLECTIVE EXPERIENCE 
10 
OUTWEIGHS THAT OF AN INDIVIDUAL MEMBER. ADVERTISER 
11 
MUST PROVIDE EVIDENCE THAT THE ORGANIZATION'S 
12 
ENDORSEMENT WAS REACHED BY A PROCESS SUFFICIENT TO 
13 
ENSURE THAT IT REFLECTS THE COLLECTIVE JUDGMENT OF 
14 
THE ORGANIZATION. 
15 
THE ORGANIZATION MAY BE CONSIDERED LEGITIMATE IF IT 
16 
CAN PRESENT PROOF OF EXISTENCE FOR AT LEAST ONE 
17 
YEAR." 
18 
SEC. 20. Republic Act No. 7394, otherwise known as the "Consumer Act of the 
19 
Philippines" is hereby amended by inserting a new Article 125 under Chapter VI -Advertising 
20 
and Sales Promotion, Title III to read as follows: 
21 
"ART. 125. COVERAGE AND EXEMPTION OF THE SALES PROMOTION 
22 
OF CONSUMER PRODUCTS AND SERVICES. (A) COVERAGE OF THE 
23 
SALES PROMOTION OF CONSUMER PRODUCTS AND SERVICES - THE 
24 
PROVISIONS ON SALES PROMOTIONS OF THE CONSUMER PRODUCTS 
25 
AND SERVICES SHALL APPLY TO ALL PROMOTIONAL CAMPAIGNS 
26 
AND ANNOUNCEMENTS FOR CONSUMER PRODUCTS, SERVICES, 
27 
CREDIT FACILITIES, AS WELL AS BEAUTY CONTESTS, NATIONWIDE 
28 
IN CHARACTER. 
29 
THE PROVISIONS OF SALES PROMOTION OF CONSUMER PRODUCTS 
30 
AND SERVICES SHALL LIKEWISE APPLY TO SIMILAR ACTIVITIES 
31 
SUCH AS BUT NOT LIMITED TO IN-STORE PROMOTIONS OFFERING 
32 
REDUCED PRICES, 
SPECIAL OFFERS, PRODUCT DEMONSTRATION, 
33 
PRODUCT SAMPLES, REBATES, DISCOUNTS, PREMIUM-IN-PACK, AND 
34 
EXPERT ADVICE. 
35 
(B) EXEMPTION OF THE SALES PROMOTION OF CONSUMER PRODUCTS 
36 
AND SERVICES -
THE PROVISIONS OF SALES PROMOTION OF 
37 
CONSUMER PRODUCTS AND SERVICES SHALL NOT APPLY TO THE 
38 
FOLLOWING PROMOTIONAL CAMPAIGNS OR ACTIVITIES: 
Page 12 of18 


1 
2 
3 
4 
5 
6 
(1) 
GOVERNMENT 
OR 
ANY 
OF 
ITS 
AGENCIES 
OR 
INSTRUMENTALITIES, WHEN THE SAME IS CONDUCTED IN THE 
EXERCISE OF THEIR GOVERNMENTAL FUNCTIONS. 
(2). 
PRIVATE ENTITIES IN JOINT PROJECT/S WITH ANY 
GOVERNMENT AGENCY UNDER THE PRECEDING PARAGRAPH. 
(3) 
SOCIAL, CIVIC, POLITICAL, RELIGIOUS, EDUCATIONAL, 
7 
PROFESSIONAL AND OTHER SIMILAR ORGANIZATIONS WHICH 
8 
EXTEND PROMOTIONAL ACTIVITY AMONG THEIR MEMBERS: 
9 
PROVIDED, THAT THE PROMOTIONAL ACTIVITY IS NOT 
10 
CONSIDERED SALES PROMOTIONAL CAMPAIGN AS DEFINED 
11 
UNDER THIS ACT." 
12 
SEC. 21. Article 116, Chapter VI -Advertising and Sales Promotion, Title III of 
13 
Republic Act No. 7394, otherwise known as the "Consumer Act of the Philippines" is hereby 
14 
amended to read as follows: 
15 
16 
17 
18 
19 
20 
21 
22 
23 
"ART. [1161126. 
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 without first securing 
a permit from the concerned department [at least thirty (30) calendar days I 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 
24 
prescriptions or any part thereof or attachment thereto for raffles or a promise of 
25 
reward shall not be allowed, nor a permit be issued thereof." 
26 
SEC. 22. Republic Act No. 7394, otherwise known as the "Consumer Act of the 
27 
Philippines" is hereby amended by inserting a new Article 127 under Chapter VI - Advertising 
28 
and Sales piomotion, Title III, to read as follows: 
29 
I "ART. 127. APPLICATION FOR PERMIT - (A) THE APPLICATION FOR 
30 
PERMIT SHALL BE IN THE FORM PRESCRIBED BY THE DEPARTMENT 
31 
CONCERNED. 
32 
(B) WHO MAY FILE THE APPLICATION FOR PERMIT - THE PERSON 
33 
WHOSE CONSUMER PRODUCTS, SERVICES, CREDIT FACILITIES, 
34 
BEAUTY CONTESTS, COMPETITION, GAMES SHOWS AND THE LIKE 
35 
ARE BEING PROMOTED. 
36 
THE ABOVE PERSON SHALL SIGN THE APPLICATION INDIVIDUALLY 
37 
OR JOINTLY WITH THE OTHERS OR SUBMIT THEREWITH A TRUE 
38 
COPY OF ANY WRITTEN AGREEMENT BETWEEN OR AMONG 
Page 13 of18 


1 
THEMSELVES, REFLECTING THE DEGREE OR EXTENT OF THEIR 
2 
PARTICIPATION AND RESPONSIBILITY IN THE CONDUCT OF THE 
3 
PROMOTIONAL ACTIVITY COVERED BY THIS ACT OR THE RULES. 
4 
WHERE NO LIMITATION AS TO THE EXTENT OF THE LIABILITY OR 
5 
RESPONSIBILITY IS INDICATED IN SUCH AGREEMENT, ALL OF THEM 
6 
SHALL BE JOINTLY AND SEVERALLY LIABLE AND RESPONSIBLE 
7 
THEREFOR. 
8 
(C) APPLICA710N THROUGH AND BY AN AGENT -
WHERE THE 
9 
PROMOTIONAL CAMPAIGN/ACTIVITY IS APPLIED FOR AND IN 
10 
BEHALF OF THE PERSONS MENTIONED IN PARAGRAPH (A) HEREOF, 
11 
THE AGENT SHALL BE AUTHORIZED BY A SPECIAL POWER OF 
12 
ATTORNEY 
OR A 
BOARD 
RESOLUTION 
AS 
EVIDENCED 
BY 
13 
SECRETARY'S CERTIFICATE AS THE CASE MAY BE." 
14 
SEC. 23. Republic Act No. 7394, otherwise known as the "Consumer Act of the 
15 
Philippines" is hereby amended by inserting a new Article 128 under Chapter VI - Advertising 
16 
and Sales Promotion, Title III, to read as follows: 
17 
I "ART. 128. PROHIBITED ACTS IN THE CONDUCT OF SALES 
18 
PROMOTION -
"THE FOLLOWING ACTS ARE PROHIBITED IN THE 
19 
CONDUCT OF SALES PROMOTION CAMPAIGN: 
20 
(A) GAMBLING AND WAGERING SCHEMES; 
21 
(B) USE OF MEDICAL PRESCRIPTIONS; AND 
22 
(C) NO PERSON SHALL DIRECTLY OR INDIRECTLY TAMPER 
23 
WITH THE ENTRIES, PARAPHERNALIA AND/OR ELECTRONIC 
24 
DEVICE IN A PROMOTIONAL CAMPAIGN/ACTIVITY COVERED 
25 
BY THIS ACT OR THE RULES NOR UNDULY INFLUENCE THE 
26 
RESULTS THEREOF, NOR PERFORM ANY ACT TO THE 
27 
PREJUDICE OF LEGITIMATE PARTICIPANTS OR WINNERS." 
28 
SEC. 24. Republic Act No. 7394, otherwise known as the "Consumer Act of the 
29 
Philippines" is hereby amended by inserting a new Article 129 under Chapter VI - Advertising 
30 
and Sales Promotion, Title III, to read as follows: 
31 
"ART. 
129. 
VOLUNTARY 
CANCELLATION 
OF 
APPROVED 
32 
PROMOTIONAL 
CAMPAIGN/ACTIVITY 
(A) 
VOLUNTARY 
33 
CANCELLATION 
BEFORE 
PUBLICATION 
-
A 
PERSON 
MAY 
34 
VOLUNTARILY 
CANCEL 
OR 
DISCONTINUE 
THE 
APPROVED 
35 
PROMOTIONAL CAMPAIGN/ACTIVITY PROVIDED NO INFORMATION 
36 
DISSEMINATION AND ADVERTISING THEREON HAS BEEN MADE AND 
37 
THAT A WRITTEN NOTICE BE SUBMITTED TO THE DEPARTMENT 
38 
PRIOR TO SUCH VOLUNTARY CANCELLATION. 
Page 14 of18 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
(B) VOLUNTARY CANCELLATION AFTER PUBLICATION -
IF ANY 
ANNOUNCEMENT, INFORMATION DISSEMINATION OR ADVERTISING 
OF THE PROMOTIONAL CAMPAIGN/ACTIVITY HAS ALREADY BEEN 
MADE, BUT THE PROMOTION PERIOD HAS NOT YET COMMENCED, 
THE DISCONTINUANCE OR CANCELLATION OF THE PROMOTION 
MAYBE MADE ONLY UPON PRIOR WRITTEN NOTICE TO THE 
DEPARTMENT WITHIN A PERIOD OF NOT LESS THAN FIVE (5) DAYS 
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/ACTIVITIES SHALL 
NOT BE ALLOWED EXCEPT UPON PRIOR WRITTEN APPROVAL BY 
THE DEPARTMENT WHICH SHALL BE BASED ON ANY OF THE 
FOLLOWING GROUNDS: 
(I) A FINAL JUDGMENT OF VOLUNTARY INSOLVENCY OR 
BANKRUPTCY AGAINST THE PERSON WHO APPLIED; 
(II) OCCURRENCE OF ANY FORTUITOUS EVENT OR FORCE 
MAJEURE THAT WILL MAKE IT IMPOSSIBLE TO CONTINUE THE 
PROMOTIONAL 
CAMPAIGN 
OR 
ACTIVITY: 
PROVIDED, 
23 
HOWEVER, TRA T THOSE WHO HAD ALREADY WON IN THE 
24 
PROMOTION BEFORE THE APPROVAL OF THE CANCELLATION 
25 
OR DISCONTINUANCE OR SUSPENSION SHALL BE PAID OR 
26 
GIVEN THEIR PRIZES." 
27 
SEC. 25. Republic Act No. 7394, otherwise known as the "Consumer Act of the 
28 
Philippines" is hereby amended by inserting a new Article 132 under Chapter VI - Advertising 
29 
and Sales Promotion, Title III to read as follows: 
30 
"ART. 132. RULES ON MECHANICS - ALL COVERED PROMOTIONAL 
31 
CAMPAIGNS AND ACTIVITIES SHALL ABIDE BY OR COMPLY WITH 
32 
THE RULES ON THE MECHANICS OF THE PROM9TION SET FORTH IN 
33 
THE IMPLEMENTING RULES AND REGULATIONS OF THE AGENCY 
34 
CONCERNED." 
35 
SEC. 26. Republic Act No. 7394, otherwise known as the "Consumer Act of the 
36 
Philippines" is he~eby amended by inserting a new Article 136 under Chapter VI - Advertising 
37 
and Sales Promotion, Title III to read as follows: 
Page 15 of18 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
"ART. 136. SELECTION OF PARTICIPANTS AND WINNERS. THE 
SELECTION OF PARTICIPANTS AND WINNERS OF A PROMOTIONAL 
PROGRAM SHALL BE GUIDED BY THE FOLLOWING: 
(A) 
MODE 
OF 
SELECTION 
OF 
PROSPECTIVE 
PARTICIPANTS/ENTRIES 
PROSPECTIVE 
PARTICIPANTS/ENTRIES ARE 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. 
(B) DETERMINATION OF WINNERS - DRAW DATE OR DATES 
FOR THE SELECTION OF PARTICIPANTS OR WINNERS TO A 
PROMOTIONAL CAMPAIGN OR ACTIVITY SHALL NOT BE MORE 
THAN FOURTEEN (14) DAYS AFTER THE DEADLINE OF THE 
SUBMISSION OF ENTRIES. 
WINNERS MAY BE DETERMINED THROUGH THE USE OF ANY 
TECHNIQUE NOT CONTRARY TO LAW, MORALS AND PUBLIC 
POLICY PROVIDED THE SAME SHALL BE CONDUCTED IN A 
FAIR, HONEST AND TRANSPARENT MANNER." 
SEC. 27. Republic Act No. 7394, otherwise known as the "Consumer Act of the 
I 
Philippines'? is hereby amended by inserting a new Article 162 under Ti~le IV - Consumer Credit 
Transaction1to read as follows: 
"ART. 162. IMPLEMENTING AGENCY. - THE BANGKO SENTRAL NG 
PILIPINAS SHALL STRICTLY ENFORCE THE PROVISION OF THIS 
CHAPTER AND ITS IMPLEMENTING RULES AND REGULATIONS 
EXCEPT THOSE WHICH FALL WITHIN THE JURISDICTION OF THE 
SECURITIES AND EXCHANGE COMMISSION." 
SEC. 28. Article 149, Chapter I - Establishment and Composition, Title V of Republic 
Act No. 7394, otherwise known as the "Consumer Act of the Philippines" is hereby amended to 
read as follows: 
"Art. [149]165. Composition. The Council shall be composed of representatives 
from the following government agencies and non-government agencies: 
a) 
Department of Trade And Industry; 
b) 
Department of Education, [Culture and Sports,] 
c) 
d) 
E) 
F) 
Department of Health; 
Department of Agriculture; 
DEPARTMENT OF ENERGY; 
BANGKO SENTRAL NG PILIPINAS; 
Page 16 of18 


1 
G) 
[e] four (4) representatives from the consumer organizations of 
2 
nationwide base to be chosen by the President among [the] ITS nominees 
3 
[submitted by the various groups in the Philippines]; AND 
4 
H) 
[t] two (2) representatives from the business industry/sector to be 
5 
chosen by the President from among the nominees submitted by the 
6 
various business organizations." 
7 
SEC. 29. Article 151, Chapter I - Establishment and Composition, Title V of Republic 
8 
Act No. 7394, otherwise known as the "Consumer Act of the Philippines" is hereby amended to 
9 
read as follor's: 
10 
"Art. [151]167. Per Diems o/Members. -
The members of the Council shall be 
11 
entitled to an allowance of FIVE THOUSAND PESOS (P5,000.00) [five hundred 
12 
pesos (P500.00)] per meeting actually attended but not more than TWENTY 
13 
THOUSAND PESOS (P20,000.00) [two thousand pesos (P2,000.00)] a month." 
14 
SEC. 30. Article 156, Chapter II - Powers and Functions, Title V, of Republic Act No. 
15 
7394, otherwise known as the "Consumer Act of the Philippines" is hereby amended to read as 
16 
follows: 
17 
"Art. [156] 171. Consumer Participation. - The Departments shall establish 
18 
procedures for RECOGNITION OF THE meaningful participation by consumers 
19 
or consumer organizations in the development and review of department rules, 
20 
policies, and programs. Such procedures shall include provisions for a forum, 
21 
where consumers can express their concerns and recommendations to decision-
22 
makers. The departments shall exert efforts to inform consumers of pending 
23 
proceedings where their participation is important." 
24 
SEC. 31. Article 164, Chapter III - Consumer Complaints, Title V, of Republic Act No. 
25 
7394, otherwise known as the "Consumer Act of the Philippines" is hereby amended to read as 
26 
follows: 
27 
"Art. [164] 179. Sanctions. -
After investigation, any of the following 
28 
administrative penalties may be imposed even if not prayed for in the complaint: 
29 
"a) xx x. 
30 
"x x x. 
31 
E) AUTOMATIC CANCELLATION OF A BUSINESS NAME; 
32 
[e]F)the imposition of administrative fines in such amount as deemed 
33 
reasonable by the Secretary, which shall in no case be less than FIFTY 
34 
THOUSAND PESOS (P50,000.00) [Five hundred pesos (P500.00)] nor 
35 
more than ONE MILLION PESOS (Pl,OOO,OOO.OO) [Three hundred 
36 
thousand pesos (P300,000.00)] depending on the gravity of the offense, 
37 
and an additional fine of not [more] LESS than One thousand pesos 
38 
(Pl,OOO.OO) FOR [or] each day of continuing violation." 
Page 17 of18 


1 
SEC. 32. Republic Act No. 7394, otherwise known as the "Consumer Act of the 
2 
Philippines" is hereby amended by inserting a new Article 185 under Title VI - Transitory and 
3 
Final Provisions to .read as follows: 
4 
"ART. 185. CRIMINAL PENALTIES - ANY PERSON WHO VIOLATES 
5 
ANY PROVISION OF THIS ACT SHALL, UPON CONVICTION, BE 
6 
SUBJECT TO A FINE OF NOT LESS THAN FIFTY THOUSAND PESOS 
7 
(P50,000.00) BUT NOT MOT MORE THAN ONE MILLION PESOS 
8 
(Pl,OOO,OOO.OO) OR IMPRISONMENT OF NOT LESS THAN THREE (3) 
9 
YEARS BUT NOT MORE THAN SEVEN (7) YEARS OR BOTH, UPON THE 
10 
DISCRETION OF THE COURT." 
11 
SEC. 33. Article 169, Title VI - Transitory and Final Provisions of Republic Act No. 
12 
7394, otherwise known as the "Consumer Act of the Philippines" is hereby amended to read as 
13 
follows: 
14 
"Art. [169] 186. Prescription. -
All actions or claims accruing under the 
15 
provisions of this Act and the rules and regulations issued pursuant thereto shall 
16 
prescribe within THREE (3) years [two (2)] from the time the consumer 
17 
transaction was consummated or the deceptive or unfair and unconscionable act 
18 
or practice was committed and in case of hidden defects, from discovery thereof." 
19 
SEC. 34. Renumbering of Articles. Articles of Republic Act No. 7394 are hereby 
20 
renumbered accordingly. 
21 
SEC 35. Implementing Rules and Regulations. - The Council shall promulgate the 
22 
necessary implementing rules and regulations within sixty (60) days from the effectivity of this 
23 
Act. 
24 
SEa. 36. Separability Clause. If any part or parts of this Act should, for any reason, be 
25 
declared inyalid or unconstitutional, the part or parts thereof unaffected 'shall thereby continue to 
26 
remain in full force and effect. 
27 
SEC. 37. Repealing Clause. All laws, decrees, executive order, rules and regulations and 
28 
other issuances consistent with this Act is hereby repealed or amended accordingly. 
29 
SEC. 38.- Effectivity. This Act shall take effect fifteen (15) days from the date of 
30 
pUblication in the Official Gazette or in at least two (2) newspapers of general circulation. 
Approved, 
Page 18 of18