Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

say 38
H.B.No, 495

Introduced by HONORABLE JUAN EDGARDO “SONNY” M. ANGARA

EXPLANATORY NOTE

The Consumer Act of the Philippines (RA 7394) created the National Consumer Affairs
Council (NCAC) to advance interests of consumers. It brought together the DTI, DA, DOH,
DepEd, NGOs, consumer advocates and business leaders to develop a coherent strategy of
programs and services for consumer welfare.

The Council was tasked to (1) coordinate existing consumer protection policies and
programs, (2) monitor and evaluate the implementation of these programs, (3) recommend new
policies and propose amendments to existing legislation, and (4) undertake research work on
consumer education and information campaign.

However, by being an attached office of the DT! - one of the agencies it is supposed to
monitor — NCAC's effective performance of the above functions is being affected. At the
moment, NCAC is dependent on DTI in terms of preparing and allocating its budget for the
Council's various activities and programs.

To remedy the above situation, this bill seeks to make NCAC a truly independent body
as intended by law. By placing it under the Office of the President, it shall have the power to (1)
prepare its annual budget for submission to the DBM, (2) create other positions as may be
necessary in furtherance of its mandate, and (3) assume the authority to represent consumers
in their claims and complaints involving violations of the Consumer Act.

This bill also seeks to include Bangko Sentral ng Pilipinas (BSP) as one of the
implementing agencies of the Act - an agency whose participation is of crucial importance on
matters affecting consumer credit transactions.

Likewise, this refines the composition of the Council to include representatives of the
Department of interior and Local Government (DILG) and the Philippine Information agency
(PIA) because of their important role in furthering consumer protection.

In view of the foregoing, the immediate approval of this bill earnestly sought.

a

c
JUAN re RDO “SONNY” M. ANGARA
Representative

Lone District, Province of Aurora


FIFTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES —_)
First Regular Session )

H.B.No.__

Introduced by Honorable JUAN EDGARDO “SONNY” M. ANGARA

AN ACT
TO FURTHER STRENGTHEN THE CONSUMER PROTECTION BY AMENDING FOR
THIS PURPOSE CERTAIN PROVISIONS OF REPUBLIC ACT NO. 7394,
OTHERWISE KNOWN AS THE CONSUMER ACT OF THE PHILIPPINES

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Article 6 of the Republic Act No. 7394 is hereby amended to read as
follows:

“Art. 6. Implementing Agencies- The provisions of this Article and its
implementing rules and regulations shall be enforced by

(a) The Department of Health with respect to food, drugs, cosmetics,
devices and substances;

(6) The Department of Agriculture with respect to products related to
agriculture;

(c) The department of trade and Industry with respect to other
consumer products not specified above; and,

(d) THE BANGKO SENTRAL NG PILIPINAS, WITH RESPECT TO
CONSUMER CREDIT TRANSACTIONS.”

SEC. 2. Article 8 of the Republic Act no. 7394 is hereby amended to read as follows:

“Art. 8. Publication of Consumer Products Standards- The concerned
department shall, upon promulgation of the above standards, publish or cause
the publication of the same in two (2) newspapers of general circulation of at
least once a week for a period of not less than one (1) month; PROVIDED,
HOWEVER, THAT CONSUMER PRODUCTS STANDARDS THAT ARE
VOLUMINOUS AND WHICH WILL ENTAIL UNREASONABLY HUGE
PUBLICATION EXPENSES NEED NOT BE PUBLISHED IN ITS FULL TEXT
BUT MAY BE IN THE FORM OF A NOTICE IN SUCH NEWSPAPERS, GIVING
THE ABSTRACT OF THE SUBJECT THEREOF WITH A STATEMENT AS TO
HOW AND WHERE COPIES OF THE FULL TEXT THEREOF MAY BE
OBTAINED. 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.”

SEC. 3. Article 148 of Republic Act No. 7394 is hereby amended to read as follows:

“Art. 148. The National Consumer Affairs Council. To improve the
management, coordination and effectiveness of consumer programs, a
National Consumer Affairs council is hereby created, hereinafter referred to as
the “Council” WHICH SHALL BE DIRECTLY UNDER THE OFFICE OF THE
PRESIDENT.”

SEC. 4. Article 149 of republic Act No. 7394 is hereby amended, by adding letters E
and F, and changing letters (e) to (G) and (f) to (H), to read as follows:

1


“Art. 149. 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:

(c) Department of Health;

(4) Department of Agriculture;

(E)DEPARTMENT OF THE INTERIOR AND LOCAL
GOVERNMENT;

(F) PHILIPPINE INFORMATION AGENCY,

(G)[e] four (4) representatives from consumer organizations of
nationwide base to be chosen by the president among the nominees
submitted by various consumer groups in the Philippines;

(H) [f] Two (2) representatives from the business industry/sector to be
chosen by the president from among the nominees submitted by
various business organizations.

PROVIDED THAT IN AGENCIES DIRECTLY IMPLEMENTING THE
ACT, NO GOVERNMENT OFFICIAL LOWER THAN THE RANK OF AN
ASSISTANT SECRETARY SHALL SIT IN THE COUNCIL.”

SEC. 5. Article 152 of the Republic Act No. 7394 is hereby amended to read as follows:

“Art. 152. the Executive Director- the Council shall appoint an Executive
Director who shall assist the Chairman and act as secretary of the Council. THE
EXECUTIVE DIRECTOR SHALL BE ASSISTED BY SUCH NUMBER OF
PERSONNEL AS HE MAY DEEM NECESSARY FOR THE EFFECTIVE
PERFORMANCE OF HIS/HER FUNCTIONS.”

SEC. 6. Article 153 of Republic Act No. 7392 is hereby amended to read as follows:

“Art. 152. Powers and Functions- the Council shall have the following
powers and functions:

Xo poo bosg

(d) to undertake @ continuing education and information campaign to
provide the consumer with among
others:
(1) facts about consumer products and services;
(2) consumer rights and the mechanism for redress available to
him;
(3) information on new concepts and development on consumer
protection;
(4) general knowledge and awareness necessary for a critical
and better judgment on consumption; and,
(6) such other matters of importance to the consumer's general
well-being.

(F) TO APPROVE FOR SUBMISSION TO THE DEPARTMENT OF
BUDGET AND MANAGEMENT THE ANNUAL BUDGET OF
THE COUNCIL;

(G) TO PROMULGATE SUCH RULES AND REGULATIONS AS
MAY BE ESSENTIAL AND NECESSARY TO ATTAIN THE
OBJECTIVES AND PURPOSE OF THIS ACT;

(H) TO CREATE ADDITIONAL POSITIONS, BOTH IN THE
CENTRAL AND REGIONAL OFFICES, INCLUDING, BUT NOT
LIMITED TO HIRING OF CONSULTANTS, AS MAY BE
NECESSARY TO CARRY OUT EFFECTIVELY AND
EFFICIENTLY ITS FUNCTIONS AND DUTIES;


() | TO RECEIVE AND UTILIZE, FOR FURTHERANCE OF THE
COUNCIL'S ACTIVITIES, FUNDS, GIFTS, DONATIONS AND
BEQUESTS FROM SOURCES OTHER THAN THE
COUNCIL'S BUDGET APPROPRIATIONS. SUCH GIFTS,
DONATIONS OR BEQUESTS SHALL BE EXEMPT FORM
ALL TAXES, DUTIES, DUES, OR FEES WHATSOEVER,
IMPOSED OR HEREAFTER TO BE IMPOSED BY THE
NATIONAL GOVERNMENT, ITs AGENCIES,
INSTRUMENTATILITIES OR POLITICAL SUBDIVISIONS,
AND THE SAME SHALL BE FULLY DEDUCTIBLE FROM THE
GROSS INCOME OF THE DONOR OR GRANT FOR INCOME
TAX PURPOSES;

(J) TO PROVIDE FREE LEGAL REPRESENTATION, SUBJECT
TO GUIDELINES THE COUNCIL MAY APPROVE, TO
CONSUMERS WITH MERITORIOUS COMPLAINTS; AND,

(K) | GENERALLY, TO UNDERTAKE SUCH OTHER FUNCTIONS.
AND DUTIES AS MAY BE NECESSARY TO CARRY OOUR
THE OBJECTIVES AND PURPOSE OF THIS ACT.

SEC. 7. Separability Clause. Any portions or provisions of this Act that may be
declared unconstitutional or invalid shall not have the effect of nullifying other portions and
provisions hereof as long as such remaining portion or provisions can stil subsist and shall be
given effect in their entirety.

SEC. 8. Repealing Clause. All laws, presidential decrees, executive orders,
proclamations, and administrative regulations or parts thereof inconsistent with the provisions of
this Act are hereby repealed, amended, or modified accordingly.

SEC. 9. Effectivity Clause. This Act shall take effect fifteen (15) days after its complete
publication in the Official Gazette or in at least two (2) newspapers of general circulation,
whichever comes first.

Approved,