FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENf~7 
S.No. ___ _ 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
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A product recall is a request to return to the maker a batch or an entire production run of 
a product, usually due to the discovery of safety issues. The recall is an effort to limit liability for 
corporate negligence (which can cause costly legal penalties) and to improve or avoid damage to 
publicity. Recalls are costly to a company because they often entail replacing the recalled 
product or paying for damages caused in use, albeit possibly less costly than indirect cost 
following damages to brand name and re(luced trust in the manufacturer.! 
Product recall in developed countries, like the United States, is a common occurrence. 
But in the Philippines, it comes very few and far between. The reason is not that the products 
sold here are compliant with quality and safety standards. Rather, we have yet to develop an 
effective system for monitoring the quality and safety of products being sold in the market. Thus, 
many substandard and potentially dangerous products proliferate and consumer complaints about 
them simply fall between the cracks. 2 
According to some news reports, China has recently pulled all dairy products more than a 
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month old from shops across the country in one of the biggest steps taken by authorities to end a 
deadly scandal Over contaminated mille 
China had said earlier that the' products of at least 22 milk companies, or nearly 12 
percent of products tested, had been found to contain melamine. 
1 http://en.wikipedia.org/wiki/Product recall. 
2 Justice Edgardo P. Cruz. 
http://ea.suprecourt . gOY .ph/i ndex.php ?ac~nmactual conteJ1ts&ap~j7080. 
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Countries around the world have issued recalls and bans of Chinese-made dairy products 
after high melamine levels were detected in exported goods. 3 
Republic Act No. 7394, otherwise known as "The Consumer Act of the Philippines," 
only prohibits the failure to comply with an order issued by the Department of Health to recall, 
repair, replacement or refund of unsafe products. Thus, this bill seeks to amend the law to malce 
it unlawful to sell a recalled product. 4 
~~ 4, ~.v<~ ~Yvf:~ 
rCIK .MIRIAM DE~NSOR EtANTIfGO 
3 
http://newsinfo jngu irer.netlbreakingnews/world/viewI2008l 0 l6·l66653/China-broadens-dairy-prodllct-
recall. 
4 This bill was originally filed in the Fourteenth Congress, Second Regular Session 
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FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENAT.f: 
S. No. lb27 
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AN ACT 
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TO AMEND REPUBLIC ACT NO. 7394 ALSO KNOWN AS THE CONSUMER ACT OF 
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THE PHILIPPINES TO MAKE IT UNLAWFUL TO SELL A RECALLED PRODUCT 
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Be it enacted by the Senate and the House of Representatives of the Philippines in 
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Congress assembled: 
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SECTION 1. Article 18 of Republic Act No. 7394 also known as "The Consumer Act of 
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the Philippines" is hereby amended to read as follows: 
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Art. 18. Prohibited Acts. - It shall be unlawful for any person to: 
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(a) manufacture for sale, offer for sale, distribute in commerce, or import into the 
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Philippines any consumer product which is not in conformity with an applicable 
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consumer product quality or safety standard promulgated in this Act; 
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(b) manufacture for sale, offer for sale, distribute in commerce, or import into the 
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Philippines any consumer product which has been declared as bauned consumer prodUct 
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by a rule in this Act; 
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(c) refuse access to or copying of pertinent records or fail or refuse to permit entry 
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of or inspection by authorized officers 
or employees of the 
department; 
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(d) fail to comply with an order issued under Article II relating to notifications of 
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substantial product hazards and to recall, repair, replacement or refund of unsafe 
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products; 
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(e) fail to comply with the rule prohibiting stockpiling. 
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(F) SELL A PRODUCT THAT IS SUBJECT TO VOLUNTARY CORRECTNE 
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ACTION TAKEN BY THE MANUFACTURER, IN CONSULTATION WITH THE 
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DEPARTMENT, AND DETERMINED BY THE DEPARTMENT TO BE UNSAFE; 
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OR DESIGNATED A BANNED HAZARDOUS SUBSTANCE. 
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THE MANUFACTURER OF A CONSUMER PRODUCT, WITHOUT 
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REGARD TO WHETHER IT IS SUBJECT TO A CONSUMER PRODUCT QUALITY 
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OR SAFETY STANDARD, SHALL PLACE DISTINGUISHING MARKS ON THE 
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PRODUCT TO THE GREATEST EXTENT FEASIBLE, AND ON ITS PACKAGING, 
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THAT WILL ENABLE THE ULTIMATE PURCHASER TO DETERMINE THE 
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SOURCE, DATE, AND COHORT (INCLUDING THE BATCH, RUN NUMBER, OR 
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OTHER IDENTIFYING CHARACTERISTIC) OF PRODUCTION OF THE PRODUCT 
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BY REFERENCE TO THOSE MARKS. 
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SECTION 2. Separability Clause. - If any provision or part hereof, is held invalid or 
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unconstitutional, the remainder of the Act or the provision not otherwise affected shall remain 
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valid and SUbsisting. 
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SECTION 3. Repealing Clause. - Any law, presidential decree or issuance, executive 
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order, letter of instmction, administrative order, mle or regulation contrary to, or inconsistent 
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with the provisions of this Act is hereby repealed, modified or amended accordingly. 
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SECTION 4. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
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publication in at least two (2) newspapers of general circulation. 
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Approved, 
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