FOURTEENTH CONGRESS OF THE REPUBLIC) 
Second Regular Session 
OF THE PHILIPPINES 
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Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
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 reduced trust in the 
manufacturer. ' 
Product recall in developed counhies, 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 sa€ety of products 
being sold in the market. Thus, many substandard and poteritially dangerous products 
proliferate and consumer complaints about them simply fall between the cracks. 
According to some news reports, China has recently pulled all dairy products 
more than a month old from shops across the country in one of the biggest steps taken by 
authorities to end a deadly scandal over contaminated milk. 
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, 
~ 
~ 
' http://en.wikipedia.ordwiki/Product 
recall. 
'Justice Edgardo P. CNZ. 
litto:/lca.suorecourt.~ov.oWindex.ul~~?ac=innactuai 
contents&ap=i7080. 
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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 make it unlawful to sell a recalled product. 
littp://newsinfo.inauirer.netibveaki1i~news/world/view/2OO8 
1016- 166653iChina-broadens-dah- 
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product-recall. 
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FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
R 
"DV 
I iJ /-)/j 
Second Regular Session 
) 
Introduced by Senator Miriam Defensor Santiago 
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AN ACT 
TO AMEND REPUBLIC ACT NO. 7394 ALSO KNOWN AS THE CONSUMER ACT 
OF THE PHILIPPINES TO MAKE IT UNLAWFUL TO SELL 
A RECALLED PRODUCT 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Article 18 of Republic Act No. 7394 also known as "The Consumer 
Act of 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: 
(a) manufacture for sale, offer for sale, distribute in commerce, or import 
into the Philippines any consumer product which is not in conformity with an 
applicable consumer product quality or safety standard promulgated in this Act; 
(b) manufacture for sale, offer for sale, distribute in commerce, or import 
into the Philippines any consumer product which has been declared as banned 
consumer product by a rule in this Act; 
(c) refuse access to or copying of pertinent records or fail or refuse to 
permit entry of or inspection by authorized officers or employees of the 
department; 
(d) fail to comply with an order issued under Article I1 relating to 
notifications of substantial product hazards and to recall, repair, replacement or 
refund of unsafe products; 
(e) fail to comply with the rule prohibiting stockpiling. 
(F) SELL A, PRODUCT THAT IS SUBJECT TO VOLUNTARY 
CORRECTIVE ACTION TAKEN BY 
THE MANUFACTURER, IN 
. .  
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CONSULTATION WITH THE DEPARTMENT, AND DETERMINED BY THE 
DEPARTMENT TO BE UNSAFE; OR DESIGNATED A BANNED 
HAZARDOUS SUBSTANCE. 
THE MANUFACTURER OF A CONSUMER PRODUCT, WITHOUT 
REGARD TO WHETHER IT IS SUBJECT TO A CONSUMER PRODUCT 
QUALITY OR SAFETY STANDARD, SHALL PLACE DISTINGUISHING 
MARKS ON THE PRODUCT TO THE GREATEST EXTENT FEASIBLE, 
AND ON ITS PACKAGING, THAT WILL ENABLE THE ULTIMATE 
PURCHASER TO DETERMINE THE SOURCE, DATE, AND COHORT 
(INCLUDING THE BATCH, RUN NUMBER, OR OTHER IDENTIFYING 
CHARACTERISTIC) 
OF 
PRODUCTION 
OF 
THE 
PRODUCT BY 
REFERENCE TO THOSE MARKS. 
SECTION 3. Separability Clause. - If any provision or part hereof, is held invalid 
or unconstitutional, the remainder of the Act or the provision not otherwise affected shall 
remain valid and subsisting. 
SECTION 4. Repealing Cluuse. - Any law, presidential decree or issuance, 
executive order, letter of instruction, administrative order, rule or regulation contrary to, 
or inconsistent with the provisions of this Act is hereby repealed, modified or amended 
accordingly. 
. .  
SECTION 5. Effectivity Clause. - This Act shall take effect fifteen (15) days 
after its publicatioll in at least two (2) newspapers of general circulation, 
Approved, 
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