CONSUMER ACT #7394

AND PRICE ACT #7581

DELA CRUZ, MARC CYRILL

PORTES, JONATHAN

OBUSAN, RICARDO FRANCO GABRIEL

R.A #7394 OF APRIL 13,1992
THE CONSUMER ACT OF THE PHILIPPINES

GENERAL PROVISIONS:
This Act shall be known as the "Consumer Act of the
Philippines."
Declaration of Basic 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.
R.A #7394 OF APRIL 13,1992
THE CONSUMER ACT OF THE PHILIPPINES

Towards this end, the State shall implement measures to

achieve the following objectives:
a) protection against hazards to health and safety;
b) protection against deceptive, unfair and
unconscionable sales acts and practices;
R.A #7394 OF APRIL 13,1992
THE CONSUMER ACT OF THE PHILIPPINES

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.
R.A #7394 OF APRIL 13,1992
THE CONSUMER ACT OF THE PHILIPPINES

Construction. The best interest of the

consumer shall be considered in the
interpretation and implementation of the
provisions of this Act, including its implementing
rules and regulations.
R.A #7394 OF APRIL 13,1992
THE CONSUMER ACT OF THE PHILIPPINES
For purposes of this Act, the term:
"Advertisement" means the prepared and through any form of mass
medium, subsequently applied, disseminated or circulated advertising
matter.
"Advertising" means the business of conceptualizing, presenting or
making available to the public, through any form of mass media, fact,
data or information about the attributes, features, quality or
availability of consumer products, services or credit.
R.A #7394 OF APRIL 13,1992
THE CONSUMER ACT OF THE PHILIPPINES
"Advertising agency or Agent" means a service organization or enterprise
creating, conducting, producing, implementing or giving counsel on
promotional campaigns or programs through any medium for and in behalf
of any advertiser.
"Advertiser" means the client of the advertising agency or the sponsor of
the advertisement on whose account the advertising is prepared,
conceptualized, presented or disseminated.
R.A #7394 OF APRIL 13,1992
THE CONSUMER ACT OF THE PHILIPPINES

"Agricultural purpose" means a purpose related to the

production, harvest, processing, manufacture,
distribution, storage, transportation, marketing,
exhibition or disposition of agricultural, fishery or
marine products.
 R.A #7394 OF APRIL 13,1992
THE CONSUMER ACT OF THE PHILIPPINES
"Banned hazardous substance" means (1) any toy or other articles
intended for use by children, which are hazardous per se, or which
bear or contain substances harmful to human beings; or (2) any
hazardous substance intended or packaged in a form suitable for
use in the household.
"Batch" means a quantity of any drug or device produced during a
given cycle of manufacture.
R.A #7394 OF APRIL 13,1992
THE CONSUMER ACT OF THE PHILIPPINES

"Business name, firm name, or style" means any name or

designation other than the true name of a person, partnership,
corporation or association which is used or signed in
connection with his/its business or in:
R.A #7394 OF APRIL 13,1992
THE CONSUMER ACT OF THE PHILIPPINES
1) any written or printed receipt, including receipt for tax or business;
2) any written or printed contract not verified by a notary public;
3) any written or printed evidence of any agreement or business
transaction; and
4) any sign or billboard kept conspicuously exhibited in plain view in
or at the place of the business, announcing a firm name or business
name or style.
 R.A #7394 OF APRIL 13,1992
THE CONSUMER ACT OF THE PHILIPPINES
"Closing out sale" means a consumer sale wherein the seller uses the
announcement to create the impression that he is willing to give large
discounts or merchandise in order to reduce, dispose or close out his
inventory and business.
"Commerce" means the sale, lease, exchange, traffic or distribution of goods,
commodities, productions, services or property, tangible or intangible.
 R.A #7394 OF APRIL 13,1992
THE CONSUMER ACT OF THE PHILIPPINES

"Consumer" means a natural person who is a purchaser, lessee, recipient or

prospective purchaser, lessor or recipient of consumer products, services
or credit.
"Consumer credit" means any credit extended by a creditor to a consumer
for the sale or lease of any consumer product or service under which part
or all of the price or payment therefor is payable at some future time,
whether in full or in installments.
R.A #7394 OF APRIL 13,1992
THE CONSUMER ACT OF THE PHILIPPINES

"Consumer loan" means a loan made by the lender to a person

which is payable in installments for which a finance charge is or
may be imposed. This term includes credit transactions
pursuant to an open-end-credit plan other than a seller credit
card.
R.A #7394 OF APRIL 13,1992
THE CONSUMER ACT OF THE PHILIPPINES

"Counterfeit product" means any consumer product which, or the

container or labeling of which, without authorization, bears the
trademark, trade name, or other identifying mark, imprint, or
device, or any likeness thereof, of a consumer product
manufacturer, processor, packer, distributor.
 R.A #7394 OF APRIL 13,1992
THE CONSUMER ACT OF THE PHILIPPINES

"Distributor" means any person to whom a consumer product is

delivered or sold for purposes of distribution in commerce, except
that such term does not include a manufacturer or retailer of such
product.
"Home solicitation sale" means consumer sales or leases which are
personally solicited by any person or organization by telephone,
person-to-person contact or by written or printed communication.
R.A #7394 OF APRIL 13,1992
THE CONSUMER ACT OF THE PHILIPPINES

"Person" means any individual, partnership, corporation or

association, trust, government or governmental subdivision or
any other legal entity.
"Poisonous substance" means any substance capable of destroying
life or seriously endangering health when applied externally to
the body or introduced internally in moderate doses.
R.A #7394 OF APRIL 13,1992
THE CONSUMER ACT OF THE PHILIPPINES
"Price comparison" means the direct comparison in any advertisement of a
seller's current price for consumer products or services with any other
price or statement of value for such property or services expressed in
pesos, centavos, fractions or percentages.
"Price tag" means any device, written, printed, affixed or attached to a
consumer product or displayed in a consumer repair or service
establishment for the purpose of indicating the retail price per unit or
service.
R.A #7394 OF APRIL 13,1992
THE CONSUMER ACT OF THE PHILIPPINES

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;
b) the Department of Agriculture with respect to products related to
agriculture, and;
c) the Department of Trade and Industry with respect to other consumer
products not specified above.
R.A #7581 OF JULY 22,1991
THE PRICE ACT OF THE PHILIPPINES

This Act shall be referred to as the Price Act

Declaration of Basic Policy. - It is the policy of the State to ensure the
availability of basic necessities and price commodities at reasonable prices
at all times without denying legitimate business a fair return on
investment. It is also a declared of the State to provide effective and
sufficient protection to consumers against hoarding, profiteering and
cartels with respect to the supply, distribution, marketing and pricing of
said goods, especially during periods of calamity, emergency, widespread
illegal price manipulation and other similar situations.
R.A #7581 OF JULY 22,1991
THE PRICE ACT OF THE PHILIPPINES

The these ends, the State shall:

(1) Develop, adopt and promulgate measures to promote
productivity in basic necessities and prime commodities;
(2) Develop an improved and efficient transport and
distribution system;
R.A #7581 OF JULY 22,1991
THE PRICE ACT OF THE PHILIPPINES

(3) Develop, adopt and promulgate measures to stabilize prices

at reasonable levels;
(4) Institute appropriate penalties for illegal price manipulation
and other violations of this Act and
(5) Establish a mechanism that will readily protect consumers
from inadequate supply and unreasonable price increases on
occasions of calamities, emergencies and like occurrences.
R.A #7581 OF JULY 22,1991
THE PRICE ACT OF THE PHILIPPINES

For purposes of this Act, the term:

Basic necessities includes: rice; corn; bread; fresh dried and
canned fish and other marine products; fresh pork, beef, and
poultry meat; fresh eggs; fresh and processed milk; fresh
vegetables; root crops; coffee; sugar; cooking oil; salt; laundry
soap; detergents; firewood; charcoal; candles; and drugs classified
as essential by the Department of Health;
R.A #7581 OF JULY 22,1991
THE PRICE ACT OF THE PHILIPPINES

Buffer Fund means a contingent fund in the budget of the

implementing agency which shall not be used in its normal or
regular operations but only for purposes provided for in this
Act;
R.A #7581 OF JULY 22,1991
THE PRICE ACT OF THE PHILIPPINES
Implementing agency means the department, agency or office of
the Government which has jurisdiction over a basic necessity or
prime commodity as defined in this Act, which shall be;
(a) The Department of Agriculture, with reference to agricultural
crops, fish and other marine products, fresh meat, fresh poultry
and dairy products, fertilizers and other farm inputs.
R.A #7581 OF JULY 22,1991
THE PRICE ACT OF THE PHILIPPINES

(b) The Department of Health, with reference to drugs;

(c) The Department of Environment and Natural Resources, with
reference to wood and other forest products; and
(d) The Department of Trade and Industry, with reference to all
other basic necessities and prime commodities.
R.A #7581 OF JULY 22,1991
THE PRICE ACT OF THE PHILIPPINES

Panic buying is the abnormal phenomenon where consumers

buy basic necessities and prime commodities grossly in excess of
their normal requirement resulting in undue shortage of such
goods to the prejudice of less privileged consumers;
Person means a natural person or a juridical person;
R.A #7581 OF JULY 22,1991
THE PRICE ACT OF THE PHILIPPINES

Prevailing price means the average price at which any basic

necessity has been sold in a given area within a month from the
occurrence of any of the conditions enumerated under Section 6
of this Act;
Price ceiling means the maximum price at which any basic
necessity or prime commodity may be sold to the general public;
and
R.A #7581 OF JULY 22,1991
THE PRICE ACT OF THE PHILIPPINES

Prime commodities include fresh fruits; flour; dried;

processed and canned pork; beef and poultry meat; dairy
products not falling under basic necessities; noodles;
onions; garlic; vinegar; patis; soy sauce; toilet soap;
fertilizer; pesticides; herbicides; poultry;
R.A #7581 OF JULY 22,1991
THE PRICE ACT OF THE PHILIPPINES

swine and cattle feeds; veterinary products for poultry; swine and
cattle; paper; school supplies; nipa shingles; sawali; cement clinker;
GI sheets; hollow blocks; plywood; plyboard; construction nails;
batteries; electrical supplies; light bulbs; steel wire; and all drugs
not classified as essential drugs by the Department of Health.
R.A #7581 OF JULY 22,1991
THE PRICE ACT OF THE PHILIPPINES

Exclusion from the Coverage of this Act. - Upon petition of

the concerned parties and after public hearing, the
implementing agency, with the approval of the
President, may exclude from the coverage of this Act,
types or brands of the goods included in the definition
of basic necessities and prime commodities,
R.A #7581 OF JULY 22,1991
THE PRICE ACT OF THE PHILIPPINES

which may be deemed as non-essential goods or luxury

goods: Provided, that, any type or brand so excluded may
be reinstated by the implemented agency during
occasions of acute shortage in the supply of the basic
necessity or prime commodity to which the excluded
type or brand used to belong.
 R.A #7581 OF JULY 22,1991
THE PRICE ACT OF THE PHILIPPINES

Automatic Price Control. - Unless otherwise declared by the

President, prices of basic necessities in an area shall
automatically be frozen at their prevailing prices or placed
under automatic price control whenever:
(1) That area is proclaimed or declared a disaster area or under a
state of calamity;
(2) That area is declared under an emergency;
R.A #7581 OF JULY 22,1991
THE PRICE ACT OF THE PHILIPPINES

(3) The privilege of the writ of habeas corpus is suspended in

that area;
(4) That area is placed under martial law;
(5) That area is declared to be in a state of rebellion; or
(6) A state of war is declared in that area.
THANK YOU