CONSUMER’S WELFARE AND

PROTECTION
• LAWS THAT PROTECT THE CONSUMER’S WELFARE
•8 BASIC CONSUMER RIGHTS
WHAT'S THE LAW IN THE PHILIPPINES
THAT PROTECTS YOU AS A CONSUMER?

The law that safeguards and

protects the consumers in the
Philippines is the Republic Act
7394 (R.A. 7394).
WHAT IS REPUBLIC ACT
7394?
It is the "Consumer Act of the
Philippines" which was promulgated
on July 15, 1992. It is the policy of the
State to protect the interest of the
consumer, promote his general welfare
and to establish standards of conduct
for business and industry.
WHAT ARE THE OBJECTIVES OF THE RA 7394 OR
OTHERWISE KNOWN AS "CONSUMER ACT OF THE
PHILIPPINES?
 Protection of consumers against hazards to health and
safety;
 Protection of consumers against deceptive, unfair and
unconscionable sales acts and practices; ("unconscionable"
means not right, not reasonable or not guided by conscience)
 Provision of information and education to facilitate sound
choice and the proper exercise of rights by the consumer;
 Provision of adequate rights and means of redress ("redress"
means remedy or to set right <an undesirable or unfair
situation>);
 Involvement of consumer representative in the formulation of
social and economic policies.
WHAT GOVERNMENT AGENCIES IN THE
PHILIPPINES IMPLEMENT THE "CONSUMER ACT
OF THE PHILIPPINE" AND WHAT ARE THEIR AREAS
OF CONCERN?

The following agencies implement the Consumer

Act:
 Department of Trade and Industry (DTI)

 Department of Agriculture (DA)

 Department of Education (DepEd)

 Department of Health (DOH)

 Bangko Sentral ng Pilipinas (BSP)

 Securities and Exchange Commission (SEC)

DTI HANDLES THE FOLLOWING AREAS OF
CONCERN:
 Consumer Products and Service Warranties
 Consumer Product Quality and Safety

 Deceptive, unfair and unconscionable sales

acts and practices
 Price Tag

 Weights and measures (metrication)

 Labeling and Packaging

 Advertising and sales promotion

 Liability for Products and Services

 Service and repair shops

DTI HANDLES THE FOLLOWING AREAS OF
CONCERN:
 Consumer Products and Service Warranties
 Consumer Product Quality and Safety

 Deceptive, unfair and unconscionable sales

acts and practices
 Price Tag

 Weights and measures (metrication)

 Labeling and Packaging

 Advertising and sales promotion

 Liability for Products and Services

 Service and repair shops

DEPARTMENT OF AGRICULTURE (DA)

 AgriculturalProducts
Quality and Safety
Labelling and Packaging
DEPARTMENT OF EDUCATION (DEPED)
Consumer education and information
Department of Health (DOH)
Consumer credit transactions extended by
banks and other financialintermediaries

Securities and Exchange Commission

(SEC)
Credit facilities extended to consumersby
financing companies
WHEN IS THE CONSUMER ACT
APPLICABLE?
The Act is applicable if:
the COMPLAINANT is a natural
person;
the SUBJECT of the violation is a
consumer product or service; and
the NATURE of the complaint is
regarding any of the
aforementioned concern
WHAT IS CONSUMER PRODUCT
OR SERVICE?

Consumer product or service means

goods, service and credits, debts or
obligations which are primarily for
personal, family, household or
agricultural purpose, which shall
include, but not limited to food, drugs,
cosmetics and devices.
 WHAT SHOULD A CONSUMER DO IF HE/SHE
HAS A COMPLAINT?
 Identify the problem. Create a fair settlement. Would any of the following options do:
money back (Refund)?
product repair (Repair)?
exchange or change item (Replace)?
 Gather documentation as much as you can regarding your complaint. Examples of documents
you can gather are sales receipts, warranties, repair orders, contract/agreement, cancelled
checks, or any document which will support the complaint. These documents will serve as yuor
evidence or proof.
 Go back to the store or office where you made the purchase. Talk to the person who sold you
the product or service. Be calm and accurate in telling the problem and what steps should be
taken in order to solve the problem. If that person irritates you and doesn't help, talk to the
supervisor or manager and tell your complaint. A huge percentage of consumer problems are
resolved at this level.
 If you are not satisfied with the support, write a formal letter of complaint to the concerned
government consumer protection agencies in the Philippines mentioned above.
In the letter, indicate your name and address; the name and address of the establishment
against whom you are complaining; the circumstances regarding the complaint including
names, places and dates etc.. Enclose supporting documents such as official receipts,
deed of sale and the like. And be prepared to make a personal appearance when called,
especially during the mediation conference.
HOW LONG CAN A CONSUMER FILE A
COMPLAINT?

Within 2 years starting from the

time the consumer transaction
happened (when the deceptive or
unfair transaction took place).
TO WHOM DOES A CONSUMER FILE A
COMPLAINT?
In the Provincial Office. The administrative
complaint shall be filed in duplicate with the
Provincial Office having jurisdiction over the subject
of the complaint. In areas where there are no
Provincial Offices, the complaint shall be filed in the
Regional Office.

In cases where the complainant and respondent

are situated in different provinces, the complainant
has the option to choose the place where to file the
complaint. The civil/criminal action shall be filed
with the appropriate regular courts (Municipal Trial
Court/Regional Trial Court).
 WHAT ARE THE REMEDIES AVAILABLE
TO CONSUMERS?

 For Administrative Proceedings:

• replacement or repair of product or services
• reimbursement to complainant of amount spent in pursuing the complaint
• refund of payment made
• restitution or rescission of contract
 For civil/criminal action
• civil action
• refund of payment made
• award of damages
• restitution or rescission of contract
• replacement or repair of product or services
• reimbursement to complainant of amount spent in pursuing the complaint
• criminal action - defendant, if found guilty by the court can be sentenced to impris n
payment of fine or both, at the discretion of the court. o
 HOW ARE CONSUMER COMPLAINTS
RESOLVED?
Complaints are resolved through:
 The implementing agency where the complaint is filed, after jurisdiction is determined,
will call the parties for mediation conference and find ways for amicable settlement.
 If no amicable settlement is arrived at, the complaint will be scheduled for preliminary
conference for the parties to enter into stipulation of facts or arrive at simplification of
issues.
 Formal hearing will be conducted by the Arbitration Officer and decision will be rendered.
 Decision of the Arbitration Officer is appealable to the Secretary of the concerned
Department within 15 days from receipt of the decision.
 Decision of the Department Secretary is appealable within 15 days from receipt of the
decision to the Intermediate Appellate Court or the Supreme Court on the following
grounds:
 There is grave abuse of discretion.
 The decision rendered was in excess of jurisdiction or authority of the Arbitration Officer
 The decision is not supported by evidence or there is serious error in findings of facts.
WHAT ADMINISTRATIVE PENALTIES CAN BE IMPOSED UPON
ESTABLISHMENTS FOUND TO HAVE VIOLATED ANY OF THE LAWS
COVERED BY THE CONSUMER ACT?

Administrative penalties that can be imposed are:

 The issuance of a cease and desist order, provided, however, that such order
shall specify the acts that respondent shall cease and desist from and shall
require him to submit a report of compliance therewith within a reasonable
time;
 The acceptance of a voluntary assurance of compliance or discontinuance
from the respondent which may include any or all of the following terms and
conditions:
 an assurance to comply with the provisions of this Act and its implementing
rules and regulations;
 an assurance to refrain from engaging in unlawful acts and practices or
unethical trade practices subject of the formal investigation;
 an assurance to comply with the terms and conditions specified in the
consumer transaction subject of the complaint;
WHAT ADMINISTRATIVE PENALTIES CAN BE IMPOSED UPON
ESTABLISHMENTS FOUND TO HAVE VIOLATED ANY OF THE LAWS
COVERED BY THE CONSUMER ACT?

Administrative penalties that can be imposed are:

 an assurance to recall, replace, repair or refund the money value of defective
products distributed in commerce;
 an assurance to reimburse the complaint out of any money or property in connection
with the complaint, if any, and to file a bond to guarantee compliance therewith.
 Restitution or rescission of the contract without damages;
 Condemnation and seizure of the consumer product found to be hazardous to health
and safety, unless the respondent files a bond to answer for any damages or injury
that may arise from the continued use of the product;
 The impositon of administrative fines in such amount as deemed reasonable by the
Secretary, which shall in no case be less than Five Hundred Pesos (P500.00) nor
more than Three Hundred Thousand Pesos (P300,000.00) depending on the gravity
of the offense, and an additional fine of not more than One Thousand Pesos
(P1,000.00) for each day of continuing violation.
8 BASIC RIGHTS OF A CONSUMER

1. Right to Basic Needs, which

guarantees survival, adequate food,
clothing, shelter, health care,
education and sanitation. With this
right, consumers can look forward to
the availability of basic and prime
commodities at affordable prices and
good quality.
8 BASIC RIGHTS OF A CONSUMER

2.Right to Safety—the consumer should

be protected against the marketing of
goods or the provision of services that
are hazardous to health and life.
3.Right to Information—the consumer
should be protected against dishonest or
misleading advertising or labeling and
has the right to be given the facts and
information needed to make an informed
choice.
8 BASIC RIGHTS OF A CONSUMER
4.Right to Choose—the consumer has the
right to choose from among various
products at competitive prices with an
assurance of satisfactory quality.
5.Right to Representation—the right to
express consumer interests in the making
and execution of government policies.
6.Right to Redress— the right to be
compensated for misrepresentation,
shoddy goods or unsatisfactory services.
8 BASIC RIGHTS OF A CONSUMER
7.Right to Consumer Education, which is
the right to acquire knowledge and skills
necessary to be an informed customer.
8.Right to a Healthy Environment—the
right to live and work in an environment
which is neither threatening nor
dangerous and which permits a life of
dignity and well-being.