Republic Act No.

7394 April 13, 1992 b) "Advertising" means the business of conceptualizing, presenting
or making available to the public, through any form of mass media,
THE CONSUMER ACT OF THE PHILIPPINES fact, data or information about the attributes, features, quality or
Be it enacted by the Senate and House of Representatives of the availability of consumer products, services or credit.
Philippines in Congress assembled: c) "Advertising agency or Agent" means a service organization or
TITLE I. – GENERAL PROVISIONS enterprise creating, conducting, producing, implementing or giving
counsel on promotional campaigns or programs through any
Article 1. Short Title. – This Act shall be known as the "Consumer medium for and in behalf of any advertiser.
Act of the Philippines."
d) "Advertiser" means the client of the advertising agency or the
Article 2. Declaration of Basic Policy. – It is the policy of the sponsor of the advertisement on whose account the advertising is
State to protect the interests of the consumer, promote his general prepared, conceptualized, presented or disseminated.
welfare and to establish standards of conduct for business and
industry. Towards this end, the State shall implement measures to e) "Agricultural purpose" means a purpose related to the
achieve the following objectives: production, harvest, processing, manufacture, distribution, storage,
transportation, marketing, exhibition or disposition of agricultural,
a) protection against hazards to health and safety; fishery or marine products.

b) protection against deceptive, unfair and unconscionable sales f) "Amount financed" in a consumer credit sale constitutes the cash
acts and practices; price plus non-finance charges less the amount of any down
payment whether made in cash or in property traded in, or in a
c) provision of information and education to facilitate sound choice consumer loan the amount paid to, receivable by or paid or
and the proper exercise of rights by the consumer; payable to the buyer or to another person in his behalf.
d) provision of adequate rights and means of redress; and g) "Banned hazardous substance" means (1) any toy or other
e) involvement of consumer representatives in the formulation of articles intended for use by children, which are hazardous per se,
social and economic policies. or which bear or contain substances harmful to human beings; or
(2) any hazardous substance intended or packaged in a form
Article 3. Construction. – The best interest of the consumer shall suitable for use in the household, which the implementing agency
be considered in the interpretation and implementation of the by regulation, classifies as "banned hazardous substance"
provisions of this Act, including its implementing rules and notwithstanding the existence of cautionary labels, to safeguard
regulations. public health and safety: Provided, That the implementing agency
may, by regulation, exempt from this Act, articles which by reason
Article 4. Definition of Terms. – For purposes of this Act, the of their functional purpose require the inclusion of the hazardous
term: substance involved and which bear appropriate labels giving
a) "Advertisement" means the prepared and through any form of adequate directions and warnings for their safe use.
mass medium, subsequently applied, disseminated or circulated Procedures for the issuance, amendment or repeal of regulations
advertising matter. pursuant to clause (2) or paragraph (g) of this Article shall be
governed by the rules and regulations promulgated by the also be granted such right to recruit upon condition of making
Department of Health; Provided, That if the Department of Health similar investments: Provided, That the profits of the person
finds that the distribution for household use of the hazardous employing such a plan are derived primarily from the recruitment
substance involved presents an imminent hazards to the public of other persons into the plan rather than from the sale of
health, it may publish in a newspaper of general circulation a consumer products, services and credit: Provided, further, That the
notice of such finding and such substance shall be deemed to be a limitation on the number of participants does not change the
"banned hazardous substance" pending the issuance of regulation nature of the plan.
formally banning such substance.
l) "Closing out sale" means a consumer sale wherein the seller uses
h) "Batch" means a quantity of any drug or device produced during the announcement to create the impression that he is willing to
a given cycle of manufacture. give large discounts or merchandise in order to reduce, dispose or
close out his inventory and business.
i) "Business name, firm name, or style" means any name or
designation other than the true name of a person, partnership, m) "Commerce" means the sale, lease, exchange, traffic or
corporation or association which is used or signed in connection distribution of goods, commodities, productions, services or
with his/its business or in property, tangible or intangible.

1) any written or printed receipt, including receipt for tax or n) "Consumer" means a natural person who is a purchaser, lessee,
business; recipient or prospective purchaser, lessor or recipient of consumer
products, services or credit.
2) any written or printed contract not verified by a notary public;
o) "Consumer credit" means any credit extended by a creditor to a
3) any written or printed evidence of any agreement or business consumer for the sale or lease of any consumer product or service
transaction; and under which part or all of the price or payment therefor is payable
4) any sign or billboard kept conspicuously exhibited in plain view at some future time, whether in full or in installments.
in or at the place of the business, announcing a firm name or p) "Consumer loan" means a loan made by the lender to a person
business name or style. which is payable in installments for which a finance charge is or
j) "Cash price or delivered price", in case of trade transaction, may be imposed. This term includes credit transactions pursuant to
means the amount of money which would constitute full payment an open-end-credit plan other than a seller credit card.
upon delivery of the property (except money) or service purchased q) "Consumer products and services" means goods, services and
at the creditor's place of business. In the case of financial credits, debts or obligations which are primarily for personal,
transactions, cash price represents the amount received by the family, household or agricultural purposes, which shall include but
debtor upon consummation of the credit transaction, net of finance not limited to food, drugs, cosmetics, and devices.
charges collected at the time the credit is extended, if any.
r) "Consumer product safety rule" means a consumer product
k) "Chain distribution plans" or "pyramid sales schemes" means safety standard described in Article 78 or a rule under this Chapter
sales devices whereby a person, upon condition that he makes an declaring a consumer product banned hazardous product.
investment, is granted by the manufacturer of his representative a
right to recruit for profit one or more additional persons who will
s) "Consumer transaction" means (1) (i) a sale, lease, assignment, a sum substantially equivalent to or in excess of the aggregate
award by chance, or other disposition of consumer products, value of the products or real property involved and it is agreed that
including chattels that are intended to be affixed to land, or of the bailee or lessee will become, or for no other or a nominal
services, or of any right, title, or interest therein, except securities consideration has the option to become, the owner of the products
as defined in the Securities Act and contracts of insurance under or real property upon full compliance with the terms of the
the Insurance Code, or (ii) a grant of provision of credit to a agreement.
consumer for purposes that are primarily personal, family,
household or agricultural, or (2) a solicitation or promotion by a y) "Credit transaction" means a transaction between a natural
supplier with respect to a transaction referred to in clause (1). person and a creditor in which real or personal property, services
or money acquired on credit and the person's obligation is payable
t) "Corrosive" means any substance which on contact with living in installment.
tissue will cause destruction of tissue by chemical action.
z) "Creditor" means any person engaged in the business of
u) "Cosmetics" means (1) articles intended to be rubbed, poured, extending credit and shall include any person who as a regular
sprinkled or sprayed on, introduced into or otherwise applied to the business practice makes loans or sells or rents property or services
human body or any part thereof for cleansing, beautifying, on a time, credit or installment basis, either as principal or as
promoting attractiveness, or altering the appearance, and (2) agent who requires as an incident to the extension of credit, the
article intended for use as a component of any such article except payment of a finance charge.
that such term shall not include soap.
aa) "Default or delinquency charge" means, with respect to a
v) "Counterfeit product" means any consumer product which, or consumer credit transaction, the penalty charge payable by the
the container or labeling of which, without authorization, bears the consumer-debtor for failure to pay an amount or installment in full
trademark, trade name, or other identifying mark, imprint, or on the date the same becomes due and demandable, or on or
device, or any likeness thereof, of a consumer product before the period specified for the purpose in the consumer credit
manufacturer, processor, packer, distributor, other than the person sale documents.
or persons who in fact manufactured, processed, packed or
distributed such product and which thereby falsely purports or is ab) "Device" means an instrument, apparatus, implement,
represented to be the product of, or to have been packed or machine, contrivance, implant, in vitro reagent, or other similar or
distributed by such consumer product manufacturer, processor, related article, including any component, part or accessory which is
packer, or distributor. (1) recognized in the official United States Pharmacopoeia-National
Formulary (USP-NF) or any supplement to them, (2) intended for
w) "Credit card" means any card, plate, coupon book or other use in the diagnosis of disease or other condition or in the cure,
credit device existing for the purpose of obtaining money, property, mitigation, treatment or prevention of disease, in man or other
labor or services on credit. animals; or (3) intended to affect the structure or any function of
the body of man or other animals, and which does not achieve any
x) "Credit Sale" means a sale products, services or an interest in of its principal intended purposes through chemical action within or
land to a person on credit where a debt is payable in installments on the body of man or other animals and which is not dependent
or a finance charge is imposed and includes any agreement in the upon being metabolized for the achievement of any of its principal
form of a bailment of products or lease of products or real property intended purposes.
if the bailee or lessee pays or agrees to pay compensation for use
ac) "Distributor" means any person to whom a consumer product is combustibility of solids and of the contents of self-pressurized
delivered or sold for purposes of distribution in commerce, except containers shall be determined through methods found by the
that such term does not include a manufacturer or retailer of such implementing agency to be generally applicable to such materials
product. or containers, respectively, and established by regulations issued
by it.
ad) "Drugs" mean (1) articles recognized in the current official
United States Pharmacopoeia-National Formulary, official ag) "Food" means any substance, whether processed, semi-
Homeopathic Pharmacopoeia of the United States, official National processed or raw, intended for human consumption and includes
Drug Formulary, or any supplement to any of them; and (2) articles chewing gum, drinks and beverages and any substance which has
intended for use in the diagnosis, cure, mitigation, treatment, or been used as an ingredient or a component in the manufacture,
prevention of disease in man or other animals; and (3) articles preparation or treatment of food.
(other than food) intended to affect the structure or any function of
the body of man or animals; and (4) articles intended for use as a ah) "Food additive" means any substance, the intended use of
component of any articles specified in clauses (1), (2), or (3) but do which results or may reasonably be expected to result, directly or
not include devices or their components, parts or accessories. indirectly, in its becoming a component or otherwise affecting the
characteristics of any food (including any substance intended for
The term "drug" when used in this Act shall include herbal and/or use in producing, manufacturing, packing, processing, preparing,
traditional drug. They are defined as articles from indigenous plant treating, packaging, transporting, or holding food; and including
or animal origin used in folk medicine which are: (1) recognized in any source of radiation intended for any such use), if such
the Philippine National Formulary; (2) intended for use in the substance is not generally recognized, among experts qualified as
treatment or cure, mitigation, of disease symptoms, injury or bodily having been adequately shown through scientific procedures to be
defect for use in man; (3) other than food, intended to affect the safe under the conditions of the intended use.
structure of any function of the body of man; (4) put into finishes,
ready to use form by means of formulation, dosage or dosage ai) "Generic name" is the identification of drugs and medicines by
directions; and (5) intended for use as a component of any of the their scientifically and internationally recognized active ingredients
articles specified in clauses (1), (2), (3) and (4) of this paragraph. or by their official generic name as determined by the Bureau of
Food and Drugs of the Department of Health.
ae) "Expiry or expiration date" means the date stated on the label
of food, drug, cosmetic, device or hazardous substance after which aj) "Guarantee" means an expressed or implied assurance of the
they are not expected to retain their claimed safety, efficacy and quality of the consumer products and services offered for sale or
quality or potency and after which it is no longer permissible to sell length of satisfactory use to be expected from a product or other
them. similar specified assurances.

af) "Extremely flammable" means any substance which has a flash ak) "Hazardous substance" means:
point at or below negative six and six-tenths degrees centigrade as (1) (i) Any substance or mixture of substances which is toxic,
determined by the Tagliabue Open Cub Tester; and term corrosive, irritant, a strong sensitizer, flammable or combustible, or
"combustible" shall apply to any substance which has a flash point generates pressure through decomposition, heat or other means, if
of above twenty-six and six-tenths degrees to and including sixty- such substance or mixture or substances any cause substantial
five and five-tenths degrees centigrade as determined by the
Tagliabue Open Cub Tester: Provided, That the flammability or
injury or substantial illness during or as a proximate result of any of ten or more rabbits, when tested in a dosage of two hundred
customary or reasonably foreseeable ingestion by children. milligrams or less per kilogram of body weight, or when
administered through continuous contact with the bare skin for
(ii) Any substance which the department finds to be under the twenty-four hours or less.
categories enumerated in clause (1) (i) of this paragraph;
am) "Home solicitation sale" means consumer sales or leases
(iii) Any radioactive substance, if, with respect to such substance which are personally solicited by any person or organization by
as used in a particular class of article or as packaged, the telephone, person-to-person contact or by written or printed
Department, upon approval of the Department determines by communication other than general advertising or consummated at
regulation that the substance is sufficiently hazardous to require the buyer's residence or a place of business, at the seller's
labeling in accordance with this section in order to protect the transient quarters, or away from a seller's regular place of
public health; business.
(iv) Any toy or other articles intended for use by children which the an) "Immediate container" means the container or package which
director may, by regulation, determine the presence of an is immediately after or near the substance but does not include
electrical, mechanical or thermal hazard. package liners.
(2) This term shall not apply to food, drugs, cosmetics, and devices ao) "Imminently hazardous product" means a consumer product
nor to substances intended for use as fuels when stored in which presents an unreasonable risk of death, serious illness or
containers and used in the heating, cooking or refrigeration system severe personal injury.
of a house, but such term shall apply to any article which is not in
itself a pesticide but which is a hazardous substance, as construed ap) "Irritant" means any substance not corrosive within the
in clause (a) of paragraph (1), by reason of bearing or containing meaning of paragraph (t) of this Article which, on immediate,
such harmful substances described therein. prolonged or repeated contact with normal living tissue will induce
a local inflammatory reaction.
al) "Highly Toxic" means any substance which has any of the
following effects: (1) produces death within fourteen days to one- aq) "Label, labeling" means the display of written, printed or
half or more than one-half of a group of ten or more laboratory graphic matter on any consumer product its immediate container,
white rats each weighing between Two hundred and three hundred tag, literature or other suitable material affixed thereto for the
grams, at a single dose of fifty milligrams or less per kilogram of purpose of giving information as to identify, components,
body weight, when orally administered; or (2) produces death ingredients, attributes, directions for use, specifications and such
within fourteen days to one-half or more of a group of ten or more other information as may be required by law or regulations.
laboratory white rats each weighing between two hundred and
three hundred grams, when inhaled continuously for a period of ar) "Manufacture" means and any and all operations involved in
one hour or less at an atmospheric concentration of two hundred the production, including preparation, propagation, processing,
parts per million by volume or less of gas or vapor or two formulating, filing, packing, repacking, altering, ornamenting,
milligrams per liter by volume or less of mist or dust, provided such finishing or otherwise changing the container, wrapper or labeling
concentration is likely to be encountered by man when the of a consumer product in the furtherance of the distribution of the
substance is used in any reasonably foreseeable manner, or (3) same from the original place of manufacture to the person who
produces death within fourteen days to one-half or more of a group makes the final delivery or sale to the ultimate consumer.
as) "Manufacturer" means any person who manufactures, which is defined as highly toxic; (viii) instructions for handling and
assembles or processes consumer products, except that if the storage of packages which require special care in handling or
goods are manufactured, assembled or processed for another storage; and (ix) the statement "keep out of the reach of children",
person who attaches his own brand name to the consumer or its practical equivalent, if the article is intended for use by
products, the latter shall be deemed the manufacturer. In case of children and is not a banned hazardous substance, with adequate
imported products, the manufacturer's representatives or, in his directions for the protection of children from the hazard involved.
absence, the importer, shall be deemed the manufacturer. The aforementioned signal words, affirmative statements,
description of precautionary measures, necessary instructions or
at) "Mass media" refers to any means or methods used to convey other words or statements may be in the English language or its
advertising messages to the public such as television, radio, equivalent in Filipino; and
magazines, cinema, billboards, posters, streamers, hand bills,
leaflets, mails and the like. (2) on which any statement required under clause (1) of this
paragraph are located prominently and in contrast by typography
au) "Materially defective product" means a product which, because are located prominently and in contrast by typography, layout, with
of the pattern of the defect, the number of defective products other printed matters on the label.
distributed in commerce and the severity of the risk or otherwise,
creates a substantial risk of injury to the public. aw) "New Drugs" mean (1) any drug the composition of which is
such that said drug is not generally recognized among experts
av) "Mislabeled hazardous substance" means any hazardous qualified by scientific training and experience to evaluate the
substance intended, or packaged in a form suitable, for use in safety, efficacy and quality of drugs as safe, efficacious and of
households, especially by children, the packaging or labeling of good quality for use under the conditions prescribed,
which is in violation of the special packaging regulation issued by recommended, or suggested in the labeling thereof; or (2) any drug
the Department of Health under ARTICLE 91 or if such substance the composition of which is such that said drug, as a result of its
fails to bear a label which (1) states conspicuously (i) the name and previous investigations to determine its safety, efficacy and good
the exact address of the manufacturer, packer, distributor, or quality for use under certain conditions, has become so recognized
seller; (ii) the common or usual name of the hazardous substance but which has not, otherwise than in such investigations, been
or of each component which contributes substantially to the used to a material extent or for a material time under new
harmfulness of the substance, unless the Department by regulation conditions.
approved by the Department permits or requires the use of the
recognized generic name; (iii) the signal word "danger" on "New Drugs" shall include drugs (a) containing a newly discovered
substances which are extremely flammable, corrosive, or highly active ingredient; (b) containing a new fixed combination of drugs,
toxic; (iv) the signal word "warning" or "caution" on all other either by molecular or physical combination; (c) intended for new
hazardous substances; (v) a frank statement of the principal indications; (d) an additional new mode of administration; or (e) in
hazard or hazards involved, as "flammable", "vapor harmful", an additional dosage or strength of the dosage form, which meets
"causes burns", "absorbed through skin", or similar wording the conditions as defined under the new drug.
describing the action to be followed or avoided, except when
modified by regulation by the Department pursuant to Section 46; The definition of "new drugs" covers to the extent applicable, "new
(vi) instructions, when necessary or appropriate, for first aid devices".
treatment; (vii) the word "poison" for any hazardous substance
ax) "New Product" means a consumer product which incorporates a bb) "Poisonous substance" means any substance capable of
design, material or form of energy exchange which has not destroying life or seriously endangering health when applied
previously been used substantially in consumer products and as to externally to the body or introduced internally in moderate doses.
which there exists a lack of adequate information to determine the
quality and safety of such product if used by the consumers. bc) "Price comparison" means the direct comparison in any
advertisement of a seller's current price for consumer products or
ay) "Open-end-credit plan" means a consumer credit extended on services with any other price or statement of value for such
an account pursuant to a plan under which: property or services expressed in pesos, centavos, fractions or
percentages.
1) the creditor may permit the person to make purchases or obtain
loans, from time to time, directly from the creditor or indirectly by bd) "Price tag" means any device, written, printed, affixed or
use of credit card, check or other device; attached to a consumer product or displayed in a consumer repair
or service establishment for the purpose of indicating the retail
2) the person has the privilege of paying the balance; or price per unit or service.
3) a finance charge may be computed by the creditor from time to be) "Principal display panel" means that part of the label that is
time on an outstanding unpaid balance. most likely to be displayed, presented, shown or examined under
az) "Package" or "packaging" means any container or wrapping in normal and customary conditions of display for retail or sale.
which any consumer product is enclosed for use in the delivery or bf) "Private labeler" means an owner of a brand or trademark on
display of that consumer product to retail purchasers, but does not the label of consumer product other than a manufacturer of the
include: product.
1) shipping containers or wrappings used solely for the A consumer product bears a private label if (1) the product or its
transportation of any consumer product in bulk or in big quantities container is labeled with a brand or trademark of a person other
by manufacturers, packers, or processors to wholesale retail than its manufacturer; or (2) the brand or trademark of the
distributors thereof; manufacturer of such product does not appear on such label.
2) shipping containers or outer wrappings used by retailers to ship bg) "Radioactive substance" means any substance which emits
or deliver any product to retail costumers if such containers and ionizing radiation.
wrappings bear no printed matter pertaining any particular
product; bh) "Referral selling" means the sales device employed by the
sellers wherein the buyer is induced to acquire goods or services
3) The wrappers or containers of consumer products sold in small by representing that after the acquisition of the goods or services,
quantities by small retail stores to the consumer which by tradition he will receive a rebate, commission or other benefit in return for
are wrapped with ordinary paper. the submission of names of potential customers or otherwise
ba) "Person" means any individual, partnership, corporation or helping the seller enter into other sales, if the receipt of such
association, trust, government or governmental subdivision or any benefit is contingent on an event occurring after the sale is made.
other legal entity.
bi) "Repair and service firm" means any business establishment, bq) "Special packaging" means packaging that is designed or
engaged directly or indirectly, in the repair, service or maintenance constructed to be significantly difficult for children five years of age
of any consumer product. to open or to obtain a toxic or harmful amount of the substance
contained therein within a reasonable time and not difficult for
bk) "Retailer" means a person engaged in the business of selling normal adults to use properly but does not mean packaging which
consumer products directly to consumers. all such children cannot open or obtain a toxic or harmful amount
bl) "Sale or distribution" shall mean an act made by a manufacturer within a reasonable time.
or seller, or their respective representative or agent, to make br) "Standard" means a set of conditions to be fulfilled to ensure
available consumer products, services or credit to the end the quality and safety of a product;
consumers under a consumer sale transaction. It shall not include
sampling or any distribution not for sale. bs) "Strong sensitizer" means any substance which will cause on
normal living tissue, allergy or photodynamic quality of
bm) "Sales Promotion" means techniques intended for broad hypersensitivity which becomes evident on reapplication of the
consumer participation which contain promises of gain such as same substance, to be designated as such by the implementing
prizes, in cash or in kind, as reward for the purchase of a product, agency. Before designating any substance as a strong sensitizer,
security, service or winning in contest, game, tournament and the implementing agency, upon consideration of the frequency of
other similar competitions which involve determination of winner/s occurrence and severity of the reaction, shall find that the
and which utilize mass media or other widespread media of substance has a significant capacity to cause hypersensitivity.
information. It also means techniques purely intended to increase
the sales, patronage and/or goodwill of a product. bt) "Substandard product" means a product which fails to comply
with an applicable consumer product safety rule which creates a
bn) "Seller" means a person engaged in the business of selling substantial risk of injury to the public.
consumer products directly to consumers. It shall include a supplier
or distributor if (1) the seller is a subsidiary or affiliate of the bu) "Supplier" means a person, other than a consumer, who in the
supplier or distributor; (2) the seller interchanges personnel or course of his business, solicits, offers, advertises, or promotes the
maintains common or overlapping officers or directors with the disposition or supply of a consumer product or who other than the
supplier or distributor; or (3) the supplier or distributor provides or consumer, engages in, enforces, or otherwise participates in a
exercises supervision, direction or control over the selling practices consumer transaction, whether or not any privity of contract
of the seller. actually exists between that person and the consumer, and
includes the successor to, or assignee of, any right or obligation on
bo) "Service" shall mean, with respect to repair and service firms, of the supplier.
services supplied in connection with a contact for construction,
maintenance, repair, processing, treatment or cleaning of goods or bv) "Technical personnel of repair and service enterprise" shall
of fixtures on land, or distribution of goods, or transportation of mean a machine or technician or any person who works or renders
goods. diagnosis or advice in connection with repair, service and
maintenance of the consumer products in a repair and service firm.
bp) "Services" means services that are the subject of a consumer
transaction, either together with, or separate from any kind of bw) "Toxic substance" means any substance other than a
personal property, whether tangible or intangible. radioactive substance which can cause injury, illness or death to
man through ingestion, inhalation or absorption through any body
surface.

bx) "Trade name" or "trademark" means a word or words, name,

title, symbol, emblem, sign or device or any combination thereof
used as an advertisement, sign, label, poster or otherwise for the
purpose of enabling the public to distinguish the business of the
person who owns and uses said trade name or trademark.

TITLE II

CHAPTER I
CONSUMER PRODUCT QUALITY AND SAFETY

Article 5. Declaration of Policy. – It shall be the duty of the

State:

a) to develop and provide safety and quality standards for

consumer products, including performance or use-oriented
standards, codes of practice and methods of tests;

b) to assist the consumer in evaluating the quality, including

safety, performance and comparative utility of consumer products;

c) to protect the public against unreasonable risks of injury

associated with consumer products;

d) to undertake research on quality improvement of products and

investigation into causes and prevention of product related deaths,
illness and injuries;

e) to assure the public of the consistency of standardized products.

Article 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, that purpose; and shall likewise consider existing international
devices and substances; standards recognized by the Philippine Government.

b) the Department of Agriculture with respect to products related Article 8. Publication of Consumer Product Standards. – The
to agriculture, and; concerned departments shall, upon promulgation of the above
standards, publish or cause the publication of the same in two (2)
c) the Department of Trade and Industry with respect to other newspapers of general circulation at least once a week for a period
consumer products not specified above. of not less than one (1) month. It may likewise conduct an
Article 7. Promulgation and Adoption of Consumer Product information campaign through other means deemed effective to
Standards. – The concerned department shall establish consumer ensure the proper guidance of consumers, businesses, industries
product quality and safety standards which shall consist of one or and other sectors concerned.
more of the following: Article 9. Effectivity of Rules. – a) Each consumer product
a) requirements to performance, composition, contents, design, standard or safety rule shall specify the date such rule is to take
construction, finish, packaging of a consumer product; effect, which shall not exceed ninety (90) days from the date
promulgated unless the concerned department funds, for good
b) requirements as to kind, class, grade, dimensions, weights, cause shown, that a later effective date is in the public interest and
material; publishes its reasons for such finding. After which, it shall no longer
be legal to, or cause to, sell or distribute the consumer product not
c) requirements as to the methods of sampling, tests and codes complying with the standards or rules.
used to check the quality of the products;
b) The department may, by regulation, prohibit a manufacturer
d) requirements as to precautions in storage, transporting and from stockpiling consumer products so as to prevent such
packaging; manufacturer from circumventing the purposes of this paragraph.
e) requirements that a consumer product be marked with or The term "stockpiling" means manufacturing or importing a
accompanied by clear and adequate safety warnings or product between the date of promulgation of its consumer product
instructions, or requirements respecting the form of warnings or safety rule and its effective date, at a rate which is significantly
instructions. greater than the rate at which such product was produced or
imported during a base period as prescribed in the regulation
For this purpose, the concerned department shall adopt existing under this paragraph, ending before the date of promulgation of
government domestic product quality and safety standards: consumer product safety rule.
Provided, That in the absence of such standards, the concerned
department shall form specialized technical committees composed Article 10. Injurious, Dangerous and Unsafe Products. –
of equal number of representatives from each of the Government, Whenever the departments find, by their own initiative or by
business and consumer sectors to formulate, develop and purpose petition of a consumer, that a consumer product is found to be
consumer product quality and safety standards. The said technical injurious, unsafe or dangerous, it shall, after due notice and
committees shall consult with the private sector, which may, motu hearing, make the appropriate order for its recall, prohibition or
proprio, develop its own quality and safety standards that shall be seizure from public sale or distribution: Provided, That, in the sound
subject or agencies after public hearings have been conducted for discretion of the department it may declare a consumer product to
be imminently injurious, unsafe or dangerous, and order is
immediate recall, ban or seizure from public sale or distribution, in c) to refund the purchase price of the product less a reasonable
which case, the seller, distributor, manufacturer or producer allowance for use; and
thereof shall be afforded a hearing within forty-eight (48) hours
from such order. d) to pay the consumer reasonable damages as may be
determined by the department.
The ban on the sale and distribution of a consumer product
adjudged injurious, unsafe or dangerous, or imminently injurious, The manufacturer, distributor or seller shall not charge a consumer
unsafe or dangerous under the preceding paragraph shall stay in who avails himself of the remedy as provided above of any
force until such time that its safety can be assured or measures to expense and cost that may be incurred.
ensure its safety have been established. Article 12. Effectivity of Amendments and Revocation of
Article 11. Amendment and Revocation of Declaration of Consumer Product Safety Rule. – Any amendment or revocation
the Injurious, Unsafe or Dangerous Character of a of a consumer product safety rule made by the concerned
Consumer Product. – Any interested person may petition the department shall specify the date on which it shall take effect
appropriate department to commence a proceeding for the which shall not exceed ninety days from the date of amendment or
issuance of an amendment or revocation of a consumer product revocation is published unless the concerned department finds, for
safety rule or an order declaring a consumer product injurious, a good cause shown, that a later effective date is in the public
dangerous and unsafe. interest and publishes its reasons for such finding. The department
shall promulgate the necessary rules for the issuance, amendment
In case the department, upon petition by an interested party or its or revocation of any consumer product safety rule.
own initiative and after due notice and hearing, determines a
consumer product to be substandard or materially defective, it Article 13. New Products. – The concerned department shall
shall so notify the manufacturer, distributor or seller thereof of take measures to make a list of new consumer products and to
such finding and order such manufacturer, distributor or seller to: cause the publication by the respective manufacturers or importers
of such products a list thereof together with the descriptions in a
a) give notice to the public of the defect or failure to comply with newspaper of general circulation.
the product safety standards; and
Article 14. Certification of Conformity to Consumer Product
b) give notice to each distributor or retailer of such product. Standards. – The concerned department shall aim at having
consumer product standards established for every consumer
The department shall also direct the manufacturer, distributor or product so that consumer products shall be distributed in
seller of such product to extend any or all of the following remedies commerce only after inspection and certification of its quality and
to the injured person: safety standards by the department. The manufacturer shall avail
a) to bring such product into conformity with the requirements of of the Philippine Standard Certification Mark which the department
the applicable consumer product standards or to repair the defect shall grant after determining the product's compliance with the
in order to conform with the same; relevant standard in accordance with the implementing rules and
regulations.
b) to replace the product with a like or equivalent product which
complies with the applicable consumer product standards which Article 15. Imported Products. –
does not contain the defect;
a) Any consumer product offered for importation into the customs Commissioner of Customs shall jointly promulgate, such product
of the Philippine territory shall be refused admission if such may be released from customs custody under bond for the purpose
product: of permitting the owner or consignee an opportunity to so modify
such product.
1) fails to comply with an applicable consumer product quality and
safety standard or rule; d) All modifications taken by an owner or consignee for the
purpose of securing admission of an imported consumer product
2) is or has been determined to be injurious, unsafe and under paragraph (c) shall be subject to the supervision of the
dangerous; concerned department. If the product cannot be so modified, or if
3) is substandard; or the owner or consignee is not proceeding to satisfactorily modify
such product, it shall be refused admission and the department
4) has material defect. may direct redelivery of the product into customs custody, and to
seize the product if not so redelivered.
b) Samples of consumer products being imported into the
Philippines in a quantity necessary for purposes of determining the e) Imported consumer products not admitted must be exported,
existence of any of the above causes for non-admission may be except that upon application, the Commissioner of Customs may
obtained by the concerned department or agency without charge permit the destruction of the product if, within a reasonable time,
from the owner or consignee thereof. The owner or consignee of the owner or consignee thereof fails to export the same.
the imported consumer product under examination shall be
afforded an opportunity to a hearing with respect to the f) All expenses in connection with the destruction provided for in
importation of such products into the Philippines. If it appears from this Article, and all expenses in connection with the storage,
examination of such samples or otherwise that an imported cartage or labor with respect to any consumer product refused
consumer product does not conform to the consumer product admission under this Article, shall be paid by the owner or
safety rule or is injurious, unsafe and dangerous, is substandard or consignee and, in default of such payment, shall constitute a lien
has a material defect, such product shall be refused admission against any future importation made by such owner or consignee.
unless the owner or the consignee thereof manifests under bond Article 16. Consumer Products for Export. – The preceding
that none of the above ground for non-admission exists or that article on safety not apply to any consumer product if:
measures have been taken to cure them before they are sold,
distributed or offered for sale to the general public. a) it can be shown that such product is manufactured, sold or held
for sale for export from the Philippines, or that such product was
Any consumer product, the sale or use of which has been banned imported for export, unless such consumer product is in fact
or withdrawn in the country of manufacture, shall not be imported distributed in commerce for use in the Philippines; and
into the country.
b) such consumer product or the packaging thereof bears a stamp
c) If it appears that any consumer product which may not be or label stating that such consumer product is intended for export
admitted pursuant to paragraph (a) of this Article can be so and actually exported.
modified that it can already be accepted, the concerned
department may defer final examination as to the admission of Article 17. Powers, functions and duties. – In addition to their
such product for a period not exceeding ten (10) days, and in powers, functions and duties under existing laws, the concerned
accordance with such regulations as the department and the department shall have the following powers, functions and duties:
a) to administer and supervise the implementation of this Article b) manufacture for sale, offer for sale, distribute in commerce, or
and its implementing rules and regulations; import into the Philippines any consumer product which has been
declared as banned consumer product by a rule in this Act;
b) to undertake researches, develop and establish quality and
safety standards for consumer products in coordination with other c) refuse access to or copying of pertinent records or fail or refuse
government and private agencies closely associated with these to permit entry of or inspection by authorized officers or employees
products; of the department;

c) to inspect and analyze consumer products for purposes of d) fail to comply with an order issued under Article II relating to
determining conformity to established quality and safety notifications of substantial product hazards and to recall, repair,
standards; replacement or refund of unsafe products;

d) to levy, assess, collect and retain fees as are necessary to cover e) fail to comply with the rule prohibiting stockpiling.
the cost of inspection, certification, analysis and tests of samples
of consumer products and materials submitted in compliance with Article 19. Penalties. –
the provisions of this Article; a) Any person who shall violate any provision of Article 18 shall
e) to investigate the causes of and maintain a record of product- upon conviction, be subject to a fine of not less than One thousand
related deaths, illnesses and injuries for use in researches or pesos (P1,000.00) but not more than Ten thousand pesos
studies on the prevention of such product-related deaths, illnesses (P10,000.00) or imprisonment of not less than two (2) months but
and injuries. not more than one (1) year, or both upon the discretion of the
court. If the offender is an alien, he shall be deported after service
f) to accredit independent, competent non-government bodies, to of sentence and payment of fine without further deportation
assist in (1) monitoring the market for the presence of hazardous proceedings.
or non-certified products and other forms of violations of Article 18;
and (2) other appropriate means to expand the monitoring and b) In case the offender is a naturalized citizen, he shall, in addition
enforcement outreach of the department in relation to its to the penalty prescribed herein, suffer the penalty of cancellation
manpower, testing and certification resources at a given time. of his naturalization certificate and its registration in the civil
register and immediate deportation after service of sentence and
g) to accredit independent competent testing laboratories. payment of fine.

PROHIBITED ACTS AND PENALTIES c) Any director, officer or agent of a corporation who shall
authorize, order or perform any of the acts or practices constituting
Article 18. Prohibited Acts. – It shall be unlawful for any person in whole or in part a violation of Article 18, and who has knowledge
to: or notice of noncompliance received by the corporation from the
a) manufacture for sale, offer for sale, distribute in commerce, or concerned department, shall be subject to penalties to which that
import into the Philippines any consumer product which is not in corporation may be subject.
conformity with an applicable consumer product quality or safety In case the violation is committed by, or in the interest of a foreign
standard promulgated in this Act; juridical person duly licensed to engage in business in the
Philippines, such license to engage in business in the Philippines Article 23. Adulterated Food. – A food shall be deemed to be
shall immediately be revoked. adulterated:

CHAPTER II a) 1) if it bears or contains any poisonous or deleterious substance

FOOD, DRUGS, COSMETICS AND DEVICES which may render it injurious to health; but in case the substance
is not an added substance, such food shall not be considered
Article 20. Declaration of Policy. – The State shall ensure safe adulterated under this clause if the quantity of such substance
and good quality of food, drugs, cosmetics and devices, and does not ordinarily render it injurious to health;
regulate their production, sale, distribution and advertisement to
protect the health of the consumer. 2) if it bears or contains any added poisonous or deleterious
substance other than one which is (i) a pesticide chemical in or on
Article 21. Implementing Agency. – In the implementation of a raw agricultural commodity, (ii) a food additive, (iii) a color
the foregoing policy, the State, through the Department of Health, additive, for which tolerances have been established and it
hereby referred as the Department, shall, in accordance with the conforms to such tolerances;
provisions of this Act:
3) if it consists in whole or in part of any filthy, putrid or
a) establish standards and quality measures for food, drugs, decomposed substance, or if it is otherwise unfit for food;
devices and cosmetics;
4) if it has been prepared, packed or held under unsanitary
b) adopt measures to ensure pure and safe supply of foods and conditions whereby it may have become contaminated with filth, or
cosmetics, and safe, efficacious and good quality of drugs and whereby, it may have been rendered injurious to health;
devices in the Country;
5) if it is, in whole or part, the product of a diseased animal or of an
c) adopt measures to ensure the rational use of drugs and devices, animal which has died other than by slaughter;
such as, but not limited to, banning, recalling or withdrawing from
the market drugs and devices which are unregistered, unsafe, 6) if its container is composed, in whole or in part, of any poisonous
inefficacious or of doubtful therapeutic value, the adoption of an or deleterious substance which may render the contents injurious
official National Drug Formulary, and the use of generic names in to health; or
the labeling of drugs;
7) if it has passed its expiry date.
d) strengthen the Bureau of Food and Drugs.
b) (1) If any valuable constituent has been, in whole or in part,
Article 22. Rules and Regulations on Definitions and omitted or abstracted therefrom and the same has not been
Standards. – Whenever in the judgment of the Department such substituted, by any healthful equivalent of such constituent;
action will promote honesty and fair dealing in the interest of
consumers, it shall promulgate rules and regulations fixing and 2) if any substance, not a valuable constituent, has been added or
establishing a reasonable definition and standard of identity, a substituted or in part therefor;
reasonable standard of quality and/or reasonable standard of fill of 3) if damage or inferiority has been concealed in any manner; or
containers for food, drugs, cosmetics or devices.
4) if any substance has been added thereto or packed therewith so Article 24. Regulation of Unprocessed Food. – The provincial,
as to increase its bulk or weight, reduce its quality or strength, or municipal and city governments shall regulate the preparation and
make it appear better or of greater value than it is. sale of meat, fresh fruits, poultry, milk, fish, vegetables and other
foodstuff for public consumption, pursuant to the Local
c) if it is, or bears or contains a color additive which is unsafe under Government Code.
existing regulations: Provided, That the Department shall
promulgate regulations providing for the listing of color additives Article 25. Tolerance for Poisonous Ingredients in Food. –
which are harmless and suitable for use in food for which Any poisonous or deleterious substance added to any food shall be
tolerances have been established; deemed to be unsafe, except when such substance is required or
can not be avoided in its production or can not be avoided by good
d) if it is confectionary, and it bears or contains any alcohol or non- manufacturing practice. In such case, the Department shall
nutritive article or substance except harmless coloring, harmless promulgate regulations limiting the quantity therein in such extent
flavoring, harmless resinous glass not in excess of four-tenths as he finds necessary for the protection of public health, and any
(4/10) of one per centum (1%) natural gum and pectin: Provided, quantity exceeding the limits so fixed shall be deemed to be
That this clause shall not apply to a safe non-nutritive article or unsafe. In determining the quantity of such added substance to be
substance if, in the judgment of the Department as provided by tolerated in different articles of food, the Department shall take
regulations, (1) such article or substance is of practical functional into account the extent to which the use of such article is required
value in the manufacture, packaging or storage of such or can not be avoided in the production or manufacture of such
confectionery, (2) if the use of the substance does not promote articles and the other ways in which the consumer may be affected
deception of the consumer or otherwise results in adulteration or by the same or other poisonous or deleterious substance.
mislabeling in violation of any provision of this Act, and (3) would
not render the product injurious or hazardous to health: Provided, Article 26. Unsafe Food Additives, Exceptions for
further, That this paragraph shall not apply to any confectionery by Conformity with Regulation. – A food additive, with respect to
reason of its containing less than one-half (½) of one per centum any particular use or intended use, shall be deemed unsafe unless:
(1%) by volume of alcohol, derived solely from the use of flavoring
extracts, or to any chewing gum by reason of its containing a) it and its use or intended use conforms to the terms of an
harmless non-nutritive masticatory substance: Provided, finally, exemption for being solely intended for investigational use by
That the Department may, for the purpose of avoiding or resolving qualified experts; or
uncertainty as to the application of this clause, promulgate b) it and its use or intended use is in conformity with a regulation
regulations allowing or prohibiting the use of particular non- issued by the Department prescribing the conditions under which
nutritive substances; such additives may be safely used.
e) if it is oleomargarine, margarine or butter and any of the raw Article 27. Petition for Regulation of Food Additive. – Any
materials used therein consists in whole or in part of any filthy, person may, with respect to any intended use of a food additive,
putrid or decomposed substance, or such oleomargarine, file with the Department a petition proposing the issuance of a
margarine or butter is otherwise unfit for food; regulation prescribing the conditions under which such additives
f) if it has not been prepared in accordance with current acceptable may be safely used.
manufacturing practice established by the Department through
regulations.
The Department shall (1) establish a regulation prescribing, with the Department, taking into consideration standards of safety,
respect to one or more proposed uses of the food additive efficacy or good quality.
involved, (i) the conditions under which a food additive may be
safely used including, but not limited to, specifications as to the b) If it purports to be or is represented as a drug, the name of
particular food, classes of food, in which such additive may be which is recognized in an official compendium, and its strength
used, (ii) the maximum quantity which may be used, or permitted differs from, or its safety, efficacy, quality or purity falls below the
to remain in or on such food; (iii) the manner in which such additive standards set forth in such compendium, except that whenever
may be added to or used in or on such food, and (iv) any directions tests or methods of assay as prescribed are, in the judgment of the
or other labeling or packaging requirement for such additive Department, insufficient for the making of such determination, the
deemed necessary to assure the safety of such use, and shall Department shall promulgate regulations prescribing appropriate
notify the petitioner of such order and the reasons for such action; tests or methods of safety, efficacy, quality or purity shall be made.
or (2) deny the petition and notify the petitioner of and the reasons No drug defined in an official compendium shall be deemed to be
for such action. adulterated under this paragraph because it differs from the
standards of strength, safety, efficacy, quality or purity therefor set
The Department may, at any time upon his own initiative, issue a forth in such compendium, if its difference in strength, safety,
regulation prescribing, with respect to any particular food additive, efficacy, quality or purity from such standards is plainly stated in
the conditions under which such additive may be safely used and its label and approved for registration as such.
the reasons thereof, and cause the publication of the same.
c) If it is not subject to the provisions of paragraph (b) and its
Article 28. Effectivity of Regulations. – The regulations strength differs from, or its efficacy, quality or purity falls below,
promulgated under the preceding articles shall take effect fifteen that which it purports or is represented to possess.
(15) days after its publication in a newspaper of general circulation
but the Department may stay such effectivity if, after issuance of d) If a drug or device and any substance has been mixed or packed
such order, a hearing is sought by any person adversely affected therewith, or any substance has been substituted wholly or in part
by such order. thereof, so as to reduce its safety, efficacy, quality, strength or
purity.
DRUGS AND DEVICES
e) If the methods used in, or the facilities or controls used for its
Article 29. Adulterated Drugs and Devices. – A drug or device manufacture or holding do not conform to or are not operated or
shall be deemed to be adulterated: administered in conformity with current good manufacturing
practice to assure that such drug meets the requirements of this
a) 1) if it contains in whole or in part of any filthy, putrid, or Act as to safety, quality and efficacy, and has the identity and
decomposed substance which may affect its safety, efficacy or strength, and meets the quality and purity characteristics which it
good quality; or (2) if it has been manufactured, prepared or held purports or is represented to possess.
under unsanitary conditions whereby it may have been
contaminated with dirt or filth or whereby it may have been Article 30. Exemption in Case of Drugs and Devices. –
rendered injurious to health; or (3) if its container is composed, in
whole or in part, of any poisonous or deleterious substance which a) The Department is hereby directed to promulgate regulations
may render the contents injurious to health; or (4) if it bears or exempting from any labeling or packaging requirement of this Act
contains any color other than a permissible one as determined by drugs and devices which are, in accordance with the practice of the
trade, to be processed, labeled or repacked in substantial 4) A drug which is subject to sub-article (b) (1) of this Article shall
quantities at establishments other than those where originally be deemed to be mislabeled if any time prior to dispensing, its
processes or packed, on conditions that such drugs and devices are label fails to bear the statement "Caution: Should not be dispensed
not adulterated or mislabeled under the provisions of this Act upon without prescription." A drug to which sub-article (b) (1) of this
removal from such processing, labeling or repacking establishment. Article does not apply shall de deemed to be mislabeled it at any
time prior to dispensing, its label bears the caution statement
b) 1) Drugs intended for use by man which: quoted in the preceding sentence.
(i) are habit-forming; Article 31. Licensing and Registration. –
(ii) because of their toxicity or other potentiality for harmful effect, a) No person shall manufacture, sell, offer for sale, import, export,
or method of their use is not safe for use except under the distribute or transfer any drug or device, unless an application filed
supervision of practitioner licensed by law to administer such drug; pursuant to sub-article (b) hereof is effective with respect to such
(iii) are new drugs whose applications are limited to investigational drug or device.
use; shall be dispensed only (a) upon written prescription of a b) Any person may file with the Department, through the
practitioner licensed by law to administer such drug, or (b) upon an Department, an application under oath with respect to any drug or
oral prescription of such practitioner which is reduced promptly to device subject to the provisions of sub-article (a) hereof. Such
writing and filed by the pharmacist, or (c) by refilling any such persons shall submit to the Department: (1) full reports of
written or oral prescription if such refilling is authorized by the investigations which have been made to show whether or not such
prescriber either in the original prescription or by oral order which drug or device is safe, efficacious and of good quality for use based
is reduced promptly to writing and filed by the pharmacist. The act on clinical studies conducted in the Philippines; (2) a full list of the
of dispensing a drug contrary to the provisions of this paragraph articles used as components of such drug or device; (3) a full
shall be deemed to be an act which results in the drug being statement of the composition of such drug or device; (4) a full
mislabeled while held for sale. description of the methods used in and the facilities and controls
2) Any drug dispensed by filling or refilling a written prescription of used for the manufacture of such drug or device; (5) such samples
a practitioner licensed by law to administer such drug shall be of such drug or device and of the articles used as components
exempt from the requirements of Article 89, except paragraphs (a), thereof as the Department may require; (6) specimens of the
(h), (2) and (3), and the packaging requirements of paragraphs (f) labeling proposed to be used for such drug or device; and (7) such
and (g), if the drug bears a label containing the name and address other requirements as may be prescribed by regulations to ensure
of the dispenser, the serial number and the date of the prescription safety, efficacy and good quality of such drug and device.
or its filling, the name of the prescriber and, if stated in the c) Within one hundred eighty (180) days after the filing of an
prescription the name of the patient and the directions for use and application under this sub-article, or such additional period as may
cautionary statements, if any, container in such prescription. be agreed upon by the Department and the applicant, the
3) The Department may, by regulation, remove drugs subject to Department shall either (1) approve the application if he then finds
Article 89 (d) and Article 31 from the requirements of sub-article that none of the grounds for denying approval specified in sub-
(b) (1) of this Article, when such requirements are not necessary article (d) applies, or (2) give the applicant notice of an opportunity
for the protection of the public health. for a hearing before the Department under sub-article (d) on the
question whether such application is approvable.
d) If the Department finds, after due notice to the applicant and f) The Department shall promulgate regulations for exempting from
giving him an opportunity for a hearing, that (1) the reports of the the operation of this Article drugs and devices intended solely for
investigations which are required to be submitted to the investigational used by experts qualified by scientific training and
Department pursuant to sub-article (b) hereof, do not include experience to investigate the safety and effectiveness of drugs and
adequate tests by all methods reasonably applicable to show devices.
whether or not such drug or device is safe, efficacious and of good
quality for use under the conditions prescribed, recommended or g) No person shall manufacture, sell, offer for sale, import, export,
suggested in the proposed labeling thereof; (2) the results of such distribute or transfer any drug or device without first securing a
test show that drug or device is unsafe, inefficacious or of doubtful license to operate from the Department after due compliance with
therapeutic value for use under such conditions or do not show technical requirements in accordance with the rules and
that such drug or device is safe, methods used in, and the facilities regulations promulgated by the Department pursuant to this Act.
and controls used for the manufacture of such drug or device are h) No drug or device shall be manufactured, sold, offered for sale,
inadequate to preserve its identity, strength, quality and purity; or imported, exported, distributed or transferred, unless registered by
(4) upon the basis of the information submitted to him as part of the manufacturer, imported or distributor thereof, in accordance
the application, or upon the basis of any other information before with rules and regulations promulgated by the Department
him with respect to such drug or device, he has insufficient pursuant to this Act. The provisions of Article 31 (b), (d) and (e), to
information to determine whether such drug or device is safe, the extent applicable, shall govern the registration of such drugs
efficacious or of good equality for use under such conditions; or (5) and devices.
evaluated on the basis of the information submitted to him as part
of the application, and any other information before him with i) The Department shall promulgate a schedule of fees for the
respect to such drug or device, there is a lack of substantial issuance of the certificate of product registration and license to
evidence that the drug or device will have the effect it purports or operate provided for under this Article.
is represented to have under the conditions of use prescribed,
recommended or suggested in the proposed labeling thereof; or (6) Article 32. Dangerous Drugs. – The importation, distribution,
based on a fair evaluation of all material facts, such labeling is manufacture, production, compounding, prescription, dispensing
false or misleading in any way; he shall issue an order disapproving and sale of, and other lawful acts in connection with, dangerous
the application. drugs of such kind and quantity as may be deemed necessary
according to the medical and research needs of the country and
e) The effectiveness of an application with respect to any drug or the determination of the quantity/quantities to be imported,
device shall, after due notice and opportunity for hearing to the manufactured and held in stock at any given time by an authorized
applicant, by order of the Department be suspended if it finds (1) importer, manufacturer or distributor of dangerous drugs shall be
that clinical experience, tests by new methods, or tests by methods under the jurisdiction and authority of the Dangerous Drugs Board
not deemed reasonably applicable when such application became as provided for by existing laws and regulations.
effective show that such drug or device is unsafe or ineffective for
use under the conditions of use upon the basis of which the Article 33. Banned or Restricted Drugs. – Banned or severely
application became effective, or (2) that the application contains restricted drugs for health and safety reasons in their country of
any untrue statement of a material fact. The order shall state the origin shall be banned and confiscated or its uses severely
findings upon which it is based. restricted whichever is appropriate, by the Department. The
Department shall monitor the presence in the market of such drugs
and cause the maintenance and regular publications of an updated and (3) drugs which are intended for investigational use by experts
consolidated list thereof. qualified by scientific training and experience to investigate the
safety and efficacy of drugs.
CERTIFICATION OF DRUGS CONTAINING ANTIBIOTICS
COSMETICS
Article 34. Certification of Certain Drugs. –
Article 35. Adulterated cosmetics. – A cosmetic shall be
a) The Department shall, by regulations, provide for the deemed to be adulterated:
certification of batches of drugs composed wholly or partially of
any kind of antibiotic. A batch of such drug shall be certified if such a) if it bears or contains any poisonous or deleterious substance
drug has such characteristics of identity, strength, quality and which may render it injurious to users under the condition of use
purity, as the Department prescribes in such regulations as prescribed in the labeling thereof, or under the condition of use as
necessary to insure adequately safety and efficacy of use and good are customary or usual: Provided, That this provision shall not
quality, but shall not otherwise be certified. Prior to the effective apply to color additive hair dye, the label of which bears the
date of such regulations the Department, in lieu of certification, following legend conspicuously displayed thereon: "Caution: this
shall issue a release for any batch which, in his judgment, may be product contains ingredients which may cause skin irritation on
released without risk as to the safety and efficacy of its use. Such certain individuals and a preliminary test according to
release shall prescribe the date of its expiration and other accompanying directions should first be made. This product must
conditions under which it shall cease to be effective as to such not be used for dyeing the eyelashes or eyebrows; to do so may
batch and as to portions thereof. For purposes of this Article and of cause blindness" and labeling of which bears adequate directions
Article 89 (j), the term "antibiotic drug" means any drug intended for such preliminary testing. For purposes of this paragraph (e) the
for use by man containing any quantity of any chemical substance term "hair dye" shall not include eyelash dyes or eyebrow dyes.
which is produced by a micro-organism and which has the capacity
to inhibit or destroy micro-organisms in dilute solution (including b) if it consists in whole or in part of any filthy, putrid, or
the chemically synthesized equivalent of any such substance). decomposed substance.

b) Whenever in the judgment of the Department, the requirements c) if it has been prepared, packed or held under unsanitary
of this Article and of Article 89 (j) with respect to any drug or class conditions whereby it may have become contaminated with filth, or
of drugs are not necessary to insure safety and efficacy of use and whereby it may have been rendered injurious to health.
good quality, the Department shall promulgate regulations d) if its container is composed, in whole or in part, of any poisonous
exempting such drug or class of drugs from such requirements. or deleterious substance which may render the contents injurious
c) The Department shall promulgate regulations exempting from to health.
any requirement of this Article and of Article 89 (j), (l) drugs which e) if it is not a hair dye, and it bears or contains color additive other
are to be stored, processed, labeled, or repacked at establishments than which is permissible.
other than those where manufactured, or condition that such drugs
comply with all such requirements upon removal from such f) if any of its substances has been (1) mixed or packed therewith
establishments; (2) drugs which conform to applicable standards of so as to reduce its quality or strength or (2) substituted wholly or in
identity, strength, quality, and purity prescribed by these parts therefor.
regulations and are intended for use in manufacturing other drugs;
Article 36. Factory Inspection. – such locality to which shall be attached such conditions governing
the manufacture, processing or packing of such consumer products
a) For purposes of enforcement of this Article, officers or for such temporary period of time as may be necessary to protect
employees duly designated by the Department, upon presenting public health; and after the effective date of such regulations, and
appropriate credentials to the owner, operator, or agent in charge, during such temporary period, no person shall, offer for sale or
are authorized (1) to enter, at reasonable hours, any factory, transfer any such food, cosmetics, drugs or devices unless such
warehouse or establishment in which food, drugs, devices or manufacturer, processor or packer holds such permit.
cosmetics are manufactured, processed, packed or held, for
introduction into domestic commerce or are held after such Article 38. Publicity and Publication. –
introduction, or to enter any vehicle being used to transport or hold
such food, drugs, devices, or cosmetics in domestic commerce; and a) The Department my cause to be disseminated information
(2) to inspect, in a reasonable manner, such factory, warehouse, or regarding food, drugs, devices, or cosmetics in situations involving,
establishment or vehicle and all pertinent equipment, finished and in the opinion of the Department, imminent danger to health, or
unfinished materials, containers and labeling therein. gross deception to the consumer. Nothing in this Article shall be
construed to prohibit the Department from collecting, reporting,
b) If the officer or employee making any such inspection of a and illustrating the results of its investigations.
factory, warehouse or other establishment has obtained any
sample in the course of the inspection, upon completion of the b) The Department shall publish a Drug Reference Manual and
inspection and prior to leaving the premises he shall give to the Drug Bulletin to serve as reference by manufacturers, distributors,
owner, operator, or agent in charge a receipt describing the physicians, consumers and such other groups as may be deemed
samples obtained. necessary. The Department is hereby authorized to sell the Drug
Reference Manual at cost.
c) Whenever in the course of any such inspection of a factory or
other establishment where food is manufactured, processed or Article 39. Administrative Sanctions. – In addition to the
packed, the officer or employee making the inspection obtains a administrative sanctions provided for under Letter of Instructions
sample of any such food, and an analysis made of such sample for No. 1223, the Department is hereby authorized to impose, after
the purpose of ascertaining whether such food consists in whole or notice and hearing, administrative fines of not less than One
in part of any filthy, putrid or decomposed substance, or is thousand pesos (P1,000.00) nor more than Five thousand pesos
otherwise unfit for food, a copy of the results of such analysis shall (P5,000.00) for any violation of this Act.
be furnished promptly to the owner, operator or agent in charge. PROHIBITED ACTS AND PENALTIES
Article 37. Provisional Permits. – Whenever the Department Article 40. Prohibited Acts. – The following acts and the causing
finds, after investigation, that the sale or distribution in commerce thereof are hereby prohibited:
of any class of food, cosmetics, drugs or devices, may be injurious
to health, and that such injurious nature cannot be adequately a) the manufacture, importation, exportation, sale, offering for
determined after such articles have entered into domestic sale, distribution or transfer of any food, drug, device or cosmetic
commerce, it shall promulgate regulations providing for the that is adulterated or mislabeled;
issuance, suspension and revocation of provisional permits, offer
for sale or transfer of such classes of food, cosmetics, drugs or b) the adulteration or misbranding of any food, drug, device or
devices to manufacturers, processors or packers of the same in cosmetic;
c) the refusal to permit entry or inspection as authorized by Article k) the manufacture, importation, exportation, sale, offering for sale,
36 to allow samples to be collected; distribution, or transfer of any drug or device by any person
without the license from the Department required in this Act;
d) the giving of a guaranty or undertaking referred to in Article 41
(b) hereof which guaranty or undertaking is false, except by a l) the sale or offering for sale of any drug or device beyond its
person who relied upon a guaranty or undertaking to the same expiration or expiry date;
effect signed by, and containing the name and address of, the
person residing in the Philippines from whom he received in good m) the release for sale or distribution of a batch of drugs without
faith the food, drug, device, or cosmetic or the giving of a guaranty batch certification when required under Article 34 hereof.
or undertaking referred to in Article 41 (b) which guaranty or Article 41. Penalties. –
undertaking is false;
a) Any person who violates any of the provisions of Article 40
e) forging, counterfeiting, simulating, or falsely representing or hereof shall, upon conviction, be subject to imprisonment of not
without proper authority using any mark, stamp, tag, label, or less than one (1) year but not more than five (5) years, or a fine of
other identification device authorized or required by regulations not less than Five thousand pesos (P5,000.00) but not more than
promulgated under the provisions of this Act; Ten thousand pesos (P10,000.00), or both such imprisonment and
f) the using by any person to his own advantage, or revealing, fine, in the discretion of the Court.
other than to the Department or to the courts when relevant in any Should the offense be committed by a juridical person, the
judicial proceeding under this Act, any information concerning any Chairman of the Board of Directors, the President, General
method or process which as a trade secret is entitled to protection; Manager, or the partners and/or the persons directly responsible
g) the alteration, mutilation, destruction, obliteration, or removal of therefor shall be penalized.
the whole or any part of the labeling of, or the doing of any other b) No person shall be subject to the penalties of sub-article (a) of
act with respect to a food, drug, device, or cosmetic, if such act is this Article for (1) having sold, offered for sale or transferred any
done while such product is held for sale (whether or not the first product and delivered it, if such delivery was made in good faith,
sale) and results in such product being adulterated or mislabeled; unless he refuses to furnish on request of the Department, the
h) the use, on the labeling of any drug or in any advertising name and address of the person from whom he purchased or
relating to such drug, of any representation or suggestion that an received such product and copies of all documents, if any there be,
application with respect to such drug is effective under Article 31 pertaining to the delivery of the product to him; (2) having violated
hereof, or that such drug complies with the provisions of such Article 40 (a) if he established a guaranty or undertaking signed
articles; by, and containing the name and address of, the person residing in
the Philippines from whom he received in good faith the product, or
i) the use, in labeling, advertising or other sales promotion, of any (3) having violated Article 40 (a), where the violation exists
reference to any report or analysis furnished in compliance with because the product is adulterated by reason of containing a color
Section 19 of Executive Order 175, series of 1987; other than the permissible one under regulations promulgated by
the Department in this Act, if such person establishes a guaranty or
j) the manufacture, importation, exportation, sale, offering for sale, undertaking signed by, and containing the name and address, of
distribution, or transfer of any drug or device which is not the manufacturer of the color, to the effect that such color is
registered with the Department pursuant to this Act;
permissible, under applicable regulations promulgated by the or offered for import to the Philippines, giving notice thereof to the
Department in this Act. owner or consignee who may appear before the Department and
exercise the right to make testimony. If it appears from the
CHAPTER III examination of such samples that such hazardous substance is a
HAZARDOUS SUBSTANCE mislabeled hazardous substance or banned hazardous substance,
Article 42. Declaration of Policy. – The State shall adopt then such hazardous substance shall be refused admission except
measures designed to protect the consumer against substances as may be provided in an order issued by the Department
other than food, drugs, cosmetics and devices that are hazardous authorizing delivery of the refused products or substance under the
to his health and safety. requirements imposed therein. The Commissioner of Customs shall
cause the destruction of any hazardous substance refused
Article 43. Implementing Agency. – The Department of Health, admission unless such is exported, under regulations issued by the
hereby referred to as the Department, shall enforce the provisions Commissioner within ninety (90) days from the date of notice of
of this Chapter. such refusal or within such additional time as may be fixed by him.

Article 44. Regulations Declaring Hazardous Substances b) Pending decision on the admissibility of a hazardous substance
and Establishing Variations and Exemptions. – The being imported or offered for import, the Commissioner of Customs
Department shall promulgate the rules and regulations governing may authorize delivery of such hazardous substance to the owner
the implementation of this Article. or consignee upon execution by him of a good and sufficient bond
providing for the payment of such liquidated damages in the event
To resolve uncertainty as to the coverage of this Article, the of default. If it appears to the Department that the hazardous
Department may, by regulations, declare as hazardous any substance can by relabeling or other action made to comply with
substance of mixture of substances which he finds meets the the requirements of this Article final determination as to the
requirements of paragraph (ak), clause (1) (i) of Article 4. admission of such hazardous substance may be deferred and upon
If the Department finds that for good and sufficient reasons, full filing of a timely written application by the owner or consignee and
compliance with the labeling requirements otherwise applicable the execution by him of a bond as provided in the provision of this
under this Chapter is impracticable or is not necessary for the paragraph. The Department may, in accordance with regulations,
adequate protection of public health and safety, it shall promulgate authorize the applicant to perform such relabeling or other action
regulations exempting such substances from these requirements to specified in such authorization, including destruction or export of
the extent he deems consistent with the objective of adequately such rejected hazardous substance. All such relabeling or other
safeguarding public health and safety, and any hazardous action pursuant to such authorization shall be in accordance with
substance which does not bear a label in accordance with such regulations and shall be under the supervision of an officer or
regulations shall be deemed to be a mislabeled hazardous employee of the Commission of Customs and the Department.
substance. PROHIBITED ACTS AND PENALTIES
Article 45. Imports: Regulations on Imported Hazardous Article 46. Prohibited Acts. – It shall be unlawful for any person
Substances. – to:
a) The Commissioner of Customs shall deliver to the Department, a) introduce or deliver for introduction into commerce of any
upon its request, samples of hazardous substances being imported mislabeled hazardous substance or banned hazardous substance;
b) alter, mutilate, destroy, obliterate or remove the whole or any undertaking signed by, and containing the name and address of,
part of the label of a mislabeled hazardous substance, or banned the person from whom he received in good faith, the hazardous
hazardous substance, if such act is done while the substance is in substance to the effect that the hazardous substance is not a
commerce or while the substance is held for sale, whether or not it mislabeled hazardous substance or banned hazardous within the
is the first sale; meaning of that term in this Act.

c) receive in commerce any mislabeled hazardous substance or TITLE III. – PROTECTION AGAINST DECEPTIVE, UNFAIR
banned hazardous substance and the delivery or preferred delivery ANDUNCONSCIONABLE SALES ACTS OR PRACTICES
thereof at cost or otherwise;
CHAPTER I
d) give the guaranty or undertaking referred to in paragraph (b) of DECEPTIVE, UNFAIR AND UNCONSCIONABLE SALES ACTS OR
Article 93 and paragraph (b) of Article 45 if such guaranty or PRACTICES
undertaking if false except by a person who relied upon a guaranty
or undertaking which he received in good faith; Article 48. Declaration of Policy. – The State shall promote and
encourage fair, honest and equitable relations among parties in
e) introduce or deliver for introduction into commerce or receive in consumer transactions and protect the consumer against
commerce and subsequently deliver or preferred at cost or deceptive, unfair and unconscionable sales acts or practices.
otherwise, or a hazardous substance in a refused food, drug,
cosmetic or device container or in a container which, though not a Article 49. Implementing Agency. – The Department of Trade
reused container, is identifiable as a food, drug, cosmetic or device and Industry, hereby referred to as the Department, shall enforce
container by its labeling or by other identification. The use of a the provisions of this Chapter.
used food, drug, cosmetic or device container for a hazardous REGULATION OF SALES ACTS AND PRACTICES
substance does not diminish the danger posed by the hazardous
substance involved, therefore, such substance shall be deemed a Article 50. Prohibition Against Deceptive Sales Acts or
mislabeled hazardous substance. Practices. – A deceptive act or practice by a seller or supplier in
connection with a consumer transaction violates this Act whether it
Article 47. Penalties, exception. – occurs before, during or after the transaction. An act or practice
a) Any person who violates any of the provisions of Article 46 shall, shall be deemed deceptive whenever the producer, manufacturer,
upon conviction, be subject to a fine of not less than One thousand supplier or seller, through concealment, false representation of
pesos (P1,000.00) or an imprisonment of not less than six (6) fraudulent manipulation, induces a consumer to enter into a sales
months but not more than five (5) years or both upon the or lease transaction of any consumer product or service.
discretion of the court. Without limiting the scope of the above paragraph, the act or
b) No person shall be subject to the penalties of paragraph (a) of practice of a seller or supplier is deceptive when it represents that:
this Article for (1) having violated paragraph (c) of Article 46 unless a) a consumer product or service has the sponsorship, approval,
he refuses to furnish, upon request by the Department or his performance, characteristics, ingredients, accessories, uses, or
representative, the name and address of the person from who he benefits it does not have;
purchased such hazardous substances and (2) having violated
paragraph (a) of Article 46, if he establishes a guaranty or
b) a consumer product or service is of a particular standard, or mental infirmity, ignorance, illiteracy, lack of time or the general
quality, grade, style, or model when in fact it is not; conditions of the environment or surroundings, induces the
consumer to enter into a sales or lease transaction grossly inimical
c) a consumer product is new, original or unused, when in fact, it is to the interests of the consumer or grossly one-sided in favor of the
in a deteriorated, altered, reconditioned, reclaimed or second-hand producer, manufacturer, distributor, supplier or seller.
state;
In determining whether an act or practice is unfair and
d) a consumer product or service is available to the consumer for a unconscionable, the following circumstances shall be considered:
reason that is different from the fact;
a) that the producer, manufacturer, distributor, supplier or seller
e) a consumer product or service has been supplied in accordance took advantage of the inability of the consumer to reasonably
with the previous representation when in fact it is not; protect his interest because of his inability to understand the
f) a consumer product or service can be supplied in a quantity language of an agreement, or similar factors;
greater than the supplier intends; b) that when the consumer transaction was entered into, the price
g) a service, or repair of a consumer product is needed when in grossly exceeded the price at which similar products or services
fact it is not; were readily obtainable in similar transaction by like consumers;

h) a specific price advantage of a consumer product exists when in c) that when the consumer transaction was entered into, the
fact it does not; consumer was unable to receive a substantial benefit from the
subject of the transaction;
i) the sales act or practice involves or does not involve a warranty,
a disclaimer of warranties, particular warranty terms or other d) that when the consumer was entered into, the seller or supplier
rights, remedies or obligations if the indication is false; and was aware that there was no reasonable probability or payment of
the obligation in full by the consumer; and
j) the seller or supplier has a sponsorship, approval, or affiliation he
does not have. e) that the transaction that the seller or supplier induced the
consumer to enter into was excessively one-sided in favor of the
Article 51. Deceptive Sales Act or Practices By Regulation. – seller or supplier.
The Department shall, after due notice and hearing, promulgate
regulations declaring as deceptive any sales act, practice or Article 53. Chain Distribution Plans or Pyramid Sales
technique which is a misrepresentation of facts other than these Schemes. – Chain distribution plans or pyramid sales schemes
enumerated in Article 50. shall not be employed in the sale of consumer products.

Article 52. Unfair or Unconscionable Sales Act or Practice. – Article 54. Home Solicitation Sales. – No business entity shall
An unfair or unconscionable sales act or practice by a seller or conduct any home solicitation sale of any consumer product or
supplier in connection with a consumer transaction violates this service without first obtaining a permit from the Department. Such
Chapter whether it occurs before, during or after the consumer permit may be denied suspended or revoked upon cause as
transaction. An act or practice shall be deemed unfair or provided in the rules and regulations promulgated by the
unconscionable whenever the producer, manufacturer, distributor, Department, after due notice and hearing.
supplier or seller, by taking advantage of the consumer's physical
Article 55. Home Solicitation Sales; When Conducted. – not more than one (1) year or both, upon the discretion of the
Home solicitation sales may be conducted only between the hours court.
of nine o'clock in the morning and seven o'clock in the evening of
each working day: Provided, That solicitation sales may be made at b) In addition to the penalty provided for in paragraph (1), the
a time other than the prescribed hours where the person solicited court may grant an injunction restraining the conduct constituting
has previously agreed to the same. the contravention of the provisions of Articles 50 and 51 and/or
actual damages and such other orders as it thinks fit to redress
Article 56. Home Solicitation Sales; by Whom Conducted. – injury to the person caused by such conduct.
Home solicitation sales shall only be conducted by a person who
has the proper identification and authority from his principal to CHAPTER II
make such solicitations. REGULATION OF PRACTICES RELATIVE TO WEIGHTS AND
MEASURES GENERAL PROVISION
Article 57. Receipts for Home Solicitation Sales. – Sales
generated from home solicitation sales shall be properly receipted Article 61. Implementing Agency. – The provincial, city, or
as per existing laws, rules and regulations on sale transactions. municipal treasurers shall strictly enforce the provisions of this
Chapter, and its implementing rules and regulations: Provided,
Article 58. Prohibited Representations. – A home solicitation That, with respect to the use of the Metric System, it shall be
sale shall not represent that: enforced by the Department of Trade and Industry.

a) the buyer has been specially selected; Article 62. Sealing and Testing of Instruments of Weights
and Measure. – All instruments for determining weights and
b) a survey, test or research is being conducted; or measures in all consumer and consumer related transactions shall
c) the seller is making a special offer to a few persons only for a be tested, calibrated and sealed every six (6) months by the official
limited period of time. sealer who shall be the provincial or city or municipal treasurer or
his authorized representative upon payment of fees required under
Article 59. Referral Sales. – Referral selling plans shall not be existing law: Provided, That all instruments of weights and
used in the sale of consumer products unless the seller executes in measures shall continuously be inspected for compliance with the
favor of the buyer a written undertaking that will grant a specified provisions of this Chapter.
compensation or other benefit to said buyer in return for each and
every transaction consummated by said seller with the persons Article 63. Use of Metric System. – The system of weights and
referred by said buyer or for subsequent sales that said buyers has measures to be used for all products, commodities, materials,
helped the seller enter into. utilities, services and commercial transactions, in all contracts,
deeds and other official and legal instruments and documents shall
Article 60. Penalties. – be the metric system, in accordance with existing laws and their
implementing rules and regulations.
a) Any person who shall violate the provisions of Title III, Chapter I,
shall upon conviction, be subject to a fine of not less than Five The Department of Trade and Industry shall also adopt standard
Hundred Pesos (P500.00) but not more than Ten Thousand Pesos measurement for garments, shoes and other similar consumer
(P10,000.00) or imprisonment of not less than five (5) months but products.

PROHIBITED ACTS
Article 64. Fraudulent Practices Relative to Weights and use any scale, balance, weight or measure that has not been
Measures. – The following acts relating to weights and measures sealed or if previously sealed, the license therefor has expired and
are prohibited: has not been renewed in due time;

a) for any person other than the official sealer or his duly h) for any person to fraudulently alter any scale, balance, weight,
authorized representative to place or attach an official tag, seal, or measure after it is officially sealed;
sticker, mark, stamp, brand or other characteristic sign used to
indicate that such instrument of weight and measure has officially i) for any person to knowingly use any false scale, balance, weight
been tested, calibrated, sealed or inspected; or measure, whether sealed or not;

b) for any person to imitate any seal, sticker, mark, stamp, brand, j) for any person to fraudulently give short weight or measure in
tag or other characteristic sign used to indicate that such the making of a scale;
instrument of weight or measures has been officially tested, k) for any person, assuming to determine truly the weight or
calibrated, sealed or inspected; measure of any article bought or sold by weight or measure, to
c) for any person other than the official sealer or his duly fraudulently misrepresent the weight or measure thereof; or
authorized representative to alter in any way the certificate or l) for any person to procure the commission of any such offense
receipt given by the official sealer or his duly authorized abovementioned by another.
representative as an acknowledgment that the instrument for
determining weight or measure has been fully tested, calibrated, Instruments officially sealed at some previous time which have
sealed or inspected; remained unaltered and accurate and the seal or tag officially
affixed thereto remains intact and in the same position and
d) for any person to make or knowingly sell or use any false or condition in which it was placed by the official sealer or his duly
counterfeit seal, sticker, brand, stamp, tag, certificate or license or authorized representative shall, if presented for sealing, be sealed
any dye for printing or making the same or any characteristic sign promptly on demand by the official sealer or his authorized
used to indicate that such instrument of weight or measure has representative without penalty except a surcharge fixed by law or
been officially tested, calibrated, sealed or inspected; regulation.
e) for any person other than the official sealer or his duly Article 65. Penalties. –
authorized representative to alter the written or printed figures,
letters or symbols on any official seal, sticker, receipt, stamp, tag, a) Any person who shall violate the provisions of paragraphs (a) to
certificate or license used or issued; (f) and paragraph (l) of Article 64 or its implementing rules and
regulations shall, upon conviction, be subject to a fine of not less
f) for any person to use or reuse any restored, altered, expired, than Two hundred pesos (P200.00) but not more than One
damaged stamp, tag certificate or license for the purpose of thousand pesos (P1,000.00) or by imprisonment of not more than
making it appear that the instrument of weight of measure has one (1) year or both upon the discretion of the court.
been tested, calibrated, sealed or inspected;
b) Any person who shall violate the provisions of paragraph (g) of
g) for any person engaged in the buying and selling of consumer Article 64 for the first time shall be subject to a fine of not less than
products or of furnishing services the value of which is estimated Five hundred pesos (P500.00) or by imprisonment of not less than
by weight or measure to possess, use or maintain with intention to
one (1) month but not more than five (5) years or both, upon the 6) stipulate the period within which, after notice of defect,
discretion of the court. malfunction or failure to conform to the warranty, the warrantor
will perform any obligation under the warranty.
c) The owner-possessor or user of instrument of weights and
measure enumerated in paragraphs (h) to (k) of Article 64 shall, b) Express warranty – operative from moment of sale. – All written
upon conviction, be subject to a fine of not less than Three hundred warranties or guarantees issued by a manufacturer, producer, or
pesos (P300.00) or imprisonment not exceeding one (1) year, or importer shall be operative from the moment of sale.
both, upon the discretion of the court.
1) Sales Report. – All sales made by distributors of products
CHAPTER III covered by this Article shall be reported to the manufacturer,
CONSUMER PRODUCT AND SERVICE WARRANTIES producer, or importer of the product sold within thirty (30) days
from date of purchase, unless otherwise agreed upon. The report
Article 66. Implementing Agency. – The Department of Trade shall contain, among others, the date of purchase, model of the
and Industry, shall strictly enforce the provision of this Chapter and product bought, its serial number, name and address of the buyer.
its implementing rules and regulations. The report made in accordance with this provision shall be
Article 67. Applicable Law on Warranties. – The provisions of equivalent to a warranty registration with the manufacturer,
the Civil Code on conditions and warranties shall govern all producer, or importer. Such registration is sufficient to hold the
contracts of sale with conditions and warranties. manufacturer, producer, or importer liable, in appropriate cases,
under its warranty.
Article 68. Additional Provisions on Warranties. – In addition
to the Civil Code provisions on sale with warranties, the following 2) Failure to make or send report. – Failure of the distributor to
provisions shall govern the sale of consumer products with make the report or send them the form required by the
warranty: manufacturer, producer, or importer shall relieve the latter of its
liability under the warranty: Provided, however, That the distributor
a) Terms of express warranty. – Any seller or manufacturer who who failed to comply with its obligation to send the sales reports
gives an express warranty shall: shall be personally liable under the warranty. For this purpose, the
manufacturer shall be obligated to make good the warranty at the
1) set forth the terms of warranty in clear and readily expense of the distributor.
understandable language and clearly identify himself as the
warrantor; 3) Retail. – The retailer shall be subsidiarily liable under the
warranty in case of failure of both the manufacturer and distributor
2) identify the party to whom the warranty is extended; to honor the warranty. In such case, the retailer shall shoulder the
3) state the products or parts covered; expenses and costs necessary to honor the warranty. Nothing
therein shall prevent the retailer from proceeding against the
4) state what the warrantor will do in the event of a defect, distributor or manufacturer.
malfunction of failure to conform to the written warranty and at
whose expense; 4) Enforcement of warranty or guarantee. – The warranty rights can
be enforced by presentment of a claim. To this end, the purchaser
5) state what the consumer must do to avail of the rights which needs only to present to the immediate seller either the warranty
accrue to the warranty; and card of the official receipt along with the product to be serviced or
returned to the immediate seller. No other documentary The warrantor will not be required to perform the above duties if he
requirement shall be demanded from the purchaser. If the can show that the defect, malfunction or failure to conform to a
immediate seller is the manufacturer's factory or showroom, the written warranty was caused by damage due to unreasonable use
warranty shall immediately be honored. If the product was thereof.
purchased from a distributor, the distributor shall likewise
immediately honor the warranty. In the case of a retailer other than e) Duration of warranty. – The seller and the consumer may
the distributor, the former shall take responsibility without cost to stipulate the period within which the express warranty shall be
the buyer of presenting the warranty claim to the distributor in the enforceable. If the implied warranty on merchantability
consumer's behalf. accompanies an express warranty, both will be of equal duration.

5) Record of purchases. – Distributors and retailers covered by this Any other implied warranty shall endure not less than sixty (60)
Article shall keep a record of all purchases covered by a warranty days nor more than one (1) year following the sale of new
or guarantee for such period of time corresponding to the lifetime consumer products.
of the product's respective warranties or guarantees. f) Breach of warranties. – 1) In case of breach of express warranty,
6) Contrary stipulations – null and void. – All covenants, stipulations the consumer may elect to have the goods repaired or its purchase
or agreements contrary to the provisions of this Article shall be price refunded by the warrantor. In case the repair of the product in
without legal effect. whole or in part is elected, the warranty work must be made to
conform to the express warranty within thirty (30) days by either
c) Designation of warranties. – A written warranty shall clearly and the warrantor or his representative. The thirty-day period, however,
conspicuously designate such warranty as: may be extended by conditions which are beyond the control of the
warrantor or his representative. In case the refund of the purchase
1) "Full warranty" if the written warranty meets the minimum price is elected, the amount directly attributable to the use of the
requirements set forth in paragraph (d); or consumer prior to the discovery of the non-conformity shall be
2) "Limited warranty" if the written warranty does not meet such deducted.
minimum requirements. 2) In case of breach of implied warranty, the consumer may retain
d) Minimum standards for warranties. – For the warrantor of a in the goods and recover damages, or reject the goods, cancel and
consumer product to meet the minimum standards for warranty, he contract and recover from the seller so much of the purchase price
shall: as has been paid, including damages.

1) remedy such consumer product within a reasonable time and Article 69. Warranties in Supply of Services. –
without charge in case of a defect, malfunction or failure to a) In every contract for the supply of services to a consumer made
conform to such written warranty; by a seller in the course of a business, there is an implied warranty
2) permit the consumer to elect whether to ask for a refund or that the service will be rendered with due care and skill and that
replacement without charge of such product or part, as the case any material supplied in connection with such services will be
may be, where after reasonable number of attempts to remedy the reasonably fit for the purpose for which it is supplied.
defect or malfunction, the product continues to have the defect or b) Where a seller supplies consumer services in the course of a
to malfunction. business and the consumer, expressly or by implication, makes
known to the seller the particular purpose for which the services not more than Five thousand pesos (P5,000.00) or an imprisonment
are required, there is an implied warranty that the services of not less than three (3) months but not more than two (2) years
supplied under the contract and any material supplied in or both upon the discretion of the court. A second conviction under
connection therewith will be reasonably fit for that purpose or are this paragraph shall also carry with it the penalty or revocation of
of such a nature or quality that they might reasonably be expected his business permit and license.
to achieve that result, unless the circumstances show that the
consumer does not rely or that it is unreasonable for him to rely, on b) Any person, natural or juridical, committing any of the illegal
the seller's skill or judgment. acts provided for in Chapter III, except with respect to Article 67,
shall be liable for a fine of not less than One thousand pesos
Article 70. Professional Services. – The provision of this Act on (P1,000.00) but not more than Fifty thousand pesos (P50,000.00) or
warranty shall not apply to professional services of certified public imprisonment for a period of at least one (1) year but not more
accountants, architects, engineers, lawyers, veterinarians, than five (5) years, or both, at the discretion of the court.
optometrists, pharmacists, nurses, nutritionists, dietitians, physical
therapists, salesmen, medical and dental practitioners and other The imposition of any of the penalties herein provided is without
professionals engaged in their respective professional endeavors. prejudice to any liability incurred under the warranty or guarantee.

Article 71. Guaranty of Service Firms. – Service firms shall CHAPTER IV

guarantee workmanship and replacement of spare parts for a LABELING AND FAIR PACKAGING
period not less than ninety (90) days which shall be indicated in Article 74. Declaration of Policy. – The State shall enforce
the pertinent invoices. compulsory labeling, and fair packaging to enable the consumer to
Article 72. Prohibited Acts. – The following acts are prohibited: obtain accurate information as to the nature, quality and quantity
of the contents of consumer products and to facilitate his
a) refusal without any valid legal cause by the total manufacturer comparison of the value of such products.
or any person obligated under the warranty or guarantee to honor
a warranty or guarantee issued; Article 75. Implementing Agency. – The Department of Trade
and Industry shall enforce the provisions of this Chapter and its
b) unreasonable delay by the local manufacturer or any person implementing rules and regulations: Provided, That with respect to
obligated under the warranty or guarantee in honoring the food, drugs, cosmetics, devices and hazardous substances, it shall
warranty; be enforced by the concerned department.

c) removal by any person of a product's warranty card for the Article 76. Prohibited Acts on Labeling and Packaging. – It
purpose of evading said warranty obligation; shall be unlawful for any person, either as principal or agent,
engaged in the labeling or packaging of any consumer product, to
d) any false representation in an advertisement as to the existence display or distribute or to cause to be displayed or distributed in
of a warranty or guarantee. commerce any consumer product whose package or label does not
Article 73. Penalties. – conform to the provisions of this Chapter.

a) Any person who shall violate the provisions of Article 67 shall be The prohibition in this Chapter shall not apply to persons engaged
subject to fine of not less than Five hundred pesos (P500.00) but in the business of wholesale or retail distributors of consumer
products except to the extent that such persons:
a) are engaged in the packaging or labeling of such products; e) process of manufacture used if necessary.

b) prescribe or specify by any means the manner in which such Any word, statement or other information required by or under
products are packaged or labeled; or authority of the preceding paragraph shall appear on the label or
labeling with such conspicuousness as compared with other words,
c) having knowledge, refuse to disclose the source of the statements, designs or devices therein, and in such terms as to
mislabeled or mispackaged products. render it likely to be read and understood by the ordinary individual
Article 77. Minimum Labeling Requirements for Consumer under customary conditions of purchase or use.
Products. – All consumer products domestically sold whether The above requirements shall form an integral part of the label
manufactured locally or imported shall indicate the following in without danger of being erased or detached under ordinary
their respective labels of packaging: handling of the product.
a) its correct and registered trade name or brand name; Article 78. Philippine Product Standard Mark. – The label may
b) its duly registered trademark; contain the Philippine Product Standard Mark if it is certified to
have passed the consumer product standard prescribed by the
c) its duly registered business name; concerned department.

d) the address of the manufacturer, importer, repacker of the Article 79. Authority of the Concerned Department to
consumer product in the Philippines; Provide for Additional Labeling and Packaging
Requirements. – Whenever the concerned department
e) its general make or active ingredients; determines that regulations containing requirements other than
f) the net quality of contents, in terms of weight, measure or those prescribed in Article 77 hereof are necessary to prevent the
numerical count rounded of to at least the nearest tenths in the deception of the consumer or to facilitate value comparisons as to
metric system; any consumer product, it may issue such rules and regulations to:

g) country of manufacture, if imported; and a) establish and define standards for characterization of the size of
a package enclosing any consumer product which may be used to
h) if a consumer product is manufactured, refilled or repacked supplement the label statement of net quality, of contents of
under license from a principal, the label shall so state the fact. packages containing such products but this clause shall not be
construed as authorizing any limitation on the size, shape, weight,
The following may be required by the concerned department in dimensions, or number of packages which may be used to enclose
accordance with the rules and regulations they will promulgate any product;
under authority of this Act:
b) regulate the placement upon any package containing any
a) whether it is flammable or inflammable; product or upon any label affixed to such product of any printed
b) directions for use, if necessary; matter stating or representing by implication that such product is
offered for retail at a price lower than the ordinary and customary
c) warning of toxicity; retail price or that a price advantage is accorded to purchases

d) wattage, voltage or amperes; or

thereof by reason of the size of the package or the quantity of its Article 81. Price Tag Requirement. – It shall be unlawful to offer
contents; any consumer product for retail sale to the public without an
appropriate price tag, label or marking publicly displayed to
c) prevent the nonfunctional slack-fill of packages containing indicate the price of each article and said products shall not be sold
consumer products. at a price higher than that stated therein and without
For purposes of paragraph (c) of this Article, a package shall be discrimination to all buyers: Provided, That lumber sold, displayed
deemed to be nonfunctionally slack-filled if it is filled to or offered for sale to the public shall be tagged or labeled by
substantially less than its capacity for reasons other than (1) indicating thereon the price and the corresponding official name of
protection of the contents of such package, (2) the requirements of the wood: Provided, further, That if consumer products for sale are
machines used for enclosing the contents in such package, or (3) too small or the nature of which makes it impractical to place a
inherent characteristics of package materials or construction being price tag thereon price list placed at the nearest point where the
used. products are displayed indicating the retail price of the same may
suffice.
Article 80. Special Packaging of Consumer Products for the
Protection of Children. – The concerned department may Article 82. Manner of Placing Price Tags. – Price tags, labels or
establish standards for the special packaging of any consumer markings must be written clearly, indicating the price of the
product if it finds that: consumer product per unit in pesos and centavos.

a) the degree or nature of the hazard to children in the availability Article 83. Regulations for Price Tag Placement. – The
of such product, by reason of its packaging, is such that special concerned department shall prescribe rules and regulations for the
packaging is required to protect children from serious personal visible placement of price tags for specific consumer products and
injury or serious illness resulting from handling and use of such services. There shall be no erasures or alterations of any sort of
product; and price tags, labels or markings.

b) the special packaging to be required by such standard is Article 84. Additional Labeling Requirements for Food. – The
technically feasible, practicable and appropriate for such product. following additional labeling requirements shall be imposed by the
In establishing a standard under this Article, the concerned concerned department for food:
department shall consider: a) expiry or expiration date, where applicable;
1) the reasonableness of such standard; b) whether the consumer product is semi-processed, fully
2) available scientific, medical and engineering data concerning processed, ready-to-cook, ready-to-eat, prepared food or just plain
special packaging and concerning accidental, ingestions, illnesses mixture;
and injuries caused by consumer product; c) nutritive value, if any;
3) the manufacturing practices of industries affected by this Article; d) whether the ingredients use are natural or synthetic, as the case
and may be;
4) the nature and use of consumer products. e) such other labeling requirements as the concerned department
may deem necessary and reasonable.
Article 85. Mislabeled Food. – A food shall also be deemed regulations specify, a statement that it falls below such standard;
mislabeled: or

a) if its labeling or advertising is false or misleading in any way; 2) a food for which a standard or standards or fill of container have
been prescribed by regulations as provided by this Act and it falls
b) if it is offered for sale under the name of another food; below the standard of fill of container applicable thereto, unless its
c) if it is an imitation of another food, unless its label bears in type label bears, in such manner and form as such regulations specify, a
of uniform size and prominence, the word "imitation" and, statement that it falls below such standard;
immediately thereafter, the name of the food imitated; i) if it is not subject to the provisions of paragraph (g) of this Article
d) its containers is so made, formed, or filled as to be misleading; unless its label bears:

e) if in package form unless it bears a label conforming to the 1) the common or usual name of the food, if there be any; and
requirements of this Act: Provided, That reasonable variation on the 2) in case it is manufactured or processed from two or more
requirements of labeling shall be permitted and exemptions as to ingredients, the common or usual name of such ingredient; except
small packages shall be established by the regulations prescribed the spices, flavorings and colorings other than those sold as such,
by the concerned department of health; may be designated as spices, flavorings and colorings without
f) if any word, statement or other information required by or under naming each: Provided, That to the extent that compliance with the
authority of this Act to appear on the principal display panel of the requirement of clause (2) of this paragraph is impracticable or
label or labeling is not prominently placed thereon with such results in deception or unfair competition, exemptions shall be
conspicuousness as compared with other words, statements, established by regulations promulgated by the concerned
designs or devices in the labeling and in such terms as to render it department of health;
likely to be read and understood by the ordinary individual under j) if it purports to be or is represented for special dietary uses,
customary conditions of purchase and use; unless its label bears such information concerning its vitamin or
g) if it purports to be or is represented as a food for which a mineral or other dietary properties as the concerned department
definition or standard of identity has been prescribed unless: determines to be, or by regulations prescribed as necessary in
order fully to inform purchasers as its value for such uses;
1) it conforms to such definition and standard; and
k) if it bears or contains any artificial flavoring, artificial coloring, or
2) its labels bears the name of the food specified in the definition chemical preservative, unless it bears labeling, stating that fact:
or standards, and insofar as may be required by such regulations, Provided, That to the extent that compliance with the requirements
the common names of optional ingredients other than spices, of this paragraph is impracticable, exemptions shall be established
flavoring and coloring, present in such food; by regulations promulgated by the concerned department. The
provisions of this paragraph or paragraphs (g) and (i) with respect
h) if it purports to be or represented as: to the artificial coloring shall not apply in the case of butter, cheese
1) a food for which a standard of quality has been prescribed by or ice cream.
regulations as provided in this Act and its quality fall below such Article 86. Labeling of Drugs. – The Generics Act shall apply in
standard, unless its label bears in such manner and form as such the labeling of drugs.
Article 87. Additional Labeling Requirements for b) if its in package form unless it bears a label conforming to the
Cosmetics. – The following additional requirements may be requirements of this Act or the regulations promulgated therefor:
required for cosmetics: Provided, that reasonable variations shall be permitted and
exemptions as to small packages shall be established by
a) expiry or expiration date; regulations prescribed by the concerned department.
b) whether or not it may be an irritant; c) if any word, statement or other information required by or under
c) precautions or contra-indications; and authority of this Act to appear on the principal display panel of the
label or labeling is not prominently placed thereon with such
d) such other labeling requirements as the concerned department conspicuousness as compared with other words, statements,
may deem necessary and reasonable. designs or devices in the labeling and in such terms as to render it
likely to be read and understood by the ordinary individual under
Article 88. Special Labeling Requirements for Cosmetics. – A customary conditions of purchase and use;
cosmetic shall be deemed mislabeled:
d) if it is for use by man and contains any quantity of the narcotic
a) if its labeling or advertising is false or misleading in any way; or hypnotic substance alpha-eucaine, barbituric acid, beta-eucaine,
b) if in package form unless it bears a label conforming to the bromal, cannabis, carbromal, chloral, coca, cocaine, codeine,
requirements of labeling provided for in this Act or under existing heroin, marijuana, morphine, opium, paraldehyde, peyote or
regulations: Provided, That reasonable variations shall be sulfonmethane, or any chemical derivative of such substance,
permitted, and exemptions as to small packages shall be which derivative has been designated by the concerned
established by regulations prescribed by the concerned department after investigation, and by regulations as habit
department; forming; unless its label bears the name and quantity or proportion
of such substance or derivative and in juxtaposition therewith the
c) if any word, statement or other information required by or under statement "Warning-May be habit forming";
authority of this Act to appear on the label or labeling is not
prominently placed thereon with such conspicuousness, as e) its labeling does not bear:
compared with other words, statements, designs or devices in the 1) adequate directions for use; and
labeling, and in such terms as to render it likely to be read and
understood by the ordinary individual under customary conditions 2) such adequate warning against use in those pathological
of purchase and use; conditions or by children where its use may be dangerous to
health, or against unsafe dosage or methods or duration of
d) if its container is so made, formed or filled as to be misleading; administration or application, in such manner and form, as are
or necessary for the protection of users: Provided, That where any
e) if its label does not state the common or usual name of its requirement of clause (1) of this paragraph, as applied to any drug
ingredients. or device, is not necessary for the protection of the public health,
the concerned department may promulgate regulations exempting
Article 89. Mislabeled Drugs and Devices. – A drug or device such drug or device from such requirement;
shall be deemed to be mislabeled:

a) if its labeling is false or misleading in any way;

f) if it purports to be a drug the name of which is recognized in an devices are not adulterated or mislabeled under the provisions of
official compendium, unless it is packaged and labeled as this Act and other applicable laws upon approval from such
prescribed therein: Provided, That the method of packing may be processing, labeling and repacking establishments.
modified with the consent of the concerned department;
Article 91. Mislabeled Hazardous Substances. – Hazardous
g) if it has been found by the concerned department to be a drug substances shall be deemed mislabeled when:
liable to deterioration, unless it is packaged in such form and
manner, and its label bears a statement of such precautions, as the a) having been intended or packaged in a form suitable for use in
concerned department, shall by regulations, require as necessary households, especially for children, the packaging or labeling of
for the protection of the public health; which is in violation of the special packaging regulations issued by
the concerned department;
h) 1) if it is a drug and its container is so made, formed or filled as
to be misleading; or b) such substance fails to bear a label;

2) if it is an imitation of another drug; or 1) which states conspicuously:

3) if it is dangerous to health when used in the dosage, or with the (i) the name and the place of business of the manufacturer, packer,
frequency of duration prescribed, recommended or suggested in distributor or seller;
the labeling thereof; (ii) the common or usual name or the chemical name, if there be
j) if it is, purports to be or is represented as a drug composed no common or usual name, of the hazardous substance or of each
wholly or partly of insulin or of any kind of penicillin, streptomycin, component which contributes substantially to the harmfulness of
chlortetracycline, chloramphenicol, bacitracin, or any other the substance, unless the concerned department by regulation
antibiotic drug, or any derivative thereof, unless: permits or requires the use of the recognized generic name;

1) it is from a batch with respect to which a certificate of release (iii) the signal word "danger" on substances which are extremely
has been issued pursuant to regulations of the concerned flammable, corrosive or highly toxic;
department; and (iv) the signal word "warning" or "caution" with a bright red or
2) such certificate of release is in effect with respect to such drug: orange color with a black symbol on all other hazardous
Provided, That this paragraph shall not apply to any drug or class substances;
of drugs exempted by regulations promulgated under Authority of (v) a clear statement as to the possible injury it may cause if used
this Act. improperly;
Article 90. Regulation-making Exemptions. – The concerned (vi) precautionary measures describing the action to be followed or
department may promulgate regulations exempting from any avoided;
labeling requirements of this Act food, cosmetics, drugs or devices
which are, in accordance with the practice of trade, to be (vii) instructions when necessary or appropriate for first-aid
processed, labeled or repacked in substantial quantities at treatment;
establishments other than those where originally processed,
labeled or packed on condition that such food, cosmetics, drugs or (viii) the word" poison" for any hazardous substance which is
defined as highly toxic;
(ix) instructions for handling and storage of packages which require 1) it is in a package labeled in accordance with the specifications of
special care in handling and storage; and the foreign purchaser;

(x) the statement "keep out of the reach of children", or its 2) it is labeled in accordance with the laws of the foreign country;
practical equivalent, if the article is not intended for use by
children and is not a banned hazardous substance, with adequate 3) it is labeled on the outside of the shipping package to show that
directions for the protection of children from the hazard involved. it is intended for export; and
The aforementioned signal words, affirmative statements, 4) it is so exported,
description of precautionary measures, necessary instructions or
other words or statements may be in English language or its b) any hazardous substance condemned under this Article shall
equivalent in Filipino; and after entry of order of condemnation be disposed of by destruction
or sale as the concerned department may direct, and the proceeds
2) on which any statement required under clause 1) of this thereof, if sold, less the legal cost and charges, shall be paid into
paragraph is located prominently in bright red and orange color the treasury of the Philippines; but such hazardous substance shall
with a black symbol in contrast typography, layout or color with the not be sold under any order which is contrary to the provisions of
other printed matters on the label. this Act; Provided, That, after entry of the order and upon the
Article 92. Exemptions. – If the concerned department finds that payment of the costs of such proceedings and the execution of a
for good or sufficient reasons, full compliance with the labeling good and sufficient bond conditioned that such hazardous
requirements otherwise applicable under this Act is impracticable substance shall not be sold or disposed of contrary to the
or is not necessary for the adequate protection of public health and provisions of this Act, the concerned department may direct that
safety, it shall promulgate regulations exempting such substances such hazardous substance be delivered to or retained by the owner
from these requirements to the extent it deems consistent with the thereof for destruction or for alteration to comply with the
objective of adequately safeguarding public health and safety, and provisions of this Act under the supervision of an officer or
any hazardous substance which does not bear a label in employee duly designated by the concerned department. The
accordance with such regulations shall be deemed mislabeled expenses for such supervision shall be paid by the person
hazardous substance. obtaining release of the hazardous substance under bond.

Article 93. Grounds for Seizure and Condemnation of c) all expenses in connection with the destruction provided for in
Mislabeled Hazardous Substances. – paragraphs (a) and (b) of this Article and all expenses in
connection with the storage and labor with respect to such
a) Any mislabeled hazardous substance when introduced into hazardous substance shall be paid by the owner or consignee, and
commerce or while held for sale shall be liable to be proceeded default in such payment shall constitute a lien against any
against and condemned upon order of the concerned department importation by such owner or consignee.
in accordance with existing procedure for seizure and
condemnation of articles in commerce: Provided, That this Article Article 94. Labeling Requirements of Cigarettes. – All
shall not apply to a hazardous substance intended for export to any cigarettes for sale or distribution within the country shall be
foreign country if: contained in a package which shall bear the following statement or
its equivalent in Filipino: "Warning" Cigarette Smoking is Dangerous
to Your Health". Such statement shall be located in conspicuous
place on every cigarette package and shall appear in conspicuous making up, presentation or packing of their products, as well as for
and legible type in contrast by typography, layout or color with the insufficient or inadequate information on the use and hazards
other printed matter on the package. Any advertisement of thereof.
cigarette shall contain the name warning as indicated in the label.
A product is defective when it does not offer the safety rightfully
Article 95. Penalties. – expected of it, taking relevant circumstances into consideration,
including but not limited to:
a) Any person who shall violate the provisions of Title III, Chapter IV
of this Act, or its implementing rules and regulations, except a) presentation of product;
Articles 81 to 83 of the same Chapter, shall be subject to a fine of
not less than Five hundred pesos (P500.00) but not more than b) use and hazards reasonably expected of it;
Twenty thousand pesos (P20,000.00) or imprisonment of not less c) the time it was put into circulation.
than three (3) months but not more than two (2) years or both, at
the discretion of the court: Provided, That, if the consumer product A product is not considered defective because another better
is one which is not a food, cosmetic, drug, device or hazardous quality product has been placed in the market.
substance, the penalty shall be a fine of not less than Two hundred
pesos (P200.00) but not more than Five thousand pesos The manufacturer, builder, producer or importer shall not be held
(P5,000.00) or imprisonment of not less than one (1) month but not liable when it evidences:
more than one (1) year or both, at the discretion of the court. a) that it did not place the product on the market;
b) Any person who violates the provisions of Article 81 to 83 for the b) that although it did place the product on the market such
first time shall be subject to a fine of not less than Two hundred product has no defect;
pesos (P200.00) but not more than Five thousand pesos
(P5,000.00) or by imprisonment of not less than one (1) month but c) that the consumer or a third party is solely at fault.
not more than six (6) months or both, at the discretion of the court.
A second conviction under this paragraph shall also carry with it Article 98. Liability of Tradesman or Seller. – The
the penalty of revocation of business permit and license. tradesman/seller is likewise liable, pursuant to the preceding article
when;
CHAPTER V
LIABILITY FOR PRODUCT AND SERVICE a) it is not possible to identify the manufacturer, builder, producer
or importer.
Article 96. Implementing Agency. – The Department of Trade
and Industry shall enforce the provisions of this Chapter and its b) the product is supplied, without clear identification of the
implementing rules and regulations. manufacturer, producer, builder or importer;

Article 97. Liability for the Defective Products. – Any Filipino c) he does not adequately preserve perishable goods. The party
or foreign manufacturer, producer, and any importer, shall be liable making payment to the damaged party may exercise the right to
for redress, independently of fault, for damages caused to recover a part of the whole of the payment made against the other
consumers by defects resulting from design, manufacture, responsible parties, in accordance with their part or responsibility
construction, assembly and erection, formulas and handling and in the cause of the damage effected.
Article 99. Liability for Defective Services. – The service b) the immediate reimbursement of the amount paid, with
supplier is liable for redress, independently of fault, for damages monetary updating, without prejudice to any losses and damages;
caused to consumers by defects relating to the rendering of the
services, as well as for insufficient or inadequate information on c) a proportionate price reduction.
the fruition and hazards thereof. The parties may agree to reduce or increase the term specified in
The service is defective when it does not provide the safety the the immediately preceding paragraph; but such shall not be less
consumer may rightfully expect of it, taking the relevant than seven (7) nor more than one hundred and eighty (180) days.
circumstances into consideration, including but not limited to: The consumer may make immediate use of the alternatives under
a) the manner in which it is provided; the second paragraph of this Article when by virtue of the extent of
the imperfection, the replacement of the imperfect parts may
b) the result of hazards which may reasonably be expected of it; jeopardize the product quality or characteristics, thus decreasing
its value.
c) the time when it was provided.
If the consumer opts for the alternative under sub-paragraph (a) of
A service is not considered defective because of the use or the second paragraph of this Article, and replacement of the
introduction of new techniques. product is not possible, it may be replaced by another of a different
The supplier of the services shall not be held liable when it is kind, mark or model: Provided, That any difference in price may
proven: result thereof shall be supplemented or reimbursed by the party
which caused the damage, without prejudice to the provisions of
a) that there is no defect in the service rendered; the second, third and fourth paragraphs of this Article.

b) that the consumer or third party is solely at fault. Article 101. Liability for Product Quantity Imperfection. –
Suppliers are jointly liable for imperfections in the quantity of the
Article 100. Liability for Product and Service Imperfection. – product when, in due regard for variations inherent thereto, their
The suppliers of durable or nondurable consumer products are net content is less than that indicated on the container, packaging,
jointly liable for imperfections in quality that render the products labeling or advertisement, the consumer having powers to
unfit or inadequate for consumption for which they are designed or demand, alternatively, at his own option:
decrease their value, and for those resulting from inconsistency
with the information provided on the container, packaging, labels a) the proportionate price
or publicity messages/advertisement, with due regard to the
variations resulting from their nature, the consumer being able to b) the supplementing of weight or measure differential;
demand replacement to the imperfect parts. c) the replacement of the product by another of the same kind,
If the imperfection is not corrected within thirty (30) days, the mark or model, without said imperfections;
consumer may alternatively demand at his option: d) the immediate reimbursement of the amount paid, with
a) the replacement of the product by another of the same kind, in a monetary updating without prejudice to losses and damages if any.
perfect state of use; The provisions of the fifth paragraph of Article 99 shall apply to this
Article.
The immediate supplier shall be liable if the instrument used for express instrument or contractual exoneration of the supplier being
weighing or measuring is not gauged in accordance with official forbidden.
standards.
Article 106. Prohibition in Contractual Stipulation. – The
Article 102. Liability for Service Quality Imperfection. – The stipulation in a contract of a clause preventing, exonerating or
service supplier is liable for any quality imperfections that render reducing the obligation to indemnify for damages effected, as
the services improper for consumption or decrease their value, and provided for in this and in the preceding Articles, is hereby
for those resulting from inconsistency with the information prohibited, if there is more than one person responsible for the
contained in the offer or advertisement, the consumer being cause of the damage, they shall be jointly liable for the redress
entitled to demand alternatively at his option: established in the pertinent provisions of this Act. However, if the
damage is caused by a component or part incorporated in the
a) the performance of the services, without any additional cost and product or service, its manufacturer, builder or importer and the
when applicable; person who incorporated the component or part are jointly liable.
b) the immediate reimbursement of the amount paid, with Article 107. Penalties. – Any person who shall violate any
monetary updating without prejudice to losses and damages, if provision of this Chapter or its implementing rules and regulations
any; with respect to any consumer product which is not food, cosmetic,
c) a proportionate price reduction. or hazardous substance shall upon conviction, be subject to a fine
of not less than Five thousand pesos (P5,000.00) and by
Reperformance of services may be entrusted to duly qualified third imprisonment of not more than one (1) year or both upon the
parties, at the supplier's risk and cost. discretion of the court.

Improper services are those which prove to be inadequate for In case of juridical persons, the penalty shall be imposed upon its
purposes reasonably expected of them and those that fail to meet president, manager or head. If the offender is an alien, he shall,
the provisions of this Act regulating service rendering. after payment of fine and service of sentence, be deported without
further deportation proceedings.
Article 103. Repair Service Obligation. – When services are
provided for the repair of any product, the supplier shall be CHAPTER VI
considered implicitly bound to use adequate, new, original ADVERTISING AND SALES PROMOTION
replacement parts, or those that maintain the manufacturer's
technical specifications unless, otherwise authorized, as regards to Article 108. Declaration of Policy. – The State shall protect the
the latter by the consumer. consumer from misleading advertisements and fraudulent sales
promotion practices.
Article 104. Ignorance of Quality Imperfection. – The
supplier's ignorance of the quality imperfections due to inadequacy Article 109. Implementing Agency. – The Department of Trade
of the products and services does not exempt him from any and Industry shall enforce the provisions of this Chapter and its
liability. implementing rules and regulations: Provided, That with respect to
food, drugs, cosmetics, devices and hazardous substances, it shall
Article 105. Legal Guarantee of Adequacy. – The legal be enforced by the Department of Health.
guarantee of product or service adequacy does not require an
FALSE, DECEPTIVE AND MISLEADING ADVERTISEMENT
Article 110. False, Deceptive or Misleading Advertisement. – may be dispensed with in case of circumstances beyond the
It shall be unlawful for any person to disseminate or to cause the seller's control.
dissemination of any false, deceptive or misleading advertisement
by Philippine mail or in commerce by print, radio, television, c) Where the comparison relates to a competitor's price, the
outdoor advertisement or other medium for the purpose of competitor's price shall relate to the consumer products or services
inducing or which is likely to induce directly or indirectly the advertised or sold in the ninety-day period and shall be
purchase of consumer products or services. representative of the prices similar consumer products or services
are sold or advertised in the locality where the price comparison
An advertisement shall be false, deceptive or misleading if it is not was made.
in conformity with the provisions of this Act or if it is misleading in
a material respect. In determining whether any advertisement is Article 112. Special Advertising Requirements for Food,
false, deceptive or misleading, there shall be taken into account, Drug, Cosmetic, Device, or Hazardous Substance. –
among other things, not only representations made or any a) No claim in the advertisement may be made which is not
combination thereof, but also the extent to which the contained in the label or approved by the concerned department.
advertisement fails to reveal material facts in the light of such
representations, or materials with respect to consequences which b) No person shall advertise any food, drug, cosmetics, device, or
may result from the use or application of consumer products or hazardous substance in manner that is false, misleading or
services to which the advertisement relates under the conditions deceptive or is likely to create an erroneous impression regarding
prescribed in said advertisement, or under such conditions as are its character, value, quantity, composition, merit, or safety.
customary or usual.
c) Where a standard has been prescribed for a food, drug,
Article 111. Price Comparisons. – Comparative price advertising cosmetic, or device, no person shall advertise any article or
by sellers of consumer products or services shall conform to the substance in such a manner that it is likely to be mistaken for such
following conditions: product, unless the article complies with the prescribed standard or
regulation.
a) Where the comparison relates to a former price of the seller, the
item compared shall either have been sold at that price within the d) No person shall, in the advertisement of any food, drug,
ninety (90) days immediately preceding the date of the cosmetic, device, or hazardous substance, make use of any
advertisement, or it shall have been offered for sale for at least reference to any laboratory report of analysis required to be
four (4) weeks during such ninety-day period. If the comparison furnished to the concerned department, unless such laboratory
does not relate to an item sold or offered for sale during the ninety- report is duly approved by such department.
day period, the date, time or seasonal period of such sale or offer
shall be disclosed in the advertisement. e) Any businessman who is doubtful as to whether his
advertisement relative to food, drug, cosmetic, device, or
b) Where the comparison relates to a seller's future price, the hazardous substance will violate or does not conform with this Act
future price shall take effect on the date disclosed in the or the concerned department's pertinent rules and regulations may
advertisement or within ninety (90) days after the price apply to the same for consideration and opinion on such matter
comparison is stated in the advertisement. The stated future price before such advertisement is disseminated to the public. In this
shall be maintained by the seller for a period of at least four (4) case, the concerned department shall give its opinion and notify
weeks after its effective date: Provided, That compliance thereof
the applicant of its action within thirty (30) days from the date of from filing of the application, the same shall be deemed approved
application; otherwise, the application shall be deemed approved. and the promotion campaign or activity may be conducted:
Provided, That any sales promotion campaign using medical
f) No person shall advertise any food, drug, cosmetic, device, or prescriptions or any part thereof or attachment thereto for raffles
hazardous substance unless such product is duly registered and or a promise of reward shall not be allowed, nor a permit be issued
approved by the concerned department for use in any thereof.
advertisement.
Article 117. Suspension of Publication or Dissemination of
Article 113. Credit Advertising. – No advertisement to aid, Information. – The concerned department may, after due notice
promote, or assist, directly or indirectly, any extension of consumer and hearing, suspend the publication and dissemination of any
credit may: information accompanying a sales promotion campaign, if it finds
a) state that a specific periodic consumer credit amount or the campaign to be in violation of the provisions of this Chapter or
installment amount can be arranged, unless the creditor usually its implementing rules and regulations.
and customarily arranges credit payment or installments for that Article 118. Conduct of Sales Promotion. – A sales promotion
period and in that amount; and which is intended for broad consumer participation and utilizes
b) state that a specified down payment is required in any extension mass media shall indicate the duration, commencement and
of consumer credit, unless the creditor usually or customarily termination of the promotion, the deadline for submission of
arranges down payment in that amount. entries and the governing criteria or procedure to be followed
therein.
Article 114. Advertising of Open-end Credit Plan. – In case of
an open-end credit plan, the rate of interest and other material Article 119. Packaging of Products Under Promotion. – The
features of the plan shall be disclosed in the advertisement. packaging of the products covered by the sales promotion shall not
be tampered, neither shall any change in the product's package be
Article 115. Special Claims. – Any advertisement which makes affected without the authority of the sponsoring agency or the
special claims shall: owner or manufacturer of the product.

a) substantiate such claims; and Article 120. Change in Starting and Termination Dates of
Promotion. – The concerned department shall be advised of any
b) properly use research result, scientific terms, statistics or delay of starting dates or termination dates and details of any
quotations. change in the conduct of a sales promotion. Any change in the
PROMOTION OF SALES OF CONSUMER PRODUCTS AND termination dates shall be published in a newspaper of general
SERVICES circulation before the expiration of the original schedule or the
termination date, whichever comes first.
Article 116. Permit to Conduct Promotion. – No person shall
conduct any sales campaigns, including beauty contest, national in Article 121. Determination of Winners. – The winners in any
character, sponsored and promoted by manufacturing enterprises sales promotion shall be determined at a definite time and place
without first securing a permit from the concerned department at and shall be verified by a representative of the concerned
least thirty (30) calendar days prior to the commencement thereof. department and the sponsor. Immediately after the winners are
Unless an objection or denial is received within fifteen (15) days selected or determined, a list with their addresses and
corresponding prizes shall be submitted to the concerned imprisonment of not less than one (1) month but not more than (6)
department. All winners shall be announced or published in the months or both upon the discretion of the court.
same manner that the sales promotion was announced or
published: Provided, That publication in a newspaper of general b) Any violation of the provisions of Articles 116 to 121 shall, upon
circulation shall be done in a legible manner at least once, if the conviction, subject the offenders to a fine of not less than Two
sales promotion is national in scope: Provided, further, That such hundred pesos (P200.00) but not more than Six hundred pesos
announcement and publication shall be done not later than two (2) (P600.00) or an imprisonment of not less than one (1) month but
weeks after the determination of winners. In all cases where the not more than six (6) months or both upon the discretion of the
amount of the price is Five hundred pesos (P500.00) or more, the court. If the violation was committed by a juridical person, the
winners shall also be notified in writing by registered mail or any manager, representative, director, agent or employee of said
communication wherein proof of notice or service can be verified. juridical person responsible for the act shall be deported after
service of sentence and payment of the fine without need for
Article 122. Injunctive Relief . – further deportation proceedings.

a) Whenever the concerned department has the reason to believe Article 124. Exemption from Penalties. – No publisher, radio
(1) that any person, partnership or corporation is engaged in or is broadcast, television licensee or medium for the dissemination of
about to engage in the dissemination or the causing of advertising shall be liable, under this Chapter, by reason of
dissemination of any advertisement in violation of Articles 110 to dissemination by him of any false advertisement unless he refuses,
115, and (2) that the enjoining thereof would be to the interest of on the request of appropriate authorities, to furnish the name and
the public, the concerned department shall direct the filing of a post office address of the manufacturer, packer, distributor seller
complaint in the court of competent jurisdiction, to enjoin the or advertising agency. This exemption shall not apply however, to
dissemination or the causing of the dissemination of such the manufacturer, packer, distributor or seller of the consumer
advertisement. Upon proper showing, a temporary injunction or product or service and the advertising agency responsible for the
restraining order shall be granted without bond. Any such false and misleading advertising.
complaint shall be filed in the locality in which the person,
partnership or corporation resides or transacts business. CHAPTER VII
REGULATION OF REPAIR AND SERVICE FIRMS
b) Any person who may suffer loss, damage or injury due to a false,
misleading or deceptive advertisement as defined in Article 4 may Article 125. Declaration of Policy. – The State shall cause the
file a complaint with injunction in his own name with any court of accreditation of repair and service firms or establishments and
competent jurisdiction to recover damages, cost of suit and their technical personnel in order to protect the interest of the
reasonable attorney's fees. consumers availing of their services.

Article 123. Penalties. – Article 126. Implementing Agency. – The Department of Trade
and Industry, hereby referred to as the Department, shall enforce
a) any person, association, partnership or corporation who shall the provisions of this Chapter.
violate any of the provisions of Articles 110 to 115 shall, upon
conviction, be subject to a fine of not less than Five Hundred Pesos Article 127. Minimum Requirements for Accreditation. – The
(P500.00) but not more than Five thousand pesos (P5,000.00) or an following shall be the minimum requirements for accreditation or
repair and service firms:
a) the duly registered business name, firm name or style of the determined as the sum of all charges, payable directly or indirectly
firm; by the person to whom the credit is extended and imposed directly
or indirectly by the creditor as an accident to the extension of
b) date of issue and effectivity of the certificate of accreditation; credit, including any of the following type of charges which are
c) number and skills of technical personnel; and applicable:

d) required license for the repair or servicing of any consumer a) interest or time price differential and any amount payable under
product as required by special laws. point or other system of additional charges;

Article 128. Accreditation of Repair and Service Firm. – No b) collection fees which include finder's fees or similar charges;
person shall operate a repair and service firm or act as technical c) credit investigation fees;
personnel therein without first being accredited by the
Department. d) notarial fees, if any;

Article 129. Certification of Accreditation. – Upon compliance e) premium or other charges for any guarantee or insurance
with the requirements for accreditation, the Department shall issue protecting the creditor against the obligor's default or other credit
the corresponding certificate of accreditation. A separate certificate loss. The implementing agency shall determine what items shall be
shall be required for each branch of an enterprise located in areas exempted from the computation of the finance charges.
outside of the main office. However, with respect to repair and
service centers of factory authorized representatives of franchised Article 133. Determination of Simple Annual Rate. – The
dealers, such centers may display a certified true copy of the simple annual rate applicable to any extension of consumer credit
certificate of accreditation of the parent company. shall be determined in accordance with the rules and regulations
promulgated by the implementing agency.
Article 130. Suspension, Revocation or Cancellation of
Certification of Accreditation. – Any certificate of accreditation Article 134. Delinquency Charges. – With respect to a
may be suspended, revoked or cancelled by the Department, for consumer credit transaction other than one pursuant to an open-
cause, after due notice and hearing. end credit plan, the parties may agree to a delinquency charge on
any installment not pain in full on or before the tenth day after its
TITLE IV. - CONSUMER CREDIT TRANSACTION scheduled or deferred due date.

Article 131. Declaration of Policy. – The State shall simplify, Article 135. Deferral Charges. – The parties in a consumer
clarify and modernize the laws governing credit transactions and credit transaction may at any time agree in writing to a deferral of
encourage the development of fair and economically sound all or part of one or more unpaid installments and the creditor may
consumer credit practices. To protect the consumer from lack of make and collect a charge which shall not exceed the rate
awareness of the true cost of credit to the user, the State shall previously disclosed pursuant to the provisions on disclosure. A
assure the full disclosure of the true cost of credit. deferral charge may be collected at the time it is assessed.

Article 132. Determination of Finance Charges. – Except as Article 136. Finance Charge on Refinancing. – The parties may
otherwise provided, the amount of the finance charges in agree on a finance charge in an open-end credit plan based on the
connection with any consumer credit transaction shall be amount financed resulting from the refinancing or consolidation at
a rate not exceeding that permitted by the rules promulgated by If there is more than one obligor, a creditor need not furnish a
the implementing agency. statement of information required under this Act to more than one
of them.
Article 137. Right to Prepay. – The person to whom credit is
extended may prepay in full or in part, at any time without penalty, Article 140. Credit Sale, Required Disclosures. – Any creditor
the unpaid balance of any consumer credit transaction. extending a consumer credit sale other than one pursuant to an
open-end credit plan shall disclose in a statement to the extent
Article 138. Rebate on Prepayment. – Upon prepayment in full applicable, the following information:
of the unpaid balance of a precomputed consumer credit
transaction, refinancing or consolidation, an amount not less than a) the cash price or delivered price of the property or service to be
the unearned portion of the finance charge calculated according to acquired;
this Article shall be rebated to the person to whom credit is
extended. b) the amounts, if any, to be credited as down payment and/or
trade in;
The unearned portion of the precomputed finance charge on
consumer transactions repayable in substantially equal successive c) the total amount to be financed or the difference between the
installments shall be equal to at least that portion of finance amounts set forth under paragraphs (1) and (2);
charge which the sums of the installment balances of the d) the charges, individually itemized, which are paid or to be paid
obligation scheduled to be outstanding after the installment date by such person in connection with the transaction but which are
nearest the date of prepayment bears to the sum of all installment not incident to the extension of credit;
balances originally scheduled to be outstanding under the
obligation. e) the finance charge expressed in terms of pesos and centavos;

For the purpose of determining the installment date nearest the f) the percentage that the finance charge bears to the total amount
date of prepayment when payments are monthly, any payment to be financed expressed as a simple annual rate on the
made on or before the fifteenth day following an installment due outstanding balance of the obligation;
date shall be deemed to have been made as of the installment due
date, and if prepayment occurs after the fifteenth day, it shall be g) the effective interest rate;
deemed to have been made on the succeeding installment due h) the number, amount and due dates or periods of payments
date. This method of calculating rebates may be referred to as the scheduled to repay the indebtedness; and
"rule of 78" or "sum of the digits" method.
i) the default, delinquency or similar charges payable in the event
The implementing agency may promulgate and adopt rules and of late payments.
regulations with respect to other precomputed consumer credit
transactions. Article 141. Required Disclosure on Open-end Credit Plan. –
Before opening any account under an open-end consumer credit
Article 139. General Requirements on Credit Cost plan, the creditor shall disclose, to the extent applicable, the
Disclosure. – Each creditor shall disclose, in accordance with the following information:
regulations of the implementing agency, to each person to whom
consumer credit is extended, the disclosures required by this Act.
a) the conditions under which a finance charge may be imposed, f) the percentage that the finance charge bears to the total amount
including the time period, if any, within which any credit extended to be financed expressed as a simple annual rate on the
may be repaid without incurring a finance charge; outstanding unpaid balance of the obligation;

b) the method of determining the balance upon which a finance g) the default, delinquency or similar charges payable in the event
charge may be imposed; of late payments;

c) the method of determining the amount of the finance charges, h) a description of any security interest held or to be held or to be
including any minimum or fixed amount imposed as a finance retained or acquired by the creditor in connection with the
charge; extension of credit and a clear identification of the property to
which the security interest relates.
d) where one or more periodic rates may be used to compute a
finance charge, each such rate, the range of balances to which it is Article 143. Form and Timing of Disclosure. – All disclosures
applicable, and the corresponding simple annual rate; required under this Act shall be made clearly and conspicuously in
writing before the transaction is consummated.
e) the conditions under which the creditor may impose a security
lien and a description of the goods to which such lien may attach. Article 144. Periodic Statement of Charges. – The periodic
statement transmitted by the creditor in connection with any
The implementing agency shall prescribe regulations consistent extension of consumer credit other than under an open-end
with commonly accepted accounting standards to carry out the consumer credit plan, shall set forth the following information:
requirements of this Article.
a) the simple annual rate;
Article 142. Required Disclosures on Consumer Loans Not
Under Open-End Credit Plan. – Any creditor extending a b) the effective interest rate;
consumer loan or in a transaction which is neither a consumer
credit sale nor under an open-end consumer credit plan shall c) the date by which, or the period (if any) within which payment
disclose, to the extent applicable, the following information: must be made in order to avoid additional finance charges;

a) the amount of credit of which the debtor will have the actual d) method of determining the balance upon which the finance
use, or which is or will be paid to him or for his account or to charge may be imposed.
another person on his behalf; Article 145. Exempted Transaction. – The foregoing
b) all charges, individually itemized, which are included in the requirements on consumer credit transactions shall not apply to
amount of credit extended but which are not part of the finance the following credit transactions:
charge; a) those involving extension of credits for business or commercial
c) the total amount to be financed or the sum of the amounts purposes, or to the Government and governmental agencies and
referred to in paragraphs (a) and (b); instrumentalities, juridical entities or to organizations;

d) the finance charge expressed in terms or pesos and centavos; b) those in which the debtor is the one specifying the definite set of
credit terms such as bank deposits, insurance contracts, sale of
e) the effective interest rate; bonds or analogous transactions.
Article 146. Sale of Consumer Products On Installment CHAPTER I
Payment. – In a consumer credit sale other than one pursuant to ESTABLISHMENT AND COMPOSITION
an open-end credit plan, the obligation of the consumer to whom
credit is being extended shall be evidenced by a single instrument Article 148. National Consumer Affairs Council. – To improve
which shall include, in addition to the disclosures required by this the management, coordination and effectiveness of consumer
act, the signature of the seller and the person to whom credit is programs, a National Consumer Affairs Council is hereby created,
extended, the date it was signed, a description of the property sold hereinafter referred to as the "Council".
and a description of any property transferred as a trade-in. The Article 149. Composition. – The Council shall be composed of
instrument evidencing the credit shall contain a clear and representatives from the following government agencies and non-
conspicuous typewritten notice to the person to whom credit is government agencies:
being extended that:
a) Department of Trade and Industry;
a) he should not sign the instrument if it contains any blank space;
b) Department of Education, Culture and Sports;
b) he is entitled to a reasonable return of the precomputed finance
charge if the balance is prepaid; and c) Department of Health;

c) he is entitled to an exact, true copy of the agreement. d) Department of Agriculture;

In cases where the instrument will be sold at a discount to a bank, e) four (4) representatives from consumer organizations of
financing company or other lender, the said transferee shall be nationwide base to be chosen by the President from among the
subject to all claims and defenses which the debtor could assert nominees submitted by the various consumer groups in the
against the seller of consumer products obtained hereto or with the Philippines;
proceeds thereof.
f) two (2) representatives from business/industry sector to be
Article 147. Penalties. – Any creditor who in connection with any chosen by the President from among the nominees submitted by
credit transaction fails to disclose to any person any information in the various business organizations.
violation of this Chapter or the Implementing rules and regulations
issued thereunder shall be liable to such person in the amount of Article 150. Chairman; Functions. – The Council shall be
One thousand pesos (P1,000.00) or in amount equal to twice the headed and presided by a Chairman who shall be elected by the
finance charge required by such creditor in connection with such members from among themselves. He shall establish, with the
transaction, whichever is greater, except that such liability shall concurrence of the Council, the policies, procedures and standards
not exceed Three thousand pesos (P3,000.00) for any credit to govern the implementation and interpretation of the functions
transaction and actual damages with the non-disclosure of the and duties of the Council.
required information. Action to recover such penalty may be Article 151. Per Diems of Members. – The members of the
brought by such person within one (1) year from the date of the Council shall be entitled to an allowance of Five hundred pesos
occurrence of the violation in any court of competent jurisdiction. (P500.00) per meeting actually attended but not more than Two
TITLE V. - THE NATIONAL CONSUMER AFFAIRS COUNCIL thousand pesos (P2,000.00) a month.
Article 152. The Secretariat. – The Council shall appoint an 5) such other matters of importance to the consumer's general
Executive Director who shall assist the Chairman and act as well-being.
Secretary of the Council. The Department of Trade and Industry
shall provide the Secretariat which shall assist the Council in the Article 154. Consumer Education in Schools. – The
effective performance of its functions. Department of Education, Culture and Sports, with the cooperation
and advice of the Council, shall develop and adopt a consumer
CHAPTER II education program which shall be integrated into existing curricula
POWERS AND FUNCTIONS of all public and private schools from primary to secondary level.

Article 153. Powers and Functions. – The Council have the A continuing consumer education program for out-of-school youth
following powers and functions: and adults shall likewise be developed and undertaken.

a) to rationalize and coordinate the functions of the agencies The consumer education program shall include information
charged with consumer programs and enforcement of consumer regarding:
related laws to the end that an effective, coordinated and
integrated system of consumer protection, research and a) the consumer as a responsible member of society and his
implementation and enforcement of such laws shall be achieved; responsibility to develop:

b) to recommend new policies and legislation or amendments to 1) critical awareness which is the responsibility to be alert and
existing ones; questioning about the use of and price and quality of goods he
uses;
c) to monitor and evaluate implementation of consumer programs
and projects and to take appropriate steps to comply with the 2) assertiveness which is the responsibility to assert himself and
established priorities, standards and guidelines; act so he is assured of a fair deal, aware that for as long as he
remains to be a passive consumer he will continue to be exploited;
d) to seek the assistance of government instrumentalities in the
form of augmenting the need for personnel facilities and other 3) social concern which is the responsibility to be aware of the
resources; impact of his consumption on other citizens, especially the
disadvantaged; and
e) to undertake a continuing education and information campaign
to provide the consumer with, among others; 4) environmental awareness which is the responsibility to
understand the environmental consequences of his consumption,
1) facts about consumer products and services; recognizing his individual and social responsibility to conserve
natural resources for future generations;
2) consumer rights and the mechanism for redress available to
him; b) consumer rights; and

3) information on new concepts and developments on consumer c) practical problems the consumer faces in daily life.
protection; and
Article 155. Concerned Departments, Powers and Duties
4) general knowledge and awareness necessary for a critical and Under Existing Laws. – The concerned departments shall
better judgment on consumption;
continue to exercise the powers and duties provided to them under therefor. The department shall establish procedures for
existing laws, unless repealed or modified accordingly. systematically logging in, investigating and responding to
consumer complaints into the development of consumer policies,
Article 156. Consumer Participation. – The Departments shall rules and regulations, assuring as far as practicable simple and
establish procedures for meaningful participation by consumers or easy access on the part of the consumer to seek redress for his
consumer organizations in the development and review of grievances.
department rules, policies and programs. Such procedures shall
include provisions for a forum, where consumers can express their Article 160. Consumer Arbitration Officers. – The concerned
concerns and recommendations to decision makers. The Department Secretaries shall appoint as many qualified consumer
departments shall exert efforts to inform consumers of pending arbitration officers as may be necessary for the effective and
proceedings where their participation is important. efficient protection of consumer rights: Provided, however, That
there shall be not more than ten (10) consumer arbitration officers
Article 157. Advisory Services. – The departments shall render per province, including the National Capital Region.
advisory services upon request. The technical and legal assistance
shall be made available to consumers and their organizations and Article 161. Consumer Arbitration Officers; Qualifications. –
to the general public. The consumer arbitration officer must be a college graduate with
at least three (3) years experience in the field of consumer
Article 158. Consumer Program Reforms. – Each concerned protection and shall be of good moral character.
Department shall formulate and develop a consumer program
consonant with the objectives of its charter or the applicable laws Article 162. Arbitration Officers; Jurisdiction. – The consumer
which program shall embody the standards set forth in Sections arbitration officers shall have original and exclusive jurisdiction to
156 and 157 of this Act. Copies of these program shall be furnished mediate, conciliate, hear and adjudicate all consumer complaints,
the Council. The Executive Director shall, among his other Provided, however, That this does not preclude the parties from
functions, monitor and coordinate the implementation by the pursuing the proper judicial action.
concerned agencies of their respective consumer programs.
Article 163. Investigation Procedure. –
After the close of the fiscal year, the Council shall submit to
Congress and the Office of the President, a full report on the a) The consumer arbitration officer shall conduct hearings on any
progress of the implementation of consumer programs. complaint received by him or referred by the Council.

CHAPTER III b) Parties to the case shall be entitled to notice of the hearing, and
CONSUMER COMPLAINTS shall be informed of the date, time and place of the same. A copy
of the complaint shall be attached to the notice.
Article 159. Consumer Complaints. – The concerned
department may commerce an investigation upon petition or upon c) The department shall afford all interested parties the opportunity
letter-complaint from any consumer: Provided, That, upon a finding to submit a statement of facts, arguments, offers of settlements or
by the department of prima facie violation of any provisions of this proposals of adjustments.
Act or any rule or regulation promulgated under its authority, it d) The Consumer arbitration officer shall first and foremost ensure
may motu proprio or upon verified complaint commerce formal that the contending parties come to a settlement of the case.
administrative action against any person who appears responsible
e) In the event that a settlement has not been effected, the 4) an assurance to recall, replace, repair, or refund the money
Mediation officer may now proceed to formally investigate, hear value of defective products distributed in commerce;
and decide the case.
5) an assurance to reimburse the complaint out of any money or
f) The Consumer arbitration officer may summon witnesses, property in connection with the complaint, including expenses in
administer oaths and affirmations, issue subpoena and subpoena making or pursuing the complaint, if any, and to file a bond to
duces tecum, rule upon offers of proof and receive relevant guarantee compliance therewith.
evidence, take or cause deposition to be taken whenever the ends
of justice would be served thereby, regulate the course of the c) restitution or rescission of the contract without damages;
hearing, rule on any procedural request or similar matter and d) condemnation and seizure of the consumer product found to be
decide the complaint. hazardous to health and safety unless the respondent files a bond
In hearing the complaint, the mediation officer shall use every and to answer for any damage or injury that may arise from the
all reasonable means to ascertain the facts in each complaint continued use of the product;
speedily and objectively without regard to strict rules of evidence e) the imposition of administrative fines in such amount as deemed
prevailing in suits before courts. The complaints shall be decided reasonable by the Secretary, which shall in no case be less that
within fifteen (15) days from the time the investigation was Five hundred pesos (P500.00) nor more than Three hundred
terminated. thousand pesos (P300,000.00) depending on the gravity of the
Article 164. Sanctions. – After investigation, any of the following offense, and an additional fine of not more than One thousand
administrative penalties may be imposed even if not prayed for in pesos (P1,000.00) or each day of continuing violation.
the complaint: Article 165. Appeal from Orders. – Any order, not interlocutory
a) the issuance of a cease and desist order, Provided, however, of the Consumer arbitration officer, becomes final and executory
That such order shall specify the acts that respondent shall cease unless appealed to the Department Secretary concerned within
and desist from and shall require him to submit a report of fifteen (15) days from receipt of such order. An appeal may be
compliance therewith within a reasonable time; entertained only on any of the following grounds:

b) the acceptance of a voluntary assurance of compliance or a) grave abuse of discretion;

discontinuance from the respondent which may include any or all b) the order is in excess of the jurisdiction or authority of the
of the following terms and conditions: consumer arbitration officer;
1) an assurance to comply with the provisions of this Act and its c) the order is not supported by the evidence or there is serious
implementing rules and regulations; error in the findings of facts.
2) an assurance to refrain from engaging in unlawful acts and Article 166. Decision on Appeal. – The Secretary shall decide
practices or unfair or unethical trade practices subject of the formal the appeal within thirty (30) days from receipt thereof. The decision
investigation; becomes final after fifteen (15) days from receipt thereof unless a
3) an assurance to comply with the terms and conditions specified petition for certiorari is filed with the proper court.
in the consumer transaction subject of the complaint;
TITLE VI
TRANSITORY AND FINAL PROVISIONS

Article 167. Relation of the Act to Other Rights. – The

provisions of this Act shall apply notwithstanding any agreement to
the contrary but shall not restrict, limit or derogate from any other
rights or remedies of a consumer under any other law.

Article 168. Application of Laws Enacted Prior to the Act. –

All actions or claims accruing prior to the effectivity of this Act shall
be determined in accordance with the acts, laws, decrees and
regulations in force at the time of the accrual.

Article 169. Prescription. – All actions or claims accruing under

the provisions of this Act and the rules and regulations issued
pursuant thereto shall prescribe within two (2) years from the time
the consumer transaction was consummated or the deceptive or
unfair and unconscionable act or practice was committed and in
case of hidden defects, from discovery thereof.

Article 170. Repealing Clause. – All laws, executive orders, rules

and regulations or parts thereof which are inconsistent with this Act
are hereby repealed or amended accordingly.

Article 171. Appropriations. – For the initial operating expenses

of the National Consumer Affairs Council, the sum of Two million
pesos (P2,000,000.00) is hereby appropriated out of funds of the
National Treasury not otherwise appropriated. Thereafter, such
sums as may be necessary to carry out its purpose shall be
included in the General Appropriations Act.

Article 172. Separability Clause. – If for any reason any article

or provision of this Act or any portion thereof or the application of
such article, provision or portion thereof to any person, group or
circumstance is declared invalid or unconstitutional, the remainder
of this Act shall not be affected by such decision.

Article 173. Effectivity. – This Act shall take effect thirty (30)
days from the date of its publication in the Official Gazette.