1. Short Title. - This Act shall be known as the "Consumer Act
of the Philippines".
Art. 2. Declaration of Basic Policy. - It is the policy of the State to protect the interests
of the consumer, promote his general welfare and to establish standards of conduct for business and industry. Towards this
end, the State shall implement measures to achieve the following objectives:
(a) protection against hazards to health and safety;
(b) protection against deceptive, unfair and unconscionable sales acts and practices;
(c) provision of information and education to facilitate sound choice and the proper
exercise of rights by the consumer;
of adequate rights and means of redress; and
(e) involvement of consumer representatives in the formulation of social
and economic policies.
Art. 3. Construction. - The best interest of the consumer shall be
considered in the interpretation and implementation of the provisions of this Act, including its implementing rules and regulations.
Art. 4. Definition of Terms. - For purposes of this Act,
(a) "Advertisement" means the prepared and through any form of mass medium, subsequently applied, disseminated
or circulated advertising matter.
means the business of conceptualizing, presenting or making available to the public, through any form of mass media, fact,
data or information about the attributes, features, quality or availability of consumer products, services or credit.
(c) "Advertising agency or Agent" means a service organization or enterprise creating,
conducting, producing, implementing or giving counsel on promotional campaigns or programs through any medium for and in behalf
of any advertiser.
(d) "Advertiser" means the client of the advertising agency or the sponsor of the advertisement on whose
account the advertising is prepared, conceptualized, presented or disseminated.
(e) "Agricultural purpose" means a purpose related to the production, harvest,
processing, manufacture, distribution, storage, transportation, marketing, exhibition or disposition
of agricultural, fishery or marine products.
financed" in a consumer credit sale constitutes the cash price plus non-finance charges less the amount of any downpayment
whether made in cash or in property traded in, or in a consumer loan the amount paid to, receivable by or paid or payable
to the buyer or to another person in his behalf.
(g) "Banned hazardous
substance" means (1) any toy or other articles intended for use by children, which are hazardous per se, or which bear
or contain substances harmful to human beings; or (2) any hazardous substance intended or packaged in
a form suitable for use in the household, which the implementing agency by regulation, classifies as "banned hazardous
substance" notwithstanding the existence of cautionary labels, to safeguard public health and safety: Provided,
That the implementing agency may, by regulation, exempt from this Act, articles which by reason of their functional purpose
require the inclusion of the hazardous substance involved and which bear appropriate labels giving adequate directions and
warnings for their safe use.
Procedures for the issuance, amendment or repeal of regulations pursuant to clause (2) or paragraph (g) of this
Article shall be governed by the rules and regulations promulgated by the Department of Health; Provided, That if the
Department of Health finds that the distribution for household use of the hazardous substance involved presents an imminent
hazards to the public health, it may publish in a newspaper of general circulation a notice of such finding and such substance
shall be deemed to be a "banned hazardous substance" pending
the issuance of regulation formally banning such substance.
name, or style" means any name or designat(h)
"Batch" means a quantity of any drug or device produced during a given cycle of manufacture.
(i) "Business name, firm ion other than the true name of a person, partnership,
corporation or association which is used or signed in connection with his/its business or in -
(1) any written or printed receipt, including receipt for tax or business;
(2) any written or printed contract no other
by a notary public;
(3) any written
or printed evidence of any agreement
(4) any sign
or billboard kept conspicuously exhibited in plain view in or at the place of the business, announcing
a firm name or business name or style.
(j) "Cash price or delivered price", in case of trade transaction,
means the amount of money which would constitute full payment upon delivery of the property (except money) or service purchased
at the creditor's place of business. In the case of financial transactions, cash price represents the amount received by the
debtor upon consummation of the credit transaction, net of finance charges collected at the time the credit is extended, if
additional persons who will also
be granted such right to recruit upon condition of making similar investments: Provided, That the profits of the person
employing such a plan are derived primarily from the recruitment of other persons into the plan rather than from the sale
of consumer produc(k) "Chain distribution plans" or "pyramid
sales schemes" means sales devices whereby a person, upon condition that he makes an investment, is granted by the manufacturer
of his representative a right to recruit for profit one or morets, services and credit:
Provided, further, That the limitation on the number of participants does not change the nature of the plan.
(l) "Closing out sale" means a consumer sale wherein the seller uses the announcement
to create the impression that he is willing to give large discounts or merchandise in order to reduce, dispose or close out
his inventory and business(m) "Commerce"
means the sale, lease, exchange, traffic or distribution of goods, commodities, productions, services or property, tangible
means a natural person who is a purchaser, lessee, recipient or prospective purchaser, lessor or recipient of consumer
products, services or credit. chanrobles law
(o) "Consumer credit" means any credit extended by a creditor to a consumer
for the sale or lease of any consumer product or service under which part or all of the price or
payment therefor is payable at some future time, whether in full or in installments.
(p) "Consumer loan" means
a loan made by the lender to a person which is payable in installments for which a finance charge is or may be imposed. This
term includes credit transactions pursuant to an open-end-credit plan other than a seller credit card.
(q) "Consumer products and services" means goods, services and credits,
debts or obligations which are primarily for personal, family, household or agricultural purposes,
which shall include but not limited to food, drugs, cosmetics, and devices.
(r) "Consumer product safety rule" means a consumer product safety standard
described in Article 78 or a rule under this Chapter declaring a consumer product banned hazardous
transaction" means (1) (i) a sale, lease, assignment, award by chance, or other disposition of consumer products, including
chattels that are intended to be affixed to land, or of services, or of any right, title, or interest therein, except securities
as defined in the Securities Act and contracts of insurance under the Insurance Code, or (ii) a grant of provision of credit
to a consumer for purposes that are primarily personal, family, household or agricultural, or (2) a solicitation or promotion
by a supplier with respect to a transaction referred to in clause (1).
(t) "Corrosive" means any substance which on contact with living tissue
will cause destruction of tissue by chemical action.
means (1) articles intended to be rubbed, poured, sprinkled or sprayed on, introduced into or otherwise applied to the
human body or any part thereof for cleansing, beautifying, promoting attractiveness, or altering the appearance, and (2) article
intended for use as a component of any such article except that such term shall not include soap.
(v) "Counterfeit product" means
any consumer product which, or the container or labeling of which, without authorization, bears the trademark, trade name,
or other identifying mark, imprint, or device, or any likeness thereof, of a consumer product manufacturer,
processor, packer, distributor, other than the person or persons who in fact manufactured, processed, packed or distributed
such product and which thereby falsely purports or is represented to be the product of, or to have been packed or distributed
by such consumer product manufacturer, processor, packer, or distributor.
(w) "Credit card"
means any card, plate, coupon book or other credit device existing for the purpose of obtaining
money, property, labor or services on credit.
(x) "Credit Sale" means a sale products, services or an interest in land to a person on
credit where a debt is payable in installments or a finance charge is imposed and includes any agreement in the form of a
bailment of products or lease of products or real property if the bailee or lessee pays or agrees to pay compensation for
use a sum substantially equivalent to or in excess of the aggregate value of the products or real property involved and it
is agreed that the bailee or lessee will become, or for no other or a nominal consideration has the option to become, the
owner of the products or real property upon full compliance with the terms of the agreement.
(y) "Credit transaction"
means a transaction between a natural person and a creditor in which real or personal property, services or money acquired
on credit and the person's obligation is payable in installment.
"Creditor" means any person engaged in the business of extending credit and shall include any person who as a regular
business practice makes loans or sells or rents property or services on a time, credit or installment basis, either as principal
or as agent who requires as an incident to the extension of credit, the payment of a finance charge.
or delinquency charge" means, with respect to a consumer credit transaction, the penalty charge payable by the consumer-debtor
for failure to pay an amount or installment in full on the date the same becomes due and demandable, or on or before the period
specified for the urpose in the consumer credit sale documents.
(ab) "Device" means an instrument, apparatus, implement, machine, contrivance,
implant, in vitro reagent, or other similar or related article, including any component, part or accessory which is (1) recognized
in the official United States Pharmacopoeia-National Formulary (USP-NF) or any supplement to them; (2) intended for use in
the diagnosis of disease or other condition or in the cure, mitigation, treatment or prevention
of disease, in man or other 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 of its principal intended purposes through chemical action within or on the body of man or
other animals and which is not dependent upon being metabolized for the achievement of any of its principal intended purposes.
(ac) "Distributor" means any person to whom a consumer product is delivered or sold for
purposes of distribution in commerce, except that such term does not include a manufacturer or retailer of such
(ad) "Drugs" mean (1) articles recognized in the current official
United States Pharmacopoeia-National Formulary, official Homeopathic Pharmacopoeia of the United States, official National
Drug Formulary, or any supplement to any of them; and (2) articles intended for use in the diagnosis, cure, mitigation, treatment,
or prevention of disease in man or other animals; and (3) articles (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 component of any articles specified in clauses
(1), (2), or (3) but do not include devices or their components, parts or accessories.
when used in this Act shall include herbal and/or traditional drug. They are defined as articles from indigenous plant
or animal origin used in folk medicine which are: (1) recognized in the Philippine National Formulary; (2) intended for use
in the treatment or cure, mitigation, of disease symptoms, injury or bodily defect for use in man; (3) other than food, intended
to affect the structure of any function of the body of man; (4) put into finishes, ready to use form by means of formulation,
dosage or dosage directions; and (5) intended for use as a component of any of the articles specified in clauses (1), (2),
(3) and (4) of this paragraph.
"Expiry or expiration date" means the date stated on the The
term "label of food, drug, cosmetic, device or hazardous substance after which they are not
expected to retain their claimed safety, efficacy and quality or potency and after which it is no longer permissible to sell
flammable" means any substance which has a flash point at or below negative six and six-tenths degrees centigrade as determined
by the Tagliabue Open Cub Tester; and term "combustible" shall apply to any substance which has a flash point of above
twenty-six and six-tenths degrees to and including sixty-five and five-tenths degrees centigrade as determined by the Tagliabue
Open Cub Tester: Provided, That the flammability or combustibility of solids and of the
contents of self-pressurized containers shall be determined through methods found by the implementing agency to be generally
applicable to such materials or containers, respectively, and established by regulations issued by it.
(ag) "Food" means any substance, whether processed, semi-processed or raw, intended for
human consumption and includes chewing gum, drinks and beverages and any substance which has been used as an ingredient or
a component in the manufacture, preparation or treatment of food.
(ah) "Food additive" means any substance, the intended use of which results
or may reasonably be expected to result, directly or indirectly, in its becoming a component or otherwise affecting the characteristics
of any food (including any substance intended for use in producing, manufacturing, packing, processing, preparing,
treating, packaging, transporting, or holding food; and including any source of radiation intended for any such use), if such
substance is not generally recognized, among experts qualified as having been adequately shown through scientific procedures
to be safe under the conditions of the intended use.
(ai) "Generic name" is the identification of drugs and medicines by their scientifically
and internationally recognized active ingredients or by their official generic name as determined by the Bureau of Food and
Drugs of the Department of Health.
means an expressed or implied assurance of the quality of the consumer products and services offered for sale or length
of satisfactory use to be expected from a product or other similar specified assurances.
(ak) "Hazardous substance" means: (1) (i) Any substance or mixture of substances
which is toxic, corrosive, irritant, a strong sensitizer, flammable or combustible, or generates pressure through decomposition,
heat or other means, if such substance or mixture or substances which the department finds to be under the cany cause substantial
injury or substantial illness during or as a proximate result of any customary or reasonably foreseeable ingestion by children.
(ii) Any substance
ategories enumerated in clause (1) (i) of this paragraph;
(iii) Any radioactive substance, if, with respect to such substance as used in a particular class
of article or as packaged, the Department, upon approval of the Department determines by regulation that the substance is
sufficiently hazardous to require labeling in accordance with this section in order to protect the public health;
or containing such
harmful substances (iv) Any toy or other articles intended for use by children
which the director may, by regulation, determine the presence of an electrical, mechanical or thermal hazard.
This term shall not apply to food, drugs, cosmetics, and devices nor to substances intended for use as fuels when stored in
containers and used in the heating, cooking or refrigeration system 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 in clause (a) of paragraph (1), by reason of
bearing described therein. chanrobles law
(al) "Highly Toxic" means any substance which has any of the following effects:
(1) produces death within fourteen days to one-half or more than one-half of a group of ten or more laboratory white rats
each weighing between Two hundred and three hundred grams, at a single dose of fifty milligrams or less per kilogram of
there exists a lack
of adequate informationbody weight, when orally administered; or (2) produces death within fourteen days
to one-half or more of a group of ten or more laboratory white rats each weighing between two hundred and three hundred grams,
when inhaled continuously for a period of one hour or less at an atmospheric concentration of two hundred parts per million
by volume or less of gas or vapor or two milligrams per liter by volume or less of mist or dust, provided such concentration
is likely to be encountered by man when the substance is used in any reasonably foreseeable manner, or (3) produces death
within fourteen days to one-half or more of a group of ten or more rabbits, when tested in a dosage of two hundred milligrams
or less per kilogram of body weight, or when administered through continuous contact with the bare skin for twenty-four hours
(am) "Home solicitation sale" means consumer
sales or leases which are personally solicited by any person or organization by telephone, person-to-person contact or by
written or printed communication other than general advertising or consummated at the buyer's residence or a place of business,
at the seller's transient quarters, or away from a seller's regular place of business.
(an) "Immediate container" means the container or package which is immediately
after or near the substance but does not include package liners.
(ao) "Imminently hazardous product" means a consumer product which presents an
unreasonable risk of death, serious illness or severe personal injury. chanrobles law
(ap) "Irritant" means any substance not corrosive within the meaning of paragraph (t) of this Article which,
on immediate, prolonged or repeated contact with normal living tissue will induce a local inflammatory reaction.
(aq) "Label, labeling" means the display of written, printed or graphic
matter on any consumer product its immediate container, tag, literature or other suitable material affixed thereto for the
purpose of giving information as to identify, components, ingredients, attributes, directions for use, specifications and
such other information as may be required by law or regulations.
(ar) "Manufacture" means and any and all operations involved in the production,
including preparation, propagation, processing, formulating, filing, packing, repacking, altering, ornamenting, finishing
or otherwise changing the container, wrapper or labeling of a consumer product in the furtherance of the distribution of the
same from the original place of manufacture to the person who makes the final delivery or sale to the ultimate consumer.
(as) "Manufacturer" means any person who manufactures, assembles
or processes consumer products, except that if the goods are manufactured, assembled or processed for another person who attaches
his own brand name to the consumer products, the latter shall be deemed the manufacturer. In case of imported products, the
manufacturer's representatives or, in his absence, the importer, shall be deemed the manufacturer.
(at) "Mass media" refers to any means or methods used to convey advertising
messages to the public such as television, radio, magazines, cinema, billboards, posters, streamers, hand bills, leaflets,
mails and the like. chanrobles law
"Materially defective product" means a product which, because of the pattern of the defect, the number of defective
products distributed in commerce and the severity of the risk or otherwise, creates a substantial risk of injury to the public.
(av) "Mislabeled hazardous substance" means any hazardous substance
intended, or packaged in a form suitable, for use in households, especially by children, the packaging or labeling of which
is in violation of the special packaging regulation issued by the Department of Health under Article 91 or if such substance
fails to bear a label which (1) states conspicuously (i) the name and the exact address of the manufacturer, packer, distributor,
or seller; (ii) the common or usual name of the hazardous substance or of each component which contributes substantially to
the harmfulness of the substance, unless the Department by regulation approved by the Department permits or requires the use
of the recognized generic name; (iii) the signal word "danger" on substances which are extremely flammable, corrosive,
or highly toxic; (iv) the signal word "warning" or "caution" on all other hazardous substances; (v) a frank
statement of the principal hazard or hazards involved, as "flammable", "vapor harmful", "causes burns",
"absorbed through skin", or similar wording describing the action to be followed or avoided, except when modified by
regulation by the Department pursuant to Section 46; (vi) instructions, when necessary or appropriate, for first aid treatment;
(vii) the word "poison" for any hazardous substance which is defined as highly toxic; (viii) instructions for handling and
storage of packages which require special care in handling or storage; and (ix) the statement "keep out of the reach of
children", or its practical equivalent, if the article is intended for use by children and is not a banned hazardous substance,
with adequate directions for the protection of children from the hazard involved. The aforementioned signal words, affirmative
statements, description of precautionary measures, necessary instructions or other words or statements may be in the English
language or its equivalent in Filipino; and
(2) on which any statement required under clause (1) of this paragraph are located prominently and in contrast
by typography are located prominently and in contrast by typography, layout, with other printed matters on the label.
(aw) "New Drugs" mean (1) any drug the composition of which is such
that said drug is not generally recognized among experts qualified by scientific training and experience to evaluate the safety,
efficacy and quality of drugs as safe, efficacious and of good quality for use under the conditions prescribed, recommended,
or suggested in the labeling thereof; or (2) any drug the composition of which is such that said drug, as a result of its
previous investigations to determine its safety, efficacy and good quality for use under certain conditions, has become so
recognized but which has not, otherwise than in such investigations, been used to a material extent or for a material time
under new conditions.
shall include drugs (a) containing a newly discovered active ingredient; (b) containing a new fixed combination of drugs,
either by molecular or physical combination; (c) intended for new indications; (d) an additional
new mode of administration; or (e) in an additional dosage or strength of the dosage form, which meets the conditions as defined
under the new drug.
The definition of "new drugs" covers to the extent applicable, "new devices".
Product" means a consumer product which incorporates a design, material or form of energy exchange which has not previously
been used substantially in consumer products and as to which to determine the
quality and safety of such product if used by the consumers.
(ay) "Open-end-credit plan" means a consumer credit extended on an account
pursuant to a plan under which:
(1) the creditor may permit the person to make purchases or obtain loans, from time to time, directly from the
creditor or indirectly by use of credit card, check or other device;
(2) the person has the privilege of paying the balance; or
(3) a finance charge may be computed by the
creditor from time to time on an outstanding unpaid balance.
(az) "Package" or "packaging" means any container or wrapping in which any consumer product is
enclosed for use in the delivery or display of that consumer product to retail purchasers, but does not include:
(1) shipping containers or wrappings used solely for the transportation of any consumer product in bulk or in
big quantities by manufacturers, packers, or processors to wholesale retail distributors thereof;
(2) shipping containers or outer wrappings used by retailers to ship or deliver any product to
retail costumers if such containers and wrappings bear no printed matter pertaining any particular product;
(3) The wrappers or containers of consumer products sold in small quantities by
small retail stores to the consumer which by tradition are wrapped with ordinary paper.
(ba) "Person" means any individual, partnership, corporation or association, trust, government or governmental
subdivision or any other legal entity. chanrobles law
(bb) "Poisonous substance" means any substance capable of destroying life or seriously
endangering health when applied externally to the body or introduced internally in moderate doses.
(bc) "Price comparison" means the direct comparison in any advertisement
of a seller's current price for consumer products or services with any other price or statement
of value for such property or services expressed in pesos, centavos, fractions or percentages.
(bd) "Price tag" means any device, written, printed,
affixed or attached to a consumer product or displayed in a consumer repair or service establishment for the purpose of indicating
the retail price per unit or service.
"Principal display panel" means that part of the label that is most likely to be displayed,
presented, shown or examined under normal and customary conditions of display for retail or sale.
(bf) "Private labeler" means an owner of a brand or trademark on the label of consumer
product other than a manufacturer of the product.
product bears a private label if (1) the product or its container is labeled with a brand or trademark of a person other than
its manufacturer; or (2) the brand or trademark of the manufacturer of such product does not appear
on such label.
substance" means any substance which emits ionizing radiation.
(bh) "Referral selling" means the sales device employed by the sellers wherein
the buyer is induced to acquire goods or services by representing that after the acquisition of the goods or services, he
will receive a rebate, commission or other benefit in return for the submission of names of potential customers or otherwise
helping the seller enter into other sales, if the receipt of such benefit is contingent on an event
occurring after the sale is made.
and service firm" means any business establishment, engaged directly or indirectly, in the repair, service or maintenance
of any consumer product.
(bk) "Retailer" means a person engaged in the business of selling
(bl) "Sale or distribution"
shall mean an act made by a manufacturer or seller, or their respective representative or agent,
to make available consumer products, services or credit to the end consumers under a consumer sale transaction. It shall not
include sampling or any distribution not for sale.
onsumer products directly to consumers.
(bm) "Sales Promotion" means techniques intended for broad consumer participation
which contain promises of gain such as prizes, in cash or in kind, as reward for the purchase of a product, security, service
or winning in contest, game, tournament and other similar competitions which involve determination of winner/s and
which utilize mass media or other widespread media of information. It also means techniques purely intended
to increase the sales, patronage and/or goodwill of a product.
(bn) "Seller" means a person engaged in the business of selling consumer products directly
to consumers. It shall include a supplier or distributor if (1) the seller is a subsidiary or affiliate of the supplier or
distributor; (2) the seller interchanges personnel or maintains common or overlapping officers or directors with the supplier
or distributor; or (3) the supplier or distributor provides or exercises supervision, direction or control over the selling
practices of the seller.
shall mean, with respect to repair and service firms, services supplied in connection with a contact for construction, maintenance,
repair, processing, treatment or cleaning of goods or of fixtures on land, or distribution of goods, or transportation of
means services that are the subject of a consumer transaction, either together with, or separate from
any kind of personal property, whether tangible or intangible.
(bq) "Special packaging" means packaging that is designed or constructed to be significantly
difficult for children five years of age to open or to obtain a toxic or harmful amount of the substance contained therein
within a reasonable time and not difficult for normal adults to use properly but does not mean packaging which all such children
cannot open or obtain a toxic or harmful amount within a reasonable time.
(br) "Standard" means a set of conditions to be fulfilled to ensure the quality and safety
of a product;
sensitizer" means any substance which will cause on normal living tissue, allergy or photodynamic quality of hypersensitivity
which becomes evident on reapplication of the same substance, to be designated as such by the implementing agency. Before
designating any substance as a strong sensitizer, the implementing agency, upon consideration of the frequency of occurrence
and severity of the reaction, shall find that the substance has a significant capacity to cause hypersensitivity.
(bt) "Substandard product" means a product which fails
to comply with an applicable consumer product safety rule which creates a substantial risk of injury to the public.
(bu) "Supplier" means a person,
other than a consumer, who in the course of his business, solicits, offers, advertises, or promotes the disposition or supply
of a consumer product or who other than the consumer, engages in, enforces, or otherwise participates in a consumer transaction,
whether or not any privity of contract actually exists between that person and the consumer, and
includes the successor to, or assignee of, any right or obligation on of the supplier.
personnel of repair and service enterprise" shall mean a machine or technician or any person who works or renders diagnosis
or advice in connection with repair, service and maintenance of the consumer products in a repair and service firm. chanrobles
(bw) "Toxic substance" means any substance other than a radioactive substance which can
cause injury, illness or death to man through ingestion, inhalation or absorption through any body
"Trade name" or "trademark" means a word or words, name, title, symbol, surface.
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