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Consumer Act of the PHILIPPINES

CHAPTER V LIABILITY FOR PRODUCT AND SERVICE

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GENERAL PROVISIONS
CHAPTER 1CONSUMER PRODUCT QUALITY AND SAFETY
Chapter 2 FOODS, DRUGS, COSMETICS AND DEVICES
DRUGS AND DEVICES
CERTIFICATION OF DRUGS CONTAINING ANTIBIOTICS
COSMETICS
Chapter 3 HAZARDOUS SUBSTANCE
TITLE III PROTECTION AGAINST DECEPTIVE, UNFAIR AND UNCONSCIONABLE SALES ACTS OR PRACTICES
REGULATION OF SALES ACTS AND PRACTICES
CHAPTER II REGULATION OF PRACTICES RELATIVE TO
CHAPTER IIICONSUMER PRODUCT AND SERVICE WARRANTIES
CHAPTER IV LABELING AND FAIR PACKAGING
CHAPTER V LIABILITY FOR PRODUCT AND SERVICE
CHAPTER VI ADVERTISING AND SALES PROMOTION
CHAPTER VII REGULATION OF REPAIR AND SERVICE FIRMS
TITLE IV CONSUMER CREDIT TRANSACTION
TITLE V THE NATIONAL CONSUMER AFFAIRS COUNCIL
CHAPTER II POWERS AND FUNCTIONS
CHAPTER III CONSUMER COMPLAINTS
TITLE VI TRANSITORY AND FINAL PROVISIONS
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Art. 96. Implementing Agency. - The Department of Trade and Industry shall enforce the provisions of this Chapter and its implementing rules and regulations.
 

Art. 97. Liability for the Defective Products. - Any Filipino or foreign manufacturer, producer, and any importer, shall be liable for redress, independently of fault, for damages caused to consumers by defects resulting from design, manufacture, construction, assembly and erection, formulas and handling and making up, presentation or packing of their products, as well as for the insufficient or inadequate information on the use and hazards thereof.

 

A product is defective when it does not offer the safety rightfully expected of it, taking relevant circumstances into consideration, including but not limited to:

(a) presentation of product;
 

(b) use and hazards reasonably expected of it;

 

(c) the time it was put into circulation.

A product is not considered defective because another better quality product has been placed in the market.
 

The manufacturer, builder, producer or importer shall not be held liable when it evidences:

(a) that it did not place the product on the market;
 

(b) that although it did place the product on the market such product has no defect;

 

(c) that the consumer or a third party is solely at fault.

Art. 98. Liability of Tradesman or Seller. - The tradesman/seller is likewise liable, pursuant to the preceding article when:

(a) it is not possible to identify the manufacturer, builder, producer or importer;
 

(b) the product is supplied, without clear identification of the manufacturer, producer, builder or importer;

 

(c) he does not adequately preserve perishable goods. The party making payment to the damaged party may exercise the right to recover a part of the whole of the payment made against the other responsible parties, in accordance with their part or responsibility in the cause of the damage effected.

Art. 99. Liability for Defective Services. - The service supplier is liable for redress, independently of fault, for damages caused to consumers by defects relating to the rendering of the services, as well as for insufficient or inadequate information on the fruition and hazards thereof.
 

The service is defective when it does not provide the safety the consumer may rightfully expect of it, taking the relevant circumstances into consideration, including but not limited to:

(a) the manner in which it is provided;
 

(b) the result of hazards which may reasonably be expected of it;

 

(c) the time when it was provided.

A service is not considered defective because of the use or introduction of new techniques.
The supplier of the services shall not be held liable when it is proven:

(a) that there is no defect in the service rendered;
 

(b) that the consumer or third party is solely at fault.

Art. 100. Liability for Product and Service Imperfection. - The suppliers of durable or nondurable consumer products are jointly liable for imperfections in quality that render the products unfit or inadequate for consumption for which they are designed or decrease their value, and for those resulting from inconsistency with the information provided on the container, packaging, labels or publicity messages/advertisement, with due regard to the variations resulting from their nature, the consumer being able to demand replacement to the imperfect parts.
 

If the imperfection is not corrected within thirty (30) days, the consumer may alternatively demand at his option:

(a) the replacement of the product by another of the same kind, in a perfect state of use;
 

(b) the immediate reimbursement of the amount paid, with monetary updating, without prejudice to any losses and damages;

 

(c) a proportionate price reduction.

The parties may agree to reduce or increase the term specified in the immediately preceding paragraph; but such shall not be less than seven (7) nor more than one hundred and eighty (180) days.
 

The consumer may make immediate use of the alternatives under the second paragraph of this Article when by virtue of the extent of the imperfection, the replacement of the imperfect parts may jeopardize the product quality or characteristics, thus decreasing its value.

If the consumer opts for the alternative under sub-paragraph (a) of the second paragraph of this Article, and replacement of the product is not possible, it may be replaced by another of a different kind, mark or model: Provided, That any difference in price may result thereof shall be supplemented or reimbursed by the party which caused the damage, without prejudice to the provisions of the second, third and fourth paragraphs of this Article.

 

Art. 101. Liability for Product Quantity Imperfection. - Suppliers are jointly liable for imperfections in the quantity of the product when, in due regard for variations inherent thereto, their net content is less than that indicated on the container, packaging, labeling or advertisement, the consumer having powers to demand, alternatively, at his own option:

(a) the proportionate price;
 

(b) the supplementing of weight or measure differential;

 

(c) the replacement of the product by another of the same kind, mark or model, without said imperfections;

 

(d) the immediate reimbursement of the amount paid, with monetary updating without prejudice to losses and damages if any.

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 weighing or measuring is not gauged in accordance with official standards.

 

Art. 102. Liability for Service Quality Imperfection. - The service supplier is liable for any quality imperfections that render the services improper for consumption or decrease their value, and for those resulting from inconsistency with the information contained in the offer or advertisement, the consumer being entitled to demand alternatively at his option:

(a) the performance of the services, without any additional cost and when applicable;
 

(b) the immediate reimbursement of the amount paid, with monetary updating without prejudice to losses and damages, if any;

 

(c) a proportionate price reduction.

Reperformance of services may be entrusted to duly qualified third parties, at the supplier's risk and cost.
 

Improper services are those which prove to be inadequate for purposes reasonably expected of them and those that fail to meet the provisions of this Act regulating service rendering.

 

Art. 103. Repair Service Obligation. - When services are provided for the repair of any product, the supplier shall be considered implicitly bound to use adequate, new, original replacement parts, or those that maintain the manufacturer's technical specifications unless, otherwise authorized, as regards to the latter by the consumer.

 

Art. 104. Ignorance of Quality Imperfection. - The supplier's ignorance of the quality imperfections due to inadequacy of the products and services does not exempt him from any liability.

 

Art. 105. Legal Guarantee of Adequacy. - The legal guarantee of product or service adequacy does not require an express instrument or contractual exoneration of the supplier being forbidden.

 

Art. 106. Prohibition in Contractual Stipulation. - The stipulation in a contract of a clause preventing, exonerating or reducing the obligation to indemnify for damages effected, as provided for in this and in the preceding Articles, is hereby prohibited, if there is more than one person responsible for the cause of the damage, they shall be jointly liable for the redress established in the pertinent provisions of this Act. However, if the damage is caused by a component or part incorporated in the product or service, its manufacturer, builder or importer and the person who incorporated the component or part are jointly liable.

 

Art. 107. Penalties. - Any person who shall violate any provision of this Chapter or its implementing rules and regulations with respect to any consumer product which is not food, cosmetic, or hazardous substance shall upon conviction, be subject to a fine of not less than Five thousand pesos (P5,000.00) and by imprisonment of not more than one (1) year or both upon the discretion of the court.

 

In case of juridical persons, the penalty shall be imposed upon its president, manager or head. If the offender is an alien, he shall, after payment of fine and service of sentence, be deported without further deportation proceedings.

 

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