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:
presentation of product;
(b) use and hazards reasonably expected of it;
(c) the time it was put into circulation.
product is not considered defective because another better quality product has been placed in the market.
builder, producer or importer shall not be held liable when it evidences:
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:
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
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
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.
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:
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:
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
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
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:
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.
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:
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.
of services may be entrusted to duly qualified third parties, at the supplier's risk and cost.
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.
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.