Hello dear readers! Today, I would like to share with you excerpts from the Consumer Act of the Philippines (Republic Act #7394). I came across this article while doing research for my report on Business Ethics about the ethical issues in ‘Advertising, Sales Promotion and Public Relation’.
Please click if you would like to view the full RA7394 - Consumer Act of the Philippines.
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TITLE I - GENERAL PROVISIONS (You can skip this part)
ARTICLE 2. Declaration of Basic Policy
ARTICLE 4. Definition of Terms
TITLE II [Untitled]
COSMETICS
ARTICLE 35. Adulterated Cosmetics
PROHIBITED ACTS AND PENALTIES
ARTICLE 40. Prohibited Acts ARTICLE 41. Penalties
TITLE III - PROTECTION AGAINST DECEPTIVE, UNFAIR AND UNCONSCIONABLE SALES ACTS OR PRACTICES
CHAPTER IV - LABELING AND FAIR PACKAGING
ARTICLE 77. Minimum Labeling Requirements for Consumer Products ARTICLE 82. Manner of Placing Price Tags
ARTICLE 83. Regulations for Price Tags Placement
ARTICLE 87. Additional Labeling Requirements for Cosmetics
ARTICLE 88. Special Labeling Requirements for Cosmetics
CHAPTER V - LIABILITY FOR PRODUCT AND SERVICES
ARTICLE 100. Liability for Product and Service Imperfection ARTICLE 101. Liability for Product Quantity Imperfection
ARTICLE 104. Ignorance of Quality Imperfection
TITLE V - THE NATIONAL CONSUMER AFFAIRS COUNCIL
CHAPTER III - CONSUMER COMPLAINTS
ARTICLE 159. Consumer Complaints ARTICLE 163. Investigation Procedure
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TITLE I - GENERAL PROVISIONS
(You can skip this part)
ARTICLE 2. Declaration of Basic Policy… 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;
e) Provision of adequate rights and means of redress; and
f) Involvement of consumer representatives in the formulation of social and economic policies.
ARTICLE 4. Definition of Terms…
b) "Advertising" means the business of… making available to the public, through any form of mass media… information about the attributes, features… of consumer products…
n) "Consumer" means a… person who is a purchaser… or recipient of consumer products…
r) "Consumer product safety rule" means… a rule… declaring a consumer product banned hazardous product.
u) "Cosmetics" means (1) articles intended… for cleansing, beautifying, promoting attractiveness, or altering the appearance, and (2) …except… soap.
ae) "Expiry or expiration date" means the date stated on the label of… cosmetic… after which it is no longer permissible to sell them.
ap) "Irritant" means any substance… which, on immediate, prolonged, or repeated contact with normal living tissue will induce a local inflammatory reaction.
aq) "Label, labeling" means the display… for the purpose of giving information as to the identity, components, ingredients, attributes, directions for use, specifications, and such other information…
az) "Package" or "packaging" means any container or wrapping in which any consumer product is enclosed for use in delivery or display of that consumer product to retail purchasers…
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.
bs) "Strong sensitizer" means any substance which will cause… allergy or hypersensitivity…
bu) "Supplier" means a person, other than a consumer, who… promotes the disposition or supply of a consumer product…
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 surface.
a) if it bears or contains any poisonous or deleterious substance which may render it injurious to users under the condition of use prescribed in the labeling…
b) if it consists in whole or in part of any filthy putrid, or decomposed substance.
c) if it has been prepared, packed or held under unsanitary conditions…
d) if its container is composed, in whole or in part, of any poisonous or deleterious substance…
e) if it is not a hair dye, and it bears or contains color additive other than which is permissible.
f) if any of its substances have been (1) mixed or packed therewith so as to reduce its quality or strength or (2) substituted wholly or in parts therefore.
a) the manufacture, importation, exportation, sale, offering for sale, distribution, or transfer of any food, drug, device or cosmetic that is adulterated or mislabeled;
b) the adulteration or misbranding of any food, drug, device or cosmetic;
c) the refusal to permit entry or inspection as authorized by Article 36 to allow samples to be collected;
g) the alteration, mutilation, destruction, obliteration, or removal of the whole or any part of the labeling… while such product is held for sale (whether or not the first sale) and results in such product being adulterated or mislabeled;
l) [selling the cosmetic] beyond its expiration or expiry date;
a) its correct and registered trade name or brand name;
b) its duly registered trademark;
c) its duly registered business name;
d) the address of the manufacturer, importer, repacker of the consumer product in the Philippines;
e) its general make or active ingredients;
f) the net quantity of contents…
g) country of manufacture, if imported; and
h) if a consumer product is manufactured, refilled or repacked under license from a principal, the label shall so state the fact.
ARTICLE 82. Manner of Placing Price Tags - Price tags, labels or markings must be written clearly, indicating the price of the consumer product per unit is pesos and centavos.
ARTICLE 83. Regulations for Price Tags Placement… There shall be no erasures or alterations of any sort of price tags, labels or markings.
ARTICLE 87. Additional Labeling Requirements for Cosmetics…
a) expiry or expiration date;
b) whether or not it may be an irritant;
c) precautions or contra-indications; and
d) such other labeling requirements as the concerned department may deem necessary and reasonable.
ARTICLE 88. Special Labeling Requirements for Cosmetics - A cosmetic shall be deemed mislabeled:
a) if its labeling or advertising is false or misleading in any way;
d) if its container is so made, formed and filled as to be misleading; or
e) if its label does not state the common or usual name of its ingredients.
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ARTICLE 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… 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 proportion 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.
ARTICLE 101. Liability for Product Quantity Imperfection - Suppliers are jointly liable for imperfection in the quantity of the product when… 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 imperfection;
d) the immediate reimbursement of the amount paid, with monetary updating without prejudice to losses and damages if any.
ARTICLE 104. Ignorance of Quality Imperfection - The supplier's ignorance of the quality imperfections due to inadequacy of the product and services does not exempt him from any liability.
ARTICLE 163. Investigation Procedure -
a) The consumer arbitration officer shall conduct hearings on any complaint receive by him or referred by the Council.
b) Parties to the case shall be entitled to notice of the hearing…
c) The department shall afford all interested parties the opportunity to submit a statement of facts, arguments, offers of settlement or proposals of adjustments.
d) The consumer arbitration officer shall first and foremost ensure that the contending parties come to a settlement of the case.
e) In the event that a settlement has not been effected, the Mediation officer may now proceed to formally investigate, hear and decide the case.
f) The Consumer arbitration officer may summon witnesses, administer oaths and affirmations, issues subpoena and subpoena duces tecum, rule upon offers of proof and receive relevant evidence, take or cause deposition to be taken whenever the ends of justice would be served thereby, regulate the course of the hearing, rule on any procedural request or similar matter and decide the complaint. In hearing the complaint, the mediation officer shall use every and all reasonable means to ascertain the facts in each complaints speedily and objectively in suits before courts. The complaint shall be decided within fifteen (15) days from the time the investigation was terminated.
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;
e) Provision of adequate rights and means of redress; and
f) Involvement of consumer representatives in the formulation of social and economic policies.
ARTICLE 4. Definition of Terms…
b) "Advertising" means the business of… making available to the public, through any form of mass media… information about the attributes, features… of consumer products…
n) "Consumer" means a… person who is a purchaser… or recipient of consumer products…
r) "Consumer product safety rule" means… a rule… declaring a consumer product banned hazardous product.
u) "Cosmetics" means (1) articles intended… for cleansing, beautifying, promoting attractiveness, or altering the appearance, and (2) …except… soap.
ae) "Expiry or expiration date" means the date stated on the label of… cosmetic… after which it is no longer permissible to sell them.
ap) "Irritant" means any substance… which, on immediate, prolonged, or repeated contact with normal living tissue will induce a local inflammatory reaction.
aq) "Label, labeling" means the display… for the purpose of giving information as to the identity, components, ingredients, attributes, directions for use, specifications, and such other information…
az) "Package" or "packaging" means any container or wrapping in which any consumer product is enclosed for use in delivery or display of that consumer product to retail purchasers…
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.
bs) "Strong sensitizer" means any substance which will cause… allergy or hypersensitivity…
bu) "Supplier" means a person, other than a consumer, who… promotes the disposition or supply of a consumer product…
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 surface.
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TITLE II [Untitled]
Now for the most interesting section…
Now for the most interesting section…
COSMETICS
ARTICLE 35. Adulterated Cosmetics - A cosmetic shall be deemed to be adulterated: a) if it bears or contains any poisonous or deleterious substance which may render it injurious to users under the condition of use prescribed in the labeling…
b) if it consists in whole or in part of any filthy putrid, or decomposed substance.
c) if it has been prepared, packed or held under unsanitary conditions…
d) if its container is composed, in whole or in part, of any poisonous or deleterious substance…
e) if it is not a hair dye, and it bears or contains color additive other than which is permissible.
f) if any of its substances have been (1) mixed or packed therewith so as to reduce its quality or strength or (2) substituted wholly or in parts therefore.
[Reading comparison: US Food, Drug & Cosmetics Act (FD&C Act, Chapter VI: Cosmetics, Subchapter VI - Cosmetics, Section 361. Adulterated Cosmetics). There is a striking similarity except for the excessive wordiness of the local Act]
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| adulterated cosmetics in a Bangladesh raid |
PROHIBITED ACTS AND PENALTIES
ARTICLE 40. Prohibited Acts - a) the manufacture, importation, exportation, sale, offering for sale, distribution, or transfer of any food, drug, device or cosmetic that is adulterated or mislabeled;
b) the adulteration or misbranding of any food, drug, device or cosmetic;
c) the refusal to permit entry or inspection as authorized by Article 36 to allow samples to be collected;
g) the alteration, mutilation, destruction, obliteration, or removal of the whole or any part of the labeling… while such product is held for sale (whether or not the first sale) and results in such product being adulterated or mislabeled;
l) [selling the cosmetic] beyond its expiration or expiry date;
ARTICLE 41. Penalties –
a) …imprisonment of not less than one (1) year but not more than five (5) years, or a fine of not less than Five thousand pesos (P5,000.00) but not more than Ten thousand pesos (P10,000.00)…
[Comment: Wow, really? Isn't it encouraging to commit adulteration and get away with it?]
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TITLE III - PROTECTION AGAINST DECEPTIVE, UNFAIR AND UNCONSCIONABLE SALES ACTS OR PRACTICES
CHAPTER IV - LABELING AND FAIR PACKAGING
ARTICLE 77. Minimum Labeling Requirements for Consumer Products… a) its correct and registered trade name or brand name;
b) its duly registered trademark;
c) its duly registered business name;
d) the address of the manufacturer, importer, repacker of the consumer product in the Philippines;
e) its general make or active ingredients;
f) the net quantity of contents…
g) country of manufacture, if imported; and
h) if a consumer product is manufactured, refilled or repacked under license from a principal, the label shall so state the fact.
[Comment: Generally complied with, except the disclosure of ingredients. Some products don't have ingredients list included, or some of them have exaggerated claims that cannot be substantiated at all.]
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ARTICLE 82. Manner of Placing Price Tags - Price tags, labels or markings must be written clearly, indicating the price of the consumer product per unit is pesos and centavos.
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| (from the web) |
ARTICLE 83. Regulations for Price Tags Placement… There shall be no erasures or alterations of any sort of price tags, labels or markings.
[Comment: I fell prey to this twice. First experience was a purchase in SM Manila Department Store... they just peeled off the old price, see below. The second occurrence, the print of the price tag faded due to age, so they just overwrote it. Looks unprofessional! Price tag is part of the package being sold too... and how would you feel when someone sells you something that looks like trash?]
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ARTICLE 87. Additional Labeling Requirements for Cosmetics…
a) expiry or expiration date;
b) whether or not it may be an irritant;
c) precautions or contra-indications; and
d) such other labeling requirements as the concerned department may deem necessary and reasonable.
[Comment: Different cosmetics have different lifespans. I read that unopened foundation has a life of 2 years. It's questionable that a local brand set its foundation's expiration to 5 years. In some cases, they don't indicate the year of expiration so they can get away with selling expired products. Fuck you! Here's a reference for you.]
ARTICLE 88. Special Labeling Requirements for Cosmetics - A cosmetic shall be deemed mislabeled:
a) if its labeling or advertising is false or misleading in any way;
d) if its container is so made, formed and filled as to be misleading; or
e) if its label does not state the common or usual name of its ingredients.
[Comment: A local brand offers BB Cream with Collagen. What irked me to the highest level was that there were nothing beneficial indicated in the ingredients list: no collagen, not even vitamins or anything that would substantiate their claims to reduce pimples, wrinkles,etc.! Reading Comparison: US FD&C Act, FD&C Act Chapter VI: Cosmetics, Subchapter VI - Cosmetics, Section 362]
CHAPTER V - LIABILITY FOR PRODUCT AND SERVICES
ARTICLE 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… 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 proportion 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.
[Comment: One day, I went to Watson's to purchase Ever Bilena Advance Foundation (the one with orange cap). The testers were okay, but the item I hauled home, upon opening, was already dried. Four days later, I stormed back to that branch in Isetann Recto and the supervisor inspected the product. After a minute or so, she told me I could replace it with any item worth the same or more, which was very fair. That's what I call excellent customer service!]
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| That little culprit! I exchanged it for Nichido's Two Way Cake (blue case) in Matte Beige |
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 imperfection;
d) the immediate reimbursement of the amount paid, with monetary updating without prejudice to losses and damages if any.
[Comment: In the example below, it is indicated to be 25 grams. Well, usually when it's liquid form they indicate the volume in 'mL' so I found it strange it's even weighed in 'grams'. But I think the weight was fair, what surprised me was that you really only get half the amount as the large pot would make you think. The packaging is misleading!!! See Article 88, Section D]
ARTICLE 104. Ignorance of Quality Imperfection - The supplier's ignorance of the quality imperfections due to inadequacy of the product and services does not exempt him from any liability.
[Comment: And yeah, consumers don't really care whatever excuse they have to dish out for any errors in label, quantity, defect, etc. Bottom line is... if it's bad, it's bad.]
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TITLE V - THE NATIONAL CONSUMER AFFAIRS COUNCIL
CHAPTER III - CONSUMER COMPLAINTS
ARTICLE 159. Consumer Complaints - The concerned department may commenced an investigation upon petition or upon letters complaint from any consumer… 
ARTICLE 163. Investigation Procedure -
a) The consumer arbitration officer shall conduct hearings on any complaint receive by him or referred by the Council.
b) Parties to the case shall be entitled to notice of the hearing…
c) The department shall afford all interested parties the opportunity to submit a statement of facts, arguments, offers of settlement or proposals of adjustments.
d) The consumer arbitration officer shall first and foremost ensure that the contending parties come to a settlement of the case.
e) In the event that a settlement has not been effected, the Mediation officer may now proceed to formally investigate, hear and decide the case.
f) The Consumer arbitration officer may summon witnesses, administer oaths and affirmations, issues subpoena and subpoena duces tecum, rule upon offers of proof and receive relevant evidence, take or cause deposition to be taken whenever the ends of justice would be served thereby, regulate the course of the hearing, rule on any procedural request or similar matter and decide the complaint. In hearing the complaint, the mediation officer shall use every and all reasonable means to ascertain the facts in each complaints speedily and objectively in suits before courts. The complaint shall be decided within fifteen (15) days from the time the investigation was terminated.
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Approved:
This bill which is a consolidation of Senate Bill No. 1820 and House Bill No. 33757, was finally passed by the Senate and the House of Representatives on February 6, 1992
[no photo available]
(SGD.) ANACLETO D. BADOY, JR.
House of Representatives
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| (SGD) RAMON V. MITRA Speaker of the House |
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| (SGD.) NEPTALI A. GONZALES President of the Senate of Representatives |
This bill which is a consolidation of Senate Bill No. 1820 and House Bill No. 33757, was finally passed by the Senate and the House of Representatives on February 6, 1992
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| (SGD.) CAMILO L. SABIO Secretary General Secretary of the Senate |
[no photo available]
(SGD.) ANACLETO D. BADOY, JR.
House of Representatives
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| Approved: April 13, 1992 (SGD.) CORAZO N C. AQUINO President of the Philippines |
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