Article 1. Short Title.- This Act shall be known as the "Consumer Act of the Philippines."
Art. 2. Declaration ofBasic Policy. - It is the policy of the State to protect theinterestsof the consumer, promote his general welfare and to establish standardsof conduct for business and industry. Towards this end, the State shallimplement measures to achieve the following objectives:
- (a) protection againsthazardsto health and safety;
(b) protection againstdeceptive,unfair and unconscionable sales acts and practices;
(c) provision ofinformationand education to facilitate sound choice and the proper exercise ofrightsby the consumer;
(d) provision ofadequaterights and means of redress; and
(e) involvement ofconsumerrepresentatives in the formulation of social and economic policies.
Art. 3. Construction.- The best interest of the consumer shall be considered in theinterpretationand implementation of the provisions of this Act, including itsimplementingrules and regulations.
Art. 4. Definition ofTerms. - For purposes of this Act, the term:
- (a) "Advertisem*nt"means the prepared and through any form of mass medium, subsequentlyapplied,disseminated or circulated advertising matter.
(b) "Advertising"means the business of conceptualizing, presenting or making availabletothe public, through any form of mass media, fact, data or informationaboutthe attributes, features, quality or availability of consumer products,services or credit.
(c) "Advertisingagencyor Agent" means a service organization or enterprise creating,conducting,producing, implementing or giving counsel on promotional campaigns orprogramsthrough any medium for and in behalf of any advertiser.
(d) "Advertiser"means the client of the advertising agency or the sponsor of theadvertisem*nton whose account the advertising is prepared, conceptualized, presentedor disseminated.
(e) "Agriculturalpurpose"means a purpose related to the production, harvest, processing,manufacture,distribution, storage, transportation, marketing, exhibition ordispositionof agricultural, fishery or marine products.
(f) "Amountfinanced" in a consumer credit sale constitutes the cash priceplusnon-financecharges less the amount of any downpayment whether made in cash or inpropertytraded in, or in a consumer loan the amount paid to, receivable by orpaidor payable to the buyer or to another person in his behalf.
(g) "Bannedhazardoussubstance" means (1) any toy or other articles intended for use bychildren, which are hazardous per se, or which bear or containsubstancesharmful to human beings; or (2) any hazardous substance intended orpackagedin a form suitable for use in the household, which the implementingagencyby regulation, classifies as "banned hazardous substance"notwithstandingthe existence of cautionary labels, to safeguard public health andsafety: Provided, That the implementing agency may, byregulation,exemptfrom this Act, articles which by reason of their functional purposerequirethe inclusion of the hazardous substance involved and which bearappropriatelabels giving adequate directions and warnings for their safe use.
Procedures for theissuance,amendment or repeal of regulations pursuant to clause (2) or paragraph(g) of this Article shall be governed by the rules and regulationspromulgatedby the Department of Health; Provided, That if the DepartmentofHealth finds that the distribution for household use of the hazardoussubstanceinvolved presents an imminent hazards to the public health, it maypublishin a newspaper of general circulation a notice of such finding and suchsubstance shall be deemed to be a "banned hazardous substance"pendingthe issuance of regulation formally banning such substance.
(h) "Batch" meansa quantity of any drug or device produced during a given cycle ofmanufacture.
(i) "Business name,firmname, or style" means any name or designation other than the truenameof a person, partnership, corporation or association which is used orsignedin connection with his/its business or in -
- (1) any written orprintedreceipt, including receipt for tax or business;
(2) any written orprintedcontract not verified by a notary public;
(3) any written orprintedevidence of any agreement or business transaction; and
(4) any sign orbillboardkept conspicuously exhibited in plain view in or at the place of thebusiness,announcing a firm name or business name or style.
(k) "Chaindistributionplans" or "pyramid sales schemes" means sales deviceswherebya person, upon condition that he makes an investment, is granted by themanufacturer of his representative a right to recruit for profit one ormore additional persons who will also be granted such right to recruitupon condition of making similar investments: Provided, That theprofits of the person employing such a plan are derived primarily fromthe recruitment of other persons into the plan rather than from thesaleof consumer products, services and credit: Provided, further,Thatthe limitation on the number of participants does not change the natureof the plan.
(l) "Closing outsale" means a consumer sale wherein the seller uses theannouncement tocreatethe impression that he is willing to give large discounts ormerchandisein order to reduce, dispose or close out his inventory and business.
(m) "Commerce"meansthe sale, lease, exchange, traffic or distribution of goods,commodities,productions, services or property, tangible or intangible.
(n) "Consumer" meansa natural person who is a purchaser, lessee, recipient or prospectivepurchaser,lessor or recipient of consumer products, services or credit.chanrobleslaw
(o) "Consumer credit"means any credit extended by a creditor to a consumer for the sale orleaseof any consumer product or service under which part or all of the priceor payment therefor is payable at some future time, whether in full orin installments.
(p) "Consumer loan"means a loan made by the lender to a person which is payable ininstallmentsfor which a finance charge is or may be imposed. This term includescredittransactions pursuant to an open-end-credit plan other than a sellercreditcard.
(q) "Consumerproductsand services" means goods, services and credits, debts orobligationswhich are primarily for personal, family, household or agriculturalpurposes,which shall include but not limited to food, drugs, cosmetics, anddevices.
(r) "Consumerproductsafety rule" means a consumer product safety standard described inArticle 78 or a rule under this Chapter declaring a consumer productbannedhazardous product.
(s) "Consumertransaction" means (1) (i) a sale, lease, assignment, award bychance, orotherdisposition of consumer products, including chattels that are intendedto be affixed to land, or of services, or of any right, title, orinteresttherein, except securities as defined in the Securities Act andcontractsof insurance under the Insurance Code, or (ii) a grant of provision ofcredit to a consumer for purposes that are primarily personal, family,household or agricultural, or (2) a solicitation or promotion by asupplierwith respect to a transaction referred to in clause (1).
(t) "Corrosive"meansany substance which on contact with living tissue will causedestructionof tissue by chemical action.
(u) "Cosmetics" means(1) articles intended to be rubbed, poured, sprinkled or sprayed on,introducedinto or otherwise applied to the human body or any part thereof forcleansing,beautifying, promoting attractiveness, or altering the appearance, and(2) article intended for use as a component of any such article exceptthat such term shall not include soap.
(v) "Counterfeitproduct"means any consumer product which, or the container or labeling ofwhich,without authorization, bears the trademark, trade name, or otheridentifyingmark, imprint, or device, or any likeness thereof, of a consumerproductmanufacturer, processor, packer, distributor, other than the person orpersons who in fact manufactured, processed, packed or distributed suchproduct and which thereby falsely purports or is represented to be theproduct of, or to have been packed or distributed by such consumerproductmanufacturer, processor, packer, or distributor.
(w) "Credit card"means any card, plate, coupon book or other credit device existing forthe purpose of obtaining money, property, labor or services on credit.
(x) "Credit Sale" meansa sale products, services or an interest in land to a person on creditwhere a debt is payable in installments or a finance charge is imposedand includes any agreement in the form of a bailment of products orleaseof products or real property if the bailee or lessee pays or agrees topay compensation for use a sum substantially equivalent to or in excessof the aggregate value of the products or real property involved and itis agreed that the bailee or lessee will become, or for no other or anominalconsideration has the option to become, the owner of the products orrealproperty upon full compliance with the terms of the agreement.
(y) "Credittransaction"means a transaction between a natural person and a creditor in whichrealor personal property, services or money acquired on credit and theperson'sobligation is payable in installment.
(z) "Creditor" meansany person engaged in the business of extending credit and shallincludeany person who as a regular business practice makes loans or sells orrentsproperty or services on a time, credit or installment basis, either asprincipal or as agent who requires as an incident to the extension ofcredit,the payment of a finance charge.
(aa) "Default ordelinquencycharge" means, with respect to a consumer credit transaction, thepenaltycharge payable by the consumer-debtor for failure to pay an amount orinstallmentin full on the date the same becomes due and demandable, or on orbeforethe period specified for the purpose in the consumer credit saledocuments.
(ab) "Device" meansan instrument, apparatus, implement, machine, contrivance, implant, invitro reagent, or other similar or related article, including anycomponent,part or accessory which is (1) recognized in the official United StatesPharmacopoeia-National Formulary (USP-NF) or any supplement to them;(2)intended for use in the diagnosis of disease or other condition or inthecure, mitigation, treatment or prevention of disease, in man or otheranimals;or (3) intended to affect the structure or any function of the body ofman or other animals, and which does not achieve any of its principalintendedpurposes through chemical action within or on the body of man or otheranimals and which is not dependent upon being metabolized for theachievementof any of its principal intended purposes.
(ac) "Distributor"means any person to whom a consumer product is delivered or sold forpurposesof distribution in commerce, except that such term does not include amanufactureror retailer of such product.
(ad) "Drugs"mean(1) articles recognized in the current official United StatesPharmacopoeia-NationalFormulary, official Homeopathic Pharmacopoeia of the United States,officialNational Drug Formulary, or any supplement to any of them; and (2)articlesintended for use in the diagnosis, cure, mitigation, treatment, orpreventionof 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 oranimals; and (4) articles intended for use as a component of anyarticlesspecified in clauses (1), (2), or (3) but do not include devices ortheircomponents, parts or accessories.
The term "drug" whenused in this Act shall include herbal and/or traditional drug. They aredefined as articles from indigenous plant or animal origin used in folkmedicine which are: (1) recognized in the Philippine NationalFormulary;(2) intended for use in the treatment or cure, mitigation, of diseasesymptoms,injury or bodily defect for use in man; (3) other than food, intendedtoaffect the structure of any function of the body of man; (4) put intofinishes,ready to use form by means of formulation, dosage or dosage directions;and (5) intended for use as a component of any of the articlesspecifiedin clauses (1), (2), (3) and (4) of this paragraph.
(ae) "Expiryorexpiration date" means the date stated on the label of food, drug,cosmetic, device or hazardous substance after which they are notexpectedto retain their claimed safety, efficacy and quality or potency andafterwhich it is no longer permissible to sell them.
(af) "Extremelyflammable"means any substance which has a flash point at or below negative sixandsix-tenths degrees centigrade as determined by the Tagliabue Open CubTester;and term "combustible" shall apply to any substance which has aflash point of above twenty-six and six-tenths degrees to and includingsixty-five and five-tenths degrees centigrade as determined by theTagliabueOpen Cub Tester: Provided, That the flammability orcombustibilityof solids and of the contents of self-pressurized containers shall bedeterminedthrough methods found by the implementing agency to be generallyapplicableto such materials or containers, respectively, and established byregulationsissued by it.
(ag) "Food" meansany substance, whether processed, semi-processed or raw, intended forhumanconsumption and includes chewing gum, drinks and beverages and anysubstancewhich 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 mayreasonablybe expected to result, directly or indirectly, in its becoming acomponentor otherwise affecting the characteristics of any food (including anysubstanceintended for use in producing, manufacturing, packing, processing,preparing,treating, packaging, transporting, or holding food; and including anysourceof radiation intended for any such use), if such substance is notgenerallyrecognized, among experts qualified as having been adequately shownthroughscientific procedures to be safe under the conditions of the intendeduse.
(ai) "Generic name"is the identification of drugs and medicines by their scientificallyandinternationally recognized active ingredients or by their officialgenericname as determined by the Bureau of Food and Drugs of the Department ofHealth.
(aj) "Guarantee" meansan expressed or implied assurance of the quality of the consumerproductsand services offered for sale or length of satisfactory use to beexpectedfrom a product or other similar specified assurances.
(ak) "Hazardoussubstance" means: (1) (i) Any substance or mixture of substanceswhich istoxic,corrosive, irritant, a strong sensitizer, flammable or combustible, orgenerates pressure through decomposition, heat or other means, if suchsubstance or mixture or substances any cause substantial injury orsubstantialillness during or as a proximate result of any customary or reasonablyforeseeable ingestion by children.
(ii) Any substance whichthe department finds to be under the categories enumerated in clause(1)(i) of this paragraph;
(iii) Any radioactivesubstance,if, with respect to such substance as used in a particular class ofarticleor as packaged, the Department, upon approval of the Departmentdeterminesby regulation that the substance is sufficiently hazardous to requirelabelingin accordance with this section in order to protect the public health;
(iv) Any toy or otherarticlesintended for use by children which the director may, by regulation,determinethe presence of an electrical, mechanical or thermal hazard.
(2) This term shall notapply to food, drugs, cosmetics, and devices nor to substances intendedfor use as fuels when stored in containers and used in the heating,cookingor refrigeration system of a house, but such term shall apply to anyarticlewhich is not in itself a pesticide but which is a hazardous substance,as construed in clause (a) of paragraph (1), by reason of bearing orcontainingsuch harmful substances described therein.chanrobleslaw
(al) "Highly Toxic"means any substance which has any of the following effects: (1)producesdeath within fourteen days to one-half or more than one-half of a groupof ten or more laboratory white rats each weighing between Two hundredand three hundred grams, at a single dose of fifty milligrams or lessperkilogram of body weight, when orally administered; or (2) producesdeathwithin fourteen days to one-half or more of a group of ten or morelaboratorywhite rats each weighing between two hundred and three hundred grams,wheninhaled continuously for a period of one hour or less at an atmosphericconcentration of two hundred parts per million by volume or less of gasor 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 thesubstance is used in any reasonably foreseeable manner, or (3) producesdeath within fourteen days to one-half or more of a group of ten ormorerabbits, when tested in a dosage of two hundred milligrams or less perkilogram of body weight, or when administered through continuouscontactwith the bare skin for twenty-four hours or less.
(am) "Homesolicitationsale" means consumer sales or leases which are personallysolicitedby any person or organization by telephone, person-to-person contact orby written or printed communication other than general advertising orconsummatedat the buyer's residence or a place of business, at the seller'stransientquarters, or away from a seller's regular place of business.
(an) "Immediatecontainer"means the container or package which is immediately after or near thesubstancebut does not include package liners.
(ao) "Imminentlyhazardousproduct" means a consumer product which presents an unreasonableriskof death, serious illness or severe personal injury.chanrobles law
(ap) "Irritant" meansany substance not corrosive within the meaning of paragraph (t) of thisArticle which, on immediate, prolonged or repeated contact with normalliving tissue will induce a local inflammatory reaction.
(aq) "Label,labeling" means the display of written, printed or graphic matteron anyconsumerproduct its immediate container, tag, literature or other suitablematerialaffixed thereto for the purpose of giving information as to identify,components,ingredients, attributes, directions for use, specifications and suchotherinformation as may be required by law or regulations.
(ar) "Manufacture"means and any and all operations involved in the production, includingpreparation, propagation, processing, formulating, filing, packing,repacking,altering, ornamenting, finishing or otherwise changing the container,wrapperor labeling of a consumer product in the furtherance of thedistributionof the same from the original place of manufacture to the person whomakesthe final delivery or sale to the ultimate consumer.
(as) "Manufacturer"means any person who manufactures, assembles or processes consumerproducts,except that if the goods are manufactured, assembled or processed foranotherperson who attaches his own brand name to the consumer products, thelattershall be deemed the manufacturer. In case of imported products, themanufacturer'srepresentatives or, in his absence, the importer, shall be deemed themanufacturer.
(at) "Mass media" refersto any means or methods used to convey advertising messages to thepublicsuch as television, radio, magazines, cinema, billboards, posters,streamers,hand bills, leaflets, mails and the like.chanrobleslaw
(au) "Materiallydefectiveproduct" means a product which, because of the pattern of thedefect,the number of defective products distributed in commerce and theseverityof the risk or otherwise, creates a substantial risk of injury to thepublic.
(av) "Mislabeledhazardoussubstance" means any hazardous substance intended, or packaged inaform suitable, for use in households, especially by children, thepackagingor labeling of which is in violation of the special packagingregulationissued by the Department of Health under Article 91 or if suchsubstancefails to bear a label which (1) states conspicuously (i) the name andtheexact address of the manufacturer, packer, distributor, or seller; (ii)the common or usual name of the hazardous substance or of eachcomponentwhich contributes substantially to the harmfulness of the substance,unlessthe Department by regulation approved by the Department permits orrequiresthe use of the recognized generic name; (iii) the signal word "danger"on substances which are extremely flammable, corrosive, or highlytoxic;(iv) the signal word "warning" or "caution" on allotherhazardous substances; (v) a frank statement of the principal hazard orhazards involved, as "flammable", "vapor harmful", "causesburns", "absorbed through skin", or similar wordingdescribingthe action to be followed or avoided, except when modified byregulationby the Department pursuant to Section 46; (vi) instructions, whennecessaryor appropriate, for first aid treatment; (vii) the word "poison" foranyhazardous substance which is defined as highly toxic; (viii)instructionsfor handling and storage of packages which require special care inhandlingor storage; and (ix) the statement "keep out of the reach ofchildren",or its practical equivalent, if the article is intended for use bychildrenand is not a banned hazardous substance, with adequate directions fortheprotection of children from the hazard involved. The aforementionedsignalwords, affirmative statements, description of precautionary measures,necessaryinstructions or other words or statements may be in the Englishlanguageor its equivalent in Filipino; and
(2) on which anystatementrequired under clause (1) of this paragraph are located prominently andin contrast by typography are located prominently and in contrast bytypography,layout, with other printed matters on the label.
(aw) "New Drugs"mean (1) any drug the composition of which is such that said drug isnotgenerally recognized among experts qualified by scientific training andexperience to evaluate the safety, efficacy and quality of drugs assafe,efficacious and of good quality for use under the conditionsprescribed,recommended, or suggested in the labeling thereof; or (2) any drug thecomposition of which is such that said drug, as a result of itspreviousinvestigations to determine its safety, efficacy and good quality foruseunder certain conditions, has become so recognized but which has not,otherwisethan in such investigations, been used to a material extent or for amaterialtime under new conditions.
"New Drugs" shallinclude drugs (a) containing a newly discovered active ingredient; (b)containing a new fixed combination of drugs, either by molecular orphysicalcombination; (c) intended for new indications; (d) an additional newmodeof administration; or (e) in an additional dosage or strength of thedosageform, which meets the conditions as defined under the new drug.
The definition of "newdrugs" covers to the extent applicable, "new devices".
(ax) "New Product"means a consumer product which incorporates a design, material or formof energy exchange which has not previously been used substantially inconsumer products and as to which there exists a lack of adequateinformationto determine the quality and safety of such product if used by theconsumers.
(ay) "Open-end-creditplan" means a consumer credit extended on an account pursuant to aplan under which:
- (1) the creditor maypermitthe person to make purchases or obtain loans, from time to time,directlyfrom the creditor or indirectly by use of credit card, check or otherdevice;
(2) the person has theprivilegeof paying the balance; or
(3) a finance chargemaybe computed by the creditor from time to time on an outstanding unpaidbalance.
- (1) shippingcontainersor wrappings used solely for the transportation of any consumer productin bulk or in big quantities by manufacturers, packers, or processorstowholesale retail distributors thereof;
(2) shippingcontainersor outer wrappings used by retailers to ship or deliver any product toretail costumers if such containers and wrappings bear no printedmatterpertaining any particular product;
(3) The wrappers orcontainersof consumer products sold in small quantities by small retail stores tothe consumer which by tradition are wrapped with ordinary paper.
(bb) "Poisonoussubstance"means any substance capable of destroying life or seriously endangeringhealth when applied externally to the body or introduced internally inmoderate doses.
(bc) "Pricecomparison"means the direct comparison in any advertisem*nt of a seller's currentprice for consumer products or services with any other price orstatementof value for such property or services expressed in pesos, centavos,fractionsor percentages.
(bd) "Price tag"means any device, written, printed, affixed or attached to a consumerproductor displayed in a consumer repair or service establishment for thepurposeof indicating the retail price per unit or service.
(be) "Principaldisplaypanel" means that part of the label that is most likely to bedisplayed,presented, shown or examined under normal and customary conditions ofdisplayfor retail or sale.
(bf) "Privatelabeler"means an owner of a brand or trademark on the label of consumer productother than a manufacturer of the product.
A consumer product bearsa private label if (1) the product or its container is labeled with abrandor trademark of a person other than its manufacturer; or (2) the brandor trademark of the manufacturer of such product does not appear onsuchlabel.
(bg) "Radioactivesubstance"means any substance which emits ionizing radiation.
(bh) "Referralselling"means the sales device employed by the sellers wherein the buyer isinducedto acquire goods or services by representing that after the acquisitionof the goods or services, he will receive a rebate, commission or otherbenefit in return for the submission of names of potential customers orotherwise helping the seller enter into other sales, if the receipt ofsuch benefit is contingent on an event occurring after the sale is made.
(bi) "Repair andservicefirm" means any business establishment, engaged directly orindirectly,in the repair, service or maintenance of any consumer product.
(bk) "Retailer" meansa person engaged in the business of selling consumer products directlyto consumers.
(bl) "Sale ordistribution"shall mean an act made by a manufacturer or seller, or their respectiverepresentative or agent, to make available consumer products, servicesor credit to the end consumers under a consumer sale transaction. Itshallnot include sampling or any distribution not for sale.
(bm) "Sales Promotion"means techniques intended for broad consumer participation whichcontainpromises of gain such as prizes, in cash or in kind, as reward for thepurchase of a product, security, service or winning in contest, game,tournamentand other similar competitions which involve determination of winner/sand which utilize mass media or other widespread media of information.It also means techniques purely intended to increase the sales,patronageand/or goodwill of a product.
(bn) "Seller"meansa person engaged in the business of selling consumer products directlyto consumers. It shall include a supplier or distributor if (1) theselleris a subsidiary or affiliate of the supplier or distributor; (2) thesellerinterchanges personnel or maintains common or overlapping officers ordirectorswith the supplier or distributor; or (3) the supplier or distributorprovidesor exercises supervision, direction or control over the sellingpracticesof the seller.
(bo) "Service"shallmean, with respect to repair and service firms, services supplied inconnectionwith a contact for construction, maintenance, repair, processing,treatmentor cleaning of goods or of fixtures on land, or distribution of goods,or transportation of goods.
(bp) "Services"meansservices that are the subject of a consumer transaction, eithertogetherwith, or separate from any kind of personal property, whether tangibleor intangible.
(bq) "Specialpackaging"means packaging that is designed or constructed to be significantlydifficultfor children five years of age to open or to obtain a toxic or harmfulamount of the substance contained therein within a reasonable time andnot difficult for normal adults to use properly but does not meanpackagingwhich all such children cannot open or obtain a toxic or harmful amountwithin a reasonable time.
(br) "Standard"meansa set of conditions to be fulfilled to ensure the quality and safety ofa product;
(bs) "Strongsensitizer"means any substance which will cause on normal living tissue, allergyorphotodynamic quality of hypersensitivity which becomes evident onreapplicationof the same substance, to be designated as such by the implementingagency.Before designating any substance as a strong sensitizer, theimplementingagency, upon consideration of the frequency of occurrence and severityof the reaction, shall find that the substance has a significantcapacityto cause hypersensitivity.
(bt) "Substandardproduct"means a product which fails to comply with an applicable consumerproductsafety rule which creates a substantial risk of injury to the public.
(bu) "Supplier"meansa person, other than a consumer, who in the course of his business,solicits,offers, advertises, or promotes the disposition or supply of a consumerproduct or who other than the consumer, engages in, enforces, orotherwiseparticipates in a consumer transaction, whether or not any privity ofcontractactually exists between that person and the consumer, and includes thesuccessor to, or assignee of, any right or obligation on of thesupplier.
(bv) "Technicalpersonnelof repair and service enterprise" shall mean a machine ortechnicianor any person who works or renders diagnosis or advice in connectionwithrepair, service and maintenance of the consumer products in a repairandservice firm.chanrobles law
(bw) "Toxicsubstance" means any substance other than a radioactive substancewhich cancauseinjury, illness or death to man through ingestion, inhalation orabsorptionthrough 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 advertisem*nt,sign,label, poster or otherwise for the purpose of enabling the public todistinguishthe business of the person who owns and uses said trade name ortrademark.
Art. 5. Declaration ofPolicy. - It shall be the duty of the State:
- (a) to develop andprovidesafety and quality standards for consumer products, includingperformanceor use-oriented standards, codes of practice and methods of tests;
(b) to assist theconsumerin evaluating the quality, including safety, performance andcomparativeutility of consumer products;
(c) to protect thepublicagainst unreasonable risks of injury associated with consumer products;
(d) to undertakeresearchon quality improvement of products and investigation into causes andpreventionof product related deaths, illness and injuries;
(e) to assure the publicof the consistency of standardized products.
Art. 6. ImplementingAgencies. - The provisions of this Article and its implementingrulesand regulations shall be enforced by:
- (a) the Department ofHealthwith respect to food, drugs, cosmetics, devices and substances;
(b) the Department ofa*griculturewith respect to products related to agriculture; and
(c) the Department ofTradeand Industry with respect to other consumer products not specifiedabove.
Art. 7. Promulgation andAdoption of Consumer Product Standards. - The concerned departmentshall establish consumer product quality and safety standards whichshallconsist of one or more of the following:
- (a) requirements toperformance,composition, contents, design, construction, finish, packaging of aconsumerproduct;
(b) requirements as tokind,class, grade, dimensions, weights, material;
(c) requirements as tothemethods of sampling, tests and codes used to check the quality of theproducts;
(d) requirements as toprecautionsin storage, transporting and packaging;
(e) requirements that aconsumer product be marked with or accompanied by clear and adequatesafetywarnings or instructions, or requirements respecting the form ofwarningsor instructions.
For this purpose, the concerneddepartment shall adopt existing government domestic product quality andsafety standards: Provided, That in the absence of suchstandards,the concerned department shall form specialized technical committeescomposedof equal number of representatives from each of the Government,businessand consumer sectors to formulate, develop and purpose consumer productquality and safety standards. The said technical committees shallconsultwith the private sector, which may, motu proprio, develop itsownquality and safety standards that shall be subject or agencies afterpublichearings have been conducted for that purpose; and shall likewiseconsiderexisting international standards recognized by the PhilippineGovernment.
Art. 8. Publication ofConsumer Product Standards. - The concerned departments shall,uponpromulgation of the above standards, publish or cause the publicationofthe same in two (2) newspapers of general circulation at least once aweekfor a period of not less than one (1) month. It may likewise conduct aninformation campaign through other means deemed effective to ensure theproper guidance of consumers, businesses, industries and other sectorsconcerned.
Art. 9. Effectivity ofRules. - (a) Each consumer product standard or safety rule shallspecifythe date such rule is to take effect, which shall not exceed ninety(90)days from the date promulgated unless the concerned department funds,forgood cause shown, that a later effective date is in the public interestand publishes its reasons for such finding. After which, it shall nolongerbe legal to, or cause to, sell or distribute the consumer product notcomplyingwith the standards or rules.
(b) The department may,by regulation, prohibit a manufacturer from stockpiling consumerproductsso as to prevent such manufacturer from circumventing the purposes ofthisparagraph. The term "stockpiling" means manufacturing orimportinga product between the date of promulgation of its consumer productsafetyrule and its effective date, at a rate which is significantly greaterthanthe rate at which such product was produced or imported during a baseperiodas prescribed in the regulation under this paragraph, ending before thedate of promulgation of consumer product safety rule.
Art. 10. Injurious,Dangerousand Unsafe Products. - Whenever the departments find, by their owninitiative or by petition of a consumer, that a consumer product isfoundto be injurious, unsafe or dangerous, it shall, after due notice andhearing,make the appropriate order for its recall, prohibition or seizure frompublic sale or distribution: Provided, That, in the sounddiscretionof the department it may declare a consumer product to be imminentlyinjurious,unsafe or dangerous, and order is immediate recall, ban or seizure frompublic sale or distribution, in which case, the seller, distributor,manufactureror producer thereof shall be afforded a hearing within forty-eight (48)hours from such order.
The ban on the sale anddistribution of a consumer product adjudged injurious, unsafe ordangerous,or imminently injurious, unsafe or dangerous under the precedingparagraphshall stay in force until such time that its safety can be assured ormeasuresto ensure its safety have been established.
Art. 11. Amendment andRevocation of Declaration of the Injurious, Unsafe or DangerousCharacterof a Consumer Product. - Any interested person may petition theappropriatedepartment to commence a proceeding for the issuance of an amendment orrevocation of a consumer product safety rule or an order declaring aconsumerproduct injurious, dangerous and unsafe.
In case the department,upon petition by an interested party or its own initiative and afterduenotice and hearing, determines a consumer product to be substandard ormaterially defective, it shall so notify the manufacturer, distributoror seller thereof of such finding and order such manufacturer,distributoror seller to:
- (a) give notice to thepublicof the defect or failure to comply with the product safety standards;and
(b) give notice to eachdistributor or retailer of such product.
The department shall also directthe manufacturer, distributor or seller of such product to extend anyorall of the following remedies to the injured person:
- (a) to bring suchproductinto conformity with the requirements of the applicable consumerproductstandards or to repair the defect in order to conform with the same;
(b) to replace theproductwith a like or equivalent product which complies with the applicableconsumerproduct standards which does not contain the defect;
(c) to refund thepurchaseprice of the product less a reasonable allowance for use; and
(d) to pay the consumerreasonable damages as may be determined by the department.
The manufacturer, distributoror seller shall not charge a consumer who avails himself of the remedyas provided above of any expense and cost that may be incurred.
Art. 12. Effectivityof Amendments and Revocation of Consumer Product Safety Rule. - Anyamendment or revocation of a consumer product safety rule made by theconcerneddepartment shall specify the date on which it shall take effect whichshallnot exceed ninety days from the date of amendment or revocation ispublishedunless the concerned department finds, for a good cause shown, that alatereffective date is in the public interest and publishes its reasons forsuch finding. The department shall promulgate the necessary rules fortheissuance, amendment or revocation of any consumer product safety rule.chanrobles law
Art. 13. New Products.- The concerned department shall take measures to make a list of newconsumerproducts and to cause the publication by the respective manufacturersorimporters of such products a list thereof together with thedescriptionsin a newspaper of general circulation.
Art. 14. Certificationof Conformity to Consumer Product Standards. - The concerneddepartmentshall aim at having consumer product standards established for everyconsumerproduct so that consumer products shall be distributed in commerce onlyafter inspection and certification of its quality and safety standardsby the department. The manufacturer shall avail of the PhilippineStandardCertification Mark which the department shall grant after determiningtheproduct's compliance with the relevant standard in accordance with theimplementing rules and regulations.
Art. 15. ImportedProducts.- (a) Any consumer product offered for importation into the customs ofthe Philippine territory shall be refused admission if such product:
- (1) fails to complywithan applicable consumer product quality and safety standard or rule;
(2) is or has beendeterminedto be injurious, unsafe and dangerous;
(3) is substandard; or
(4) has materialdefect.
(b) Samples of consumer productsbeing imported into the Philippines in a quantity necessary forpurposesof determining the existence of any of the above causes fornon-admissionmay be obtained by the concerned department or agency without chargefromthe owner or consignee thereof. The owner or consignee of the importedconsumer product under examination shall be afforded an opportunity toa hearing with respect to the importation of such products into thePhilippines.If it appears from examination of such samples or otherwise that animportedconsumer product does not conform to the consumer product safety ruleoris injurious, unsafe and dangerous, is substandard or has a materialdefect,such product shall be refused admission unless the owner or theconsigneethereof manifests under bond that none of the above ground fornon-admissionexists or that measures have been taken to cure them before they aresold,distributed or offered for sale to the general public.
Any consumer product, thesale or use of which has been banned or withdrawn in the country ofmanufacture,shall not be imported into the country.
(c) If it appears that anyconsumer product which may not be admitted pursuant to paragraph (a) ofthis Article can be so modified that it can already be accepted, theconcerneddepartment may defer final examination as to the admission of suchproductfor a period not exceeding ten (10) days, and in accordance with suchregulationsas the department and the Commissioner of Customs shall jointlypromulgate,such product may be released from customs custody under bond for thepurposeof permitting the owner or consignee an opportunity to so modify suchproduct.
(d) All modificationstakenby an owner or consignee for the purpose of securing admission of animportedconsumer product under paragraph (c) shall be subject to thesupervisionof the concerned department. If the product cannot be so modified, orifthe owner or consignee is not proceeding to satisfactorily modify suchproduct, it shall be refused admission and the department may directredeliveryof the product into customs custody, and to seize the product if not soredelivered.
(e) Imported consumerproductsnot admitted must be exported, except that upon application, theCommissionerof Customs may permit the destruction of the product if, within areasonabletime, the owner or consignee thereof fails to export the same.
(f) All expenses inconnectionwith the destruction provided for in this Article, and all expenses inconnection with the storage, cartage or labor with respect to anyconsumerproduct refused admission under this Article, shall be paid by theowneror consignee and, in default of such payment, shall constitute a lienagainstany future importation made by such owner or consignee.
Art. 16. ConsumerProductsfor Export. - The preceding article on safety not apply to anyconsumerproduct if:
- (a) it can be shown thatsuch product is manufactured, sold or held for sale for export from thePhilippines, or that such product was imported for export, unless suchconsumer product is in fact distributed in commerce for use in thePhilippines;and
(b) such consumerproductor the packaging thereof bears a stamp or label stating that suchconsumerproduct is intended for export and actually exported.
Art. 17. Powers, functionsand duties. - In addition to their powers, functions and dutiesunderexisting laws, the concerned department shall have the followingpowers,functions and duties:
- (a) to administer andsupervisethe implementation of this Article and its implementing rules andregulations;
(b) to undertakeresearches,develop and establish quality and safety standards for consumerproductsin coordination with other government and private agencies closelyassociatedwith these products;
(c) to inspect andanalyzeconsumer products for purposes of determining conformity to establishedquality and safety standards;
(d) to levy, assess,collectand retain fees as are necessary to cover the cost of inspection,certification,analysis and tests of samples of consumer products and materialssubmittedin compliance with the provisions of this Article;
(e) to investigate thecausesof and maintain a record of product-related deaths, illnesses andinjuriesfor use in researches or studies on the prevention of suchproduct-relateddeaths, illnesses and injuries.
(f) to accreditindependent,competent non-government bodies, to assist in (1) monitoring the marketfor the presence of hazardous or non-certified products and other formsof violations of Article 18; and (2) other appropriate means to expandthe monitoring and enforcement outreach of the department in relationtoits manpower, testing and certification resources at a given time.
(g) to accreditindependentcompetent testing laboratories.
- (a) manufacture forsale,offer for sale, distribute in commerce, or import into the Philippinesany consumer product which is not in conformity with an applicableconsumerproduct quality or safety standard promulgated in this Act;
(b) manufacture forsale,offer for sale, distribute in commerce, or import into the Philippinesany consumer product which has been declared as banned consumer productby a rule in this Act;
(c) refuse access to orcopying of pertinent records or fail or refuse to permit entry of orinspectionby authorized officers or employees of the department;
(d) fail to comply withan order issued under Article II relating to notifications ofsubstantialproduct hazards and to recall, repair, replacement or refund of unsafeproducts;
(e) fail to comply withthe rule prohibiting stockpiling.
Art. 19. Penalties. -(a) Any person who shall violate any provision of Article 18 shall uponconviction, be subject to a fine of not less than One thousand pesos(P1,000.00)but not more than Ten thousand pesos (P10,000.00) or imprisonment ofnotless than two (2) months but not more than one (1) year, or both uponthediscretion of the court.
If the offender is analien,he shall be deported after service of sentence and payment of finewithoutfurther deportation proceedings.
(b) In case the offenderis a naturalized citizen, he shall, in addition to the penaltyprescribedherein, suffer the penalty of cancellation of his naturalizationcertificateand its registration in the civil register and immediate deportationafterservice of sentence and payment of fine.
(c) Any director, officeror agent of a corporation who shall authorize, order or perform any ofthe acts or practices constituting in whole or in part a violation ofArticle18, and who has knowledge or notice of noncompliance received by thecorporationfrom the concerned department, shall be subject to penalties to whichthatcorporation may be subject.
In case the violation iscommitted by, or in the interest of a foreign juridical person dulylicensedto engage in business in the Philippines, such license to engage inbusinessin the Philippines shall immediately be revoked.
Art. 21. ImplementingAgency. - In the implementation of the foregoing policy, the State,through the Department of Health, hereby referred as the Department,shall,in accordance with the provisions of this Act:
- (a) establish standardsand quality measures for food, drugs, devices and cosmetics;
(b) adopt measures toensurepure and safe supply of foods and cosmetics, and safe, efficacious andgood quality of drugs and devices in the country;
(c) adopt measures toensurethe rational use of drugs and devices, such as, but not limited to,banning,recalling or withdrawing from the market drugs and devices which areunregistered,unsafe, inefficacious or of doubtful therapeutic value, the adoption ofan official National Drug Formulary, and the use of generic names inthelabeling of drugs;
(d) strengthen theBureauof Food and Drugs.
Art. 22. Rules and Regulationson Definitions and Standards. - Whenever in the judgment of theDepartment,such action will promote honesty and fair dealing in the interest ofconsumers,it shall promulgate rules and regulations fixing and establishing areasonabledefinition and standard of identity, a reasonable standard of qualityand/orreasonable standard of fill of containers for food, drugs, cosmetics ordevices.
Art. 23. AdulteratedFood. - A food shall be deemed to be adulterated:
(a) (1) if it bears orcontainsany poisonous or deleterious substance which may render it injurious tohealth; but in case the substance is not an added substance, such foodshall not be considered adulterated under this clause if the quantityofsuch substance does not ordinarily render it injurious to health;
(2) if it bears orcontainsany added poisonous or deleterious substance other than one which is(i)a pesticide chemical in or on a raw agricultural commodity, (ii) a foodadditive, (iii) a color additive, for which tolerances have beenestablishedand it conforms to such tolerances;
(3) if it consists inwholeor in part of any filthy, putrid or decomposed substance, or if it isotherwiseunfit for food;
(4) if it has beenprepared,packed or held under unsanitary conditions whereby it may have becomecontaminatedwith filth, or whereby, it may have been rendered injurious to health;
(5) if it is, in whole orpart, the product of a diseased animal or of an animal which has diedotherthan by slaughter;
(6) if its container iscomposed, in whole or in part, of any poisonous or deleterioussubstancewhich may render the contents injurious to health; or
(7) if it has passed itsexpiry date.
(b) (1) If any valuableconstituent has been, in whole or in part, omitted or abstractedtherefromand the same has not been substituted, by any healthful equivalent ofsuchconstituent;
(2) if any substance, nota valuable constituent, has been added or substituted or in parttherefor;
(3) if damage orinferiorityhas been concealed in any manner; or
(4) if any substance hasbeen added thereto or packed therewith so as to increase its bulk orweight,reduce its quality or strength, or make it appear better or of greatervalue than it is.
(c) if it is, or bears orcontains a color additive which is unsafe under existing regulations: Provided,That the Department shall promulgate regulations providing for thelistingof color additives which are harmless and suitable for use in food forwhich tolerances have been established;
(d) if it isconfectionary,and it bears or contains any alcohol or non-nutritive article orsubstanceexcept harmless coloring, harmless flavoring, harmless resinous glassnotin excess of four-tenths (4/10) of one per centum (1%) natural gum andpectin: Provided, That this clause shall not apply to a safenon-nutritivearticle or substance if, in the judgment of the Department as providedby regulations, (1) such article or substance is of practicalfunctionalvalue in the manufacture, packaging or storage of such confectionery,(2)if the use of the substance does not promote deception of the consumeror otherwise results in adulteration or mislabeling in violation of anyprovision of this Act, and (3) would not render the product injuriousorhazardous to health: Provided, further, That this paragraphshallnot apply to any confectionery by reason of its containing less thanone-half(1/2) of one per centum (1%) by volume of alcohol, derived solely fromthe use of flavoring extracts, or to any chewing gum by reason of itscontainingharmless non-nutritive masticatory substance: Provided, finally,That the Department may, for the purpose of avoiding or resolvinguncertaintyas to the application of this clause, promulgate regulations allowingorprohibiting the use of particular non-nutritive substances;
(e) if it isoleomargarine,margarine or butter and any of the raw materials used therein consistsin whole or in part of any filthy, putrid or decomposed substance, orsucholeomargarine, margarine or butter is otherwise unfit for food;
(f) if it has not beenpreparedin accordance with current acceptable manufacturing practiceestablishedby the Department through regulations.
Art. 24. Regulation ofUnprocessed Food. - The provincial, municipal and city governmentsshall regulate the preparation and sale of meat, fresh fruits, poultry,milk, fish, vegetables and other foodstuff for public consumption,pursuantto the LocalGovernmentCode.
Art. 25. Tolerance forPoisonous Ingredients in Food. - Any poisonous or deleterioussubstanceadded to any food shall be deemed to be unsafe, except when suchsubstanceis required or can not be avoided in its production or can not beavoidedby good manufacturing practice. In such case, the Department shallpromulgateregulations limiting the quantity therein in such extent as he findsnecessaryfor the protection of public health, and any quantity exceeding thelimitsso fixed shall be deemed to be unsafe. In determining the quantity ofsuchadded substance to be tolerated in different articles of food, theDepartmentshall take into account the extent to which the use of such article isrequired or can not be avoided in the production or manufacture of sucharticles and the other ways in which the consumer may be affected bythesame or other poisonous or deleterious substance.
Art. 26. Unsafe FoodAdditives, Exceptions for Conformity with Regulation. - A foodadditive,with respect to any particular use or intended use, shall be deemedunsafeunless:chanrobles law
(a) it and its use orintendeduse conforms to the terms of an exemption for being solely intended forinvestigational use by qualified experts; or
(b) it and its use orintendeduse is in conformity with a regulation issued by the Departmentprescribingthe conditions under which such additives may be safely used.
Art. 27. Petition forRegulation of Food Additive. - Any person may, with respect to anyintended use of a food additive, file with the Department a petitionproposingthe issuance of a regulation prescribing the conditions under whichsuchadditives may be safely used.
The Department shall (1)establish a regulation prescribing, with respect to one or moreproposeduses of the food additive involved, (i) the conditions under which afoodadditive may be safely used including, but not limited to,specificationsas to the particular food, classes of food, in which such additive maybe used, (ii) the maximum quantity which may be used, or permitted toremainin or on such food; (iii) the manner in which such additive may beaddedto or used in or on such food, and (iv) any directions or otherlabelingor packaging requirement for such additive deemed necessary to assurethesafety of such use, and shall notify the petitioner of such order andthereasons for such action; or (2) deny the petition and notify thepetitionerof and the reasons for such action.
The Department may, at anytime upon his own initiative, issue a regulation prescribing, withrespectto any particular food additive, the conditions under which suchadditivemay be safely used and the reasons thereof, and cause the publicationofthe same.
Art. 28. Effectivityof Regulations. - The regulations promulgated under the precedingarticlesshall take effect fifteen (15) days after its publication in anewspaperof general circulation but the Department may stay such effectivity if,after issuance of such order, a hearing is sought by any personadverselyaffected by such order.
(a) (1) if it contains inwhole or in part of any filthy, putrid, or decomposed substance whichmayaffect its safety, efficacy or good quality; or (2) if it has beenmanufactured,prepared or held under unsanitary conditions whereby it may have beencontaminatedwith dirt or filth or whereby it may have been rendered injurious tohealth;or (3) if its container is composed, in whole or in part, of anypoisonousor deleterious substance which may render the contents injurious tohealth;or (4) if it bears or contains any color other than a permissible oneasdetermined by the Department, taking into consideration standards ofsafety,efficacy or good quality.
(b) If it purportsto be or is represented as a drug, the name of which is recognized inanofficial compendium, and its strength differs from, or its safety,efficacy,quality or purity falls below the standards set forth in suchcompendium,except that whenever tests or methods of assay as prescribed are, inthejudgment of the Department, insufficient for the making of suchdetermination,the Department shall promulgate regulations prescribing appropriatetestsor methods of safety, efficacy, quality or purity shall be made. Nodrugdefined in an official compendium shall be deemed to be adulteratedunderthis paragraph because it differs from the standards of strength,safety,efficacy, quality or purity therefor set forth in such compendium, ifitsdifference in strength, safety, efficacy, quality or purity from suchstandardsis plainly stated in its label and approved for registration as such.
(c) If it is not subjectto the provisions of paragraph (b) and its strength differs from, oritsefficacy, quality or purity falls below, that which it purports or isrepresentedto possess.
(d) If a drug or deviceand any substance has been mixed or packed therewith, or any substancehas been substituted wholly or in part thereof, so as to reduce itssafety,efficacy, quality, strength or purity.
(e) If the methods usedin, or the facilities or controls used for its manufacture or holdingdonot conform to or are not operated or administered in conformity withcurrentgood manufacturing practice to assure that such drug meets therequirementsof this Act as to safety, quality and efficacy, and has the identityandstrength, and meets the quality and purity characteristics which itpurportsor is represented to possess.
Art. 30. Exemption inCase of Drugs and Devices. - (a) The Department is hereby directedto promulgate regulations exempting from any labeling or packagingrequirementof this Act drugs and devices which are, in accordance with thepracticeof the trade, to be processed, labeled or repacked in substantialquantitiesat establishments other than those where originally processes orpacked,on conditions that such drugs and devices are not adulterated ormislabeledunder the provisions of this Act upon removal from such processing,labelingor repacking establishment.
(b) (1) Drugs intended foruse by man which:
- (i) are habit-forming;
(ii) because of theirtoxicityor other potentiality for harmful effect, or method of their use is notsafe for use except under the supervision of practitioner licensed bylawto administer such drug;
(iii) are new drugswhoseapplications are limited to investigational use;
shall be dispensed only (a)upon written prescription of a practitioner licensed by law toadministersuch drug, or (b) upon an oral prescription of such practitioner whichis reduced promptly to writing and filed by the pharmacist, or (c) byrefillingany such written or oral prescription if such refilling is authorizedbythe prescriber either in the original prescription or by oral orderwhichis reduced promptly to writing and filed by the pharmacist. The act ofdispensing a drug contrary to the provisions of this paragraph shall bedeemed to be an act which results in the drug being mislabeled whileheldfor sale.
(2) Any drug dispensed byfilling or refilling a written prescription of a practitioner licensedby law to administer such drug shall be exempt from the requirements ofArticle 89, except paragraphs (a), (h), (2) and (3), and the packagingrequirements of paragraphs (f) and (g), if the drug bears a labelcontainingthe name and address of the dispenser, the serial number and the dateofthe prescription or its filling, the name of the prescriber and, ifstatedin the prescription the name of the patient and the directions for useand cautionary statements, if any, container in such prescription.chanrobleslaw
(3) The Department may,by regulation, remove drugs subject to Article 89 (d) and Article 31fromthe requirements of sub-article (b) (1) of this Article, when suchrequirementsare not necessary for the protection of the public health.
(4) A drug which issubjectto sub-article (b) (1) of this Article shall be deemed to be mislabeledif any time prior to dispensing, its label fails to bear the statement"Caution: Should not be dispensed without prescription." A drugto which sub-article (b) (1) of this Article does not apply shall dedeemedto be mislabeled it at any time prior to dispensing, its label bearsthecaution statement quoted in the preceding sentence.
Art. 31. Licensing andRegistration. - (a) No person shall manufacture, sell, offer forsale,import, export, distribute or transfer any drug or device, unless anapplicationfiled pursuant to sub-article (b) hereof is effective with respect tosuchdrug or device.
(b) Any person may filewith the Department, through the Department, an application under oathwith respect to any drug or device subject to the provisions ofsub-article(a) hereof. Such persons shall submit to the Department: (1) fullreportsof investigations which have been made to show whether or not such drugor device is safe, efficacious and of good quality for use based onclinicalstudies conducted in the Philippines; (2) a full list of the articlesusedas components of such drug or device; (3) a full statement of thecompositionof such drug or device; (4) a full description of the methods used inandthe facilities and controls used for the manufacture of such drug ordevice;(5) such samples of such drug or device and of the articles used ascomponentsthereof as the Department may require; (6) specimens of the labelingproposedto be used for such drug or device; and (7) such other requirements asmay be prescribed by regulations to ensure safety, efficacy and goodqualityof such drug and device.
(c) Within one hundredeighty(180) days after the filing of an application under this sub-article,orsuch additional period as may be agreed upon by the Department and theapplicant, the Department shall either (1) approve the application ifhethen finds that none of the grounds for denying approval specified insub-article(d) applies, or (2) give the applicant notice of an opportunity for ahearingbefore the Department under sub-article (d) on the question whethersuchapplication is approvable.
(d) If the Departmentfinds,after due notice to the applicant and giving him an opportunity for ahearing,that (1) the reports of the investigations which are required to besubmittedto the Department pursuant to sub-article (b) hereof, do not includeadequatetests by all methods reasonably applicable to show whether or not suchdrug or device is safe, efficacious and of good quality for use undertheconditions prescribed, recommended or suggested in the proposedlabelingthereof; (2) the results of such test show that drug or device isunsafe,inefficacious or of doubtful therapeutic value for use under suchconditionsor do not show that such drug or device is safe, methods used in, andthefacilities and controls used for the manufacture of such drug or deviceare inadequate to preserve its identity, strength, quality and purity;or (4) upon the basis of the information submitted to him as part oftheapplication, or upon the basis of any other information before him withrespect to such drug or device, he has insufficient information todeterminewhether such drug or device is safe, efficacious or of good equalityforuse under such conditions; or (5) evaluated on the basis of theinformationsubmitted to him as part of the application, and any other informationbefore him with respect to such drug or device, there is a lack ofsubstantialevidence that the drug or device will have the effect it purports or isrepresented to have under the conditions of use prescribed, recommendedor suggested in the proposed labeling thereof; or (6) based on a fairevaluationof all material facts, such labeling is false or misleading in any way;he shall issue an order disapproving the application.
(e) The effectiveness ofan application with respect to any drug or device shall, after duenoticeand opportunity for hearing to the applicant, by order of theDepartmentbe suspended if it finds (1) that clinical experience, tests by newmethods,or tests by methods not deemed reasonably applicable when suchapplicationbecame effective show that such drug or device is unsafe or ineffectivefor use under the conditions of use upon the basis of which theapplicationbecame effective, or (2) that the application contains any untruestatementof a material fact. The order shall state the findings upon which it isbased.
(f) The Department shallpromulgate regulations for exempting from the operation of this Articledrugs and devices intended solely for investigational used by expertsqualifiedby scientific training and experience to investigate the safety andeffectivenessof drugs and devices.
(g) No person shallmanufacture,sell, offer for sale, import, export, distribute or transfer any drugordevice without first securing a license to operate from the Departmentafter due compliance with technical requirements in accordance with therules and regulations promulgated by the Department pursuant to thisAct.
(h) No drug or deviceshallbe manufactured, sold, offered for sale, imported, exported,distributedor transferred, unless registered by the manufacturer, imported ordistributorthereof, in accordance with rules and regulations promulgated by theDepartmentpursuant to this Act. The provisions of Article 31 (b), (d) and (e), tothe extent applicable, shall govern the registration of such drugs anddevices.
(i) The Department shallpromulgate a schedule of fees for the issuance of the certificate ofproductregistration and license to operate provided for under this Article.
Art. 32. DangerousDrugs.- The importation, distribution, manufacture, production, compounding,prescription, dispensing and sale of, and other lawful acts inconnectionwith, dangerous drugs of such kind and quantity as may be deemednecessaryaccording to the medical and research needs of the country and thedeterminationof the quantity/quantities to be imported, manufactured and held instockat any given time by an authorized importer, manufacturer ordistributorof dangerous drugs shall be under the jurisdiction and authority of theDangerous Drugs Board as provided for by existing laws and regulations.
Art. 33. Banned orRestrictedDrugs. - Banned or severely restricted drugs for health and safetyreasons in their country of origin shall be banned and confiscated oritsuses severely restricted whichever is appropriate, by the Department.TheDepartment shall monitor the presence in the market of such drugs andcausethe maintenance and regular publications of an updated consolidatedlistthereof.
Art. 34. Certificationof Certain Drugs. - (a) The Department shall, by regulations,providefor the certification of batches of drugs composed wholly or partiallyof any kind of antibiotic. A batch of such drug shall be certified ifsuchdrug has such characteristics of identity, strength, quality andpurity,as the Department prescribes in such regulations as necessary to insureadequately safety and efficacy of use and good quality, but shall nototherwisebe certified. Prior to the effective date of such regulations theDepartment,in lieu of certification, shall issue a release for any batch which, inhis judgment, may be released without risk as to the safety andefficacyof its use. Such release shall prescribe the date of its expiration andother conditions under which it shall cease to be effective as to suchbatch and as to portions thereof. For purposes of this Article and ofArticle89 (j), the term "antibiotic drug" means any drug intended for use bymancontaining any quantity of any chemical substance which is produced bya micro-organism and which has the capacity to inhibit or destroymicro-organismsin dilute solution (including the chemically synthesized equivalent ofany such substance).
(b) Whenever in thejudgmentof the Department, the requirements of this Article and of Article 89(j)with respect to any drug or class of drugs are not necessary to insuresafety and efficacy of use and good quality, the Department shallpromulgateregulations exempting such drug or class of drugs from suchrequirements.
(c) The Department shallpromulgate regulations exempting from any requirement of this Articleandof Article 89 (j), (l) drugs which are to be stored, processed,labeled,or repacked at establishments other than those where manufactured, orconditionthat such drugs comply with all such requirements upon removal fromsuchestablishments; (2) drugs which conform to applicable standards ofidentity,strength, quality, and purity prescribed by these regulations and areintendedfor use in manufacturing other drugs; and (3) drugs which are intendedfor investigational use by experts qualified by scientific training andexperience to investigate the safety and efficacy of drugs.
(a) if it bears orcontainsany poisonous or deleterious substance which may render it injurious tousers under the condition of use prescribed in the labeling thereof, orunder the condition of use as are customary or usual: Provided,That this provision shall not apply to color additive hair dye, thelabelof which bears the following legend conspicuously displayed thereon: "Caution:this product contains ingredients which may cause skin irritation oncertainindividuals and a preliminary test according to accompanying directionsshould first be made. This product must not be used for dyeing theeyelashesor eyebrows; to do so may cause blindness" and labeling of whichbearsadequate directions for such preliminary testing. For purposes of thisparagraph (e) the term "hair dye" shall not include eyelashdyesor eyebrow dyes.
(b) if it consists inwholeor in part of any filthy, putrid, or decomposed substance.
(c) if it has beenprepared,packed or held under unsanitary conditions whereby it may have becomecontaminatedwith filth, or whereby it may have been rendered injurious to health.
(d) if its container iscomposed, in whole or in part, of any poisonous or deleterioussubstancewhich may render the contents injurious to health.
(e) if it is not a hairdye, and it bears or contains color additive other than which ispermissible.
(f) if any of itssubstanceshas been (1) mixed or packed therewith so as to reduce its quality orstrengthor (2) substituted wholly or in parts therefor.
Art. 36. FactoryInspection.- a) For purposes of enforcement of this Article, officers or employeesduly designated by the Department, upon presenting appropriatecredentialsto the owner, operator, or agent in charge, are authorized (1) toenter,at reasonable hours, any factory, warehouse or establishment in whichfood,drugs, devices or cosmetics are manufactured, processed, packed orheld,for introduction into domestic commerce or are held after suchintroduction,or to enter any vehicle being used to transport or hold such food,drugs,devices, or cosmetics in domestic commerce; and (2) to inspect, in areasonablemanner, such factory, warehouse, or establishment or vehicle and allpertinentequipment, finished and unfinished materials, containers and labelingtherein.
(b) If the officer oremployeemaking any such inspection of a factory, warehouse or otherestablishmenthas obtained any sample in the course of the inspection, uponcompletionof the inspection and prior to leaving the premises he shall give totheowner, operator, or agent in charge a receipt describing the samplesobtained.
(c) Whenever in the courseof any such inspection of a factory or other establishment where foodismanufactured, processed or packed, the officer or employee making theinspectionobtains a sample of any such food, and an analysis made of such samplefor the purpose of ascertaining whether such food consists in whole orin part of any filthy, putrid or decomposed substance, or is otherwiseunfit for food, a copy of the results of such analysis shall befurnishedpromptly to the owner, operator or agent in charge.
Art. 37. ProvisionalPermits. - Whenever the Department finds, after investigation,thatthe sale or distribution in commerce of any class of food, cosmetics,drugsor devices, may be injurious to health, and that such injurious naturecannot be adequately determined after such articles have entered intodomesticcommerce, it shall promulgate regulations providing for the issuance,suspensionand revocation of provisional permits, offer for sale or transfer ofsuchclasses of food, cosmetics, drugs or devices to manufacturers,processorsor packers of the same in such locality to which shall be attached suchconditions governing the manufacture, processing or packing of suchconsumerproducts for such temporary period of time as may be necessary toprotectpublic health; and after the effective date of such regulations, andduringsuch temporary period, no person shall, offer for sale or transfer anysuch food, cosmetics, drugs or devices unless such manufacturer,processoror packer holds such permit.
Art. 38. Publicity andPublication. - (a) The Department my cause to be disseminatedinformationregarding food, drugs, devices, or cosmetics in situations involving,inthe opinion of the Department, imminent danger to health, or grossdeceptionto the consumer. Nothing in this Article shall be construed to prohibitthe Department from collecting, reporting, and illustrating the resultsof its investigations.
(b) The Department shallpublish a Drug Reference Manual and Drug Bulletin to serve as referenceby manufacturers, distributors, physicians, consumers and such othergroupsas may be deemed necessary. The Department is hereby authorized to sellthe Drug Reference Manual at cost.
Art. 39. AdministrativeSanctions. - In addition to the administrative sanctions providedforunder Letter of Instructions No. 1223, the Department is herebyauthorizedto impose, after notice and hearing, administrative fines of not lessthanOne thousand pesos (P1,000.00) nor more than Five thousand pesos(P5,000.00)for any violation of this Act.
(a) the manufacture,importation,exportation, sale, offering for sale, distribution or transfer of anyfood,drug, device or cosmetic that is adulterated or mislabeled;
(b) the adulteration ormisbranding of any food, drug, device or cosmetic;
(c) the refusal to permitentry or inspection as authorized by Article 36 to allow samples to becollected;
(d) the giving of aguarantyor undertaking referred to in Article 41 (b) hereof which guaranty orundertakingis false, except by a person who relied upon a guaranty or undertakingto the same effect signed by, and containing the name and address of,theperson residing in the Philippines from whom he received in good faiththe food, drug, device, or cosmetic or the giving of a guaranty orundertakingreferred to in Article 41 (b) which guaranty or undertaking is false;
(e) forging,counterfeiting,simulating, or falsely representing or without proper authority usinganymark, stamp, tag, label, or other identification device authorized orrequiredby regulations promulgated under the provisions of this Act;
(f) the using by anypersonto his own advantage, or revealing, other than to the Department or tothe courts when relevant in any judicial proceeding under this Act, anyinformation concerning any method or process which as a trade secret isentitled to protection;
(g) the alteration,mutilation,destruction, obliteration, or removal of the whole or any part of thelabelingof, or the doing of any other act with respect to a food, drug, device,or cosmetic, if such act is done while such product is held for sale(whetheror not the first sale) and results in such product being adulterated ormislabeled;
(h) the use, on thelabelingof any drug or in any advertising relating to such drug, of anyrepresentationor suggestion that an application with respect to such drug iseffectiveunder Article 31 hereof, or that such drug complies with the provisionsof such articles;chanrobles law
(i) the use, in labeling,advertising or other sales promotion, of any reference to any report oranalysis furnished in compliance with Section 19 of Executive Order175,Series of 1987;
(j) the manufacture,importation,exportation, sale, offering for sale, distribution, or transfer of anydrug or device which is not registered with the Department pursuant tothis Act;
(k) the manufacture,importation,exportation, sale, offering for sale, distribution, or transfer of anydrug or device by any person without the license from the Departmentrequiredin this Act;
(l) the sale or offeringfor sale of any drug or device beyond its expiration or expirydate;
m) the release for saleor distribution of a batch of drugs without batch certification whenrequiredunder Article 34 hereof.
Art. 41. Penalties.- (a) Any person who violates any of the provisions of Article 40hereofshall, upon conviction, be subject to imprisonment of not less than one(1) year but not more than five (5) years, or a fine of not less thanFivethousand pesos (P5,000.00) but not more than Ten thousand pesos(P10,000.00),or both such imprisonment and fine, in the discretion of the Court.
Should the offense becommittedby a juridical person, the Chairman of the Board of Directors, thePresident,General Manager, or the partners and/or the persons directlyresponsibletherefor shall be penalized.
(b) No person shall besubjectto the penalties of sub-article (a) of this Article for (1) havingsold,offered for sale or transferred any product and delivered it, if suchdeliverywas made in good faith, unless he refuses to furnish on request of theDepartment, the name and address of the person from whom he purchasedorreceived such product and copies of all documents, if any there be,pertainingto the delivery of the product to him; (2) having violated Article 40(a)if he established a guaranty or undertaking signed by, and containingthename and address of, the person residing in the Philippines from whomhereceived in good faith the product, or (3) having violated Article 40(a),where the violation exists because the product is adulterated by reasonof containing a color other than the permissible one under regulationspromulgated by the Department in this Act, if such person establishes aguaranty or undertaking signed by, and containing the name and address,of the manufacturer of the color, to the effect that such color ispermissible,under applicable regulations promulgated by the Department in this Act.
Art. 43. ImplementingAgency. - The Department of Health, hereby referred to as theDepartment,shall enforce the provisions of this Chapter.
Art. 44. RegulationsDeclaring Hazardous Substances and Establishing Variations andExemptions.- The Department shall promulgate the rules and regulationsgoverningthe implementation of this Article.
To resolve uncertainty asto the coverage of this Article, the Department may, by regulations,declareas hazardous any substance of mixture of substances which he findsmeetsthe requirements of paragraph (ak), clause (1) (i) of Article 4.
If the Department findsthat for good and sufficient reasons, full compliance with the labelingrequirements otherwise applicable under this Chapter is impracticableoris not necessary for the adequate protection of public health andsafety,it shall promulgate regulations exempting such substances from theserequirementsto the extent he deems consistent with the objective of adequatelysafeguardingpublic health and safety, and any hazardous substance which does notbeara label in accordance with such regulations shall be deemed to be amislabeledhazardous substance.
Art. 45. Imports:Regulationson Imported Hazardous Substances. - (a) The Commissioner of Customsshall deliver to the Department, upon its request, samples of hazardoussubstances being imported or offered for import to the Philippines,givingnotice thereof to the owner or consignee who may appear before theDepartmentand exercise the right to make testimony. If it appears from theexaminationof such samples that such hazardous substance is a mislabeled hazardoussubstance or banned hazardous substance, then such hazardous substanceshall be refused admission except as may be provided in an order issuedby the Department authorizing delivery of the refused products orsubstanceunder the requirements imposed therein. The Commissioner of Customsshallcause the destruction of any hazardous substance refused admissionunlesssuch is exported, under regulations issued by the Commissioner withinninety(90) days from the date of notice of such refusal or within suchadditionaltime as may be fixed by him.
(b) Pending decision onthe admissibility of a hazardous substance being imported or offeredforimport, the Commissioner of Customs may authorize delivery of suchhazardoussubstance to the owner or consignee upon execution by him of a good andsufficient bond providing for the payment of such liquidated damages inthe event of default. If it appears to the Department that thehazardoussubstance can by relabeling or other action made to comply with therequirementsof this Article final determination as to the admission of suchhazardoussubstance may be deferred and upon filing of a timely writtenapplicationby the owner or consignee and the execution by him of a bond asprovidedin the provision of this paragraph. The Department may, in accordancewithregulations, authorize the applicant to perform such relabeling orotheraction specified in such authorization, including destruction or exportof such rejected hazarous substance. All such relabeling or otheractionpursuant to such authorization shall be in accordance with regulationsand shall be under the supervision of an officer or employee of theCommissionof Customs and the Department.
(a) introduce or deliverfor introduction into commerce of any mislabeled hazardous substance orbanned hazardous substance;
(b) alter, mutilate,destroy,obliterate or remove the whole or any part of the label of a mislabeledhazardous substance, or banned hazardous substance, if such act is donewhile the substance is in commerce or while the substance is held forsale,whether or not it is the first sale;
(c) receive in commerceany mislabeled hazardous substance or banned hazardous substance andthedelivery or preferred delivery thereof at cost or otherwise;
(d) give the guaranty orundertaking referred to in paragraph (b) of Article 93 and paragraph(b)of Article 45 if such guaranty or undertaking if false except by apersonwho relied upon a guaranty or undertaking which he received in goodfaith;
(e) introduce or deliverfor introduction into commerce or receive in commerce and subsequentlydeliver or preferred at cost or otherwise, or a hazardous substance ina refused food, drug, cosmetic or device container or in a containerwhich,though not a reused container, is identifiable as a food, drug,cosmeticor device container by its labeling or by other identification. The useof a used food, drug, cosmetic or device container for a hazardoussubstancedoes not diminish the danger posed by the hazardous substance involved,therefore, such substance shall be deemed a mislabeled hazardoussubstance.
Art. 47. Penalties;exception.- (a) Any person who violates any of the provisions of Article 46shall,upon conviction, be subject to a fine of not less than One thousandpesos(P1,000.00) or an imprisonment of not less than six (6) months but notmore than five (5) years or both upon the discretion of the court.
(b) No person shall besubjectto the penalties of paragraph (a) of this Article for (1) havingviolatedparagraph (c) of Article 46 unless he refuses to furnish, upon requestby the Department or his representative, the name and address of thepersonfrom who he purchased such hazardous substances and (2) having violatedparagraph (a) of Article 46, if he establishes a guaranty orundertakingsigned by, and containing the name and address of, the person from whomhe received in good faith, the hazardous substance to the effect thatthehazardous substance is not a mislabeled hazardous substance or bannedhazardouswithin the meaning of that term in this Act.
Art. 49. ImplementingAgency. - The Department of Trade and Industry, hereby referred toas the Department, shall enforce the provisions of this Chapter.
Without limiting the scopeof the above paragraph, the act or practice of a seller or supplier isdeceptive when it represents that:
(a) a consumer product orservice has the sponsorship, approval, performance, characteristics,ingredients,accessories, uses, or benefits it does not have;
(b) a consumer product orservice is of a particular standard, quality, grade, style, or modelwhenin fact it is not;
(c) a consumer product isnew, original or unused, when in fact, it is in a deteriorated,altered,reconditioned, reclaimed or second-hand state;
(d) a consumer product orservice is available to the consumer for a reason that is differentfromthe fact;
(e) a consumer product orservice has been supplied in accordance with the previousrepresentationwhen in fact it is not;
(f) a consumer product orservice can be supplied in a quantity greater than the supplier intends;
(g) a service, or repairof a consumer product is needed when in fact it is not;
(h) a specific priceadvantageof a consumer product exists when in fact it does not;
(i) the sales act orpracticeinvolves or does not involve a warranty, a disclaimer of warranties,particularwarranty terms or other rights, remedies or obligations if theindicationis false; and
(j) the seller or supplierhas a sponsorship, approval, or affiliation he does not have.
Art. 51. DeceptiveSalesAct or Practices By Regulation. - The Department shall, after duenoticeand hearing, promulgate regulations declaring as deceptive any salesact,practice or technique which is a misrepresentation of facts other thanthese enumerated in Article 50.
Art. 52. Unfair orUnconscionableSales Act or Practice. - An unfair or unconscionable sales act orpracticeby a seller or supplier in connection with a consumer transactionviolatesthis Chapter whether it occurs before, during or after the consumertransaction.An act or practice shall be deemed unfair or unconscionable whenevertheproducer, manufacturer, distributor, supplier or seller, by takingadvantageof the consumer's physical or mental infirmity, ignorance, illiteracy,lack of time or the general conditions of the environment orsurroundings,induces the consumer to enter into a sales or lease transaction grosslyinimical to the interests of the consumer or grossly one-sided in favorof the producer, manufacturer, distributor, supplier or seller.
In determining whether anact or practice is unfair and unconscionable, the followingcirc*mstancesshall be considered:
(a) that the producer,manufacturer,distributor, supplier or seller took advantage of the inability of theconsumer to reasonably protect his interest because of his inability tounderstand the language of an agreement, or similar factors;
(b) that when the consumertransaction was entered into, the price grossly exceeded the price atwhichsimilar products or services were readily obtainable in similartransactionby like consumers;
(c) that when the consumertransaction was entered into, the consumer was unable to receive asubstantialbenefit from the subject of the transaction;
(d) that when the consumerwas entered into, the seller or supplier was aware that there was noreasonableprobability or payment of the obligation in full by the consumer; and
(e) that the transactionthat the seller or supplier induced the consumer to enter into wasexcessivelyone-sided in favor of the seller or supplier.
Art. 53. ChainDistributionPlans or Pyramid Sales Schemes. - Chain distribution plans orpyramidsales schemes shall not be employed in the sale of consumer products.
Art. 54. HomeSolicitationSales. - No business entity shall conduct any home solicitationsaleof any consumer product or service without first obtaining a permitfromthe Department. Such permit may be denied suspended or revoked uponcauseas provided in the rules and regulations promulgated by the Department,after due notice and hearing.
Art. 55. HomeSolicitationSales; When Conducted. - Home solicitation sales may be conductedonlybetween the hours of nine o'clock in the morning and seven o'clock intheevening of each working day: Provided, That solicitation salesmaybe made at a time other than the prescribed hours where the personsolicitedhas previously agreed to the same.
Art. 56. HomeSolicitationSales; by Whom Conducted. - Home solicitation sales shall only beconductedby a person who has the proper identification and authority from hisprincipalto make such solicitations.
Art. 57. Receipts forHome Solicitation Sales. - Sales generated from home solicitationsalesshall be properly receipted as per existing laws, rules and regulationson sale transactions.
Art. 58. ProhibitedRepresentations.- A home solicitation sale shall not represent that:
- (a) the buyer has beenspeciallyselected;
(b) a survey, test orresearchis being conducted; or
(c) the seller is makinga special offer to a few persons only for a limited period of time.
Art. 59. Referral Sales.- Referral selling plans shall not be used in the sale of consumerproductsunless the seller executes in favor of the buyer a written undertakingthat will grant a specified compensation or other benefit to said buyerin return for each and every transaction consummated by said sellerwiththe persons referred by said buyer or for subsequent sales that saidbuyershas helped the seller enter into.
Art. 60. Penalties. -(a) Any person who shall violate the provisions of Title III, ChapterI,shall upon conviction, be subject to a fine of not less than FiveHundredPesos (P500.00) but not more than Ten Thousand Pesos (P10,000.00) orimprisonmentof not less than five (5) months but not more than one (1) year orboth,upon the discretion of the court.
(b) In addition to thepenaltyprovided for in paragraph (1), the court may grant an injunctionrestrainingthe conduct constituting the contravention of the provisions ofArticles50 and 51 and/or actual damages and such other orders as it thinks fitto redress injury to the person caused by such conduct.
Art. 62. Sealing andTesting of Instruments of Weights and Measure. - All instrumentsfordetermining weights and measures in all consumer and consumer relatedtransactionsshall be tested, calibrated and sealed every six (6) months by theofficialsealer who shall be the provincial or city or municipal treasurer orhisauthorized representative upon payment of fees required under existinglaw: Provided, That all instruments of weights and measuresshallcontinuously be inspected for compliance with the provisions of thisChapter.
Art. 63. Use of MetricSystem. - The system of weights and measures to be used for allproducts,commodities, materials, utilities, services and commercialtransactions,in all contracts, deeds and other official and legal instruments anddocumentsshall be the metric system, in accordance with existing laws and theirimplementing rules and regulations.
The Department of Tradeand Industry shall also adopt standard measurement for garments, shoesand other similar consumer products.
(a) for any person otherthan the official sealer or his duly authorized representative to placeor attach an official tag, seal, sticker, mark, stamp, brand or othercharacteristicsign used to indicate that such instrument of weight and measure hasofficiallybeen tested, calibrated, sealed or inspected;
(b) for any person toimitateany seal, sticker, mark, stamp, brand, tag or other characteristic signused to indicate that such instrument of weight or measures has beenofficiallytested, calibrated, sealed or inspected;
(c) for any person otherthan the official sealer or his duly authorized representative to alterin any way the certificate or receipt given by the official sealer orhisduly authorized representative as an acknowledgment that the instrumentfor determining weight or measure has been fully tested, calibrated,sealedor inspected;
(d) for any person to makeor knowingly sell or use any false or counterfeit seal, sticker, brand,stamp, tag, certificate or license or any dye for printing or makingthesame or any characteristic sign used to indicate that such instrumentofweight or measure has been officially tested, calibrated, sealed orinspected;
(e) for any person otherthan the official sealer or his duly authorized representative to alterthe written or printed figures, letters or symbols on any officialseal,sticker, receipt, stamp, tag, certificate or license used or issued;
(f) for any person to useor reuse any restored, altered, expired, damaged stamp, tag certificateor license for the purpose of making it appear that the instrument ofweightof measure has been tested, calibrated, sealed or inspected;
(g) for any person engagedin the buying and selling of consumer products or of furnishingservicesthe value of which is estimated by weight or measure to possess, use ormaintain with intention to use any scale, balance, weight or measurethathas not been sealed or if previously sealed, the license therefor hasexpiredand has not been renewed in due time;
(h) for any person tofraudulentlyalter any scale, balance, weight, or measure after it is officiallysealed;
(i) for any person toknowinglyuse any false scale, balance, weight or measure, whether sealed or not;
(j) for any person tofraudulentlygive short weight or measure in the making of a scale;
(k) for any person,assumingto determine truly the weight or measure of any article bought or soldby weight or measure, to fraudulently misrepresent the weight ormeasurethereof; or
(l) for any person toprocurethe commission of any such offense abovementioned by another.
Instruments officiallysealedat some previous time which have remained unaltered and accurate andtheseal or tag officially affixed thereto remains intact and in the samepositionand condition in which it was placed by the official sealer or his dulyauthorized representative shall, if presented for sealing, be sealedpromptlyon demand by the official sealer or his authorized representativewithoutpenalty except a surcharge fixed by law or regulation.
Art. 65. Penalties. -(a) Any person who shall violate the provisions of paragraphs (a) to(f)and paragraph (l) of Article 64 or its implementing rules andregulationsshall, upon conviction, be subject to a fine of not less than Twohundredpesos (P200.00) but not more than One thousand pesos (P1,000.00) or byimprisonment of not more than one (1) year or both upon the discretionof the court.
(b) Any person who shallviolate the provisions of paragraph (g) of Article 64 for the firsttimeshall be subject to a fine of not less than Five hundred pesos(P500.00)or by imprisonment of not less than one (1) month but not more thanfive(5) years or both, upon the discretion of the court.
(c) The owner-possessoror user of instrument of weights and measure enumerated in paragraphs(h)to (k) of Article 64 shall, upon conviction, be subject to a fine ofnotless than Three hundred pesos (P300.00) or imprisonment not exceedingone(1) year, or both, upon the discretion of the court.
Art. 67. ApplicableLawon Warranties. - The provisions of the CivilCode on conditions and warranties shall govern all contracts ofsalewith conditions and warranties.
Art. 68. AdditionalProvisionson Warranties. - In addition to the Civil Code provisions on salewithwarranties, the following provisions shall govern the sale of consumerproducts with warranty:
(a) Terms of expresswarranty. - Any seller or manufacturer who gives an expresswarrantyshall:
- (1) set forth the termsof warranty in clear and readily understandable language and clearlyidentifyhimself as the warrantor;
(2) identify the partytowhom the warranty is extended;
(3) state the productsorparts covered;
(4) state what thewarrantorwill do in the event of a defect, malfunction of failure to conform tothe written warranty and at whose expense;
(5) state what theconsumermust do to avail of the rights which accrue to the warranty; and
(6) stipulate the periodwithin which, after notice of defect, malfunction or failure to conformto the warranty, the warrantor will perform any obligation under thewarranty.
(b) Express warranty - operativefrom moment of sale. - All written warranties or guarantees issuedby a manufacturer, producer, or importer shall be operative from themomentof sale.
(1) Sales Report.- All sales made by distributors of products covered by this Articleshallbe reported to the manufacturer, producer, or importer of the productsoldwithin thirty (30) days from date of purchase, unless otherwise agreedupon. The report shall contain, among others, the date of purchase,modelof the product bought, its serial number, name and address of thebuyer.The report made in accordance with this provision shall be equivalenttoa warranty registration with the manufacturer, producer, or importer.Suchregistration is sufficient to hold the manufacturer, producer, orimporterliable, in appropriate cases, under its warranty.
(2) Failure to make orsend report. - Failure of the distributor to make the report orsendthem the form required by the manufacturer, producer, or importer shallrelieve the latter of its liability under the warranty: Provided,however,That the distributor who failed to comply with its obligation tosendthe sales reports shall be personally liable under the warranty. Forthispurpose, the manufacturer shall be obligated to make good the warrantyat the expense of the distributor.
(3) Retail. - Theretailer shall be subsidiarily liable under the warranty in case offailureof both the manufacturer and distributor to honor the warranty. In suchcase, the retailer shall shoulder the expenses and costs necessary tohonorthe warranty. Nothing therein shall prevent the retailer fromproceedingagainst the distributor or manufacturer.
(4) Enforcement ofwarrantyor guarantee. - The warranty rights can be enforced by presentmentof a claim. To this end, the purchaser needs only to present to theimmediateseller either the warranty card of the official receipt along with theproduct to be serviced or returned to the immediate seller. No otherdocumentaryrequirement shall be demanded from the purchaser. If the immediateselleris the manufacturer's factory or showroom, the warranty shallimmediatelybe honored. If the product was purchased from a distributor, thedistributorshall likewise immediately honor the warranty. In the case of aretailerother than the distributor, the former shall take responsibilitywithoutcost to the buyer of presenting the warranty claim to the distributorinthe consumer's behalf.
(5) Record ofpurchases.- Distributors and retailers covered by this Article shall keep arecordof all purchases covered by a warranty or guarantee for such period oftime corresponding to the lifetime of the product's respectivewarrantiesor guarantees.
(6) Contrarystipulations:null and void. - All covenants, stipulations or agreementscontraryto the provisions of this Article shall be without legal effect.
(c) Designation ofwarranties. - A written warranty shall clearly and conspicuouslydesignatesuch warranty as:
- (1) "Full warranty"if the written warranty meets the minimum requirements set forth inparagraph(d); or
(2) "Limitedwarranty"if the written warranty does not meet such minimum requirements.
(d) Minimum standards forwarranties. - For the warrantor of a consumer product to meet theminimumstandards for warranty, he shall:
- (1) remedy such consumerproduct within a reasonable time and without charge in case of adefect,malfunction or failure to conform to such written warranty;
(2) permit the consumerto elect whether to ask for a refund or replacement without charge ofsuchproduct or part, as the case may be, where after reasonable number ofattemptsto remedy the defect or malfunction, the product continues to have thedefect or to malfunction.
The warrantor will not be requiredto perform the above duties if he can show that the defect, malfunctionor failure to conform to a written warranty was caused by damage due tounreasonable use thereof.
(e) Duration ofwarranty.- The seller and the consumer may stipulate the period within whichthe express warranty shall be enforceable. If the implied warranty onmerchantabilityaccompanies an express warranty, both will be of equal duration.
Any other implied warrantyshall endure not less than sixty (60) days nor more than one (1) yearfollowingthe sale of new consumer products.
(f) Breach ofwarranties.- (1) In case of breach of express warranty, the consumer may electto have the goods repaired or its purchase price refunded by thewarrantor.In case the repair of the product in whole or in part is elected, thewarrantywork must be made to conform to the express warranty within thirty (30)days by either the warrantor or his representative. The thirty-dayperiod,however, may be extended by conditions which are beyond the control ofthe warrantor or his representative. In case the refund of the purchaseprice is elected, the amount directly attributable to the use of theconsumerprior to the discovery of the non-conformity shall be deducted.
(2) In case of breach ofimplied warranty, the consumer may retain in the goods and recoverdamages,or reject the goods, cancel and contract and recover from the seller somuch of the purchase price as has been paid, including damages.
Art. 69. Warranties inSupply of Services. - (a) In every contract for the supply ofservicesto a consumer made by a seller in the course of a business, there is animplied warranty that the service will be rendered with due care andskilland that any material supplied in connection with such services will bereasonably fit for the purpose for which it is supplied.
(b) Where a sellersuppliesconsumer services in the course of a business and the consumer,expresslyor by implication, makes known to the seller the particular purpose forwhich the services are required, there is an implied warranty that theservices supplied under the contract and any material supplied inconnectiontherewith will be reasonably fit for that purpose or are of such anatureor quality that they might reasonably be expected to achieve thatresult,unless the circ*mstances show that the consumer does not rely or thatitis unreasonable for him to rely, on the seller's skill or judgment.
Art. 70. ProfessionalServices. - The provision of this Act on warranty shall not applytoprofessional services of certified public accountants, architects,engineers,lawyers, veterinarians, optometrists, pharmacists, nurses,nutritionists,dietitians, physical therapists, salesmen, medical and dentalpractitionersand other professionals engaged in their respective professionalendeavors.
Art. 71. Guaranty ofService Firms. - Service firms shall guarantee workmanship andreplacementof spare parts for a period not less than ninety (90) days which shallbe indicated in the pertinent invoices.
Art. 72. ProhibitedActs.- The following acts are prohibited:
- (a) refusal without anyvalid legal cause by the local manufacturer or any person obligatedunderthe warranty or guarantee to honor a warranty or guarantee issued;
(b) unreasonable delaybythe local manufacturer or any person obligated under the warranty orguaranteein honoring the warranty;
(c) removal by anypersonof a product's warranty card for the purpose of evading said warrantyobligation;
(d) any falserepresentationin an advertisem*nt as to the existence of a warranty or guarantee.
Art. 73. Penalties. -(a) Any person who shall violate the provisions of Article 67 shall besubject to fine of not less than Five hundred pesos (P500.00) but notmorethan Five thousand pesos (P5,000.00) or an imprisonment of not lessthanthree (3) months but not more than two (2) years or both upon thediscretionof the court. A second conviction under this paragraph shall also carrywith it the penalty or revocation of his business permit and license.
(b) Any person, naturalor juridical, committing any of the illegal acts provided for inChapterIII, except with respect to Article 67, shall be liable for a fine ofnotless than One thousand pesos (P1,000.00) but not more than Fiftythousandpesos (P50,000.00) or imprisonment for a period of at least one (1)yearbut not more than five (5) years, or both, at the discretion of thecourt.
The imposition of any ofthe penalties herein provided is without prejudice to any liabilityincurredunder the warranty or guarantee.
Art. 75. ImplementingAgency. - The Department of Trade and Industry shall enforce theprovisionsof this Chapter and its implementing rules and regulations: Provided,That with respect to food, drugs, cosmetics, devices and hazardoussubstances,it shall be enforced by the concerned department.
Art. 76. ProhibitedActson Labeling and Packaging. - It shall be unlawful for any person,eitheras principal or agent, engaged in the labeling or packaging of anyconsumerproduct, to display or distribute or to cause to be displayed ordistributedin commerce any consumer product whose package or label does notconformto the provisions of this Chapter.
The prohibition in thisChapter shall not apply to persons engaged in the business of wholesaleor retail distributors of consumer products except to the extent thatsuchpersons:
- (a) are engaged in thepackagingor labeling of such products;
(b) prescribe or specifyby any means the manner in which such products are packaged or labeled;or
(c) having knowledge,refuseto disclose the source of the mislabeled or mispackaged products.
Art. 77. Minimum LabelingRequirements for Consumer Products. - All consumer productsdomesticallysold whether manufactured locally or imported shall indicate thefollowingin their respective labels of packaging:
- (a) its correct andregisteredtrade name or brand name;
(b) its duly registeredtrademark;
(c) its duly registeredbusiness name;
(d) the address of themanufacturer,importer, repacker of the consumer product in the Philippines;
(e) its general make oractive ingredients;
(f) the net qualityof contents,in terms of weight, measure or numerical count rounded of to at leastthenearest tenths in the metric system;
(g) country ofmanufacture,if imported; and
(h) if a consumerproductis manufactured, refilled or repacked under license from a principal,thelabel shall so state the fact.
The following may be requiredby the concerned department in accordance with the rules andregulationsthey will promulgate under authority of this Act:
- (a) whether it isflammableor inflammable;
(b) directions for use,if necessary;
(c) warning of toxicity;
(d) wattage, voltage oramperes; or
(e) process ofmanufactureused if necessary.
Any word, statement or otherinformation required by or under authority of the preceding paragraphshallappear on the label or labeling with such conspicuousness as comparedwithother words, statements, designs or devices therein, and in such termsas to render it likely to be read and understood by the ordinaryindividualunder customary conditions of purchase or use.
The above requirementsshallform an integral part of the label without danger of being erased ordetachedunder ordinary handling of the product.
Art. 78. PhilippineProductStandard Mark. - The label may contain the Philippine ProductStandardMark if it is certified to have passed the consumer product standardprescribedby the concerned department.
Art. 79. Authority ofthe Concerned Department to Provide for Additional Labeling andPackagingRequirements. - Whenever the concerned department determines thatregulationscontaining requirements other than those prescribed in Article 77hereofare necessary to prevent the deception of the consumer or to facilitatevalue comparisons as to any consumer product, it may issue such rulesandregulations to:
- (a) establish and definestandards for characterization of the size of a package enclosing anyconsumerproduct which may be used to supplement the label statement of netquality,of contents of packages containing such products but this clause shallnot be construed as authorizing any limitation on the size, shape,weight,dimensions, or number of packages which may be used to enclose anyproduct;
(b) regulate theplacementupon any package containing any product or upon any label affixed tosuchproduct of any printed matter stating or representing by implicationthatsuch product is offered for retail at a price lower than the ordinaryandcustomary retail price or that a price advantage is accorded topurchasesthereof by reason of the size of the package or the quantity of itscontents;
(c) prevent thenonfunctionalslack-fill of packages containing consumer products.
For purposes ofparagraph(c) of this Article, a package shall be deemed to be nonfunctionallyslack-filledif it is filled to substantially less than its capacity for reasonsotherthan (1) protection of the contents of such package; (2) therequirementsof machines used for enclosing the contents in such package; or (3)inherentcharacteristics of package materials or construction being used.
Art. 80. Special Packagingof Consumer Products for the Protection of Children. - Theconcerneddepartment may establish standards for the special packaging of anyconsumerproduct if it finds that:
- (a) the degree or natureof the hazard to children in the availability of such product, byreasonof its packaging, is such that special packaging is required to protectchildren from serious personal injury or serious illness resulting fromhandling and use of such product; and
(b) the specialpackagingto be required by such standard is technically feasible, practicableandappropriate for such product. In establishing a standard under thisArticle,the concerned department shall consider:
- (1) the reasonablenessofsuch standard;
(2) availablescientific,medical and engineering data concerning special packaging andconcerningaccidental, ingestions, illnesses and injuries caused by consumerproduct;
(3) the manufacturingpracticesof industries affected by this Article; and
(4) the nature and useofconsumer products.
Art. 81. Price Tag Requirement.- It shall be unlawful to offer any consumer product for retailsaleto the public without an appropriate price tag, label or markingpubliclydisplayed to indicate the price of each article and said products shallnot be sold at a price higher than that stated therein and withoutdiscriminationto all buyers: Provided, That lumber sold, displayed or offeredfor sale to the public shall be tagged or labeled by indicating thereonthe price and the corresponding official name of the wood: Provided,further, That if consumer products for sale are too small or thenatureof which makes it impractical to place a price tag thereon price listplacedat the nearest point where the products are displayed indicating theretailprice of the same may suffice.
Art. 82. Manner ofPlacingPrice Tags. - Price tags, labels or markings must be writtenclearly,indicating the price of the consumer product per unit in pesos andcentavos.
Art. 83. Regulationsfor Price Tag Placement. - The concerned department shall prescriberules and regulations for the visible placement of price tags forspecificconsumer products and services. There shall be no erasures oralterationsof any sort of price tags, labels or markings.
Art. 84. AdditionalLabelingRequirements for Food. - The following additional labelingrequirementsshall be imposed by the concerned department for food:
- (a) expiry or expirationdate, where applicable;
(b) whether the consumerproduct is semi-processed, fully processed, ready-to-cook,ready-to-eat,prepared food or just plain mixture;
(c) nutritive value, ifany;
(d) whether theingredientsuse are natural or synthetic, as the case may be;
(e) such other labelingrequirements as the concerned department may deem necessary andreasonable.
Art. 85. Mislabeled Food.- A food shall also be deemed mislabeled:
- (a) if its labeling oradvertisingis false or misleading in any way;
(b) if it is offered forsale under the name of another food;
(c) if it is animitationof another food, unless its label bears in type of uniform size andprominence,the word "imitation" and, immediately thereafter, the name ofthefood imitated;
(d) its containers is somade, formed, or filled as to be misleading;
(e) if in package formunlessit bears a label conforming to the requirements of this Act: Provided,That reasonable variation on the requirements of labeling shall bepermittedand exemptions as to small packages shall be established by theregulationsprescribed by the concerned department of health;
(f) if any word,statementor other information required by or under authority of this Act toappearon the principal display panel of the label or labeling is notprominentlyplaced thereon with such conspicuousness as compared with other words,statements, designs or devices in the labeling and in such terms as torender it likely to be read and understood by the ordinary individualundercustomary conditions of purchase and use;
(g) if it purports to beor is represented as a food for which a definition or standard ofidentityhas been prescribed unless:
- (1) it conforms tosuchdefinition and standard; and
(2) its labels bearsthename of the food specified in the definition or standards, and insofaras may be required by such regulations, the common names of optionalingredientsother than spices, flavoring and coloring, present in such food;
(h) if it purports to be orrepresented as:
- (1) a food for which astandardof quality has been prescribed by regulations as provided in this Actandits quality fall below such standard, unless its label bears in suchmannerand form as such regulations specify, a statement that it falls belowsuchstandard; or
(2) a food for which astandardor standards or fill of container have been prescribed by regulationsasprovided by this Act and it falls below the standard of fill ofcontainerapplicable thereto, unless its label bears, in such manner and form assuch regulations specify, a statement that it falls below such standard;
i) if it is not subject to theprovisions of paragraph (g) of this Article unless its label bears:
- (1) the common or usualname of the food, if there be any; and
(2) in case it ismanufacturedor processed from two or more ingredients, the common or usual name ofsuch ingredient; except the spices, flavorings and colorings other thanthose sold as such, may be designated as spices, flavorings andcoloringswithout naming each: Provided, That to the extent thatcompliancewith the requirement of clause (2) of this paragraph is impracticableorresults in deception or unfair competition, exemptions shall beestablishedby regulations promulgated by the concerned department of health;
(j) if it purports to be oris represented for special dietary uses, unless its label bears suchinformationconcerning its vitamin or mineral or other dietary properties as theconcerneddepartment determines to be, or by regulations prescribed as necessaryin order fully to inform purchasers as its value for such uses;
(k) if it bears orcontainsany artificial flavoring, artificial coloring, or chemicalpreservative,unless it bears labeling, stating that fact: Provided, That totheextent that compliance with the requirements of this paragraph isimpracticable,exemptions shall be established by regulations promulgated by theconcerneddepartment. The provisions of this paragraph or paragraphs (g) and (i)with respect to the artificial coloring shall not apply in the case ofbutter, cheese or ice cream.
Art. 86. Labeling ofDrugs. - The Generics Act shall apply in the labeling of drugs.
Art. 87. AdditionalLabelingRequirements for Cosmetics. - The following additional requirementsmay be required for cosmetics:
- (a) expiry or expirationdate;
(b) whether or not itmaybe an irritant;
(c) precautions orcontra-indications;and
(d) such other labelingrequirements as the concerned department may deem necessary andreasonable.
Art. 88. Special LabelingRequirements for Cosmetics. - A cosmetic shall be deemed mislabeled:
- (a) if its labeling oradvertisingis false or misleading in any way;
(b) if in package formunlessit bears a label conforming to the requirements of labeling providedforin this Act or under existing regulations: Provided, That reasonablevariationsshall be permitted, and exemptions as to small packages shall beestablishedby regulations prescribed by the concerned department;
(c) if any word,statementor other information required by or under authority of this Act toappearon the label or labeling is not prominently placed thereon with suchconspicuousness,as compared with other words, statements, designs or devices in thelabeling,and in such terms as to render it likely to be read and understood bytheordinary individual under customary conditions of purchase and use;
(d) if its container isso made, formed or filled as to be misleading; or
(e) if its label doesnotstate the common or usual name of its ingredients.
Art. 89. Mislabeled Drugsand Devices. - A drug or device shall be deemed to be mislabeled:
- (a) if its labeling isfalseor misleading in any way;
(b) if its in packageformunless it bears a label conforming to the requirements of this Act ortheregulations promulgated therefor: Provided, that reasonablevariationsshall be permitted and exemptions as to small packages shall beestablishedby regulations prescribed by the concerned department.
(c) if any word,statementor other information required by or under authority of this Act toappearon the principal display panel of the label or labeling is notprominentlyplaced thereon with such conspicuousness as compared with other words,statements, designs or devices in the labeling and in such terms as torender it likely to be read and understood by the ordinary individualundercustomary conditions of purchase and use;
(d) if it is for use byman and contains any quantity of the narcotic or hypnotic substancealpha-eucaine,barbituric acid, beta-eucaine, bromal, cannabis, carbromal, chloral,coca,cocaine, codeine, heroin, marijuana, morphine, opium, paraldehyde,peyoteor sulfonmethane, or any chemical derivative of such substance, whichderivativehas been designated by the concerned department after investigation,andby regulations as habit forming; unless its label bears the name andquantityor proportion of such substance or derivative and in juxtapositiontherewiththe statement "Warning-May be habit forming";
(e) its labeling doesnotbear:
- (1) adequatedirectionsfor use; and
(2) such adequatewarningagainst use in those pathological conditions or by children where itsusemay be dangerous to health, or against unsafe dosage or methods ordurationof administration or application, in such manner and form, as arenecessaryfor the protection of users: Provided, That where any requirement ofclause(1) of this paragraph, as applied to any drug or device, is notnecessaryfor the protection of the public health, the concerned department maypromulgateregulations exempting such drug or device from such requirement;
(g) if it has been foundby the concerned department to be a drug liable to deterioration,unlessit is packaged in such form and manner, and its label bears a statementof such precautions, as the concerned department, shall by regulations,require as necessary for the protection of the public health;
(h) (1) if it is a drugand its container is so made, formed or filled as to be misleading; or
(2) if it is animitationof another drug; or
(3) if it is dangeroustohealth when used in the dosage, or with the frequency of durationprescribed,recommended or suggested in the labeling thereof;
(i) if it is, purportstobe or is represented as a drug composed wholly or partly of insulin orof any kind of penicillin, streptomycin, chlortetracycline,chloramphenicol,bacitracin, or any other antibiotic drug, or any derivative thereof,unless:
- (1) it is from a batchwithrespect to which a certificate of release has been issued pursuant toregulationsof the concerned department; and
(2) such certificateofrelease is in effect with respect to such drug: Provided, That thisparagraphshall not apply to any drug or class of drugs exempted by regulationspromulgatedunder Authority of this Act.
Art. 90. Regulation-makingExemptions. - The concerned department may promulgate regulationsexemptingfrom any labeling requirements of this Act food, cosmetics, drugs ordeviceswhich are, in accordance with the practice of trade, to be processed,labeledor repacked in substantial quantities at establishments other thanthosewhere originally processed, labeled or packed on condition that suchfood,cosmetics, drugs or devices are not adulterated or mislabeled under theprovisions of this Act and other applicable laws upon approval fromsuchprocessing, labeling and repacking establishments.
Art. 91. MislabeledHazardousSubstances. - Hazardous substances shall be deemed mislabeled when:
- (a) having been intendedor packaged in a form suitable for use in households, especially forchildren,the packaging or labeling of which is in violation of the specialpackagingregulations issued by the concerned department;
(b) such substance failsto bear a label:
- (1) which statesconspicuously:
- (i) the name and theplaceof business of the manufacturer, packer, distributor or seller;
(ii) the common orusualname or the chemical name, if there be no common or usual name, of thehazardous substance or of each component which contributessubstantiallyto the harmfulness of the substance, unless the concerned department byregulation permits or requires the use of the recognized generic name;
(iii) the signalword "danger" on substances which are extremely flammable,corrosive orhighly toxic;
(iv) the signal word"warning" or "caution" with a bright red ororange color with ablacksymbol on all other hazardous substances;
(v) a clearstatement asto the possible injury it may cause if used improperly;
(vi) precautionarymeasuresdescribing the action to be followed or avoided;
(vii) instructionswhennecessary or appropriate for first-aid treatment;
(viii) the word"poison"for any hazardous substance which is defined as highly toxic;
(ix) instructionsfor handlingand storage of packages which require special care in handling andstorage;and
(x) the statement "keepout of the reach of children", or its practical equivalent, if thearticle is not intended for use by children and is not a bannedhazardoussubstance, with adequate directions for the protection of children fromthe hazard involved. The aforementioned signal words, affirmativestatements,description of precautionary measures, necessary instructions or otherwords or statements may be in English language or its equivalent inFilipino;and
Art. 92. Exemptions.- If the concerned department finds that for good or sufficientreasons,full compliance with the labeling requirements otherwise applicableunderthis Act is impracticable or is not necessary for the adequateprotectionof public health and safety, it shall promulgate regulations exemptingsuch substances from these requirements to the extent it deemsconsistentwith the objective of adequately safeguarding public health and safety,and any hazardous substance which does not bear a label in accordancewithsuch regulations shall be deemed mislabeled hazardous substance.
Art. 93. Grounds forSeizure and Condemnation of Mislabeled Hazardous Substances. - (a)Any mislabeled hazardous substance when introduced into commerce orwhileheld for sale shall be liable to be proceeded against and condemneduponorder of the concerned department in accordance with existing procedurefor seizure and condemnation of articles in commerce: Provided, ThatthisArticle shall not apply to a hazardous substance intended for export toany foreign country if:
- (1) it is in a packagelabeledin accordance with the specifications of the foreign purchaser;
(2) it is labeled inaccordancewith the laws of the foreign country;
(3) it is labeled on theoutside of the shipping package to show that it is intended for export;and
(4) it is so exported,
(b) any hazardous substancecondemned under this Article shall after entry of order of condemnationbe disposed of by destruction or sale as the concerned department maydirect,and the proceeds thereof, if sold, less the legal cost and charges,shallbe paid into the treasury of the Philippines; but such hazardoussubstanceshall not be sold under any order which is contrary to the provisionsofthis Act: Provided, That, after entry of the order and upon thepayment of the costs of such proceedings and the execution of a goodandsufficient bond conditioned that such hazardous substance shall not besold or disposed of contrary to the provisions of this Act, theconcerneddepartment may direct that such hazardous substance be delivered to orretained by the owner thereof for destruction or for alteration tocomplywith the provisions of this Act under the supervision of an officer oremployee duly designated by the concerned department. The expenses forsuch supervision shall be paid by the person obtaining release of thehazardoussubstance under bond.
c) all expenses inconnectionwith the destruction provided for in paragraphs (a) and (b) of thisArticleand all expenses in connection with the storage and labor with respectto such hazardous substance shall be paid by the owner or consignee,anddefault in such payment shall constitute a lien against any importationby such owner or consignee.
Art. 94. LabelingRequirementsof Cigarettes. - All cigarettes for sale or distribution withinthecountry shall be contained in a package which shall bear the followingstatement or its equivalent in Filipino: "Warning: CigaretteSmokingis Dangerous to Your Health". Such statement shall be located inconspicuousplace on every cigarette package and shall appear in conspicuous andlegibletype in contrast by typography, layout or color with other printedmatteron the package. Any advertisem*nt of cigarette shall contain the namewarningas indicated in the label.
Art. 95. Penalties.- (a) Any person who shall violate the provisions of Title III, ChapterIV of this Act, or its implementing rules and regulations, exceptArticles81 to 83 of the same Chapter, shall be subject to a fine of not lessthanFive hundred pesos (P500.00) but not more than Twenty thousand pesos(P20,000.00)or imprisonment of not less 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 is one which is not a food, cosmetic, drug,deviceor hazardous substance, the penalty shall be a fine of not less thanTwohundred pesos (P200.00) but not more than Five thousand pesos(P5,000.00)or imprisonment of not less than one (1) month but not more than one(1)year or both, at the discretion of the court.
(b) Any person whoviolatesthe provisions of Articles 81 to 83 for the first time shall be subjectto a fine of not less than Two hundred pesos (P200.00) but not morethanFive thousand pesos (P5,000.00) or by imprisonment of not less than one(1) month but not more than six (6) months or both, at the discretionofthe court. A second conviction under this paragraph shall also carrywithit the penalty of revocation of business permit and license.
Art. 97. Liability forthe 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 makingup,presentation or packing of their products, as well as for theinsufficientor inadequate information on the use and hazards thereof.
A product is defectivewhenit does not offer the safety rightfully expected of it, taking relevantcirc*mstances into consideration, including but not limited to:
- (a) presentation ofproduct;
(b) use and hazardsreasonablyexpected of it;
(c) the time it was putinto circulation.
A product is not considereddefective because another better quality product has been placed in themarket.
The manufacturer, builder,producer or importer shall not be held liable when it evidences:
- (a) that it did notplacethe product on the market;
(b) that although it didplace the product on the market such product has no defect;
(c) that the consumer ora third party is solely at fault.
Art. 98. Liability of Tradesmanor Seller. - The tradesman/seller is likewise liable, pursuant tothepreceding article when:
- (a) it is not possibletoidentify the manufacturer, builder, producer or importer;
(b) the product issupplied,without clear identification of the manufacturer, producer, builder orimporter;
(c) he does notadequatelypreserve perishable goods. The party making payment to the damagedpartymay exercise the right to recover a part of the whole of the paymentmadeagainst the other responsible parties, in accordance with their part orresponsibility in the cause of the damage effected.
Art. 99. Liability for DefectiveServices. - The service supplier is liable for redress,independentlyof fault, for damages caused to consumers by defects relating to therenderingof the services, as well as for insufficient or inadequate informationon the fruition and hazards thereof.
The service is defectivewhen it does not provide the safety the consumer may rightfully expectof it, taking the relevant circ*mstances into consideration, includingbut not limited to:
- (a) the manner in whichit is provided;
(b) the result ofhazardswhich may reasonably be expected of it;
(c) the time when it wasprovided.
A service is not considereddefective because of the use or introduction of new techniques.
The supplier of theservicesshall not be held liable when it is proven:
- (a) that there is nodefectin the service rendered;
(b) that the consumer orthird party is solely at fault.
Art. 100. Liability for Productand Service Imperfection. - The suppliers of durable or nondurableconsumer products are jointly liable for imperfections in quality thatrender the products unfit or inadequate for consumption for which theyare designed or decrease their value, and for those resulting frominconsistencywith the information provided on the container, packaging, labels orpublicitymessages/advertisem*nt, with due regard to the variations resultingfromtheir nature, the consumer being able to demand replacement to theimperfectparts.
If the imperfection is notcorrected within thirty (30) days, the consumer may alternativelydemandat his option:
- (a) the replacement oftheproduct by another of the same kind, in a perfect state of use;
(b) the immediatereimbursem*ntof the amount paid, with monetary updating, without prejudice to anylossesand damages;
(c) a proportionatepricereduction.
The parties may agree to reduceor increase the term specified in the immediately preceding paragraph;but such shall not be less than seven (7) nor more than one hundred andeighty (180) days.
The consumer may makeimmediateuse of the alternatives under the second paragraph of this Article whenby virtue of the extent of the imperfection, the replacement of theimperfectparts may jeopardize the product quality or characteristics, thusdecreasingits value.
If the consumer opts forthe alternative under sub-paragraph (a) of the second paragraph of thisArticle, and replacement of the product is not possible, it may bereplacedby another of a different kind, mark or model: Provided, That anydifferencein price may result thereof shall be supplemented or reimbursed by theparty which caused the damage, without prejudice to the provisions ofthesecond, third and fourth paragraphs of this Article.
Art. 101. Liability forProduct Quantity Imperfection. - Suppliers are jointly liable forimperfectionsin the quantity of the product when, in due regard for variationsinherentthereto, their net content is less than that indicated on thecontainer,packaging, labeling or advertisem*nt, the consumer having powers todemand,alternatively, at his own option:
- (a) the proportionateprice;
(b) the supplementing ofweight or measure differential;
(c) the replacement oftheproduct by another of the same kind, mark or model, without saidimperfections;
(d) the immediatereimbursem*ntof the amount paid, with monetary updating without prejudice to lossesand damages if any.
The provisions of the fifthparagraph of Article 99 shall apply to this Article.
The immediate suppliershallbe liable if the instrument used for weighing or measuring is notgaugedin accordance with official standards.
Art. 102. LiabilityforService Quality Imperfection. - The service supplier is liable forany quality imperfections that render the services improper forconsumptionor decrease their value, and for those resulting from inconsistencywiththe information contained in the offer or advertisem*nt, the consumerbeingentitled to demand alternatively at his option:
- (a) the performance oftheservices, without any additional cost and when applicable;
(b) the immediatereimbursem*ntof the amount paid, with monetary updating without prejudice to lossesand damages, if any;
(c) a proportionatepricereduction.
Reperformance of services maybe entrusted to duly qualified third parties, at the supplier's riskandcost.
Improper services arethosewhich prove to be inadequate for purposes reasonably expected of themandthose that fail to meet the provisions of this Act regulating servicerendering.
Art. 103. RepairServiceObligation. - When services are provided for the repair of anyproduct,the supplier shall be considered implicitly bound to use adequate, new,original replacement parts, or those that maintain the manufacturer'stechnicalspecifications unless, otherwise authorized, as regards to the latterbythe consumer.
Art. 104. Ignorance ofQuality Imperfection. - The supplier's ignorance of the qualityimperfectionsdue to inadequacy of the products and services does not exempt him fromany liability.
Art. 105. LegalGuaranteeof Adequacy. - The legal guarantee of product or service adequacydoesnot require an express instrument or contractual exoneration of thesupplierbeing forbidden.
Art. 106. Prohibitionin Contractual Stipulation. - The stipulation in a contract of aclausepreventing, exonerating or reducing the obligation to indemnify fordamageseffected, as provided for in this and in the preceding Articles, isherebyprohibited, if there is more than one person responsible for the causeof the damage, they shall be jointly liable for the redress establishedin the pertinent provisions of this Act. However, if the damage iscausedby a component or part incorporated in the product or service, itsmanufacturer,builder or importer and the person who incorporated the component orpartare jointly liable.
Art. 107. Penalties.- Any person who shall violate any provision of this Chapter or itsimplementing rules and regulations with respect to any consumer productwhich is not food, cosmetic, or hazardous substance shall uponconviction,be subject to a fine of not less than Five thousand pesos (P5,000.00)andby imprisonment of not more than one (1) year or both upon thediscretionof the court.
In case of juridicalpersons,the penalty shall be imposed upon its president, manager or head. Iftheoffender is an alien, he shall, after payment of fine and service ofsentence,be deported without further deportation proceedings.
Art. 109. ImplementingAgency. - The Department of Trade and Industry shall enforce theprovisionsof this Chapter and its implementing rules and regulations: Provided,That with respect to food, drugs, cosmetics, devices and hazardoussubstances,it shall be enforced by the Department of Health.
Art. 110. False,Deceptiveor Misleading Advertisem*nt. - It shall be unlawful for any personto disseminate or to cause the dissemination of any false, deceptive ormisleading advertisem*nt by Philippine mail or in commerce by print,radio,television, outdoor advertisem*nt or other medium for the purpose ofinducingor which is likely to induce directly or indirectly the purchase ofconsumerproducts or services.
An advertisem*nt shall befalse, deceptive or misleading if it is not in conformity with theprovisionsof this Act or if it is misleading in a material respect. Indeterminingwhether any advertisem*nt is false, deceptive or misleading, thereshallbe taken into account, among other things, not only representationsmadeor any combination thereof, but also the extent to which theadvertisem*ntfails to reveal material facts in the light of such representations, ormaterials with respect to consequences which may result from the use orapplication of consumer products or services to which the advertisem*ntrelates under the conditions prescribed in said advertisem*nt, or undersuch conditions as are customary or usual.
Art. 111. PriceComparisons.- Comparative price advertising by sellers of consumer products orservicesshall conform to the following conditions:
- (a) Where the comparisonrelates to a former price of the seller, the item compared shall eitherhave been sold at that price within the ninety (90) days immediatelyprecedingthe date of the advertisem*nt, or it shall have been offered for saleforat least four (4) weeks during such ninety-day period. If thecomparisondoes not relate to an item sold or offered for sale during theninety-dayperiod, the date, time or seasonal period of such sale or offer shallbedisclosed in the advertisem*nt.
(b) Where the comparisonrelates to a seller's future price, the future price shall take effecton the date disclosed in the advertisem*nt or within ninety (90) daysafterthe price comparison is stated in the advertisem*nt. The stated futureprice shall be maintained by the seller for a period of at least four(4)weeks after its effective date: Provided, That compliance thereof maybedispensed with in case of circ*mstances beyond the seller's control.
(c) Where the comparisonrelates to a competitor's price, the competitor's price shall relate tothe consumer products or services advertised or sold in the ninety-dayperiod and shall be representative of the prices similar consumerproductsor services are sold or advertised in the locality where the pricecomparisonwas made.
Art. 112. Special AdvertisingRequirements for Food, Drug, Cosmetic, Device, or Hazardous Substance.- (a) No claim in the advertisem*nt may be made which is not containedin the label or approved by the concerned department.
(b) No person shalladvertiseany food, drug, cosmetics, device, or hazardous substance in mannerthatis false, misleading or deceptive or is likely to create an erroneousimpressionregarding its character, value, quantity, composition, merit, or safety.
(c) Where a standard hasbeen prescribed for a food, drug, cosmetic, or device, no person shalladvertise any article or substance in such a manner that it is likelytobe mistaken for such product, unless the article complies with theprescribedstandard or regulation.
(d) No person shall, inthe advertisem*nt of any food, drug, cosmetic, device, or hazardoussubstance,make use of any reference to any laboratory report of analysis requiredto be furnished to the concerned department, unless such laboratoryreportis duly approved by such department.
(e) Any businessman whois doubtful as to whether his advertisem*nt relative to food, drug,cosmetic,device, or hazardous substance will violate or does not conform withthisAct or the concerned department's pertinent rules and regulations mayapplyto the same for consideration and opinion on such matter before suchadvertisem*ntis disseminated to the public. In this case, the concerned departmentshallgive its opinion and notify the applicant of its action within thirty(30)days from the date of application; otherwise, the application shall bedeemed approved.
(f) No person shalladvertiseany food, drug, cosmetic, device, or hazardous substance unless suchproductis duly registered and approved by the concerned department for use inany advertisem*nt.
Art. 113. CreditAdvertising.- No advertisem*nt to aid, promote, or assist, directly or indirectly,any extension of consumer credit may:
- (a) state that aspecificperiodic consumer credit amount or installment amount can be arranged,unless the creditor usually and customarily arranges credit payment orinstallments for that period and in that amount; and
(b) state that aspecifieddown payment is required in any extension of consumer credit, unlessthecreditor usually or customarily arranges down payment in that amount.
Art. 114. Advertising ofOpen-end Credit Plan. - In case of an open-end credit plan, therateof interest and other material features of the plan shall be disclosedin the advertisem*nt.
Art. 115. SpecialClaims.- Any advertisem*nt which makes special claims shall:
- (a) substantiate suchclaims;and
(b) properly useresearchresult, scientific terms, statistics or quotations.
Art. 117. Suspensionof Publication or Dissemination of Information. - The concerneddepartmentmay, after due notice and hearing, suspend the publication anddisseminationof any information accompanying a sales promotion campaign, if it findsthe campaign to be in violation of the provisions of this Chapter oritsimplementing rules and regulations.
Art. 118. Conduct ofSales Promotion. - A sales promotion which is intended for broadconsumerparticipation and utilizes mass media shall indicate the duration,commencementand termination of the promotion, the deadline for submission ofentriesand the governing criteria or procedure to be followed therein.
Art. 119. Packaging ofProducts Under Promotion. - The packaging of the products coveredbythe sales promotion shall not be tampered, neither shall any change inthe product's package be affected without the authority of thesponsoringagency or the owner or manufacturer of the product.
Art. 120. Change inStartingand Termination Dates of Promotion. - The concerned departmentshallbe advised of nay delay of starting dates or termination dates anddetailsof any change in the conduct of a sales promotion. Any change in theterminationdates shall be published in a newspaper of general circulation beforetheexpiration of the original schedule or the termination date, whichevercomes first.
Art. 121. Determinationof Winners. - The winners in any sales promotion shall bedeterminedat a definite time and place and shall be verified by a representativeof the concerned department and the sponsor. Immediately after thewinnersare selected or determined, a list with their addresses andcorrespondingprizes shall be submitted to the concerned department. All winnersshallbe announced or published in the same manner that the sales promotionwasannounced or published: Provided, That publication in anewspaperof general circulation shall be done in a legible manner at least once,if the sales promotion is national in scope: Provided, further,That such announcement and publication shall be done not later than two(2) weeks after the determination of winners. In all cases where theamountof the price is Five hundred pesos (P500.00) or more, the winners shallalso be notified in writing by registered mail or any communicationwhereinproof of notice or service can be verified.
Art. 122. InjunctiveRelief. - (a) Whenever the concerned department has the reason tobelieve(1) that any person, partnership or corporation is engaged in or isaboutto engage in the dissemination or the causing of dissemination of anyadvertisem*ntin violation of Articles 110 to 115, and (2) that the enjoining thereofwould be to the interest of the public, the concerned department shalldirect the filing of a complaint in the court of competentjurisdiction,to enjoin the dissemination or the causing of the dissemination of suchadvertisem*nt. Upon proper showing, a temporary injunction orrestrainingorder shall be granted without bond. Any such complaint shall be filedin the locality in which the person, partnership or corporation residesor transacts business.
(b) Any person who maysufferloss, damage or injury due to a false, misleading or deceptiveadvertisem*ntas defined in Article 4 may file a complaint with injunction in his ownname with any court of competent jurisdiction to recover damages, costof suit and reasonable attorney's fees.
Art. 123. Penalties.- (a) Any person, association, partnership or corporation who shallviolate any of the provisions of Articles 110 to 115 shall, uponconviction,be subject to a fine of not less than Five Hundred Pesos (P500.00) butnot more than Five thousand pesos (P5,000.00) or an imprisonment of notless than one (1) month but not more than (6) months or both upon thediscretionof the court.
(b) Any violation of theprovisions of Articles 116 to 121 shall, upon conviction, subject theoffendersto a fine of not less than Two hundred pesos (P200.00) but not morethanSix hundred pesos (P600.00) or an imprisonment of not less than one (1)month but not more than six (6) months or both upon the discretion ofthecourt. If the violation was committed by a juridical person, themanager,representative, director, agent or employee of said juridical personresponsiblefor the act shall be deported after service of sentence and payment ofthe fine without need for further deportation proceedings.
Art. 124. ExemptionfromPenalties. - No publisher, radio broadcast, television licensee ormedium for the dissemination of advertising shall be liable, under thisChapter, by reason of dissemination by him of any false advertisem*ntunlesshe refuses, on the request of appropriate authorities, to furnish thenameand post office address of the manufacturer, packer, distributor selleror advertising agency. This exemption shall not apply however, to themanufacturer,packer, distributor or seller of the consumer product or service andtheadvertising agency responsible for the false and misleading advertising.
Art. 126. ImplementingAgency. - The Department of Trade and Industry, hereby referred toas the Department, shall enforce the provisions of this Chapter.
Art. 127. MinimumRequirementsfor Accreditation. - The following shall be the minimumrequirementsfor accreditation or repair and service firms:
- (a) the duly registeredbusiness name, firm name or style of the firm;chanrobleslaw
(b) date of issue andeffectivityof the certificate of accreditation;
(c) number and skills oftechnical personnel; and
(d) required license forthe repair or servicing of any consumer product as required by speciallaws.
Art. 128. Accreditation ofRepair and Service Firm. - No person shall operate a repair andservicefirm or act as technical personnel therein without first beingaccreditedby the Department.
Art. 129. Certificationof Accreditation. - Upon compliance with the requirements foraccreditation,the Department shall issue the corresponding certificate ofaccreditation.A separate certificate shall be required for each branch of anenterpriselocated in areas outside of the main office. However, with respect torepairand service centers of factory authorized representatives of franchiseddealers, such centers may display a certified true copy of thecertificateof accreditation of the parent company.
Art. 130. Suspension,Revocation or Cancellation of Certification of Accreditation. - Anycertificate of accreditation may be suspended, revoked or cancelled bythe Department, for cause, after due notice and hearing.
Art. 131. Declarationof Policy. - The State shall simplify, clarify and modernize thelawsgoverning credit transactions and encourage the development of fair andeconomically sound consumer credit practices. To protect the consumerfromlack of awareness of the true cost of credit to the user, the Stateshallassure the full disclosure of the true cost of credit.
Art. 132. Determinationof Finance Charges. - Except as otherwise provided, the amount ofthefinance charges in connection with any consumer credit transactionshallbe determined as the sum of all charges, payable directly or indirectlyby the person to whom the credit is extended and imposed directly orindirectlyby the creditor as an accident to the extension of credit, includinganyof the following type of charges which are applicable:
- (a) interest or timepricedifferential and any amount payable under point or other system ofadditionalcharges;
(b) collection feeswhichinclude finder's fees or similar charges;
(c) credit investigationfees;
(d) notarial fees, ifany;
(e) premium or otherchargesfor any guarantee or insurance protecting the creditor against theobligor'sdefault or other credit loss. The implementing agency shall determinewhatitems shall be exempted from the computation of the finance charges.
Art. 133. Determination ofSimple Annual Rate. - The simple annual rate applicable to anyextensionof consumer credit shall be determined in accordance with the rules andregulations promulgated by the implementing agency.
Art. 134. DelinquencyCharges. - With respect to a consumer credit transaction otherthanone pursuant to an open-end credit plan, the parties may agree to adelinquencycharge on any installment not paid in full on or before the tenth dayafterits scheduled or deferred due date.
Art. 135. DeferralCharges.- The parties in a consumer credit transaction may at any timeagreein writing to a deferral of all or part of one or more unpaidinstallmentsand the creditor may make and collect a charge which shall not exceedtherate previously disclosed pursuant to the provisions on disclosure. Adeferralcharge may be collected at the time it is assessed.
Art. 136. FinanceChargeon Refinancing. - The parties may agree on a finance charge in anopen-endcredit plan based on the amount financed resulting from the refinancingor consolidation at a rate not exceeding that permitted by the rulespromulgatedby the implementing agency.
Art. 137. Right toPrepay.- The person to whom credit is extended may prepay in full or in part,at any time without penalty, the unpaid balance of any consumer credittransaction.
Art. 138. Rebate onPrepayment.- Upon prepayment in full of the unpaid balance of a precomputedconsumercredit transaction, refinancing or consolidation, an amount not lessthanthe unearned portion of the finance charge calculated according to thisArticle shall be rebated to the person to whom credit is extended.
The unearned portion ofthe precomputed finance charge on consumer transactions repayable insubstantiallyequal successive installments shall be equal to at least that portionoffinance charge which the sums of the installment balances of theobligationscheduled to be outstanding after the installment date nearest the dateof prepayment bears to the sum of all installment balances originallyscheduledto be outstanding under the obligation.
For the purpose ofdeterminingthe installment date nearest the date of prepayment when payments aremonthly,any payment made on or before the fifteenth day following aninstallmentdue date shall be deemed to have been made as of the installment duedate,and if prepayment occurs after the fifteenth day, it shall be deemed tohave been made on the succeeding installment due date. This method ofcalculatingrebates may be referred to as the "rule of 78" or "sum ofthedigits" method.
The implementing agencymay promulgate and adopt rules and regulations with respect to otherprecomputedconsumer credit transactions.
Art. 139. GeneralRequirementson Credit Cost Disclosure. - Each creditor shall disclose, inaccordancewith the regulations of the implementing agency, to each person to whomconsumer credit is extended, the disclosures required by this Act.
If there is more than oneobligor, a creditor need not furnish a statement of informationrequiredunder this Act to more than one of them.
Art. 140. Credit Sale,Required Disclosures. - Any creditor extending a consumer creditsaleother than one pursuant to an open-end credit plan shall disclose in astatement to the extent applicable, the following information:
- (a) the cash price ordeliveredprice of the property or service to be acquired;
(b) the amounts, if any,to be credited as downpayment and/or trade in;
(c) the total amount tobe financed or the difference between the amounts set forth underparagraphs(1) and (2);
(d) the charges,individuallyitemized, which are paid or to be paid by such person in connectionwiththe transaction but which are not incident to the extension of credit;
(e) the finance chargeexpressedin terms of pesos and centavos;
(f) the percentage thatthe finance charge bears to the total amount to be financed expressedasa simple annual rate on the outstanding balance of the obligation;
(g) the effectiveinterestrate;
(h) the number, amountanddue dates or periods of payments scheduled to repay the indebtedness;and
(i) the default,delinquencyor similar charges payable in the event of late payments.
Art. 141. Required Disclosureon Open-end Credit Plan. - Before opening any account under anopen-endconsumer credit plan, the creditor shall disclose, to the extentapplicable,the following information:
- (a) the conditions underwhich a finance charge may be imposed, including the time period, ifany,within which any credit extended may be repaid without incurring afinancecharge;
(b) the method ofdeterminingthe balance upon which a finance charge may be imposed;
(c) the method ofdeterminingthe amount of the finance charges, including any minimum or fixedamountimposed as a finance charge;
(d) where one or moreperiodicrates may be used to compute a finance charge, each such rate, therangeof balances to which it is applicable, and the corresponding simpleannualrate;
(e) the conditions underwhich the creditor may impose a security lien and a description of thegoods to which such lien may attach.
The implementing agency shallprescribe regulations consistent with commonly accepted accountingstandardsto carry out the requirements of this Article.
Art. 142. RequiredDisclosureson Consumer Loans Not Under Open-End Credit Plan. - Any creditorextendinga consumer loan or in a transaction which is neither a consumer creditsale nor under an open-end consumer credit plan shall disclose, to theextent applicable, the following information:
- (a) the amount of creditof which the debtor will have the actual use, or which is or will bepaidto him or for his account or to another person on his behalf;
(b) all charges,individuallyitemized, which are included in the amount of credit extended but whichare not part of the finance charge;
(c) the total amount tobe financed or the sum of the amounts referred to in paragraphs (a) and(b);
(d) the finance chargeexpressedin terms or pesos and centavos;
(e) the effectiveinterestrate;
(f) the percentage thatthe finance charge bears to the total amount to be financed expressedasa simple annual rate on the outstanding unpaid balance of theobligation;
(g) the default,delinquencyor similar charges payable in the event of late payments;
(h) a description of anysecurity interest held or to be held or to be retained or acquired bythecreditor in connection with the extension of credit and a clearidentificationof the property to which the security interest relates.
Art. 143. Form and Timingof Disclosure. - All disclosures required under this Act shall bemadeclearly and conspicuously in writing before the transaction isconsummated.
Art. 144. PeriodicStatementof Charges. - The periodic statement transmitted by the creditor inconnection with any extension of consumer credit other than under anopen-endconsumer credit plan, shall set forth the following information:
- (a) the simple annualrate;
(b) the effectiveinterestrate;
(c) the date by which,orthe period (if any) within which payment must be made in order to avoidadditional finance charges;
(d) method ofdeterminingthe balance upon which the finance charge may be imposed.
Art. 145. Exempted Transaction.- The foregoing requirements on consumer credit transactions shallnot apply to the following credit transactions:
- (a) those involvingextensionof credits for business or commercial purposes, or to the Governmentandgovernmental agencies and instrumentalities, juridical entities or toorganizations;
(b) those in which thedebtoris the one specifying the definite set of credit terms such as bankdeposits,insurance contracts, sale of bonds or analogous transactions.
Art. 146. Sale of ConsumerProducts On Installment Payment. - In a consumer credit sale otherthan one pursuant to an open-end credit plan, the obligation of theconsumerto whom credit is being extended shall be evidenced by a singleinstrumentwhich shall include, in addition to the disclosures required by thisact,the signature of the seller and the person to whom credit is extended,the date it was signed, a description of the property sold and adescriptionof any property transferred as a trade-in. The instrument evidencingthecredit shall contain a clear and conspicuous typewritten notice to theperson to whom credit is being extended that:
- (a) he should not signtheinstrument if it contains any blank space;
(b) he is entitled to areasonable return of the precomputed finance charge if the balance isprepaid;and
(c) he is entitled to anexact, true copy of the agreement.
In cases where the instrumentwill be sold at a discount to a bank, financing company or otherlender,the said transferee shall be subject to all claims and defenses whichthedebtor could assert against the seller of consumer products obtainedheretoor with the proceeds thereof.
Art. 147. Penalties.- Any creditor who in connection with any credit transaction fails todiscloseto any person any information in violation of this Chapter or theImplementingrules and regulations issued thereunder shall be liable to such personin the amount of One thousand pesos (P1,000.00) or in amount equal totwicethe finance charge required by such creditor in connection with suchtransaction,whichever is greater, except that such liability shall not exceed Threethousand pesos (P3,000.00) for any credit transaction and actualdamageswith the non-disclosure of the required information. Action to recoversuch penalty may be brought by such person within one (1) year from thedate of the occurrence of the violation in any court of competentjurisdiction.
Art. 149. Composition.- The Council shall be composed of representatives from the followinggovernmentagencies and non-government agencies:
- (a) Department of Tradeand Industry;
(b) Department ofEducation,Culture and Sports;
(c) Department of Health;
(d) Department ofa*griculture;
(e) four (4)representativesfrom consumer organizations of nationwide base to be chosen by thePresidentfrom among the nominees submitted by the various consumer groups in thePhilippines;
(f) two (2)representativesfrom business/industry sector to be chosen by the President from amongthe nominees submitted by the various business organizations.
Art. 150. Chairman; Functions.- The Council shall be headed and presided by a Chairman who shallbe elected by the members from among themselves. He shall establish,withthe concurrence of the Council, the policies, procedures and standardsto govern the implementation and interpretation of the functions anddutiesof the Council.
Art. 151. Per Diems ofMembers. - The members of the Council shall be entitled to anallowanceof Five hundred pesos (P500.00) per meeting actually attended but notmorethan Two thousand pesos (P2,000.00) a month.
Art. 152. TheSecretariat.- The Council shall appoint an Executive Director who shall assistthe Chairman and act as Secretary of the Council. The Department ofTradeand Industry shall provide the Secretariat which shall assist theCouncilin the effective performance of its functions.
- (a) to rationalize andcoordinatethe functions of the agencies charged with consumer programs andenforcementof consumer related laws to the end that an effective, coordinated andintegrated system of consumer protection, research and implementationandenforcement of such laws shall be achieved;
(b) to recommend newpoliciesand legislation or amendments to existing ones;
(c) to monitor andevaluateimplementation of consumer programs and projects and to takeappropriatesteps to comply with the established priorities, standards andguidelines;
(d) to seek theassistanceof government instrumentalities in the form of augmenting the need forpersonnel facilities and other resources;
(e) to undertake acontinuingeducation and information campaign to provide the consumer with, amongothers:
- (1) facts aboutconsumerproducts and services;
(2) consumer rightsandthe mechanism for redress available to him;
(3) information on newconceptsand developments on consumer protection;
(4) general knowledgeandawareness necessary for a critical and better judgment on consumption;and
(5) such other mattersofimportance to the consumer's general well-being.
Art. 154. Consumer Educationin Schools. - The Department of Education, Culture and Sports,withthe cooperation and advice of the Council, shall develop and adopt aconsumereducation program which shall be integrated into existing curricula ofall public and private schools from primary to secondary level.
A continuing consumereducationprogram for out-of-school youth and adults shall likewise be developedand undertaken.
The consumer educationprogramshall include information regarding:
- (a) the consumer as aresponsiblemember of society and his responsibility to develop:
- (1) critical awarenesswhichis the responsibility to be alert and questioning about the use of andprice and quality of goods he uses;
(2) assertivenesswhichis the responsibility to assert himself and act so he is assured of afairdeal, aware that for as long as he remains to be a passive consumer hewill continue to be exploited;
(3) social concernwhichis the responsibility to be aware of the impact of his consumption onothercitizens, especially the disadvantaged; and
(4) environmentalawarenesswhich is the responsibility to understand the environmentalconsequencesof his consumption, recognizing his individual and socialresponsibilityto conserve natural resources for future generations;
(b) consumer rights; and
(c) practical problemstheconsumer faces in daily life.
Art. 155. Concerned Departments,Powers and Duties Under Existing Laws. - The concerned departmentsshall continue to exercise the powers and duties provided to them underexisting laws, unless repealed or modified accordingly.
Art. 156. ConsumerParticipation.- The Departments shall establish procedures for meaningfulparticipationby consumers or consumer organizations in the development and review ofdepartment rules, policies and programs. Such procedures shall includeprovisions for a forum, where consumers can express their concerns andrecommendations to decision makers. The departments shall exert effortsto inform consumers of pending proceedings where their participation isimportant.chanrobles law
Art. 157. AdvisoryServices.- The departments shall render advisory services upon request. Thetechnicaland legal assistance shall be made available to consumers and theirorganizationsand to the general public.
Art. 158. ConsumerProgramReforms. - Each concerned Department shall formulate and develop aconsumer program consonant with the objectives of its charter or theapplicablelaws which program shall embody the standards set forth in Sections 156and 157 of this Act. Copies of these programs shall be furnished theCouncil.The Executive Director shall, among his other functions, monitor andcoordinatethe implementation by the concerned agencies of their respectiveconsumerprograms.
After the close of thefiscalyear, the Council shall submit to Congress and the Office of thePresident,a full report on the progress of the implementation of consumerprograms.
Art. 160. ConsumerArbitrationOfficers. - The concerned Department Secretaries shall appoint asmanyqualified consumer arbitration officers as may be necessary for theeffectiveand efficient protection of consumer rights: Provided, however, Thatthere shall be not more than ten (10) consumer arbitration officers perprovince, including the National Capital Region.
Art. 161. ConsumerArbitrationOfficers; Qualifications. - The consumer arbitration officer mustbea college graduate with at least three (3) years experience in thefieldof consumer protection and shall be of good moral character.
Art. 162. ArbitrationOfficers; Jurisdiction. - The consumer arbitration officers shallhaveoriginal and exclusive jurisdiction to mediate, conciliate, hear andadjudicateall consumer complaints, Provided, however, That this does notprecludethe parties from pursuing the proper judicial action.
Art. 163. InvestigationProcedure. - (a) The consumer arbitration officer shall conducthearingson any complaint received by him or referred by the Council.
(b) Parties to the caseshall be entitled to notice of the hearing, and shall be informed ofthedate, time and place of the same. A copy of the complaint shall beattachedto the notice.
(c) The department shallafford all interested parties the opportunity to submit a statement offacts, arguments, offers of settlements or proposals of adjustments.
(d) The Consumerarbitrationofficer shall first and foremost ensure that the contending partiescometo a settlement of the case.
(e) In the event that asettlement has not been effected, the Mediation officer may now proceedto formally investigate, hear and decide the case.
(f) The Consumerarbitrationofficer may summon witnesses, administer oaths and affirmations, issuesubpoena and subpoena duces tecum, rule upon offers ofproofand receive relevant evidence, take or cause deposition to be takenwheneverthe ends of justice would be served thereby, regulate the course of thehearing, rule on any procedural request or similar matter and decidethecomplaint.
In hearing the complaint,the mediation officer shall use every and all reasonable means toascertainthe facts in each complaint speedily and objectively without regard tostrict rules of evidence prevailing in suits before courts. Thecomplaintsshall be decided within fifteen (15) days from the time theinvestigationwas terminated.
Art. 164. Sanctions.- After investigation, any of the following administrative penaltiesmaybe imposed even if not prayed for in the complaint:
- (a) the issuance of aceaseand desist order, Provided, however, That such order shallspecifythe acts that respondent shall cease and desist from and shall requirehim to submit a report of compliance therewith within a reasonable time;
(b) the acceptance of avoluntary assurance of compliance or discontinuance from the respondentwhich may include any or all of the following terms and conditions:
- (1) an assurance tocomplywith the provisions of this Act and its implementing rules andregulations;
(2) an assurance torefrainfrom engaging in unlawful acts and practices or unfair or unethicaltradepractices subject of the formal investigation;
(3) an assurance tocomplywith the terms and conditions specified in the consumer transactionsubjectof the complaint;
(4) an assurance torecall,replace, repair, or refund the money value of defective productsdistributedin commerce;
(5) an assurance toreimbursethe complaint out of any money or property in connection with thecomplaint,including expenses in making or pursuing the complaint, if any, and tofile a bond to guarantee compliance therewith.
(c) restitution orrescissionof the contract without damages;
(d) condemnation andseizureof the consumer product found to be hazardous to health and safetyunlessthe respondent files a bond to answer for any damage or injury that mayarise from the continued use of the product;
(e) the imposition ofadministrativefines in such amount as deemed reasonable by the Secretary, which shallin no case be less that Five hundred pesos (P500.00) nor more thanThreehundred thousand pesos (P300,000.00) depending on the gravity of theoffense,and an additional fine of not more than One thousand pesos (P1,000.00)or each day of continuing violation.
Art. 165. Appeal from Orders.- Any order, not interlocutory of the Consumer arbitration officer,becomesfinal and executory unless appealed to the Department Secretaryconcernedwithin fifteen (15) days from receipt of such order. An appeal may beentertainedonly on any of the following grounds:
- (a) grave abuse ofdiscretion;
(b) the order is inexcessof the jurisdiction or authority of the consumer arbitration officer;
(c) the order is notsupportedby the evidence or there is serious error in the findings of facts.
Art. 166. Decision on Appeal.- The Secretary shall decide the appeal within thirty (30) days fromreceiptthereof. The decision becomes final after fifteen (15) days fromreceiptthereof unless a petition for certiorari is filed with the proper court.
Art. 168. Applicationof Laws Enacted Prior to the Act. - All actions or claims accruingprior to the effectivity of this Act shall be determined in accordancewith the acts, laws, decrees and regulations in force at the time oftheaccrual.
Art. 169. Prescription.- All actions or claims accruing under the provisions of this Act andtherules and regulations issued pursuant thereto shall prescribe withintwo(2) years from the time the consumer transaction was consummated or thedeceptive or unfair and unconscionable act or practice was committedandin case of hidden defects, from discovery thereof.chanrobleslaw
Art. 170. RepealingClause.- All laws, executive orders, rules and regulations or partsthereofwhich are inconsistent with this Act are hereby repealed or amendedaccordingly.
Art. 171. Appropriations.- For the initial operating expenses of the National Consumer AffairsCouncil,the sum of Two million pesos (P2,000,000.00) is hereby appropriated outof funds of the National Treasury not otherwise appropriated.Thereafter,such sums as may be necessary to carry out its purpose shall beincludedin the General Appropriations Act.
Art. 172. SeparabilityClause. - If for any reason any article or provision of this Act orany portion thereof or the application of such article, provision orportionthereof to any person, group or circ*mstance is declared invalid orunconstitutional,the remainder of this Act shall not be affected by such decision.chanrobleslaw
Art. 173. Effectivity.- This Act shall take effect thirty (30) days from the date of itspublicationin the Official Gazette.
Approved:April 13, 1992
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