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CONSUMERS WELFARE

AND PROTECTION
LAWS

THAT PROTECT THE CONSUMERS


WELFARE
8

BASIC CONSUMER RIGHTS

WHAT'S THE LAW IN THE


PHILIPPINES THAT PROTECTS
YOU AS A CONSUMER?
The law that safeguards and
protects the consumers in the
Philippines is the Republic
Act 7394 (R.A. 7394).

WHAT IS REPUBLIC
ACT
7394?
Republic Act 7394 (RA 7394) is the
"Consumer Act of the Philippines" which
was promulgated on July 15, 1992. It is the
policy of the State to protect the interest of
the consumer, promote his general welfare
and to establish standards of conduct for
business and industry.

RA 7394 OR OTHERWISE KNOWN AS


"CONSUMER ACT OF THE
PHILIPPINES?
Protection

of consumers against
hazards to health and safety;
Protection
of consumers against
deceptive, unfair and unconscionable
sales
acts
and
practices;
("unconscionable" means not right, not
reasonable or not guided by conscience)

Provision

of information and education to


facilitate sound choice and the proper
exercise of rights by the consumer;
Provision of adequate rights and means of
redress ("redress" means remedy or to set
right <an undesirable or unfair situation>);
Involvement of consumer representative in
the formulation of social and economic
policies.

WHAT GOVERNMENT AGENCIES IN


THE PHILIPPINES IMPLEMENT THE
"CONSUMER ACT OF THE
PHILIPPINE" AND WHAT ARE THEIR
AREAS OF CONCERN?
The following agencies implement the Consumer
Act:
Department of Trade and Industry (DTI)
Department of Agriculture (DA)
Department of Education (DepEd)
Department of Health (DOH)
Bangko Sentral ng Pilipinas (BSP)
Securities and Exchange Commission (SEC)

DTI HANDLES THE FOLLOWING


AREAS OF CONCERN:
Consumer

Products and Service


Warranties
Consumer Product Quality and Safety
Deceptive, unfair and unconscionable
sales acts and practices
Price Tag
Weights and measures (metrication)
Labeling and Packaging
Advertising and sales promotion
Liability for Products and Services
Service and repair shops

DEPARTMENT OF
AGRICULTURE (DA)
Agricultural

Products
Quality and Safety
Labelling and Packaging

DEPARTMENT OF EDUCATION
(DEPED)
Consumer

education and information

Department of Health (DOH)


Consumer

credit transactions
extended by banks and other
financial intermediaries

Securities and Exchange Commission


(SEC)
Credit facilities extended to
consumers by financing

WHEN IS THE CONSUMER


ACT APPLICABLE?
The
Act
is applicable if:
the

COMPLAINANT is a natural
person;
the SUBJECT of the violation is a
consumer product or service; and
the NATURE of the complaint is
regarding any of the
aforementioned concern

WHAT IS CONSUMER
PRODUCT OR
SERVICE?
Consumer
product

or service means

goods, service and credits, debts or


obligations which are primarily for
personal, family, household or
agricultural purpose, which shall
include, but not limited to food,
drugs, cosmetics and devices.

WHAT SHOULD A CONSUMER DO


IF HE/SHE HAS A COMPLAINT?
Identify

the problem. Create a fair settlement.


Would any of the following options do:
money back (Refund)?
product repair (Repair)?
exchange or change item (Replace)?
Gather sales receipts, warranties, repair orders,
contract/agreement, cancelled checks, or any
document which will support the complaint.
These documents will serve as your evidence
or proof.

WHAT SHOULD A CONSUMER DO


IF HE/SHE HAS A COMPLAINT?

Go back to the store or office where you made the


purchase. Talk to the person who sold you the product
or service. Be calm and accurate in telling the problem
and what steps should be taken in order to solve the
problem. If not satisfied, write a letter.
In the letter, indicate your name and address; the
name and address of the establishment against
whom you are complaining; the circumstances
regarding the complaint including names, places
and dates etc.. Enclose supporting documents such
as official receipts, deed of sale and the like. And be
prepared to make a personal appearance when
called, especially during the mediation conference.

HOW LONG CAN A


CONSUMER FILE A
COMPLAINT?

Within 2 years starting from the


time the consumer transaction
happened (when the deceptive or
unfair transaction took place).

WHAT ARE THE REMEDIES


AVAILABLE TO
CONSUMERS?

For Administrative Proceedings:

replacement or repair of product or services

reimbursement to complainant of amount spent in pursuing the complaint

refund of payment made

restitution or rescission of contract

For civil/criminal action

civil action

refund of payment made

award of damages

restitution or rescission of contract

replacement or repair of product or services

reimbursement to complainant of amount spent in pursuing the complaint

criminal action - defendant, if found guilty by the court can be sentenced t


imprisonment or payment of fine or both, at the discretion of the court.

HOW ARE CONSUMER


COMPLAINTS RESOLVED?

Complaints are resolved through:


The implementing agency where the complaint is
filed, after jurisdiction is determined, will call the
parties for mediation conference and find ways for
amicable settlement.
If no amicable settlement is arrived at, the
complaint will be scheduled for preliminary
conference for the parties to enter into stipulation
of facts or arrive at simplification of issues.

8 BASIC RIGHTS OF A CONSUMER


1. Right to Basic Needs, which
guarantees survival, adequate food,
clothing, shelter, health care,
education and sanitation. With this
right, consumers can look forward to
the availability of basic and prime
commodities at affordable prices and
good quality.

8 BASIC RIGHTS OF A CONSUMER


2. Right to Safetythe consumer should
be protected against the marketing of
goods or the provision of services that are
hazardous to health and life.
3. Right to Informationthe consumer
should be protected against dishonest or
misleading advertising or labeling and
has the right to be given the facts and
information needed to make an informed
choice.

8 BASIC RIGHTS OF A CONSUMER


4. Right to Choosethe consumer has the
right to choose from among various
products at competitive prices with an
assurance of satisfactory quality.
5. Right to Representationthe right to
express consumer interests in the making
and execution of government policies.
6. Right to Redress the right to be
compensated for misrepresentation,
shoddy goods or unsatisfactory services.

8 BASIC RIGHTS OF A CONSUMER


7. Right to Consumer Education,
which is the right to acquire knowledge
and skills necessary to be an informed
customer.
8. Right to a Healthy Environment
the right to live and work in an
environment which is neither
threatening nor dangerous and which
permits a life of dignity and well-being.