Bukidnon State University

COLLEGE OF LAW

OBLIGATIONS & CONTRACTS

2nd Semester, AY 2023-2024

Module 3: Law on Sales

LESSON 2: INDIVIDUAL OUTPUT

NAME: Bon Harold T. Dumas

STATE POLICIES UNDER THE CONSUMER ACT OF THE PHILIPPINES

STATE POLICIES Answer the questions below:
(under )
a) protection against hazards to health and safety; Under Article 5 of the Republic Act No. 7394,
the state protects its people against hazards to
health and safety by:

a) developing and providing safety and quality

standards for consumer products, including
performance or use-oriented standards, codes of
practice and methods of tests;

b) assisting the consumers in evaluating the

quality, including safety, performance and
comparative utility of consumer products;

c) protecting the public against unreasonable

risks of injury associated with consumer
products;

d) undertaking research on quality improvement

of products and investigation into causes and
prevention of product related deaths, illness and
injuries;
b) protection against deceptive, unfair and Under Article 50 and 52 of the Republic Act No.
unconscionable sales acts and practices; 7394, the state protects its people against
deceptive, unfair or unconscionable sales acts
and practices by prohibiting deceptive sales acts
or practices.

An act or practice shall be deemed deceptive

whenever the producer, manufacturer, supplier or
seller, through concealment, false representation
of fraudulent manipulation, induces a consumer
to enter into a sales or lease transaction of any
consumer product or service.

The act or practice of a seller or supplier is

deceptive when it represents that:
a) a consumer product or service has the
sponsorship, approval, performance,
characteristics, ingredients, accessories, uses, or
benefits it does not have;

b) a consumer product or service is of a particular

standard, quality, grade, style, or model when in
fact it is not;

c) a consumer product is new, original or unused,

when in fact, it is in a deteriorated, altered,
reconditioned, reclaimed or second-hand state;

d) a consumer product or service is available to

the consumer for a reason that is different from
the fact;

e) a consumer product or service has been

supplied in accordance with the previous
representation when in fact it is not;

f) a consumer product or service can be supplied

in a quantity greater than the supplier intends;

g) a service, or repair of a consumer product is

needed when in fact it is not;

h) a specific price advantage of a consumer

product exists when in fact it does not;

i) the sales act or practice involves or does not

involve a warranty, a disclaimer of warranties,
particular warranty terms or other rights,
remedies or obligations if the indication is false;
and

j) the seller or supplier has a sponsorship,

approval, or affiliation he does not have.

An act or practice shall be deemed unfair or

unconscionable whenever the producer,
manufacturer, distributor, supplier or seller, by
taking advantage of the consumer's physical or
mental infirmity, ignorance, illiteracy, lack of
time or the general conditions of the environment
or surroundings, induces the consumer to enter
into a sales or lease transaction grossly inimical
to the interests of the consumer or grossly one-
sided in favor of the producer, manufacturer,
distributor, supplier or seller.
 In determining whether an act or practice is
unfair and unconscionable, the following
circumstances shall be considered:

a) that the producer, manufacturer, distributor,

supplier or seller took advantage of the inability
of the consumer to reasonably protect his interest
because of his inability to understand the
language of an agreement, or similar factors;

b) that when the consumer transaction was

entered into, the price grossly exceeded the price
at which similar products or services were readily
obtainable in similar transaction by like
consumers;

c) that when the consumer transaction was

entered into, the consumer was unable to receive
a substantial benefit from the subject of the
transaction;

d) that when the consumer was entered into, the

seller or supplier was aware that there was no
reasonable probability or payment of the
obligation in full by the consumer; and

e) that the transaction that the seller or supplier

induced the consumer to enter into was
excessively one-sided in favor of the seller or
supplier.
c) provision of information and education to Under RA 7394 the following are the rights of a
facilitate sound choice and the proper exercise of consumer:
rights by the consumer;  The right to safety;
Every consumer has the right to be protected
against products, production processes and
services that are hazardous to health or life.
 The right to information;
Consumers have the right to be given the facts
needed to make an informed choice, and to be
protected against dishonest or misleading
advertising and labelling.
 The right to choose;
Consumers likewise have the right to have
consumer interests represented in the making
and execution of government policy, and in the
development of products and services, offered at
competitive prices with an assurance of
satisfactory quality.
 The right to representation;
Consumers shall have the right to have their
interests as consumers be represented in the
making and execution of government policy,
and in the development of products and
services.
  The right to redress;
Consumers shall also have the right to receive
fair settlement of just claims, including
compensation for misrepresentation, shoddy
goods or unsatisfactory services.
 The right to consumer education
Consumers shall have the right to acquire
knowledge and skills needed to make informed,
confident choices about goods and services,
while being aware of basic consumer rights and
responsibilities and how to act on them.

d) provision of adequate rights and means of Under Chapter V of RA 7394 the following are
redress; and the rights and means of redress available to a
consumer:

a) Liability for the Defective Products. – Any

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

A product is defective when it does not offer the

safety rightfully expected of it, taking relevant
circumstances into consideration, including but
not limited to:

a) presentation of product;

b) use and hazards reasonably expected

of it;

c) the time it was put into circulation.

A product is not considered defective because

another better quality product has been placed in
the market.

The manufacturer, builder, producer or importer

shall not be held liable when it evidences:

a) that it did not place the product on the

market;

b) that although it did place the product

on the market such product has no
defect;
 c) that the consumer or a third party is
solely at fault.

b) Liability for Defective Services. – The

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

The service is defective when it does not provide

the safety the consumer may rightfully expect of
it, taking the relevant circumstances into
consideration, including but not limited to:

a) the manner in which it is provided;

b) the result of hazards which may

reasonably be expected of it;

c) the time when it was provided.

A service is not considered defective because of

the use or introduction of new techniques.

The supplier of the services shall not be held

liable when it is proven:

a) that there is no defect in the service

rendered;

b) that the consumer or third party is

solely at fault.

c) Liability for Product and Service

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

If the imperfection is not corrected within thirty

(30) days, the consumer may alternatively
demand at his option:
 a) the replacement of the product by
another of the same kind, in a perfect
state of use;

b) the immediate reimbursement of the

amount paid, with monetary updating,
without prejudice to any losses and
damages;

c) a proportionate price reduction.

The parties may agree to reduce or increase the

term specified in the immediately preceding
paragraph; but such shall not be less than seven
(7) nor more than one hundred and eighty (180)
days.

The consumer may make immediate use of the

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

If the consumer opts for the alternative under

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

d)Liability for Product Quantity

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

a) the proportionate price

b) the supplementing of weight or

measure differential;

c) the replacement of the product by

another of the same kind, mark or model,
without said imperfections;
 d) the immediate reimbursement of the
amount paid, with monetary updating
without prejudice to losses and damages
if any.

e)Liability for Service Quality Imperfection. –

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

a) the performance of the services,

without any additional cost and when
applicable;

b) the immediate reimbursement of the

amount paid, with monetary updating
without prejudice to losses and damages,
if any;

c) a proportionate price reduction.

e) involvement of consumer representatives in One situation where consumer representatives
the formulation of social and economic policies. are involved in the formulation of social and
economic policies in the Philippines is in the
development of policies related to
telecommunications and internet services.
Consumer representatives actively participate in
discussions and consultations with government
agencies, regulatory bodies like the National
Telecommunications Commission (NTC), and
telecommunications companies. They advocate
for policies that ensure affordable and reliable
access to telecommunications and internet
services for all consumers, especially in remote
areas.
PROHIBITED ACTS & PENALTIES
PROHIBITED ACTS PENALTIES
(Identify the corresponding penalty for each of
(Enumerate the prohibited acts under the the prohibited acts under the Consumer Act here)
Consumer Act here)

Article 18. Prohibited Acts. – It shall be Article 19. Penalties. –

unlawful for any person to:
a) Any person who shall violate any
a) manufacture for sale, offer for sale, provision of Article 18 shall upon
distribute in commerce, or import into conviction, be subject to a fine of not less
the Philippines any consumer product than One thousand pesos (P1,000.00) but
which is not in conformity with an not more than Ten thousand pesos
 applicable consumer product quality or (P10,000.00) or imprisonment of not less
safety standard promulgated in this Act; than two (2) months but not more than
one (1) year, or both upon the discretion
b) manufacture for sale, offer for sale, of the court. If the offender is an alien, he
distribute in commerce, or import into shall be deported after service of
the Philippines any consumer product sentence and payment of fine without
which has been declared as banned further deportation proceedings.
consumer product by a rule in this Act;
b) In case the offender is a naturalized
c) refuse access to or copying of citizen, he shall, in addition to the
pertinent records or fail or refuse to penalty prescribed herein, suffer the
permit entry of or inspection by penalty of cancellation of his
authorized officers or employees of the naturalization certificate and its
department; registration in the civil register and
immediate deportation after service of
d) fail to comply with an order issued sentence and payment of fine.
under Article II relating to notifications
of substantial product hazards and to c) Any director, officer or agent of a
recall, repair, replacement or refund of corporation who shall authorize, order or
unsafe products; perform any of the acts or practices
constituting in whole or in part a
e) fail to comply with the rule prohibiting violation of Article 18, and who has
stockpiling. knowledge or notice of noncompliance
received by the corporation from the
concerned department, shall be subject
to penalties to which that corporation
may be subject.

In case the violation is committed by, or in the

interest of a foreign juridical person duly licensed
to engage in business in the Philippines, such
license to engage in business in the Philippines
shall immediately be revoked.

Article 40. Prohibited Acts. – The following Article 41. Penalties. –

acts and the causing thereof are hereby
prohibited: a) Any person who violates any of the
provisions of Article 40 hereof shall,
a) the manufacture, importation, upon conviction, be subject to
exportation, sale, offering for sale, imprisonment of not less than one (1)
distribution or transfer of any food, drug, year but not more than five (5) years, or
device or cosmetic that is adulterated or a fine of not less than Five thousand
mislabeled; pesos (P5,000.00) but not more than Ten
thousand pesos (P10,000.00), or both
b) the adulteration or misbranding of any such imprisonment and fine, in the
food, drug, device or cosmetic; discretion of the Court.

c) the refusal to permit entry or Should the offense be committed by a

inspection as authorized by Article 36 to juridical person, the Chairman of the
allow samples to be collected; Board of Directors, the President,
General Manager, or the partners and/or
d) the giving of a guaranty or
undertaking referred to in Article 41 (b)
hereof which guaranty or undertaking is the persons directly responsible therefor
false, except by a person who relied upon shall be penalized.
a guaranty or undertaking to the same
effect signed by, and containing the b) No person shall be subject to the
name and address of, the person residing penalties of sub-article (a) of this Article
in the Philippines from whom he for (1) having sold, offered for sale or
received in good faith the food, drug, transferred any product and delivered it,
device, or cosmetic or the giving of a if such delivery was made in good faith,
guaranty or undertaking referred to in unless he refuses to furnish on request of
Article 41 (b) which guaranty or the Department, the name and address of
undertaking is false; the person from whom he purchased or
received such product and copies of all
e) forging, counterfeiting, simulating, or documents, if any there be, pertaining to
falsely representing or without proper the delivery of the product to him; (2)
authority using any mark, stamp, tag, having violated Article 40 (a) if he
label, or other identification device established a guaranty or undertaking
authorized or required by regulations signed by, and containing the name and
promulgated under the provisions of this address of, the person residing in the
Act; Philippines from whom he received in
good faith the product, or (3) having
f) the using by any person to his own violated Article 40 (a), where the
advantage, or revealing, other than to the violation exists because the product is
Department or to the courts when adulterated by reason of containing a
relevant in any judicial proceeding under color other than the permissible one
this Act, any information concerning any under regulations promulgated by the
method or process which as a trade secret Department in this Act, if such person
is entitled to protection; establishes a guaranty or undertaking
signed by, and containing the name and
g) the alteration, mutilation, destruction, address, of the manufacturer of the color,
obliteration, or removal of the whole or to the effect that such color is
any part of the labeling of, or the doing permissible, under applicable
of any other act with respect to a food, regulations promulgated by the
drug, device, or cosmetic, if such act is Department in this Act.
done while such product is held for sale
(whether or not the first sale) and results
in such product being adulterated or
mislabeled;

h) the use, on the labeling of any drug or

in any advertising relating to such drug,
of any representation or suggestion that
an application with respect to such drug
is effective under Article 31 hereof, or
that such drug complies with the
provisions of such articles;

i) the use, in labeling, advertising or

other sales promotion, of any reference
to any report or analysis furnished in
compliance with Section 19 of Executive
Order 175, series of 1987;

j) the manufacture, importation,

exportation, sale, offering for sale,
 distribution, or transfer of any drug or
device which is not registered with the
Department pursuant to this Act;

k) the manufacture, importation,

exportation, sale, offering for sale,
distribution, or transfer of any drug or
device by any person without the license
from the Department required in this
Act;

l) the sale or offering for sale of any drug

or device beyond its expiration or expiry
date;

m) the release for sale or distribution of

a batch of drugs without batch
certification when required under Article
34 hereof.

Article 46. Prohibited Acts. – It shall be Article 47. Penalties, exception. –

unlawful for any person to:
a) Any person who violates any of the
a) introduce or deliver for introduction provisions of Article 46 shall, upon
into commerce of any mislabeled conviction, be subject to a fine of not less
hazardous substance or banned than One thousand pesos (P1,000.00) or
hazardous substance; an imprisonment of not less than six (6)
months but not more than five (5) years
b) alter, mutilate, destroy, obliterate or or both upon the discretion of the court.
remove the whole or any part of the label
of a mislabeled hazardous substance, or b) No person shall be subject to the
banned hazardous substance, if such act penalties of paragraph (a) of this Article
is done while the substance is in for (1) having violated paragraph (c) of
commerce or while the substance is held Article 46 unless he refuses to furnish,
for sale, whether or not it is the first sale; upon request by the Department or his
representative, the name and address of
c) receive in commerce any mislabeled the person from who he purchased such
hazardous substance or banned hazardous substances and (2) having
hazardous substance and the delivery or violated paragraph (a) of Article 46, if he
preferred delivery thereof at cost or establishes a guaranty or undertaking
otherwise; signed by, and containing the name and
address of, the person from whom he
d) give the guaranty or undertaking received in good faith, the hazardous
referred to in paragraph (b) of Article 93 substance to the effect that the hazardous
and paragraph (b) of Article 45 if such substance is not a mislabeled hazardous
guaranty or undertaking if false except substance or banned hazardous within
by a person who relied upon a guaranty the meaning of that term in this Act.
or undertaking which he received in
good faith;

e) introduce or deliver for introduction

into commerce or receive in commerce
and subsequently deliver or preferred at
 cost or otherwise, or a hazardous
substance in a refused food, drug,
cosmetic or device container or in a
container which, though not a reused
container, is identifiable as a food, drug,
cosmetic or device container by its
labeling or by other identification. The
use of a used food, drug, cosmetic or
device container for a hazardous
substance does not diminish the danger
posed by the hazardous substance
involved, therefore, such substance shall
be deemed a mislabeled hazardous
substance.
Article 64. Fraudulent Practices Relative to Article 65. Penalties. –
Weights and Measures. – The following acts
relating to weights and measures are prohibited: a) Any person who shall violate the
provisions of paragraphs (a) to (f) and
a) for any person other than the official paragraph (l) of Article 64 or its
sealer or his duly authorized implementing rules and regulations
representative to place or attach an shall, upon conviction, be subject to a
official tag, seal, sticker, mark, stamp, fine of not less than Two hundred pesos
brand or other characteristic sign used to (P200.00) but not more than One
indicate that such instrument of weight thousand pesos (P1,000.00) or by
and measure has officially been tested, imprisonment of not more than one (1)
calibrated, sealed or inspected; year or both upon the discretion of the
court.
b) for any person to imitate any seal,
sticker, mark, stamp, brand, tag or other b) Any person who shall violate the
characteristic sign used to indicate that provisions of paragraph (g) of Article 64
such instrument of weight or measures for the first time shall be subject to a fine
has been officially tested, calibrated, of not less than Five hundred pesos
sealed or inspected; (P500.00) or by imprisonment of not less
than one (1) month but not more than
c) for any person other than the official five (5) years or both, upon the discretion
sealer or his duly authorized of the court.
representative to alter in any way the
certificate or receipt given by the official c) The owner-possessor or user of
sealer or his duly authorized instrument of weights and measure
representative as an acknowledgment enumerated in paragraphs (h) to (k) of
that the instrument for determining Article 64 shall, upon conviction, be
weight or measure has been fully tested, subject to a fine of not less than Three
calibrated, sealed or inspected; hundred pesos (P300.00) or
imprisonment not exceeding one (1)
d) for any person to make or knowingly year, or both, upon the discretion of the
sell or use any false or counterfeit seal, court.
sticker, brand, stamp, tag, certificate or
license or any dye for printing or making
the same or any characteristic sign used
to indicate that such instrument of weight
or measure has been officially tested,
calibrated, sealed or inspected;
 e) for any person other than the official
sealer or his duly authorized
representative to alter the written or
printed figures, letters or symbols on any
official seal, sticker, receipt, stamp, tag,
certificate or license used or issued;

f) for any person to use or reuse any

restored, altered, expired, damaged
stamp, tag certificate or license for the
purpose of making it appear that the
instrument of weight of measure has
been tested, calibrated, sealed or
inspected;

g) for any person engaged in the buying

and selling of consumer products or of
furnishing services the value of which is
estimated by weight or measure to
possess, use or maintain with intention to
use any scale, balance, weight or
measure that has not been sealed or if
previously sealed, the license therefor
has expired and has not been renewed in
due time;

h) for any person to fraudulently alter

any scale, balance, weight, or measure
after it is officially sealed;

i) for any person to knowingly use any

false scale, balance, weight or measure,
whether sealed or not;

j) for any person to fraudulently give

short weight or measure in the making of
a scale;

k) for any person, assuming to determine

truly the weight or measure of any article
bought or sold by weight or measure, to
fraudulently misrepresent the weight or
measure thereof; or

l) for any person to procure the

commission of any such offense
abovementioned by another.

Instruments officially sealed at some previous

time which have remained unaltered and accurate
and the seal or tag officially affixed thereto
remains intact and in the same position and
condition in which it was placed by the official
sealer or his duly authorized representative shall,
if presented for sealing, be sealed promptly on
demand by the official sealer or his authorized
representative without penalty except a surcharge
fixed by law or regulation.
Article 72. Prohibited Acts. – The following Article 73. Penalties. –
acts are prohibited:
a) Any person who shall violate the
a) refusal without any valid legal cause provisions of Article 67 shall be subject
by the total manufacturer or any person to fine of not less than Five hundred
obligated under the warranty or pesos (P500.00) but not more than Five
guarantee to honor a warranty or thousand pesos (P5,000.00) or an
guarantee issued; imprisonment of not less than three (3)
months but not more than two (2) years
b) unreasonable delay by the local or both upon the discretion of the court.
manufacturer or any person obligated A second conviction under this
under the warranty or guarantee in paragraph shall also carry with it the
honoring the warranty; penalty or revocation of his business
permit and license.
c) removal by any person of a product's
warranty card for the purpose of evading b) Any person, natural or juridical,
said warranty obligation; committing any of the illegal acts
provided for in Chapter III, except with
d) any false representation in an respect to Article 67, shall be liable for a
advertisement as to the existence of a fine of not less than One thousand pesos
warranty or guarantee. (P1,000.00) but not more than Fifty
thousand pesos (P50,000.00) or
imprisonment for a period of at least one
(1) year but not more than five (5) years,
or both, at the discretion of the court.

The imposition of any of the penalties herein

provided is without prejudice to any liability
incurred under the warranty or guarantee.

Article 76. Prohibited Acts on Labeling and Article 95. Penalties. –

Packaging. – It shall be unlawful for any person,
either as principal or agent, engaged in the a) Any person who shall violate the
labeling or packaging of any consumer product, provisions of Title III, Chapter IV of this
to display or distribute or to cause to be displayed Act, or its implementing rules and
or distributed in commerce any consumer regulations, except Articles 81 to 83 of
product whose package or label does not conform the same Chapter, shall be subject to a
to the provisions of this Chapter. fine of not less than Five hundred pesos
(P500.00) but not more than Twenty
The prohibition in this Chapter shall not apply to thousand pesos (P20,000.00) or
persons engaged in the business of wholesale or imprisonment of not less than three (3)
retail distributors of consumer products except to months but not more than two (2) years
the extent that such persons: or both, at the discretion of the court:
Provided, That, if the consumer product
a) are engaged in the packaging or is one which is not a food, cosmetic,
labeling of such products; drug, device or hazardous substance, the
penalty shall be a fine of not less than
Two hundred pesos (P200.00) but not
more than Five thousand pesos
 b) prescribe or specify by any means the (P5,000.00) or imprisonment of not less
manner in which such products are than one (1) month but not more than one
packaged or labeled; or (1) year or both, at the discretion of the
court.
c) having knowledge, refuse to disclose
the source of the mislabeled or b) Any person who violates the
mispackaged products. provisions of Article 81 to 83 for the first
time shall be subject to a fine of not less
than Two hundred pesos (P200.00) but
not more than Five 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
discretion of the court. A second
conviction under this paragraph shall
also carry with it the penalty of
revocation of business permit and
license.

Article 97. Liability for the Defective Article 107. Penalties. – Any person who shall
Products. Any Filipino or foreign manufacturer, violate any provision of this Chapter or its
producer, and any importer, shall be liable for implementing rules and regulations with respect
redress, independently of fault, for damages to any consumer product which is not food,
caused to consumers by defects resulting from cosmetic, or hazardous substance shall upon
design, manufacture, construction, assembly and conviction, be subject to a fine of not less than
erection, formulas and handling and making up, Five thousand pesos (P5,000.00) and by
presentation or packing of their products, as well imprisonment of not more than one (1) year or
as for the insufficient or inadequate information both upon the discretion of the court.
on the use and hazards thereof.
In case of juridical persons, the penalty shall be
Article 99. Liability for Defective Services. – imposed upon its president, manager or head. If
The service supplier is liable for redress, the offender is an alien, he shall, after payment of
independently of fault, for damages caused to fine and service of sentence, be deported without
consumers by defects relating to the rendering of further deportation proceedings.
the services, as well as for insufficient or
inadequate information on the fruition and
hazards thereof.

Article 100. Liability for Product and Service

Imperfection. – The suppliers of durable or
nondurable consumer products are jointly liable
for imperfections in quality that render the
products unfit or inadequate for consumption for
which they are designed or decrease their value,
and for those resulting from inconsistency with
the information provided on the container,
packaging, labels or publicity
messages/advertisement, with due regard to the
variations resulting from their nature, the
consumer being able to demand replacement to
the imperfect parts.
Article 101. Liability for Product Quantity
Imperfection. – Suppliers are jointly liable for
imperfections in the quantity of the product
when, in due regard for variations inherent
thereto, their net content is less than that
indicated on the container, packaging, labeling or
advertisement, the consumer having powers to
demand, alternatively, at his own option:

a) the proportionate price

b) the supplementing of weight or

measure differential;

c) the replacement of the product by

another of the same kind, mark or model,
without said imperfections;

d) the immediate reimbursement of the

amount paid, with monetary updating
without prejudice to losses and damages
if any.

The provisions of the fifth paragraph of Article

99 shall apply to this Article.

The immediate supplier shall be liable if the

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

Article 102. Liability for Service Quality

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

a) the performance of the services,

without any additional cost and when
applicable;

b) the immediate reimbursement of the

amount paid, with monetary updating
without prejudice to losses and damages,
if any;

c) a proportionate price reduction.

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

Improper services are those which prove to be

inadequate for purposes reasonably expected of
them and those that fail to meet the provisions of
this Act regulating service rendering.

Article 103. Repair Service Obligation. –

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

Article 104. Ignorance of Quality

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

Article 105. Legal Guarantee of Adequacy. –

The legal guarantee of product or service
adequacy does not require an express instrument
or contractual exoneration of the supplier being
forbidden.

Article 106. Prohibition in Contractual

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

Article 110. False, Deceptive or Misleading Article 123. Penalties. –

Advertisement. – It shall be unlawful for any
person to disseminate or to cause the a) any person, association, partnership or
dissemination of any false, deceptive or corporation who shall violate any of the
misleading advertisement by Philippine mail or provisions of Articles 110 to 115 shall,
in commerce by print, radio, television, outdoor upon conviction, be subject to a fine of
advertisement or other medium for the purpose of not less than Five Hundred Pesos
inducing or which is likely to induce directly or (P500.00) but not more than Five
indirectly the purchase of consumer products or thousand pesos (P5,000.00) or an
services. imprisonment of not less than one (1)
month but not more than (6) months or
Article 111. Price Comparisons. – Comparative both upon the discretion of the court.
price advertising by sellers of consumer products
or services shall conform to the following
conditions:

a) Where the comparison relates to a

former price of the seller, the item
compared shall either have been sold at
that price within the ninety (90) days
immediately preceding the date of the
advertisement, or it shall have been
offered for sale for at least four (4) weeks
during such ninety-day period. If the
comparison does not relate to an item
sold or offered for sale during the ninety-
day period, the date, time or seasonal
period of such sale or offer shall be
disclosed in the advertisement.

b) Where the comparison relates to a

seller's future price, the future price shall
take effect on the date disclosed in the
advertisement or within ninety (90) days
after the price comparison is stated in the
advertisement. The stated future price
shall be maintained by the seller for a
period of at least four (4) weeks after its
effective date: Provided, That
compliance thereof may be dispensed
with in case of circumstances beyond the
seller's control.

c) Where the comparison relates to a

competitor's price, the competitor's price
shall relate to the consumer products or
services advertised or sold in the ninety-
day period and shall be representative of
the prices similar consumer products or
services are sold or advertised in the
locality where the price comparison was
made.

Article 112. Special Advertising Requirements

for Food, Drug, Cosmetic, Device, or
Hazardous Substance. –

a) No claim in the advertisement may be

made which is not contained in the label
or approved by the concerned
department.
 b) No person shall advertise any food,
drug, cosmetics, device, or hazardous
substance in manner that is false,
misleading or deceptive or is likely to
create an erroneous impression regarding
its character, value, quantity,
composition, merit, or safety.

c) Where a standard has been prescribed

for a food, drug, cosmetic, or device, no
person shall advertise any article or
substance in such a manner that it is
likely to be mistaken for such product,
unless the article complies with the
prescribed standard or regulation.

d) No person shall, in the advertisement

of any food, drug, cosmetic, device, or
hazardous substance, make use of any
reference to any laboratory report of
analysis required to be furnished to the
concerned department, unless such
laboratory report is duly approved by
such department.

e) Any businessman who is doubtful as

to whether his advertisement relative to
food, drug, cosmetic, device, or
hazardous substance will violate or does
not conform with this Act or the
concerned department's pertinent rules
and regulations may apply to the same
for consideration and opinion on such
matter before such advertisement is
disseminated to the public. In this case,
the concerned department shall give its
opinion and notify the applicant of its
action within thirty (30) days from the
date of application; otherwise, the
application shall be deemed approved.

f) No person shall advertise any food,

drug, cosmetic, device, or hazardous
substance unless such product is duly
registered and approved by the
concerned department for use in any
advertisement.

Article 113. Credit Advertising. – No

advertisement to aid, promote, or assist, directly
or indirectly, any extension of consumer credit
may:
 a) state that a specific periodic consumer
credit amount or installment amount can
be arranged, unless the creditor usually
and customarily arranges credit payment
or installments for that period and in that
amount; and

b) state that a specified down payment is

required in any extension of consumer
credit, unless the creditor usually or
customarily arranges down payment in
that amount.

Article 114. Advertising of Open-end Credit

Plan. – In case of an open-end credit plan, the
rate of interest and other material features of the
plan shall be disclosed in the advertisement.

Article 115. Special Claims. – Any

advertisement which makes special claims shall:

a) substantiate such claims; and

b) properly use research result, scientific

terms, statistics or quotations.

Article 116. Permit to Conduct Promotion. – b) Any violation of the provisions of Articles 116
No person shall conduct any sales campaigns, to 121 shall, upon conviction, subject the
including beauty contest, national in character, offenders to a fine of not less than Two hundred
sponsored and promoted by manufacturing pesos (P200.00) but not more than Six hundred
enterprises without first securing a permit from pesos (P600.00) or an imprisonment of not less
the concerned department at least thirty (30) than one (1) month but not more than six (6)
calendar days prior to the commencement months or both upon the discretion of the court.
thereof. Unless an objection or denial is received If the violation was committed by a juridical
within fifteen (15) days from filing of the person, the manager, representative, director,
application, the same shall be deemed approved agent or employee of said juridical person
and the promotion campaign or activity may be responsible for the act shall be deported after
conducted: Provided, That any sales promotion service of sentence and payment of the fine
campaign using medical prescriptions or any part without need for further deportation proceedings.
thereof or attachment thereto for raffles or a
promise of reward shall not be allowed, nor a
permit be issued thereof.

Article 117. Suspension of Publication or

Dissemination of Information. – The concerned
department may, after due notice and hearing,
suspend the publication and dissemination of any
information accompanying a sales promotion
campaign, if it finds the campaign to be in
violation of the provisions of this Chapter or its
implementing rules and regulations.
Article 118. Conduct of Sales Promotion. – A
sales promotion which is intended for broad
consumer participation and utilizes mass media
shall indicate the duration, commencement and
termination of the promotion, the deadline for
submission of entries and the governing criteria
or procedure to be followed therein.

Article 119. Packaging of Products Under

Promotion. – The packaging of the products
covered by the sales promotion shall not be
tampered, neither shall any change in the
product's package be affected without the
authority of the sponsoring agency or the owner
or manufacturer of the product.

Article 120. Change in Starting and

Termination Dates of Promotion. – The
concerned department shall be advised of any
delay of starting dates or termination dates and
details of any change in the conduct of a sales
promotion. Any change in the termination dates
shall be published in a newspaper of general
circulation before the expiration of the original
schedule or the termination date, whichever
comes first.

Article 121. Determination of Winners. – The

winners in any sales promotion shall be
determined at a definite time and place and shall
be verified by a representative of the concerned
department and the sponsor. Immediately after
the winners are selected or determined, a list with
their addresses and corresponding prizes shall be
submitted to the concerned department. All
winners shall be announced or published in the
same manner that the sales promotion was
announced or published: Provided, That
publication in a newspaper of 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 the amount of the price is Five
hundred pesos (P500.00) or more, the winners
shall also be notified in writing by registered mail
or any communication wherein proof of notice or
service can be verified.

KEY TAKE-AWAY/LEARNING
My key take-away from the Consumer Act of the Philippines (Republic Act No. 7394) is that it
establishes comprehensive rights and protections for consumers in various ways. The Act prioritizes
consumer welfare by ensuring access to safe and quality products and services. It emphasizes the
importance of consumer education and information to empower individuals to make informed and
free choices. The Act requires businesses for fair practices and provides avenues for redress of
disputes or issues when it arises. Overall, the Consumer Act highlights the government's commitment
in promoting a fair, transparent, and responsible marketplace that protects the interests and well-
being of consumers across the Philippines.