Topic 2 - Consumer Welfare and Protection

Question 1

Policy of the state to:

Protect the interests of the consumer.

Promote his/her general welfare.

Establish standards of conduct for business and industry.

Answer 1

CONSUMER ACT OF THE
PHILIPPINES (R.A. 7394)

Question 2

WHEN IS THE
CONSUMER ACT
APPLICABLE?

Answer 2

If the COMPLAINANT is a natural person;

If the SUBJECT of the violation is a consumer product or service; and

If the NATURE of the complaint is regarding any of the mentioned concerns

Question 3

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.

Answer 3

Consumer product or service

Question 4

Agricultural Products
Quality and Safety
Labeling and Packaging

Answer 4

Department of Agriculture (DA)

Question 5

Consumer Education and Information

Answer 5

Department of Education

Question 6

Food, drugs, cosmetics & devices and hazardous substances.
Quality and safety
Labeling and packaging
Advertising and sales promotion
Price tag

Answer 6

Department of Health

Question 7

Consumer Credit Transactions extended by banks and other financial intermediaries

Answer 7

Bangko Sentral ng Pilipinas (BSP)

Question 8

Credit Facilities extended to consumers by financing companies

Answer 8

Securities and Exchange Commission (SEC)

Question 9

Weights and measures (metrication)
Labeling & Packaging
Advertising and Sales Promotion
Consumer products & service warranties
Liability for Products & Services
Service & repair shops

Answer 9

DEPARTMENT OF TRADE & INDUSTRY

Question 10

Defines the responsibilities and liabilities of manufacturers, importers, traders, wholesalers, distributors, retailers and/or their agents.
With regard to products covered by mandatory products; and
Prescribes penalties and violations

Answer 10

DAO No. 2, series of 2002
CONSUMER PRODUCT QUALITY & SAFETY

Question 11

Products for which PS or ICC marking is compulsory.

Products which affect life, safety and health of people and its environment.

Answer 11

Mandatory Products

Question 12

Example of Mandatory Products

Answer 12

Building & Construction
Electrical Products
Chemical Products
Consumer Products

Question 13

Manufacturers/Importers shall secure

Answer 13

Philippine Standard (PS) licencse
Import Commodity Clearance (ICC)

Question 14

Distributors/Agents shall sell products with

Answer 14

PS mark
ICC mark

Question 15

PROHIBITED ACTS UNDER THIS DAO

Answer 15

Distribution, sale or offer for sale or manufacture of any mandatory product.

Without the required PS or ICC mark.
Fake, withdrawn, suspended or cancelled BPS License.

Question 16

Periodic or special market survey and random sampling of products

Answer 16

Market Monitoring Activity

Question 17

At manufacturer’s site
At port areas
Other different procedures

Answer 17

Product Specific Monitoring Scheme

Question 18

Two GENERAL IMPLEMENTING GUIDELINES

Answer 18

a. Market Monitoring Activity
b. Product Specific Monitoring Scheme

Question 19

ALL consumer products sold in RETAIL to the public shall bear an appropriate price tag, label or marking indicating the price of EACH article. Such consumer products shall not be sold at a price higher than the stated prices.

Answer 19

Price Tag Law

Question 20

Why is a need for price tag?

Answer 20

Provide adequate information
Minimize haggling
Expedites transactions

Question 21

ELEMENTS OF A PRICE TAG

Answer 21

1. Price of the product per units (e.g. kilo, dozen, pair etc.) in pesos & centavos,
2. Philippine Currency
3. Clearly written
4. Visibility at a distance or upon examination
5. No alterations or erasures

Question 22

WHEN ARE ERASURES OR ALTERATIONS IN PRICE TAGS ALLOWED?

Answer 22

ONLY in price reduction sales and promotions campaigns.

Question 23

IS A PRICE TAG REQUIRED FOR LUMBER?

Answer 23

Lumber should be tagged or labeled indicating the:

Price
OFFICIAL NAME (SPECIES) of the wood

Question 24

WHEN IS A PRICE LIST ALLOWED?

Answer 24

When a consumer product is too small or the nature of which makes it impractical to place a price tag thereon.

In case of consumer services.

Question 25

IS THE USE OF CODES IN A PRICE TAG ALLOWED?

Answer 25

NO, prices of consumer products & services shall NOT be written in code.

Question 26

Shelf price may be used provided that is in combination with the use of product identification codes which when scanned will show the price of the item.

Answer 26

ACCORDING TO DTI’S DEPARTMENT ADMINISTRATIVE NO. 09

Question 27

ESTABLISHEMENTS ALLOWED TO USE SHELF PRICING Requirements

Answer 27

1. Use of itemized receipt or cash register tape which states the description size, quantity and individual price of the consumer goods purchased. 2. Installation of at least one (1) VERIFICATION COUNTER PER STOREY.

Question 28

DUTIES OF THE RETAILER

Answer 28

Price tag shall be attached to the shelf and properly secured. Price tag is the same and/or consistent with the price stated in the Price Verification Counter and/or Cash Register

Question 29

1. A consumer product or service has the sponsorship, approval, performance, characteristics, ingredients, accessories, uses, or benefits it does not have; 2. A consumer product or service is of a particular standard, quality, grade, style, or model when in fact it is not; 3. A consumer product is new, original or unused, when in fact it is in a deteriorated, altered, reconditioned, reclaimed or second-hand state; 4. A consumer product or service is available to the costumer for a reason that is different from the fact; 5. A consumer product or service has been supplied in accordance with the previous representation when in fact it is not; 6. A consumer product or service can be supplied in a quantity greater than the supplier intends; 7. A service, or repair of a consumer product is needed when in fact it does not. 8. A specific price advantage of a consumer product when in fact it does not; 9. The sales act or practice involves or does not involve a warranty, a clear disclaimer of warranties, particular warranty terms or other rights, remedies or obligations if the indication is false; 10. The seller or supplier has a sponsorship, approval, or affiliation he does not have.

Answer 29

DECEPTIVE, UNFAIR & UNCONSCIONABLE SALES ACTS & PRACTICE

Question 30

WHAT CAN A CONSUMER DO IF HE HAS A COMPLAINT?

Answer 30

1. Identify the problem & its fair settlement. 2. Gather documentation. 3. Go back to where you made the purchase. 4. Write a formal letter to the agency concerned.

Question 31

Process of Complaint

Answer 31

1. Provincial Office (Mediation Officer) Elevate 2. Regional Office (Arbitration Officer) Appeal 3. Department Secretary Appeal 4. Appeal Court or Supreme Court

Question 32

WHAT ARE THE REMEDIES AVAILABLE TO CONSUMERS?

Answer 32

1. Replacement or repair of products or services 2. Refund of payment made 3. Restoration or cancellation of contract 4. Reimbursement to compliant of amount spent in pursuing the complaint