The Consumer Act of the Philippines Part 2

Summary

Republic Act 7394, also known as the Consumer Act of the Philippines, is designed to protect consumer rights and regulate business practices. The Act prohibits deceptive and unfair sales practices, such as false claims about product quality or condition, and mandates clear and transparent warranty terms. It also enforces labeling requirements to ensure consumers have accurate product information, particularly for safety and nutritional purposes. The law establishes standards for product safety, especially for children, and requires clear price tags on consumer goods. In case of product imperfection, consumers are entitled to repairs, refunds, or price reductions.

Takeaways

• 😀 Consumer protection against deceptive, unfair, and unconditional sales acts or practices is a central focus of the Consumer Act of the Philippines.
• 😀 Misleading claims about a product's quality, benefits, or ingredients are considered deceptive sales practices.
• 😀 The sale of goods presented as new, but are actually deteriorated or secondhand, is prohibited.
• 😀 A seller’s false representation about a product's availability or quantity constitutes an unfair practice.
• 😀 Consumers cannot be induced to enter into one-sided transactions that harm their interests or grossly favor the seller.
• 😀 Producers, manufacturers, and sellers must honor express warranties by clearly stating terms, coverage, and actions to take if a defect arises.
• 😀 Refusing to honor a warranty or delaying warranty claims without valid cause is considered a prohibited act.
• 😀 All consumer products must have accurate and clear labeling, including manufacturer details, quantity, ingredients, and expiry date (for food).
• 😀 The use of price tags is mandatory on consumer products, and the price must not exceed the displayed amount.
• 😀 Products that fail to meet expected quality or performance must be replaced or refunded within 30 days, ensuring consumer rights are upheld.

Q & A

What is the main purpose of the Consumer Act of the Philippines (Republic Act No. 7394)?

The main purpose of the Consumer Act of the Philippines is to protect consumers from deceptive, unfair, and unconscionable sales acts or practices. It ensures that consumers are provided with truthful information about products and services, and that their rights are upheld in transactions.

What are some examples of deceptive sales acts as outlined in the Act?

Examples of deceptive sales acts include misrepresenting the sponsorship, performance, ingredients, or benefits of a product or service; selling secondhand or altered goods as new; and providing false information about the availability or quality of a product.

What constitutes an unfair or unconscionable sales act under the Consumer Act?

An unfair or unconscionable sales act involves taking advantage of a consumer’s physical or mental condition, ignorance, or other vulnerabilities, to induce them into transactions that are grossly unfair or one-sided in favor of the seller or producer.

How does the Act protect consumers from unfair pricing practices?

The Act protects consumers by prohibiting transactions where the price grossly exceeds the price of similar products or services available elsewhere. It ensures that consumers can make informed decisions based on reasonable prices.

What are the responsibilities of sellers or manufacturers regarding warranties under the Consumer Act?

Sellers or manufacturers must clearly state the terms of warranties, including the covered product parts, the procedure for claiming the warranty, and the responsibilities of both the consumer and the seller. They must also honor the warranty and address defects in a timely manner.

What are the prohibited acts related to warranties under the Consumer Act?

Prohibited acts regarding warranties include refusing to honor a warranty without valid cause, unreasonably denying or delaying warranty claims, and removing warranty cards from products to avoid warranty obligations.

What are the labeling requirements for consumer products under the Act?

Consumer products must be labeled with accurate information, including the product name, manufacturer's details, net quantity, ingredients, and country of manufacture. Additional information may be required for specific products like food or flammable items.

How does the Act address the protection of children from hazardous products?

The Act allows the relevant department to establish special packaging standards for products that pose a risk to children. This is to prevent physical injuries or illnesses resulting from the handling or use of hazardous products.

What are the rights of consumers if a product is found to be defective under the Act?

Consumers have the right to request a remedy if a product is defective. This may include product replacement, refund, or price reduction. The consumer can also choose to have the defective product repaired.

What additional labeling requirements apply to food products under the Consumer Act?

Food products must include expiration dates, preparation instructions, nutritional value, and information on whether the ingredients used are natural or synthetic. Additional labeling may be required based on the product's specific needs.