Consumer Act of the Philippines and Lemon Law

Question 1

Deceptive Sales

Answer 1

Act or practice shall be deemed deceptive whenever the producer, manufacturer, supplier, or seller through concealment, false representation of fraudulent manipulation induces a customer to enter into a sales or lease transaction of any consumer product or service

Question 2

When does a deceptive act or practice by a seller in connection with a consumer transaction violates the Act

Answer 2

Before, during, and after the Transaction

Question 3

Unfair or Unconscionable Sales Act or Practice

Answer 3

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 surrounding; induces the consumer to enter into a sales or lease transaction grossly inimical to the interest of the consumer of grossly one-sided in favor of the producer, manufacturer, distributor, supplier or seller

Question 4

Chain Distribution Plans or Pyramid Sales Schemes

Answer 4

Sales devices whereby a person upon condition that he makes an investment is granted by the manufacturer of his representative a right to recruit for profit one or more additional persons who will also be granted such right to recruit upon condition of making similar investments

Question 5

Rules on Home Solicitation Sales

Answer 5

Not allowed without first obtaining a permit from the Department. Can only be conducted between 9am to 7pm unless previously agreed upon by both parties

Question 6

Penalty for Unconscionable Sales or Deceptive Sales

Answer 6

Fine: 5000 to 10,000
Imprisonment: Not more than 1 year
or both

Question 7

Prohibited Acts on Labeling and Packaging

Answer 7

Display or distribute or to cause to be displayed or distributed in commerce any consumer product whose package or label does not conform to the provision hereof

Question 8

Minimum Labeling Requirements for Consumer Products

Answer 8

Indicate the following:
1. Correct and registered trade name or brand name
2. Trademark
3. Business name
4. Addresses of manufacturer, importer, packer, repacker of the product
5. General make or active ingredients
6. Net quality of contents
7. Country of manufacture, if imported
8. If underwent license from principal, label shall also state that fact

Question 9

Additional Labeling Requirements for Food

Answer 9

1. Expiry date
2. Whether consumer product is semi-processed, fully processed, ready to cook, ready to eat, prepared food or just plain mixture
3. Nutritive value
4. Whether the ingredients used are natural or synthetic
5. Such other labeling requirements as the concerned department

Question 10

Additional Labeling Requirements for Cosmetic

Answer 10

1. Expiry
2. Whether or not it may be an irritant
3. Precautions or contract indications; and
4. Such other labeling requirements as the concerned department may deem necessary and reasonable

Question 11

Additional Labeling Requirements for Drugs

Answer 11

The Generics Act

Question 12

Additional Labeling Requirement for Cigarettes

Answer 12

All cigarettes for sale or distribution within the country shall be contained in a package which shall bear the following statements or its equivalent in Filipino: Warning…

Question 13

Penalties for Mislabeled Food/Cosmetic/Drug/Device/Hazardous Substance

Answer 13

Fine: 500- 20,000;
Imprisonment: 3 months to 2 years; or
both

Question 14

Penalties for Not any of the above mislabeled products

Answer 14

Fine: 200 - 5000;
Imprisonment: 1 month to 1 year; or
both

Question 15

Which products must bear the signal word Danger

Answer 15

Substances which are extremely flammable, corrosive, or highly toxic

Question 16

Which products must bear the signal word warning/caution with a bright red or orange color with a black symbol

Answer 16

All other hazarduse substances

Question 17

Which products must bear the signal word warning/caution with a bright red or orange color with a black symbol

Answer 17

All other hazardous substances

Question 18

Which products must have the word poison

Answer 18

Highly toxic hazardous substances

Question 19

A contract of sale with conditions and warranties shall be governed primarily by:

Answer 19

The Civil Code

Question 20

Requisites for Lemon Law

Answer 20

1. Brand new motor vehicles
2. Purchased in the Philippines
3. Reported by a consumer to be in nonconformity with the vehicle’s manufacturer specifications
4. Within 12 months or 20,000 kilometers after such delivery whichever comes first

Question 21

Repair attempts

Answer 21

After at least 4 separate repair attempts for the same complaint

Question 22

How many days from date of notice of release shall the repair be deemed successful

Answer 22

Within 30 days

Question 23

Remedies for Dispute Resolution

Answer 23

1. Mediation
2. Arbitration
3. Adjudication

Question 24

Determination of Reasonable Allowance

Answer 24

Whichever is lower between:
1. 20% per annum dedcution from the purchase price; or
2. (Distance traveled (in kms) * purchase price)/100,000

Question 25

Motor Vehicle defined in Lemon Law

Answer 25

Any self-propelled, 4 wheeled road vehicle designed to carry passengers excluding motorcycles, delivery trucks, dump trucks, sprinklers, lawn mowers, and heavy equipment