Consumer Act of the Philippines and Lemon Law Flashcards
Deceptive Sales
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
When does a deceptive act or practice by a seller in connection with a consumer transaction violates the Act
Before, during, and after the Transaction
Unfair or Unconscionable Sales Act or Practice
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
Chain Distribution Plans or Pyramid Sales Schemes
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
Rules on Home Solicitation Sales
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
Penalty for Unconscionable Sales or Deceptive Sales
Fine: 5000 to 10,000
Imprisonment: Not more than 1 year
or both
Prohibited Acts on Labeling and Packaging
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
Minimum Labeling Requirements for Consumer Products
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
Additional Labeling Requirements for Food
- Expiry date
- Whether consumer product is semi-processed, fully processed, ready to cook, ready to eat, prepared food or just plain mixture
- Nutritive value
- Whether the ingredients used are natural or synthetic
- Such other labeling requirements as the concerned department
Additional Labeling Requirements for Cosmetic
- Expiry
- Whether or not it may be an irritant
- Precautions or contract indications; and
- Such other labeling requirements as the concerned department may deem necessary and reasonable
Additional Labeling Requirements for Drugs
The Generics Act
Additional Labeling Requirement for Cigarettes
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…
Penalties for Mislabeled Food/Cosmetic/Drug/Device/Hazardous Substance
Fine: 500- 20,000;
Imprisonment: 3 months to 2 years; or
both
Penalties for Not any of the above mislabeled products
Fine: 200 - 5000;
Imprisonment: 1 month to 1 year; or
both
Which products must bear the signal word Danger
Substances which are extremely flammable, corrosive, or highly toxic
