Consumer Protection Act

Question 1

means the prepared and through any form of mass medium, subsequently applied, disseminated or circulated advertising matter.

Answer 1

Advertisement

Question 2

means the business of conceptualizing, presenting or making available to the public, through any form of mass media, fact, data or information about the attributes, features, quality or availability of consumer products, services or credit.

Answer 2

Advertising

Question 3

means a service organization or enterprise creating, conducting, producing, implementing or giving counsel on promotional campaigns or programs through any medium for and in behalf of any advertiser.

Answer 3

An advertising agency or an agent.

Question 4

means the client of the advertising agency or the sponsor of the advertisement on whose account the advertising is prepared, conceptualized, presented or disseminated.

Answer 4

Advertiser

Question 5

means a purpose related to the production, harvest, processing, manufacture, distribution, storage, transportation, marketing, exhibition or disposition of agricultural, fishery or marine products.

Answer 5

Agricultural purpose

Question 6

In a consumer credit sale, this constitutes the cash price plus non- finance charges less the amount of any downpayment whether made in cash or in property traded in, or in a consumer loan the amount paid to, receivable by or paid or payable to the buyer or to another person in his behalf.

Answer 6

Amount financed.

Question 7

Means (1) any toy or other articles intended for useby children, which are hazardous per se, or which bear or contain substances harmful tohuman beings; or (2) any hazardous substance intended or packaged in a form suitable foruse in the household, which the implementing agency by regulation, classifies as “bannedhazardous substance” notwithstanding the existence of cautionary labels, to safeguardpublic health and safety:

Provided, That the implementing agency may, by regulation,exempt from this Act, articles which by reason of their functional purpose require theinclusion of the hazardous substance involved and which bear appropriate labels givingadequate directions and warnings for their safe use.

Procedures for the issuance, amendment or repeal of regulations pursuant to clause (2) orparagraph (g) of this Article shall be governed by the rules and regulations promulgated bythe Department of Health; Provided, That if the Department of Health finds that thedistribution for household use of the hazardous substance involved presents an imminenthazard to the public health, it may publish in a newspaper of general circulation a notice ofsuch finding and such substance shall be deemed to be a “banned hazardous substance”pending the issuance of regulation formally banning such substance.

Answer 7

Banned hazardous substance

Question 8

A quantity of any drug or device produced during a given cycle of manufacture.

Answer 8

Batch

Question 9

Any name or designation other than thetrue name of a person, partnership, corporation or association which is used or signed inconnection with his/its business or in:
1) any written or printed receipt, including receipt for tax on business;
2) any written or printed contract not verified by a notary public;
3) any written or printed evidence of any agreement or business transaction; and
4) any sign or billboard kept conspicuously exhibited in plain view in or at the placeof the business, announcing a firm name or business name or style.

Answer 9

Business name, firm name or style

Question 10

In case of trade transaction, means the amount of money which would constitute full payment upon delivery of the property (except money) or service purchased at the creditor’s place of business. In the case of financial transactions, cash price represents the amount received by the debtor upon consummation of the credit transaction, net of finance charges collected at the time the credit is extended, if any.

Answer 10

Cash price or delivered price

Question 11

Sales deviceswhereby a person, upon condition that he makes an investment, is granted by themanufacturer or his representative a right to recruit for profit one or more additionalpersons who will also be granted such right to recruit upon condition of making similarinvestments:
Provided, That, the profits of the person employing such a plan are derivedprimarily from the recruitment of other persons into the plan rather than from the sale ofconsumer products, services and credit:
Provided, further, That the limitation on the numberof participants does not change the nature of the plan.

Answer 11

Chain distribution plans or pyramid sales schemes.

Question 12

A consumer sale wherein the seller uses the announcement to create the impression that he is willing to give large discounts or merchandise in order to reduce, dispose or close out his inventory and business.

Answer 12

Closing out sale

Question 13

The sale, lease, exchange, traffic or distribution of goods, commodities, productions, services or property, tangible or intangible.

Answer 13

Commerce.

Question 14

A natural person who is a purchaser, lessee, recipient or prospective purchaser, lessor or recipient of consumer products, services or credit.

Answer 14

Consumer.

Question 15

Any credit extended by a creditor to a consumer for the sale or lease of any consumer product or service under which part or all of the price or payment therefor is payable at some future time, whether in full or in installments.

Answer 15

Consumer credit.

Question 16

A loan made by the lender to a person which is payable in installments for which a finance charge is or may be imposed. This term includes credit transactions pursuant to an open-end-credit plan other than a seller credit card.

Answer 16

Consumer loan.

Question 17

Goods, services and credits, debts or obligations which are primarily for personal, family, household or agricultural purposes, which shall include but not limited to food, drugs, cosmetics, and devices.

Answer 17

Consumer products and services.

Question 18

A consumer product safety standard
described in Article 78 or a rule under this Chapter declaring a consumer product banned
hazardous product.

Answer 18

Consumer product safety rule.

Question 19

1.a) A sale, lease, assignment, award by chance, or other disposition of consumer products, including chattels that are intended to be affixed to land, or of services, or of any right, title, or interest therein, except securities as defined in the Securities Act and contracts of insurance under the Insurance Code, or
1.b) Grant of provision of credit to a consumer for purposes that are primarily personal, family, household or agricultural, or

(2) a solicitation or promotion by a supplier with respect to a transaction referred to in clause (1).

Answer 19

Consumer transaction

Question 20

Any substance which on contact with living tissue will cause destruction of tissue by chemical action.

Answer 20

Corrosive

Question 21

(1) Articles intended to be rubbed, poured, sprinkled or sprayed on, introduced into or otherwise applied to the human body or any part thereof for cleansing, beautifying, promoting attractiveness, or altering the appearance, and
(2) Article intended for uses as a component of any such article except that such term shall not include soap.

Answer 21

Cosmetics

Question 22

Any consumer product which, or the container orlabeling of which, without authorization, bears the trademark, trade name, or otheridentifying mark, imprint, or device, or any likeness thereof, of a consumer productmanufacturer, processor, packer, distributor, other than the person or persons who in fact manufactured, processed, packed or distributed such product and which thereby falselypurports or is represented to be the product of, or to have been packed or distributed bysuch consumer product manufacturer, processor, packer, or distributor.

Answer 22

Counterfeit product.

Question 23

Any card, plate, coupon book or other credit device existing for the purpose of obtaining money, property, labor or services on credit.

Answer 23

Credit card.

Question 24

A sale of products, services or an interest in land to a person oncredit where a debt is payable in installments or a finance charge is imposed and includesany agreement in the form of a bailment of products or lease of products or real property ifthe bailee or lessee pays or agrees to pay compensation for use a sum substantiallyequivalent to or in excess of the aggregate value of the products or real property involvedand it is agreed that the bailee or lessee will become, or for no other or a nominalconsideration has the option to become, the owner of the products or real property upon fullcompliance with the terms of the agreement.

Answer 24

Credit sale.

Question 25

A transaction between a natural person and a creditor in which real or personal property, services or money acquired on credit and the person’s obligation is payable in installment.

Answer 25

Credit transaction.

Question 26

Any person engaged in the business of extending credit and shall include any person who as a regular business practice makes loans or sells or rents property or services on a time, credit or installment basis, either as principal or as agent who requires as an incident to the extension of credit, the payment of a finance charge.

Answer 26

Creditor.

Question 27

Means, with respect to a consumer credit transaction, the penalty charge payable by the consumer-debtor for failure to pay an amount or installment in full on the date the same becomes due and demandable, or on or before the period specified for the purpose in the consumer credit sale documents.

Answer 27

Default or delinquency charge.

Question 28

An instrument, apparatus, implement, machine, contrivance, implant, in vitro reagent, or other similar or related article, including any component, partor accessory which is:
(1) recognized in the official United States Pharmacopoeia-NationalFormulary (USP-NF) or any supplement to them,
(2) intended for use in the diagnosis ofdisease or other condition or in the cure, mitigation, treatment or prevention of disease, inman or other animals; or
(3) intended to affect the structure or any function of the body ofman or other animals, and which does not achieve any of its principal intended purposes through chemical action within or on the body of man or other animals and which is notdependent upon being metabolized for the achievement of any of its principal intended purposes.

Answer 28

Device.

Question 29

Any person to whom a consumer product is delivered or sold for purposes of distribution in commerce, except that such term does not include a manufacturer or retailer of such product.

Answer 29

Distributor.

Question 30

(1) articles recognized in the current official United States Pharmacopoeia-National Formulary, official Homeopathic Pharmacopoeia of the US, official National Drug Formulary, or any supplement to any of them;
and (2) articles intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in manor other animals;
(3) articles (other than food) intended to affect the structure or any function of the body of man or animals; and
(4) articles intended for use as a component of any articles specified in clauses (1), (2), or (3) but do not include devices or their components, parts or accessories.

Answer 30

Drugs

Question 31

The date stated on the label of food, drug, cosmetic, device or hazardous substance after which they are not expected to retain their claimed safety, efficacy and quality or potency and after which it is no longer permissible to sell them.

Answer 31

Expiry or expiration date.

Question 32

Any substance which has a flash point at or belownegative six and six-tenths degrees centigrade as determined by the Tagliabue Open CubTester;
and the term “combustible” shall apply to any substance which has a flash point ofabove twenty-six and six-tenths degrees to and including sixty-five and five-tenths degreescentigrade as determined by the Tagliabue Open Cub Tester:

Provided, That the flammabilityor combustibility of solids and of the contents of self-pressurized containers shall bedetermined through methods found by the implementing agency to be generally applicable to such materials or containers, respectively, and established by regulations issued by it.

Answer 32

Extremely flammable

Question 33

Any substance, whether processed, semi-processed or raw, intended for human consumption and includes chewing gum, drinks and beverages and any substance which has been used as an ingredient or a component in the manufacture, preparation or treatment of food.

Answer 33

Food.

Question 34

Any substance, the intended use of which results or may reasonably be expected to result, directly or indirectly, in its becoming a component orotherwise affecting the characteristics of any food (including any substance intended for usein producing, manufacturing, packing, processing, preparing, treating, packaging,transporting, or holding food; and including any source of radiation intended for any suchuse), if such substance is not generally recognized, among experts qualified as having been adequately shown through scientific procedures to be safe under the conditions of theintended use.

Answer 34

Food additive.

Question 35

The identification of drugs and medicines by their scientifically and internationally recognized active ingredients or by their official generic name as determined by the Bureau of Food and Drugs of the Department of Health.

Answer 35

Generic name.

Question 36

An expressed or implied assurance of the quality of the consumer products and services offered for sale or length of satisfactory use to be expected from a product or other similar specified assurances.+

Answer 36

Guarantee.

Question 37

(1) (i) Any substance or mixture of substanceswhich is toxic, corrosive, irritant, a strong sensitizer, flammable or combustible, or generatespressure through decomposition, heat or other means, if such substance or mixture orsubstances may cause substantial injury or substantial illness during or as a proximate resultof any customary or reasonably foreseeable ingestion by children
(ii) Any substance which the department finds to be under the categories enumeratedin clause (1) (i) of this paragraph;
(iii) Any radioactive substance, if, with respect to such substance as used in a particularclass of article or as packaged, the Department, upon approval of the Department determinesby regulation that the substance is sufficiently hazardous to require labeling in accordancewith this section in order to protect the public health;
(iv) Any toy or other articles intended for use by children which the director may, byregulation, determine the presence of an electrical, mechanical or thermal hazard.

(2) This term shall not apply to food, drugs, cosmetics, and devices nor to substancesintended for use as fuels when stored in containers and used in the heating, cooking orrefrigeration system of a house, but such term shall apply to any article which is not in itselfa pesticide but which is a hazardous substance, as construed in clause (a) of paragraph (1), by reason of bearing or containing such harmful substances described therein.

Answer 37

Hazardous substance.

Question 38

Any substance which has any of the following effects: (1)produces death within fourteen days to one-half or more than one-half of a group of ten ormore laboratory white rats each weighing between Two hundred and three hundred grams,at a single dose of fifty milligrams or less per kilogram of body weight, when orallyadministered; or
(2) produces death within fourteen days to one-half or more of a group often or more laboratory white rats each weighing between two hundred and three hundredgrams, when inhaled continuously for a period of one hour or less at an atmosphericconcentration of 200 ppm by volume or less of gas or vapor or twomilligrams per liter by volume or less of mist or dust, provided such concentration is likelyto be encountered by man when the substance is used in any reasonably foreseeable manner;or
(3) produces death within fourteen days to one-half or more of a group of ten or morerabbits, when tested in a dosage of two hundred milligrams or less per kilogram of bodyweight, or when administered through continuous contact with the bare skin for twenty-fourhours or less.

Answer 38

Highly toxic!

Question 39

Consumer sales or leases which are personally solicited by any person or organization by telephone, person-to-person contact or by written or printed communication other than general advertising or consummated at the buyer’s residence or a place of business, at the seller’s transient quarters, or away from a seller’s regular place of business.

Answer 39

Home soliciation sales

Question 40

The container or package which is immediately after or near the substance but does not include package liners.

Answer 40

Immediate container.

Question 41

A consumer product which presents an unreasonable risk of death, serious illness or severe personal injury.

Answer 41

Imminently hazardous product.

Question 42

Any substance not corrosive within the meaning of paragraph (t) of this Article which, on immediate, prolonged or repeated contact with normal living tissue will induce a local inflammatory reaction.

Answer 42

Irritant.

Question 43

Means the display of written, printed or graphic matter on any consumer product, its immediate container, tag, literature or other suitable material affixed thereto for the purpose of giving information as to the identity, components, ingredients, attributes, directions for use, specifications and such other information as may be required by law or regulations.

Answer 43

Label / labeling.

Question 44

Any and all operations involved in the production, including preparation, propagation, processing, formulating, filling, packing, repacking, altering, ornamenting, finishing or otherwise changing the container, wrapper or labeling of a consumer product in the furtherance of the distribution of the same from the original place of manufacture to the person who makes the final delivery or sale to the ultimate consumer.

Answer 44

Manufacture.

Question 45

Any person who manufactures, assembles or processes consumer products, except that if the goods are manufactured, assembled or processed for another person who attaches his own brand name to the consumer products, the latter shall be deemed the manufacturer. In case of imported products, the manufacturer’s representative or, in his absence, the importer, shall be deemed the manufacturer.

Answer 45

Manufacturer.

Question 46

Any means or methods used to convey advertising messages to the public such as television, radio, magazines, cinema, billboards, posters, streamers, hand bills, leaflets, mails and the like.

Answer 46

Mass media.

Question 47

A product which, because of the pattern of the defect, the number of defective products distributed in commerce and the severity of the risk or otherwise, creates a substantial risk of injury to the public.

Answer 47

Materially defective product.

Question 48

Any hazardous substance intended, orpackaged in a form suitable, for use in households, especially by children, the packaging or labeling of which is in violation of the special packaging regulation issued by the Departmentof Health under Article 91 or if such substance fails to bear a label which:
(1) states conspicuously:
(i) the name and the exact address of the manufacturer, packer, distributor or seller;
(ii) the common or usual name of the hazardous substance or of each component which contributes substantially to the harmfulness of the substance, unless the Department by regulation approved by the Department permits or requires the use of the recognized generic name;
(iii) the signal word “danger” on substances which are extremely flammable, corrosive, or highly toxic;
(iv) the signal word “warning” or “caution” on all other hazardous substances;
(v) a frank statement of the principal hazard or hazards involved, as “flammable”, “vapor harmful”, “causes burns”, “absorbed through skin”, or similar wording describing the action to be followed or avoided, except when modified by regulation by the Department pursuant to Section 46;
(vi) instructions, when necessary or appropriate, for first aid treatment;
(vii) the word “poison” for any hazardous substance which is defined as highly toxic;
(viii) instructions for handling and storage of packages which require special care in handling or storage; and
(ix) the statement “keep out of the reach of children”, or its practical equivalent, if the article is intended for use by children and is not a banned hazardous substance, with adequate directions for the protection of children from the hazard involved. The aforementioned signal words, affirmative statements, description of precautionary measures, necessary instructions or other words or statements may be in theEnglish language or its equivalent in Filipino; and

(2) on which any statement required under clause (1) of this paragraph are located prominently and in contrast by typography are located prominently and in contrast by typography, layout, with other printed matters on the label.

Answer 48

Mislabeled hazardous substance.

Question 49

(1) any drug the composition of which is such that said drug isnot generally recognized among experts qualified by scientific training and experience toevaluate the safety, efficacy, and quality of drugs as safe, efficacious and of good quality foruse under the conditions prescribed, recommended, or suggested in the labeling thereof; or
(2) any drug the composition of which is such that said drug, as a result of its previousinvestigations to determine its safety, efficacy and good quality for use under certainconditions, has become so recognized but which has not, otherwise than in suchinvestigations, been used to a material extent or for a material time under new conditions.

These shall also shall include drugs (a) containing a newly discovered active ingredient; (b) containing a new fixed combination of drugs, either by molecular or physical combination; (c) intended for new indications; (d) an additional new mode of administration; or (e) in an additional dosage or strength of the dosage form, which meets the conditions as defined under the new drug.

Answer 49

New Drugs.

The definition of “new drugs” covers to the extent applicable, “new devices”.

Question 50

A consumer product which incorporates a design, material or form of energy exchange which has not previously been used substantially in consumer products and as to which there exists a lack of adequate information to determine the quality and safety of such product if used by the consumers.

Answer 50

New Product.

Question 51

A consumer credit extended on an account pursuant to a plan under which:
1) the creditor may permit the person to make purchases or obtain loans, from time to time, directly from the creditor or indirectly by use of credit card, check or other device;
2) the person has the privilege of paying the balance; or
3) a finance charge may be computed by the creditor from time to time on an outstanding unpaid balance.

Answer 51

Open-end credit plan.

Question 52

Any container or wrapping in which any consumerproduct is enclosed for use in the delivery or display of that consumer product to retailpurchasers, but does not include:
1) shipping containers or wrappings used solely for the transportation of anyconsumer product in bulk or in big quantities by manufacturers, packers, or processors towholesale retail distributors thereof;
2) shipping containers or outer wrappings used by retailers to ship or deliver anyproduct to retail costumers if such containers and wrappings bear no printed matterpertaining any particular product;
3) The wrappers or containers of consumer products sold in small quantities by smallretail stores to the consumer which by tradition are wrapped with ordinary paper.

Answer 52

Package or packaging.

Question 53

Any individual, partnership, corporation or association, trust, government or governmental subdivision or any other legal entity.

Answer 53

Person.

Question 54

Any substance capable of destroying life or seriously endangering health when applied externally to the body or introduced internally in moderate doses.

Answer 54

Poisonous substance.

Question 55

The direct comparison in any advertisement of a seller’s current price for consumer products or services with any other price or statement of value for such property or services expressed in pesos, centavos, fractions or percentages.

Answer 55

Price comparison.

Question 56

Any device, written, printed, affixed or attached to a consumer product or displayed in a consumer repair or service establishment for the purpose of indicating the retail price per unit or service.

Answer 56

Price tag.

Question 57

Means that part of the label that is most likely to be displayed, presented, shown or examined under normal and customary conditions of display for retail or sale.

Answer 57

Principal display panel

Question 58

An owner of a brand or trademark on the label of consumer product other than a manufacturer of the product. A consumer product bears a private label if:
(1) the product or its container is labeled with a brand or trademark of a person other than its manufacturer; or;
(2) the brand or trademark of the manufacturer of such product does not appear on such label.

Answer 58

Private labeler.

Question 59

Any substance which emits ionizing radiation.

Answer 59

Radioactive substance.

Question 60

The sales device employed by the sellers wherein the buyer is induced to acquire goods or services by representing that after the acquisition of the goods or services, he will receive a rebate, commission or other benefit in return for the submission of names of potential customers or otherwise helping the seller enter into other sales, if the receipt of such benefit is contingent on an event occurring after the sale is made.

Answer 60

Referral selling.

Question 61

Any business establishment, engaged directly or indirectly, in the repair, service or maintenance of any consumer product.

Answer 61

Repair and service firm.

Question 62

A person engaged in the business of selling consumer products directly to consumers.

Answer 62

Retailer.

Question 63

An act made by a manufacturer or seller, or their respective representative or agent, to make available consumer products, services or credit to the end consumers under a consumer sale transaction. It shall not include sampling or any distribution not for sale.

Answer 63

Sale or distribution.

Question 64

Techniques intended for broad consumer participation which contain promises of gain such as prizes, in cash or in kind, as reward for the purchase of a product, security, service or winning in contest, game, tournament and other similar competitions which involve determination of winner/s and which utilize mass media or other widespread media of information.
It also means techniques purely intended to increase the sales, patronage and/or goodwill of a product.

Answer 64

Sales Promotion

Question 65

A person engaged in the business of selling consumer products directly to consumers. It shall include a supplier or distributor if:
(1) the seller is a subsidiary or affiliate of the supplier or distributor;
(2) the seller interchanges personnel or maintains common or overlapping officers or directors with the supplier or distributor; or
(3) the supplier or distributor provides or exercises supervision, direction or control over the selling practices of the seller.

Answer 65

Seller.

Question 66

This shall mean, with respect to repair and service firms, services supplied in connection with a contract for construction, maintenance, repair, processing, treatment or cleaning of goods or of fixtures on land, or distribution of goods, or transportation of goods.

Answer 66

Service.

Question 67

Services that are the subject of a consumer transaction, either together with, or separate from any kind of personal property, whether tangible or intangible.

Answer 67

Services.

Question 68

Packaging that is designed or constructed to be significantly difficult for children five years of age to open or to obtain a toxic or harmful amount of the substance contained therein within a reasonable time and not difficult for normal adults to use properly but does not mean packaging which all such children cannot open or obtain a toxic or harmful amount within a reasonable time.

Answer 68

Special packaging.

Question 69

A set of conditions to be fulfilled to ensure the quality and safety of a product;

Answer 69

Standard

Question 70

Any substance which will cause on normal living tissue, allergy or photodynamic quality of hypersensitivity which becomes evident on reapplication of the same substance, to be designated as such by the implementing agency. Before designating any substance as a strong sensitizer, the implementing agency, upon consideration of the frequency of occurrence and severity of the reaction, shall find that the substance has a significant capacity to cause hypersensitivity.

Answer 70

Strong sensitizer.

Question 71

A product which fails to comply with an applicable consumer product safety rule which creates a substantial risk of injury to the public.

Answer 71

Substandard product.

Question 72

A person, other than a consumer, who, in the course of his business, solicits, offers, advertises, or promotes the disposition or supply of a consumer product or who other than the consumer, engages in, enforces, or otherwise participates in a consumer transaction, whether or not any privity of contract actually exists between that person and the consumer, and includes the successor to, or assignee of, any right or obligation of the supplier.

Answer 72

Supplier.

Question 73

A machine or technician or any person who works or renders diagnosis or advice in connection with repair, service and maintenance of the consumer products in a repair and service firm.

Answer 73

Technical personnel of repair and service enterprise.

Question 74

Any substance other than a radioactive substance which can cause injury, illness or death to man through ingestion, inhalation or absorption through any body surface.

Answer 74

Toxic substance.

Question 75

A word or words, name, title, symbol, emblem, sign or device or any combination thereof used as an advertisement, sign, label, poster or otherwise for the purpose of enabling the public to distinguish the business of the person who owns and uses said trade name or trademark.

Answer 75

Trade name or Trademark.