A report by Raymund Sanchez

Definition Purpose Legal Basis

Scope of the consumer protection act Consumer rights Agencies assigned Power of the agencies

Actual cases Open Forum

Consumer: refers to any individuals or households that use goods and services generated within the economy

Consumer protection: a concept that are designed to ensure fair competition and the free flow of truthful information in the marketplace Government - enacting & enforcement of

laws Non government – consumer activism

Consumer protection laws: laws designed to prevent businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors and provide additional protection for the weak and those unable to take care of themselves

Deceptive acts & practices: an act by a producer, manufacturer, supplier or seller, which occurred before, during or after the transaction, through concealment, false representation of fraudulent manipulation, which induces a consumer to enter into a sales or lease transaction of any consumer product or service

Unfair or Unconscionable Sales Acts or Practices: an act by the producer, manufacturer, distributor, supplier or seller, which occurred before, during or after the transaction, by taking advantage of the consumer's physical or mental infirmity, ignorance, illiteracy, lack of time or the general conditions of the environment or surroundings, induces the consumer to enter into a sales or lease transaction grossly inimical to the interests of the consumer or grossly one-sided in favor of the producer, manufacturer, distributor, supplier or seller

To protect the consumer from abuse

To provide a venue for grievance /redress

To ensure a better quality of living by improving the quality of consumer products & services

REPUBLIC ACT NO. 7394: It is the policy of the State to protect the interests of the consumer, promote his general welfare and to establish standards of conduct for business and industry. Towards this end, the State shall implement measures to achieve the following objectives:

protection against hazards to health and safety;

protection against deceptive, unfair and unconscionable sales acts and practices

provision of information and education to facilitate sound choice and the proper exercise of rights by the consumer

provision of adequate rights and means of redress

involvement of consumer representatives in the formulation of social and economic policies

Right to basic needs Right to safety Right to information Right to choice Right to

representation Right to redress Right to consumer

education Right to a healthy

environment

Right to basic needs: which guarantee survival, adequate food, clothing, shelter, health care, education and sanitation

Right to safety: to be protected against the marketing of goods or the provision of services that are hazardous to health and life.

Right to information: to be protected against dishonest or misleading advertising or labeling and the right to be given the facts and information needed to make an informed choice.

Right to choice: to choose products at competitive prices with an assurance of satisfactory quality.

Right to representation: to express consumer interests in the making and execution of government policies.

Right to redress: to be compensated for misrepresentation, shoddy goods or unsatisfactory services.

Right to consumer education: to acquire the knowledge and skills necessary to be an informed customer

Right to health environment: to live and work in an environment which is neither threatening nor dangerous and which permits a life of dignity and well-being

Department of Health: food, drugs, cosmetics, devices and substances

Department of Agriculture: products related to agriculture

Department of Trade & Industry: other consumer products not specified above

requirements to performance, composition, contents, design, construction, finish, packaging of a consumer product

requirements as to kind, class, grade, dimensions, weights, material

requirements as to the methods of sampling, tests and codes used to check the quality of the products

requirements as to precautions in storage, transporting and packaging

requirements that a consumer product be marked with or accompanied by clear and adequate safety warnings or instructions, or requirements respecting the form of warnings or instructions

Art. 8. Publication of Consumer Product Standards - The concerned departments shall, upon promulgation of the above standards, publish or cause the publication of the same in two (2) newspapers of general circulation at least once a week for a period of not less than one (1) month

Art. 10. Injurious, Dangerous and Unsafe Products - Whenever the departments find, by their own initiative or by petition of a consumer, that a consumer product is found to be injurious, unsafe or dangerous, it shall, after due notice and hearing, make the appropriate order for its recall, prohibition or seizure from public sale or distribution

Art. 13. New Products - The concerned department shall take measures to make a list of new consumer products and to cause the publication by the respective manufacturers or importers of such products a list thereof together with the descriptions in a newspaper of general circulation

Art. 14. Certification of Conformity to Consumer Product Standards - The concerned department shall aim at having consumer product standards established for every consumer product so that consumer products shall be distributed in commerce only after inspection and certification of its quality and safety standards by the department

Art. 15. Imported Products – (a) Any consumer product offered for

importation into the customs of the Philippine territory shall be refused admission if such product: (1) fails to comply with an applicable consumer

product quality and safety standard or rule; (2) is or has been determined to be injurious,

unsafe and dangerous; (3) is substandard; or (4) has material defect.

a consumer product or service can be supplied in a quantity greater than the supplier intends

a service, or repair of a consumer product is needed when in fact it is not

a specific price advantage of a consumer product exists when in fact it does not

the sales act or practice involves or does not involve a warranty, a disclaimer of warranties, particular warranty terms or other rights, remedies or obligations if the indication is false

the seller or supplier has a sponsorship, approval, or affiliation he does not have

a consumer product or service has the sponsorship, approval, performance, characteristics, ingredients, accessories, uses, or benefits it does not have

a consumer product or service is of a particular standard, quality, grade, style, or model when in fact it is not

a consumer product is new, original or unused, when in fact, it is in a deteriorated, altered, reconditioned, reclaimed or second-hand state

a consumer product or service is available to the consumer for a reason that is different from the fact

a consumer product or service has been supplied in accordance with the previous representation when in fact it is not

that the producer, manufacturer, distributor, supplier or seller took advantage of the inability of the consumer to reasonably protect his interest because of his inability to understand the language of an agreement, or similar factors

that when the consumer transaction was entered into, the price grossly exceeded the price at which similar products or services were readily obtainable in similar transaction by like consumers

that when the consumer transaction was entered into, the consumer was unable to receive a substantial benefit from the subject of the transaction

that when the consumer was entered into, the seller or supplier was aware that there was no reasonable probability or payment of the obligation in full by the consumer

that the transaction that the seller or supplier induced the consumer to enter into was excessively one-sided in favor of the seller or supplier

Chinese milk scandal was a food safety incident in the People's Republic of China involving milk and infant formula, and other food materials and components, adulterated with melamine

Toys made in China recalled for containing lead which could cause brain damage

A Filipino-American nurse has filed a complaint against the Belo Medical Group over an alleged botched skin tightening procedure done on her

In December 2006, a consumer complained to the U.S. Consumer Product Safety Commission that magnets could come loose from Mega Brands Magna-Man action figures. When the tiny, powerful magnets come loose and are swallowed, they can connect inside a child and rip through intestines.

The 1982 Chicago Tylenol murders occurred when seven people died after taking pain-relief capsules that had been poisoned

April 2007: Nestle voluntarily recalled its "Caramel Kit Kat Chunky" bars and "KitKat Cookie Dough Chocolate" bars due to some bits of hard plastic being found in the chocolate.

Ireland and United Kingdom (24 June 2006): Cadbury-Schweppes announced that there has been a salmonella scare in their products, causing millions of chocolate bars from stores across Ireland and the UK to be recalled.

WASHINGTON, DC, Aug. 9, 2000 -- Saying the safety of consumers is the company’s first concern, today Bridgestone/Firestone, Inc., announced a voluntary recall of all Firestone Radial ATX and Radial ATX II tires in size P235/75R15 produced in North America, including Mexico, & Wilderness AT tires in size P235/75R15 produced at the Decatur, Illinois plant. When under inflated, all radial tires generate excessive heat," Crigger said. "Driving on tires in this condition can lead to tread separation.

X = (number of vehicles in the field) x (probable rate of failure) x (average out-of-court settlement)

If X < cost of a recall, do not recall

Questions?

http://en.wikipedia.org/wiki/Consumer_protection

http://www.dti.gov.ph http://www.chanrobles.com/

republicactno7394.htm http://usgovinfo.about.com/

blfirestone.htm