• What is R.A. 7394?
• State briefly the Declaration of Basic Policy.
• State briefly the Declaration of Basic Policy.
• Which government agencies implement the Consumer Act and what are their areas of concern?
• When is the Consumer Act applicable?
• What is consumer product or service?
• What can a consumer do if he has a complaint?
• What is the period for filing consumer complaints?
• Where can a consumer complaint be filed?

• What are the remedies available to consumers?
• What are the advantages of filing complaint before the implementing agencies (administrative proceedings)?
• How are consumer complaints resolved?
• What administrative penalties can be imposed upon establishments found to have violated any of the laws covered by the Consumer Act?
• What body coordinates the implementation of the Consumer Act?
• What is the Compositon of the NCAC?
• What are the powers and functions of the NCAC?
• Who heads the NCAC?

The objectives of the Act are:

• Protection of consumers against hazards to health and safety;
• Protection of consumers 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 representative in the formulation of social and economic policies.

• Department of Trade and Industry (DTI)
• Consumer Product Quality and Safety
• Deceptive, unfair and unconscionable sales acts and practices
• Weights and measures (metrication)
• Consumer Products and Service Warranties
• Price Tag
• Labeling and Packaging
• Liability for Products and Services
• Service and repair shops
• Advertising and sales promotion
• Department of Agriculture (DA)
• Agricultural Products

  • Quality and Safety
  • Labelling and Packaging

• Department of Education, Culture and Sports (DECS)

  • Consumer education and information

• Department of Health (DOH)
• Food, drugs, cosmetics and devices and hazardous substances

  • Quality and safety
  • Labelling and Packaging
  • Advertising and Sales Promotion
  • Price Tag

• Bangko Sentral ng Pilipinas (BSP)

  • Consumer credit transactions extended by banks and other financial intermediaries

• Securities and Exchange Commission (SEC)

  • Credit facilities extended to consumers by financing companies

• the COMPLAINANT is a natural person;
• the SUBJECT of the violation is a consumer product or service; and
• the NATURE of the complaint is regarding any of the aforementioned concern

The consumer must do the following:

• Identify the problem and what you believe would be a fair settlement. Do you want your money back (Refund)? Would you like the product repaired (Repair)? Will exchange do (Replace)?
• Gather documentation regarding your complaint eg. sales receipts, repair orders, warranties, cancelled checks, or contract which will support the complaint and help the company solve your problem.
• Go back to where you made the purchase. Contact the person who sold you the item or performed the service. Calmly and accurately explain the problem and what action you would like taken. If that person is not helpful, ask for the supervisor or manager and repeat your complaint. A large percentage of consumer problems are resolved at this level.
• Write formal letter. If you are not satisfied with the response, write a formal letter of complaint to the consumer protection agency concerned. State your name and address; the name and address of the establishment against whom you are complaining; the circumstances regarding the complaint including names, dates, places, etc. Enclose supporting documents such as official receipts, deed of sale and the like and you should be prepared to make an appearance when called, especially during the mediation conference.

• replacement or repair of product or services
• refund of payment made
• restitution or rescission of contract
• reimbursement to complainant of amount spent in pursuing the complaint

• civil action
• award of damages
• replacement or repair of product or services
• refund of payment made
• restitution or rescission of contract
• reimbursement to complainant of amount spent in pursuing the complaint
  
• criminal action - defendant, if found guilty by the court can be sentenced to imprisonment or payment of fine or both, at the discretion of the court.

• mediation/arbitration is more economical and time-saving
• complainant need not undergo the rigors and expense of a court case

• The implementing agency where the complaint is filed, after jursidiction is determined, will call the parties for mediation conference and find ways for amicable settlement.
• If no amicable settlement is arrived at, the complaint will be scheduled for preliminary conference for the parties to enter into stipulation of facts or arrive at simplification of issues.
• Formal hearing will be conducted by the Arbitration Officer and decision will be rendered.
• Decision of the Arbitration Officer is appealable to the Secretary of the concerned Department within 15 days from receipt of the decision.
• Decision of the Department Secretary is appealable within 15 days from receipt of the decision to the Intermediate Appellate Court or the Supreme Court on the following grounds:
• There is grave abuse of discretion.
• The decision rendered was in excess of jurisdiction or authority of the Arbitration Officer
• The decision is not supported by evidence or there is serious error in findings of facts.

What administrative penalties can be imposed upon establishments found to have violated any of the laws covered by the Consumer Act?

Administrative penalties that can be imposed are:

• The issuance of a cease and desist order, provided, however, that such order shall specify the acts that respondent shall cease and desist from and shall require him to submit a report of compliance therewith within a reasonable time;
• The acceptance of a voluntary assurance of compliance or discontinuance from the respondent which may include any or all of the following terms and conditions:
• an assurance to comply with the provisions of this Act and its implementing rules and regulations;
• an assurance to refrain from engaging in unlawful acts and practices or unethical trade practices subject of the formal investigation;
• an assurance to comply with the terms and conditions specified in the consumer transaction subject of the complaint;
• an assurance to recall, replace, repair or refund the money value of defective products distributed in commerce;
• an assurance to reimburse the complaint out of any money or property in connection with the complaint, if any, and to file a bond to guarantee compliance therewith.
• Restitution or rescission of the contract without damages;
• Condemnation and seizure of the consumer product found to be hazardous to health and safety, unless the respondent files a bond to answer for any damages or injury that may arise from the continued use of the product;
• The impositon of administrative fines in such amount as deemed reasonable by the Secretary, which shall in no case be less than Five Hundred Pesos (P500.00) nor more than Three Hundred Thousand Pesos (P300,000.00) depending on the gravity of the offense, and an additional fine of not more than One Thousand Pesos (P1,000.00) for each day of continuing violation.

What body coordinates the implementation of the Consumer Act?

• Department of Trade and Industry
• Department of Education, Culture and Sports
• Department of Health
• Department of Agriculture
• 4 consumer organizations of nationwide base
• 2 business/industry sectors

NCAC performs the following functions:

• Rationalize and coordinate the functions of consumer protection agencies
• Monitor and evaluate implementation of consumer programs and projects and to take appropriate steps to comply with the established priorities, standards and guidelines
• Undertake a continuing program on consumer education and information campaign
• Submit to Congress and the Office of the President, a full report on the progress of the implementation of consumer programs