CONSUMER ACT

Article 4.

Definition of terms.

Amount financed

In a consumer credit sale constitutes the cash price plus non finance charges less the amount of any down payment 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.

Cash price of delivered price

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 creditors place of business.

Generic name

It is the identification of drugs and medicines by their scientifically and internationally recognized active ingredients

Article 2. Declaration of Basic Policy.

It is the policy of the state to protect the interest of the consumer, promote his general welfare and to establish standards of conduct for the business and industry.

Consumer transaction

Means (1) a sale, lease, assignment, award by change, 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.

New drugs

Means (1) any drug the composition of which is such that said drug is not generally recognized among experts

Hazardous substance

Means (1) any substance or mixture of substances which is toxic, corrosive, irritant, a strong sensitized, flammable, or combustible or generates pressure through decomposition, heat or other means, if such substance or mixture of substances may cause substantial injury

Banned hazardous substance

Means (1) any toy or other articles intended for use by children, which are hazardous per se, or which near or contain substances harmful to human beings.

Cosmetics

Means (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, (2) article except that such term shall not include soap.

Drugs

Means (1) articles recognized in the current official United Staes Pharmacopoeia-National Formulary

Consumer product safety rule

Means a consumer product safety standard described in article 78 or a rule under this chapter declaring a consumer product banned hazardous product.

New product

Means a consumer product which incorporate 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.

Imminently hazardous product

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

Closing out sale

Means 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.

Consumer loan

Means a loan made by the lender to a person which is payable in installment for which a finance charge is or may be imposed.

Consumer

Means a natural person who is a purchaser, lessee, recipient or prospective purchase, lease or recipient of consumer products, services or credit.

Retailer

Means a person engaged in the business of selling consumer products directly to consumers,

Seller

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

Supplier

Means a person, other than a consumer, who in the course of his business, promotes the disposition of supply of a consumer product.

Materially defective product

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

Agricultural purpose

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

Batch

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

Credit sale

Means a sale of products, services, or an interest in land to a person on credit where a debt is payable in installments or a finance charge is imposed and include any agreement in the form of a bailment or products of lease of products or real property if the Bailee or lessee pays or agrees to pay compensation for use a sim substantially equivalent to or in excess of the aggregate value.

Advertising agency or agent

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

Standard

Means a set of conditions to b fulfilled to ensure the quality and safety of a product.

Open-end-credit plan

Means a summer credit extended on an account pursuant to a plan

Credit transaction

Means 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.

Trade name or trademark

Means a word or words, name, title, symbol, emblem used as an advertisement to distinguish the business of the person.

Guarantee

Means 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.

Device

Means an instrument apparatus, implement, machine, contrivance, implant, in vitro reagent, or other similar or related article including component part or accessory.

Private labeler

Means an owner of a brand of trademark on the label of consumer product other than a manufacturer of a product.

Repair and service firm

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

Credit card

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

Counterfeit product

Means any consumer product which or the container or labeling of which, without authorization, bears the trademark, trade name or other identifying mark of a company.

Package or packaging

Means any container or wrapping in which any consumer product is enclosed for use in delivery or display of that consumer product to retail purchasers

Consumer credit

Means 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 thereof is payable at some future time, whether in full or installments.

Price tag

Means any device, written, printed, affixed or attached to a consumer product or displayed in a consumer repair or service.

Mislabeled hazardous product

Means any hazardous substance interest or packaged in a form suitable for use in households, the packaging or labeling of which is in violation of the special packaging regulation.

Person

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

Business name, firm name or style

Means any name or designation other name the true name of a person, partnership, corporation, or association which is used or signed in connection with his/it's business

Creditor

Means any person engaged in the business of extending credit

Distributor

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

Manufacturer

Means any person who manufactures, assembles, or processes consumer products.

Poisonous substance

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

Irritant

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

Toxic substance

Means 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.

Radioactive substance

Means any substance which emits ionizing radiation

Extremely flammable

Means any substance which has a flash point at or below negative six and six-tenths degrees centigrade as determined by the Tagliabue Open Club Tester; and the term "combustible" shall apply to any substance which has flash point above twenty six and sixth tenths.

Highly toxic

Means any substance which has the following effects (1) produces death within 14 day's to one half or more than one half of a group of ten or more laboratory white rats weighing between two hundred and three hundred grams.

Corrosive

Means any substance which in contact with living tissue will cause destruction of tissue by chemical action.

Food additives

Means any substance, the intended use of which results or may reasonably be expected to result directly or indirectly, in its becoming a component or other wise affecting the characteristic of any food.

Food

Means any substance, whether processed, semi-processed or raw, intended for human consumption includes chewing gum.

Manufacture

Means ay and all operations involved in the production of a product.

Home solicitation sale

Means 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 buyers residence.

Consumer products and services

Means 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.

Special packaging

Means packaging that is designed or constructed to be significantly difficult for children under five years of age to open or to obtain a toxic or harmful amount of difficult for normal adults to use properly.

Substandard product

Means product when fails to comply with an applicable risk of injury to the public.

Chain distribution plans or pyramid sales schemes

Means sales devices whereby a person, upon condition that he makes an investment, is granted by the manufacturer or his representative a right to recruit for profit one or more additional persons who will also be granted such a right.

Services

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

Sales promotion

Means techniques intended for broad consumer participation

Advertising

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.

Advertiser

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

Immediate container

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

Expiry or expiration date

Means the date stated on the label of food, drug, cosmetic, device or hazardous substance efficacy and quality or potency and after which it is no longer permissible to sell them.

Label, labeling

Means the display of written, printed or graphic matter on any consumer product, it's immediate container, tag, literature or other suitable material affixed thereto for the purpose of giving information

Principal display panel

Means the 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.

Advertisement

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

Commerce

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

Referral selling

Means the sales devices employed by the sellers wherein the buyer is inducted to acquire goods and services by representing that after the acquisition of the goods or services.

Default or delinquency charge

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

Mass media

Refers to 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.

Technical personnel of repair and service enterprise

Shall mean a mechanic or technician or any person who works or renders diagnosis or advice in connection with repair

Sale or distribution

Shall mean an act 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.

Service

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

Article 3. Construction.

The best interest of the consumer shall be considered in the interpretation and implementation of the provisions of this act, including its implementing rules and regulation.

Article 1. short title

This act shall be known as the Consumer act of the Philippines.

Price comparison

Wants the direct comparison in any advertisement of a sellers current price for consumer product or services with any other price or statement of value of such property or services expressed in pesos, centavos, fractions, or percentages.

Republic Act No. 7394

What was the republic Act for the Consumer Act?

July 22, 1991

When was the Consumer Act released?