RFBT 06 03c Special Laws For Consumer Protection
RFBT 06 03c Special Laws For Consumer Protection
RFBT 06 03c Special Laws For Consumer Protection
San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
b. Implementing Agencies
i. the Department of Health (DOH) with respect to food, drugs, cosmetics, devices
and substances;
ii. the Department of Agriculture (DA) with respect to products related to
agriculture, and;
iii. the Department of Trade and Industry (DTI) with respect to other consumer
products not specified above.
1|P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
e. Effectivity of Rules
i. Each consumer product standard or safety rule shall specify the date such rule is
to take effect, which shall not exceed ninety (90) days from the date
promulgated unless the concerned department funds, for good cause shown,
that a later effective date is in the public interest and publishes its reasons for
such finding. After which, it shall no longer be legal to, or cause to, sell or
distribute the consumer product not complying with the standards or rules.
ii. The department may, by regulation, prohibit a manufacturer from stockpiling
consumer products so as to prevent such manufacturer from circumventing the
purposes of this paragraph. The term "stockpiling" means manufacturing or
importing a product between the date of promulgation of its consumer product
safety rule and its effective date, at a rate which is significantly greater than the
rate at which such product was produced or imported during a base period as
prescribed in the regulation under this paragraph, ending before the date of
promulgation of consumer product safety rule.
2|P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
i. New Products
i. 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.
3|P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
iii. If it appears that any consumer product which may not be admitted pursuant to
paragraph (a) of this Article can be so modified that it can already be accepted,
the concerned department may defer final examination as to the admission of
such product for a period not exceeding ten (10) days, and in accordance with
such regulations as the department and the Commissioner of Customs shall
jointly promulgate, such product may be released from customs custody under
bond for the purpose of permitting the owner or consignee an opportunity to so
modify such product.
iv. All modifications taken by an owner or consignee for the purpose of securing
admission of an imported consumer product under paragraph (c) shall be subject
to the supervision of the concerned department. If the product cannot be so
modified, or if the owner or consignee is not proceeding to satisfactorily modify
such product, it shall be refused admission and the department may direct
redelivery of the product into customs custody, and to seize the product if not so
redelivered.
v. Imported consumer products not admitted must be exported, except that upon
application, the Commissioner of Customs may permit the destruction of the
product if, within a reasonable time, the owner or consignee thereof fails to
export the same.
vi. All expenses in connection with the destruction provided for in this Article, and all
expenses in connection with the storage, cartage or labor with respect to any
consumer product refused admission under this Article, shall be paid by the
owner or consignee and, in default of such payment, shall constitute a lien
against any future importation made by such owner or consignee.
4|P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
II. Protection against deceptive, unfair and unconscionable sales acts or practices
a. Policy of State
i. The State shall promote and encourage fair, honest and equitable relations
among parties in consumer transactions and protect the consumer against
deceptive, unfair and unconscionable sales acts or practices.
b. Implementing Agency
i. The Department of Trade and Industry (DTI), hereby referred to as the
Department, shall enforce the provisions of this Chapter.
c. Prohibition Against Deceptive Sales Acts or Practices
i. A deceptive act or practice by a seller or supplier in connection with a consumer
transaction violates this Act whether it occurs before, during or after the
transaction. An act or practice shall be deemed deceptive whenever the
producer, manufacturer, supplier or seller, through concealment, false
representation of fraudulent manipulation, induces a consumer to enter into a
sales or lease transaction of any consumer product or service.
d. Examples of acts or practices of a seller or supplier which is deceptive
i. a consumer product or service has the sponsorship, approval, performance,
characteristics, ingredients, accessories, uses, or benefits it does not have;
ii. a consumer product or service is of a particular standard, quality, grade, style, or
model when in fact it is not;
iii. a consumer product is new, original or unused, when in fact, it is in a
deteriorated, altered, reconditioned, reclaimed or second-hand state;
iv. a consumer product or service is available to the consumer for a reason that is
different from the fact;
v. a consumer product or service has been supplied in accordance with the previous
representation when in fact it is not;
vi. a consumer product or service can be supplied in a quantity greater than the
supplier intends;
vii. a service, or repair of a consumer product is needed when in fact it is not;
viii. a specific price advantage of a consumer product exists when in fact it does not;
ix. 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; and
x. the seller or supplier has a sponsorship, approval, or affiliation he does not
have.
e. Unfair or Unconscionable Sales Act or Practice
i. An unfair or unconscionable sales act or practice by a seller or supplier in
connection with a consumer transaction violates this Chapter whether it occurs
before, during or after the consumer transaction. An act or practice shall be
deemed unfair or unconscionable whenever the producer, manufacturer,
5|P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
6|P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
7|P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
8|P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
damages, or reject the goods, cancel and contract and recover from the
seller so much of the purchase price as has been paid, including
damages.
d. Warranties in Supply of Services
i. In every contract for the supply of services to a consumer made by a seller in the
course of a business, there is an implied warranty that the service will be
rendered with due care and skill and that any material supplied in connection
with such services will be reasonably fit for the purpose for which it is supplied.
ii. Where a seller supplies consumer services in the course of a business and the
consumer, expressly or by implication, makes known to the seller the particular
purpose for which the services are required, there is an implied warranty that the
services supplied under the contract and any material supplied in connection
therewith will be reasonably fit for that purpose or are of such a nature or quality
that they might reasonably be expected to achieve that result, unless the
circumstances show that the consumer does not rely or that it is unreasonable
for him to rely, on the seller's skill or judgment.
e. Inapplicability of law on warranty on Professional Services
i. The provision of this Act on warranty shall not apply to professional services of
certified public accountants, architects, engineers, lawyers, veterinarians,
optometrists, pharmacists, nurses, nutritionists, dietitians, physical therapists,
salesmen, medical and dental practitioners and other professionals engaged in
their respective professional endeavors.
f. Guaranty of Service Firms
i. Service firms shall guarantee workmanship and replacement of spare parts for a
period not less than ninety (90) days which shall be indicated in the pertinent
invoices.
g. Prohibited acts under Consumer Product and Service Warranties
i. refusal without any valid legal cause by the total manufacturer or any person
obligated under the warranty or guarantee to honor a warranty or guarantee
issued;
ii. unreasonable delay by the local manufacturer or any person obligated under the
warranty or guarantee in honoring the warranty;
iii. removal by any person of a product's warranty card for the purpose of evading
said warranty obligation;
iv. any false representation in an advertisement as to the existence of a warranty
or guarantee.
9|P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
10 | P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
price lower than the ordinary and customary retail price or that a price
advantage is accorded to purchases thereof by reason of the size of the
package or the quantity of its contents;
3. prevent the nonfunctional slack-fill of packages containing consumer
products.
ii. For purposes of paragraph (c) of this Article, a package shall be deemed to be
nonfunctionally slack-filled if it is filled to substantially less than its capacity for
reasons other than (1) protection of the contents of such package, (2) the
requirements of machines used for enclosing the contents in such package, or
(3) inherent characteristics of package materials or construction being used.
f. Special Packaging of Consumer Products for the Protection of Children.
i. The concerned department may establish standards for the special packaging of
any consumer product if it finds that:
1. the degree or nature of the hazard to children in the availability of such
product, by reason of its packaging, is such that special packaging is
required to protect children from serious personal injury or serious illness
resulting from handling and use of such product; and
2. the special packaging to be required by such standard is technically
feasible, practicable and appropriate for such product. In establishing a
standard under this Article, the concerned department shall consider:
a. the reasonableness of such standard;
b. available scientific, medical and engineering data concerning
special packaging and concerning accidental, ingestions, illnesses
and injuries caused by consumer product;
c. the manufacturing practices of industries affected by this Article;
and
d. the nature and use of consumer products.
11 | P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
ix. if it is not subject to the provisions of paragraph (g) of this Article unless its label
bears:
1. 1) the common or usual name of the food, if there be any; and
2. 2) in case it is manufactured or processed from two or more ingredients,
the common or usual name of such ingredient; except the spices,
flavorings and colorings other than those sold as such, may be
designated as spices, flavorings and colorings without naming each:
Provided, That to the extent that compliance with the requirement of
clause (2) of this paragraph is impracticable or results in deception or
unfair competition, exemptions shall be established by regulations
promulgated by the concerned department of health;
x. if it purports to be or is represented for special dietary uses, unless its label
bears such information concerning its vitamin or mineral or other dietary
properties as the concerned department determines to be, or by regulations
prescribed as necessary in order fully to inform purchasers as its value for such
uses;
xi. if it bears or contains any artificial flavoring, artificial coloring, or chemical
preservative, unless it bears labeling, stating that fact: Provided, That to the
extent that compliance with the requirements of this paragraph is impracticable,
exemptions shall be established by regulations promulgated by the concerned
department. The provisions of this paragraph or paragraphs (g) and (i) with
respect to the artificial coloring shall not apply in the case of butter, cheese or
ice cream.
i. Labeling of Drugs
i. The Generics Act shall apply in the labeling of drugs.
j. Additional Labeling Requirements for Cosmetics.
i. The following additional requirements may be required for cosmetics:
1. expiry or expiration date;
2. whether or not it may be an irritant;
3. precautions or contra-indications; and
4. such other labeling requirements as the concerned department may
deem necessary and reasonable
12 | P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
13 | P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
14 | P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
15 | P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
1. All cigarettes for sale or distribution within the country shall be contained
in a package which shall bear the following statement or its equivalent in
Filipino: "Warning" Cigarette Smoking is Dangerous to Your Health".
Such statement shall be located in conspicuous place on every cigarette
package and shall appear in conspicuous and legible type in contrast by
typography, layout or color with other printed matter on the package.
Any advertisement of cigarette shall contain the name warning as
indicated in the label.
Philippine Lemon Law (Republic Act No. 10642: An Act Strengthening Consumer Protection
In The Purchase Of Brand New Motor Vehicles)
I. State Policy
a. It is hereby declared the policy of the State to promote full protection to the rights of
consumers in the sale of motor vehicles against business and trade practices which are
deceptive, unfair or otherwise inimical to consumers and the public interest. The State
recognizes that a motor vehicle is a major consumer purchase or investment. Hence, the
rights of consumers should be clearly defined, including the means for redress for
violations thereof.
16 | P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
V. Repair Attempts
a. At any time within the Lemon Law rights period, and after at least four (4) separate
repair attempts by the same manufacturer, distributor, authorized dealer or retailer for
the same complaint, and the nonconformity issue remains unresolved, the consumer may
invoke his or her rights under this Act. The repair may include replacement of parts
components, or assemblies.
17 | P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
from the date of notice of release of the motor vehicle to the consumer following this
repair attempt within the Lemon Law rights period, the repair is deemedsuccessful:
Provided, finally, That, in the event that the nonconformity issue still exists or persists
after the thirty (30)-day period but still within the Lemon Law rights period, the
consumer may be allowed to avail of the same remedies under Sections 5 and 6 hereof.
d. To compensate for the non-usage of the vehicle while under repair and during the period
of availment of the Lemon Law rights, the consumer shall be provided a reasonable daily
transportation allowance, an amount which covers the transportation of the consumer
from his or her residence to his or her regular workplace or destination and vice versa,
equivalent to air-conditioned taxi fare, as evidenced by official receipt, or in such amount
to be agreed upon by the parties, or a service vehicle at the option of the manufacturer,
distributor, authorized dealer or retailer. Any disagreement on this matter shall be
resolved by the DTI.
e. Nothing herein shall be construed to limit or impair the rights and remedies of a
consumer under any other law.
18 | P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
I. Disclosure on Resale
i. Should the returned motor vehicle be made available for resale, the
manufacturer, distributor, authorized dealer or retailer shall, prior to sale or
transfer, disclose in writing to the next purchaser of the same vehicle the
following information:
1. The motor vehicle was returned to the manufacturer, distributor,
authorized dealer or retailer;
2. The nature of the nonconformity which caused the return; and
19 | P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
3. The condition of the motor vehicle at the time of the transfer to the
manufacturer, distributor, authorized dealer or retailer.
ii. The responsibility of the manufacturer, distributor, authorized dealer or retailer
under this section shall cease upon the sale of the affected motor vehicle to the
first purchaser.
iii. Penalty for violation of requirements on disclosure on resale
1. The manufacturer, distributor, authorized dealer or retailer adjudged to
have violated the provisions requiring disclosure as mentioned in the
preceding section shall be liable to pay a minimum amount of One
hundred thousand pesos (P100,000.00) as damages to the aggrieved
party without prejudice to any civil or criminal liability they and/or the
responsible officer may incur under existing laws.
MACEDA Law (Republic Act No. 6552: Realty Installment Buyer Act)
IV. Buyer’s right to Grace Period in case of default in payment of installment (Section 3
and Section 4)
a. Right to Grace Period without additional interest
i. Buyer who has paid less than two years of instalments
1. The seller shall give the buyer a grace period of not less than sixty (60)
days from the date the installment became due.
ii. Buyer who has paid at least two years of installment
1. The buyer earned a total grace period of one month grace period for
every year of installments payments made.
Note: The right to grace period without additional interest shall be exercised by
the buyer only once in every five years of the life of the contract and its
extensions, if any.
b. Right to additional grace period with additional interest before the cancellation or
rescission of the sale
i. If the buyer fails to pay the installments due at the expiration of the grace
period, the seller may cancel the contract after thirty days from receipt by the
buyer of the notice of cancellation or the demand for rescission of the contract
by a notarial act.
V. Buyer’s right to Cash Surrender Value in case the seller elects to cancel the sale
(Section 3)
a. Buyer who has paid less than two years of instalments
i. The buyer is not entitled to any cash surrender value.
b. Buyer who has paid at least two to five years of installments
i. 2-5 years of instalments = 50% of total payments made
ii. 6 years of instalments = 55% of total payments made
iii. 7 years of instalments = 60% of total payments made
iv. 8 years of instalments = 65% of total payments made
v. 9 years of instalments = 70 of total payments made
vi. 10 years of instalments = 75% of total payments made
vii. 11 years of instalments = 80% of total payments made
viii. 12 years of instalments = 85% of total payments made
ix. 13 years or more of instalments = maximum of 90% of total payments made
20 | P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
VI. Moment of Actual Cancellation of Sale in case of default by buyer (Section 3 and 4)
a. Buyer who has paid less than two years of instalments
i. Upon lapse of thirty (30) days from receipt by the buyer of the notice of
cancellation or the demand for rescission of the contract by a notarial act;
b. Buyer who has paid at least two years of instalments
i. Upon lapse of thirty (30) days from receipt by the buyer of the notice of
cancellation or the demand for rescission of the contract by a notarial act; and
ii. Upon full payment of the cash surrender value to the buyer.
VII. Buyer’s right to sell or assign his right to grace period and right to cash surrender
value (Section 5)
a. The buyer shall have the right to sell his rights or assign the same to another person or
to reinstate the contract by updating the account during the grace period and before
actual cancellation of the contract. The deed of sale or assignment shall be done by
notarial act.
VIII. Buyer’s right to pay in advance any installment or to fully pay the unpaid balance
(Section 6)
a. The buyer shall have the right to pay in advance any installment or the full unpaid
balance of the purchase price any time without interest and to have such full payment of
the purchase price annotated in the certificate of title covering the property.
I. Rationale of PD 957
a. WHEREAS, it is the policy of the State to afford its inhabitants the requirements of decent
human settlement and to provide them with ample opportunities for improving their
quality of life;
b. WHEREAS, numerous reports reveal that many real estate subdivision owners,
developers, operators, and/or sellers have reneged on their representations and
obligations to provide and maintain properly subdivision roads, drainage, sewerage,
water systems, lighting systems, and other similar basic requirements, thus endangering
the health and safety of home and lot buyers;
c. WHEREAS, reports of alarming magnitude also show cases of swindling and fraudulent
manipulations perpetrated by unscrupulous subdivision and condominium sellers and
operators, such as failure to deliver titles to the buyers or titles free from liens and
encumbrances, and to pay real estate taxes, and fraudulent sales of the same subdivision
lots to different innocent purchasers for value;
d. WHEREAS, these acts not only undermine the land and housing program of the
government but also defeat the objectives of the New Society, particularly the promotion
of peace and order and the enhancement of the economic, social and moral condition of
the Filipino people;
e. WHEREAS, this state of affairs has rendered it imperative that the real estate subdivision
and condominium businesses be closely supervised and regulated, and that penalties be
imposed on fraudulent practices and manipulations committed in connection therewith.
II. Obligations of the Developer with the corresponding rights of buyer of units from
subdivisions and condominiums
a. Registration of Subdivision or Condominium Project
i. The registered owner of a parcel of land who wishes to convert the same into a
subdivision project shall submit his subdivision plan to the National Housing
Authority which shall act upon and approve the same, upon a finding that the
plan complies with the Subdivision Standards' and Regulations enforceable at the
time the plan is submitted.
21 | P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
b. License to Sell
i. Such owner or dealer to whom has been issued a registration certificate shall
not, however, be authorized to sell any subdivision lot or condominium unit in
the registered project unless he shall have first obtained a license to sell the
project within two weeks from the registration of such project. The Authority,
upon proper application therefor, shall issue to such owner or dealer of a
registered project a license to sell the project if, after an examination of the
registration statement filed by said owner or dealer and all the pertinent
documents attached thereto, he is convinced that the owner or dealer is of good
repute, that his business is financially stable, and that the proposed sale of the
subdivision lots or condominium units to the public would not be fraudulent.
c. Performance Bond
i. No license to sell subdivision lots or condominium units shall be issued by the
Authority under Section 5 of PD 957 unless the owner or dealer shall have filed
an adequate performance bond approved by National Housing Authority to
guarantee the construction and maintenance of the roads, gutters, drainage,
sewerage, water system, lighting systems, and full development of the
subdivision project or the condominium project and the compliance by the owner
or dealer with the applicable laws and rules and regulations. The performance
bond shall be executed in favor of the Republic of the Philippines and shall
authorize the National Housing Authority to use the proceeds thereof for the
purposes of its undertaking in case of forfeiture as provided in this Decree.
d. Exempt transactions from license to sell and performance bond. A license to
sell and performance bond shall not be required in any of the following
transactions:
i. Sale of a subdivision lot resulting from the partition of land among co-owners
and co-heirs.
ii. Sale or transfer of a subdivision lot by the original purchaser thereof and any
subsequent sale of the same lot.
iii. Sale of a subdivision lot or a condominium unit by or for the account of a
mortgagee in the ordinary course of business when necessary to liquidate a bona
fide debt.
e. Registration of deeds to Registry of Deeds
i. All contracts to sell, deeds of sale and other similar instruments relative to the
sale or conveyance of the subdivision lots and condominium units, whether or
not the purchase price is paid in full, shall be registered by the seller in the Office
of the Register of Deeds of the province or city where the property is situated.
Whenever a subdivision plan duly approved in accordance with Section 4 of PD
957, together with the corresponding owner's duplicate certificate of title, is
presented to the Register of Deeds for registration, the Register of Deeds shall
register the same in accordance with the provisions of the Land Registration Act,
as amended: Provided, however, that it there is a street, passageway or required
open space delineated on a complex subdivision plan hereafter approved and as
defined in this Decree, the Register of Deeds shall annotate on the new
certificate of title covering the street, passageway or open space, a
memorandum to the effect that except by way of donation in favor of a city or
municipality, no portion of any street, passageway, or open space so delineated
on the plan shall be closed or otherwise disposed of by the registered owner
without the requisite approval as provided under Section 22 of this Decree.
f. Mortgages on the subdivision or condominium
i. No mortgage on any unit or lot shall be made by the owner or developer without
prior written approval of the National Housing Authority. Such approval shall not
be granted unless it is shown that the proceeds of the mortgage loan shall be
used for the development of the condominium or subdivision project and
effective measures have been provided to ensure such utilization. The loan value
of each lot or unit covered by the mortgage shall be determined and the buyer
thereof, if any, shall be notified before the release of the loan. The buyer may, at
his option, pay his installment for the lot or unit directly to the mortgagee who
shall apply the payments to the corresponding mortgage indebtedness secured
by the particular lot or unit being paid for, with a view to enabling said buyer to
obtain title over the lot or unit promptly after full payment thereto.
22 | P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
23 | P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
24 | P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
V. Manner of Placing Price Tags (DTI Department Administrative Order No. 2, series of 1993, Rule X)
● Price tags, labels or markings must be written clearly, indicating the price of the consumer product per
unit in pesos and centavos.
● All consumer products sold in retail to the public shall bear an appropriate price tag, label or marking
indicating the price of the article. Such consumer products shall not be sold at a price higher than that
stated therein.
● Samples or dummies of products offered for sale on retail when displayed within the retail outlets shall
also bear the prices of products which they represent.
● In the case of lumber sold. displayed or offered for sale to the public, the same shall be tagged or
labeled indicating thereon the price and the corresponding official name of the wood.
● Prices of consumer products which are too small or the nature of which makes it impractical to place a
price tag thereon, shall be listed.
● In the case of consumer services, price lists may also be used in lieu of price tags. Price lists shall be
posted/placed in conspicuous places in the establishment.
VII. Inclusions and Exclusions to the Price (DTI Department Administrative Order No. 10, series of
2006)
a. Value Added Tax (VAT), whenever the product is vatable, shall be included in the price indicated in the
price tag.
b. Service Charge shall NOT be included in the price tag
25 | P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
VIII. Modes of Payment and other Price Tag Practices (DTI Department Administrative Order No.
10, series of 2006)
1. When the consumer pays in cash, he shall pay only the price indicated in the price tag.
2. When the consumer pays through a credit/ATM/debit card, he shall pay only the price indicated in the
price tag.
3. When the retailer offers the consumer an option to pay in cash, card or on installment, the same is
allowed provided the payment options shall be disclosed by way of a separate information to the
consumer but not in the price tag.
4. Price tag indicating a separate CASH PRICE TAG and REGULAR PRICE TAG on each product or service
is not allowed.
5. Price tag indicating a separate CASH PRICE TAG and CARD PRICE TAG on each product or service is
not allowed.
X. Administrative Penalties
After formal investigation, any of the following administrative penalties may be imposed on the
respondent even if not prayed for in the complaint:
a) the issuance of a cease and desist order;
b) the acceptance of a voluntary assurance of compliance or discontinuance from the respondent;
c) restitution or rescission of the contract without damages;
d) 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 damage or injury that may arise from the continued use of
product;
e) the imposition 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) or each day of continuing violation.
XI. Penalties
Any person who violates the provisions of Article 81 to 83 for the first time shall be subject: a) to a fine
of not less than Two hundred pesos (P200.00) but not more than Five thousand pesos (P5,000.00); or,
b) by imprisonment of not less than one (1) month but not more than six (6) months; or, c) both, at the
discretion of the court.
A second conviction shall also carry with it the penalty of revocation of business permit and license.
i. The purpose of Recto Law is to prevent potential abuses by the seller in the
event that the buyer is unable to make further installments for a personal
property sold in installments.
ii. This is intended to remedy the abuses committed in connection with the
foreclosure of chattel mortgages.
iii. This prevents mortgagees from seizing the mortgaged property, buying it at
foreclosure sale for a low price and then brining suit against the mortgagor for a
deficiency judgment.
iv. This is intended to protect the buyers of personal property on installment who
more often than not have been victimized by sellers who, before the enactment
of this law, succeeded in unjustly enriching themselves at the expense of the
buyers because aside from recovering the goods sold, upon default of the buyer
in the payment of two installments, still retained for themselves all amounts
26 | P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
2. Exact fulfillment; or
a. The seller will send a demand letter to the buyer. Afterwards,
the seller will file a civil action for exact fulfillment a.k.a. civil
action to collect a sum of money. Afterwards, the court will issue
a writ of attachment to enforce the judgment. In case there will
be deficiency arising from the public sale of the movable
property, the seller can still recover the deficiency by attaching
the other properties of the buyer.
3. Cancel the sale; or
27 | P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
I. State Policy
a. It is the policy of the State to ensure the availability of basic necessities and prime
commodities at reasonable prices at all times without denying legitimate business a fair
return on investment. It is also a declared policy of the State to provide effective and
sufficient protection to consumers against hoarding, profiteering and cartels with respect
to the supply, distribution, marketing and pricing of said goods, especially during periods
of calamity, emergency, widespread illegal price manipulation and other similar
situations. To these ends, the State shall:
i. (1) Develop, adopt and promulgate measures to promote productivity in basic
necessities and prime commodities;
ii. (2) Develop an improved and efficient transport and distribution system;
iii. (3) Develop, adopt and promulgate measures to stabilize prices at reasonable
levels;
iv. (4) Institute appropriate penalties for illegal price manipulation and other
violations of this Act; and
v. (5) Establish a mechanism that will readily protect consumers from inadequate
supply and unreasonable price increase on occasions of calamities, emergencies
and like occurrences.
28 | P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
b. Profiteering, which is the sale or offering for sale of any basic necessity or prime
commodity at a price grossly in excess of its true worth. There shall be prima facie
evidence of profiteering whenever a basic necessity or prime commodity being sold: (a)
has no price tag; (b) is misrepresented as to its weight or measurement; (c) is
adulterated or diluted; or (d) whenever a person raises the price of any basic necessity
or prime commodity he sells or offers for sale to the general public by more than ten
29 | P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
percent (10%) of its price in the immediately preceding month: Provided, That, in the
case of agricultural crops, fresh fish, fresh marine products, and other seasonal products
covered by this Act and as determined by the implementing agency, the prima facie
provisions shall not apply; and
c. Cartel, which is any combination of or agreement between two (2) or more persons
engaged in the production, manufacture, processing, storage, supply, distribution,
marketing, sale or disposition of any basic necessity or prime commodity designed to
artificially and unreasonably increase or manipulate its price. There shall be prima facie
evidence of engaging in a cartel whenever two (2) or more persons or business
enterprises competing for the same market and dealing in the same basic necessity or
prime commodity, perform uniform or complementary acts among themselves which
tend to bring about artificial and unreasonable increase in the price of any basic
necessity or prime commodity or when they simultaneously and unreasonably increase
prices on their competing products thereby lessening competition among themselves.
30 | P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
31 | P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
iv. Such other considerations as may be deemed necessary to carry out the intents
purposes and provisions of this Act.
j. He may require the attendance and testimony of witnesses or the production of goods,
objects, books, papers, documents, contracts, records, financial statements, accounts,
agreements and such other evidences material in the determination of any violation of
this Act;
k. Without prejudice to the power to issue temporary closure or temporary restraining order
for a period which shall not be more than ten (10) days, he may, after due notice and
hearing issue cease and desist orders; reprimand; censure; suspend, revoke or cancel
any permit, license, authority or registration issued by his office; or order the permanent
closure of any establishment violating the provisions of this Act;
l. He may initiate summary proceedings to cause the seizure by the Government of basic
necessities and prime commodities subject of a violation of this Act and order their sale
to the public at reasonable prices whenever the nature of or the demand for such goods
so requires: Provided, That, pending litigation, the proceeds of the sale shall be held in
trust or escrow by the implementing agency: Provided, further, That, should the owner
of the basic necessity or prime commodity seized and sold be found not liable for the
violation which was the basis of the seizure, the proceeds from their sale shall be paid to
him, otherwise, they shall accrue to the general fund of the Government and: Provided,
finally, That, the head of the implementing agency shall cause the broadcast in radio or
television and the publication in at least two (2) newspapers of general circulation of the
fact of sale or disposition of such seized goods at least three (3) days before the date of
sale or disposition;
m. He may initiate action and cause the prosecution before the proper court of law of
violations of this Act;
n. He may deputize and enlist the assistance of any government official or agency in
carrying out the provisions of this Act; and
o. Such other functions and ancillary powers as may be necessary to effectively implement
this Act.
32 | P a g e RLACO/DSALES/NVALDERRAMA
No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : [email protected]
b. It shall report to the President and to the Congress of the Philippines the status and
progress of the programs, projects, and measures undertaken by each implementing
department, agency or office as well as the comprehensive strategies developed by the
Council to stabilize the prices of basic necessities and prime commodities;
c. It shall advise the President on general policy matters for promotion and improvement in
productivity, distribution and stabilization of prices of basic necessities and prime
commodities;
d. It may require from its members or any other government agency such information as it
may deem necessary, and conduct public hearings for purposes of assessing the supply,
distribution and price situation of any basic necessity or prime commodity;
e. It shall publicize from time to time developments in productivity, supply, distribution and
prices of basic necessities and prime commodities; and
f. Whenever automatic price control of basic necessities is imposed under Section 6 of this
Act, it shall cause the immediate dissemination of their prevailing prices or the price
ceilings imposed in lieu thereof, as the case may be, through publication in a newspaper
of general circulation in the area affected, and through broadcast by radio and,
whenever the same is deemed to materially make dissemination of the information more
effective, by television. It may also disseminate the information through posting in public
markets, supermarkets and other public places.
XII. The Price Action Officer Powers and Functions - Whenever the President deems it
necessary, he may appoint any of the members of the Price Coordinating Council as Price
Action Officer for the duration of the automatic price control under Section 6 of this Act
who shall have the following powers and functions:
a. He shall carry out, implement and enforce the policies and decisions of the Council;
b. He shall coordinate the actions of all implementing agencies involved in the monitoring
and investigation of abnormal price movements and shortages of basic necessities and
prime commodities;
c. He may call upon any official, agent, employee, agency or instrumentality of the national
or local government for any other assistance that he may deem necessary to carry out
the purposes of this Act;
d. He shall establish linkage and coordinate with nongovernment or private organizations in
the affected are to assist in the monitoring and implementation of price control therein;
and
e. He shall exercise such other functions and duties as may be given to him by the
President.
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