lucia eagle ridge 728 x 90 090724" width="728" height="90" />lucia eagle ridge 728 x 90 090724" width="728" height="90" />
The House Committee on Trade and Industry approved on Monday the New Consumer Act of the Philippines to further improve consumer protection in the country.
House Committee on Trade and Industry Chairman Mario Vittorio A. Mariño said the approved measure, a consolidation of House bills 805, 847, 1139, 3556, and 6074, seeks to amend Republic Act 7394, or the Consumer Act of the Philippines.
The proposed amendments will now be forwarded to the House Committee on Appropriations to address funding provisions.
The amendments aim to directly address consumer transactions and enhance overall consumer protection.
Additionally, the proposal aims to rationalize and streamline the powers, functions, and duties of implementing agencies tasked with addressing and preventing prohibited activities affecting consumer protection.
The proposed New Consumer Act follows the United Nations’ guidelines on consumer protection as a guiding philosophy to enhance and strengthen consumer rights.
The bill empowers implementing agencies, such as the Department of Health, Department of Agriculture, and Department of Trade and Industry, to take immediate action against businesses selling unsafe products that are harmful to health and cause injury.
The bill said implementing agencies would now have visitorial powers, the ability to declare products as imminently injurious or unsafe, and provisional remedies, such as immediate recall, ban, and prohibition.
Under the bill, the act of inducing consumers, including differently-abled individuals, into transactions against their interests is considered an unfair or unconscionable sales act or practice.
The bill said the non-issuance of an express warranty for brand-new products by manufacturers or service suppliers is deemed a prohibited proposal.
It also said that manufacturers, distributors, retailers, and service establishments are mandated to maintain a manned consumer hotline or service center for complaints and inquiries.
The bill mandates that product labels in foreign characters or languages must be translated into English or Filipino.
The scope of price tag requirements is amended to prevent overcharging when using credit cards, debit cards, or similar means, which is also provided under the proposal.
Definition of terms, such as chain distribution plans, consumer, consumer products and services, online merchant, online shopping, and product lifespan are amended for clarity.
The bill also said the prevalence of online transactions, false, deceptive, or misleading advertisements via the internet, cyber shops, social networking sites, landlines, or mobile phones would be penalized.
Meanwhile, the bill renamed the National Consumer Affairs Council as the Consumer Affairs Council of the Philippines (CACP), and its composition was expanded to include seven additional government agencies, four representatives from consumer organizations, and four representatives from the business sector.
Cagayan de Oro Rep. Rufus Rodriguez, the principal author of a bill, emphasized the need for updated penalties in the existing law, which was enacted almost 20 years ago on April 13, 1992.
Highlighting the inadequacy of the current penalties, Rodriguez expressed concern that the relatively low fines provided in the law do not effectively deter violations.
He argued that violators find it more convenient to pay the penalties than to comply with the law.
To address this issue, Rodriguez proposed an increase in penalties to strengthen the legal framework and ensure compliance from potential violators.
Beyond penalties, Rodriguez’s proposed amendments align with the State’s policy to protect and promote the right to health of the people.
He pushed for a comprehensive approach to health development by requiring all food, medicine, and food supplement products and goods sold in the country to include an English translation of essential information, such as the product’s name, ingredients, place of manufacture, and nutrient contents.
“This measure will also afford greater protection to consumers and harmonize the Consumer Act with current developments, particularly those brought about by technological advancement and the globalized economy directly affecting consumer transactions,” said Rodriguez.
