First slide: Title and Intro:

GOOD Morning, and Maayong Adlaw sa tanan!

I am tasked to present the issues and concerns arising from the consumer act of
the Philippines. My presentation will be very short so please bear with me.

We know for a fact that customers nowadays have more power than ever, in this
internet driven world, specially during this time of the pandemic. We know that
customers will air out their complaints in social media, meron pang ipapatulfo
agad buti na lang tumakbo Pagkasenador. Customers are often uncomfortable
making direct complaints. If a customer is dissatisfied with your business, they
will often complain to others — colleagues, family, friends and your business
competitors — before they complain to you. Social media allows dissatisfied
customers to reach large online audiences with their complaints. Websites,
blogs and chat sites Booooom Sira ang Negosyo!
And We don’t want these things to happen. As much as possible we want na
balansehin ito, and we encourage consumers to file complaints with the proper
agencies of concern.
We are all consumers. Why? because basically, we are persons who purchases
goods and services for our personal use or consumptions. I am a consumer
myself. Everyone of us who consumes anything for survival is a consumer;
every individual is a consumer, regardless of occupation, age, gender,
community or religious affiliation. Consumer rights and welfare are now an
integral part of the life of an individual and we all have made use of them at
some point or the other in our daily routine. And yes we have rights as a
consumer but let us not forget that we also have responsibilities attached to it.

Consumers have traditionally called for government intervention, when the

sellers fail to produce a socially desirable outcome. Kaya nga po ipinanganak
ang Consumers Act of the Philippines or Republic Act No. 7394. Para po
protektahan at may matakbuhan tayong mga consumers to seek redress.

The Consumer Act, is an important legislation to protect the consumers from

exploitation from the business and trading community with bad intentions.
Technically the law was designed to prevent business/es that engage in fraud or
specified unfair practices from gaining an advantage over competitors and
provide additional protection for the consumers. As clearly said, it is the policy of
the state to protect the consumers, promote general welfare and establish
standards of conduct for business and industry. So the main objective of this
ACT is focused generally to the welfare, protection and rights of all consumers
in the Philippines. Para po sa ating lahat, because we are all consumers.
Slide 2: Scoop
The cases covered are those arising from complaints filed by consumers who
are limited only to natural persons. That said, juridical entities such as
corporations are excluded.
Further, the consumer products and services referred to under the Consumer
Act are those whose purposes are primarily for personal, family, household or
agricultural (when the product/service is for business purposes, the same is not
covered under the Consumer Act)
This means that even if the complainant is a natural person, if the purpose of
the transaction is for his/her business as a sole proprietor, it will still not be
considered as a consumer transaction.
Bakit kamo? As earlier said a Consumer is a person who purchases goods and
services for personal use. Para sa sarili hindi para sa Negosyo o anumang
transaction.
However, kami po sa DTI ay may tinatawag na “No Wrong Door Policy”
pagdating po sa mga consumer Complaints. In as much as we can we help
facilitate all complaints that is or was filed in us. We either take cognizance of
the complaints kung klarong may hurisdikyon at mandato kami or we refer it to
the proper agency for specific and appropriate action.
We do this even noong time pa ni DDG Ted when he was the Usec for
Consumer Protection Group and lalong lalo na po ngayon that we shifted
digitally in almost all of our transactions due to this COVID 19 Pandemic. We all
became Vulnerable Consumers, mas maraming naloloko at nanloloko lalong
lalo na po in the digital world.

Next Slide please:

The cases covered are those arising from complaints filed by consumers who
are limited only to natural persons. That said, juridical entities such as
corporations are excluded.
Further, the consumer products and services referred to under the Consumer
Act are those whose purposes are primarily for personal, family, household or
agricultural (when the product/service is for business purposes, the same is not
covered under the Consumer Act)
This means that even if the complainant is a natural person, if the purpose of the
transaction is for his/her business as a sole proprietor, it will still not be
considered as a consumer transaction.
Example:
I Bumili ako ng dump truck para magamit ng hardware ko at nagkaproblema
agad makalipas lang ng ilang araw. Pwede ba akong magfile ng consumer
complaint for this one? The answer is clearly a No. The main reason for me to
buy that Dumptruck is clearly for business purposes and for my own
consumption. Not unless yung dumptruck ginamit nya as personal service nya
at hindi para sa Negosyo.
Di po ba sabi, for one to file a consumer complaint he must be a person who
purchases products and services referred to under the Consumer Act primarily
for personal, family, household use. And Agricultural products pa pala Again for
personal use.
Next Slide Please:

Slide 4:

For (2) Provisions against Deceptive Sales Acts or Practices:

• the provision is clear that whenever a seller misrepresents that the
consumer product is new or original when in fact it is not, the seller can
already be held liable for deceptive sales acts/practices
 • Or when the claim of the product says that it is for this purpose [gagwapo
o gaganda ka] but you did not, again the seller is liable for Deceptive sales
act, misleading advertisement.
• in false/deceptive/misleading advertisements, consumer transaction is
necessary. For complaint of deceptive sale acts or practices
kailangang may consumer transaction na nangyari between the
buyer and the seller.

ARTICLE 50 of the consumer Act. What does article 50 says: It is the Prohibition
Against Deceptive Sales Acts or Practices.

Prohibition Against Deceptive Sales Acts or Practices. — 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 or fraudulent
manipulation, induces a consumer to enter into a sales or lease
transaction of any consumer product or service.

Example: Greenhills…… One offered you a Class A Original Louis Baton… at a

price na hindi naman ganun kamahal. Nad because of that enticement from the
seller na Original Class A Louis Baton yung bag napabili ka tuloy…. With that a
Deceptive sales act was already committed by the seller. In short Naloko ng
Manlolokong Seller si Buyer. May false representation sa pagbenta noong bag.
In fact the buyer was mislead.

Another Classic Example…. Yung mga produktong pampaganda…. Sabi nong

seller kapag ginamit mo to magiging kamukha mo si BEA,…. Lumabas ang mga
ad materials nya trimedia tapos the same ang sinasabi na kapag gumamit ka ng
produkto nay un magiging kamukha mo si Bea o si Alden.. Eh hindi nagkatotoo
kase hindi naman pala epektibo yung produkto nya at ang masaklap baka peke
pa o walang kaukulang pahintulot kay FDA yung produkto… So Misleading na
naman and napeke ka.

Actually para madagdagan ang kaso pwede nating ipasok si ARTICLE 52.
Unfair or Unconscionable Sales Act or Practice. But this will entirely depend on
the circumstances. Kase sabi ng Article 52
—An act or practice shall be deemed unfair or unconscionable whenever
the producer, manufacturer, distributor, supplier or seller, 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.

Next slide please.

Slide 5:

How about Minimum Labeling requirements. Under the law:

All consumer products domestically sold whether manufactured locally or
imported shall indicate the following in their respective labels of packaging:
• its correct and registered trade name or brand name
• its duly registered trademark
For (3) Minimum Labeling Requirements:
• consumer products must bear the correct and registered trade name,
brand name, and trademark
Any person who misrepresent that his products are under a registered in the
trade name, brand name or trademark of another would be violating minimum
labelling requirements because it fails to disclose the true source, nature or
quality of the products
If and when these requirements are not there, may possible violation tayo. If one
product was labelled as A certain premium product gaya ng Louis Baton… but in
truth and in fact hindi sya Louis Baton…. Mahuhulog pa din sya under deceptive
sales act. One product sold purportedly as authentic when in fact it is not.

Next Slide please.

Slide 6:

Penalties:
Corresponding penalties to the provisions discussed:
(1) False, Deceptive and Misleading Advertisement
• Fine (not less than PHP 500 but not more than 5,000) or
• Imprisonment (not less than 1 mo. but not more than 6 months),
• or both upon the discretion of the court.
(2) Provisions against Deceptive Sales Acts or Practices-
• Fine (not less than PHP 500 but not more than 10,000) or
• Imprisonment (not less than 5 mos. but not more than 1 yr),
• or both upon the discretion of the court.
Next Slide Please.
Slide 7:

Important distinctions of the criminal and administrative aspects:

For Jurisdiction:
• The jurisdiction of the criminal aspect of the violations of the Consumer
Act is with the courts.
• The administrative aspect is lodged with the DTI-FTEB.
• Any prayer for damages may also only be granted in the regular courts
Burden of proof and Quantum of Proof
• As in criminal cases, the prosecution has the burden of proving the
elements of a crime beyond a reasonable doubt.
• Burden of proof rests on the prosecution.
Important distinctions of the criminal and administrative aspects:
Next
Slide 8:

Challenges encountered:
 Reluctance of brands to file a criminal case due to inevitable disclosure of
trade secrets or sensitive business information in the conduct of trials
• Filing of a case would necessarily require the presentation of
confidential business information such as but not limited
to formulation/formula, technique, process, or methods used by
businesses in their products in order to successfully advance one's
claim
 Difficulty in acquiring jurisdiction over foreign manufacturers and
distributors who produce and export counterfeit products to the country
• Identities of foreign manufacturers/distributors are often undisclosed,
unknown or outside the country
• If its online we also find it difficult to acquire jurisdiction over the
person of the seller. Andaming nagtatago at nanloloko online lalo na
dyan sa isang known social media platform na nagkaglitch lately.
  Expensive litigation costs for criminal cases for filing fees and evidence
gathering.
 Age of e-commerce creating vast opportunities for illegal commerce
• Any social media or messaging app/platform can be used to entice
and transact with consumers
• It is easy to create fake reviews to seem credible to consumers
 No regulation of sellers in online platforms
• There is a gap in the law due to the absence of regulatory law for
online platforms such as Shopee, Lazada, Carousel, etc.
• Online platforms continue to negate liability by claiming that it is a
mere platform
• Creation of online platforms of systems to devoid itself of
responsibility to consumers

With that, I hope I have laid out to you clearly the process of how DTI handles
Issues and concerns related to Intellectual Property Code in the realm of the
Consumer Act of the Philippines. I have to be honest, very rare that we have IP
related cases that prosper to full adjudication process for reasons that
complainant would opt to have their complaints settled amicably and that having
said wala na kaming cause of action to proceed. We have to acknowledge that
we are all vulnerable consumers specially now that most of our transactions
shifted digitally. BTW for everybodies info, DTI and IPOPhil already signed a
Memorandum of Agreement to collaborate and cooperate as to monitoring and
enforcement matters and at the moment a Technical Working Group was tasked
to craft the implementing guidelines of the MOA, and once done were good to
go.
Magandang Umaga po Stay safe and healthy everyone. And Also babatiin ko na
rin po kayong lahat ng Happy Consumer Welfare Month!
Maraming Salamat Po!