SENATE BILL

JUL
21
2016

SBN-838: The Enhanced Consumer Act of 2016

An Act Granting Broader Protection To Consumers Amending For The Purpose Republic Act No. 7394, Otherwise Known As “The Consumer Act Of The Philippines”

  • The bill introduces the following provisions/articles and amendments to enhance consumer protection and to promote high ethical standards in trade practices:
  • 8 Consumer Bill of Rights and 5 consumer responsibilities;
  • Mandates the English or Filipino translation of product labels written in foreign characters/languages;
  • Permanently bans suppliers engaged in the importation of defective goods;
  • Protects consumers from aggressive marketing promotions that significantly impair the average consumer’s freedom of choice with regard to the purchase of a product or service;
  • Expands the coverage of the provisions on advertising and promotion to include those for consumer products, services and credit facilities which include sponsorships of programs, concerts, games, shows and similar activities;
  • Strengthens the chapter on Advertising and Sales Promotion and provided instructions on how advertisements should treat specific claims on ingredients, results of researches and surveys, scientific claims, testimonials and endorsements, and leadership claims;
  • Increases the penalties for violations of any provision of the Consumer Act of the Philippines from 2 to 3 years;
  • Includes the definition of terms in accordance with new technologies and trade practices; and
  • Adds the grant of authority for the automatic closing down of any establishments caught in flagrante delicto selling, distributing, manufacturing, producing, or importing substandard and hazardous products.

 

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