The House Committee on Trade and Industry chaired by Batangas Representative Marvey Mariño approved a substitute bill, which proposes a new Consumer Act of the Philippines by amending Republic Act 7394 and make it attuned to present developments brought about by technological advancements and the globalized economy that directly affect consumer transactions.
The substitute bill, crafted by a technical working group headed by Rizal Representative Emigdio Tanjuatco III, also seeks to rationalize the powers, functions and duties of implementing agencies in addressing and curbing prohibited activities affecting consumer protection.
The substitute bill also seeks to rationalize the powers, functions and duties of implementing agencies in addressing and curbing prohibited activities affecting consumer protection.
1) adopts the United Nations’ guidelines on consumer protection as the guiding philosophy to enhance and strengthen consumer protection,
2) empowers implementing agencies, such as the Department of Health, Department of Agriculture and Department of Trade and Industry to close business premises or establishments found selling products that are harmful to health and cause injury to people,
3) amends the definition of the terms on chain distribution plans, consumer, consumer products and services, and
4) defines online merchant, online shopping, and product lifespan.
It also seeks to expand the powers and functions of implementing agencies to include:
1) visitorial power,
2) declare a product as imminently injurious, unsafe or dangerous,
3) implement provisional remedies, such as immediate recall, ban, and prohibition,
4) strengthen regulatory capacities, and
5) call for assistance of other agencies.
The bill also provides for the translation to English or Filipino of product labels written in foreign characters or languages.
The bill also provides for the translation to English or Filipino of product labels written in foreign characters or languages.
It also renames the National Consumer Affairs Council to Consumer Affairs Council of the Philippines to emphasize the council’s function.
Moreover, the bill recognizes the wide use of the internet for consumer transactions in the definition of mass media, online merchants, and online shopping and penalizes false, deceptive and misleading advertisements via the internet, cyber shops, social networking sites and landline or mobile phones.
The TWG held five meetings in crafting the bill, which substituted HBs 805, 847, 1139, 3556 and 6074.
Meanwhile, the committee also approved the creation of a TWG that will conduct meetings with various stakeholders, as well as submit its recommendations to the panel, including a draft substitute bill on the proposed online pharmacy or E-Botika Act.
