Enhanced Consumer Act of the Philippines

TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session ) 25 JUL -3 P4:57 SENATE RECE S. No. Introduced by Senator MARK A. VILLAR AN ACT GRANTING ENHANCED PROTECTION TO CONSUMERS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7394 OR THE "CONSUMER ACT OF THE PHILIPPINES," AS AMENDED EXPLANATORY NOTE The Consumer Act plays a crucial role in safeguarding consumers against unlawful sales acts, ensuring product safety, and encouraging market transparency and accountability. Due to the rapidly evolving marketplace, consumers in the Philippines are currently being exposed in various forms of deceptive, unfair and unconscionable sales acts and practices, including scams and fraudulent schemes under the guise of marketing strategies. As such, it is necessary for the government to develop, strengthen, and provide a strong consumer policy responsive to the prevailing conditions, and to the needs of the Filipino consumers. Thus, this bill seeks to amend Republic Act No. 7394 or the Consumer Act of the Philippines by developing and implementing enhanced consumer protection mechanisms, promoting general welfare of consumers, and establishing standards of ethical conduct for offline and online business and industry. Specifically, the proposed measure will codify consumer rights and responsibilities; define and criminalize pseudo-investment schemes, such as multi- level marketing or networking and pyramid sales schemes; and require accurate

products and drugs labelling requirements. Additionally, the bill mandates the increase of penalties as effective deterrence. In view of the foregoing, passage of this bill is earnestly sought. MARK A. VILLAR

TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session JUL -3 P4:58 SENATE S. No. 92 RIC Introduced by Senator MARK A. VILLAR AN ACT GRANTING ENHANCED PROTECTION TO CONSUMERS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7394 OR THE "CONSUMER ACT OF THE PHILIPPINES," AS AMENDED Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Short Title. - This Act shall be known as the "Enhanced Consumer

Act of the Philippines".

Sec. 2. Article 2 of Republic Act No. 7394, as amended, is hereby amended to

read as follows: "Article 2. Declaration of Policy.—It is the policy of the State to protect the interests of [the] consumerS, promote [his] THEIR general welfare and [te] establish standards of conduct for business and industry. THE STATE NEEDS TO DEVELOP AND IMPLEMENT A STRONG CONSUMER PROTECTION POLICY, PROMOTE THE GENERAL WELFARE OF CONSUMERS, AND ESTABLISH STANDARDS OF ETHICAL CONDUCT FOR OFFLINE AND ONLINE BUSINESS AND INDUSTRY. Towards this end, the State shall implement measures to achieve the following objectives: a) protection against hazards to health and safety; b) protection against deceptive, unfair and unconscionable sales acts and practices; e) provision of information and education to facilitate sound choice and the proper exercise of rights by the consumer;

# provision of adequate rights and means of redress; and e) involvement of consumer representatives in the formulation of social and economic policies. "A. DEVELOP AND IMPLEMENT A STRONG CONSUMER PROTECTION POLICY THAT WILL ENSURE THE ACCESS TO CONSUMERS TO QUALITY, SAFE, AND NON-HAZARDOUS PRODUCTS AND FAIR, EQUITABLE AND SUSTAINABLE ECONOMIC AND SOCIAL DEVELOPMENT AND ENVIRONMENTAL PROTECTION; "B. UPHOLD STANDARDS OF ETHICAL CONDUCT FOR INDIVIDUALS ENGAGED IN THE PRODUCTION AND DISTRIBUTION OF GOODS AND SERVICES TO CONSUMERS, INCLUDING INTERNET TRANSACTIONS; "C. ENCOURAGE SELF-REGULATION IN THE ADVERTISING INDUSTRY TO ENHANCE AND ENSURE CONSUMER PROTECTION THROUGH THE ADOPTION AND OBSERVANCE OF A CODE OF ETHICS CONSISTENT WITH THIS ACT AND ITS IMPLEMENTING RULES AND REGULATIONS; "D. PROTECT THE CONSUMER FROM THE DECEPTIVE, UNFAIR, AND UNCONSCIONABLE SALES ACTS AND PRACTICES, AND OTHER ABUSIVE BUSINESS PRACTICES; "E. FACILITATE THE RECOGNITION OF INDEPENDENT CONSUMER GROUPS; "F. FOSTER INTERNATIONAL COOPERATION IN THE FIELD OF CONSUMER PROTECTION; "G. ENCOURAGE THE DEVELOPMENT OF MARKET CONDITIONS THAT ARE FREE FROM HOARDING AND HELP CONSUMERS MAKE WELL- INFORMED CHOICES; AND "H. PROMOTE SUSTAINABLE CONSUMPTION TO FACILITATE PRODUCTION AND DISTRIBUTION PATTERNS WHICH BALANCE THE RESOURCES AND THE NEEDS OF THE CONSUMERS, THEREBY REDUCING THE RATE OF HOUSEHOLD INSECURITIES."

Sec. 3. A new Article 4 is hereby inserted after Article 3 of Republic Act No.

7394, as amended, and the subsequent articles shall be renumbered accordingly:

"ARTICLE 4. CONSUMER RIGHTS. - THE GOVERNMENT, IN MAINTAINING AND STRENGTHENING THE PROMOTION OF CONSUMER INTEREST AND WELFARE IN RELATION TO BUSINESS AND INDUSTRY PRACTICE AS WELL AS THE PRODUCTION AND DISTRIBUTION OF CONSUMER PRODUCTS, SHALL ADOPT MEASURES AND FORMULATE POLICIES TAKING INTO ACCOUNT THE EIGHT (8) BASIC CONSUMER RIGHTS. EVERY CONSUMER SHALL BE ENTITLED TO THE: "A. RIGHT TO BASIC NEEDS. EVERY CONSUMER SHALL HAVE ACCESS TO BASIC AND ESSENTIAL GOODS AND SERVICES, SUCH AS ADEQUATE FOOD, CLOTHING, SHELTER, HEALTHCARE, EDUCATION, PUBLIC UTILITIES, WATER AND SANITATION; "B. RIGHT TO CHOOSE. EVERY CONSUMER SHALL HAVE THE RIGHT TO SELECT FROM A VARIETY OF GOODS AND SERVICES OFFERED TO COMPETITIVE PRICES, EITHER SOLD IN PERSON OR ONLINE, WITH AN ASSURANCE OF SATISFACTORY QUALITY; "C. RIGHT TO BE HEARD. EVERY CONSUMER SHALL BE ENTITLED TO EXPRESS INTEREST, TO BE INVOLVED, HEARD, AND CONSIDERED IN THE FORMULATION AND IMPLEMENTATION OF GOVERNMENT POLICIES; "D. RIGHT TO REDRESS, EVERY CONSUMER SHALL HAVE ACCESS TO APPROPRIATE REMEDIES FOR MISREPRESENTATION, SUBSTANDARD OR DEFECTIVE PRODUCTS OR UNSATISFACTORY SERVICES; "E. RIGHT TO CONSUMER EDUCATION. EVERY CONSUMER SHALL HAVE ACCESS TO KNOWLEDGE AND SKILLS NEEDED TO MAKE INFORMED CHOICES AND UNDERSTAND THE ENVIRONMENTAL, SOCIAL, AND ECONOMIC CONSEQUENCES OF THEIR DECISIONS THROUGH THE USE OF ALL AVAILABLE AND CONVENIENT MEANS; "F. RIGHT TO SAFETY. EVERY CONSUMER SHALL BE PROTECTED AGAINST HAZARDOUS PRODUCTS, PRODUCTION PROCESSES, AND SERVICES;

"G. RIGHT TO HEALTHY ENVIRONMENT. EVERY CONSUMER SHALL HAVE THE RIGHT TO LIVE AND WORK IN AN ENVIRONMENT THAT IS NEITHER THREATENING OR DANGEROUS, AND ALLOWS A LIFE OF DIGNITY AND WELL-BEING; AND "H. RIGHT TO INFORMATION. EVERY CONSUMER SHALL BE PROVIDED WITH INFORMATION NECESSARY TO MAKE AN INFORMED CHOICE ON PRODUCTS AND SERVICES AND SHALL BE PROTECTED AGAINST DISHONEST OR MISLEADING ADVERTISING AND LABELING."

Sec. 4. A new Article 5 is hereby inserted after the new Article 4 of Republic

Act No. 7394, as amended, and the subsequent articles shall be renumbered accordingly: "ARTICLE 5. CONSUMER RESPONSIBILITIES. - IN RELATION TO THE BASIC RIGHTS GRANTED IN THE PRECEDING ARTICLE, EVERY CONSUMER SHALL EXERCISE THE FOLLOWING RESPONSIBILITIES: CRITICAL AWARENESS. EVERY CONSUMER SHALL BE ALERT AND INQUISITIVE ABOUT THE USE, PRICE, SOURCE, AND QUALITY OF GOODS AND SERVICES. "A. CRITICAL AWARENESS. - EVERY CONSUMER SHALL BE VIGILANT AND INFORMED ABOUT THE USE, PRICE, SOURCE, AND QUALITY OF GOODS AND SERVICES; "B. ACTION. - EVERY CONSUMER SHALL ASSERT THE RIGHT TO TAKE ACTION TO ENSURE THAT ONE'S RIGHT AS A CONSUMER ARE AMPLY PROTECTED; "C. SOCIAL CONCERN, - EVERY CONSUMER SHALL BE AWARE OF THE IMPACT OF ONE'S CONSUMPTION ON THE OTHER CITIZENS ESPECIALLY THE MARGINALIZED GROUPS; "D. ENVIRONMENTAL AWARENESS. - EVERY CONSUMER SHALL BE CONSTANTLY AWARE OF THE IMPACT OF HUMAN ACTIVITY TO THE ENVIRONMENT. THE CONSUMER SHOULD RECOGNIZE THE OBLIGATION OF INDIVIDUALS, AND OF SOCIETY IN GENERAL, TO UTILIZE NATURAL RESOURCES SUSTAINABLY AND RESPONSIBLY,

AND TO SECURE AND PROTECT THE EARTH FOR FUTURE GENERATIONS; AND "E. SOLIDARITY. - CONSUMERS SHALL ORGANIZE THEMSELVES INTO GROUPS OR ASSOCIATIONS TO STRENGTHEN THEIR POSITION IN THE FORMULATION OF POLICIES AIMED AT ADVANCING AND PROTECTING THEIR INTERESTS."

Sec. 5. Article 4 (k) of Republic Act No. 7394, as amended, is hereby amended

to read as follows: "Article [4] 6. Definition of Terms. -For purposes of this Act, the term: "k. Chain [e] distribution [plan]S [or pyramid sales schemes means sales devices whereby a person, upon condition that he makes an investment, is granted by the manufacturer of his representative a right to recruit for profit one or more additional persons who will alse be granted such right to recruit upon condition of making similar investments: Provided, That the profits of the person employing such a plan are derived primarily from the recruitment of other persons into the plan rather than from the sale of consumer products, services, and credit: Provided, further, That the limitation on the number of participants does not change the nature of the plan.] OR "PSEUDO- INVESTMENTS" REFER TO ANY BUSINESS STRUCTURE, SALES OR MARKETING PLAN OR SCHEME SUCH AS: "1. "MULTI-LEVEL MARKETING (MLM) OR NETWORK MARKETING" REFERS TO A LEGITIMATE SALES DEVICE WHEREBY ANY PERSON, NATURAL OR JURIDICAL, AND OTHER BUSINESS ENTITY WHO SELLS, DISTRIBUTES, MANUFACTURES OR SUPPLIES, FOR VALUABLE CONSIDERATION, GOODS OR SERVICES THROUGH INDEPENDENT AGENTS, CONTRACTORS OR DISTRIBUTORS, AT DIFFERENT RANK LEVELS, WHEREIN SUCH PARTICIPANTS MAY RECRUIT OTHER PARTICIPANTS WITHOUT REQUIRING PAYMENT CHARGES, FEES OR CONTRIBUTIONS, AS A PREREQUISITE FOR OTHER PEOPLE THEY BRING INTO THE BUSINESS. MLM SHALL ALSO REFER TO A FORM OF

DIRECT SELLING WHEREBY GOODS AND SERVICES ARE SOLD TO PERSON-TO-PERSONS BASIS; "2. "PYRAMID SALES SCHEME" REFERS TO SALE DEVICE OR PLAN WHEREBY, UPON CONDITION THAT AN INVESTMENT IS MADE BY WAY OF PURCHASING GOODS OR PAYING A FEE, A PERSON IS GRANTED BY A MANUFACTURER OR THE MANUFACTURER'S REPRESENTATIVE THE RIGHT TO SELL PRODUCTS AND SERVICES AS WELL AS RECRUIT ONE OR MORE ADDITIONAL PERSONS WHO WILL BE GRANTED SUCH RIGHT TO RECRUIT, UPON CONDITION OF MAKING SIMILAR INVESTMENTS; "3. "PONZI SCHEME" REFERS TO A BUSINESS STRUCTURE OPERATED BY A PERSON OR GROUP, NATURAL OR JURIDICAL, WHERE THERE IS NO TRUE PRODUCT OR SERVICE BEING OFFERED IN EXCHANGE FOR THE INVESTMENT AND WHERE THE MONEY TENDERED BY NEW INVESTORS ARE PAID TO EARLIER INVESTORS; "4. TELEMARKETING FRAUD" REFERS TO A SCHEME WHERE HIGH PRESSURE SALES TACTICS ARE MADE OVER THE PHONE WITH THE INTENT TO MAKE THE INVESTOR BUY INTO A FRAUDULENT OR NON- EXISTENT INVESTMENT OFFERING; AND "5."TECHNOLOGY FRAUD" REFERS TO A SCHEME WHEREIN INVESTORS ARE DECEIVED INTO MAKING PURCHASES OF OR INVESTMENTS ON NON-EXISTENT PRODUCTS, THROUGH THE INTERNET OR DIGITAL PLATFORMS."

Sec. 6. A new article 54 is hereby inserted after the renumbered Article 53 of

Republic Act No. 7394, as amended, and the subsequent articles shall be renumbered accordingly: "ARTICLE. 54. BILLING STATEMENTS AND OTHER TRANSACTION DOCUMENTS. BILLING STATEMENTS AND OTHER TRANSACTION

DOCUMENTS MAY BE SENT IN PRINTED OR ELECTRONIC FORM AT THE OPTION OF, AND WITHOUT ANY ADDITIONAL COST, TO CONSUMERS. THE CONSUMERS' RIGHT TO SELECT THE MODE IN WHICH THEY RECEIVE THEIR BILLING STATEMENTS AND OTHER TRANSACTION DOCUMENTS MAY NOT BE CONDITIONED ON THE VALUE OF THE PRODUCTS OR SERVICES PROVIDED IN THE TRANSACTION."

Sec. 7. Article 53 of Republic Act No. 7394, as amended, is hereby amended to

read as follows: "ARTICLE [53] 56. Chain Distribution Plans or [Pyramid Sales Schemes.] PSEUDO-INVESTMENTS, - Chain distribution plans or [pyramid sales schemes.] PSEUDO-INVESTMENTS shall not be employed in the sale of consumer products." A REGISTERED MULTI-LEVEL MARKETING COMPANIES SHALL REGISTER AND FILE THEIR MLM PLANS WITH THE DTI WITHIN SIXTY (60) DAYS PRIOR TO START OF BUSINESS OPERATIONS; PROVIDED, THAT ALL EXISTING COMPANIES ENGAGED IN MULTI- LEVEL MARKETING OR NETWORKING SHALL SUBMIT THEIR MLM PLANS WITH THE DTI WITHIN NINETY (90) DAYS FOR THE EFFECTIVITY OF THIS ACT; PROVIDED FURTHER, THAT IN CASE HERE ARE REVISIONS, AMENDMENTS OR MODIFICATIONS IN THE MLM PLANS, COMPANIES SHALL SUBMIT A REPORT TO DTI WITHIN SIXTY (60) DAYS PRIOR TO THE IMPLEMENTATION THEREOF; PROVIDED FINALLY, THAT FAILURE TO COMPLY HEREWITH SHALL BE A GROUND FOR CANCELLATION OF REGISTRATION WITH THE DTI AND THE SEC. THE PROFITS OF A PERSON ARE DERIVED PRIMARILY FROM RECRUITMENT OF OTHER PERSONS INTO A PYRAMID SCHEME OR CHAIN DISTRIBUTION PLAN RATHER THAN FROM SALE OF CONSUMER, PRODUCTS, SERVICES AND CREDIT. SUCH PLAN OR

SCHEME SHALL INCLUDE BUT NOT BE LIMITED TO ONE OR MORE OF THE FOLLOWING ATTRIBUTES: A. REVENUE OR INCOME IS DERIVED MAINLY FROM THE ENTRY FEES OF PARTICIPANTS OF SUCH COMPANIES; B. PARTICIPANTS MUST SPONSOR A FIXED NUMBER OF OTHER PARTICIPANTS IN ORDER TO EARN, EACH OF WHOM MUST IN TURN SPONSOR A FIXED NUMBER OF PARTICIPANTS, AS IN PYRAMID SCHEME COMPENSATING PARTICIPANTS BY BALANCING NUMBER OF RECRUITS RATHER THAN NUMBER OF SALES VOLUME; C. INCOME OF PARTICIPANT IS DEPENDENT PRIMARILY UPON A SLOT OR POSITION WITHIN THE COMPANY AS DETERMINED BY THE TIME, DATE, AND ORDER OF PARTICIPATION; D. PARTICIPANTS ARE NOT ALLOWED TO RETURN MARKETABLE AND USED PRODUCTS FOR REFUND WITHIN A PERIOD OF SIX (6) MONTHS FROM THE TIME OF PURCHASE; E. THERE IS NO FAIR MARKET VALUE FOR THE GOODS RECEIVED; F. PARTICIPANTS ARE ALLOWED TO PURCHASE MULTIPLE SLOTS OR POSITIONS BY PAYING MULTIPLE REGISTRATION FEES; G. MLM COMPANY OPERATES WITHOUT VALID LICENSES, PERMIT OR AUTHORIZATIONS FROM CONCERNED NATIONAL GOVERNMENT AGENCIES OR LOCAL GOVERNMENT UNITS; AND H. MLM COMPANY FAILS TO SUBMIT ITS MARKETING PLAN TO DTI.

Sec. 8. Article 60 of Republic Act No. 7394, as amended, is hereby amended to

read as follows: Article 60. Penalties. - a) Any person who shall violate the provisions of Title HI, Chapter I, shall upon conviction, be subject to a fine of not less than Five Hundred Peses (P500.00) but not more than Ten Thousand Pesos (P10,000.00) or imprisonment of not less than five (5) months but not more than one (1) year or both, upon the discretion of the court.

A.) ANY PERSON WHO SHALL VIOLATE THE PROVISIONS OF TITLE III, CHAPTER I, EXCEPT THOSE EMPLOYING CHAIN DISTRIBUTION PLANS OR PSEUDO-INVESTMENTS UNDER ARTICLE [53] 56, UPON CONVICTION, BE SUBJECT TO A FINE OF NOT LESS THAN TEN THOUSAND PESOS (P10,000) BUT NOTE MORE THAN ONE HUNDRED THOUSAND PESOS (P100,000) OR IMPRISONMENT OF NOT LESS THAN FIVE (5) MONTHS BUT NOT MORE THAN ONE (1) YEAR OR BOTH, UPON THE DISCRETION OF THE COURT. B.) XXX C.) ANY PERSON, NATURAL OR JURIDICAL, ENGAGED IN CHAIN DISTRIBUTION PLANS OR PSEUDO-INVESTMENT SCHEME PROHIBITED UNDER ARTICLE [53] 56, SHALL UPON CONVICTION- C. 1.) BE SUBJECT TO A FINE OF NOT LESS THAT ONE MILLION PESOS (P1,000,000.00) BUT NOT MORE THAN FIVE MILLION PESOS (P5,000,000.00) OR IMPRISONMENT OF NOT LESS THAN TWELVE (12) YEARS BUT NOT MORE THAN TWENTY (20) YEARS OR BOTH, AT THE DISCRETION OF THE COURT. PROVIDED, THAT IF THE VIOLATION IS COMMITTED BY A CORPORATION, ASSOCIATION OR PARTNERSHIP, THE PENALTY OF IMPRISONMENT SHALL BE IMPOSED ON THE MEMBERS OF THE BOARD, PARTNERS, OFFICERS AND THE PERSONS PERSONALLY LIABLE, NOTWITHSTANDING OTHER REMEDIES AVAILABLE TO THE VICTIMS AND OTHER PENALTIES IMPOSED BY EXISTING LAWS. PROVIDED, FURTHER THAT SUCH VIOLATIONS SHALL BE NON-BAILABLE.

C.2) BE ORDERED TO RETURN ANY AND ALL CONSIDERATIONS GIVEN BY THE VICTIMS WITH INTEREST COMPUTED FROM THE TIME PAYMENTS WERE MADE. THE VICTIMS SHALL BE DEEMED PREFERRED CREDITORS AS PROVIDED FOR IN THE NEW CIVIL CODE OF THE PHILIPPINES.

Sec. 9. Article 64 of Republic Act No. 7394, amended, is hereby amended to

read as follows: "Article [64] 67. Fraudulent Practices Relative to Weights and Measures. - The following acts relating to weights and measures are prohibited: "xxx "L. FOR ANY PERSON TO CONCEAL OR DESTROY (1) A FALSE OR COUNTERFEIT SEAL, STICKER, BRAND, STAMP, TAG, CERTIFICATE, LICENSE OR DYE, OR (2) AN ALTERED, TAMPERED, VANDALIZED SCALE, BALANCE, WEIGHT, OR MEASURE TO PREVENT DISCOVERY AND SEIZURE; OR "[E]M. for any person to procure, OR COOPERATE IN, OR PROFIT FROM THE commission of any such offense above mentioned by another. "Instruments officially sealed at some previous time which have remained unaltered and accurate and the seal or tag officially affixed thereto remains intact and in the same position and condition in which it was placed by the official sealer or his duly authorized representative shall, if presented for sealing, be sealed promptly on demand by the official sealer or his authorized representative without penalty except a surcharge fixed by law or regulation."

Sec. 10. Article 76 of Republic Act No. 7394, as amended, is hereby amended

to read as follows:

"Article [76179. Prohibited Act on Labeling and Packaging. - It shall be unlawful for any person, either as principal or agent, engaged in the [labeling or packaging] SALE, DISTRIBUTION, MANUFACTURING of any consumer product, to display, SELL, or distribute, or to cause to be displayed, SOLD or distributed in commerce any consumer product whose package or label does not conform to the provisions of this chapter. CONSUMER PRODUCTS THAT DO NOT COMPLY WITH THE DATE LABEL REQUIREMENT SHALL NOT BE SOLD OR DISTRIBUTED IN THE MARKET ONE (1) YEAR THE ENACTMENT OF THIS ACT. The prohibition in this chapter shall not apply to persons engaged in the business or wholesale or retail distributors of consumer products OR CONSUMER PRODUCTS MANUFACTURED OUTSIDE THE COUNTRY AND DIRECTLY SHIPPED FROM THE MANUFACTURER TO CONSUMER BY MAIL OR OTHER DELIVERY SERVICES except to the extent that such persons: a. are engaged in the packaging or labeling of such products; b. prescribed or specify by any means the manner in which such products are packaged or labeled; or c. having knowledge, refuse to disclose the source of the mislabeled or mispackaged products."

Sec. 11. Article 77 of Republic Act No. 7394, as amended, is hereby amended

to read as follows: "Article [77]80. Minimum Labeling Requirements for Consumer Products. - All consumer products domestically sold whether manufacture locally or imported shall indicate the following in their respective labels of packaging: "XXX g. country of manufacture, if imported; Land] h. if a consumer product is manufacture, refilled or repacked under license from a principal, the label shall so state the fact; AND I. ITS "MANUFACTURING DATE," "EXPIRATION DATE," AND OF

APPLICABLE, THE "BEST BEFORE DATE." THE UNIFORM DATE LABEL MUST BE PRINTED CLEARLY AND LEGIBLY ON THE LABEL IN THE FOLLOWING ORDER: MONTH, DAY, AND YEAR. THE DAY AND THE YEAR MUST BE WRITTEN IN FIGURES, WHILE THE MONTH MUST BE WRITTEN IN FIGURES, WHILE THE MONTH MUST BE WRITTEN IN WORDS. THE TEXT MUST BE IN A SINGLE EASY-TO-READ TYPE STYLE USING UPPER- AND LOWER-CASE LETTERS IN THE STANDARD FORM. THE USE OF "USE-BY," "CONSUME BEFORE," "BEST IF USED BY" AND OTHER SIMILAR PHRASE SHALL NOT BE USED AS DATE LABELS ON THE PACKAGING OF CONSUMER PRODUCTS. FOR PURPOSES OF THIS ACT, "MANUFACTURING DATE" REFERS TO THE DATE WHEN THE PRODUCT WAS PRODUCED OR MADE BY THE MANUFACTURER; "BEST BEFORE DATE" REFERS TO THE DATE WHEN THE QUALITY OF THE PRODUCT BEGINS TO DETERIORATE, BUT STILL ACCEPTABLE FOR CONSUMPTION BEFORE THE EXPIRATION DATE; AND "EXPIRATION DATE" REFERS TO THE DATE STATED ON THE LABEL OF FOOD, DRUG, COSMETIC, OR SIMILAR CONSUMER PRODUCT AFTER THE SAFETY, EFFICACY, QUALITY OR POTENCY MUST HAVE RUN ITS COURSE." "The following may be required by the concerned department in accordance with the rules and regulations they will promulgate under authority of this Act: "xXX."

Sec. 12. Article 84 of Republic Act No. 7394, as amended, is hereby amended

to read as follows: "Article [84] 87. Additional Labeling Requirement for Food. - The following additional labeling requirements shall be imposed by the concerned department for food:

"a) [expiry or] MANUFACTURING DATE, expiration date [where] and WHENEVER applicable, THE BEST BEFORE DATE; "xXX." "Article [86] 89. Labeling of Drugs. - The Generics Act, AND OTHER LAWS AMENDATORY THERETO, shall apply in the labeling of drugs. THE FOOD AND DRUG ADMINISTRATION SHALL ENSURE THAT ALL DRUGS MANUFACTURE AND DISTRIBUTED LOCALLY SHALL HAVE "MANUFACTURING DATE" AND "EXPIRATION DATE" ON THEIR LABELS. THE UNIFORM DATE LABELS REQUIRED MUST BE PRINTED CLEARLY AND LEGIBLY ON THE LABEL IN THE FOLLOWING ORDER: MONTH, DAY AND YEAR. THE DAY AND THE YEAR MUST BE WRITTEN IN FIGURES WHILE THE MONTH MUST BE WRITTEN IN FIGURES WHILE THE MONTH MUST BE WRITTEN IN WORDS. THE TEXT MUST BE IN A SINGLE EASY-TO-READ TYPE STYLE USING UPPER- AND LOWER-CASE LETTERS IN THE STANDARD FORM. FOR PRODUCTS RECONSTITUTED PRIOR TO USE, AND THOSE WHICH CAN BE ADMINISTERED MULTIPLE TIMES, THE LABEL SHALL INCLUDE THE PERIOD OF GUARANTEED SAFETY, EFFICACY, AND QUALITY OF THE RECONSTITUTED PREPARATION AFTER FIRST OPENING AT GIVEN STORAGE CONDITIONS."

Sec. 13. Article 86 of Republic Act No. 7394, as amended, is hereby amended

to read as follows: "Article [86]89. Labeling of Drugs. - The Generics Act, AND OTHER LAWS AMENDATORY THERETO, shall apply in the labeling of drugs. THE FOOD AND DRUG ADMINISTRATION SHALL ENSURE THAT ALL DRUGS MANUFACTURED AND DISTRIBUTED LOCALLY SHALL HAVE "MANUFACTURING DATE" AND "EXPIRATION DATE" ON THEIR LABELS. THE UNIFORM DATE LABELS REQUIRED MUST BE PRINTED CLEARLY AND LEGIBLY ON THE LABEL IN THE FOLLOWING ORDER: MONTH, DAY, AND YEAR. THE DAY AND THE YEAR MUST BE WRITTEN IN WORDS. THE TEXT MUST BE IN A SINGLE-EASY-TO-READ TYPE

STYLE USING UPPER- AND LOWER- CASE LETTERS IN THE STANDARD FORM. FOR PRODUCTS RECONSTITUTED PRIOR TO USE, AND THOSE WHICH CAN BE ADMINISTERED MULTIPLE TIMES, THE LABEL SHALL INCLUDE THE PERIOD OF GUARANTEED SAFETY, EFFICACY, AND QUALITY OF THE RECONSTITUTED PREPARATION AFTER FIRST OPERNING AT GIVEN STORAGE CONDITIONS."

Sec. 14. Article 87 of Republic Act No. 7394, as amended, is hereby amended

to read as follows: "Article [87/90. Additional Labeling Requirements for Cosmetics. - The following additional requirements may be required for cosmetics: "a) MANUFACTURING DATE AND expiry or expiration date; "xxx."

Sec. 15. A new Article 93 is hereby inserted after the renumbered Article 92 of

Republic Act No. 7394, as amended, and the subsequent articles shall be renumbered accordingly: "ARTICLE 93. ENGLISH OR FILIPINO TRANSLATIONS OF PRODUCTS LABELS WRITTEN IN FOREIGN CHARACTERS OR LANGUAGERS.- CONSUMER PRODUCTS WITH PRODUCT LABELS WRITTEN IN FOREIGN CHARACTERS OR LANGUAGE SHALL BE ALLOWED ENTRY INTO THE COUNTRY AND INTRODUCED INTO COMMERCE ONLY IF THEY HAVE A CORRESPONDING ENGLISH OR FILIPINO TRANSLATION TO ENABLE THE AUTHORITIES TO DETERMINE WHETHER THE PRODUCT HAS COMPLIED WITH ALL THE OTHER LABELING REQUIREMENTS AS WELL AS PROVIDE THE CONSUMERS PROPER GUIDANCE ON THE CONTENTS AND ORIGIN OF THE PRODUCT."

Sec. 16. A new Article 94 is hereby inserted after the new Article 93 of Republic

Act No. 7394, as amended, and the subsequent articles shall be renumbered accordingly:

"ARTICLE 94, OFFICIAL SOURCES OF INFORMATION FOR IMPORTED CONSUMER PRODUCTS. - IMPORT DATA FROM THE BUREAU OF CUSTOMS AND BUREAU OF IMPORT SERVICES OF THE DEPARTMENT OF TRADE AND INDUSTRY SHALL BE RECOGNIZED AS OFFICIAL SOURCES OF INFORMATION TO VALIDATE THE FOLLOWING INFORMATION RELATIVE TO A PARTICULAR IMPORTED CONSUMER PRODUCT: "1. COUNTRY OF MANUFACTURE; "2. NAME AND ADDRESS OF MANUFACTURER OR EXPORTER; "3. NAME AND ADDRESS OF IMPORTER OR CONSIGNEE; "4. VALUE AND VOLUME OF SHIPMENT; "5. DATE OF ARRIVAL; AND "6. OTHER INFORMATION RELEVANT TO THE SHIPMENT IN QUESTION."

Sec. 17. Article 116 of Republic Act No. 7394, as amended, is hereby amended

to read as follows: "Article [116] 121. Permit to Conduct Promotion. - No person shall conduct any sales [eampaigns, including beauty contest, national in character, sponsored and promoted by manufacturing enterprises] PROMOTION OF PRODUCTS AND SERVICES OR THE SALE THEREOF, THROUGH AND WITH THE USE OF ALL FORMS OF MEDIA, INFORMATION AND COMMUNICATIONS TECHNOLOGIES, INCLUDING BEAUTY CONTESTS THAT ARE NATIONAL IN CHARACTER, SPONSORED AND PROMOTED BY PRODUCERS, MANUFACTURERS, DISTRIBUTORS, SUPPLIERS, IMPORTERS, RETAILERS OR THEIR AGENTS without first securing a permit from the concerned department at least [thirty (30) calendar] FIFTEEN (15) days prior to the commencement thereof. [Unless an objection or denial is received within fifteen (15) days from filing of the application, the same shall be deemed approved and the promotion campaign er activity may be conducted]: Provided, That any sales promotion campaign using medical prescriptions or any l part thereof or attachment [thereto for raffles or a promise of reward] shall not be allowed, nor a permit be issued thereof."

Sec. 18. Article 169 on "Prescription"

", of Republic Act No. 7394, as amended is hereby amended to read: ART. 169. PRESCRIPTION. - ALL ACTIONS OR CLAIMS ACCRUING UNDER THE PROVISIONS OF THIS ACT AND THE RULES AND REGULATIONS ISSUED PURSUANT THERETO SHALL PRESCRIBE WITHIN TWO (2) YEARS FROM THE TIME THE CONSUMER TRANSACTION WAS CONSUMMATED OR THE DECEPTIVE OR UNFAIR AND UNCONSCIONABLE ACT PRACTICE WAS COMMITTED AND IN CASE OF HIDDEN DEFECTS, FROM THE DISCOVERY THEREOF, EXCEPT FOR VIOLATION OF ARTICLE 53 [56] ON "CHAIN DISTRIBUTOR PLANS" OR "PSEUDO-INVESTMENTS", WHICH SHALL PRESCRIBE WITHIN FIVE (5) YEARS FROM THE TIME ON THE CHAIN DISTRIBUTION PLANS OR PSEUDO-INVESTMENT SCHEME WAS EMPLOYED OR UPON DISCOVERY THEREOF.

Sec. 19. Implementing Rules and Regulations. - Within 90 days after the

effectivity of this Act, the DTI, in coordination with the implementing agencies under 18 this Act, other relevant government agencies and stakeholders, promulgate the rules and regulations to effectively implement the provisions of this Act.

Sec. 18. Separability Clause. - If any provision of this Act is declared

unconstitutional, the remainder thereof not otherwise affected shall remain in full force and effect.

Sec. 19. Repealing Clause.-All laws, presidential decrees, executive orders,

letters of instruction, proclamations or administrative regulations that are inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.

Sec. 20. Effectivity. - This Act shall take effect after fifteen (15) days following

its publication in the Official Gazette, or in a newspaper of general circulation. Approved,..