The provision of consumer welfare and protection services is consistent with the policy of the State to protect the consumers from trade malpractices and from substandard or hazardous products. (Clause 7, E.O. 366, quoting Sec. 1, Chap. 1, Title X, Book IV of E.O. 292)
Consumer Protection is a form of government regulation to protect the interest of the consumers, particularly where safety and public health is an issue. It is linked to the idea of consumer rights and to the formation of consumer organizations which help consumers make better choices in the market place.
The consumer has the right to be protected against dishonest or misleading advertising and labelling, to be given the facts and information needed to make an informed choice and to be protected against the marketing of goods or provision of services that are hazardous to health and life.
However, the consumer also has the concomitant responsibility to be more alert and questioning about the use, price and quality of goods and services; to assert his/herself and act to ensure that he/she get a fair deal; to be aware of the impact of our consumption on other citizens, especially the disadvantaged group; and to understand the environmental consequences of our consumption and recognize our individual and social responsibility to conserve natural resources and protect the earth for future generation.
Consumer interests can also be protected by promoting competition in the market through the conduct of regular monitoring and enforcement of trade industry/fair trade laws to safeguard consumers against hazardous products and trade malpractices, and level the playing field among businesses.
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Monitoring Activities
Post Market Surveillance of Technical Regulations
In a market economy, the businesses are left to innovate and compete on the basis of quality of their products and services. Competition in the market leads to new suppliers coming in, offering ever decreasing prices. This is especially important for free movement of goods in the market. Further, the product life-cycle normally results in redistribution of supplies between competitors and across geographical areas.
Amidst these business activities, the consumers cannot be expected to have the same level of technical knowledge as the manufacturer, and they have to buy on the basis of trust. Consumers are many times not aware of other concerns connected with the products they buy.
A regulator shall take care of these concerns for public’s interest.
- To assists consumers in evaluating products
- To protect the public against the marketing of goods or the provision of services that are hazardous to health and life.
The consumer has the right to be protected against dishonest or misleading advertising and labelling, and the right to be given the facts and information needed to make an informed choice.
This is enshrined on R.A. 7394 and R.A. 4109, and the implementing guidelines of these laws.
The FTEB and the DTI-Regional and Provincial Offices execute this mandate through the conduct of monitoring and enforcement activities. Enforcement in the sense of safeguarding consumer protection and levelling the playing field among businesses, by ensuring fair enforcement of fair trade laws. (Source: DBM notation, DTI RatPlan, October 2013)
FAQs
- Compliance assessment or the practice of monitoring the safety of a product after it has been released on the market.
- Consumers require a level of quality that equal their perception of fitness for purpose and safety. Often, consumers buy on the basis of price, unaware of the other important intrinsic features of the product. There are certain products in the market to which consumers do not have adequate knowledge of. That’s why there would be malpractices or defects that are obvious or known only to technical regulators.
Under the Consumer Act of the Philippines, it is the duty of the State to assist the consumer in evaluating the quality, including safety, performance and comparative utility of consumer products, and to assure the public of the consistency of standardized products.
It is a document which lays down product characteristics or their related processes and production method. It includes packaging, marking or labelling requirements as they apply to a product, process or production method, including the applicable administrative provisions, with which compliance is mandatory. (WTO-TBT Agreement)
Only consumer products enumerated in the list covered under the mandatory certification schemes of DTI-Bureau of Philippine Standards, which can be accessed at https://bps.dti.gov.ph/product-certification/list-of-products-under-mandatory-certification
- Through markings and labels affixed to a product, consumers are informed and guided that the products they are buying are of good quality, reliable, and safe for use.
- A way for the manufacturers to communicate and evidence compliance with statutory and regulatory requirements.
Laws and Statutes
Implementing Rules and Regulations/Guidelines
Defining the Responsibilities and Liabilities of Manufacturers, Importers, Traders, Wholesalers, Distributors, Retailers, Service Providers and or their Agents, with regard to Products/Services covered by Philippine Standards (PS) Certification Mark Scheme and Prescribing Penalties for Violation thereof of the Bureau of Product Standards (BPS)
For the complete list of technical regulations, please visit http://www.bps.dti.gov.ph/index.php/about-us/laws-and-mandates
Price and Supply Monitoring of Basic Necessities and Prime Commodities
It is the policy of the State, through the Republic Act No. 7581, otherwise known as Price Act as amended by R.A. 10623, to ensure the availability of BNPCs at reasonable prices at all times without denying legitimate business a fair return on investment; and to also provide effective and efficient protection to consumers against hoarding, profiteering, and cartels with respect to the supply, distribution, marketing and pricing of said goods, especially during periods of calamity, emergency, widespread illegal price manipulation and other similar situations.
DTI constitutes its own monitoring task force nationwide that includes the DTI-Fair Trade Enforcement Bureau to conduct weekly Price and Supply Monitoring of BNPCs in groceries, supermarkets, flour retailers and hardware stores.
The DTI-FTEB conducts weekly monitoring to check the price and supply of basic necessities such as, but not limited to, canned sardines, processed milk, powdered milk, coffee, bread, instant noodles, salt, detergent soap, bottled water, and candles; and prime commodities such as, but not limited to, canned meat, vinegar, patis, soy sauce, toilet soap, batteries, flour, cement, hollow blocks, construction nails, light bulbs, electrical supplies and steel wires. For the complete list of BNPC, please click the link: https://www.dti.gov.ph/konsyumer/e-presyo/Â
To ensure the reasonableness of prices of BNPCs, the DTI may, whenever necessary, issue Suggested Retail Price (SRP) for certain BNPCs for the information and guidance of concerned sectors including consumers.
In 2015, the DTI launched e-Presyo, an Online Price Monitoring System (OPMS) that serves as a repository of all prevailing prices of BNPCs that are being monitored by the DTI nationwide. It allows the consumers to check the prices and/or price freeze of BNPCs and it serves as a buying guide for the consumers.
FAQs
- Basic necessities – goods vital to the needs of consumers for their sustenance and existence in times of any of the cases provided under Section 6 or 7 of Republic Act No. 10623 (RA10623)
- Prime Commodities – goods not considered as basic necessities but are essential to consumers in times of any of the cases provided under Section 7 of Republic Act No. 10623 (RA10623)
To see the complete list of BNPCs, please click the link below: https://www.dti.gov.ph/konsyumer/e-presyo/
DTI regularly conducts price monitoring on a weekly basis to identify and investigate causes of market and price irregularities; determine price trends; provide basis for establishing SRP and price ceiling; and develop database system on prices.
Consumers may see the latest SRP of BNPCs through this link: www.dti.gov.ph/konsyumer/latest-srps-basic-necessities-prime-commodities
A Letter of Inquiry will be issued to the supermarket/grocery to submit an explanation to DTI within prescribed time.
- The Department of Agriculture, with reference to agricultural crops, fish and other marine products, fresh meat, fresh poultry and dairy products, fertilizers, and other farm inputs;
- The Department of Health, with reference to drugs;
- The Department of Environment and Natural Resources, with reference to wood and other forest products; and
- The Department of Energy, with reference to LPG and kerosene
Laws and Statutes
Amendment of Certain Provisions in the Price Act
Implementing Rules and Regulations/Guidelines
Guidelines in the Implementation of Suggested Retail Price (SRP) of Basic Necessities and Prime Commodities under the Jurisdiction of the Department of Trade and Industry (DTI)
Amendments to the DTI, DA, DOH, DENR Joint Administrative Order No. 1, Series of 1993 (JAO 1, s. 1993) Otherwise Known as the Implementing Rules and Regulations of Republic Act No. 7581 (Price Act)
Rules and Regulations Implementing the Provisions of Chapter III Title V of the Republic Act No. 7394 otherwise known as the Consumer Act of the Philippines
Surveillance and Monitoring of Other Trade and Industry/Fair Trade Laws
The DTI protects the consumers against unethical business practices through continued market visibility to heighten the consumers’ vigilance for quality and safe products and services.
The DTI-FTEB observes, checks and keeps track of the goods, products, operations or services of business establishments to ensure conformance to and compliance with the existing DTI rules and regulations. Among the business establishments monitored by DTI-FTEB are hardware stores, public/private markets, service and repair enterprises, private emission testing centers, sea freight forwarders, groceries and supermarkets.
FAQs
- It is the policy of the State to protect consumers from trade malpractices and from substandard or hazardous practices.
- The Department of Trade and Industry is the primary coordinative, promotive, facilitative and regulatory arm of the Executive Branch of government in the area of trade, industry and investments.
- RA 7394 (Consumer Act of the Philippines)
- RA 7581 (Price Act)
- PD 1572 (Regulation of Service and Repair Shops) as amended by RA 7394
- PSB AO 6 s. 2005 (Regulation of Sea-Freight Forwarders)
- Act No. 3883 (Regulation of Business Name)
- RA 71 (Price Tag Law) as amended by RA 7394
- The Implementing Rules and Regulations of the aforementioned Laws and Issuances
- Other relevant laws
Prior to the conduct of surveillance and monitoring operation, it is the duty of DTI personnel to present their Department-issued identification cards and Authority to Conduct/Memorandum Order to the owner/representative of the establishment.
The business establishment will be issued a Show Cause Order (SCO) or a directive to explain why no action shall be taken against them.
Laws and Statutes
An Act to Regulate the Use in Business Transactions of Names other than True Names, Prescribing the duties of the Director of the Bureau of Commerce and Industry* in its Enforcement, Providing penalties for violations thereof, and for Other Purposes.
Implementing Rules and Regulations/Guidelines
Guidelines for Online Businesses Reiterating the Laws and Regulations Applicable to Online Businesses and Consumers
Guidelines for Payment Options on the Purchase of Consumer Products and Services
Rules and Regulations for Consumer Protection in a Transaction Covered by the Consumer Act of the Philippines through Electronic Means under the E-Commerce Act (R.A. 8792)
Revised Rules on Freight Forwarding
Rules and Regulations Implementing R.A. No. 7394
Enforcement Activities
Pursuant to DTI Department Order No. 18-122 Series of 2018, enforcement is an act of compelling observance or compliance with laws, rules and regulations including but not limited to undertaking submitted in relation to an application filed or to a written directive issued by the DTI.
Consistent with the basic policy of the State, to protect the interests of the consumer, promote his general welfare and to establish standards of conduct for business and industry, DTI-FTEB may apply any or a combination of the following modes:
- On the spot Monitoring
- Report-Based/Complaint-Based Surveillance
- Test-buy operation
- Seizure operation
Firms found to be non-compliant with Trade and Industry/Fair Trade Laws are issued Notices of Violation (NOVs).
After the lapse of the period within which to explain as prescribed in the NOV, the Prosecution Unit will determine whether or not prima facie case exists to justify the filing of a Formal Charge.
Filing of a Formal Charge by the Prosecution Unit starts the adjudication process. For more information on the Adjudication Process for Formal Charge, please visit: www.fairtrade.dti.gov.ph/services/complaints-handling/#formalcharges
FAQs
When noncompliances are found during the course of the Bureau’s operations, the owners are notified through the issuance of a NOV and allegedly violative products are confiscated, if applicable.
A notice to a person or establishment that certain law or regulations implemented by the DTI may have been violated, with a directive to appear or submit written explanation why no legal action should be taken.
A written statement of ultimate facts, signed and sworn to by the fully authorized officer or representative of the initiating office or agency, filed by any office or agency of the DTI, charging any person (natural or juridical) with any violation of the Consumer Act, Price Act, or any Other Trade and Industry Laws or Regulations.
Laws and Statutes
Instituting the Simplified and Uniform Rules of Procedure for Administrative Cases Filed with the Department of Trade and Industry (DTI) for Violations of the Consumer Act of the Philippines and Other Trade and Industry Laws
