Republic Act No. 7394, the Consumer Act of the Philippines, establishes consumer rights to safety, information, and redress — and empowers the DTI to resolve consumer complaints and impose product liability.
Republic Act No. 7394 (Consumer Act) is the primary consumer protection statute in the Philippines. It recognises consumers' fundamental rights: the right to safety (protection against hazardous products), the right to information (accurate labelling and advertising), the right to choose (access to a variety of products at competitive prices), the right to representation, the right to redress (fair settlement of legitimate complaints), and the right to consumer education. The Act covers product liability, warranties, and deceptive, unfair, and unconscionable sales acts. The Department of Trade and Industry (DTI) is the primary enforcement agency for consumer complaints involving trade and commerce. Consumers can file complaints at any DTI provincial, city, or district office, or online at the DTI website. The Fair Trade Enforcement Bureau (FTEB) handles formal complaints. The DTI can order refunds, replacement, repair, or rescission of contracts, and can impose fines and refer cases for prosecution. Product liability rules under the Consumer Act hold manufacturers, processors, importers, and sellers liable for injuries caused by defective products, even without proof of negligence. For defective goods under warranty, consumers can demand repair, replacement, or a refund within the warranty period.
A consumer in Manila buys a brand-new electric fan that causes a fire due to a manufacturing defect. Under the Consumer Act, the manufacturer is strictly liable for the damage. The consumer files a complaint with the DTI, which orders the manufacturer to pay for the damage caused and issues a product recall advisory.
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