Republic Act No. 7394

ARTICLE 148. National Consumer Affairs Council - To improve the management, coordination and effectiveness of consumer programs, a National Consumer Affairs Council is hereby created, here in after referred to as the "Council".

ARTICLE 149. Composition - The Council shall be composed of representatives from the following government agencies and non-government agencies:

a) Department of Trade and Industry

b) Department of Education, Culture and Sports;

c) Department of Health;

d) Department of Agriculture;

e) four (4) representatives from consumer organization of nationwide based to be chosen by the President from among the nominees submitted by the various consumer groups in the Philippines;

f) two (2) representatives from business/industry sector to be chosen by the President from among the nominees submitted by the various business organizations.

ARTICLE 150. Chairman, Functions - The Council shall be headed and presided by a Chairman who shall be elected by the members from among them selves. He shall be establish with the concurrence of the council, the policies, procedures and standards to govern the implementation and interpretation of the functions and duties of the council.

ARTICLE 151. Per Diems of Members -The member of the council shall be entitled to an allowance of Five hundred pesos (P500.00) per meeting actually attended but not more than Two Thousand pesos (P 2,000.00) a month.

ARTICLE 152. The Secretariat -The council shall appoint an Executive Director who shall assist the chairman the chairman and act as Secretary of the Council. The Trade and Industry shall provide the Secretariat which shall assist the Council in the effective performance of its functions.

CHAPTER II
POWERS AND FUNCTIONS

ARTICLE 153. Powers And Functions- The Council shall have the following powers and functions:

a) to rationalize and coordinate the functions of the agencies charged with consumer programs and enforcement of consumer related laws to the end that an effective, coordinated and integrated system of consumer protection, research and implementation and enforcement of such laws shall be achieve ;

b) to recommend new policies and legislation or amendments to existing ones;

c) to monitor and evaluate implementation of consumer programs and projects and to take appropriate steps to ensure that concerned agencies take appropriate steps to comply with the establish priorities, standards and guidelines.

d) to seek the assistance of government instrumentalities in the form of augmenting the need for personnel, facilities and other resources;

e) to undertake a continuing education and information campaign to provide the consumer with, among others:

1) facts about consumer products and services;

2) consumer rights and the mechanism for redress available to him;

3) information on new concepts and developments on consumer protection; and

4) general knowledge and awareness necessary for a critical and better judgement on consumption;

5) such other matters of importance to the consumer's general well-being .

ARTICLE 154. Consumer Education in Schools.- The department of Education, Culture, and Sports, with the cooperation and advice of the Council, shall develop and adopt a consumer education program which shall be integrated into existing curricula of all public and private schools from primary to levels.

A continuing consumer education program for out-of -school youth and adults shall likewise be developed and undertaken.

The consumer education program shall include information regarding:

a) The consumer as a responsible member of society and his responsibility to develop:

1) critical awareness which is the responsibility to be alert and questioning about the use of the price and quality of goods he uses;

2) assertiveness which is responsibility to assert himself and act so he is assured of a fair deal, aware that for as long as he remains to be passive consumer he will continue to be exploited;

3) social concern which is the responsibility to be aware of the impact of his consumption on other citizens, especially the advantaged; and

4) environmental awareness which is the responsibility to understand the environmental consequences of his consumption, recognizing his individual and social responsibility to conserve natural resources for future generations;

b) consumer's rights; and

c) practical problems the consumer faces in daily life.

ARTICLE 155. Concerned Departments, Powers and Duties Under Existing Laws -The concerned departments shall continue to exercise the powers and duties provided to them under existing laws, unless repealed or modified accordingly.

ARTICLE 156. Consumer Participation - The department shall establish procedures for meaningful participation by consumers or consumer organizations in the development and review of department rules, policies, and programs. Such procedures shall include provision for a forum, where consumer can express their concerns and recommendations to decision makers. The departments shall exert efforts to inform consumers of pending proceedings, where their participation is important.

ARTICLE 157. Advisory Services - The departments shall render advisory services upon request. Technical and legal assistance shall be made available to consumers and their organizations and to the general public.

ARTICLE 158. Consumer Program Reforms - Each concerned Department shall formulate and develop a consumer program consonant with the objectives of its charter or the applicable laws which program shall embody the standards set forth in Sections 156 and 157 of this Act. Copies of these program shall be furnished the council. The Executive Director shall, among his other functions, monitor and coordinate the implementation by the concerned agencies of their respective consumer programs.

After the closed of the fiscal year, the Council shall submit to Congress and the Office of the President a full report on the progress of the implementation of consumer programs.

CHAPTER III
CONSUMER COMPLAINTS

ARTICLE 159. Consumer Complaints - The concerned department may commenced an investigation upon petition or upon letters complaint from any consumer: Provided, That upon a finding by the department of a prima facie violation of any provisions of this Act or any rule or regulation promulgated under its authority; it may motu propio or upon verified complaint commence formal administrative action against any person who appears responsible therefor. The department shall establish procedures for systematically logging in, investigating and responding to consumer complaints into the development of consumer policies, rules and regulations, assuring as far as practicable simple and easy access on the part of the consumer to seek redress for his grievances.

ARTICLE 160. Consumer Arbitration Officers - The concerned Department Secretaries shall appoint as many qualified consumer arbitration officers as may be necessary for the effective and efficient protection of consumer rights, Provided, however that there shall be not more than ten (10) consumer arbitration officers per province, including the National Capital Region.

ARTICLE 161. Consumer Arbitration Officers: Qualifications - The consumer Arbitration Officers must be college graduate with at least three (3) years experience in the field of consumer protection and shall be a good moral character.

ARTICLE 162. Arbitration Officers; Jurisdiction - The Consumer Arbitration officers shall have original and exclusive jurisdiction to mediate, conciliate, hear and adjudicate all consumer complaints, Provided, however That this does not preclude the parties from pursuing the proper judicial action.

ARTICLE 163. Investigation Procedure -

a) The consumer arbitration officer shall conduct hearings on any complaint receive by him or referred by the Council.

b) Parties to the case shall be entitled to notice of the hearing, shall be informed of the date, time and place of the same. A copy of the complaint shall be attached to the noticed.

c) The department shall afford all interested parties the opportunity to submit a statement of facts, arguments, offers of settlement or proposals of adjustments.

d) The consumer arbitration officer shall first and foremost ensure that the contending parties come to a settlement of the case.

e) In the event that a settlement has not been effected, the Mediation officer may now proceed to formally investigate, hear and decide the case.

f) The Consumer arbitration officer may summon witnesses, administer oaths and affirmations, issues subpoena and subpoena duces tecum, rule upon offers of proof and receive relevant evidence, take or cause deposition to be taken whenever the ends of justice would be served thereby, regulate the course of the hearing, rule on any procedural request or similar matter and decide the complaint.

In hearing the complaint, the mediation officer shall use every and all reasonable means to ascertain the facts in each complaints speedily and objectively in suits before courts. The complaint shall be decided within fifteen (15) days from the time the investigation was terminated.

ARTICLE 164. Sanctions - After investigation, any of the following administrative penalties may be imposed even if not prayed for in the complaint

a) The issuance of a cease and desist order, Provided, however, That such order shall require him to submit a report of compliance therewith within may include any or all of the following terms and conditions:

b) The acceptance of a voluntary assurance of compliance or discontinuance from the respondent which may include any or all of the following terms and regulations;

1) an assurance to comply with the provisions of this Act and its implementing rules and regulations ;

2) an assurance to refrain from engaging in unlawfull acts and practices or unfair or unethical trade practices subject of the formal investigation ;

3) an assurance to comply with the terms and conditions specified in the consumer transaction subject of the complaint.

4) an assurance to reimburse

5) an assurance to reimburse the complaint, including expenses in making or pursuing the complaint, if any and to file a bond to guarantee compliance therewith

a) restitution or rescission of the contract without damages;

b) condemnation and seizure of the consumer found to be hazardous to health and safety unless the respondent files a bond toanswer for any damages or injury that may arise from the continued use of the product ;

c) the imposition of administrative fines in such amount as deemed reasonable by the Secretary, which shall in no case be less than Five hundred pesos (P 500,00) nor more than Three hundred thousand pesos (P300,000,00) depending on the gravity of the offence, and an additional fine of not more than One thousand pesos (P1,000,00) or reach each day of continuing violation.

ARTICLE 165. Appeal from Orders - Any order, not interlocutory, of the Consumer arbitration officer, becomes final and executory unless appealed to the Department Secretary concerned within fifteen (15) days from receipt of such order. An appeal may be entertained only on any of the following grounds:

a. grave abuse of discretion;

b. the order in excess of the jurisdiction or authority of the consumer arbitration officer;

c. the order is not supported by the evidence or three is serious error in the findings of facts.

ARTICLE 166. Decision on Appeal - The Secretary shall decide the appeal within thirty (30) days from receipt thereof. The decision becomes final after fifteen (15) days from receipt thereof unless a petition for certiorari is filled with the proper court.

TITLE VI
TRANSITORY AND FINAL PROVISIONS

ARTICLE 167. Relation of the Act to Other Rights - The provisions of this Act shall notwithstanding any agreement to the contrary but shall not restrict, limit or derogate from any other rights or remedies of a consumer under any other law.

ARTICLE 168. Application of Laws Enacted Prior to the Act - All or claims accruing prior to the effectivity of this Act shall be determined in accordance with the acts; laws decrees and regulations in force at the time of the accrual.

ARTICLE 169. Prescription - All actions or claim 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 or practice was committed and in case of hidden defects, from discovery thereof.

ARTICLE 170. Repealing Clause - All laws, executive orders, rules and regulations or parts thereof which are inconsistent with this Act are hereby repealed or amended accordingly.

ARTICLE 171. Appropriations - For the initial operating expenses of the National Consumer Affairs Council, the sum of Two million pesos (P2,000,00) is hereby appropriated out of funds of the National Treasury not otherwise appropriated out of funds such sums as may be necessary to carry out its purpose shall be included in the General Appropriations Act.

ARTICLE 172. Separability Clause - If for any reason any article of provision of this Act or any portion thereof or the application of such Article, provision or portion thereof to any person, group or circumstance is declared invalid or unconstitutional, the remainder of this Act shall not be affected by such decision.

ARTICLE 173. Effectivity - This Act shall take effect thirty (30) days from the date of its publication in the Official Gazette.

Approved: April 13, 1992