rights and responsibilities as consumers
The Department of Trade and Industry (DTI) urges Filipino consumers to always assert their rights and
practice their responsibilities at all times, especially amidst the pandemic where transactions are mostly
done online.
As consumers, we have eight (8) basic rights and five (8) responsibilities. These are the rights to basic
needs; safety; information; choice; redress; representation; redress; consumer education, and a healthy
environment. The five (5) responsibilities are critical awareness; action; social concern; environmental
awareness; and solidarity.
The DTI through its Consumer Policy and Advocacy Bureau (CPAB) has advocacy initiatives and programs
to strengthen consumer awareness on these rights and responsibilities and give access to information
on various consumer-related laws. One of these is the conduct of Consumer Care Webinar Series, an
online assembly that aims to educate the public on laws and policies that are beneficial to them.
The Department reminds consumers to stay vigilant before making a purchase. Consumers have the
right to choose the products that they need. But before purchase, consumers have the right to
information about these products. Customers engaging in digital transactions but purchased defective
products have the right to redress and are entitled to the 3Rs – repair, replace, and refund – from where
he/she bought the product.
As the country celebrates the World Consumer Rights Day on 15 March with the theme “Tackling Plastic
Pollution”, the DTI emphasizes that one of the basic rights of the consumer is the right to a healthy
environment where everyone shall have the opportunity to live and work in areas that are not
threatening to their health and life.
Correspondingly, one of the consumer responsibilities is environmental awareness. As buyers, we must
ensure that our choice of products do not harm the environment. Consumers are expected to segregate
their wastes, conserve water and electricity, and lessen the use of products that have environmental
impacts. The DTI encourages the public to participate in the Consumer Youth e-Forum on 19 March
2021, Friday, and their weekly webinars that will tackle topics on recycling and sustainability.
DTI Consumer Protection Group Undersecretary Ruth B. Castelo emphasizes, “The Department urges
everyone, as consumers, to practice the 7Rs: Rethink, Refuse, Reduce, Reuse, Recycle, Repair, and
Replace in their homes, schools, and offices.”
consumers navigating the new normal due to the COVID-19 pandemic
The effects of Coronavirus, and the behaviour changes we’ve seen as a result, will likely change the
meaning of “normal” for both businesses and their customers. As we begin to see a faint flash of light at
the end of what has felt like a very long tunnel, it’s natural to ask “What next?”
As businesses now begin to transition away from reactive states, and back into productive ones, the way
in which they operate and deliver products or services may be entirely different moving forward. The
COVID-19 pandemic has changed our attitudes, behaviours, and experiences - as customers, employees,
and humans (2). With the changes in buying behaviours of consumers, companies have been forced to
move quickly. As the dust settles, businesses now have the opportunity to pivot to digital commerce to
capture new marketplaces and deliver products and services to new audiences (2).
So, what are some of the changes we’re likely to see in a post-COVID world? And what can your business
do to adapt to this new landscape?
Organisations will develop trust-based cultures with their employees
Michael Beer of Harvard Business School believes that the challenges of COVID-19 have created an
opportunity to improve company cultures (5). After being forced to adapt to working from home
policies, senior management within organisations were presented with the opportunity to either
improve trust within their team, or to potentially damage it (5). As employees adapted to the demands
of working from home, home schooling their children, and remaining productive in an isolated
environment, their ability to succeed had a direct impact on the leadership and transparency of senior
management. “When managers create an environment of physiological safety, employees feel
welcomed to speak up, bring new ideas to the table, and address their concerns”, says Amy Edmondson
of Harvard Business School. Organisations that can shift from top-down decision making to empowering
teams to be guided by purpose, data, and technology, will create a more resilient and agile workplace
(2).
Remote working will become more strategic
“In my research, productivity has improved in remote working settings. However, the businesses which
do it well place a high priority on processes for socialising, so no one team member falls through the
cracks”, says Prithwiraj (Raj) Choudhurt of Harvard Business School. There are some fantastic tools that
are available right now which can improve team processes, productivity and communication for
collaborating while working remotely. These tools include Slack, Zoom, and GSuite, and they will remain
helpful for organisations long after the virus has gone (5). These tools can give employees the flexibility
of working productively at home, and we may see an increase in the number of employees who wish to
continue these current arrangements into the future. Companies which have the right incentives and
processes in place may also see a reduction in day to day operating expenses (5)
handling consumer complaints and jurisdiction
Under Republic Act No. 7394 otherwise known as the Consumer Act of the Philippines, it is the 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. Accordingly, Article 159 of the Consumer Act and
Sections 2 and 18 of Executive Order No. 913, mandates DTI to protect the rights of consumers by
providing a fair, timely, and professional response to complaints for violations of R.A. 7394 and other
Trade and Industry/Fair Trade Laws.
Consumer complaints filed with DTI may cover any, but not limited to the following:
Liability for Product and Services (i.e. Defective or Imperfect Products/Services)
Deceptive Sales Acts/Practices
Consumer Product Quality and Safety
Violation for printing “No Return. No Exchange” in the receipts
Chain Distribution Plans or Pyramid Sales Schemes
Consumer Product and Service Warranties
Labeling and Fair Packaging
Misleading Advertisement and Fraudulent Sales Promotion Practices
Regulation of Repair and Service Firms
Philippine Lemon Law
Complainants may opt to file a complaint through any of the following modes:
Online complaints may be filed by clicking the Consumer Complaints button.
Snail mail complaints may be filed through courier or registered mail.
Walk-in complaints, during regular business hours, Monday through Friday, at 8:00am-5:00pm.
Where to file:
For National Capital Region: DTI-FTEB
Office Address: UPRC Building 315 Sen. Gil J. Puyat Ave., Makati City, Philippines
For DTI Regional/Provincial Offices:
Please check the DTI Regional Operations Group (ROG) Directory through this link
[Link]/contact
Mediation is an intervention by which DTI, through its appointed or designated Mediation Officers,
facilitates communication and negotiation between the parties, and assists them in reaching a voluntary
agreement regarding a dispute.
Mediation is mandatory in all consumer complaints involving violation of the Consumer Act of the
Philippines and Other Fair Trade Laws. It is a condition precedent for the filing of formal complaints
for adjudication under Rule IV Department Administrative Order No. 20-02 Series of 2020.
Mediation Process
Receive Complaint
Evaluate Complaint
Issue Notice of Mediation
Conduct Mediation
Mediation may result in either an amicable settlement between parties or failure of mediation leading
to the issuance of a Certificate to File Action (CFA) by the DTI Mediation Officer. If CFA is issued, the
complainant may proceed to file a formal complaint to the proper office of the DTI for adjudication
purposes.
Checklist of Requirements
Accomplished Initial Complaint Form
Any proof of transaction (i.e. official receipt, delivery receipt, invoice, job order)
Other pieces of evidence to support claim
practical problems the consumer faces in daily life
Common consumer issues
Faulty and unsafe products. What to do when something doesn't work, breaks easily, is unsafe or
doesn't do what…
Refund, replacement, repair. ...
Repair damage after normal use. ...
Shop breakages. ...
Poor quality or incomplete work. ...
Delivery issues. ...
Overcharging. ...
Misleading prices or advertising.
fair trade laws
R.A. No. 7394 or the Consumer Act of the Philippines advances the protection against deceptive, unfair
and unconscionable sales acts and practices as well as promotes the provision of information and
education to facilitate sound choice and the proper exercise of rights by the consumer.
Principles of Fair Trade
Create Opportunities for Economically Disadvantaged Producers. ...
Transparency and Accountability. ...
Fair Trading Practices. ...
Payment of a Fair Price. ...
Ensuring no Child Labour and Forced Labour. ...
Commitment to Non-Discrimination, Gender Equality, Freedom of Association. ...
Ensuring Good Working Conditions.
Bananas, coffee, chocolate, tea, flowers, sugar - these are all items we often take for granted and are all
examples of Fairtrade products. But did you know that the farmers of these items didn't always get paid
a fair deal for their efforts?
7394, or the Consumer Act of the Philippines, protect consumers from trade malpractices, and specifies
the rights of consumers and the responsibilities of sellers, producers, retailers, distributors, and
manufacturers.
In response to the policy of the state to protect the interests of the consumer, promote the general
welfare, and establish standards of business and industry, the government enacted various laws that
regulatory bodies like the DTI shall implement.
Fair Trade Principles
Long-Term Direct Trading Relationships.
Payment of Fair Prices.
No Child, Forced or Otherwise Exploited Labor.
Workplace Non-Discrimination, Gender Equity, and Freedom of Association.
Democratic & Transparent Organizations.
Safe Working Conditions & Reasonable Work Hours.\
rules and regulations including but not limited to R.A. 7394 (Consumer Act of the Philippines)
It came into effect on July 15, 1992. The law anchored on 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.
R.A. 7581 (Price Act)
An Act Providing Protection to Consumers by Stabilizing the Prices of Basic Necessities and Prime
Commodities and by prescribing measures against Undue Price Increases during Emergency Situations
and Like Occasions
R.A. No. 10642 (Philippine Lemon Law)
A. Introduction
Republic Act 10642, or the Lemon Law, endeavors to protect consumers should they purchase new,
albeit nonconforming, motor vehicles from manufacturers, distributors, dealers, or retailers (collectively,
“Seller”). This Primer seeks to present the rights of such consumers, and the concurrent obligations of
the Seller under the Lemon Law.
B. The Lemon Law
1. What motor vehicles are covered under the Lemon Law?
The Lemon Law covers only brand new motor vehicles: meaning vehicles constructed entirely from new
parts, and have never been sold nor operated in any country. The Lemon Law further limits its coverage
to only common four-wheeled road vehicles such as cars, pick-ups, vans, sports utility vehicles, and
Asian utility vehicles. It specifically excludes motorcycles, delivery trucks, dump trucks, buses, lawn
mowers, heavy equipment, and farm equipment.
2. What defects are covered under the Lemon Law?
The Lemon Law covers those irreparable nonconformities which substantially impair the use, value, or
safety of these new vehicles and prevent such motor vehicles from conforming to the manufacturers’ or
distributors’ standards or specifications. However, the Lemon Law specifically excludes the following
causes of nonconformity:
Noncompliance by the consumer of the obligations under the manufacturer’s or distributor’s warranty
such as:
a. Modifications upon the motor vehicle which were not allowed by the manufacturer or distributor;
b. Abuse or neglect of the motor vehicle; and
c. Damage to the vehicle due to accident or force majeure.
3. Within what period may a consumer avail of his rights under the Lemon Law?
The consumer may invoke his rights under the Lemon Law within the Coverage Period which is 12
months from the date of the delivery of the motor vehicle, or for as long as the motor vehicle has not
run more than 20,000 km after such delivery, whichever comes first.
4. What else needs to be done before a consumer can invoke his rights under the Lemon Law?
The consumer must have had the affected motor vehicle brought in for repair with the Seller at least
four separate times for the same complaint, and for all those times, the nonconformity remains
unresolved. Such repair attempts include the replacement of parts, components, or assemblies of the
motor vehicle.
However, this comes with the caveat that should a motor vehicle not be returned for repair for the same
nonconformity within 30 days from notification that the motor vehicle has been repaired, and after the
expiration of the Coverage Period, the repair will be deemed to have been successful.
5. After four (4) unsuccessful repair attempts, can the consumer now avail of his rights under the Lemon
Law?
The consumer must first notify the Seller, in writing that he wishes to invoke his rights under the Lemon
Law, and such notification must comply with the form and procedure set forth in the Seller’s warranty
booklet before such notice may be binding upon the Seller.
After such notification, the Seller is given a final attempt to fix the nonconformity. In case there is still a
failure to fix the nonconformity, the consumer may then file a complaint with the Department of Trade
and Industry (“DTI”), invoking his rights under the Lemon Law.
6. Is the consumer compensated for the unavailability of the motor vehicle during the period it is under
repair?
Yes. During the period that the motor vehicle is being repaired, or after the consumer has notified the
Seller of his invocation of his rights under the Lemon Law, the consumer shall be provided (i) a
reasonable daily transportation allowance, equal to an amount which covers the transportation of the
consumer from his residence to his regular workplace or destination and vice versa, equivalent to air-
conditioned taxi fare, as evidenced by official receipt; (ii) such amount to be agreed upon by the parties;
or (iii) a service vehicle at the option of the Seller. Any disagreement on this matter shall be resolved by
the DTI.
7. What follows after the filing of the complaint with the DTI?
The DTI is the only body which can exercise jurisdiction over complaints arising from the Lemon Law. It
may retain other government agencies, or qualified third parties, to verify the alleged nonconformity in
determining the validity of the complaint. The costs for such a determination shall be borne jointly by
the consumer and the Seller. The DTI shall settle the dispute through the following dispute resolution
mechanisms:
a. Mediation. After receipt of the complaint, the DTI shall initiate mediation proceedings between the
parties to attempt to settle the matter amicably. These mediation proceedings shall not last for more
than 10 working days from the date of the filing of the complaint. Should the parties fail to settle the
dispute at this stage, they shall execute a certification of such failure.
b. Arbitration. The parties would then have the option to enter into arbitration, and rely on the
judgment of their chosen arbiter to settle their dispute.
c. Adjudication. Should the parties not enter into arbitration, any one of the parties may ask the DTI to
commence adjudication proceedings. The DTI shall then assign the complaint to an adjudication officer
to hear the matter. The adjudication officer shall rely on qualified independent findings to resolve the
claim of nonconformity. The adjudication proceedings shall not exceed 20 working days.
8. What happens if the DTI rules in favor of the consumer?
The consumer may:
a. Return the motor vehicle to the Seller, who must in turn return the full purchase price, plus collateral
damages;
b. Have the motor vehicle replaced by the Seller with a similar or comparable motor vehicle in terms of
specification and values, subject to availability; or
c. Purchase a vehicle with a higher value or specifications from the same Seller, in which case, the
consumer must pay the difference in cost.
In case the consumer chooses any of the last two options, a “reasonable allowance” for the use of the
subject motor vehicle shall be deducted in determining the value of the nonconforming motor vehicle.
Such “reasonable allowance” is equal to 20% per annum deduction from the purchase price, or the
product of the distance traveled in kilometers and the purchase price divided by one 100,000 km,
whichever is lower.
9. What happens to the motor vehicle if the consumer opted to return it to the Seller?
The Seller may resell the nonconforming motor vehicle. However, the Seller is obligated to inform the
next purchaser, in writing, (i) that the motor vehicle was returned to the Seller; (ii) the nature of the
nonconformity which caused such return; and (iii) the condition of the motor vehicle at the time of its
return to the Seller. This obligation on the part of the Seller ceases upon the sale of the nonconforming
motor vehicle to the first purchaser after it was returned. Neither is there a corresponding obligation on
the part of the first purchaser, or any subsequent purchaser, to disclose that the motor vehicle had
previously been returned.
10. What happens if the Seller is found to have violated his obligation to disclose?
The Seller shall be penalized by at least Php 100,000 as damages to the uninformed purchaser, without
prejudice to any further civil or criminal liability which it may have incurred under other laws.
11. What happens if the DTI rules in favor of the Seller?
The consumer shall be ordered to reimburse the costs of the Seller in determining the validity of the
complaint.
12. May a party appeal from the decision of the adjudication officer?
Yes. Within 15 days of receipt of the decision, a party may do so by filing a Memorandum of Appeal to
the Secretary of the DTI, with a Notice of Appeal to the adjudication officer, and with copies furnished to
the other parties. An appeal may be based on grounds that (i) that the decision was rendered with grave
abuse of discretion; (ii) the decision was rendered in excess of the jurisdiction or the authority of the
adjudication officer; or (iii) the decision is not supported by the evidence or there is serious error in the
finding of facts.
The Secretary of the DTI shall then decide on the appeal within 30 days of his receipt thereof. Should a
party wish to thereafter appeal the decision of the Secretary of the DTI, that party may file a case for
certiorari with the Court of Appeals under Rule 65 of the Rules of Court.
topics pertaining to this year's Consumer Welfare Month theme: "Sustainable Consumerism in the
Digital Age”
With only a few days until October, the Department of Trade and Industry (DTI), through its Consumer
Protection Group (CPG), has planned activities for the month-long celebration of Consumer Welfare
Month (CWM).
The DTI will carry the theme, Sustainable Consumerism in the Digital Age with the goal of increasing
advocacy for sustainability and encouraging a mindful shift in consumption, particularly when it comes
to purchasing goods and services online.
“We launched our campaign on sustainable consumption and production in 2018, and since then we
have been encouraging everyone to take an active role in environmental protection. As we celebrate the
CWM, the DTI invites the public to join the DTI and other agencies in strengthening the promotion on
sustainability.” says DTI Consumer Protection Group Undersecretary, Atty. Ruth B. Castelo.
One of our basic rights as consumers is the right to live and work in an environment that is neither
threatening nor dangerous. At the same time, we have a responsibility to understand the environmental
implications of our consumption. Hence, in order to have access to a healthy environment, we must be
good stewards of sustainability and be mindful of our decisions and consumption behaviors as they
impact the environment.
A month-long celebration of activities will be conducted nationwide through the DTI’s Consumer
Protection and Regional Operations Groups. To kick-off the 2022 national CWM celebration, the annual
Virtual Consumer Zumba will be held in the morning of 03 October 2022. Throughout the month,
affordable and quality manufactured goods and crafts will be made available in the DTI’s Diskwento
Caravan and Presyong Risonable Dapat Program in collaboration with local government units and
manufacturers of basic necessities and prime commodities, Noche Buena products, and sustainable
products.
There are also contests for the consumer youth to be educated on their rights and responsibilities as
sustainable and digital consumers such as the Consumer Digital Artwork Contest, Assertive Consumer Be
Like, and Consumer Quiz Bee.
During the CWM, the DTI also observes the National Standards Week (08-14 October 2022), in time for
the World Standards Day on 14 October 2022. The BPS Testing Laboratory will be open for a tour to
consumers. The standards users will be assembled in the Standards Stakeholders’ Conference on 14
October 2022.
To culminate the 2022 CWM celebration, the CPG conducts the Consumer Congress on 21 October 2022,
an annual congregation of the private and public sectors on the developments on consumer protection
policies, programs, partnerships, and advocacies.
The CPG is the lead DTI group on consumer welfare composed of the Offices of the Undersecretary and
Assistant Secretary, the Bureau of the Philippine Standards (BPS), the Fair Trade Enforcement Bureau
(FTEB), and the Consumer Policy and Advocacy Bureau (CPAB).
CPAB Director Atty. Marcus N. Valdez, II, underscores, “The Department encourages the general public
to take an active part in the CWM celebration this year to be more responsible as consumers”.
Meanwhile, the DTI recently launched its DTI-1384 short messaging service (SMS) blast service to keep
the consumers informed on announcements, advisories, news, and tips, even when they are on the go
and wherever they may be.
Consumers will receive text messages from DTI-1384 as the DTI-Consumer Protection Group’s sole
sender ID. The setup is similar to the National Disaster Risk Reduction and Management Council’s one-
way communication service.
The DTI invites the general public to subscribe by texting “SUBSCRIBE 1-384” to 09603544154 (for Smart
and TNT users) or 09669784816/09191602303 (for other Telco users) or through this
[Link] For more information about the 2022 CWM activities, visit
the DTI Consumer Care and Konsyumer Atbp (KATBP) Facebook pages or send an email to
CPAB@[Link]. ♦
