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Key Definitions in Consumer Protection

1. An advertising agency or agent is a service organization that creates and conducts promotional campaigns through various media on behalf of advertisers. 2. An agricultural purpose is related to the production, processing, or distribution of agricultural, fishery or marine products. 3. The amount financed in a consumer credit sale is the cash price minus any down payment plus non-finance charges. 4. Mass media refers to various forms of advertising such as television, radio, magazines, and billboards that are used to disseminate advertising messages to the public.

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Kelly Cardejon
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0% found this document useful (0 votes)
41 views7 pages

Key Definitions in Consumer Protection

1. An advertising agency or agent is a service organization that creates and conducts promotional campaigns through various media on behalf of advertisers. 2. An agricultural purpose is related to the production, processing, or distribution of agricultural, fishery or marine products. 3. The amount financed in a consumer credit sale is the cash price minus any down payment plus non-finance charges. 4. Mass media refers to various forms of advertising such as television, radio, magazines, and billboards that are used to disseminate advertising messages to the public.

Uploaded by

Kelly Cardejon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

1.

means a service organization or enterprise creating, conducting, producing, implementing or giving


counsel on promotional campaigns or programs through any medium for and in behalf of any
advertiser. ADVERTISING AGENCY OR AGENT
2. means a purpose related to the production, harvest, processing, manufacture, distribution, storage,
transportation, marketing, exhibition or disposition of agricultural, fishery or marine products.
AGRICULTURAL PURPOSE
3. in a consumer credit sale constitutes the cash price plus non-finance charges less the amount of any
down payment whether made in cash or in property traded in, or in a consumer loan the amount paid
to, receivable by or paid or payable to the buyer or to another person in his behalf. AMOUNT
FINANCED
4. means the prepared and through any form of mass medium, subsequently applied, disseminated or
circulated advertising matter. ADVERTISEMENT
5. means a quantity of any drug or device produced during a given cycle of manufacture. i) "Business
name, firm name, or style" means any name or designation other than the true name of a person,
partnership, corporation or association which is used or signed in connection with his/its business or in:
BATCH
6. 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
also 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. CHAIN
DISTRIBUTION PLANS OR PYRAMID SALES SCHEME
7. means a consumer sale wherein the seller uses the announcement to create the impression that he is
willing to give large discounts or merchandise in order to reduce, dispose or close out his inventory and
business. CLOSING OUT SALE
8. refers to any means or methods used to convey advertising messages to the public such as television,
radio, magazines, cinema, billboards, posters, streamers, hand bills, leaflets, mails and the like. MASS
MEDIA
9. means a natural person who is a purchaser, lessee, recipient or prospective purchaser, lessor or
recipient of consumer products, services or credit. CONSUMER
10. means a set of conditions to be fulfilled to ensure the quality and safety of a product; STANDARD

11. means any consumer product which, or the container or labeling of which, without authorization, bears
the trademark, trade name, or other identifying mark, imprint, or device, or any likeness thereof, of a
consumer product manufacturer, processor, packer, distributor, other than the person or persons who in
fact manufactured, processed, packed or distributed such product and which thereby falsely purports or
is represented to be the product of, or to have been packed or distributed by such consumer product
manufacturer, processor, packer, or distributor. COUNTERFEIT PRODUCT
12. in case of trade transaction, means the amount of money which would constitute full payment upon
delivery of the property (except money) or service purchased at the creditor's place of business. In the
case of financial transactions, cash price represents the amount received by the debtor upon
consummation of the credit transaction, net of finance charges collected at the time the credit is
extended, if any. CASH PRICE OR DLIVERED PRICE
13. means a loan made by the lender to a person which is payable in installments for which a finance
charge is or may be imposed. This term includes credit transactions pursuant to an open-end-credit
plan other than a seller credit card. CONSUMER LOAN
14. means goods, services and credits, debts or obligations which are primarily for personal, family,
household or agricultural purposes, which shall include but not limited to food, drugs, cosmetics, and
devices. CONSUMER PRODUCTS AND SERVICES
15. means a consumer product safety standard described in Article 78 or a rule under this Chapter
declaring a consumer product banned hazardous product. CONSUMER PRODUCT SAFETY RULE
16. means any substance which on contact with living tissue will cause destruction of tissue by chemical
action. CORROSIVE
17. means (1) articles intended to be rubbed, poured, sprinkled or sprayed on, introduced into or otherwise
applied to the human body or any part thereof for cleansing, beautifying, promoting attractiveness, or
altering the appearance, and (2) article intended for use as a component of any such article except that
such term shall not include soap. COSMETICS
18. means a product which fails to comply with an applicable consumer product safety rule which creates a
substantial risk of injury to the public. SUBSTANCE PRODUCT
19. means any substance, the intended use of which results or may reasonably be expected to result,
directly or indirectly, in its becoming a component or otherwise affecting the characteristics of any food
(including any substance intended for use in producing, manufacturing, packing, processing, preparing,
treating, packaging, transporting, or holding food; and including any source of radiation intended for any
such use), if such substance is not generally recognized, among experts qualified as having been
adequately shown through scientific procedures to be safe under the conditions of the intended use.
FOOD ADDITIVE
20. means any card, plate, coupon book or other credit device existing for the purpose of obtaining money,
property, labor or services on credit. CREDIT CARD

21. means any substance other than a radioactive substance which can cause injury, illness or death to
man through ingestion, inhalation or absorption through any body surface. TOXIC SUBSTANCE
22. means a sale products, services or an interest in land to a person on credit where a debt is payable in
installments or a finance charge is imposed and includes any agreement in the form of a bailment of
products or lease of products or real property if the bailee or lessee pays or agrees to pay
compensation for use a sum substantially equivalent to or in excess of the aggregate value of the
products or real property involved and it is agreed that the bailee or lessee will become, or for no other
or a nominal consideration has the option to become, the owner of the products or real property upon
full compliance with the terms of the agreement. CREDIT SALE
23. means: (1) (i) Any substance or mixture of substances which is toxic, corrosive, irritant, a strong
sensitizer, flammable or combustible, or generates pressure through decomposition, heat or other
means, if such substance or mixture or substances any cause substantial injury or substantial illness
during or as a proximate result of any customary or reasonably foreseeable ingestion by children.
HAZARDOUS SUBSTANCE
24. means a transaction between a natural person and a creditor in which real or personal property,
services or money acquired on credit and the person's obligation is payable in installment. CREDIT
TRANCSATION
25. means any person engaged in the business of extending credit and shall include any person who as a
regular business practice makes loans or sells or rents property or services on a time, credit or
installment basis, either as principal or as agent who requires as an incident to the extension of credit,
the payment of a finance charge. CREDITOR
26. means, with respect to a consumer credit transaction, the penalty charge payable by the consumer-
debtor for failure to pay an amount or installment in full on the date the same becomes due and
demandable, or on or before the period specified for the purpose in the consumer credit sale
documents. DEFAULT OR DELINQUENCY CHARGE
27. means any substance, whether processed, semi-processed or raw, intended for human consumption
and includes chewing gum, drinks and beverages and any substance which has been used as an
ingredient or a component in the manufacture, preparation or treatment of food. FOOD
28. means an instrument, apparatus, implement, machine, contrivance, implant, in vitro reagent, or other
similar or related article, including any component, part or accessory which is (1) recognized in the
official United States Pharmacopoeia-National Formulary (USP-NF) or any supplement to them, (2)
intended for use in the diagnosis of disease or other condition or in the cure, mitigation, treatment or
prevention of disease, in man or other animals; or (3) intended to affect the structure or any function of
the body of man or other animals, and which does not achieve any of its principal intended purposes
through chemical action within or on the body of man or other animals and which is not dependent upon
being metabolized for the achievement of any of its principal intended purposes. DEVICE
29. means the business of conceptualizing, presenting or making available to the public, through any form
of mass media, fact, data or information about the attributes, features, quality or availability of
consumer products, services or credit. ADVERTISING
30. means (1) (i) a sale, lease, assignment, award by chance, or other disposition of consumer products,
including chattels that are intended to be affixed to land, or of services, or of any right, title, or interest
therein, except securities as defined in the Securities Act and contracts of insurance under the
Insurance Code, or (ii) a grant of provision of credit to a consumer for purposes that are primarily
personal, family, household or agricultural, or (2) a solicitation or promotion by a supplier with respect to
a transaction referred to in clause (1). CONSUMER TRANSACTION

31. means any person to whom a consumer product is delivered or sold for purposes of distribution in
commerce, except that such term does not include a manufacturer or retailer of such product.
DISTRIBUTOR
32. mean (1) articles recognized in the current official United States Pharmacopoeia-National Formulary,
official Homeopathic Pharmacopoeia of the United States, official National Drug Formulary, or any
supplement to any of them; and (2) articles intended for use in the diagnosis, cure, mitigation,
treatment, or prevention of disease in man or other animals; and (3) articles (other than food) intended
to affect the structure or any function of the body of man or animals; and (4) articles intended for use as
a component of any articles specified in clauses (1), (2), or (3) but do not include devices or their
components, parts or accessories. The term "drug" when used in this Act shall include herbal and/or
traditional drug. They are defined as articles from indigenous plant or animal origin used in folk
medicine which are: (1) recognized in the Philippine National Formulary; (2) intended for use in the
treatment or cure, mitigation, of disease symptoms, injury or bodily defect for use in man; (3) other than
food, intended to affect the structure of any function of the body of man; (4) put into finishes, ready to
use form by means of formulation, dosage or dosage directions; and (5) intended for use as a
component of any of the articles specified in clauses (1), (2), (3) and (4) of this paragraph. DRUGS
33. means the date stated on the label of food, drug, cosmetic, device or hazardous substance after which
they are not expected to retain their claimed safety, efficacy and quality or potency and after which it is
no longer permissible to sell them. EXPIRY OR EXPIRATION DATE
34. means the client of the advertising agency or the sponsor of the advertisement on whose account the
advertising is prepared, conceptualized, presented or disseminated. ADVERTISER
35. means any substance which has a flash point at or below negative six and six-tenths degrees
centigrade as determined by the Tagliabue Open Cub Tester; and term "combustible" shall apply to any
substance which has a flash point of above twenty-six and six-tenths degrees to and including sixty-five
and five-tenths degrees centigrade as determined by the Tagliabue Open Cub Tester: Provided, That
the flammability or combustibility of solids and of the contents of self-pressurized containers shall be
determined through methods found by the implementing agency to be generally applicable to such
materials or containers, respectively, and established by regulations issued by it. EXTREMELY
FLAMMABLE
36. is the identification of drugs and medicines by their scientifically and internationally recognized active
ingredients or by their official generic name as determined by the Bureau of Food and Drugs of the
Department of Health. GENERIC NAME
37. means an expressed or implied assurance of the quality of the consumer products and services offered
for sale or length of satisfactory use to be expected from a product or other similar specified
assurances. GUARANTEE
38. means any substance which has any of the following effects: (1) produces death within fourteen days to
one-half or more than one-half of a group of ten or more laboratory white rats each weighing between
Two hundred and three hundred grams, at a single dose of fifty milligrams or less per kilogram of body
weight, when orally administered; or (2) produces death within fourteen days to one-half or more of a
group of ten or more laboratory white rats each weighing between two hundred and three hundred
grams, when inhaled continuously for a period of one hour or less at an atmospheric concentration of
two hundred parts per million by volume or less of gas or vapor or two milligrams per liter by volume or
less of mist or dust, provided such concentration is likely to be encountered by man when the
substance is used in any reasonably foreseeable manner, or (3) produces death within fourteen days to
one-half or more of a group of ten or more rabbits, when tested in a dosage of two hundred milligrams
or less per kilogram of body weight, or when administered through continuous contact with the bare
skin for twenty-four hours or less. HIGHLY TOXIC
39. means consumer sales or leases which are personally solicited by any person or organization by
telephone, person-to-person contact or by written or printed communication other than general
advertising or consummated at the buyer's residence or a place of business, at the seller's transient
quarters, or away from a seller's regular place of business. HOME SOLICITATION SALE
40. means any substance other than a radioactive substance which can cause injury, illness or death to
man through ingestion, inhalation or absorption through any body surface. TOXIC SUBSTANCE

41. means a consumer product which presents an unreasonable risk of death, serious illness or severe
personal injury. IMMINENTLY HAZARDOUS PRODUCT
42. means packaging that is designed or constructed to be significantly difficult for children five years of
age to open or to obtain a toxic or harmful amount of the substance contained therein within a
reasonable time and not difficult for normal adults to use properly but does not mean packaging which
all such children cannot open or obtain a toxic or harmful amount within a reasonable time. SPECIAL
PACKAGING
43. means any hazardous substance intended, or packaged in a form suitable, for use in households,
especially by children, the packaging or labeling of which is in violation of the special packaging
regulation issued by the Department of Health under ARTICLE 91 or if such substance fails to bear a
label which (1) states conspicuously (i) the name and the exact address of the manufacturer, packer,
distributor, or seller; (ii) the common or usual name of the hazardous substance or of each component
which contributes substantially to the harmfulness of the substance, unless the Department by
regulation approved by the Department permits or requires the use of the recognized generic name; (iii)
the signal word "danger" on substances which are extremely flammable, corrosive, or highly toxic; (iv)
the signal word "warning" or "caution" on all other hazardous substances; (v) a frank statement of the
principal hazard or hazards involved, as "flammable", "vapor harmful", "causes burns", "absorbed
through skin", or similar wording describing the action to be followed or avoided, except when modified
by regulation by the Department pursuant to Section 46; (vi) instructions, when necessary or
appropriate, for first aid treatment; (vii) the word "poison" for any hazardous substance which is defined
as highly toxic; (viii) instructions for handling and storage of packages which require special care in
handling or storage; and (ix) the statement "keep out of the reach of children", or its practical
equivalent, if the article is intended for use by children and is not a banned hazardous substance, with
adequate directions for the protection of children from the hazard involved. The aforementioned signal
words, affirmative statements, description of precautionary measures, necessary instructions or other
words or statements may be in the English language or its equivalent in Filipino; and (2) on which any
statement required under clause (1) of this paragraph are located prominently and in contrast by
typography are located prominently and in contrast by typography, layout, with other printed matters on
the label. MISLABED SUBSTANCE
44. means any device, written, printed, affixed or attached to a consumer product or displayed in a
consumer repair or service establishment for the purpose of indicating the retail price per unit or
service. PRICE TAG
45. means any substance not corrosive within the meaning of paragraph (t) of this Article which, on
immediate, prolonged or repeated contact with normal living tissue will induce a local inflammatory
reaction. IRRITANT
46. means the display of written, printed or graphic matter on any consumer product its immediate
container, tag, literature or other suitable material affixed thereto for the purpose of giving information
as to identify, components, ingredients, attributes, directions for use, specifications and such other
information as may be required by law or regulations. LABEL, LABELING
47. means any substance which will cause on normal living tissue, allergy or photodynamic quality of
hypersensitivity which becomes evident on reapplication of the same substance, to be designated as
such by the implementing agency. Before designating any substance as a strong sensitizer, the
implementing agency, upon consideration of the frequency of occurrence and severity of the reaction,
shall find that the substance has a significant capacity to cause hypersensitivity. STRONG
SENSITIZER
48. means any person who manufactures, assembles or processes consumer products, except that if the
goods are manufactured, assembled or processed for another person who attaches his own brand
name to the consumer products, the latter shall be deemed the manufacturer. In case of imported
products, the manufacturer's representatives or, in his absence, the importer, shall be deemed the
manufacturer. MANUFACTURER
49. means a product which, because of the pattern of the defect, the number of defective products
distributed in commerce and the severity of the risk or otherwise, creates a substantial risk of injury to
the public. MATERIALLY DEFECTIVE PRODUCT
50. means any credit extended by a creditor to a consumer for the sale or lease of any consumer product
or service under which part or all of the price or payment therefor is payable at some future time,
whether in full or in installments. CONSUMER CREDIT

51. mean (1) any drug the composition of which is such that said drug is not generally recognized among
experts qualified by scientific training and experience to evaluate the safety, efficacy and quality of
drugs as safe, efficacious and of good quality for use under the conditions prescribed, recommended,
or suggested in the labeling thereof; or (2) any drug the composition of which is such that said drug, as
a result of its previous investigations to determine its safety, efficacy and good quality for use under
certain conditions, has become so recognized but which has not, otherwise than in such investigations,
been used to a material extent or for a material time under new conditions. "New Drugs" shall include
drugs (a) containing a newly discovered active ingredient; (b) containing a new fixed combination of
drugs, either by molecular or physical combination; (c) intended for new indications; (d) an additional
new mode of administration; or (e) in an additional dosage or strength of the dosage form, which meets
the conditions as defined under the new drug. The definition of "new drugs" covers to the extent
applicable, "new devices". NEW DRUGS
52. means the sale, lease, exchange, traffic or distribution of goods, commodities, productions, services or
property, tangible or intangible. COMMERCE
53. means a consumer product which incorporates a design, material or form of energy exchange which
has not previously been used substantially in consumer products and as to which there exists a lack of
adequate information to determine the quality and safety of such product if used by the consumers.
NEW PRODUCTS
54. means any container or wrapping in which any consumer product is enclosed for use in the delivery or
display of that consumer product to retail purchasers, but does not include: 1) shipping containers or
wrappings used solely for the transportation of any consumer product in bulk or in big quantities by
manufacturers, packers, or processors to wholesale retail distributors thereof; 2) shipping containers or
outer wrappings used by retailers to ship or deliver any product to retail costumers if such containers
and wrappings bear no printed matter pertaining any particular product; 3) The wrappers or containers
of consumer products sold in small quantities by small retail stores to the consumer which by tradition
are wrapped with ordinary paper. PACKAGE OR PACKAGING
55. means any individual, partnership, corporation or association, trust, government or governmental
subdivision or any other legal entity. PERSON
56. means any substance capable of destroying life or seriously endangering health when applied
externally to the body or introduced internally in moderate doses. POISONOUS SUBSTANCE
57. means the direct comparison in any advertisement of a seller's current price for consumer products or
services with any other price or statement of value for such property or services expressed in pesos,
centavos, fractions or percentages. PRICE COMPARISON
58. means that part of the label that is most likely to be displayed, presented, shown or examined under
normal and customary conditions of display for retail or sale. PRINCIPAL DISPLAY PANEL
59. means an owner of a brand or trademark on the label of consumer product other than a manufacturer
of the product. A consumer product bears a private label if (1) the product or its container is labeled with
a brand or trademark of a person other than its manufacturer; or (2) the brand or trademark of the
manufacturer of such product does not appear on such label. PRIVATE LABELER
60. means any substance which emits ionizing radiation. REDIOACTIVE SUBSTANCE

61. means (1) any toy or other articles intended for use by children, which are hazardous per se, or which
bear or contain substances harmful to human beings; or (2) any hazardous substance intended or
packaged in a form suitable for use in the household, which the implementing agency by regulation,
classifies as "banned hazardous substance" notwithstanding the existence of cautionary labels, to
safeguard public health and safety: Provided, That the implementing agency may, by regulation,
exempt from this Act, articles which by reason of their functional purpose require the inclusion of the
hazardous substance involved and which bear appropriate labels giving adequate directions and
warnings for their safe use. Procedures for the issuance, amendment or repeal of regulations pursuant
to clause (2) or paragraph (g) of this Article shall be governed by the rules and regulations promulgated
by the Department of Health; Provided, That if the Department of Health finds that the distribution for
household use of the hazardous substance involved presents an imminent hazards to the public health,
it may publish in a newspaper of general circulation a notice of such finding and such substance shall
be deemed to be a "_______________" pending the issuance of regulation formally banning such
substance. BANNED HAZARDOUS SUBSTANCE
62. means any business establishment, engaged directly or indirectly, in the repair, service or maintenance
of any consumer product. REPAIR AND SERVICE FIRM
63. means a person, other than a consumer, who in the course of his business, solicits, offers, advertises,
or promotes the disposition or supply of a consumer product or who other than the consumer, engages
in, enforces, or otherwise participates in a consumer transaction, whether or not any privity of contract
actually exists between that person and the consumer, and includes the successor to, or assignee of,
any right or obligation on of the supplier. SUPPLIER
64. means the container or package which is immediately after or near the substance but does not include
package liners. IMMEDIATE CONTAINER
65. means a person engaged in the business of selling consumer products directly to consumers.
RETAILER
66. shall mean an act made by a manufacturer or seller, or their respective representative or agent, to
make available consumer products, services or credit to the end consumers under a consumer sale
transaction. It shall not include sampling or any distribution not for sale. SALE OR DISTRIBUTION
67. means techniques intended for broad consumer participation which contain promises of gain such as
prizes, in cash or in kind, as reward for the purchase of a product, security, service or winning in
contest, game, tournament and other similar competitions which involve determination of winner/s and
which utilize mass media or other widespread media of information. It also means techniques purely
intended to increase the sales, patronage and/or goodwill of a product. SALE PROMOTION
68. means a person engaged in the business of selling consumer products directly to consumers. It shall
include a supplier or distributor if (1) the seller is a subsidiary or affiliate of the supplier or distributor; (2)
the seller interchanges personnel or maintains common or overlapping officers or directors with the
supplier or distributor; or (3) the supplier or distributor provides or exercises supervision, direction or
control over the selling practices of the seller. SELLER
69. shall mean, with respect to repair and service firms, services supplied in connection with a contact for
construction, maintenance, repair, processing, treatment or cleaning of goods or of fixtures on land, or
distribution of goods, or transportation of goods. SERVICE
70. means services that are the subject of a consumer transaction, either together with, or separate from
any kind of personal property, whether tangible or intangible. SERVICES
71. shall mean a machine or technician or any person who works or renders diagnosis or advice in
connection with repair, service and maintenance of the consumer products in a repair and service firm.
TECHNICAL PERSONNEL OR REPAIR AND SERVICE ENTERPRISE
72. means the sales device employed by the sellers wherein the buyer is induced to acquire goods or
services by representing that after the acquisition of the goods or services, he will receive a rebate,
commission or other benefit in return for the submission of names of potential customers or otherwise
helping the seller enter into other sales, if the receipt of such benefit is contingent on an event occurring
after the sale is made. REFERRAL SELLING
73. means a word or words, name, title, symbol, emblem, sign or device or any combination thereof used
as an advertisement, sign, label, poster or otherwise for the purpose of enabling the public to
distinguish the business of the person who owns and uses said trade name or trademark. TRADE
NAME OR TRADEMARK
74. means and any and all operations involved in the production, including preparation, propagation,
processing, formulating, filing, packing, repacking, altering, ornamenting, finishing or otherwise
changing the container, wrapper or labeling of a consumer product in the furtherance of the distribution
of the same from the original place of manufacture to the person who makes the final delivery or sale to
the ultimate consumer. MANUFACTURE
75. means a consumer credit extended on an account pursuant to a plan under which OPEN-END-CREDIT
PLAN

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