STUDENTS’ NOTES AND STUDY GUIDES FOR THE LESSON 2

PART 1: CONSUMER PROTECTION LAWS (AN OVERVIEW)

01 | RA 7391

AN ACT REVISING REPUBLIC ACT NO. 2644, AS AMENDED, OTHERWISE KNOWN AS THE
PHILIPPINE MIDWIFERY ACT

Republic Act No. 7392, the Philippine Midwifery Act of 1992, is a law that regulates and
strengthens the midwifery profession in the Philippines by establishing the Board of Midwifery,
outlining qualifications and examinations for midwives, defining the scope of their practice,
setting standards for midwifery schools, and prescribing penalties for violations, all with the
overarching goal of ensuring quality maternal and newborn care and reducing mortality rates,
especially in underserved communities.

02 | RA 10642

AN ACT STRENGTHENING CONSUMER PROTECTION IN THE PURCHASE OF BRAND-NEW MOTOR

It aims to safeguard the rights of purchasers of brand-new motor vehicles against deceptive and
unfair trade practices, specifically concerning vehicles that turn out to have factory defects or
"nonconformities."

In essence, the Lemon Law provides remedies for consumers who buy a new car, van, SUV, or
pick-up truck that exhibits defects significantly impairing its use, value, or safety, and which the
manufacturer, distributor, dealer, or retailer has been unable to fix after a reasonable number of
attempts. These remedies can include vehicle replacement or a refund of the purchase price plus
related expenses.

03 | RA 10623

AN ACT AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 7581, ENTITLED "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" AND FOR OTHER
PURPOSES

The Price Act aims to protect consumers by stabilizing the prices of basic necessities and prime
commodities and by prescribing measures against undue price increases during emergency
situations and similar occasions. RA10623 expands the coverage of the Price Act and strengthens
the government's ability to monitor and control prices, especially during times of calamities,
emergencies, or widespread illegal price manipulation. It includes additional items under the
definition of basic necessities and prime commodities and enhances the penalties for violations
such as hoarding, profiteering, and cartels. Essentially, RA 10623 reinforces consumer protection
against unreasonable price hikes and ensures the availability of essential goods at fair prices,
particularly in vulnerable situations.
04 | RA 10909

An Act Prohibiting Business Establishments from Giving Insufficient or No Change to Consumers

Republic Act No. 10909, also known as the "No Shortchanging Act of 2016," is a Philippine law
that aims to protect consumers by prohibiting business establishments from giving insufficient or
no change for purchases. It mandates that businesses must provide the exact amount of change
in legal currency and prohibits them from offering alternatives like candies or asking for the
consumer's permission to forego the correct change due to the unavailability of small
denominations. The Act also requires businesses to display price tags inclusive of all applicable
taxes. Violations of this law are subject to fines, with increasing penalties for repeated offenses,
potentially including the suspension or revocation of the business's license to operate.

05 | RA 10962

An Act Regulating the Issuance, Use and Redemption of Gift Checks

Republic Act No. 10962, also known as the "Gift Check Act of 2017," is a Philippine law that
regulates the issuance, use, and redemption of gift checks. Its primary aim is to protect consumers
by prohibiting the issuance of gift checks with expiry dates and ensuring that the unused value or
balance of a gift check must be honored until the cessation of the issuer's business. The Act also
outlines specific instances where issuers may refuse to honor gift checks (e.g., loss due to no fault
of the issuer, or mutilation preventing verification) and mandates that promotional activities and
discounts applicable to cash purchases should also apply to those made with gift checks. Overall,
RA 10962 strengthens consumer rights concerning gift checks and promotes fair business
practices.

06 | RA 7392

THE CONSUMER ACT OF THE PHILIPPINES

Republic Act No. 7394, the Consumer Act of the Philippines, is a comprehensive law designed to
safeguard consumer interests and welfare by establishing standards for business conduct and
ensuring protection against deceptive practices, unsafe products, and unfair trade. It outlines
consumer rights and provides mechanisms for redress, designating the DTI as the primary
enforcement agency and promoting the role of consumer organizations, thus serving as a
fundamental framework for consumer protection in the country.

PART 2: HISTORY AND FUNCTIONS OF (DTI) DEPARTMENT OF TRADE

HISTORY OF DTI

1898 - The DTI had its beginnings on 23 June 1898 when President Emilio F. Aguinaldo formed
four government agencies, namely the Departments of Navy, Commerce, Agriculture, and
Manufacturing.

1932 - Creation of the Department of Commerce and Industry Act No. 4007
1942 - During World War II, the department was reorganized and renamed the Department of
Commerce and Communications.

1946 - After the war, the department was reestablished as the Department of Commerce and
Industry.

1972 - The department was renamed the Department of Trade and Tourism through Letter of
Instruction No. 36.

1979 - The department's tourism functions were transferred to the Ministry of Tourism, and it
was renamed the Ministry of Trade and Industry.

1987- The ministry was reorganized and renamed the Department of Trade and Industry (DTI)
through Executive Order No. 133.

Present day - DTI is responsible for promoting and regulating trade, industry, and investments in
the Philippines.

QUESTION: GIVEN THE VERY LONG MAKE-OVER OF DTI, WHAT DO YOU THINK HAS BEEN THE DTI'S
MAIN GOAL FOR THE PHILIPPINES' ECONOMY?

FUNCTIONS OF DTI

• Formulation and Implementation of Trade, Industry, and Investment Policies.

Developing strategic plans and programs to promote industrial growth, attract investments (both
domestic and foreign), and expand trade. Crafting policies related to manufacturing, services, and
entrepreneurship.

• Promotion and Facilitation of Trade and Investments.

Identifying and promoting export opportunities for Philippine products and services. Conducting
investment promotion campaigns to attract foreign direct investments. Providing assistance and
support to both local and foreign investors. Organizing trade fairs, exhibitions, and business
matching events.

• Industry Development.

Formulating plans and programs for the development and competitiveness of various
industries. Providing support for the upgrading, upskilling, and upsizing of Micro, Small, and
Medium Enterprises (MSMEs). Promoting innovation and technology adoption in industries.
Supporting the development of industry clusters.

• MSME Development and Promotion

Implementing programs to support the growth and development of MSMEs, including access to
finance, technology, markets, and training.

QUESTION: IF DTI FOCUSED ON SMALL SHOPS INSTEAD OF BIG FACTORIES BEFORE, HOW MIGHT
PANABO BE DIFFERENT TODAY?
 • Consumer Protection.

Ensuring a safe consumer environment with quality and safe products at reasonable prices.
Implementing and enforcing consumer protection laws (like RA 7394, the Consumer Act of the
Philippines). Educating consumers about their rights and responsibilities. Providing mechanisms
for handling and resolving consumer complaints. Monitoring prices of basic necessities and prime
commodities. Accrediting service and repair shops.

QUESTION: WHY IS DTI'S WORK ON PRODUCT SAFETY IMPORTANT FOR PANABO FAMILIES? HOW
DOES IT HELP US?

• Trade Regulation and Fair-Trade Enforcement.

Overseeing the implementation and enforcement of trade regulations and fair-trade

QUESTION: HOW MIGHT DTI HELP PANABO BUSINESSES DAILY, EVEN WITHOUT DIRECT CONTACT?

• Regional Operation.

Implementing DTI programs and services at the regional, provincial, and local levels through its
regional and field offices. Supporting regional economic development.

QUESTION: HOW MIGHT DTI HELP PANABO SELL ITS PRODUCTS (LIKE BANANAS) TO MORE
BUYERS, EVEN OUTSIDE OUR REGION?

• International Trade Negotiations and Agreements.

Participating in and negotiating bilateral, multilateral, and international trade

• Accreditation and Standards.

Accrediting certifying bodies, conformity assessment bodies, and testing and calibration
laboratories. Participating in international and regional standardization programs.

• Commercial Intelligence

Gathering and disseminating information on market trends, trade opportunities, and other
relevant commercial data.

A message to everyone.

“Thank you, everyone. For reaching this page. I hope you learned a lot from our written discussion.
We apologize if what we presented last time was half-baked. We are taking accountable of what
we performed that day. As for the compensation of your wasted time, let this written discussion
be a helpful guide in studying lesson 2. On Monday, we will be having our evaluation. See you
there, class.” – Group 2