Title
Liability Rules for Mislabeled Products
Law
Dti Administrative Order No. 2
Decision Date
Feb 7, 1991
DTI Administrative Order No. 2 mandates strict liability for individuals and entities involved in the sale of mislabeled or misbranded products, requiring prompt reporting and withdrawal of such goods to ensure consumer protection and compliance with labeling standards.
A

Q&A (DTI ADMINISTRATIVE ORDER NO. 2)

The purpose is to amend the provisions governing the packing, labelling, marking, or branding of products manufactured in or imported into the Philippines, pursuant to Title X, Book IV of the Administrative Code of 1987, and to effectively implement Act No. 3740 as amended.

Section 2A was incorporated, which defines the persons liable under Act No. 3740 in cases involving fraudulently advertised or mislabeled/misbranded articles.

Natural persons, either as principals or agents, who sell, offer for sale, barter, exchange, or possess with intent to sell any fraudulently advertised or mislabeled/misbranded article.

The president, manager, or their equivalents and all members of the board of directors or their equivalents.

They are considered principals.

They are considered agents if they expressly represent the principals or if their relationship is covered by Article 1868 of the Civil Code of the Philippines.

No, retailers who are not principals or agents have specific liabilities under Section 2A if they fail to report or withdraw suspicious goods.

They must report to the Department of Trade and Industry (DTI) within 24 hours upon suspicion or discovery, and after due notice, they must withdraw the goods pending DTI validation.

DTI must validate the report within 72 hours from discovery.

All previous inconsistent rules and regulations are revoked.

They took effect immediately upon publication in a newspaper of general circulation.


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