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

Persons Liable for Violations (Section 2A)

  • Liability extends to those who sell, offer for sale, barter, exchange, or possess with intent to sell any fraudulently advertised or misbranded articles.
  • Natural persons liable either as principals or agents.
  • Juridical persons liable include presidents, managers, equivalent officers, and all board members of firms or corporations.
  • Manufacturers, repackers, and importers are principals.
  • Distributors and retailers are agents if they expressly represent principals or fall under Article 1868 of the Civil Code.

Liability of Retailers Not Principals or Agents

  • Retailers who are neither principals nor agents are nonetheless liable if:
    1. They fail to report to the Department of Trade and Industry (DTI) within 24 hours upon discovering goods sold to them appear mislabeled or misbranded.
    2. They do not withdraw the suspicious goods from sale after receiving due notice, pending DTI validation of any report.
  • The DTI must validate any report within 72 hours from discovery.

Revocation of Previous Inconsistent Rules (Section 2)

  • All prior rules and regulations conflicting with this Order are revoked to ensure conformity and clarity in enforcement.

Effectivity (Section 3)

  • The amended rules and regulations take effect immediately upon their publication in a newspaper of general circulation.

Legal Basis and Authority

  • Promulgated pursuant to powers granted under the Administrative Code of 1987 and Act No. 3740 as amended.
  • Enforced by the Department of Trade and Industry, led by the Secretary at the time of issuance.

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