Law Summary
Key Definitions
- Extensive definitions provided for terms such as "advertisement," "agricultural purpose," "banned hazardous substance," "consumer," "credit sale," "hazardous substance," "manufacturer," "service," "supplier," among others.
- Definitions cover a wide range of commercial activities and product categories including food, drugs, cosmetics, devices, credit transactions, and hazardous substances.
Consumer Product Quality and Safety
- State duty to develop and enforce quality and safety standards for consumer products.
- Implementation by relevant government departments (Health, Agriculture, Trade and Industry).
- Standards include requirements about product attributes, packaging, labeling, safety warnings, and testing.
- Procedures for rule promulgation, publication, amendment, and enforcement are mandated.
- Mechanisms for recall, seizure, and prohibition of unsafe or dangerous products.
- Imported products must comply with standards and undergo inspection; non-compliant products refused entry.
- Liability for stockpiling to prevent evasion of safety rules.
Prohibited Acts and Penalties on Product Quality
- Manufacturing or distributing non-compliant, banned or hazardous products is prohibited.
- Failure to allow inspection or comply with recall orders is punishable.
- Penalties include fines, imprisonment, revocation of licenses, and deportation for foreign offenders.
Regulation of Food, Drugs, Cosmetics, and Devices
- Department of Health sets standards and quality controls.
- Adulteration and mislabeling are specifically defined and prohibited.
- Licensing and registration of manufacturers, distributors, and importers is required.
- Certification for antibiotic-containing drugs and batch release.
- Provisions cover new drugs, banned or restricted drugs, and dangerous drugs under specialized boards.
- Administrative sanctions, fines, and enforcement measures are detailed.
Hazardous Substances
- Protection against hazardous substances other than food, drugs, cosmetics and devices.
- Department of Health to enforce regulations, including labeling and packaging.
- Hazardous substances refused entry if banned or mislabeled.
- Prohibited acts include introduction, distribution, alteration, or false guarantees related to hazardous substances.
- Penalties for violations include fines and imprisonment.
Prohibition of Deceptive, Unfair, and Unconscionable Sales Acts
- Deceptive acts include false claims about product attributes, quality, price, or warranty.
- Unfair acts exploit consumer vulnerabilities or involve grossly one-sided transactions.
- Chain distribution (pyramid) schemes and referral sales without proper undertakings are prohibited.
- Home solicitation sales require permits and adherence to prescribed conduct and hours.
- Penalties include fines and imprisonment.
Regulation of Weights and Measures
- Official sealing, calibration, and enforcement by local treasurers and Department of Trade and Industry.
- Use of metric system mandated.
- Prohibits fraudulent practices such as using counterfeit seals or falsifying weights.
- Penalties for violations include fines and imprisonment.
Consumer Product and Service Warranties
- Written warranties must be clear, specify terms, and be operative from sale.
- Manufacturers, distributors, and retailers bear liabilities in a tiered manner.
- Consumers entitled to repair, replacement, refund, or damages in case of warranty breach.
- Implied warranties apply to services with care and skill standards.
- Professionals exempted from warranty provisions.
- Service firms must guarantee workmanship and parts for at least 90 days.
- Penalizes refusal or delay in honoring warranties or false warranty representations.
Labeling and Fair Packaging
- Mandatory accurate labeling covering brand, manufacturer, content, instructions, and warnings.
- Departments may require additional or special labeling to prevent deception.
- Prohibits mislabeled products and deceptive packaging.
- Special packaging standards for child protection.
- Price tagging rules enforce price transparency.
- Specific requirements for food, drugs (including generics), cosmetics, and hazardous substances labeling.
- Cigarette packaging must bear health warnings.
- Penalties for violations range from fines to imprisonment.
Liability for Product and Service Defects
- Manufacturers, importers, producers liable for damages due to defective products independent of fault.
- Defects include design, manufacture, inadequate information, and presentation.
- Tradesmen/sellers liable when manufacturers cannot be identified or goods improperly preserved.
- Suppliers jointly liable for imperfections in quality, quantity, and service.
- Consumers may demand remedy, replacement, refund, or price reduction.
- Legal guarantee of adequacy mandatory; contract clauses limiting liability are prohibited.
- Penalties for violations include fines and imprisonment.
Advertising and Sales Promotion
- False, deceptive, or misleading advertisements prohibited.
- Comparative price advertising subject to strict conditions.
- Food, drug, cosmetic, device, hazardous substance ads must conform to approved labeling and regulations.
- Credit and open-end credit advertisements require disclosure of terms.
- Sales promotion campaigns require permits and regulation of conduct.
- Notification and procedural requirements for sales promotions including winner selection and publication.
- Injunctive relief available against fraudulent advertising.
- Penalties for violations include fines, imprisonment, and deportation for responsible persons.
Regulation of Repair and Service Firms
- Accreditation of repair and service firms and their technical personnel mandatory.
- Minimum requirements include business registration, certificate of accreditation, technical skills, and necessary licenses.
- Operating without accreditation prohibited.
- Certificates may be suspended or revoked for cause.
Consumer Credit Transactions
- Laws simplified and modernized to encourage fair consumer credit practices.
- Finance charges defined comprehensively including interest, fees, and insurance premiums.
- Disclosure requirements detailed for all credit transactions including open-end plans.
- Consumers entitled to prepay without penalty and get appropriate rebates.
- Required disclosures must be clear, conspicuous, and made before consummation.
- Exemptions apply for business or government credit transactions.
- Penalties apply for failure to disclose, including monetary fines.
National Consumer Affairs Council
- Established to coordinate consumer protection programs among government and private sectors.
- Composed of representatives from key government departments, consumer organizations, and business sectors.
- Powers include policy recommendations, program monitoring, education campaigns, and consumer representation.
- Consumer education integrated into school curricula.
- Provides advisory services and facilitates consumer participation in policymaking.
- Filing and handling of consumer complaints through arbitration officers empowered to mediate and adjudicate with binding orders.
- Administrative sanctions and appeals procedures specified.
Transitory and Final Provisions
- Act applies notwithstanding contrary agreements, without restricting other rights.
- Actions under the Act prescribe within two years from consummation or discovery of defect.
- Repeals inconsistent laws, provides appropriations for implementation.
- Separability clause ensures remaining provisions remain effective if any part is invalidated.
- Effective 30 days after publication.