Definitions Relevant to the Act
- "Drugs" includes chemical or biological substances used for disease treatment, prevention, diagnosis in humans or animals, listed in recognized pharmacopoeias, including herbal and traditional medicines.
- "Counterfeit drugs" are products with incorrect, insufficient, or no active ingredients, or fraudulently mislabeled products including fake packaging.
- Covers drugs with unauthorized use of trademarks, repackaged products without authority, unregistered imports (except justified personal imports).
- Defines "brokering," "Bureau," "Department," "business establishment," "owner," and "residence" for regulatory purposes.
Prohibited Acts
- Manufacturing, selling, offering, donating, distributing, brokering, exporting, importing, or possessing counterfeit drugs is unlawful.
- Presence of counterfeit drugs in business premises or vehicles is prima facie evidence of violation.
- Exceptions for legitimate owners possessing counterfeit drugs when properly documented and promptly reported.
- Forgery and unauthorized use of official marks and labels is prohibited.
- Unauthorized production or use of any device to reproduce trademarks or trade names is prohibited.
Persons Liable for Violations
- Manufacturers, exporters, importers, sellers, distributors, traffickers, brokers, possessors of counterfeit drugs liable upon proof of knowledge.
- Managers, operators, lessees of laboratories used in manufacture are liable.
- Owners and managers of establishments found with counterfeit drugs are liable if they cause or allow violation.
- Pharmacists selling or dispensing counterfeit drugs with knowledge are liable.
- Juridical persons held accountable through responsible officers or agents.
Administrative Proceedings
- The Bureau authorized to segregate, seal, and seize suspected counterfeit drugs with a court warrant.
- Search warrant required for private residences or unlicensed premises.
- Upon confirmation that drugs are counterfeit, business establishments may be ordered closed for up to 30 days.
- Parties liable given opportunity to be heard; Bureau may seek law enforcement assistance.
Administrative Sanctions
- Possible sanctions include permanent closure and revocation of business licenses.
- Fines ranging from P100,000 to P500,000 may be imposed.
- Forfeiture and destruction of counterfeit products and related equipment under court order.
- Registered pharmacists may face professional disciplinary actions including license cancellation.
- Criminal charges filed independently from administrative cases; dismissal in criminal does not automatically lift closure.
- Permanent disqualification from operating under the Bureau's supervision is possible.
Penal Provisions
- Possession of counterfeit drugs: imprisonment from six months and one day to six years.
- Manufacture, sale, trafficking, brokering of counterfeit drugs: imprisonment from six years and one day to ten years, and/or fines from P100,000 to P500,000.
- Counterfeit drugs intended for animals: lesser penalty from six months and one day to two years and four months imprisonment.
- Tampering or destroying Bureau seals: severe penalties up to ten years imprisonment.
- Aggravation of illness due to counterfeit drugs: imprisonment from twelve to fifteen years plus fines.
- Death caused by counterfeit drugs: life imprisonment and fines from P500,000 to P5,000,000.
- Higher penalties under other laws prevail if applicable.
Appropriations
- Necessary funds to implement the Act shall be included in the annual General Appropriations Act.
Implementation and Rulemaking
- The Bureau of Food and Drugs (BFAD) is tasked to administer and supervise the law's implementation.
- BFAD to promulgate implementing rules and regulations within 90 days of enactment, effective 30 days after publication.
Constitutional and Legal Provisions
- Invalidity of any clause does not affect the whole Act (Separability Clause).
- Previous inconsistent laws and regulations are repealed or modified accordingly.
Effectivity
- The Act takes effect 15 days following its publication in two national newspapers of general circulation.