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This document details the conditions for implementing a price ceiling in the Philippines. It outlines the factors to consider, such as supply, cost, and transportation, before implementing the price ceiling. It also discusses situations where the head of the DTI can suspend a respondent and the requirements for a respondent to resume trading after a suspension.
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What are the conditions for the price ceiling? The impendency, existence, or effects of a calamity; The threat, existence, or effect of an emergency; The prevalence or widespread acts of illegal price manipulation: The impendency, existence, or effect of any event that ca...
What are the conditions for the price ceiling? The impendency, existence, or effects of a calamity; The threat, existence, or effect of an emergency; The prevalence or widespread acts of illegal price manipulation: The impendency, existence, or effect of any event that causes artificial and unreasonable increase in the price of the basic necessity or prime-commodity; and Whenever the prevailing price of any basic necessity or prime commodity has risen to unreasonable levels. During or before the implementation of the price ceiling, how many months is considered for the price of a certain commodity/ies are given value/appraisal? 3 months Things to determine before implementing the price ceiling: 1. The supply available in the market; 2. The cost to the producer, manufacturer, distributor or seller including but not limited to: o The exchange rate of the peso to the foreign currency with which a basic necessity or prime commodity or any component, ingredient or raw material thereof was paid for; o Any change in the amortization cost of machinery brought about by any change in the exchange rate of the peso to the foreign currency with which the machinery was bought through credit facilities; o Any change in the cost of labor brought about by a change in the minimum wage; and o Any increase in the cost of transporting or distributing the basic necessity or prime commodity to the area of destination. 3. Such other factors or conditions which will aid in arriving at a just and reasonable price ceiling. Upon the discovery of malicious and illegal acts of trade in the industry, the head of the DTI can suspend the respondent for how many days? 10 days If the respondent is found not liable to any offenses alleged against him, how many news papers circulating nationwide should be published before the respondent can sell its products and services again? 2 newspapers, after 3 days of its publication, the respondent can sell again 12 members How many members composed the Price Coordinating Council? 12 members; namely 1. The Secretary of Trade and Industry, as Chairman; 2. The Secretary of Agriculture; 3. The Secretary of Health; 4. The Secretary of Environment and Natural Resources; 5. The Secretary of Local Government; 6. The Secretary of Transportation and Communications; 7. The Secretary of Justice; 8. The Director General of the National Economic and Development Authority; 9. One (1) representative from the consumers' sector; 10. One (1) representative from the agricultural producers' sector; 11. One (1) representative from the trading 12. sector, and 13. One (1) representative from the manufacturers' sector. The sectoral appointees of the Price Coordinating Council are appointed by the President for how many term/s? 1 year The Council shall meet every quarter and whenever the President or the Chairman shall convene the same. Each member shall receive reasonable reimbursements for transportation. True Members from the government sector may designate their representative to the Council. True The Department of Trade and Industry shall provide the secretariat to the Council from its existing organizational structure True How many functions are there for the Price Coordinating Council? 6; Functions of the Price Coordinating Council? 1. It shall coordinate the productivity, distribution and price stabilization programs, project and measures of the Government and develop comprehensive strategies to effect a general stabilization of prices of basic necessities and prime commodities at affordable levels; 2. It shall report to the President and to the Congress of the Philippines the status and progress of the programs, projects, and measures undertaken by each implementing department, agency or office as well as the comprehensive strategies developed by the Council to stabilize the prices of basic necessities and prime commodities; 3. It shall advise the President on general policy matters for promotion and improvement in productivity, distribution and stabilization of prices of basic necessities and prime commodities; 4. It may require from its members or any other government agency such information as it may deem necessary, and conduct public hearings for purposes of assessing the supply, distribution and price situation of any basic necessity or prime commodity; 5. It shall publicize from time to time developments in productivity, supply, distribution and prices of basic necessites and prime commodities, and 6. Whenever automatic price control of basic necessities is imposed under Section 6 of this Act, it shall cause the immediate dissemination of their prevailing prices or the price ceilings imposed in lieu thereof, as the case may be, through publication ina newspaper of general circulation in the area affected, and through broadcast by radio and, whenever the same is deemed to materially make dissemination of the information more effective, by television. It may also disseminate the information through posting in public markets, supermarkets and other public places. What do you call the position or officer being appointed by the President, when he deems it necessary for the duration of the automatic price control under Section 6 of this Act? Price Action Officer How many functions does a Price Action Officer serve? 5 Functions of a Price Action Officer? 1. He shall carry out, implement and enforce the policies and decisions of the Council; 2. He shall coordinate the actions of all implementing agencies involved in the monitoring and investigation of abnormal price movements and shortages of basic necessities and prime commodities; 3. He may call upon any official, agent, employee, agency or instrumentality of the national or local government for any other assistance that he may deem necessary to carry out the purposes of this Act; 4. He shall establish linkage and coordinate with nongovernment or private organizations in the affected are to assist in the monitoring and implementation of price control therein; and 5. He shall exercise such other functions and duties as may be given to him by the President. What office shall conduct independent periodic surveys and studies of the selling prices of all basic necessities and prime commodities all over the country as well as their share or effect on the family income of the different economic groups in the country for purposes of serving as data base for government efforts to stabilize prices, as well as evaluating the effectivity of the same? National Statistics Office or Philippine Statistics Authority Any person who commits any act of illegal price manipulation of any basic necessity or prime commodity under Section 5 hereof shall suffer the penalty of imprisonment for a period of not less than five (5) years nor more than Fifteen (15) years, and shall be imposed a fine of not less than Five thousand pesos (P5,000) nor more than Two million pesos (P2,000,000). Any person who violates Section 6 or 7 (price ceiling) of this Act shall suffer the penalty of imprisonment for a period of not less than one (1) year nor more than ten (10) years of a fine of note less than Five thousand pesos (P5,000) nor more than One million pesos (P1,000,000), or both, at the discretion of the court. Whenever any violation of the provisions of this Act is committed by a juridical person (NGOS, Public Organizations), its officials or employees, or in case of a foreign corporation or association, its agent or representative in the Philippines who are responsible for the violation shall be held liable therefor. In case of aliens (foreigners living in the Philippines without legitimate papers), in addition to the penalty provided in Section 15 or 16 of this Act, the offender shall, upon conviction and after service of sentence, be immediately deported without need of any further proceedings. Any public official or employee who, by reason of his office, with or without consideration, conspires in the commission or knowingly conceals violations of any of the provisions of this Act shall likewise be principally responsible for the violation and shall suffer the additional penalty of permanent disqualification to hold public office. What RA gives birth to: "An Act to Prevent the Excessive Increase in the Price of Certain Prime Necessities of life on the Occasion of a Public Calamity, Penalizing the Violation Thereof, and for other Purposes."? Republic Act No. 4164, Aditional Information: During a calamity, if the price exceeds 25% of its normal value, it is considered a violation. What republic act gives birth to the consumer act of the Philippines? RA no. 7394 Consumer act is the policy of the state to protect the interest of the consumer, promote his general welfare and to establish standards of conduct for business and industry. How many implementing measures are there to achieve the objectives of the consumer act? 5 Enumerate the 5 implementing measures that are there to achieve the objectives of the consumer act. 1. protection against hazards to health and safety 2. protection against deceptive, unfair and unconscionable sales act and practices 3. provision of information and education to facilitate sound choice and the proper exercise of rights by the consumer 4. provision of adequate rights and means of redress 5. involvement of consumer representatives in the formulation of social and economic policies. This means the prepared and through any form of mass medium, subsequently applied, disseminated or circulated advertising matter. Advertisement This means the business of conceptualizing, presenting or making available to the public, through any form of mass media, fact, data or information about the attributes, features, quality or availability of consumer products, services or credit. Advertising This means a service organizations or enterprise creating, conducting, producing, implementing or giving counsel on promotional campaigns or program through any medium for and in behalf of any advertiser. Advertising agency or agent This means the client of the advertising agency or the sponsor of the advertisement on whose account the advertising is prepared, conceptualized, presented or disseminated. Advertiser This term means a purpose related to the production, harvest, processing, manufacture, distribution, storage, transportation, marketing, exhibition, or disposal of agricultural, fishery, or marine products. Agricultural purpose In a consumer credit sale constitute the cash price plus non-finance charges less the amount of any down payment whether in cash or in property traded in, or in a consumer loan the amount paid to, receivable by or payable to buyer or to another person in his behalf. Amount financed It means; any toy or other articles intended to use by children, which are hazardous per se, or which bear or contain substances harmful to human beings or any hazardous substance intended or packaged in a form suitable for use in the household, which the implementing agency by regulation, as classified. Banned hazardous substance What agency confirms whether a product is hazardous and thus should be banned? Department of Health It means quantity of any drug or device produced during a given cycle of manufacture Batch It means any name or designation other than the true name of a person, partnership, corporation or association which is used or signed in connection with its business. Business name, firm name or style It means the amount of money which would constitute full payment upon delivery of the property (except money) or service purchased at the creditor's place of business. Cash price or delivered price It means sales devices whereby a person, upon condition that he makes an investment, is granted by the manufacturer or his representative a right to recruit for profit one or more additional persons who will also be granted such right to recruit upon condition of making similar investments. Chain distribution or pyramid sales scheme Means a consumer sale wherein the seller uses the announcement to create the impression that he is willing to give large discounts or merchandise in order to reduce, dispose or close out his inventory and business. Closing out sale This means sale, lease, exchange, traffic or distribution of goods, commodities, productions, services or property, tangible or intangible. Commerce Means a natural person who is a purchaser, lessee, recipient or prospective purchase, lease or recipient of consumer products, services or credit. Consumer Means any credit extended by a creditor to a consumer for the sale or lease of any consumer product or service under which part or all of the price or payment therefore is payable at some future time, whether in full or installment. Consumer Credit It means a loan made by the lender to a person which is payable in installment for which a finance charge is or may be imposed. This term includes credit transactions pursuant to an open-end-credit plan other than a seller credit card. Consumer Loan It means goods, services and credits, debts, or obligations which are primarily for personal, family, household or agricultural purposes, which shall include but not limited to, food, drugs, cosmetics and devices. Consumer products and services Means a consumer product safety standard described in article 78 or a rule under this chapter declaring a consumer product banned hazardous product. Consumer product safety rule This means; a sale, lease, assignment, award by change, or other disposition of consumer products, including chattels that are intended to be affixed to land, or of services, or of any right, title, or interest therein, except securities as defined in the Securities Act and contracts of Insurance under the Insurance Code or grant of provision of credit to a consumer for purposes that are primarily solicitation or promotion by a supplier with respect to a transaction being referred. Consumer Transaction This means any substance which on contact with living tissue will cause destruction of tissue by chemical action. Corrosive It means: (1) articles intended to be rubbed, poured, sprinkled, or sprayed on, introduce into or otherwise applied to the human body or any part thereof for cleansing, beautifying, promoting attractiveness, or altering the appearance; and (2) article except that such term shall not include soap. Cosmetics This means any consumer product which or the container or labelling which, without authorization, bears the trademark, trade name, or other identifying mark, imprint, or device, or any likeness thereof, of a consumer product, manufacturer, processor, packer, distributor, other than the person or persons who in fact manufactured, processed, packed, distributed such product and which thereby such consumer product manufacturer, processor, packer or distributor. Counterfeit product It means any card, plate, coupon book, or other credit device existing for the purpose of obtaining money, property, labor or services on credit. Credit Card It is the sale of products, services or an interest in land to a person on credit where a debt is payable in installments or a finance charge is imposed and includes any agreement in the form of availment of products or lease of products or real property if the bailee or lessee pays or agrees to pay compensation for use a sum substantially equivalent to or in excess of the aggregate value of the products or real property upon full compliance with the terms of the agreement. Credit Sale It means a transaction between a natural person and a creditor in which real or personal property services or money acquired on credit and the person's obligation is payable in the installment. Credit It means any person engaged in the business of extending credit and shall include any person who as a regular business practice makes loans or sells or rents property or services on a time, credit or installment basis, either as principal or as agent who acquires as an incident to the extension of credit, the payment of finance charge. Creditor This means with respect to a consumer credit transaction, the penalty charge payable by the consumer-debtor for failure to pay an amount or installment in full on the date the same becomes due and demandable, or on or before the period specified for the purpose in the consumer credit sale documents Default or delinquency change Device means an instrument, apparatus, implement, machine, contrivance, implant, in vitro reagent, or other similar or related article, including any component, part or accessory which is: (1) recognized in the official United States Pharmacopoeia-National Formulary (USP-NF) or any supplement to them; (2) intended for use in the diagnosis of disease or other condition or in the cure, mitigation, treatment or prevention of disease, in man or other animals; or (3) intended to affect the structure or any function of the body of man or other animals, and which does not achieve any of its principal intended purposes through chemical action within or on the body of man or other animals and which is not dependent upon being metabolized for the achievement of any of its principal intended purposes. This means any person to whom a consumer product is delivered or sold for purposes of distribution in commerce, except that such term does not include a manufacturer or retailer of such product. Distributor Drug means: (1) articles recognized in the current official United States Pharmacopoeia-National Formulary, official Homeopathic Pharmacopoeia of the United States, official National Drug Formulary, or any supplement to any of them; and (2) articles intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in man or other animals; and (3) articles (other than food) intended to affect the structure or any function of the body of man or animals; and (4) articles intended for use as a component of any articles specified in clauses (1), (2), or (3) but do not include devices or their components, parts or accessories. (5) The term "drug" when used in this Act shall include herbal and/or traditional drug. They are defined as articles from indigenous plant or animal origin used in folk medicine which are: (1) recognized in the Philippine National Formulary; (2) intended for use in the treatment or cure, mitigation, of disease symptoms, injury or bodily defect for use in man; (3) other than food, intended to affect the structure of any function of the body of man; (4) put into finishes, ready to use form by means of formulation, dosage or dosage directions; and (5) intended for use as a component of any of the articles specified in clauses (1), (2), (3) and (4) of this paragraph. This means the date stated on the label of food, drug, cosmetic, device or hazardous substance after which they are not expected to retain their claimed safety, efficacy and quality or potency and after which it is no longer permissible to sell them. Expiry or expiration date This means any substance which has a flash point at or below negative six and six-tenths degrees centigrade as determined by the Tagliabue Open Cub Tester; and term "combustible" shall apply to any substance which has a flash point of above twenty-six and six-tenths degrees to and including sixty-five and five-tenths degrees centigrade as determined by the Tagliabue Open Cub Tester: Provided, That the flammability or combustibility of solids and of the contents of self- pressurized containers shall be determined through methods found by the implementing agency to be generally applicable to such materials or containers, respectively, and established by regulations issued by it. Extremely flammable It means any substance, whether processed, semi-processed or raw, intended for human consumption and includes chewing gum, drinks and beverages and any substance which has been used as an ingredient or a component in the manufacture, preparation or treatment of food. Food This means any substance, the intended use of which results or may reasonably be expected to result, directly or indirectly, in its becoming a component or otherwise affecting the characteristics of any food (including any substance intended for use in producing, manufacturing, packing, processing, preparing, treating, packaging, transporting, or holding food; and including any source of radiation intended for any such use), if such substance is not generally recognized, among experts qualified as having been adequately shown through scientific procedures to be safe under the conditions of the intended use. Food additive It is the identification of drugs and medicines by their scientifically and internationally recognized active ingredients or by their official generic name as determined by the Bureau of Food and Drugs or the Department of Health. Generic Name Means an expressed or implied assurance of the quality of the consumer products and services offered for sale or length of satisfactory use to be expected from a product or other similar specified assurances Guarantee Hazardous substance is: (1) i. Any substance or mixture of substances which is toxic, corrosive, irritant, a strong sensitizer, flammable or combustible, or generates pressure through decomposition, heat or other means, if such substance or mixture or substances any cause substantial injury or substantial illness during or as a proximate result of any customary or reasonably foreseeable ingestion by children. ii. Any substance which the department finds to be under the categories enumerated in clause (1) (i) of this paragraph; iii. Any radioactive substance, if, with respect to such substance as used in a particular class of article or as packaged, the Department, upon approval of the Department determines by regulation that the substance is sufficiently hazardous to require labeling in accordance with this section in order to protect the public health; iv. Any toy or other articles intended for use by children which the director may, by regulation, determine the presence of an electrical, mechanical or thermal hazard. (2) This term shall not apply to food, drugs, cosmetics, and devices nor to substances intended for use as fuels when stored in containers and used in the heating, cooking or refrigeration system of a house, but such term shall apply to any article which is not in itself a pesticide but which is a hazardous substance, as construed in clause (a) of paragraph (1), by reason of bearing or containing such harmful substances described therein. Highly toxic means any substance which has any of the following effects: (1) produces death within fourteen days to one-half or more than one-half of a group of ten or more laboratory white rats each weighing between Two hundred and three hundred grams, at a single dose of fifty milligrams or less per kilogram of body weight, when orally administered; or (2) produces death within fourteen days to one-half or more of a group of ten or more laboratory white rats each weighing between two hundred and three hundred grams, when inhaled continuously for a period of one hour or less at an atmospheric concentration of two hundred parts per million by volume or less of gas or vapor or two milligrams per liter by volume or less of mist or dust, provided such concentration is likely to be encountered by man when the substance is used in any reasonably foreseeable manner, or (3) produces death within fourteen days to one-half or more of a group of ten or more rabbits, when tested in a dosage of two hundred milligrams or less per kilogram of body weight, or when administered through continuous contact with the bare skin for twenty- four hours or less. It means consumer sales or leases which are personally solicited by any person or organization by telephone, person- to-person contact or by written or printed communication other than general advertising or consummated at the buyer's residence or a place of business, at the seller's transient quarters, or away from a seller's regular place of business. Home solicitation sale It means the container or package which is immediately after or near the substance but does not include package liners. Immediate container It means a consumer product which presents an unreasonable risk of death, serious illness or severe personal injury. Imminently hazardous product It means any substance not corrosive within the meaning of paragraph (t) of this Article which, on immediate, prolonged or repeated contact with normal living tissue will induce a local inflammatory reaction. Irritant It means the display of written, printed or graphic matter on any consumer product its immediate container, tag, literature or other suitable material affixed thereto for the purpose of giving information as to identify, components, ingredients, attributes, directions for use, specifications and such other information as may be required by law or regulations. Label/labelling It means all operations involved in the production, including preparation, propagation, processing, formulating, filing, packing, repacking, altering, ornamenting, finishing or otherwise changing the container, wrapper or labeling of a consumer product in the furtherance of the distribution of the same from the original place of manufacture to the person who makes the final delivery or sale to the ultimate consumer. Manufacture It means any person who manufactures, assembles or processes consumer products, except that if the goods are manufactured, assembled or processed for another person who attaches his own brand name to the consumer products, the latter shall be deemed the manufacturer. In case of imported products, the manufacturer's representatives or, in his absence, the importer. Manufacturer It refers to any means or methods used to convey advertising messages to the public such as television, radio, 100 magazines, cinema, billboards, posters, streamers, hand bills, leaflets, mails and the like. Mass media It means a product which, because of the pattern of the defect, the number of defective products distributed in commerce and the severity of the risk or otherwise, creates a substantial risk of injury to the public. Materially defective product It means any hazardous substance intended, or packaged in a form suitable, for use in households, especially by children, the packaging or labeling of which is in violation of the special packaging regulation issued by the 102 Department of Health under ARTICLE 91. Mislabeled hazardous substance New drugs mean: (1) any drug the composition of which is such that said drug is not generally recognized among experts qualified by scientific training and experience to evaluate the safety, efficacy and quality of drugs as safe, efficacious and of good quality for use under the conditions prescribed, recommended, or suggested in the labeling thereof; or (2) any drug the composition of which is such that said drug, as a result of its previous investigations to determine its safety, efficacy and good quality for use under certain conditions, has become so recognized but which has not, otherwise than in such investigations, been used to a material extent or for a material time under new conditions. It means a consumer product which incorporates a design, material or form of energy exchange which has not previously been used substantially in consumer products and as to which there exists a lack of adequate information to determine the quality and safety of such product if used by the consumers. New product Open-end-credit plan means a consumer credit extended on an account pursuant to a plan under which: (1) the creditor may permit the person to make purchases or obtain loans, from time to time, directly from the creditor or indirectly by use of credit card, check or another device, (2) the person has the privilege of paying the balance, or (3) a finance charge may be computed by the creditor from time to time on an outstanding unpaid balance. It means any container or wrapping in which any consumer product is enclosed for use in the delivery or display of that consumer product to retail purchasers. Package/packaging It means any individual, partnership, corporation or association, trust, government or governmental subdivision or any other legal entity. Person It means any substance capable of destroying life or seriously endangering health when applied externally to the body or introduced internally in moderate doses. Poisonous substance It means the direct comparison in any advertisement of a seller's current price for consumer products or services with any other price or statement of value for such property or services expressed in pesos, centavos, fractions or percentages. Price comparison It means any device, written, printed, affixed or attached to a consumer product or displayed in a consumer repair or service establishment for the purpose of indicating the retail price per unit or service. Price tag It means that part of the label that is most likely to be displayed, presented, shown or examined under normal and customary conditions of display for retail or sale. Principal display panel It means any substance which emits ionizing radiation. Radioactive substance It means the sales device employed by the sellers wherein the buyer is induced to acquire goods or services by representing that after the acquisition of the goods or services, he will receive a rebate, commission or other benefit in return for the submission of names of potential customers or otherwise helping the seller enter into other sales, if the receipt of such benefit is contingent on an event occurring after the sale is made. Referral selling It means any business establishment, engaged directly or indirectly, in the repair, service or maintenance of any consumer product. Repair and service firm It means a person engaged in the business of selling consumer products directly to consumers. Reatailer This shall mean an act made by a manufacturer or seller, or their respective representative or agent, to make available consumer products, services or credit to the end consumers under a consumer sale transaction. It shall not include sampling or any distribution not for sale. Sale or distribution This means techniques intended for broad consumer participation which contain promises of gain such as prizes, in cash or in kind, as reward for the purchase of a product, security, service or winning in contest, game, tournament and other similar competitions which involve determination of winner/s and which utilize mass media or other widespread media of information. It also means techniques purely intended to increase the sales, patronage and/or goodwill of a product. Sales promotion Seller means a person engaged in the business of selling consumer products directly to consumers. It shall include a supplier or distributor if: (1) the seller is a subsidiary or affiliate of the supplier or distributor; (2) the seller interchanges personnel or maintains common or overlapping officers or directors with the supplier or distributor; or (3) the supplier or distributor provides or exercises supervision, direction or control over the selling practices of the seller. This shall mean, with respect to repair and service firms, services supplied in connection with a contact for construction, maintenance, repair, processing, treatment or cleaning of goods or of fixtures on land, or distribution of 119 goods, or transportation of goods. Service This means services that are the subject of a consumer transaction, either together with, or separate from any kind of personal property, whether tangible or intangible. Services This means packaging that is designed or constructed to be significantly difficult for children five years of age to open or to obtain a toxic or harmful amount of the substance contained therein within a reasonable time and not difficult for normal adults to use properly but does not mean packaging which all such children cannot open or obtain a toxic or harmful amount within a reasonable time Special packaging This means a set of conditions to be fulfilled to ensure the quality and safety of a product Standard This means any substance which will cause on normal living tissue, allergy or photodynamic quality of hypersensitivity which becomes evident on reapplication of the same substance, to be designated as such by the implementing agency. Before designating any substance as a strong sensitizer, the implementing agency, upon consideration of the frequency of occurrence and severity of the reaction, shall find that the substance has a significant capacity to cause hypersensitivity. Strong sanitizer This means a product which fails to comply with an applicable consumer product safety rule which creates a substantial risk of injury to the public Substandard product This means a person, other than a consumer, who in the course of his business, solicits, offers, advertises, or promotes the disposition or supply of a consumer product or who other than the consumer, engages in, enforces, or otherwise participates in a consumer transaction, whether or not any privity of contract actually exists between that person and the consumer, and includes the successor to, or assignee of, any right or obligation. Supplier This shall mean a machine or technician or any person who works or renders diagnosis or advice in connection with repair, service and maintenance of the consumer products in a repair and service firm Technical person of repair and service enterprise This means any substance other than a radioactive substance which can cause injury, illness or death to man through ingestion, inhalation or absorption through anybody surface Toxic substance This means a word or words, name, title, symbol, emblem, sign or device or any combination thereof used as an advertisement, sign, label, poster or otherwise for the purpose of enabling the public to distinguish the business of the person Trade name or trade mark If the bears or contains any poisonous or deleterious substance which may render it injurious to health; but in case the substance is not an added substance, such food shall not be considered adulterated under this clause if the quantity of such substance does not ordinarily render it injurious to health, it is known as? Adulterated food If the cosmetics bears or contains any poisonous or deleterious substance which may render it injurious to users under the condition of use prescribed in the labeling thereof, or under the condition of use as are customary or usual, it is known as? Adulterated cosmetics Advertising matter/message means any fact, data or information about the features, quality or availability of any consumer product, service or credit, presented and disseminated to the general public or to a target market or audience through mass media and other forms of communication in order to induce sales, use or patronage thereof. Any information or dissemination of information regarding a sales promotion campaign of a consumer product. service or credit shall be considered advertising matter or message of that product. service or credit, as well as of the sales promotion campaign and shall be subject to the rules and regulations governing both. This means a purpose related to the production, harvest, processing, manufacture, distribution, storage, transportation, marketing, exhibition, or disposition of agricultural, fishery or marine products. Agricultural purpose/s This means the use of any of the 'visual arts therefor in the labeling of a consumer product. Artistic presentation This means the first day up to the last day that a winner may claim his prize. Claim period This means a sales promotion scheme such as but not limited to quizzes, contests, and tournaments, whereby participants compete in their or their entry's skill or physical or mental attributes to win the promised prize or reward. Competition This is the agent who sells a consumer product to the general public in a consignment transaction. Consignee He is the owner of a consumer product in a consignment transaction. Consignor This is commercial transaction whereby the owner of a consumer product sells the same to the general public through an agent who may be a retailer or a wholesaler with the conditions that ownership of the goods remains with the owner whether or not a security deposit has been made by the seller and that goods not sold may be returned by the agent to the owner thereof. Consignment A consumer product or service means an act or practice of the producer, manufacturer, supplier or seller, or owner or operator of a consumer service or repair firm of inducing or enticing a consumer to enter into a sales or lease transaction of any consumer product or to avail of its services through concealment, false representation or fraudulent manipulation Deceptive sales act or practice This means an exhibition of the performance of a consumer product on sale or how a consumer service is to be undertaken whether before, during or after the perfection of the sale agreement Demonstration This means a consumer product can no longer be used for the purpose for which it was made, produced or manufactured. Deteriorated product or scrap product This means the sale of consumer products or services by mail, telephone, any form of telecommunication message delivery service or like facilities or through any form of mass media but shall not include general advertising Direct Marketing This means the period covering the first to last day that a participant may join or send or present entries to a sales promotion campaign. Duration of promotion or promotion period This means an instrument by which a participant gains entry, qualifies, pre-qualifies or participates in certain sales promotion campaigns. May be any proof of purchase, use or patronage of a consumer product service or credit such as receipts, coupons, fickets, wrappers, labels, packaging, caps, crowns or any other instrument whether or not accompanied by any proof of purchase, identifying the participant and conforming to the specifications or requirements as laid down in the mechanics. Entry form This means any affirmation or any promise by the seller relating to the thing or the tendency of such affirmation or 145 promise to induce the purchase of the same, and if the buyer purchases the same thereon Express warranty This is a kind of promotion where the promise of a price, reward or benefit is not a consideration for the purchase 148 patronage of a product or service. Instant sales promotion The difference in the cash price and the credit price of the product or service subject of a consumer credit transaction. Interest or time-price differential This means a consumer credit transaction whereby the buyer of a consumer product is allowed to pay by installment or at a future day, whether or not a reservation fee is required, provided that the possession and ownership of the product remains with the seller until full payment at the time agreed upon Lay-away plan This means a written warranty which does not meet the minimum requirements set forth. Limited warranty This means the consuming public, or a class, group or portion thereof to whom an advertisement or sales promotion campaign is directed, for the purpose of inducing the use or purchase of a product or service or participation in a sales promotion campaign, as the case may be Market It means the rules, procedure and criteria by which one may participate and win and by which the winner may claim his prize in a sales promotion campaign Mechanics This refers to a sales scheme whereby a consumer product or a description thereof is sent to a consumer and considered sold to him unless the consumer notifies the seller of his intention not to buy the product or to buy another 152 product offered as alternative thereto Negative options plan The packaging of a consumer product shall be deemed to be non-functionally slack filled if it is filled to substantially less than its capacity for reason other than: (1) protection of the contents of such package; (2) the requirement of the machines used for enclosing the contents in such package, or (3) inherent characteristics of package materials or construction being used. This Act shall be known as the Tobacco Regulation Act of 2003. An act regulating the packaging, use, sale, distribution and advertisements of tobacco products and for other purposes. RA no. 9211 The Tobacco Regulation Act of 2003 was ratified on? June 23, 2003 Refers to any visual and/or audible message disseminated to the public about or on a particular product that promote and give publicity by words, designs, images or any other means through broadcast, electronic, print or whatever form of mass media, including but not limited to signs and billboards. Advertisement Refers to the business of conceptualizing, presenting, making available and communicating to the public, through any form of mass media, any fact, data or information about the attributes, features, quality or availability of consumer 156 products, services or credit. Advertising Refers to a person or entity on whose account or for whom an advertisement is prepared and disseminated by the advertising agency, which is a service established and operated for the purpose of counseling or creating and producing and/or implementing advertising programs in various forms of media. Advertiser Refers to any roll or tubular construction, which contains tobacco or its derivatives and is intended to be burned or heated under ordinary conditions of use. Cigarette Refers to any person to whom a tobacco product is delivered or sold for purposes of distribution in commerce, except that such term does not include a manufacturer or retailer or common carrier of such product. Distributor Refers to any medium of communication designed to reach a mass of people. For this purpose, mass media includes print media such as, but not limited to, newspapers, magazines, and publications; broadcast media such as, but not limited to radio, television, cable television, and cinema; electronic media such as but not limited to the internet Mass media Refers to any person below eighteen (18) years old. Minor Refers to any person or entity, including a repacker, who makes, fabricates, assembles, processes, or labels a finished product. Manufacturer Refers to packs, boxes, cartons or containers of any kind in which any tobacco product is offered for sale to consumers Package Refers to an individual, partnership, corporation or any other business or legal entity. Person Refers to any location at which an individual can purchase or otherwise obtain tobacco products. Point-of-sale Promotion refers to an event or activity organized by or on behalf of a tobacco manufacturer, distributor or retailer with the aim of promoting a brand of tobacco product, which event or activity would not occur but for the support given to it by or on behalf of the tobacco manufacturer, distributor or retailer. It may also refer to the display of a tobacco product or manufacturer's name, trademark, logo, etc. on non-tobacco products. This includes the paid use of tobacco products bearing the brand names, trademarks, logos, etc. in movies, television and other forms of entertainment. Refer to modes of transportation servicing the general population, such as, but not limited to, elevators, airplanes, 167 buses, taxicabs, ships, jeepneys, light rail transits, tricycles, and similar vehicles. Public conveyances Refer to enclosed or confined areas of all hospitals, medical clinics, schools, public transportation terminals and offices, and buildings such as private and public offices, recreational places, shopping malls, movie houses, hotels, restaurants, and the like Public places Refers to any person who or entity that sells tobacco products to individuals for personal consumption. Retailer Refers to the act of carrying a lighted cigarette or other tobacco products, whether or not it is being inhaled or smoked. Smoking Refers to any public or private contribution to a third party in relation to an event, team or activity made with the aim of promoting a brand of tobacco product, which event, team or activity would still exist or occur without such contribution. Sponsorship Refers to agricultural components derived from the tobacco plant, which are processed for use in the manufacturing of cigarettes and other such products. Tobacco Refers to any product that consists of loose tobacco that contains nicotine and is intended for use in a cigarette, including any product containing tobacco and intended for smoking or oral or nasal use. Unless stated otherwise, the requirements of this Act pertaining to cigarettes shall also apply to other such products Tobacco products Refers to any person who plants tobacco before the enactment of this Act and classified as such by the National Tobacco Administration (NTA) Tobacco grower What do you call the agency regulating and administering the tobacco industry? National tobacco administration Refers to the notice printed on the tobacco product or its container and/or displayed in print or aired in broadcast or electronic media including outdoor advertising and which shall bear information on the hazards of tobacco use. Warning Where shall smoking be prohibited? a. Centers of youth activity such as playschools, preparatory schools, elementary schools, high schools, colleges and universities, youth hostels and recreational facilities for persons under eighteen (18) years old; b. Elevators and stairwells; c. Locations in which fire hazards are present, including gas stations and storage areas for flammable liquids, gas, explosives or combustible materials; d. Within the buildings and premises of public and private hospitals, medical, dental, and optical clinics, health centers, nursing homes, dispensaries and laboratories; e. Public conveyances and public facilities including airport and ship terminals and train and bus stations, restaurants and conference halls, except for separate smoking areas; and f. Food preparation areas. Designated Smoking Areas At least 1 sign What do you call the places that smoking, in private or public areas, are permitted? Designated smoking areas How many signs should be posted in a smoking area? At least 1 sign It shall not be a defense for the person selling or distributing that he/she did not know or was not aware of the real age of the minor. Neither shall it be a defense that he/she did not know nor had any reason to believe that the cigarette or any other tobacco product was for the consumption of the minor to whom it was sold. Point-of-Sale establishments offering, distributing or selling tobacco products to consumers, shall post the following statement in a clear and conspicuous manner: "SALE/DISTRIBUTION TO OR PURCHASE BY MINORS OF TOBACCO PRODUCTS IS UNLAWFUL" or "IT IS UNLAWFUL FOR TOBACCO PRODUCTS TO BE SOLD/DISTRIBUTED TO OR PURCHASED BY PERSONS UNDER 18 YEARS OF AGE." The sale or distribution of tobacco products is prohibited within how many meters any point of the perimeter of a school, public playground or other facility frequented particularly by minors? a. 100 meters What are the warning in cigarette packages? a. "GOVERNMENT WARNING: Cigarette Smoking is Dangerous to Your Health;” b. "GOVERNMENT WARNING: Cigarettes are Addictive;" c. "GOVERNMENT WARNING: Tobacco Smoke Can Harm Your Children;" or d. "GOVERNMENT WARNING: Smoking Kills." Upon effectivity of this Act until 30 June 2006, the health warning shall be located on one side panel of every tobacco 184 product package and occupy not less than fifty percent (50%) of such side panel including any border or frame. Beginning 1 July 2006, the health warning shall be located on the bottom portion of one (1) front panel of every tobacco product package and occupy not less than thirty percent (30%) of such front panel including any border or frame. The text of the warning shall appear in clearly legible type in black text on a white background with a black border and in contrast by typography, layout or color to the other printed matters on the package. The health warning shall occupy a total area of not less than fifty percent (50%) of the total warning frame. The warnings shall be rotated periodically, or separately and simultaneously printed, so that within any twenty-four 186 (24) month period, the four (4) variations of the warnings shall appear with proportionate frequency. In addition to the health warning, all packages of tobacco products that are provided to consumers shall contain, on one side panel, the following statement in a clear, legible and conspicuous manner: "NO SALE TO MINORS" or "NOT FOR SALE TO MINORS. The statement shall occupy an area of not less than ten percent (10%) of such side panel 187 and shall appear in contrast by color, typography or layout with all the other printed material on the side panel. For print and outdoor advertisements, the warning frame shall be centered across the bottom of the advertisement and occupy a total area of not less than fifteen percent (15%) of such advertisement including any border or frame. The health warning shall occupy a total area of not less than fifty percent (50%) of the total warning frame. The text of the health warnings shall be clearly visible and legible, printed in a prominent color as appropriate and shall appear in contrast by color, typography or layout with all other printed material in the advertisement. The warning shall not be hidden or obscured by other printed information or images in the advertisement. For television and cinema advertisements, the warning shall be clearly shown and voiced over in the last five (5) seconds of the advertisement, regardless of the duration of the advertisement, even when such advertisement is silent. The health warning shall occupy a total area of not less than fifty percent (50%) of the television screen and shall be clearly visible, legible and audible, in black text on white background or white text on black background. No other images except the warning shall be included in the warning frame. For radio advertisements, the warning stated after the advertisement shall be clearly and audibly voiced over in the last five (5) seconds of the advertisement, regardless of its duration. Advertisements shall not be placed in any printed publication unless there is a reasonable basis to believe that at least seventy-five percent (75%) of the readers of such publication are eighteen (18) years of age and above, and the number of youth who read it constitutes less than ten percent (10%) of all youth in the Philippines. Outdoor advertisements shall not be placed on billboards, wall murals, or transport stops or stations which are within one hundred (100) meters from any point of the perimeter of a school, public playground or other facility frequented 192 particularly by persons below eighteen (18) years of age. Outdoor advertisements shall not, either individually or when placed in deliberate combination with other outdoor tobacco advertising, exceed seventy (70) square meters in total size. Advertisements shall not be broadcast on television, cable television, and radio between seven o'clock in the morning and seven o'clock at night. Who are the members of the Inter-Agency Committee-Tobacco (IAC-Tobacco)? a. Secretary of the Department of Agriculture (DA); b. Secretary of the Department of Justice (DOJ); c. Secretary of the Department of Finance (DOF); d. Secretary of the Department of Environment and Natural Resources (DENR); e. Secretary of the Department of Science and Technology (DOST); f. Secretary of the Department of Education (DepEd); g. Administrator of the National Tobacco Administration (NTA); h. A representative from the Tobacco Industry to be nominated by the legitimate and recognized associations of the industry; and i. A representative from a nongovernment organization (NGO) involved in public health promotion nominated by DOH in consultation with the concerned NGOs. What RA is Gift Check Act of 2017? RA no. 10962 It is any instrument issued to any person, natural or juridical, for monetary consideration or otherwise, that entitles the holder to a discount off a particular good or services, or that may be exchanged for a pre-identified good or services 197 specified on the instrument? Coupon or voucher It is when an issuer voluntarily or involuntarily stopped doing business or has declared bankruptcy/insolvency for whatever purposes or reason. Cessation What is DTI-CPAB? DTI's Consumer Protection and Advocacy Bureau What is DTI-FTEB? DTI's Fair Trade Enforcement Bureau What is DTI-RO? DTI Regional Office (that has jurisdiction over the place of business of the issuer) This refers to the determined date when the instrument ceases its effectivity and can no longer be used. Expiry date It refers to any instrument issues to any person, natural or juridical, for monetary consideration, honored upon presentation at a single merchant or an affiliated group of merchants as payment for consumer goods or services. The instrument may be in the form of paper, card, code, or other device, and shall remain valid until the cessation of business of the issuer. Gift check or gift certificate or gift card Is any person, natural or juridical, who provides the instrument that holds value for which consumer goods or services will be exchanged. Issuer It refers to a person, natural or juridical, in possession of the gift check. Holder Refers to a person, natural or juridical, duly registered and permitted to conduct business under relevant laws. Merchant Refers to goods or services identified beforehand by the consumer or the issuer as eligible for exchange upon presentation of the coupon or voucher. Pre-identified goods or services Refers to official approval or confirmation of the gift check. Revalidation Refer to a merchant or two or more single merchants recognized by the issuer through an agreement, that upon 209 presentation, they will honor the Issuers gift check. Single or affiliated groups of merchants In case of business closure, shall inform in writing the DTI-FTEB/DTI-RO, and the general public through publication accredited merchants, at least two (2) months before the date of closure and encourage all its gift check holders to surrender the same for refund or use, at the option of the consumer Return the unused balance of the gift check within ninety (90) days from the declaration by the DTI of the Issuer's violation of the provisions of the Act or this IRR. What are the guaranteed by law sales promotion? 1. Discounts 2. Premium 3. Raffle 4. Games 5. Contest 6. Redemption 7. Beauty Contest 8. Home Solicitation What law is known to be the RA10642 which endeavors to protect consumers should they purchase new, albeit 213 nonconforming, motor vehicles from manufacturers, distributors, dealers, or retailers? The Lemon Law What motors are covered under the lemon law? Brand new motor vehicles. Parts are new, have never been sold nor operated in any country, common four-wheeled road vehicles such as cars, pick-ups, vans, sports utility vehicles, and Asian vehicles. It specifically excludes motorcycles, delivery trucks, dump trucks, buses, lawn mowers, heavy equipment, and farm equipment.