LLAW-113.04-C Midterm Reviewer PDF

MIDTERM REVIEWER State’s Policy under RA 8762 ○ Promote consumer welfare in attracting, 1st Semester | A.Y. 2024-2025...

MIDTERM REVIEWER State’s Policy under RA 8762 ○ Promote consumer welfare in attracting, 1st Semester | A.Y. 2024-2025 promoting, and welcoming productive MODULE 1: HISTORY AND CONSTITUTIONALITY investment that will: History bring down price for Filipino 1. Retail Trade Nationalization Law (RA 1180) consumer Enacted during the term of Ramon create more jobs Magsaysay promote tourism Foreigners were not allowed to engage in assist small manufacturers any form of retail trade / business. stimulate economic growth Contains a penal provision: punishes enable Philippine goods and services foreigners engaging in any retail business to be globally competitive ○ Not less than 3 years of Liberalization of the Retail Trade Sector imprisonment + fine ○ Encourage a competitive retail trade sector 2. Retail Trade Liberalization Law (RA 8762) in the interest of empowering the Filipino Enacted March 7, 2000 consumer. During the term of Joseph Estrada Allows foreign investors to participate. MODULE 1: DEFINITION OF RETAIL TRADE 3. An Act Amending Republic Act No. 8762 / Retail Retail Trade Trade Liberalization Act of 2002 (RA 11595) Any act, occupation, or calling of habitually Enacted December 10, 2021 selling direct to the general public merchandise, Effect on January 21, 2022 commodities, or good for consumption During the term of Rodrigo Duterte Does not apply to the ff.: Constitutionality 1. Sales by a manufacturer, processor, Espina v. Zamora case laborer, or worker to the general public the Declaration of Policy products manufactured, processed, or Shift of focus products by him if his capital does not ○ Protecting the retailers (RA 1180) → exceed Php 100,000. promoting the interest of the consumers 2. Sales by a farmer or agriculturalist selling (RA 8762) the products of his farm.  3. Sales in restaurant operations by a hotel ○ Person who alters raw material or owner or inn-keeper irrespective of the manufactured / partially amount capital: provided, that the manufactured products in order to restaurant is incidental to the hotel produce finished products for the business; and purpose of being sold / distributed 4. Sales which are limited only to products to others. manufactured, processed, or assembled by Processor a manufacturer through a single outlet, ○ Person who converts raw materials irrespective of capitalization. into marketable form by special Elements: Retail Trade Definition treatment / series of action that 1. Seller is habitually engaging in selling; changes the nature / state of the 2. Selling directly to the public product 3. Object consists of merchandise, commodities, or ○ Ex. slaughtering, milling, pasteurization, goods for consumption. drying, or desiccating, quick freezing, etc. Consumption ○ Mere packaging / classifying is not ○ Utilization of economic goods in the included. satisfaction of want. 2. Sales by a farmer or agriculturalist selling the ○ Resulting in immediate destruction, products of his farm, regardless of capital. gradual decay, or transformation into Farmer / Agriculturalist other goods. ○ Individuals personally engaged in dairy farming, fish farming, Sales Not Considered As Retail aquaculture, poultry, or livestock If a business falls under this, foreign equity is raising. welcomed. ○ Principal income is derived from 1. Sales of a manufacturer, processor, laborer, or this. worker of products manufactured, processed, or 3. Sales arising from restaurant operations by a produced by him to the general public whose hotel owner or inn-keeper irrespective of the capital does not exceed Php 100,000.00 amount of capital, provided that the restaurant Manufacturer is incidental to the hotel business.  4. Sales through a single outlet owned by a In the case of foreign retailers manufacturer of products manufactured, engaged in retail trade through processed, or assembled in the Philippines, more than 1 physical store irrespective of capitalization. 4. Foreign retailers shall be required to 5. Sales to industrial and commercial users / maintain in the Philippines at all times the consumers who use the products bought by them paid-up capital of Php 25,000,000. to render service to the general public and/or 5. Foreign retailers shall submit a produce or manufacture of goods which are in certification from the Bangko Sentral ng told sold by them. Pilipinas (BSP) of the inward remittance of 6. Sales to the government and / or its agencies its capital investment or such other proof and government-owned and controlled certifying that its capital investment is corporations. deposited and maintained in a bank in the Philippines. MODULE 1: WHO MAY ENGAGE IN RETAIL TRADE? EQUITY AND Minimum Paid-Up Capital Requirement CAPITALIZATION REQUIREMENTS ○ Subject to review by DTI, SEC, and National Economic and Development Authority Foreign-Owned Partnerships, Associations, and (NEDA) Corporations ○ Reports its recommendations to Congress. Upon registration with the Securities and ○ Every 3 years. Exchange Commission (SEC) Online Retailing Upon registration with the Department of Trade These applies to foreign retailers that will engage in and Industry (DTI) retail trade through purely online channels: ○ If Foreign-owned single proprietorship 1. Minimum paid-up capital of Php 25,000,000. Conditions 2. Reciprocity requirement 1. A foreign retailer should have a minimum 3. Registration requirements paid up capital of Php 25,000,000. Paid-Up Capital 2. The foreign retailer’s country does not Total investment in a business that has been prohibit the entry of Filipino retailers; and paid-in in a corporation / partnership or invested 3. Minimum investment per store must be at in a single proprietorship least Php 10,000,000 May be cash or property  Includes inward remittance or assigned capital Monitored by the SEC or DTI for foreign corporations. Store May be used to purchase assets for complying ○ Physical outlet established in the country with the investment requirement per store. where goods are sold on a retail basis. Minimum Investment Per Store ○ Warehouses (where goods are stored) for Value of gross assets, tangible or intangible online retailing. Ex. Buildings, leaseholds, furniture, equipment, inventory, common use investments, facilities. MODULE 1: COMPLIANCE REQUIREMENTS AND PROHIBITED ACTS Reflected in the financial statements following Compliance Requirements the accounting standards adopted by SEC/DTI. 1. Registration Requirements ○ Pro-rated among the number of stores being a. Inward Remittance of Foreign Exchange served. issued by a bank Foreign Retailers Format prescribed by BSP Foreign national, partnership, association, or Other proof: corporation ○ Bank certification - certifying ○ Must be formed and organized under the that such capital investment laws of the Philippines. (RTLA) is maintained and deposited ○ Must be registered with the SEC + comply in a bank in the Philippines. with minimum paid-up capital & b. Certificate of Reciprocity reciprocity requirements (RA 11595) From the proper official of the home Owns more than 40% of the capital stock state of the foreign retailer; or outstanding Local embassy of the home state in Entitled to vote the Philippines Minimum Paid-Up Capital Must state that such state provides Conditions reciprocity to Filipinos 1. Foreign-owned retail enterprises → own at Must be submitted to the: least 25,000,000 ○ Company Registration and 2. Retail trade in more than 1 physical store Monitoring Department (SEC) → minimum investment per store of at ○ National Capital Region Office / least Php 10,000,000 regional / provincial offices (DTI) 2. Labor Policy Financial statements must reflect: Employment of foreign nationals by foreign a. Maintenance and actual use of the retailers shall comply with the Labor’s Code paid-up capital requirement determination of nonavailability of a b. Number and location of stores, competent, able, and willing Filipino investment per store, and the status citizen. of operations per store Pertains to the State Policy under the c. Stock inventory of locally Constitution to promote the preferential manufactured products, if applicable use of Filipino labor. d. Such other reports prescribed by SEC 3. Promotion of Locally Manufactured Products or DTI, as applicable Foreign retailers are encouraged to have Prohibited Acts stock inventory of products which are Qualified foreign retailers are not allowed to made in the Philippines engage in certain retailing activities outside their Maintained through any of the ff.: accredited stores. a. Designation of a store space as ○ Ex. Mobile / rolling stores or carts, use of sales Filipino section representatives, door-to-door selling, sari-sari b. Use of locally made packaging stores. materials (ex. Bags, boxes, containers) c. Utilization of locally sourced raw MODULE 1: IMPLEMENTING AGENCIES materials in the production of goods Securities and Exchange Commission (SEC) d. All other arrangements that will Monitors and regulates partnerships, promote locally manufactured associations, or corporations products Department of Trade and Industry 4. Reportorial Requirement Monitors and regulates sole proprietorships All registered retail enterprises are required to submit annual reporting requirements MODULE 1: ANTI-DUMMY LAW to the SEC / DTI. Anti-Dummy Law ○ With an attachment to audited Applies to corporations engaged in partially financial statements certified by a nationalized activities that are subject to Filipino responsible officer.  ownership requirement to the extent of at least ○ In a number proportionate to their actual 60% of the capital of the corporation. and allowable equity in the company. A person who exercises or enjoys a right / Penalties of the ADL franchise / property / business Imprisonment: 5-15 years ○ Reserved by law to Philippine citizens Not less than the value of the right / franchise / ○ Or reserved to corporations / associations privilege; and where at least 60% of the capital is owned Not less than Php 5,000. by Filipino citizens. Corporation Committed ADL Violation ○ Prohibited from: ○ Corporation shall be dissolved. 1. Permitting / allowing the use, Also subject by persons who knowingly aids, exploitation, or enjoyment of such assists, and abets in the planning, right, franchise, privilege, property, or consummation, or perpetration of any of the business by a person, corporation, foregoing acts. or association not possessing the Significant Indicators / Badges of “Dummy Status” qualifications prescribed by law. 1. Foreign investor provides practically all the 2. In any manner permitting or funds for the joint investment undertaken by allowing any person not so Filipino businessmen and their foreign partner. qualified to intervene in the 2. That the foreign investors undertake to provide management, operation, practically all the technological support for the administration, or control of such joint venture. right, franchise, privilege, property, or 3. That the foreign investors, while being minority business, whether as an officer, stockholders, manage the company and prepare employee, or laborer, with or without all economic viability studies. remuneration. MODULE 1: DOING BUSINESS IN THE PHILIPPINES Note Foreigners may hold interests in corporations, Foreign nationals may serve as members of the partnerships, and other entities in the Philippines. board / governing body of corporations engaged PROVIDED these entities are not engaged in any activity in partially nationalized activities that is reserved by law only to Philippine citizens / entities that are wholly owned by Philippine citizens.  Maximum amount of foreign equity depends on the type of wholly Filipino-owned Philippine activity the company is engaged in. corporations. Rights of Former Natural-Born Filipinos MODULE 1: PENALTIES FOR VIOLATION OF THE RETAIL TRADE LAW Any natural-born Filipino citizen who has lost Violation of Any Provisions of the Retail Trade Law their Philippine citizenship may be allowed to Imprisonment: 4-6 years engage in retail trade, provided that they reside in Fine: Php 1,000,000 - Php 5,000,000 the Philippines. Partnerships, Associations, Corporations ○ A former natural-born Filipino citizen is ○ Penalty is imposed upon its partners / deemed residing in the Philippines if they president / directors / general manager / physically stay in the country for an other officers responsible for the violation aggregate period of at least 180 days Not a citizen of the Philippines within a given year. ○ Immediate deportation after service of sentence. MODULE 1: AUGUST 12 POWERPOINT Public Employee / Officer History of the Retail Trade Legal Regime ○ Suffer dismissal and permanent 1. RA 1180 (1954): Retail Trade Nationalization Act disqualification from public office. Nationalized retail trade Existing Retail Trade Enterprises 2. Constitution (1987) Minimum investment per store requirement shall Enunciated consumer protection in the not apply to foreign investors who are legitimately general provisions. engaged in retail trade and were not required to Article XVI, Section 9: The State shall protect comply with this requirement at the time of consumers from trade malpractices and from effectivity of RA 11595. substandard or hazardous products. A foreign retailer that has pre-qualified and/or 3. RA 8762 (2000): Retail Trade Liberalization Act registered prior to the effectiveness of RA 11595 is Liberalized retail trade required to maintain the minimum paid-up 4. RA 11595 (2021): An Act Amending RTLA capital imposed under the RTLA. Further relaxed and refined the ○ Under RTLA, Retail trade enterprises with a liberalization approach. paid-up capital of less than USD 2.5 million Putting Consumer-Related Laws in Context were reserved to Filipino citizens and 1. Seller  Retail Trade Liberalization Law Pursuant to this Policy, the Philippine retail industry is hereby Anti-Dummy Act liberalized to encourage Filipino and foreign investors to Price Act forge an efficient and competitive retail trade sector in the No Shortchanging Law interest of empowering Filipino consumers through lower Consumer Act prices, higher quality of goods, better services, and wider 2. Goods and Services choices. Food Safety Act How to achieve the purpose Lemon Law (Automobiles) What benefits are envisioned to redound (contribute Financial Products and Services Consumer greatly) to consumers Act 3. Buyer Unpacking the First Paragraph Magna Carta for Disabled Persons Expanded Senior Citizens Act Consumer Act RA 8762: Section 2 (State Policy) First Paragraph It is the policy of the State to promote consumer welfare in attracting, promoting, and welcoming productive investments that will bring down prices for Filipino consumers, create more jobs, promote tourism, assist small manufacturers, stimulate economic growth, and enable Unpacking the Second Paragraph Philippine goods and services to become globally competitive through the liberalization of the retail trade sector Purpose of the law from the national perspective What it seeks to achieve for the nation. Second Paragraph  3. The foreign retailer’s country of origin does not prohibit the entry of Filipino retailers. 4. Minimum investment per store of Php 10,000,000 In cases of foreign retailers engaged in retail trade through more than 1 physical store. Exemptions ○ Does not apply to foreign retailers / investors who are legitimately What is the Retail Trade Business? engaged in retail trade + were not Act, occupation, calling of habitually selling direct required to comply with this at the to the general public merchandise, commodities, time of the effectiveness of RA 11595 and goods for consumption. + qualification to engage in retail ○ Green = seller-focused trade under RA 8762 is submitted to ○ Orange = object-focused the DTI ○ Pink = consumer-focused MODULE 1: AUGUST 15 POWERPOINT Exempt Transactions of Retail Trade 1. Sales by a manufacturer, processor, laborer, or worker to the general public the products manufactured, processed, or products by him if his capital does not exceed Php 100,000. 2. Sales by a farmer/agriculturalist selling the products of his farm, regardless of capital. 3. Sales in restaurant operations by a hotel owner or inn-keeper irrespective of the amount of capital; Provided, that the restaurant is RA 11595 Amended Requisites incidental to the hotel business. 1. Prior registration with SEC or DTI 4. Sales through a single outlet by a manufacturer 2. Minimum paid-up capital of Php 25,000,000. of products manufactured, processed or  assembled in the Philippines, irrespective of 3. The foreign retailer’s country of origin does capitalization. not prohibit entry of Filipino retailers* 5. Sales to the industrial or commercial users or 4. If foreign retailers are engaged in retail consumers who use the products bought by them trade through more than 1 physical store → to render service to the general public and/or minimum investment per store must be at products or manufacture of goods which are, in least Php 10,000,000. turn, sold by them. Take note of exemptions 6. Sales exclusively to government and/or its Breaking Down: Registration Requirement to Engage or agencies and government-owned and controlled Invest corporations. Prior registration with the SEC & DTI Foreigners Engaged in Retail Trade SEC Foreign Retailer ○ Partnerships ○ Foreign national, partnership, association, ○ Associations or corporation of which more than 40% of ○ Corporations the capital stock outstanding and entitled DTI to vote is owned and held by such foreign ○ Single proprietorships national, engaged in retail trade. Breaking Down: Capital Requirement Requirements / Qualifications 1. Required to be maintained in the Philippines at 1. Prior registration with the SEC and DTI, all times. depending on the type of business 2. Actual use in Philippine operations of the min organization* paid up capital to be monitored by SEC or DTI. 2. Minimum Paid-Up capital of Php 3. Paid up capital may be used to purchase assets 25,000,000.* for purposes of complying with the minimum Not applicable to corporations investment per store requirement. engaged in retail trade of which at 4. Minimum paid up capital requirement subject to least 60% of the capital stock review by SEC, DTI, and NEDA every 3 years outstanding and entitled to vote is 5. Notification to SEC / DTI to repatriate capital and owned and held by citizens of the cease operations in the Philippines. Philippines.  6. Failure to maintain in the Philippines the paid-up 1. Engaging in retail trade in more than 1 physical capital prior to notification may result in penalties store. or restrictions on activities. Store Evidence at Registration ○ Physical outlet established in the 1. Certification from BSP of inward remittance of country where goods are sold on a capital investment; OR retail basis. 2. Other proof certifying that the capital investment is ○ Warehouse where goods are stored deposited and maintained in a bank in the [ONLINE RETAILING]. Philippines. 2. Pertains to the value of gross assets, tangible or Breaking Down: Reciprocity Requirement intangible Reciprocity Requirement Ex. buildings, leaseholds, furniture, equipment, ○ Relationship between 2 States where each inventory of them, by their respective laws / treaty, 3. Includes common use investments and facilities allows the citizens or nationals of the other Ex. admin offices, warehouses, preparation or to undertake retail trade in their own storage facilities territories. 4. Accounting standards applied are those of SEC 1. Foreign retailer must submit a Certificate of and DTI, as applicable Reciprocity from: Prorated among the number of stores Must indicate that such State provides reciprocity to Filipinos Compliance Requirements in Relation to State Policy a. Proper official of the home state of the Objectives foreign retailer; OR STATE POLICY COMPLIANCE REQUIREMENTS b. Local embassy of the home state in the Philippines. Registration with the SEC/DTI → Certification of inward Breaking Down: Minimum Investment Per Store remittance or other proof of Not applicable to corporations engaged in retail capital investment trade of which at least 60% of capital stock → Certification of reciprocity outstanding and entitled to vote is owned and held Labor Policy → Determination of by citizens of the Philippines. non-availability of Filipino citizen Promotion of Locally → Foreign retailers Manufactured Products encouraged to have a stock Implementing Agency inventory of locally made 1. SEC products: Partnerships A. Designation of store Associations space as Filipino Corporations section 2. DTI B. Use of locally made packaging Single proprietorships C. Utilization of locally Regulatory Activities sourced raw materials ○ Registration + record of registered entities in the production of ○ General monitoring (ex. Use of capital) goods ○ Accounting standards as regards to D. Other arrangements minimum investment per store that will promote locally manufactured ○ Recipient of reporting requirements products ○ Power of inspection of records, inventory, and books of account of foreign retailer Reportorial Requirement → Annual reporting ○ Formulate list of prohibited activities. requirement to SEC/DTI attaching to the audited financial statements: MODULE 1: ANTI-DUMMY LAW PPT (COMMONWEALTH ACT NO. 108) A. Maintenance and Case 1: Natural Persons actual use of paid-up A. Applicability capital requirement Citizenship (Philippine or not) as a requisite B. Number and location of for the exercise / enjoyment of a RFP (Right, stores, investment per Franchise, Privilege) store, and status of B. Who are Liable? operation of each store C. Stock inventory of 1. Any citizen of the Philippine or of any locally manufactured specific country who allows his name / products, if applicable citizenship to be used for the purpose of D. Other reports evading citizenship requirement prescribed by SEC/DTI 2. Any alien or foreigner profiting thereby.  C. Evidence 2. Leases, or in any other way, transfers / Citizen had, at the time of the acquisition of conveys said right, franchise, privilege, his holdings in the corporations / property, or business to a person, associations referred to, no real or personal corporation, or association not otherwise property, credit, or other assets the value of qualified under the Constitution, or the which shall at least be equivalent to said provisions of existing laws. holdings. 3. In any manner permits or allows any Case 2: Juridical Persons person not possessing the qualifications A. Applicability required by the Constitution, or existing For corporations / associations that may laws to acquire, use, exploit, or enjoy a exercise RFPs, a certain percentage of its right, franchise, privilege, property, or capital must be owned by citizens of the business, the exercise of which are Philippines or of any other country. expressly reserved by the Constitution or B. Act existing laws to citizens of the Philippines Falsely stimulate the existence of such or of any other specific country to intervene minimum stock or capital as owned by in the management, operation, citizens for the purpose of evading said administration or control thereof, whether provision. as an officer, employee, or laborer therein C. Who are Liable? with or without remuneration except Corporation shall be dissolved technical personnel whose employment President, managers, directors, or trustees may be specifically authorized by the Case 3: Unlawful Use, Exploitation, or Enjoyment Secretary of Justice, and any person who A. Applicability knowingly aids, assists, or abets in the Case 1 & 2 planning, consummation, or perpetration B. Acts considered Violations of any of the acts herein above. 1. Allows the use, exploitation, and enjoyment C. Liability thereof by a person, corporation, or Corporations / associations / partnerships association not possessing the requisites shall be criminally liable. prescribed by the Constitution or the laws Corporation shall be dissolved of the Philippines. D. Additional Penalty  Person / corporation / association will A. Informer forfeit the RFP and the property or business Furnishes to the Government original enjoyed or acquired in violation hereof. information leading to said conviction Case 4: Spouse of Public Official Living Together Ascertained and named in the judgment of A. Applicability the court. Spouse of public official (both live together) B. IF Informer is a Dummy B. Additional Penalty Voluntarily take the initiative of reporting to Cause for dismissal of the public official the proper authorities any violation of the Case 5: Prima Facie Evidence of Violation provisions of this Act A. Scenario Assist in the prosecution, resulting in the Filipino citizen in a common-law conviction of any person / corporation relationship with an alien profiting thereby or involved therein B. Act Exercise, possession, or control by the C. Reward Filipino citizen in the above relationship of a 25% of the Fine Imposed [INFORMER] right, privilege, property, or business, the 25% of the fine actually paid to / received by exercise or enjoyment of which is expressly the government + exemption from penal reserved by the Constitution or laws to liabilities [INFORMER IS A DUMMY] citizens. Penalty in All Cases MODULE 1: CASES A. Imprisonment ★ Espina v Zamora (Constitutionality) 5-15 years Argument B. Additional Penalty ○ Challenges the constitutionality of RA 8762: Not less than the value of the right, Retail Trade Liberalization Act of 2000 – franchise, or privilege which is enjoyed or signed by Joseph Estrada acquired in violation of the provisions Allowed foreign participation in retail Not less than Php 5,000 in all cases trade based under 4 categories C. Corporations based on investment amounts Dissolution after court proceedings. Informer’s Reward  ○ Violates the Philippine Constitution → or manufacture goods which are in turn mandates a self-reliant and independent sold to them.” national economy controlled by Filipinos. Ruling ○ Contended that the law would lead to alien ○ “Retail” is associated with and limited control of retail trade / harm local retailers / goods for personal / family / household + improperly imposed use / consumption and utilization. Ruling ○ Refers to the final and end uses of a product ○ Ruling that the petitioner lawmakers did which directly satisfy human wants and not have legal standing to challenge the desires and are needed for home and daily law, which the Court ignored for the purpose life. of addressing the issue. Ultimately, the ○ = Union Carbide Philippines, Inc. is not constitutionality of RA 8762 was upheld due engaged in retail business to its promotion of a balance between ★ Goodyear Tire v Reyes, Sr (Definition of Retail Trade) protecting local businesses and allowing Argument foreign investments. ○ Goodyear Tire and Rubber Co argued that ○ The Court ruled that while the Constitution they were not engaged in retail business for mandates the development of a self-reliant certain types of consumers. + independent national economy controlled ○ Retail business shall not include by Filipinos, it does not impose a policy on Selling to industrial / commercial Filipino monopoly. users or consumers who use the ★ Balmaceda v Union Carbide Philippines (Definition of products bought by them to render Retail Trade) service to the general public and/or Argument to product or manufacture goods ○ Union Carbide of the Philippines is not which are in turn sold to them. engaged in the retail business ○ Goodyear sold their products to companies ○ Retail business excludes “a manufacturer that render essential services to third or processor selling to the industrial and parties and the general public for commercial users or consumers who use compensation. the products bought by them to render Ruling service to the general public and/or product  ○ Not engaged in retail business therefore Ruling EXCEPT to its sales to its employees and ○ SC ruled that B.F. Goodrich is not engaged in officers. retail business, except for its sales to ★ Marsman and Co. Inc., vs. 1st Coconut Central Co, Inc. employees and officers. (Definition of Retail Trade) ★ Gamboa v Teves (Definition of Retail Trade) Argument Argument ○ Sale of a diesel generating unit. ○ Nullity of the sale of share of stock from ○ First Coconut Central Co. entered into an PTIC because this would result a foreign installment purchase with Madrid Training common shareholdings of 51.56% which is Initial down payment was made over the 40% constitutional limit Partial payment of Php 2,000 leaving Ruling a balance of Php 15,000 ○ Capital = shares with voting power Respondent defaulted on payments, Control of the company is exercised Marsman then filed a complaint through voting for directors CA declared the sale void because of: ○ Public utilities are controlled by Filipinos, ○ Retail Trade Nationalization Law requiring at least 60% of voting shares to ○ Anti-Dummy Law be owned by Filipino citizens or Ruling corporations. ○ Supreme Court overturned the CA’s ★ SEC OGC Opinion No. 24-17 decision Sharp PH asked the SEC if its plan to sell products ○ Sale of the diesel generating unit online through Lazada, managed by a single outlet, was not classified under “retail qualifies for exemption under the RTLA regardless business” and instead, as a of capitalization. producer good for industrial use. SEC stated that “store” refers to physical location. ★ BF Goodrich Philippines, Inc. v. Reyes, Sr. (Definition of Sharp PH is not exempted with the assertion that Retail Trade) online sales does not mean the “single outlet” Argument exemption for physical stores. ○ BF Goodrich is not engaged in retail ★ SEC OGC Opinion No. 18-10 business as it sells rubber products who in turn sells it to others.  ○ Medtronic-US created a Philippine subsidiary, Right to be protected against the marketing of Medtronic-PH with all its capital stock owned by goods or the provision of services that are Medtronic-US hazardous to health and life. ○ Is Medtronic-PH considered a foreign company? Look forward to: Although Medtronic-PH is a domestic ○ Manufacturers of consumer products corporation by law, it is considered a undertake extensive safety and foreign-owned company because 99.99% of performance testing before selling their its stock is owned by Medtronic-US. products in the market. ○ Is Medtronic-PH allowed to sell directly to end-users ○ Labels which contain the proper without violating Philippine trade laws? information, its use and how to operate it, Its primary business is wholesale, so does and also precautions or warning signs Medtronic-PH violate by selling directly to ★ Right to Information end-users? The right to be protected against fraudulent / Retail transactions involve sales to the dishonest / misleading general public for personal use. Selling to advertising/labeling/promotion hospitals and laboratories, however, are not Right to be given the facts and information considered retail. needed to make an informed choice. If Medtronic-PH is selling to hospitals and Look forward to: laboratories → it does not violate trade laws. ○ Complete information about the product to be purchased. MODULE 2: CONSUMER RIGHTS ★ Right to Choose ★ Right to Basic Needs ○ Right to choose products at competitive prices The right that guarantees survival, adequate food, with an assurance of satisfactory quality. clothing, shelter, healthcare and sanitation. ○ Look forward to: Look forward to: Wide array of goods and services which ○ Availability of basic and prime are offered in the market with diverse commodities to consumers at affordable brands, sizes, shapes, and colors with prices and good quality. differences in the price, quality, and use. ★ Right to Safety ★ Right to Representation  ○ Right to express consumer interests in the ★ Right to A Healthy Environment making and execution of government policies. Right to live and work in an environment which is ○ Look forward to: neither threatening or dangerous, and which Legislators would propose laws that would permits a life of dignity and well-being ensure that consumers have the chance to Look forward to: live a better life by getting the best value ○ Government exerting an iron hand for their hard-earned peso. regarding the alarming increase in the ★ Right to Redress degradation of the environment ○ The right to be compensated for ○ Constant monitoring of our seas, coral misrepresentation, shoddy goods, or reefs, forest, and waste disposal practices unsatisfactory services. of factories to check if there is a violation of ○ Look forward to: the laws on environmental protection “No Return, No Exchange” Act Replace defective goods MODULE 2: CONSUMER RESPONSIBILITIES ★ Right to Consumer Education ★ Critical Awareness ○ The right to acquire the knowledge and skills Responsibility to be more alert necessary to be an informed consumer. Questioning about the use, price, and quality of ○ Three Sectors of Society goods and services Embark on an information campaign ★ Action through tri-media and consumer related Responsibility to assert ourselves and act to issues. ensure that we get a fair deal. 1. Business ★ Social Concern 2. Government Responsibility to be aware of the impact of our 3. Consumer consumption on other citizens, especially the A series of seminars, conferences, fora, training, poor, exploited, disadvantaged, or powerless and public hearings for the welfare of the groups, whether in the local, national, or consumers. international community. Consumer education being integrated in the ★ Environmental Awareness school curriculum from elementary to secondary levels as mandated by the RA 7394.  The responsibility to understand the 2. Protection against deceptive, unfair, and environmental consequences of our unconscionable sales acts and practices consumption. 3. Provision of information and education to Individual and social responsibility to conserve facilitate sound choice and the proper exercise of our natural resources and protect the earth for rights by the consumer future generations. 4. Provision of adequate rights and means of ★ Solidarity redress; and The responsibility to organize together as 5. Involvement of consumer representatives in the consumers to develop the strength and influence formulation of social and economic policies. (Art. to promote and protect our interests. 2) ★ Construction and Interpretation MODULE 3: CONSUMER ACT OF THE PHILIPPINES Best interest of the consumer shall be considered ★ Constitutional Mandate in the interpretation and implementation of the Consumer protection = constitutional mandate provisions of RA 7394 (Art.3) Article XVI, Section 9 ★ Implementing Agencies ○ “The State shall protect consumers from trade 1. Department of Health malpractices and from substandard or Food, drugs, cosmetics, and substances hazardous products” 2. Department of Agriculture ★ Consumer Act of the Philippines (RA 7394) Products related to agriculture Principal law for consumer protection in the 3. Department of Trade and Industry Philippines Respect for other consumer products. Effectivity date: July 15, 1992 ★ Declaration of Basic Policy MODULE 3: WHO IS A CONSUMER? Law anchored on the basic policy of the State to: ★ Consumer ○ Protect the interests of the consumer Natural person who is a purchaser, lessee, ○ Promote the general welfare recipient, or prospective purchaser, lessee, or ○ Establish standards of conduct for business recipient of consumer products, services, or credit. and industry Individual human being ★ State’s Objectives Excludes juridical persons (ex. Corporations, 1. Protection against hazards to health and safety partnerships)  ○ Side note: Juridical persons are covered until a. Food and Drug Administration retail trade but not consumer act. Establishes standards for processed food, drugs, and cosmetics MODULE 3: CONSUMER PRODUCT QUALITY AND SAFETY 2. Department of Agriculture ★ Consumer Products & Services a. Bureau of Agriculture and Fisheries Product “Goods, services, and credits, debits, or obligations Standards which are primarily for personal, family, household, or Develops standards for agriculture agricultural purposes, which shall include but not and agriculture-related products limited to food, drugs, cosmetics, and devices.: including fruits, vegetables, and grains. It is the duty of the State to ensure consumer product 3. Department of Trade and Industry quality and safety (Article 5) + adopt consumer quality and a. Bureau of Philippine Standards safety standards (Article 7) Serves as the National Standards Body (NSB) of the Philippines ★ Prohibited Acts (Article 18) Mandated to develop, promulgate, Summary and implement standards for all A. Offer for sale any product not conforming to products in the Philippines quality or safety standards of this Act. Promote standardization activities B. Offer for sale any product banned in this Act. in the country C. Refuse compliance with legal requirements Ensure the manufacture, production, 1. Refuse access to pertinent records and distribution of quality products 2. Refuse to permit entry / inspection for the protection of the consumer. D. Failure to comply with regulations DOH and DA work with DTI on this 1. Notifications of substantial product area. hazards 2. Recall, repair, replacement, or refund Food standards are published as Philippine E. Fail to comply with the rule prohibiting National Standards. stockpiling. ★ Implementing Agencies MODULE 3: HAZARDOUS SUBSTANCES 1. Department Of Health ★ Hazardous Substances  Any substance / mixture of substance which is Toys or other children’s items that could toxic, corrosive, irritant, a strong sensitizer, pose electrical, mechanical, or thermal flammable or combustible, or generates pressure hazards. through decomposition, heat, or other means ★ Banned Hazardous Substances ○ Toxic - harmful when ingested / inhaled / A. Toys / Articles for Children absorbed. Inherently dangerous or contains harmful ○ Corrosive - capable of causing severe substances to humans. damage to living tissue Objects intended as plaything for children ○ Irritant - causes inflammation or below 14 years of age. discomfort upon contact Do not apply to toys NOT intended for Risk to children children (ex. collectibles) ○ If such substance / mixture of substance B. Hazardous Substances for Household Use may cause substantial injury / illness Packaged in a form intended for household during or as a proximate result of any use customary or reasonably foreseeable Despite warning labels ingestion by children. But classified by the implementing agency Does not apply to food, drugs, cosmetics, and as banned hazardous substances. devices nor to substances used as household fuels. Exceptions ○ Ex. fuels stored in containers, heating, cooking, 1. Hazardous substance is necessary for etc. item’s functional purpose; and Applies to products that are not a pesticide itself, 2. Item bears appropriate labels with adequate but contains harmful substances. directions and warnings for safe use. with 1. Radioactive Substances clear warnings and directions for safe use If the Department determines that a ★ Prohibited Acts radioactive substance poses a health risk → Summary must be labeled properly to protect the A. Introduce into commerce any mislabeled / public health. banned hazardous substances 2. Toy / Articles Intended for the Use of Children B. Alter / Mutilate / Destroy / Obliterate / Remove the label of a mislabeled / banned hazardous substance.  Done while the substance is held for ○ May be committed before, during, or after a sale. transaction. C. Acquiring / Receive in commerce a ○ Whenever the producer, manufacturer, mislabeled / banned hazardous substance supplier, or seller through concealment, Physical handover of the hazardous false representation, or fraudulent substance manipulation, induces a consumer to D. False guaranty or undertaking enter into a sales or lease transaction of Guaranty / Undertaking any consumer product or service. ○ False commitment / Act / Practice of a seller is deceptive when it assurance represents that: Exemption: person who relied on a 1. A consumer product / service has the guaranty / undertaking in good faith sponsorship, approval, performance, E. Introduce / Receive in Commerce a reused characteristics, ingredients, accessories, container uses, or benefits it does not have. Reused Container that previously 2. A consumer product / service is of a held food, drugs, cosmetics, or particular standard, quality, grade, style, or devices. model when in fact it is not. Or containers identified as a food, 3. A consumer product is new, original, or drug, cosmetics, or device container unused, when in fact, it is in deteriorated, Does not diminish the danger posed altered, reconditioned, reclaimed or by hazardous substances involved second-hand state. → considered as mislabeled 4. A consumer product / service is available to hazardous substances. the consumer for a reason that is different from the fact. MODULE 3: DECEPTIVE, UNFAIR, AND UNCONSCIONABLE SALES ACTS 5. A consumer product / service has been AND PRACTICES supplied in accordance with the previous representation when in fact it is not. ★ When is A Sales Act or Practice Considered Deceptive? 6. A consumer product / service can be Deceptive Act supplied in quantity greater than the supplier intends  7. A service / repair of a consumer product to reasonably protect his interest because exists when in fact it does not. of his inability to understand the 8. A specific price advantage of a consumer language of an agreement, or similar product exists when in fact it does not. factors; 9. The sales act / practice involves or does not 2. That when the consumer transaction was involve a warranty, a disclaimer of entered into, the price grossly exceeded warranties, particular warranty terms or the price at which similar products or other rights, remedies or obligations if the services were readily obtainable in similar indication is false; transaction by like consumers; 10. The seller / supplier has a sponsorship, 3. that when the consumer transaction was approval, or affiliation he does not have. entered into, the consumer was unable to receive a substantial benefit from the ★ When is A Sales Act or Practice Considered Unfair or subject of the transaction; Unconscionable? 4. that when the consumer was entered into, May occur before, during, or after a consumer the seller or supplier was aware that there transactional. was no reasonable probability or payment By taking advantage of of the consumer’s of the obligation in full by the consumer; physical or mental infirmity, ignorance, and illiteracy, lack of time, or general conditions of the 5. that the transaction that the seller or environment or surroundings, induces the supplier induced the consumer to enter consumer to enter into a sales or lease into was excessively one-sided in favor of transaction grossly inimical to the interests of the seller or supplier. the consumer or grossly one-sided in favor of the producer, manufacturer, distributor, supplier, or ★ Pyramid Sales seller. Chain distribution plans or pyramid schemes shall Act / Practice of a seller is unfair or not be employed in the sale of consumer products. unconscionable when it represents that: 1. That the producer, manufacturer, ★ Home Solicitation Sales distributor, supplier, or seller took ★ Referral Sales advantage of the inability of the consumer Not be used in the sale of consumer products.  Exceptions System of weights and measures to be used for ○ Seller executes in favor of the buyer a all products / commodities / materials / utilities written undertaking that will grant a / services / and commercial transactions, in all specified compensation / other benefit to contracts / deeds / other official and legal said buyer in return for each and every instruments and documents shall be the metric transaction consummated by said seller system and their implementing rules and with the persons referred by said buyer or regulations. for subsequent sales that said buyer has The DTI shall adopt standard measurements for helped the seller enter into. garments, shoes, and other similar consumer ○ Summary: The seller agrees in writing to give the products. buyer a reward or benefit for each sale the seller Summary: This statement means that the metric system makes through people the buyer refers to, or for is the official system of measurement to be used for all future sales that the buyer helps the seller products, commodities, materials, utilities, services, and secure. commercial transactions. It applies to contracts, legal documents, deeds, and other official instruments, MODULE 3: WEIGHTS AND MEASURES ensuring consistency in measurement across various sectors. The use of the metric system is mandatory, and ★ Sealing and Testing of Instruments of Weights and it is governed by specific implementing rules and Measures regulations that outline how it should be applied in All instruments for determining weights and these contexts. measures in all consumer and consumer related ★ Fraudulent Practices Relative to Weights and Measures transactions shall be tested, calibrated, and 1. [OTHER] For any person other than the official sealed every 6 months by the official sealer sealer or his duly authorized representative to (provincial / city / municipal treasured or place or attach an official tag, seal, sticker, mark, authorized representative) upon payment of fees stamp, brand or other characteristic sign used to required under existing laws. indicate that such instrument of weight and All instruments of weights and measures shall measure has officially been tested, calibrated, continuously be inspected for compliance. sealed or inspected; 2. [IMITATE] For any person to imitate any seal, ★ Use of Metric System sticker, mark, stamp, brand, tag or other  characteristic sign used to indicate that such 7. [NOT BEEN SEALED] For any person engaged in the instrument of weight or measures has been buying and selling of consumer products or of officially tested, calibrated, sealed or inspected; furnishing services the value of which is estimated 3. [ALTER] For any person other than the official sealer by weight or measure to possess, use or maintain or his duly authorized representative to alter in any with intention to use any scale, balance, weight or way the certificate or receipt given by the official measure that has not been sealed or if previously sealer or his duly authorized representative as an sealed, the license therefor has expired and has not acknowledgment that the instrument for been renewed in due time; determining weight or measure has been fully 8. [FRAUDULENTLY ALTER] for any person to tested, calibrated, sealed or inspected; fraudulently alter any scale, balance, weight, or 4. [FALSE] For any person to make or knowingly sell or measure after it is officially sealed; use any false or counterfeit seal, sticker, brand, 9. [KNOWINGLY USE FALSE SCALE / BALANCE / stamp, tag, certificate or license or any dye for WEIGHT / MEASURE] for any person to knowingly printing or making the same or any characteristic use any false scale, balance, weight or measure, sign used to indicate that such instrument of whether sealed or not; weight or measure has been officially tested, 10. [SHORT WEIGHT OR MEASURE] for any person to calibrated, sealed or inspected; fraudulently give short weight or measure in the 5. [ALTER THE WRITTEN / PRINTED FIGURES, making of a scale; LETTERS, OR SYMBOLS] For any person other than 11. [FRAUDULENTLY MISREPRESENT] for any person, the official sealer or his duly authorized assuming to determine truly the weight or measure representative to alter the written or printed of any article bought or sold by weight or measure, figures, letters or symbols on any official seal, to fraudulently misrepresent the weight or measure sticker, receipt, stamp, tag, certificate or license thereof; or used or issued; 12. For any person to procure the commission of any 6. [USE ANY RESTORED, ALTERED, EXPIRED, such offense above-mentioned by another. DAMAGED] for any person to use or reuse any Instruments officially sealed at some previous time which restored, altered, expired, damaged stamp, tag have remained unaltered and accurate and the seal or certificate or license for the purpose of making it tag officially affixed thereto remains intact and in the appear that the instrument of weight of measure same position and condition in which it was placed by the has been tested, calibrated, sealed or inspected; official sealer or his duly authorized representative shall, if  presented for sealing, be sealed promptly on demand by indicating the price and the corresponding the official sealer or his authorized representative without official name of the wood. penalty except a surcharge fixed by law or regulation. Summary: It specifically mandates that ○ Summary: This passage means that if an instrument lumber must include both the price and (likely a measuring or weighing device) was previously the official wood name on the label. sealed by an official and remains unaltered, accurate, ○ Consumer products are too small / nature is and with its official seal intact, it can be resealed upon impractical to place a price tag → price request without any penalties. However, there may be a must be placed at the nearest point where small surcharge, as prescribed by law or regulation, for the products are displayed. this resealing process. The resealing is to be done promptly by the official or their authorized ★ Manner of Placing Price Tags representative. Price tags, labels, or markings must be written clearly, indicating the price of the consumer MODULE 3: PRICE TAG product per unit in pesos or centavos. All consumer products sold in retail shall bear an appropriate price tag, label, or marking indicating the ★ Regulations for Price Tag Placements price of the article The Department will prescribe rules and Consumer products shall not be sold at a price higher regulations for the visible placement of price tags than that stated in the price tag. for specific consumer products and services. No erasures or alterations of any sort of price tags, ★ Price Tag Requirement labels, or markings. Unlawful to offer any consumer product for retail ★ Penalties sale to the public without an appropriate price tag, 1. Fine and Imprisonment label, or marking publicly displayed to indicate the Php 200 - Php 5,000 price of each article. 1 Month - 6 months Said products shall not be sold at a price higher Second conviction → penalty of revocation than that stated in the price tag. of business permit and license. Conditions ★ Sanctions ○ Lumber sold, displayed, or offered for sale to 1. Issuance of a Cease and Desist Order the public shall be tagged or labeled by Provided  a. Order will specify the acts that the [ASSURANCE TO REIMBURSE] An assurance respondent will cease and desist to reimburse the complaint out of any from money or property in connection with the b. Require the respondent to submit a complaint, including expenses in making report of compliance within a or pursuing the complaint, if any, and to reasonable time. file a bond to guarantee compliance 2. Acceptance of a Voluntary Assurance of therewith. Compliance / Discontinuance form the 3. Restitution or rescission of the contract without Respondent damages; [ASSURANCE TO COMPLY WITH THIS ACT] 4. Condemnation and seizure of the consumer Assurance to comply with the provisions of product found to be hazardous to health and this Act and its implementing rules and safety unless the respondent files a bond to regulations answer for any damage or injury that may arise [ASSURANCE TO REFRAIN FROM from the continued use of the product; UNLAWFUL/UNETHICAL/UNFAIR ACTS AND 5. the imposition of administrative fines in such PRACTICES] An assurance to refrain from amount as deemed reasonable by the Secretary, engaging in unlawful acts and practices or which shall in no case be less that Five hundred unfair or unethical trade practices subject pesos (P500.00) nor more than Three hundred of the formal investigation thousand pesos (P300,000.00) depending on the [ASSURANCE TO COMPLY WITH TERMS AND gravity of the offense, and an additional fine of CONDITIONS] An assurance to comply with not more than One thousand pesos (P1,000.00) or the terms and conditions specified in the each day of continuing violation. consumer transaction subject of the ★ PM is the Key complaint Sending private message being the key to know the [ASSURANCE TO RECALL / REPAIR / price of a product being sold online REPLACE / REFUND] An assurance to recall, Violates RA No. 7394. replace, repair, or refund the money value of defective products distributed in MODULE 3: WARRANTIES commerce; ★ Warranties  Guarantees from the manufacturer that they will 1. Procedures that the warrantor / consumers shoulder the repairs of any damaged / defective should do in case the product malfunctions or item for free under a given time period. has a defect. ★ Applicable Law on Warranties Instructions must be comprehensive + Civil Code shall govern all contracts of sale with easily understood by consumers conditions and warranties. 2. Steps that the consumer must take to get the ★ Express Warranty warranty in effect. Affirmation / promise by seller relating to the thing, 3. Type of warranty which has the tendency of inducing the buyer to Full or limited purchase the item. 4. Time period when the consumers can redeem the Mere Opinion vs Express Warranty warranty ○ Seller is an expert + buyer relies on his 5. Business name and address of the warrantor expertise in making the purchase 6. Personal details of the person the warranty is ★ Facts implied in a Contract of Sale extended to if the warranty is not transferable 1. Seller has the right to sell the thing sold 7. Products and parts covered by the warranty. 2. Thing sold is free from any hidden defects / encumbrances International warranties are honored in the 3. Thing sold is reasonably fit for the particular Philippines. purpose for which it is bought or is of ○ Provided merchantable quality, if it is bought by Product = brand new and original description. ★ No Warranties ★ Types of Warranties 1. Products bought in tiangge / surplus Both take effect on the purchase date. establishments which do not issue official 1. Express Warranty receipt do not come with warranty rights More specific deadline 2. No warranty can be availed of where the defect of Ex. exact date, time, and terms of warranty the goods was due to the mishandling of the 2. Implied Warranty buyer. Only sets a general time frame 3. A buyer cannot demand return or refund because Ex. 6 months warranty he/she had a change of heart ★ 7 Things to Look for Regarding Express Warranties 4. Implied warranty not applicable  a. “As is and where is” sale 1. Express Warranty b. Sale of second hand articles May be stipulated by the parties c. Sale by virtue of authority in fact or law 2. Implied Warranty d. Sale at public auction for tax delinquency 60 days - 1 year ★ How to Avail 3. Service Firms Present 90 days or more ○ Official Receipt ★ Prohibited Acts ○ Sticker label with serial number of the 1. Refusal of the manufacturer / person obligated product; or to grant a warranty without any valid / legal ○ Warranty card reason. Breach of Express Warranty 2. Unreasonable delay by the manufacturer / 1. Have the goods repaired; or person obligated under the warranty Work must be made within 30 days 3. Evasion of the warranty by removing product’s ○ May be extended by warranty card conditions beyond the control 4. False representation in advertising as to the of the warrantor existence of a warranty 2. Purchase price refunded Imprisonment Amount directly attributable to the ○ 3 Months - 2 years use of the consumer prior to the ○ And revocation of a business permit and license discovery of the defect shall be Fine deducted ○ Php 500 - Php 5,000 Breach of Implied Warranty 1. Consumer may retain the goods and recover ★ 3Rs damages; or 1. Right to repair 2. Reject the goods, cancel the sale and 2. Right to seek replacement recover from the seller 3. Right to refund If the warrantor does not make good of his obligation → warranty may then be enforced by MODULE 3: NO RETURN, NO EXCHANGE POLICY submitting a complaint with the DTI Duration of the Warranty ★ Legal Basis of the Prohibition on “No Return, No ○ firm/entity being complained about Exchange” Policy of Business Establishments ○ Acts / omissions constituting the offense “No Return, No Exchange” shall NOT be written into including the approximate date, place, and the contract of sale / receipt / sales transaction in time of its commission any document evidencing such sale or anywhere in ○ Remedy he is seeking the store or business establishment. ○ Other relevant information ★ Rationale for this Provision Aimed to correct the misconception of a lot of MODULE 3: THE CONSUMER ACT (PPT) consumers that they do not have the right to return ★ Consumer Rights shoddy or defective goods or demand for remedies 1. Right to Basic Needs in case of defective / imperfect service because of Guarantees survival, adequate food, the “No Return, No Exchange” notice in the receipts clothing, shelter, health care, education, and or anywhere in the business. sanitation ★ Why is the Presence of a “No Return, No Exchange” 2. Right to Safety Notice considered deceptive? Right to be protected against marketing of Consumers may return / exchange the goods or goods or the provision of services that are avail of other remedies in case of hidden faults or hazardous to health and life. defects, or any charge not known to the buyer 3. Right to Information Sellers are obliged to honor implied warranties Right to be protected against fraudulent / and grant corresponding remedies to consumers. dishonest / misleading advertising / ★ Can a store impose the condition that merchandise can labeling / promotion only be exchanged once? Right to be given the facts and No, because merchandise can be exchanged as information needed to make an informed many times as these are defective as long as the choice. consumer chooses the option of replacement. 4. Right to Choice ★ What should a consumer do in case a store is found Right to choose products at competitive violating the prohibition on “No Return, No Exchange” prices with an assurance of satisfactory Policy? quality He/she can file a complaint with the DTI including 5. Right to Representation ○ Names and addresses of the complainant  Right to express consumer interests in the 3. Provision of information and education to making and execution of government facilitate sound choice and proper exercise policies. of rights by the consumer. 6. Right to Redress 4. Provision of adequate rights and means to Right to be compensated for redress misrepresentation, shoddy goods, or 5. Consumer representation in the unsatisfactory services formulation of social and economic policies. 7. Right to Consumer Education ★ State Policies Per Title Right to acquire the knowledge and skills 1. Consumer Product Quality and Safety necessary to be an informed consumer Duty of the State: 8. Right to a Healthy Environment 1. To develop and provide safety and Right to live and work in an environment quality standards for consumer which is neither threatening nor products, including performance or dangerous, and which permits a life of use-oriented standards, codes of dignity and well-being practice, and methods of tests. ★ Consumer Responsibilities 2. To assist the consumer in evaluating 1. Critical Awareness the quality, including safety, 2. Action performance, and comparative utility of 3. Social Concern consumer products. 4. Environmental Awareness 3. To protect the public against 5. Solidarity unreasonable risks of injury ★ Overarching State Policy associated with consumer products. “It is the policy of the State to protect the interests of the 4. To undertake research on quality consumer, promote his general welfare, and to establish