Article 78Supplement v1, p. 78

COMMERCIAL LAWS SUPPLEMENT

person who relied upon a guaranty or undertaking which

he received in good faith;

e) introduce or deliver for introduction into commerce or

receive

in

commerce

and

subsequently

deliver

or

preferred at cost or otherwise, of a hazardous substance

in a reused food, drug, cosmetic or device container or in

a container which, though not a reused container, is

identifiable as a food, drug, cosmetic or device container

by its labeling or by other identification. The use of a used

food, drug, cosmetic or device container for a hazardous

substance does not diminish the danger posed by the

hazardous substance involved, therefore, such substance

shall be deemed a mislabeled hazardous substance.

ARTICLE 47. Penalties, Exception . — a) Any person who

violates any of the provisions of Article 46 shall, upon

conviction, be subject to a fine of not less than One

thousand pesos (P1,000.00) or an imprisonment of not

less than six (6) months but not more than five (5) years or

both upon the discretion of the court.

b)

No

person

shall

be

subject

to

the

penalties of

paragraph

(a)

of

this

Article

for

(1) having violated

paragraph (c) of Article 46 unless he refuses to furnish,

upon request by the Department or his representative,

the name and address of the person from who he

purchased such hazardous substances and (2) having

violated paragraph (a) of Article 46, if he establishes a

guaranty or undertaking signed by, and containing the

name and address of, the person from whom he received

in good faith, the hazardous substance to the effect that

the hazardous substance is not a mislabeled hazardous

substance or banned hazardous within the meaning of

that term in this Act.

TITLE III Protection Against Deceptive, Unfair and

Unconscionable Sales Acts or Practices

CHAPTER I Deceptive, Unfair and

Unconscionable Sales Acts or Practices

ARTICLE 48. Declaration of Policy . — The State shall

promote

and

encourage

fair,

honest

and

equitable

relations among parties in consumer transactions and

protect

the

consumer

against deceptive, unfair and

unconscionable sales acts or practices.

ARTICLE 49. Implementing Agency . — The Department of

Trade and Industry, hereby referred to as the Department,

shall enforce the provisions of this Chapter.

Regulation of Sales Acts and Practices

ARTICLE 50. Prohibition Against Deceptive Sales Acts or

Practices . — A deceptive act or practice by a seller or

supplier

in connection with a consumer transaction

violates this Act whether it occurs before, during or after

the transaction. An act or practice shall be deemed

deceptive whenever the producer, manufacturer, supplier

or seller, through concealment, false representation or

fraudulent manipulation, induces a consumer to enter

into a sales or lease transaction of any consumer product

or service.

Without limiting the scope of the above paragraph, the

act or practice of a seller or supplier is deceptive when it

represents that:

a) a consumer product or service has the sponsorship,

approval,

performance,

characteristics,

ingredients,

accessories, uses, or benefits it does not have;

b) a consumer product or service is of a particular

standard, quality, grade, style, or model when in fact it is

not;

c) a consumer product is new, original or unused, when in

fact,

it

is

in

a

deteriorated,

altered,

reconditioned,

reclaimed or second-hand state;

d) a consumer product or service is available to the

consumer for a reason that is different from the fact;

e) a consumer product or service has been supplied in

accordance with the previous representation when in fact

it is not;

f) a consumer product or service can be supplied in a

quantity greater than the supplier intends;

g) a service, or repair of a consumer product is needed

when in fact it is not;

h) a specific price advantage of a consumer product

exists when in fact it does not;

i) the sales act or practice involves or does not involve a

warranty, a disclaimer of warranties, particular warranty

terms or other rights, remedies or obligations if the

indication is false; and

j) the seller or supplier has a sponsorship, approval, or

affiliation he does not have.

ARTICLE

51.

Deceptive

Sales

Act

or

Practices

By

Regulation . — The Department shall, after due notice and

hearing, promulgate regulations declaring as deceptive

any

sales

act,

practice

or

technique

which

is

a

misrepresentation of facts other than these enumerated

in Article 50.

ARTICLE

52.

Unfair

or Unconscionable Sales Act or

Practice . — An unfair or unconscionable sales act or

practice by a seller or supplier in connection with a

consumer transaction violates this Chapter whether it

occurs before, during or after the consumer transaction.

An

act

or

practice

shall

be

deemed

unfair

or

unconscionable whenever the producer, manufacturer,

distributor, supplier or seller, by taking advantage of the

consumer's

physical

or

mental

infirmity,

ignorance,

illiteracy, lack of time or the general conditions of the

environment or surroundings, induces the consumer to

enter into a sales or lease transaction grossly inimical to

the interests of the consumer or grossly one-sided in

favor of the producer, manufacturer, distributor, supplier

or seller.

In determining whether an act or practice is unfair and

unconscionable, the following circumstances shall be

considered:

a) that the producer, manufacturer, distributor, supplier

or seller took advantage of the inability of the consumer

to reasonably protect his interest because of his inability

to understand the language of an agreement, or similar

factors;

b) that when the consumer transaction was entered into,

the price grossly exceeded the price at which similar

products or services were readily obtainable in similar

transaction by like consumers;

c) that when the consumer transaction was entered into,

the consumer was unable to receive a substantial benefit

from the subject of the transaction;

d) that when the consumer transaction was entered into,

the seller or supplier was aware that there was no

reasonable probability or payment of the obligation in full

by the consumer; and

e) that the transaction that the seller or supplier induced

the consumer to enter into was excessively one-sided in

favor of the seller or supplier.

ARTICLE 53. Chain Distribution Plans or Pyramid Sales

Schemes . — Chain distribution plans or pyramid sales

schemes shall not be employed in the sale of consumer

products.

ARTICLE 54. Home Solicitation Sales . — No business

entity shall conduct any home solicitation sale of any

consumer product or service without first obtaining a

permit

from

the Department. Such permit may be

denied suspended or revoked upon cause as provided in

the

rules

and

regulations

promulgated

by

the

Department, after due notice and hearing.

ARTICLE 55. Home Solicitation Sales ; When Conducted . —

Home solicitation sales may be conducted only between

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