Article 86Supplement v1, p. 86

COMMERCIAL LAWS SUPPLEMENT

thousand pesos (P5,000.00) and by imprisonment of not

more than one (1) year or both upon the discretion of the

court.

In case of juridical persons, the penalty shall be imposed

upon its president, manager or head. If the offender is an

alien, he shall, after payment of fine and service of

sentence,

be

deported

without

further

deportation

proceedings.

CHAPTER VI Advertising and Sales Promotion

ARTICLE 108. Declaration of Policy . — The State shall

protect the consumer from misleading advertisements

and fraudulent sales promotion practices.

ARTICLE 109. Implementing Agency . — The Department

of Trade and Industry shall enforce the provisions of this

Chapter and its implementing rules and regulations:

Provided , That with respect to food, drugs, cosmetics,

devices and hazardous substances, it shall be enforced by

the Department of Health.

False, Deceptive and Misleading Advertisement

ARTICLE

110.

False,

Deceptive

or

Misleading

Advertisement . — It shall be unlawful for any person to

disseminate or to cause the dissemination of any false,

deceptive or misleading advertisement by Philippine mail

or

in

commerce

by

print,

radio,

television,

outdoor

advertisement

or other medium for the purpose of

inducing or which is likely to induce directly or indirectly

the purchase of consumer products or services.

An advertisement shall be false, deceptive or misleading

if it is not in conformity with the provisions of this Act or if

it is misleading in a material respect. In determining

whether

any

advertisement

is

false,

deceptive

or

misleading, there shall be taken into account, among

other things, not only representations made or any

combination thereof, but also the extent to which the

advertisement fails to reveal material facts in the light of

such

representations,

or

materials

with

respect

to

consequences

which

may

result

from

the

use

or

application of consumer products or services to which

the

advertisement

relates

under

the

conditions

prescribed

in

said

advertisement,

or

under

such

conditions as are customary or usual.

ARTICLE 111. Price Comparisons . — Comparative price

advertising by sellers of consumer products or services

shall conform to the following conditions: a) Where the

comparison relates to a former price of the seller, the item

compared shall either have been sold at that price within

the ninety (90) days immediately preceding the date of

the advertisement, or it shall have been offered for sale

for at least four (4) weeks during such ninety-day period.

If the comparison does not relate to an item sold or

offered for sale during the ninety-day period, the date,

time or seasonal period of such sale or offer shall be

disclosed in the advertisement.

b) Where the comparison relates to a seller's future price,

the future price shall take effect on the date disclosed in

the advertisement or within ninety (90) days after the

price comparison is stated in the advertisement. The

stated future price shall be maintained by the seller for a

period of at least four (4) weeks after its effective date:

Provided , That compliance thereof may be dispensed

with in case of circumstances beyond the seller's control.

c) Where the comparison relates to a competitor's price,

the

competitor's

price

shall relate to the consumer

products or services advertised or sold in the ninety-day

period and shall be representative of the prices similar

consumer products or services are sold or advertised in

the locality where the price comparison was made.

ARTICLE 112. Special Advertising Requirements for Food,

Drug, Cosmetic, Device, or Hazardous Substance . — a) No

claim in the advertisement may be made which is not

contained in the label or approved by the concerned

department.

b) No person shall advertise any food, drug, cosmetic,

device, or hazardous substance in a manner that is false,

misleading or deceptive or is likely to create an erroneous

impression

regarding

its

character,

value,

quantity,

composition, merit, or safety.

c) Where a standard has been prescribed for a food, drug,

cosmetic, or device, no person shall advertise any article

or substance in such a manner that it is likely to be

mistaken for such product, unless the article complies

with the prescribed standard or regulation.

d) No person shall, in the advertisement of any food, drug,

cosmetic, device, or hazardous substance, make use of

any reference to any laboratory report of analysis required

to be furnished to the concerned department, unless

such

laboratory

report

is

duly

approved

by

such

department.

e) Any businessman who is doubtful as to whether his

advertisement relative to food, drug, cosmetic, device, or

hazardous substance will violate or does not conform

with this Act or the concerned department's pertinent

rules

and

regulations

may

apply

to

the

same

for

consideration and opinion on such matter before such

advertisement is disseminated to the public. In this case,

the concerned department shall give its opinion and

notify the applicant of its action within thirty (30) days

from the date of application; otherwise, the application

shall be deemed approved.

f) No person shall advertise any food, drug, cosmetic,

device, or hazardous substance unless such product is

duly

registered

and

approved

by

the

concerned

department for use in any advertisement.

ARTICLE 113. Credit Advertising . — No advertisement to

aid, promote, or assist, directly or indirectly, any extension

of consumer credit may:

a) state that a specific periodic consumer credit amount

or installment amount can be arranged, unless the

creditor usually and customarily arranges credit payment

or installments for that period and in that amount; and

b) state that a specified down payment is required in any

extension of consumer credit, unless the creditor usually

or customarily arranges down payment in that amount.

ARTICLE 114. Advertising of Open-end Credit Plan . — In

case of an open-end credit plan, the rate of interest and

other material features of the plan shall be disclosed in

the advertisement.

ARTICLE 115. Special Claims . — Any advertisement which

makes special claims shall:

a) substantiate such claims; and

b) properly use research result, scientific terms, statistics

or quotations.

Promotion of Sales of Consumer Products and Services

ARTICLE 116. Permit to Conduct Promotion . — No person

shall conduct any sales campaigns, including beauty

contest, national in character, sponsored and promoted

by manufacturing enterprises without first securing a

permit from the concerned department at least thirty

(30) calendar days prior to the commencement thereof.

Unless an objection or denial is received within fifteen (15)

days from filing of the application, the same shall be

deemed

approved

and

the promotion campaign or

activity may be conducted: Provided , That any sales

promotion campaign using medical prescriptions or any

part thereof or attachment thereto for raffles or a promise

of reward shall not be allowed, nor a permit be issued

thereof.

ARTICLE 117. Suspension of Publication or Dissemination

of Information . — The concerned department may, after

due notice and hearing, suspend the publication and

dissemination of any information accompanying a sales

promotion campaign, if it finds the campaign to be in

violation

of

the

provisions

of

this

Chapter

or

its

implementing rules and regulations.

© Compiled by RGL

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