Article 87Supplement v1, p. 87

COMMERCIAL LAWS SUPPLEMENT

ARTICLE 118. Conduct of Sales Promotion . — A sales

promotion

which

is

intended

for

broad

consumer

participation and utilizes mass media shall indicate the

duration,

commencement

and

termination

of

the

promotion, the deadline for submission of entries and the

governing criteria or procedure to be followed therein.

ARTICLE 119. Packaging of Products Under Promotion . —

The packaging of the products covered by the sales

promotion shall not be tampered, neither shall any

change in the product's package be affected without the

authority of the sponsoring agency or the owner or

manufacturer of the product.

ARTICLE 120. Change in Starting and Termination Dates

of Promotion . — The concerned department shall be

advised of any delay of starting dates or termination

dates and details of any change in the conduct of a sales

promotion. Any change in the termination dates shall be

published in a newspaper of general circulation before

the expiration of the original schedule or the termination

date, whichever comes first.

ARTICLE 121. Determination of Winners . — The winners in

any sales promotion shall be determined at a definite

time and place and shall be verified by a representative of

the concerned department and the sponsor. Immediately

after the winners are selected or determined, a list with

their

addresses

and

corresponding

prizes

shall

be

submitted to the concerned department. All winners

shall be announced or published in the same manner

that the sales promotion was announced or published:

Provided , That publication in a newspaper of general

circulation shall be done in a legible manner at least

once, if the sales promotion is national in scope: Provided,

further , That such announcement and publication shall

be

done

not

later

than

two

(2)

weeks

after

the

determination of winners. In all cases where the amount

of the price is Five hundred pesos (P500.00) or more, the

winners shall also be notified in writing by registered mail

or any communication wherein proof of notice or service

can be verified.

ARTICLE

122. Injunctive Relief . — a) Whenever the

concerned department has the reason to believe (1) that

any person, partnership or corporation is engaged in or is

about to engage in the dissemination or the causing of

dissemination of any advertisement in violation of Articles

110 to 115, and (2) that the enjoining thereof would be to

the interest of the public, the concerned department

shall direct the filing of a complaint in the court of

competent jurisdiction, to enjoin the dissemination or the

causing of the dissemination of such advertisement.

Upon

proper

showing,

a

temporary

injunction

or

restraining order shall be granted without bond. Any such

complaint shall be filed in the locality in which the

person, partnership or corporation resides or transacts

business.

b) Any person who may suffer loss, damage or injury due

to a false, misleading or deceptive advertisement as

defined in Article 4 may file a complaint with injunction

in his own name with any court of competent jurisdiction

to recover damages, cost of suit and reasonable attorney's

fees.

ARTICLE 123. Penalties . — a) any person, association,

partnership or corporation who shall violate any of the

provisions of Articles 110 to 115 shall, upon conviction, be

subject to a fine of not less than Five Hundred Pesos

(P500.00)

but

not

more

than

Five

thousand

pesos

(P5,000.00) or an imprisonment of not less than one (1)

month but not more than (6) months or both upon the

discretion of the court.

b) Any violation of the provisions of Articles 116 to 121 shall,

upon conviction, subject the offenders to a fine of not less

than Two hundred pesos (P200.00) but not more than Six

hundred pesos (P600.00) or an imprisonment of not less

than one (1) month but not more than six (6) months or

both upon the discretion of the court. If the violation was

committed

by

a

juridical

person,

the

manager,

representative,

director,

agent

or

employee

of

said

juridical person responsible for the act shall be deported

after service of sentence and payment of the fine without

need for further deportation proceedings.

ARTICLE 124. Exemption from Penalties . — No publisher,

radio broadcast, television licensee or medium for the

dissemination of advertising shall be liable, under this

Chapter, by reason of dissemination by him of any false

advertisement

unless

he

refuses, on the request of

appropriate authorities, to furnish the name and post

office address of the manufacturer, packer, distributor

seller or advertising agency. This exemption shall not

apply however, to the manufacturer, packer, distributor or

seller

of

the

consumer

product or service and the

advertising

agency

responsible

for

the

false

and

misleading advertising.

CHAPTER VII Regulation of Repair and Service

Firms

ARTICLE 125. Declaration of Policy . — The State shall

cause the accreditation of repair and service firms or

establishments and their technical personnel in order to

protect the interest of the consumers availing of their

services.

ARTICLE 126. Implementing Agency . — The Department

of

Trade

and

Industry,

hereby

referred

to

as

the

Department, shall enforce the provisions of this Chapter.

ARTICLE 127. Minimum Requirements for Accreditation .

— The following shall be the minimum requirements for

accreditation or repair and service firms:

a) the duly registered business name, firm name or style

of the firm;

b) date of issue and effectivity of the certificate of

accreditation;

c) number and skills of technical personnel; and

d) required license for the repair or servicing of any

consumer product as required by special laws.

ARTICLE 128. Accreditation of Repair and Service Firm . —

No person shall operate a repair and service firm or act as

technical personnel therein without first being accredited

by the Department.

ARTICLE

129.

Certification

of

Accreditation . — Upon

compliance with the requirements for accreditation, the

Department shall issue the corresponding certificate of

accreditation. A separate certificate shall be required for

each branch of an enterprise located in areas outside of

the main office. However, with respect to repair and

service centers of factory authorized representatives or

franchised dealers, such centers may display a certified

true copy of the certificate of accreditation of the parent

company.

ARTICLE 130. Suspension, Revocation or Cancellation of

Certification

of

Accreditation .

—

Any

certificate

of

accreditation may be suspended, revoked or cancelled by

the Department, for cause, after due notice and hearing.

TITLE IV Consumer Credit Transaction

ARTICLE 131. Declaration of Policy . — The State shall

simplify, clarify and modernize the laws governing credit

transactions and encourage the development of fair and

economically sound consumer credit practices. To protect

the consumer from lack of awareness of the true cost of

credit to the user, the State shall assure the full disclosure

of the true cost of credit.

ARTICLE

132.

Determination

of

Finance

Charges . —

Except as otherwise provided, the amount of the finance

charges

in

connection

with

any

consumer

credit

transaction shall be determined as the sum of all charges,

payable directly or indirectly by the person to whom the

credit is extended and imposed directly or indirectly by

the creditor as an accident to the extension of credit,

including any of the following type of charges which are

applicable:

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