Shop Smart, Stay Protected: Your Rights Under the Consumer Act This Holiday Season

‘Tis the season to be giving! The Christmas season in the Philippines is a time of joy, generosity, and—of course—shopping sprees. Whether you’re scouring mall sales or clicking through online platforms, the festive rush can sometimes lead to issues like defective items, misleading promos, or outright scams. In the hustle and bustle, it’s easy to overlook one crucial aspect: your rights as a consumer.

To help you navigate the holiday shopping frenzy, let’s explore two key consumer rights guaranteed under Republic Act No. 7394, also known as the Consumer Act of the Philippines, and how you can assert them to protect your hard-earned money.

The Right to Information 

The right to information refers to the right to be provided with the facts necessary for making an informed choice, and against deceptive sales acts or practices.¹ Businesses are obligated to provide clear and truthful information about their products and services, including pricing, quality, quantity, and warranty.² The right to information also includes the right to be protected against misleading advertisements and fraudulent sales promotion practices, which are prohibited by law.³ Violations of these rules can result in penalties for the seller and redress for the consumer.

Practical Examples:

• If a seller claims that an item is “new” but it turns out to be second-hand, they violate this provision.

• If a seller holds a sale showing that an item is “50% off,” but the original price is artificially inflated to deceive buyers, they violate this provision.

The Right to Redress 

The right to redress refers to the right to receive a fair settlement of just claims, including compensation for misrepresentation, defective products, or unsatisfactory services.⁴ This includes compensation for defective items, misrepresentation, or poor service. ⁵

Consumers are entitled to the 3Rs:

• Repair: Sellers must fix defective products at no extra cost.
• Replacement: Faulty or misrepresented items must be replaced with functional ones.
• Refund: If repair or replacement is not possible, a full refund may be demanded.

Practical Example: “No Return, No Exchange” Policy

The law obligates manufacturers and sellers alike to honor warranties and guarantees over the products.⁶ As such, businesses are not allowed to impose a “No Return, No Exchange” condition in its contracts, receipts, or other documents evidencing sales.⁷ At the minimum, consumers should allowed to ask for a refund or replacement of defective or misrepresented products.⁸ However, this does not apply to returns or exchanges for other reasons such as change of mind unless it is part of the store’s policy.

What If Your Rights Are Violated?

You should seek redress primarily from the seller, presenting the receipts, warranties, and photos of the defective product. However, if a seller refuses to address your concerns, you can escalate the issue by filing a Consumer Complaint with the Department of Trade and Industry (DTI). Complaints may include, but are not limited to:

1. Defective or imperfect products/services;
2. Deceptive sales acts or practices;
3. Misleading advertisements;
4. Violation of warranty terms; and
5. Use of “No Return, No Exchange” policies in receipts

To file a complaint before the DTI, you must write a formal letter detailing your complaint with attached documentation (e.g. receipts, documentation of defects, records of communication with seller, etc.). You may file this through the DTI’s website or via courier or registered mail, or in-person submissions.

Stay Protected This Holiday Season

The holidays should be a time of cheer, not frustration. By understanding your rights under the Consumer Act of the Philippines, you can shop confidently and hold sellers accountable when things go wrong.

If you’re facing challenges with defective items, misleading promos, or other consumer-related issues, our firm is here to help. Contact us today for expert legal advice and assistance, and ensure your holidays stay merry and bright!

Prepared by Guia Libot.

FOOTNOTES

1.  DTI Policy Advisory No. 22-01, p. 2.
2. Article 50, R.A. No. 7394.
3. Chapter VI, R.A. No. 7394.
4. DTI Policy Advisory No. 22-01, p. 2.
5. Chapter V, R.A. No. 7394.
6.  Chapter III, R.A. No. 7394.
7. Title III, Chapter I, Rule 2, Section 7, The Consumer Act of the Philippines), DTI Department Administrative Order No. 93-02, s. 1993.
8.  Article 68, R.A. No. 7394.