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DTI asks Congress to fast-track amendments to Consumer Act

(FILE PHOTO)

Metro Manila (CNN Philippines, December 6) — The Department of Trade and Industry (DTI) has urged Congress to fast-track amendments to the 30-year-old Consumer Act of the Philippines to keep up with technological advancements and consumers’ evolving needs.

At the hearing of the House Committee on Trade and Industry on Tuesday, DTI Undersecretary Ruth Castelo told lawmakers that Republic Act 7394 should contain provisions on the internet and online transactions to reflect current consumption trends.

Having specific provisions in the law on online transactions will also enhance accountability for online sellers, Castelo added.

At least five bills have been filed in the House of Representatives in the 19th Congress proposing to amend certain provisions of RA 7394.

“Since there is no mention of the distinction between the two — online and offline consumer transactions — DTI currently uses the Consumer Act provision. [B]ut it will really help a lot for the Consumer Act, the 1992 version, be immediately revised by Congress,” said Castelo.

She added that the penalties for violations of RA 7394 should be updated.

At present, the law only imposes fines ranging from ₱1,000 to ₱10,000 or jail time of not less than two months but not more than one year or both, upon the discretion of the court.

“In the 23rd century, Sir, we all understand that these penalties or the amount of penalties provided under the law is no longer acceptable and cannot deter violators of the Consumer Act,” Castelo said.

She also said the law should be clear on the standards and technical regulations that must be observed for products monitored and certified by the Bureau of Philippine Standards.

“We are always taken to court to question the technical regulations that we issue,” Castelo said. “And so maybe there is a chance for the Consumer Act of the Philippines to clarify what are standards and what are technical regulations. What needs to be published, amended periodically and so on.”

Following the hearing, the House Committee on Trade and Industry formed a technical working group to discuss the proposed amendments to the Consumer Act and come up with a substitute bill that will be approved by the panel.

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