On Labelling

 What are the minimum

labeling requirements
 When is the literature for a
 What is the manner of placing
consumer product required
labels
 What are the additional
 What are the labeling
labeling requirements for
requirements in the principal
certain products?
panels
 What goods are exempted
 What are the labeling
from the labeling law
requirements in the principal
 What are the prohibited acts
or secondarydisplay panels?
on labeling
 What are the labeling
 What is the penalty for the
requirements in the principal
violation of this provision
or secondary display panels
or in the literature
1. Q: What are the minimum labeling requirements for consumer
products?

A: All consumer products domestically sold whether manufactured locally or

imported shall indicate the following in their respective labels of packaging;

 its correct and registered trade name or brand

name;
 its duly registered trademark;
 its duly registered business name;
 address of the manufacturer, importer, re-
packer of the consumer product in the
Philippines;
 its general make or active ingredients;
 net quantity of contents, in terms of weight,
measure or numerical count rounded off to at
least the nearest tenths in the metric system;
 country of manufacture, if imported;

 if a consumer product is manufactured, refilled

or repacked under license from the principal,
the label shall so state the fact.
2. Q: What is the manner of placing labels?
A: Any word, statement or information required by or under authority of these
rules shall appear on the label or labeling with such conspicuousness and
render them likely to be
read and understood by ordinary individuals.
Labels should not be easily removed, detached or erased under ordinary
handling of the product.
 3. Q: What are the labeling requirements in the principal display
panel?

A: Trade name or brand name, general make or active ingredients, weight, net
quantity or size.
4. Q: What are the labeling requirements in the principal or secondary
display panels?
A: The labeling requirements are:
 registered trademark and registered business name;
 address of the manufacturer, importer, re-packer, re-
filler or consignee;
 the fact that the product is manufactured, refilled or
repacked under license from a principal and the
name and address of the latter;
 country of manufacture (in case of imported
products);
 if technical or expert knowledge is needed to operate
or assemble the product;
 warning of flammability, toxicity or poisonous
character, corrosiveness, when required;
 information as to allergic reaction, when required;
 in case of mechanical and electrically powered toys,
the age of the child for which the toys are intended;
 warning required in case of a product prone to cause
an accident if not handled or used in the proper way;
 warning required where damage is likely to result in
non-compliance to the limited use of a product;
 Philippine Product Standard Mark;

 other certification of compliance to standards set by

other agencies of the government concerning safety,
quality, fill weight or measurement.

5. Q: What are the labeling requirements in the principal or secondary

display panels or in the literature?

A: The labeling requirements are:

 Warning and all the required information on

flammability, toxicity, corrosiveness, strong
sensitizer or allergy;
 directions for use or assembly where the same is
required;
 all the required information on express
 warranties;

 certification of compliance to standards set by a

private organization or institution, whether in the
Philippines or abroad or by an agency of a
foreign government.

6. Q: When is the literature for a consumer product required?

A: Where the literature for a product is placed inside its packaging, the seller
shall provide the buyer with a copy thereof for his perusal or examination at
the time of purchase.

7. Q: What are the additional labeling requirements for certain

products?

A: The following are the additional labeling requirements:

 If the product is flammable

 If the product is toxic or poisonous, the label
shall contain the word: "Warning: Poisonous" or
"Warning: Toxic" or the accepted or required
graphic representation of the same.
 If the product is corrosive
 If the product is a strong sensitizer or may cause
allergy;
 If it has complicated mechanical, electrical, or
electronic appliances, equipment or products to
be assembled and those needing further
assembly shall contain the following information
 If an electrical or electronic appliance or
accessory may be used with a specific wattage,
voltage or amperes, such wattage, voltage or
amperage shall be embossed, painted, pasted
or otherwise printed on the product without
danger of getting easily erased or removed by
ordinary usage
 If the toy is mechanical and electrically powered,
its label shall contain information as to the age
of the child for which the toy is intended.

 If a product is prone to cause an accident if not

handled or used in the proper way, the label
shall contain the following warning:
 "Caution/Warning: Dangerous if not handled
properly" or words to such effect. · If damage is
likely to result from non-compliance to the limited
use of a product, a statement such as "Warning:
For limited use only" or words to such effect
shall appear in the label.

8. Q: What goods are exempted from the labeling law?

A: Goods exempted are:

 Newspapers, magazines, periodicals, and

other reading matters are exempted because
the contents or sample thereof may be
inspected by the buyer upon purchase.
 Consumer products which are further
retailed in very small quantities by small
stores or in public markets which by tradition
are wrapped in ordinary paper plastic or
used containers.

 If the buyer himself provides the container

for his purchase of a consumer product
retailed in small quantities.

9. Q: What are the prohibited acts on labeling?

A: Prohibited acts include:

 The words "No Return, No Exchange", or any

other words to such effect shall not appear
on any label or literature of a consumer
product or on any receipt for the purchase of
such product.

 It shall be unlawful for any person, either as

principal or agent engaged in the labeling or
packaging of any consumer products to
display or sell consumer products whose
label does not conform to the rules and
regulations of RA 7394.

10. Q: What is the penalty for the violation of this provision?

A: Criminal Penalties include a fine of not less than P500.00,

but not more than P20,000.00 or imprisonment of not
less than three (3) months but not more than two (2) years or
both, at the discretion of the court: Provided, that, if the
consumer product is one which is not a food, cosmetic,
drug, device or hazardous substance, the penalty shall be a
fine of not less than P200.00, but not more than P500.00.
On Packaging
 What is Fair Packaging
 What is protection of product
through packaging?
 Are artistic or aesthetic
considerations in the
packaging of the product
allowed?
 Can the packaging of
products under sales
promotion differ from that of
products for regular
distribution
 What is a non-functionally
slacked-filled packaged
consumer product
 Is non-functionally slacked-
filled packaging allowed by
law
 When are handling
instructions required in
packaging
 What are the requirements for
dangerous packaging
 What are the requirements for
the packaging of dangerous
products
 What comprises special
packaging for children
1. Q: What is Fair Packaging?
A:
Fair Packaging is the packaging of consumer products which are made in
such a way as not to cause the purchaser to be deceived as to the contents,
 What is the penalty for
violation of this provision
 What is protection of product
through packaging
 Are artistic or aesthetic
considerations in the
packaging of the product
allowed
 Can the packaging of
consumer products under
sales promotion differ from
that of products for regular
distribution
 What is a non-functionally
slacked-filled packaged
consumer product
 Is non-functionally slacked-
filled packaging allowed by law
 When are handling instructions
required in dangerous
packaging
 What are the requirements for
dangerous packaging
 What are the requirements for
the packaging of dangerous
products
 size, quantity, measurement or fill of the product
2. Q: What is protection of product through packaging?
A: The packaging of consumer products shall reasonably serve to protect the
product under ordinary handling until the same is to be used by the buyer
within a reasonable time.

3. Q: Are artistic or aesthetic considerations in the packaging of the product

allowed?
A: Yes, artistic or aesthetic considerations in the packaging of consumer
products shall be allowed provided steps are taken to avoid possible
misconception by consumers as to product contents, size, quantity,
measurement or fill.

4. Q: Can the packaging of consumer products under sales promotion differ or

vary from that of products for regular distribution?
A: Yes, provided that the contents, size, quantity, measurement or fill thereof
are not affected to the prejudice of the purchaser.

5. Q: What is a non-functionally slacked-filled packaged consumer product?

A: A consumer product packed filled less than its capacity is a non-
functionally slack-filled packaged consumer product.

6. Q: Is non-functionally slacked-filled packaging allowed by law?

A: Yes, provided it clearly and conspicuously indicates in its labeling the
correct quantity of its contents, size, measurement or fill. However, basic
necessities are not allowed to use non-functionally slack-filled packaging.

7. Q: When are handling instructions required in packaging?

A: Packaged consumer products which may be endangered even by ordinary
handling shall indicate in their labeling appropriate handling procedures in
order to protect the product. Where accessories of a consumer product are
packaged separately, the packaging of such accessories shall also be
provided with appropriate care and/or handling instructions.

8. Q: What are the requirements for dangerous packaging?

A: Where the packaging of a consumer product poses danger to person or
property upon improper use, handling or disposal, a warning or indication
as to what improper use, handling or disposal should be avoided, shall be
provided on the packaging itself. Whenever possible, first-aid treatments
and information or when it is necessary to take the victim to a physician
shall also be provided in the package labeling.
9. Q: What are the requirements for the packaging of dangerous products?
A: Whenever practicable, consumer proucts or accessories which are likely to
cause injury to persons or damage to property shall be packaged in such a
way as to prevent accidents in handling such products. Where precautions
or warnings are necessary, they shall be provided in the package labeling in
clear, conspicuous and unmistakable terms.

10. Q: What comprises special packaging for children?

A:
Appropriate warnings, such as "Warning: Keep out of reach of children",
or words to such effect shall be provided in its outermost packaging. Such
warnings shall be directed to adults. However, whenever possible,
warnings directed to or understandable by children shall be provided.
Moreover, packaging of dangerous or accident-prone consumer products or
those likely to cause injury to persons shall be made difficult for children
to open.

11. Q: What is the penalty for violation of this provision?

Criminal Penalty
A fine of not less than Five Hundred Pesos (P500.00) but not more than
Twenty Thousand Pesos (P20,000.00) or imprisonment of not less than
three months but not more than two years or both, at the discretion of the
court: Provided, that, if the consumer product is one which is not food,
cosmetic, drug, device or hazardous substance, the penalty shall be a fine
of not less than Two Hundred Pesos (P200.00) but not more than Five
Thousand Pesos (P5,000.00) or imprisonment of not less than one month
but not more than one year or both at the discretion of the court. (Article
95, Consumer Act)

Administrative Penalty
The imposition of administrative fines in such amount as deemed
reasonable by the Secretary, which shall in no case be less than Five
Hundred Pesos (P500.00) nor more than Three Hundred Thousand Pesos
(P300,000.00) depending on the gravity of the offense, and an additional
fine of not more than One Thousand Pesos (P1,000.00) for each day of
continuing violation. (Article 164, Consumer Act)

Q: What is protection of product through packaging?

12.
A: The packaging of consumer products shall reasonably serve to protect
the product under ordinary handling until the same is to be used by the
buyer within a reasonable time.

13. Q: Are artistic or aesthetic considerations in the packaging of the product

 allowed?
A Yes, artistic or aesthetic considerations in the packaging of consumer
products shall be allowed provided steps are taken to avoid possible
misconception by consumers as to product contents, size, quantity,
measurement or fill.

14. Q: Can the packaging of consumer products under sales promotion differ or
vary from that of products for regular distribution?
A: Yes, provided that the contents, size, quantity, measurement or fill thereof
are not affected to the prejudice of the purchaser.

15. Q: What is a non-functionally slacked-filled packaged consumer product?

A: A consumer product packed filled less than its capacity is a non-
functionally slack-filled packaged consumer product.

16. Q: Is non-functionally slacked-filled packaging allowed by law?

A: Yes, provided it clearly and conspicuously indicates in its labeling the
correct quantity of its contents, size, measurement or fill. However, basic
necessities are not allowed to use non-functionally slack-filled packaging.

17. Q: When are handling instructions required in packaging?

A: Packaged consumer products which may be endangered even by ordinary
handling shall indicate in their labeling appropriate handling procedures in
order to protect the product. Where accessories of a consumer product are
packaged separately, the packaging of such accessories shall also be
provided with appropriate care and/or handling instructions.

18. Q: What are the requirements for dangerous packaging?

A: Where the packaging of a consumer product poses danger to person or
property upon improper use, handling or disposal, a warning or indication
as to what improper use, handling or disposal should be avoided, shall be
provided on the packaging itself. Whenever possible, first-aid treatments
and information or when it is necessary to take the victim to a physician
shall also be provided in the package labeling.

19. Q: What are the requirements for the packaging of dangerous products?
A: Whenever practicable, consumer proucts or accessories which are likely to
cause injury to persons or damage to property shall be packaged in such a
way as to prevent accidents in handling such products. Where precautions
or warnings are necessary, they shall be provided in the package labeling in
clear, conspicuous and unmistakable terms.
On Sales Promotion
 What does sales promotion
mean?
 What are exempted from the
rules on sales promotion
campaigns?
 What must a person do if he
intends to conduct a sales
promotion?
 What are the requirements for
recurring sales promotion
campaigns?
 What is the requirement if a
sales promotion campaign
has several sponsors?
 What is the degree or extent
of a sponsor’s participation
and responsibility?
 What specific information
should be included in the
application?
 Are there exemptions from
permit requirements?
 What are the prohibited acts
in the conduct of sales
promotion?
 May an approved sales
promotion campaign be
discontinued or cancelled?
 How should voluntary
cancellation be made after
publication but before
commencement of the
promotion period?
 How is voluntary cancellation
of ongoing promotion made?
 What specific information
should be included in the
announcements, publication
or advertisement of the
mechanics of the sales
campaign?
 What are the other
requirements for a sales
promotion campaign?
 When is the presence of
participants required in the
selection of winners?
 What is the general rule on
the duration and extension of
promotion period?
 May a sponsor or promoter
make some changes in the
conduct of sales promotion
without the knowledge and
approval of DTI?
 What is the rule on the
postponement or extension
of grand draws or final
selection of winners?
 When can a winner claim his
prize?
 How long can a sponsor hold
price reduction promotions?
 In price reduction promotions
with a period, is the use of
the phrase "WHILE SUPPLY
LASTS" allowed?
 What should a winner do if
he lost his raffle stub?
 What is the liability of the
sponsor/promoter in case
the prize was mistakenly
given to a holder presenting
a fake form?
 What is the rule in
disseminating/advertising
information regarding sales
promotions campaigns?
 Can prizes be transferred or
converted to cash or in kind?
 Can prizes, premium or
benefit under a sales
promotion campaign be
reduced in quality and
quantity?
 What are the guaranties,
warranties and remedies
available to consumers
under a sales promotion
 campaign?

 What are the sanctions for

violation of these provisions?

1. Q: What does sales promotion mean?

A:
Sales promotion means techniques intended for broad consumer
participation which contain premises of gain such as prizes, in cash or
in kind, as reward for the purchase of a product, security, service or
winning in a contest, game, tournament, and other similar
competitions which involve determination of winner/s and which utilize
mass media or other widespread means of information. It also means
techniques purely intended to increase the sales, patronage and/or
goodwill of a product.

2. Q: What are exempted from the rules on sales promotion campaigns?

 A: Those exempted are:

o Sales promotion campaigns sponsored by the

government or by any of these agencies or
instrumentalities when the same is conducted in the
exercise of their governmental functions.
o Imported products under promotion in their country of
origin, not covering the Philippines, whether or not,
benefit redounds accidentally to local buyers.

o Social, civic, political, religious, educational and other

similar organizations which extend promotional activity
among their members. Provided, that the promotional
activity is not considered sales promotion campaign as
defined under these Rules.
3. Q: What must a person do if he intends to conduct a sales promotion?

A: Any person intending to conduct any form or scheme for a sales

promotion campaign of a consumer product, service or credit shall
first secure a permit from the Department at least thirty (30) days
before the commencement of the promotion period.

4. Q: What are the requirements for recurring sales promotion campaigns?

A:
For recurring sales promotion campaigns involving the same scheme
and mechanics but with different or undetermined promotion periods,
a single application for the permit covering a period of one (1) year is
deemed sufficient compliance with these rules.

5. Q: What is the requirement if a sales promotion campaign has several

sponsors?

A: Where there are several sponsors to the sales promotion campaign, a

single application for permit may be filed, provided that all the
sponsors shall sign the application or submit therewith a true copy of
any written agreement between and among themselves stating that
they are the sponsors of the sales promotion campaign.

6. Q: What is the degree or extent of a sponsor’s participation and

responsibility?

A: The degree or extent of a sponsor’s participation and responsibility

may be stated in the application or agreement. Where no limitation as
to the extent of the liability or responsibility is indicated, each sponsor
shall be deemed fully responsible for the sales promotion campaign.
7. Q: What specific information should be included in the application?
A: The application for permit to conduct a sales promotion campaign
shall be in the form required by the Department which shall contain
the following information and documents:

o The complete name, address, and telephone number, if

any, of the sponsor(s) of the sales promotion campaign;
o The complete name, address, and telephone number, if
any, of the sales promotion agent or agency, if any;
o The complete name, address, and telephone number, if
any, of the person/s who may be contacted by the
participants of the promotion for inquiries, complaints,
and similar purposes;
o The consumer product, its brand, classification and/or
size or the kind and extent of the consumer service or
credit to be promoted;
o Proof of registration of the product or business being
promoted if the same is required by any government
agency;
o The geographical area to be covered;
o The type or nature of the sales promotion campaign to
be undertaken;
o The sales promotion period;
o The target participants and the required qualification, if
any;
o The type of announcement and/or information
dissemination that will be used for the sales campaign
or promotion including the text or substance of such
announcement or information to be disseminated to the
public;
o The mechanics and the criteria, if any, for participating
and winning in the sales promotion campaign;
o The procedure for predetermination of winning entry
forms, and if applicable, the computer program to be
used;
o The type of entry forms and/or paraphernalia to be used
in the promotion;
o The plan for seeding of qualifying entry forms,
paraphernalia, or predetermined winning entry forms;
o The date, time and place for auditions, try-outs, pre-
qualification and/or qualification of participants to the
promotion, if the same is required;
o The security marks, if any, or the nature thereof in the
entry forms and/or paraphernalia to be used in the
promotion, their purpose, the method of their
verification, and a sample specimen of such entry form
or paraphernalia containing such security mark;
o The deadline of submission of entries;
8. Q: Are there exemptions from permit requirements?

A: Permits for the following sales promotion activities need not be

applied for:

o Competitions, except beauty contest conducted

nationwide, which do not require the purchase, lease, or
payment for any consumer product or service or
availment of consumer credit;
o Parlor games, whether held live during stage shows,
parties, special occasions and/or utilizing any form of
mass media where the qualification to be a participant
and/or a home partner of the winner does not require
the purchase or lease of any consumer product or
service or the availment of a consumer credit facility
and/or the sending or presentation of any proof thereof;
o Door prizes given to patrons of concerts. Stage shows,
stage plays, film showing and similar activities; and
o Instant sales promotion campaigns;

o In store promotions, such as, but not limited to price

reduction promotions, discount sales and premium-in
pack in which no advertisements are made on such
sales promotion campaign. Provided, however, that
sales promotion campaigns exempted from permit
requirement shall be subject to all the other pertinent
rules and regulations on sales promotion campaigns.

9. Q: What are the prohibited acts in the conduct of sales promotion?

A: Prohibited acts include:

o Gambling and Wagering Schemes - No gambling or

wagering scheme, as prohibited under existing laws
shall be allowed in the conduct of any sales promotion
campaign.
o Use of Medical Prescriptions - No sales promotion
campaign using medical prescriptions or any part
thereof or attachment thereto shall be allowed nor
permit be issued.
o Other prohibited activities:
o No act, product, scheme, or activity prohibited or
declared illegal under the law shall be allowed in the
conduct of any sales promotion campaign. Where an
imported product is under international sales promotion,
and such promotion is prohibited in the Philippines, the
 local distributor of the same shall indicate by a notice on
or accompanying the product that such sales promotion
campaign is not applicable in the Philippines.

o No person shall directly or indirectly tamper with the

entries and/or paraphernalia in a sales promotion
campaign nor unduly influence the results thereof or
perform any act to the prejudice of legitimate
participants and/or winners.

10. Q: May an approved sales promotion campaign be discontinued or

cancelled?

A: An approved sales promotion campaign may be discontinued or

cancelled by the sponsor/s motu propio provided that no information
dissemination and advertising of the same has been made yet. In
such a case, written notice shall be sent to the Department prior to
such voluntary cancellation.

11. Q: How should voluntary cancellation be made after publication but

before commencement of the promotion period?

A: If any announcement, information , dissemination or advertising of the

sales promotion campaign has already been made, but the promotion
period has not yet commenced, the discontinuance or cancellation of
the promotion may be made only upon prior written notification to the
Department and the discontinuance or cancellation of the sales
promotion shall immediately be disseminated in the same manner,
frequency and medium as the promotion has been announced,
published or advertised before the originally intended commencement
of the promotion.

12. Q: How is voluntary cancellation of ongoing promotion made?

A: Voluntary cancellation or discontinuance or suspension of any

ongoing sales promotion campaign shall not be allowed except upon
approval from the Department. The Department may allow such
cancellation on any of the following grounds:

o A final judgment of insolvency of the sponsor/s from a

court of proper jurisdiction;

o The occurrence of any fortuitous event that will make it

impossible for all sponsors to continue to deliver the
products or services which has to be purchased or
leased or paid for in order for one to participate in the
 promotion: Provided, however, that those who had
already won in the promotion before approval of its
cancellation is granted shall be paid their prizes.

13. Q: What specific information should be included in the announcements,

publication or advertisement of the mechanics of the sales campaign?

A: The time, dates, and places of the following events in the sales
promotion campaign shall be made definite in the announcement,
publication or advertisement of the mechanics of the sales campaign:

o The promotion period:

o The deadline for submission of entry forms or entering
as participant in the promotion;
o The location of drop boxes for entry forms and/or the
address where entry forms may be sent, or where one
may inform the sponsor of one's intention to participate
in the promotion;
o The time/date, and place of the pre-draws, pre-
qualifications, try-outs, or auditions to qualify as
participant to the sales promotion;
o The time, date and place of preliminary draws,
preliminary selection or predetermination of winners of
the promotion;
o The time, date and place of final draws or final
determination of the winners of the promotion;

o The time, duration and place where prizes may be

claimed by the winners.

14. Q: What are the other requirements for a sales promotion campaign?

A: Other requirements include:

 Availability of entry forms to participants - Where entry forms

are to be obtained at specific places, the same shall be made
available to qualified participants during office or store hours,
unless other ways of obtaining them are specified in the
mechanics of the promotions.
  Deadline for submission of entries - The deadline for
submission of the entries shall be at least one day before the
date of the draw or selection winners, unless, otherwise, the
scheme utilized makes the one day period impracticable.
 Draw dates, date of selection of winners - Draw dates or date
of selection or determination of participants or winners to a
sales promotion campaign shall not be more than two weeks
after the deadline of the submission of entries, the pre-
qualification, audition or try-out.
 List of winners - Except in the case of sales promotion
campaigns involving redemption where the prizes are
negligible or those exempted from applying for a permit, a list
of the names of winners, their addresses and corresponding
prizes, shall be furnished the Department immediately after
their being drawn or selected.

15. Q: When is the presence of participants required in the selection of

winners?

A: The presence of participants shall not be required in the

determination of winners of any sales promotion campaign except in
the following cases:

 Instant sales promotion;

 In the case of competitions, games or parlor games where the
presence of the participants is essential to determine the
winner; and
 Such other forms of sales promotion campaigns the nature of
which demand the presence of the participants.

16. Q: What is the general rule on the duration and extension of promotion
period?

A: The sales promotion campaign shall have a duration of not more than
a year, extendible to a maximum of six (6) months upon approval by
the Department.

17. Q: May a sponsor or promoter make some changes in the conduct of

sales promotion without the knowledge and approval of DTI?

A: No. Any changes on the conduct of sales promotion such as

extension or delay in the dates of the starting, termination and
determination or selection of winners, venue of draws, auditions, and
 try-outs, duration, mechanics, procedures or terms and conditions of
sales promotions campaigns, and qualifications required of the
participants, criteria in the determination and selection of winners
cannot be made without the knowledge and approval of DTI. The
aforementioned changes shall be published, announced, or
advertised at least twice before such change is effected.

18. Q: What is the rule on the postponement or extension of grand draws or

final selection of winners?

A: Grand draws or final selection of winners may only be postponed

once, upon the approval of the Department and shall be held within
the next two (2) weeks after the date of the previously scheduled
grand draw.

19. Q: When can a winner claim his prize?

A: A winner shall have at least 60 days from the date of publication or

announcement or notification of winners.

20. Q: How long can a sponsor hold price reduction promotions?

A: Any price reduction promotion on any consumer product or service

shall not exceed three (3) months. However, in the case of closing-out
sales, the period shall be six(6) months.

21. Q: In price reduction promotions with a period, is the use of the phrase
"WHILE SUPPLY LASTS" allowed?

A: No. Where such qualification is made in a sales promotion campaign

with a period, the sponsor shall be liable therefore throughout the
duration of the promotion, whether or not the supply of the products
under promotion has been depleted.

22. Q: What should a winner do if he lost his raffle stub?

A: The winner will execute an affidavit of loss, together with any of the
following: affidavit of at least two (2) interested persons attesting to
his identity, certification of the barangay captain that the winner is
really a resident of that place, and other identification papers.

23. Q: What is the liability of the sponsor/promoter in case the prize was
mistakenly given to a holder presenting a fake form?

A: The sponsor who committed a mistake by giving the prize to a holder

presenting a fake entry form, the same shall not be a reason to
 withhold the payment of the prize to the holder presenting the
genuine entry form.

24. Q: What is the rule in disseminating/advertising information regarding

sales promotions campaigns?

A: All advertising/information materials indicating or describing the

mechanics of the promotion shall conform with the mechanics
approved by the Department. Sales promotion campaigns shall
include in their advertisement, publication or announcement the
phrase "Per DTI (Regional or Provincial Office) Permit No. ___ Series
of (Year)" with the corresponding control number as may provided by
the Department.

25. Q: Can prizes be transferred or converted to cash or in kind?

A: Prizes in the form of foreign or domestic trips and with or without

accommodations and scholarships, shall either be transferable,
convertible to cash or both. In such cases, the cash equivalent of the
prize shall be disclosed in the sales promotion campaign
announcements, publications and advertisements.

26. Q: Can prizes, premium or benefit under a sales promotion campaign be

reduced in quality and quantity?

A: No reduction in quality or quantity in the products or services under

sales promotion nor in the prizes, premium or benefit granted by
reason of the same shall be allowed.

27. Q: What are the guaranties, warranties and remedies available to

consumers under a sales promotion campaign?

A: Buyers of products and services sold under a sales promotion, as

well as winners, with reference to their prizes shall enjoy the same
guaranties, warranties and remedies provided for under RA 7394 or
the Consumer Act of the Philippines and other pertinent laws.

28. Q: What are the sanctions for violation of these provisions?

A: Any of the following administrative sanctions provided under Article

164 of the Consumer Act of the Philippines may be imposed even if
not prayed for in the complaint:issuance of cease and desist order

o undertaking of compliance from the respondent

o imposition of administrative fines ranging from P500 to

 P300,00

Consumer Welfare Desks (CWD's)

In Business Establishments
Cebu Province

DTI's program on the setting-up of

Consumer Welfare Desks (CWDs) is
gradually gaining the support of the
business community because of the
tremendous benefits these desks
give not only to consumers but to
business establishments as well.

The Department encourages more

business firms to develop
comprehensive complaints-handling
programs and hopes that business
will eventually realize the benefits
they gain in setting up CWDs.

This page will provide procedures for resolving consumer complaints thru CWDs
or any in-house complaints-handling programs you already have. An in-house
complaints program like CWD can operate quickly and inexpensively. This will
definitely redound to the benefit of the firms because this is a surefire formula for
building consumer patronage.

Effective Selling Technique

Looking for new and effective selling techniques or come-ons to attract and keep
satisfied customers? One proven strong selling point is making prospective
customers aware that your firm has set up a Consumer Welfare Desk that is
responsive to the needs of the buying public.

Keeping Consumers Satisfied and Loyal

Reputable firms attest to the fact that consumers who complained about their
problem and received satisfactory results exhibited the highest degree of
continued patronage. Hence, these firms even welcome complaints.

Complaints as Built-In Warning Signs

Consumer complaints serve as early warning signs that your business may be
violating some fair trade laws and provide you an excellent opportunity to correct
the problem as soon as it crops up.

Source of Valuable Information

In lieu of market surveys which are costly, information gathered thru your CWDs
can help you evaluate the quality of your products as well as the kind of service
and public relations of your personnel.

Business-Government Relations Enhanced

You will find that a well-managed CWD will improve and enhance your
relationship with government agencies that have jurisdiction over business. In
fact, your efficient handling of consumer complaints is a big load off the shoulders
of government agencies.

Checklist of Procedures
The following is the checklist of procedures to remember in setting up the CWDs:
Consistency
 Set up uniform procedures for receiving, recording and resolving
complaints. It is advisable to put your company's policy in writing.
 Give specific guidelines to employees assigned to man the CWD and spell
out how much discretion they can exercise for specific cases.
 The CWD ensures that consumers are not referred from one person to
another. In other words, the buck should stop at the CWD.
 Provide standardized complaints form to ensure that all necessary
information are elicited from the complainant, whether complaints are by
mail, telephone or walk-in.
 If necessary, conduct training seminars to improve staff skills in handling
complaints. Encourage them to handle complaints courteously and fairly.
 Monitor the procedure to find out how effectively your system works.

Accessibility

 Announce to the public the availability of the CWD in your store.

 Place the CWD in a conspicuous place.
  Make the procedure simple, clear, and convenient. Assure the customer
that complaints are accepted during business hours, whether complaints
are filed personally or by phone.
 If supervisors are needed to handle complaints outside the CWD's
jurisdiction, make sure these supervisors are available at all times.
 Make sure that the consumer's first impression of your store's complaints-
handling procedure is positive, not negative.

Objectivity

 Give the consumer an opportunity to present her side. Many small

problems can be prevented from developing into big headaches for your
store if an expert, knowledgeable person is assigned to man the CWD.

Promptness

 Try to resolve complaints as fast as possible. The longer it takes you to

resolve a complaint, the more time you lose precious business hours and
the more likely frustrated consumers will go to other stores in the future.
Consumers will appreciate your quick response even if all you do is
acknowledge and receive the complaint.
 When an immediate written response to a complaint is necessary, use
telegram.

Monitoring/Recording/Follow-up

 Data and information gathered from CWD records can be extremely

helpful to the business in a number of ways. A systematic analysis of
complaints can help you identify specific problems regarding your
products, suppliers or employees and help you avoid the same problem in
the future.
 Follow up and record-keeping can identify bottlenecks and show
consumers that their feedbacks are important.

Remember! A satisfied consumer is your best advertisement.