How does the consumer act of the philippines protect the consumers when buying products?
On 6 May 2022, Republic Act No. 11765, otherwise known as the Philippine Financial Products and Services Consumer Protection Act (“FCPA”), was signed into law. The FCPA was enacted to ensure that appropriate mechanisms are in place to protect the interest of consumers of financial products and services[1] under the conditions of transparency, fair and sound market conduct[2], and fair, reasonable and effective handling of financial consumer[3] disputes. Show Significant provisions of the lawFinancial regulators are vested with expanded powers to implement the provisions of the FCPA Under the FCPA, financial regulators (i.e., the Bangko Sentral ng Pilipinas (“BSP”), Securities and Exchange Commission (“SEC”), Insurance Commission (“IC”) and the Cooperative Development Authority (“CDA”)) are mandated to enforce the provisions of the FCPA on all financial service providers[4] that fall under their respective jurisdictions. To allow them to properly implement this mandate, the FCPA vests in financial regulators the following powers:
Financial service providers are charged with duties and responsibilities under the FCPA To ensure that the interest of financial consumers are also protected from the level of the providers, financial service providers are charged with multiple duties and responsibilities. The salient duties and responsibilities of financial service providers include the following:
ConclusionDuring the Senate deliberation for the FCPA, former BSP Governor Benjamin Diokno reported that the BSP Consumer Assistance Mechanism received 42,456 consumer complaints from 2020 to 2021 while the IC received 2,992.[5] Given these figures, the passage of the FCPA could not have come at a better time. The measures and mechanisms set in place by the FCPA strengthening existing consumer protection regulations specifically in relation to financial products and services would work well to reinforce confidence in the financial market and foster stability of the Philippine financial system. If you have any questions or require any additional information, please contact Felix Sy and Dane M. Estepa of Insights Philippines Legal Advisors (a member of ZICO Law). This alert is for general information only and is not a substitute for legal advice. [1] Financial product or service refers to financial products or services which are developed or marketed by a financial service provider which may include, but not limited to, savings, deposits, credit, insurance, pre-need and health maintenance organisation (“HMO”) products, securities, investments, payments, remittances and other similar products and services. It includes digital financial products or services which pertain to the broad range of financial services accessed and delivery through digital channels. [2] Market conduct refers to the manner by which a financial service provider designs and delivers its financial products or services and manages its relationship with its clients and the public. [3] Financial consumer refers to a person or entity, or their duly appointed representative, who is a purchaser, lessee, recipient, or prospective purchaser, lessee or recipient of financial products or services. [4] Financial service providers refer to persons, natural or juridical, that provide financial products or services that are under the jurisdiction of the financial regulators as defined under the Philippine Financial Products and Services Consumer Protection Act. [5] Jocelyn Montemayor, Duterte signs law on financial consumer protection, available at https://malaya.com.ph/news_business/duterte-signs-law-on-financial-consumer-protection/ (last accessed 26 July 2022). What is the importance of the Consumer Act of the Philippines?The Law was enacted to protect the interests of consumers through the promotion of public health and safety measures, and the prevention of deceptive and unfair acts of unscrupulous businessmen.
What does the consumer protection Act do?The Consumer Protection Act (“CPA”) provides protection to these consumers against such suppliers. The CPA applies to an agreement concluded between a consumer and supplier in the ordinary course of business. A consumer is someone who buys or uses goods, or receives services from a supplier.
Who are responsible for consumer protection in the Philippines?The Consumer Protection Group (CPG), headed by Undersecretary Ruth B. Castelo, is in charge of the enforcement of laws to protect consumers, consumer education, and formation of consumer groups.
How do you protect your rights as a consumer?Consumer Rights. Right to safety. Means right to be protected against the marketing of goods and services, which are hazardous to life and property. ... . Right to choose. ... . Right to be informed. ... . Right to consumer education. ... . Right to be heard. ... . Right to Seek redressal. ... . Consumer Protection Act. ... . Ask Yourself!. |