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LABAN KONSYUMER POSITION PAPER ON THE PROPOSED REVISED CONSUMER ACT

August 13, 2020


Cong Wes Gatchalian, Chairperson

Committee on Trade and Industry

Congress, Quezon City


Re: Substitute Revised Consumer  Protection Bill


Sir/Madam:


Thank  you for the invitation to paticipate in the TWG of the proposed Act. 


 Laban Konsyumer Inc. is a non  stock   and  non profit registered entity,  is a recognized local consumer  organization  of the Department of Trade and Industry in 2019  and a full term  member of  the Consumers International since 2017.


Overall, we are not endorsing the Substitute Revised Consumer Protection Bill in its present version but we are proposing a  leaner version   in  the light of other recently enacted laws as well as pending bills  that  empowers consumer protection and to  avoid repetitive and redundant provisions. Our proposal shall eliminate the splitting of responsibilities among different  implementing agencies over the same provisions of the Bill.


 On food, drugs, medical devices ,cosmetics and toys, and Households/Urban Hazardous substances  the Food and Drug Administration are empowered primarily in Republic Act 3702, as amended by Exeutive Order No. 175 and Republic Act No. 9711. More recently, the Food Safety Law or Republic Act No.  10611 expanded the powers of the Food and Drug Administration , and other  agencies including the Department of Agriculture and strengthened the food safety regulatory  regime in the country.


For financial consumer protection and literacy, there is a pending bill authored by Congressman Junie Cua entitled Financial Consumer Protection Bill or House Bill 6768 . It has been passed on 3rd reading and transmitted to the Senate on June 3,2020.  


Very recently, HB 6122 by the  Honorable Chairman  on Internet Transaction ,  proposed the creation of an E Commerce Bureau for e-commerce. 


The   bulk  of the proposed Bill shall continue the consumer protection functions of   the Trade and Agriculture Departments . However, the Agriculture Department primary duty is to ensure the growth of the agriculture sector. The same can be said for the Trade Department as it pursue the industry and competitiveness development of the country. 


It is thus our suggestion for the consideration of the TWG to  provide for  an entity solely and wholly as a Consumer Protection entity whose primary mandate shall be exclusively consumer welfare and protection, and an agency  outside the budgetary and manpower support of the Department of Trade and Industry.  


We likewise propose an oversight and advisory entity that will be composed of registered  consumer organizations  whose members shall serve pro bono and without regular compensation . Congress can be included as members of the oversight and advisory body.


 It  is possible that the  proposed E Commerce Bureau can be part of the Consumer Protection Entity.


On the consumer  rights under Section  4, we propose  to include the protection of consumers using electronic commerce that is not less than those afforded in other forms of commerce, the right to consumer  privacy and the  global free flow  of information and the promotion of sustainable consumption. These are contained in the recently  amended United Nations Guidelines in Consumer Protection or UNGCP .


We also propose to  add Principles of good business practices listed in the UNGCP such as  fair and equitable treatment, commercial behavior ,disclosure and transparency , education and awareness raising, protection of privacy, consumer complaints and disputes . 


Thank you again for the oppportunity to participate in the TWG.


Very truly yours,


 



Atty. Victorio Mario A. Dimagiba, AB, LLB, LLM

President 

August 13, 2020

LKI PRESS STATEMENT 2020-050


LKI CALLS FOR EXCLUSIVE CONSUMER WELFARE AGENCY FOR MAXIMUM CONSUMER PROTECTION



Consumer Advocacy Group Laban Konsyumer Inc. (LKI) wrote a letter today addressed to Congressman Wes Gatchalian, Chairperson on the Committee on Trade and Industry regarding the substitute revised consumer protection bill and called for the creation of an external and exclusive consumer welfare body outside DTI which will enhance and further improve the protection of the everyday Filipino consumer nationwide.


In the letter dated today,  LKI thanked the Chairperson for the invitation to paticipate in the TWG of the proposed Act, introducing themselves as a non  stock   and  non profit registered entity,  is a recognized local consumer  organization  of the Department of Trade and Industry in 2019  and a full term  member of  the Consumers International since 2017.


LKI President Atty. Vic Dimagiba wrote “Overall, we are not endorsing the Substitute Revised Consumer Protection Bill in its present version but we are proposing a  leaner version   in  the light of other recently enacted laws as well as pending bills  that  empowers consumer protection and to  avoid repetitive and redundant provisions. Our proposal shall eliminate the splitting of responsibilities among different  implementing agencies over the same provisions of the Bill.”


Dimagiba highlighted how “On food, drugs, medical devices ,cosmetics and toys, and Households/Urban Hazardous substances  the Food and Drug Administration are empowered primarily in Republic Act 3702, as amended by Exeutive Order No. 175 and Republic Act No. 9711. More recently, the Food Safety Law or Republic Act No.  10611 expanded the powers of the Food and Drug Administration , and other  agencies including the Department of Agriculture and strengthened the food safety regulatory  regime in the country.”


LKI explained that “For financial consumer protection and literacy, there is a pending bill authored by Congressman Junie Cua entitled Financial Consumer Protection Bill or House Bill 6768 . It has been passed on 3rd reading and transmitted to the Senate on June 3,2020.” 


The consumer group pointed out that “Very recently, HB 6122 by the  Honorable Chairman  on Internet Transaction ,  proposed the creation of an E Commerce Bureau for e-commerce.” 


Dimagiba expounded “The   bulk  of the proposed Bill shall continue the consumer protection functions of   the Trade and Agriculture Departments . However, the Agriculture Department primary duty is to ensure the growth of the agriculture sector. The same can be said for the Trade Department as it pursue the industry and competitiveness development of the country.” 


LKI therefore mentioned “It is thus our suggestion for the consideration of the TWG to  provide for  an entity solely and wholly as a Consumer Protection entity whose primary mandate shall be exclusively consumer welfare and protection, and an agency  outside the budgetary and manpower support of the Department of Trade and Industry.”  


The group express how “We likewise propose an oversight and advisory entity that will be composed of registered  consumer organizations across the country  whose members shall serve pro bono and without regular compensation . Congress can be included as members of the oversight and advisory body.”


Dimagiba pointed out “It  is possible that the  proposed E Commerce Bureau can be integrated in   the Consumer Protection Entity.


 On the consumer  rights under Section  4, we propose  to include the protection of consumers using electronic commerce that is not less than those afforded in other forms of commerce, the right to consumer  privacy and the  global free flow  of information and the promotion of sustainable consumption. These are contained in the recently  amended United Nations Guidelines in Consumer Protection or UNGCP.”


In conclusion, LKI said “We also propose to  add Principles of good business practices listed in the UNGCP such as  fair and equitable treatment, commercial behavior ,disclosure and transparency , education and awareness raising, protection of privacy, consumer complaints and disputes.”