Rights and Responsibilities of Consumers

The former President of the USA, Mr. John F. Kennedy, defined the basic consumer
right — “As the Right to Safety, The Right to be informed, The Right to choose
and the Right to be heard.”

RIGHTS OF CONSUMERS

1. Right to Safety- A consumer has a right to protect health and safety from the
goods and services he/she buys.
2. Right to be Informed – A consumer has a right to be informed of the quality,
price, ingredients of the products, purity, quantity and other relevant facts relating
to the product, he/she purchases.
3. Right to Choose- Every commodity and service should be available at a
reasonable price. This is possible only when there is competition which can
regulate the price at a reasonable level. When there is no competition in the
market the Government regulations should control the price level so that the high
quality product reaches the consumers. A consumer has a right to choose the
best quality product at fair price.
4. Right to be Heard- The right to be heard and assured that consumer’s interests
will receive due consideration at appropriate forums.
5. Right against Exploitation – A consumer has a right against exploitation by
unfair trade practices including fraudulent and misleading advertisements.
6. Right to Protection- A consumer has a right to protect and enhance the quality
of his life.
7. Right to seek Redress- A consumer has a right for the redressal of his
grievances, if any.
8. Right to receive after-sale service- A consumer has a right for service after
sale and for warranties and guarantees.
9. Right to fulfill basic requirements- The essential commodities for the survival
of human beings like food, clothing, housing, health, education, etc., have to be
fulfilled by providing appropriate facilities. There should be no exploitation of
consumers on essential commodities.
10. Right to be Educated- Consumer awareness and education should be created
by means of meetings, lectures, discussions, advertisements and articles.
 RESPONSIBILITIES OF CONSUMER

1. Seeking Appropriate Information

Consumer should be alert in seeking information about the product before
consuming.
2. Consumer Awareness
The consumer should be aware of the products quality, price, etc.,
3. Selecting The Right Product
After gathering ample information about the product, the consumer should make
a comparative analysis about the product.
4. Voicing Legitimate Complaints
In order to safeguard against the health hazards caused by consuming doubtful
products, it is the responsibility of the consumer to file a complaint against the
manufacturer.
5. Encourage Wise Manufactures Or Shopkeepers
Sometimes shopkeepers and manufactures resort to various corrupt practices.
Such retailers should be identified and exposed to the public. The consumers
should unite and cooperate with each other in the wake of such malpractices.
6. Establish A Consumer Cooperative Society Or Association
The consumer society should encourage consumers to become its members and
take active part in consumer related activities.
There should be more organizations like the Consumer Guidance Society Of
India to fight for the cause of consumers.

Consumers Can Help Themselves:

1. Know what you want

Effective shopping begins at home with preliminary decisions as to what
should be purchased and when. A shopping list should be prepared.

2. Intelligent buying
 Gather preliminary information about the product that the customer is
purchasing for the first time.
3. Learn to deal with the businessman
Customers should always aware and safe guard against tactics of salesmen.

4. Learn to use what you have

Furniture and other similar commodities can be put for various uses to get
maximum satisfaction.

5. Getting right information

Vague information regarding the products does not help the consumers in
making proper decision. In such cases, the consumer must insist on getting
required information from the manufacture, dealers or retailers.

Guidelines For Wise Purchase

Homemakers can observe the following few guidelines while purchasing.

1. Planning to buy – Planning their purchase.

2. Right quality – The item to be purchased should be judged according to the
desired quality in relation to its use.
3. Right quantity – Consumers should make their purchased according to the
needs and duration of use.
4. Right time – Certain goods are subject to seasonal variations . They are
cheap and quality wise good at certain time . Purchase ingredients at their
seasonal time.
5. Right price – One should make comparison of prices of the similar goods in
the market and select the products at the right price assuring the quality is
maintained.
6. Right vendor – Consumers should identify reliable vendors who would supply
quality products at the right time within reasonable costs.

Consumer Cooperatives

Consumer cooperatives are organized , owned and managed by the consumers

themselves. Their main aim is to eliminate the middleman and provide
commodities at lower prices.
A consumer cooperative exists to deliver goods are service rather than to
maximize profit from selling those goods or service.
 Republic Act No. 7394

Declaration of Policy

- It is the policy of the state to protect the interest of the consumer, promote
general welfare and to establish standards of conduct for business and
industry. The of this act is all focused to the welfare, protection and rights
of all the consumer in the Philippines.

The Objectives of the Act

• Protection against hazards to health and safety.

• Protection against deceptive, unfair, and unconscionable sales acts and

practices.

• Provision of information and education to facilitate sound choice and the proper
exercise of rights by the consumer.

• Provision of adequate rights and means of redress.

• Involvement of consumer representatives in the formulation of social and

economic policies.

Purpose of the Act

- This law is designed to prevent business that engage in fraud or specified

unfair practices from gaining an advantage over competitors and provide
additional protection for the weak and those unable to take care of
themselves.

Consumer Product Quality and Safety

 - To develop and provide safety and quality standards for consumer
products, including performance or use-oriented standards, codes of
practice and methods of tests.

- To assist the consumer in evaluating the quality, including safety,

performance and comparative utility of consumer products.

- To protect the public against unreasonable risks of injury associated with

consumer products.

- To undertake research on quality improvement of products and

investigation into causes and prevention of product related deaths, illness
and injuries.

- To assure the public of the consistency of standardized products.

Implementing Agencies

DEPARTMENT OF HEALTH- with respect to food, drugs, cosmetic devices and

substances.

DEPARTMENT OF AGRICULTURE- with respect to products related to

agriculture.

DEPARTMENT OF TRADE AND INDUSTRY- with respect to other consumer

products not specified above.
 Consumer Protection Against Fraudulent Practices

Consumer protection against fraudulent practices is a crucial aspect of safeguarding

consumer rights in the Philippines. The country has implemented various laws and
regulations to protect consumers from deceptive and unfair business practices.
Key Laws and Regulations:

The Consumer Act of the Philippines (Republic Act No. 7394):

This law outlines the rights of consumers and the obligations of businesses, aiming to
protect consumers against hazards to health and safety, deceptive sales acts, and
unfair practices.

Data Privacy Act of 2012 (Republic Act No. 10173):

This law protects personal data in information and communication systems, playing a
critical role in preventing scams involving unauthorized use of personal information.

Cybercrime Prevention Act of 2012 (Republic Act No. 10175):

This law criminalizes computer-related fraud, identity theft, and cyber squatting,
providing a basis for prosecuting online scams.

Consumers can report fraudulent practices to various agencies, including:

Department of Trade and Industry (DTI):

For complaints related to consumer protection and trade practices.

National Bureau of Investigation (NBI):

For complaints related to cybercrime and online scams.

Bangko Sentral ng Pilipinas (BSP):

For complaints related to banking and financial services.

By understanding consumer rights and reporting fraudulent practices, consumers can

protect themselves and help create a fair and safe market environment in the
Philippines.

Common Types of Fraudulent Practices

1. Phishing Scams: Fraudsters send fake emails or messages that appear to be from
legitimate sources, aiming to steal personal information.

2. Identity Theft: Scammers steal personal information, such as social security

numbers or credit card details, to impersonate victims.

3. Pyramid Schemes: Fraudsters promise unusually high returns on investments, but

the scheme relies on recruiting new victims to pay earlier investors.

4. Online Auction Scams: Scammers create fake online auctions or pose as sellers,
taking payment without delivering goods.

5. Credit Card Scams: Fraudsters steal credit card information or create fake cards to
make unauthorized purchases.

6. Investment scams: Scammers promise unusually high returns on investments, but

the investment is either non-existent or not as promised.

7. Charity scams: Fraudsters pose as charities, soliciting donations for non-existent or

fake causes.
8. Romance scams: Scammers create fake online profiles, building relationships to
extract money or personal information.

9. Fake online stores: Scammers create fake online stores, selling non-existent or low-
quality products.

10. Lottery and Prize Scams: Fraudsters contact victims, claiming they've won a prize
or lottery, but demand payment to release the winnings.

Consumer Protection Measures

1. Warranty and Guarantee

Businesses must provide warranty and guarantee for their products and services, ensuring that
consumers receive a minimum level of quality.

2. *Price Transparency*

Businesses must clearly display prices and any additional fees, ensuring that consumers know
exactly how much they will pay.

3. *Advertising Regulations*

Businesses must adhere to truth-in-advertising laws, ensuring that their advertisements are
accurate and not misleading.

4. *Product Safety*

Businesses must ensure that their products meet safety standards, protecting consumers from
harm.

5. *Data Protection*

Businesses must protect consumers' personal data, ensuring that it is not shared or used
without consent.

6. *Refund and Return Policies*

Businesses must have clear refund and return policies, ensuring that consumers can easily
return or exchange products that do not meet their expectations.

7. *Consumer Complaint Mechanisms*

Businesses must have a clear mechanism for consumers to file complaints, ensuring that issues
are addressed promptly and fairly.
 Common Problems Met By Consumers

• High prices of products

• Poor quality of product
• Failure to live up to advertising claims
• Poor quality of after-sales service
• Product breakage
• Misleading packaging or labeling
• Feeling that consumer complaints are a waste of time
• Inadequate guarantees and warranties
• Failure of company complaint handling
• Dangerous products
• Absence of reliable product/service information
• Not knowing what to do if something is wrong with product

BUYER/CONSUMER DECISION PROCESS

1. PROBLEM OR NEED RECOGNITION

► The first step of the buyer decision process is the need recognition stage. Here the
consumer recognizes a need or problem and feels a difference between the actual state
and some desired state. They try to find goods to satisfy such needs.

2. INFORMATION SEARCH
► The second stage of the purchasing process is searching for informa Once the need
is recognized, the consumer is aroused to seek more information and moves into the
information search stage.

Buyers or customers can get information about goods from different sources:

Personal Sources: This includes family, friends, neighbors, acquaintance, etc.

Commercial Source: This includes advertising, salespeople, dealers, packaging,
display, etc.
Public Sources: This includes mass media, consumer rating organizations, etc. they
also become confidential to provide information.
Experimental Sources: This includes handling, examining, using, etc. Such
information becomes decisive and confidential.

3. EVALUATION OF ALTERNATIVES

► With the information in hand, the consumer process to alternative evaluation, during
which the information is used to evaluate” brands in the choice set.

► Evaluation of alternatives is the third stage of the buying process. Various points of
information collected from different sources are used in evaluating different alternatives
and their attractiveness.

4. PURCHASE DECISION

► Purchase decision is the thought process that leads a consumer from identifying a
need, generating options, and choosing a specific product and brand. Some purchase
decisions are minor, like buying toothpaste, while other purchases are major, like buying
a house.
 5. POST-PURCHASE EVALUATION

►The post-purchase evaluation process is the fin stage in the consumer purchasing
process, one that’s sometimes ignored by marketers. After purchasing a product, a
customer will naturally evaluate it by comparing it and the purchasing process with their
expectations.

Objectives Of Consumer Education

Consumer education is an essential aspect of modern society that aims

to equip individuals with the knowledge, skills, and confidence to make
informed decisions about their purchases and consumption. The objectives
of consumer education are comprehensive and varied, encompassing a wide range
of topics that affect individuals’ daily lives. Some of the key objectives of consumer
education include:

1. Raising awareness:
One of the primary objectives of consumer education is to raise awareness about
consumer rights, responsibilities, and the importance of informed decision-
making.
2. Promoting critical thinking:
Consumer education encourages individuals to think critically about the products
they buy and use.
3. Developing decision-making skills:
Consumer education helps individuals develop the skills necessary to make informed
decisions about their purchases.
4. Encouraging sustainable consumption:
Consumer education promotes sustainable consumption practices, such as reducing
waste, recycling, and choosing environmentally friendly products.
5. Protecting health and safety:
Another key objective of consumer education is to protect individuals’ health and safety.
This includes providing information about food safety, product recalls, and
hazardous materials.

6. Promoting financial literacy:

Consumer education also aims to promote financial literacy, particularly
about personal finance and credit management.
7. Fostering consumer advocacy:
Consumer education aims to empower individuals to become active and informed
consumers who can advocate for their rights and interests.
In summary, the objectives of consumer education are comprehensive and aim to equip
individuals with the knowledge, skills, and confidence to make informed decisions about
their purchases and consumption. By promoting critical thinking, sustainable
consumption practices, and consumer advocacy, consumer education.

Understanding Consumer Behavior: How to Influence the Decision-making

Process

What is Consumer Behavior?

The study of consumer behavior is concerned with how individuals and organizations
make purchases and support brands. Behavior, motivations, and psychology are the
main areas of study in this field. Consumer behavior is at the root of the consumer
decision-making process, and so it must be clearly understood, defined and acted
upon across all service interactions.

Why is Consumer Behavior so important?

Consumer behavior defines what channels the consumer will go through on their way to
making a buying decision.

It’s actually the decision-making process that must be understood and leveraged, and
consumer behavior goes hand-in-hand with that. Consumer behavior is the process.
When a consumer embarks on the buying journey, they exhibit certain behaviors. They
think, feel and take action. These thoughts, feelings, and actions can be “helped along”
or guided. It is the understanding of consumer behavior that enables a product or
service provider to help the consumer make a satisfactory choice.

The key factors that affect consumer decision making:

Personal influences on Consumer Behavior
Personal influences on consumer behavior include demographic factors, personality
traits, and other personal characteristics that influence how people respond to products
and services.
Psychological influences on Consumer Behavior
Psychological factors include the consumer’s perception of their needs, mindset, and
perception of the provider and its services and/or products.
Social influences on Consumer Behavior
This factor includes social influences. It can be an existing social circumstance or a
social circumstance that the consumer aspires to. These include family and friends,
acquaintances, and – due to social media – perfect strangers online.
Situational influences on Consumer Behavior
Situational influences are most often temporary in nature, but they can be long-lasting.

Types of Consumer Behavior

Habitual buying behavior
Consumers’ habitual buying behavior is the pattern of their purchasing decisions. When
people are comfortable with a product and the associated brand, they tend to buy that
product again and again.
Variety-seeking behavior
This is marked when a consumer seeks variety and purposely chooses different venues
or products simply to introduce new things into their lives.
Dissonance-reducing buying behavior
This is when the consumer is heavily involved in the decision-making process and
conducts lots of research beforehand. Ultimately, the consumer experiences difficulties
making a final determination because they are worried about the buyer’s remorse.
Complex buying behavior
This type of behavior is exemplified by a consumer making a decision that they perceive
to be complex.

The consumer decision-making process steps

The consumer decision-making process is also widely known as the buyer’s journey.
The steps in the consumer decision-making process are the same, no matter what the
consumer is ultimately buying.
Awareness
In this first stage, the consumer first becomes aware that they have a problem. The
problem is not a problem in the traditional sense of the word; rather, it’s a need for
something.
Consideration
In this stage, the consumer feels and thinks about ways to solve their “problem.” They
are thinking about what they need, perhaps even making a list of criteria that they need.
Decision
In this stage, the consumer homes in on their final choice. They will be eliminating,
ruling out certain options that don’t suit their needs.
Consumer behavior trends
Consumer behavior trends are the changes in consumer behavior over time. These
trends can be modeled by looking at the data points of consumer spending, which is a
significant component of the economy.

The latest consumer behavior trends informing decisions in 2022 are:

Transparency
Consumer demand for transparency in the businesses they support has increased.
Consumers are more likely to do business with companies that align with their personal
beliefs and values.
Online purchases
Even before the pandemic, consumers were gravitating more toward online purchases,
making reservations and booking hotels via their devices. The pandemic grew this trend
exponentially and the travel industry is springing back unexpectedly quickly post-
pandemic.
Concerns about online security
More consumers are concerned with their online privacy and more aware of online
security’s potential dangers. Companies that emphasize consumer online security are
looked upon more favorably.
Preference for eco-friendly companies
Climate change is top of mind with consumers, and they are more likely to do business
with companies that practice eco-friendly behaviors.
Personalization and customization
Consumers want to feel like they have a unique experience, and they’re more likely to
buy when they feel like the product is being made just for them.
Bottom line
If marketers can determine what factors influence the buying decisions of their
prospective customers, they will be able to refine and tailor their marketing campaigns
accordingly.

Hazardous Substance

Any substance or mixture of substances which is toxic, corrosive, irritant, a strong

sensitizer, flammable or combustible or generates pressure through decomposition,
heat or other means, if such substance or mixture or substances may cause substantial
injury or substancial illness.

Hazardous substances are chemicals or materials that can cause harm to humans,
animals, or the environment. It’s essential to understand the risks associated with
hazardous substances and how to handle them safely.

Types of hazardous substances:

1.Toxic substances- can cause harm or death if ingested, inhaled, or absorbed through
the skin. Examples include pesticides, heavy metals, and industrial chemicals.
2. Flammable substances- can ignite and cause fires or explosions. Examples include
gasoline, propane, and lighter fluid.

3.Corrosive substances- can cause burns or damage to skin and surfaces. Examples
include acids, bases, and drain cleaners.

4.Reactive substances- can react with other substances to cause harm or damage.
Examples include bleach and ammonia.

Common hazardous substances in consumer products:

1.Cleaning products- many cleaning products contain hazardous substances like

bleach, ammonia, and quaternary ammonium compounds.

2.Pesticides- pesticides can contain toxic substances like organophosphates and

neonicotinoids.

3.Personal care products- some personal care products, like hair dye and nail polish,
can contain hazardous substances like paraphenylenediamine and toluene.

4.Household chemicals- household chemicals like paint, adhesives, and solvents can
contain hazardous substances like volatile organic compounds (VOCs) and heavy
metals.

Safety precautions for handling hazardous substances:

●Read labels carefully- understand the hazards and instructions for use.

●Wear protective gear- use gloves, masks, and eye protection when handling
hazardous substances.
●Use in well-ventilated areas- prevent inhalation of fumes and particles.

●Dispose of properly- follow instructions for disposal and recycling.

●Keep out of reach of children and pets- prevent accidental ingestion or exposure.

Consumer education resources:

▪︎National Institute of Environmental Health Sciences (NIEHS)- provides information

on hazardous substances and environmental health.

▪︎Environmental Protection Agency (EPA)- offers resources on hazardous

substances, pollution prevention, and environmental protection.

▪︎Consumer Product Safety Commission (CPSC)- provides safety information and

guidelines for consumer products.

▪︎Local health departments- offer resources and guidance on hazardous substances

and environmental health in your community.

DECLARATION OF POLICY

The state shall adopt measures designed ta protect the consumer against substances
other than food, drugs cosmetics and devices that are hazardous to his health and
safety.
ARTICLE 46. PROHIBITED ACTS

■ introduce or deliver for introduction into commerce of any mislabeled hazardous

substance or banned hazardous substance;

■ alter, mutilate, destroy, obliterate or remove the whole or any part of the label of a
mislabeled hazardous substance, or banned hazardous substance, if such act is done
while the substance is in commerce or while the substance is held for sale, whether or
not it is first sale;

■ receive in commerce any mislabeled hazardous substance or banned hazardous

substance and the delivery thereof at cost or otherwise;

■ give false guaranty to a person who relied upon such guaranty or undertaking which
he received in good faith;

■ introduce or deliver for introduction into commerce or receive in commerce and

subsequently deliver or preferred at cost or otherwise, or a guaranty or undertaking in a
reused food, drug, cosmetic or device container or in a container which, though not a
reused container, is identifiable as a food, drug, cosmetic or device container by its
labeling or by other identification.

Food, Drugs and Cosmetics and Devices

BASIC POLICY
To protect the health of the consumer by ensuring a safe and good quality of food,
drugs, cosmetics and devices and to regulate their manufacture, sale, distribution and
advertisement.

Article 23 Adulterated Food

 1. if it bears or contains any poisonous or deleterious substance which may render
it injurious to health; but in case the substance in not an added substance, such
food shall not be considered adulterated under this clause if the quantity of such
substance does not ordinarily render it injurious to health;
2. if it bears or contains any added poisonous or deleterious substance other than
one which is
i. a pesticide chemical in or on a raw agricultural commodity,
ii. a food additive
iii. a color additive, for which tolerances have been established and it conform to
such tolerances;
3. if it consists in whole or in part of any filthy, putrid or decomposed substance, or if
it is otherwise unfit for food;
4. it is has been prepared, packed or held under unsanitary conditions whereby it
may have become contaminated with filth, or whereby it may have been rendered
injurious to health;
5. if it is, in whole or part, the product of a diseased animal or of an animal

Article 24. Regulations of Unprocessed Food

The provincial municipal and city governments shall regulate the preparation and sale
of meat, fresh fruits, poultry, milk, fish, vegetables and other foodstuff for public
consumption, pursuant to the Local Government Code.

Common Violations In Foods Manufacture and Sale

1. The Department of Health has banned the use of potassium bromate as
ingredient in the making of breads because of adverse reports concerning its
safety.
2. Use of poisonous food colors in making bagoong and other products. The BFAD
has warned against the use of such dangerous dyes but manufactures continue
to use them.
3. Adulteration of hot dogs and similar products by the use of fillers such as flour to
add bulk.
4. Adulteration of rice by mixing high grade varieties with lower grade varieties.
5. Sale of poultry products injected with water to make them heavier.
6. Suspension of the importation of Rose Bowl canned foods from Malaysia was
made by the Bureau of Customs. The BFAD said that a laboratory analysis of
 Rose Bowl canned squid found it “either deteriorated, decomposed or with strong
offensive odor and with foreign matter inside.
7. The Government agents seized 30 million worth of mislabeled whiskey from local
liquor firm. These were allegedly mislabeled Johnny Walker Whiskey.
8. 8. FDA Case No. 54-75 Salvador Matienzo claimed that he bought a bottle of
Royal Tru-Orange which contained foreign matter.

Drugs and Devices

Article 29. Adulterated Drugs and Devices

1. If it is consist in whole or in part of any filthy, putrid, or decomposed substance
which may affect its safety, efficacy, and good quality; or
2. If it has been manufactured, prepared or held under unsanitary conditions
whereby it may have been contaminated with dirt or filth or whereby it may have
been rendered injurious to health; or
3. It is container is composed, in whole or in part, of any poisonous or deleterious
substance which may render the contents injurious to health; or
4. If it bears or contains any color other than a permissible one as determined by
the Department, taking into consideration standards of safety, efficacy, and good
quality.
5. Its strength differs from, or its safety, efficacy, quality or purity falls below the
standards set forth.
6. If a drug or device and any substance has been mixed or packed therewith, or
any substance has been substituted wholly or in part thereof, so as to reduce its
safety, efficacy, quality, strength or purity.

Article 32. Dangerous Drugs

 The importation, distribution, manufacture, production, compounding,
prescription, dispensing and sale of, and other lawful acts in connection with,
dangerous drugs of such kind and quantity as may be deemed necessary
according to the medical and research needs of the country and the
determination of the quantity/quantities to be imported, manufactured and held in
stock at any given time by an authorized importer, manufacturer or distributor of
dangerous drugs shall be under the jurisdiction and authority of the Dangerous
Drugs Board as provided for by existing laws and regulations.
Article 33. Banned or Restricted Drugs
 Banned or severely restricted drugs for health and safety reasons in their country
of origin shall be banned and confiscated or its uses severely restricted,
whichever is appropriate, by the Department. The Department shall monitor the
presence in the market of such drugs and cause the maintenance and regular
publications of an updated consolidated list thereof.

Article 35. Adulterated Cosmetics

1. If it bears or contains any poisonous or deleterious substance which may render
it injurious to users under the condition of use prescribed in the labeling thereof
2. If it consists in whole or in part of any filthy putrid, or decomposed substance
3. If it has been prepared, packed or held under unsanitary conditions whereby it
may have become contaminated with filth, or whereby it may have been
rendered injurious to health.
4. If its container is composed, in whole or in part, of any poisonous or deleterious
substance which may render the contents injurious to health.
5. if it is not a hair dye, and it bears or contains color additive other than which is
permissible.
6. if any of its substances have been (1) mixed or packed therewith so as to reduce
its quality or strength or (2) substituted wholly or in parts therefore.