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This article was originally published on June 1, 2022 and has been updated to reflect recent legal developments.
This article is provided for general informational purposes only and does not create, nor shall it be construed as creating, a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. For advice on specific legal concerns, you are encouraged to engage the services of a qualified lawyer. You may also directly consult Alburo Alburo and Associates Law Offices for proper guidance tailored to your situation.
The views and information presented herein are based on the laws, rules, and jurisprudence prevailing at the time of writing. They do not take into account subsequent legal developments and should not be relied upon as a substitute for professional legal advice.
AT A GLANCE:
Under Article 4(b) of Republic Act no. 7394, otherwise known as the Consumer Act of the Philippines, advertising means the business of conceptualizing, presenting or making available to the public, through any form of mass media, fact, data or information about the attributes, features, quality or availability of consumer products, services or credit.
“Many small things have been made large by the right kind of advertising.” – Mark Twain
In a marketplace driven by visibility and persuasion, advertising has become an indispensable tool for businesses seeking to promote their products and services. As discussed in our previous article, consumer products and services mean goods, services and credits, debts or obligations which are primarily for personal, family, household or agricultural purposes, which shall include but not limited to food, drugs, cosmetics, and devices.
For producers and sellers, effective advertising can translate directly into increased demand and higher revenue. Yet, the power to influence consumer behavior is not without limits. Philippine law imposes strict standards to ensure that advertisements inform rather than mislead, and persuade without deceiving.
What is Advertising?
Under Article 4(b) of Republic Act no. 7394, otherwise known as the Consumer Act of the Philippines, advertising means the business of conceptualizing, presenting or making available to the public, through any form of mass media, fact, data or information about the attributes, features, quality or availability of consumer products, services or credit.
This definition reflects the law’s recognition that advertising spans multiple platforms, from traditional print and broadcast media to modern digital channels.
Prohibited Acts: False, Deceptive, and Misleading Advertisements
The same law categorically protects consumers from false, deceptive, and misleading advertisements.
Article 110 of Republic Act No. 7394 states that it shall be unlawful for any person to disseminate or to cause the dissemination of any false, deceptive or misleading advertisement by Philippine mail or in commerce by print, radio, television, outdoor advertisement or other medium for the purpose of inducing or which is likely to induce directly or indirectly the purchase of consumer products or services.
When Does an Advertisement Become False, Deceptive and Misleading?
The determination of whether an advertisement is false, deceptive, or misleading goes beyond outright falsehoods is also provided under Article 110. It states that an advertisement shall be false, deceptive or misleading if it is not in conformity with the provisions of this Act or if it is misleading in a material respect. In determining whether any advertisement is false, deceptive or misleading, there shall be taken into account, among other things, not only representations made or any combination thereof, but also the extent to which the advertisement fails to reveal material facts in the light of such representations, or materials with respect to consequences which may result from the use or application of consumer products or services to which the advertisement relates under the conditions prescribed in said advertisement, or under such conditions as are customary or usual.
Take note that under Article 112 of Republic Act No. 7394, the law imposes special advertising requirements for food, drug, cosmetic, device, or hazardous substances, as follows:
- No claim in the advertisement may be made which is not contained in the label or approved by the concerned department.
- No person shall advertise any food, drug, cosmetic, device, or hazardous substance in a manner that is false, misleading or deceptive or is likely to create an erroneous impression regarding its character, value, quantity, composition, merit, or safety.
- Where a standard has been prescribed for a food, drug, cosmetic, or device, no person shall advertise any article or substance in such a manner that it is likely to be mistaken for such product, unless the article complies with the prescribed standard or regulation.
- No person shall, in the advertisement of any food, drug, cosmetic, device, or hazardous substance, make use of any reference to any laboratory report of analysis required to be furnished to the concerned department, unless such laboratory report is duly approved by such department.
- Any businessman who is doubtful as to whether his advertisement relative to food, drug, cosmetic, device, or hazardous substance will violate or does not conform with this Act or the concerned department’s pertinent rules and regulations may apply to the same for consideration and opinion on such matter before such advertisement is disseminated to the public. In this case, the concerned department shall give its opinion and notify the applicant of its action within thirty (30) days from the date of application; otherwise, the application shall be deemed approved.
- No person shall advertise any food, drug, cosmetic, device, or hazardous substance unless such product is duly registered and approved by the concerned department for use in any advertisement.
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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 09175772207/ 09778050020.
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