Photo from Department of Trade and Industry website
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE
- The State shall encourage, support, and protect trade, industry and consumer protection institutions that will harmonize and safeguard consumers’ interest, free from pernicious restraints and practices.
- It shall uphold the business enterprise as the basis of economic growth, expansion and change.
- It shall assist the private sector in creating just and viable socio-economic structures in trade and industry conducive to greater productivity and higher incomes. (Section 1, Executive Order No. 133, series of 1987)
It shall be the national policy of the State to pursue a private sector-based growth strategy, centered on a socially responsible program to deregulate business in a manner that shall encourage private initiative and create a dynamically competitive economic environment, but assure equal opportunity to all members of the business community, whether small or large, whether rural or urban. (Section 1, Executive Order No. 133, series of 1987)
The government, through the Department of Trade and Industry (DTI) shall provide institutional services to the private sector. These institutional services include investment and export promotion, market information, product research and development, technological assistance, manpower training, infrastructure support, fiscal incentives, and such other services that shall facilitate increased international trade, improve national productivity and accelerate industrialization.
The Department of Trade and Industry, hereinafter referred to as Department shall be the primary coordinative, promotive, facilitative and regulatory arm of government for the country’s trade, industry and investment activities. It shall act as catalyst for intensified private sector activity in order to accelerate and sustain economic growth through: (a) a comprehensive industrial growth strategy, (b) a progressive and socially responsible liberalization and deregulation program, and (c) policies designed for the expansion and diversification of trade, both domestic and foreign. (Section 2, Executive Order No. 133, series of 1987)
The law says:
SEC. 3. Powers and Functions. To fulfill its mandate the Department is hereby authorized to perform the following powers and functions:
(a) Plan, implement and coordinate activities of the government related to trade, industry and investments;
(b) Promote, initiate, or conduct Annual Trade and Industry Development Planning Conferences between government and the private sector, to be held at the beginning of the third quarter of the budget year;
(c) Build up and maintain the currency of the trade and industry data base of the Department’s information system through a continuing and well-coordinated program of data search and information processing;
(d) Develop and maintain an integrated computerized marketing information system for trade, industry and investments with a domestic and international scope;
(e) Encourage and support the formation of People’s Economic Councils at regional, provincial and municipal levels as well as other trade, industry and consumer protection institutions or associations;
(f) Formulate and implement programs to strengthen industries adversely affected by the economic crisis, particularly those that have a good probability of attaining financial viability;
(g) Formulate plans and programs that shall encourage projects which effect dispersal of industries to the rural areas, promote manufactured goods for export, and develop small and medium scale industries;
(h) Upgrade and develop the manufacture of local capital goods and precision machinery components;
(i) Formulate and administer policies and guidelines for the investment priorities plan and the delivery of investment incentives;
(j) Assist the investment one-stop action center in pursuing the latter’s objective of providing under one roof all investment assistance services of the government, in accordance with established policies and guidelines;
(k) Coordinate efforts in formulating long term industry sectoral plans with the private sector;
(l) Formulate the appropriate mechanics to guide and manage the transfer of appropriate industrial technology in the country;
(m) Formulate country and product export strategies which will guide the export promotion and development thrusts of the government;
(n) Implement programs and activities geared towards the overseas promotion of Philippine exports in overseas markets;
(o) Take the primary role in negotiating and reviewing existing international trade agreements, particularly those affecting commodity quotas limiting existing exports of Philippine products to determine programs for renegotiations of more favorable terms;
(p) Promote domestic trade, marketing and distribution to ensure the rational, economical and steady flow of commodities from producing and/or marketing centers to areas in short supply;
(q) Promote, develop, regulate and accredit repair and service enterprises in accordance with existing laws, Executive Order No. 709 (1981) notwithstanding;
(r) Formulate and implement regulations for the protection of industrial property rights and in particular, patents and trademarks;
(s) After due notice and hearing, establish orderly marketing arrangements for locally produced and imported manufactured goods, and for raw materials used by manufacturing and construction;
(t) Administratively adjudicate and impose reasonable fines and penalties for violation of existing trade and industry laws;
(u) Prepare, for consideration of the Monetary Board, proposed programs in the commercial banking sector for directing commercial lending facilities towards priority areas of commercial and industrial development, as well as coordinate government direct funding and financial guarantee programs to achieve trade and industry growth;
(v) Create, in cooperation and coordination with the Department of Labor and Employment, a center which will provide assistance to the public relative to industrial relations;
(w) Issue subpoena and subpoena duces tecum to compel the attendance of witnesses and the production of the necessary information, papers and documents which it may deem necessary in the exercise of its powers and functions;
(x) Prescribe and enforce compliance with such rules and regulations as may be necessary to implement the intent and provisions of this Executive Order, which rules and regulations shall take effect immediately following their publication in two newspapers of general circulation in the Philippines;
(y) Perform such other functions as may be necessary or incidental in carrying into effect the provisions of this Executive Order and as may be provided by law. (Section 3, E.O. No. 133, s. 1987)
Jurisprudence says:
In these trying times when fly-by-night establishments and syndicates proliferate all over the country, lurking and waiting to prey on innocent consumers, and ganging up on them like a pack of wolves with their sugar-coated sales talk and false representations disguised as “overzealous marketing strategies,” it is the mandated duty of the Government, through its various agencies like the DTI, to be wary and ready to protect each and every consumer. To allow or even tolerate the marketing schemes such as these, under the pretext of promotional sales in contravention of the law and its existing rules and regulations, would result in consumers being robbed in broad daylight of their hard earned money. This Court shall not countenance these pernicious acts at the expense of consumers. (Aowa Electronic Philippines, Inc. v. DTI, G.R. No. 189655, April 13, 2011)
Question:
Does the Department of Trade and Industry have the power to inspect the quality and safety of products for sale to consumers?
Answer:
Yes, under Article 17 of the Consumer Act, the DTI has the authority to inspect and analyze consumer products for purposes of determining conformity to established quality and safety standards. (PPC Asia Corporation v. DTI, G.R. No. 246439, September 08, 2020)
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