ABM 008

D16
Differentiating the Four Approaches of Consumer Protection
The Four Approaches to Consumer Protection

The Market Approach - Sellers are free to produce the goods and services. Buyers are
assured of product safety, quality and reasonable price
The Contract Approach - Sellers and buyers always enter into a contractual
agreement.
Due Care Theory - the buyer and the seller are not on equal footing.
Social Costs View - the manufacturer has full responsibility for all the harms that the
product may cause the buyer
Fill in the blanks. Identify the following statements. Identify the approaches to
consumer protection. Write (/) if it is one of the approaches and (X) if it is not.

D17
Explaining the Consumer Act of the Philippines
Republic Act 7394, also known as “The Consumer Act of the Philippines” - was
approved by the Senate on April 13, 1992.

The Main Objectives of Republic Act 7394 “The Consumer Act of the Philippines”

 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; and

 Involvement of consumer representatives in the formulation of social and

economic policies.

Government agencies that implement the Consumer Act:

 Department of Trade and Industry (DTI)

 Department of Agriculture (DA)
 Department of Education (DepEd)
 Department of Health (DOH)
 Bangko Sentral ng Pilipinas (BSP)
 Local Government (Provincial, City or Municipal Treasurer)
What steps should consumers take when they have a complaint?
 Identify the problem
 Gather Documents
 Return to where the purchase was made
 Write a formal letter of complaint

When is the Consumer Act applicable?

 The Act is applicable if:

 the COMPLAINANT is a natural person;
 the SUBJECT of the violation is a consumer product or service; and

the NATURE of the complaint is regarding any of the aforementioned concern

D18

Identifying the Ethics of Advertising

Ethics means a set of moral principles which govern a person’s behavior or how the
activity is conducted. And advertising means a mode of communication between a
seller and a buyer.

Ethics in advertising means a set of well-defined principles which govern the ways of
communication taking place between the seller and the buyer. Ethics is the most
important feature of the advertising industry.

DEFINITION OF TERMS
PROTECTION - the action of protecting someone or something, or the state of being
protected.
HAZARDS - a danger or risk.
DECEPTIVE - giving an appearance or impression different from the true one;
misleading.
UNCONSCIONABLE - not right or reasonable.
PROVISION - the action of providing or supplying something for use.
CONSUMER - a person who purchases goods and services for personal use.
POLICIES - a course or principle of action adopted or proposed by a government,
party, business, or individual.

D19
Analyzing the Ethical Arguments For and Against Marketing to Children

The Advertising Board of the Philippines and its constituent membership recognize
that it is in the context of advertising Code of Ethics has been adopted and within
which the following purposes must be pursued:

 To promote truthful and informative advertising for the benefit of consumers

and the public in general.
 To upgrade the practice of advertising in order to develop public confidence
in advertised products and services and in the credibility of advertising as an
economic activity.
 To strengthen the effectiveness of the industry’s self-regulation.
 To enhance professional relationship and to promote greater cooperation
among the various sectors of the industry.
 To develop industry awareness and commitment to its social responsibilities,
including the promotion of values.
 To enhance the industry’s contribution to economic progress and in nation-
building.

D20
Explaining the Ethics of Labor Contractualization

Contractualization or labor contractualization - the replacing of regular workers with

temporary workers who receive lower wages with no or less benefits.
Temporary workers are also known as or sometimes called contractuals, trainees,
apprentices, helpers, casuals, piece raters, agency-hired, and project employees,
among others.