What is RA 7394?

The Consumer Act of the Philippines, passed in April 1992, is a law that protects the rights of all consumers in the country.
It ensures that products and services sold in the market are safe, honest, fair, and of good quality.

• Whether you’re buying groceries, gadgets, or even car parts, this law is for you.

• It also covers repair shops, automotive services, and mechanics who offer vehicle-related work.

What are the Main Goals of the Consumer Act?

1. Protect consumers against dishonest sellers, unsafe products, and poor services.

2. Promote truthful advertising.

3. Give consumers the right to refund, replacement, or repair.

4. Create fair trade and promote quality standards.

5. Ensure that consumers are informed and educated about what they are buying.

How It Relates to the Automotive Industry

1. Right to Safe and Quality Automotive Products

• Car parts, tires, batteries, engine oils, lights, and accessories must meet safety standards.

• Selling substandard or fake spare parts is illegal.

• Buyers can demand a refund or replacement if parts are defective.

Example: If you buy brake pads that don’t work properly, the seller must replace or refund them.

2. Fair and Honest Automotive Services

1. Auto repair shops must provide:

• • Clear service estimates

  • Proper receipts

  • Qualified technicians

  • Correct repairs

2. If the shop does a bad or wrong repair, the consumer can ask for it to be fixed at no extra charge.

Example: If a mechanic charges you for replacing a part but didn’t actually replace it, you have the right to complain and ask for compensation.

3. Truth in Advertising

• Any car-related product or service (like tires, car polish, car insurance, or repairs) must be advertised truthfully.

• Sellers cannot lie about features, fuel-saving claims, or durability.

Example: If a product is advertised as “made in Japan” but turns out to be fake or from another country, the seller can be penalized.

4. Labeling and Packaging

Car accessories and spare parts sold in stores or online must have clear labels:

• • Country of origin

  • Instructions for use

  • Manufacturer or importer

  • Expiry date (if applicable)

Example: Engine oil or coolant must state its type, usage instructions, and safety warnings.

5. Right to Information and Proper Receipts

1. You have the right to know exactly:

• • What you're paying for

  • What repairs were done

  • How much each item costs

2. All shops must issue official receipts showing full details of the service or product.

Example: If a car wash adds extra charges not mentioned before, you can dispute it.

Government Agencies Involved in RA 7394 

Agency Role

DTI (Department of Trade and Industry) Main agency that enforces the Consumer Act. Handles complaints and regulates shops and products.

DOH (Department of Health) Regulates products related to health (like chemicals used in auto detailing or air fresheners).

DA (Department of Agriculture) Handles agricultural machinery and motors, if automotive-related.

Local Government Units (LGUs) Monitor and inspect businesses in cities/municipalities (like vulcanizing shops or car repair shops).

Common Violations in Automotive Services (Under RA 7394)

1. Selling fake or unsafe parts (e.g., counterfeit brake pads or low-quality engine oil).

2. Overpricing services without clear basis.

3. Refusing to issue receipts.

4. False claims in advertising (“fuel saver”, “Japanese parts” when it’s not).

5. Doing unnecessary repairs or switching original car parts with lower-quality replacements without informing the customer.

What Can a Consumer Do?

• Report to DTI Consumer Protection Group via hotline or website.

• Visit the nearest Negosyo Center or DTI Regional Office.

• File a written complaint with receipts and evidence.

• Seek help from consumer groups and even local barangays.

Summary

• RA 7394 empowers you as a car owner, buyer, or service user.

• It ensures automotive parts and services are safe, fair, and properly priced.

• It protects you from dishonest sellers, scams, and poor-quality repairs.

• It applies to car owners, mechanics, shop owners, and parts suppliers.