When is a Sales Act Considered Deceptive or Unconscionable?

AT A GLANCE

Article 4(n) of Republic Act No. 7394 or the Consumer Act of the Philippines defines consumer as a natural person who is a purchaser, lessee, recipient or prospective purchaser, lessor or recipient of consumer products, services or credit.

The law recognizes the need to protect consumers, who often find themselves at a disadvantage in transactions involving goods and services. To ensure fairness and transparency, it safeguards their interests and general welfare against deceptive, unfair, and unconscionable sales acts and practices committed by sellers and service providers.

With this protection in mind, it is important to first understand: who is considered a consumer?

Article 4(n) of Republic Act No. 7394 or the Consumer Act of the Philippines defines consumer as a natural person who is a purchaser, lessee, recipient or prospective purchaser, lessor or recipient of consumer products, services or credit. 

The law uses the term “natural person,” which refers to an individual human being. This definition excludes juridical persons such as corporations or partnerships.

In engaging in a transaction with a seller, a consumer may sometimes be in a disadvantageous position, as the seller may unreasonably control the price of the goods or services being offered. Nevertheless, the law provides protection to consumers against deceptive, unfair, and unconscionable sales acts or practices.

When is a sales act or practice considered deceptive?

The law says: 

Article 50 of Republic Act No. 7394 states that deceptive act or practice by a seller or supplier in connection with a consumer transaction may be committed before, during, or after the transaction. An act or practice shall be deemed deceptive whenever the producer, manufacturer, supplier or seller, through concealment, false representation or fraudulent manipulation, induces a consumer to enter into a sales or lease transaction of any consumer product or service.

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