Consumers have a vital role in the economy. When they are empowered, consumers can improve economic performance by helping drive competition, productivity and business innovation.(OECD Toolkit, 2010)
In the Philippines, emphasis is made on policies and programs that promote consumer welfare and protection. Republic Act (R.A.) 7394 or the Consumer Act of the Philippines states the policy of the State to protect the interest of the consumer, promote his /her general welfare and establish standards of conduct for business and industry. Thus, Government is mandated to pursue the following objectives:
a. protection against hazards to health and safety;
b. protection against deceptive, unfair and unconscionable sales acts and practices;
c. provision of information and education to facilitate sound choice and the proper exercise of rights by the consumer;
d. provision of adequate rights and means of redress; and
e. involvement of consumer representatives in the formulation of social and economic policies.
Empowered consumers are aware of their rights and are informed of fair trade laws. Product quality and safety standards have become effective stimuli for manufacturers to improve their products and consequently enhance competition among firms. Increasing the national awareness of consumer rights, responsibilities and options for redress encourages a vibrant sector that will demand better products and services.
In 2007, an Awareness, Knowledge, Attitude and Practice Study was commissioned by the Department of Trade and Industry (DTI) to determine the public's concern for their rights and responsibilities as consumers. The study showed that half of the respondents were aware of the programs for consumers and said these were satisfactory but needed improvement. The study recommended a more creative message development, coordination and closer partnerships with LGUs and consumer-advocates in each region, strengthening the role of the consumer welfare desk/customer service in addressing consumer complaints, and integration of consumerism in the schools and communities.
In 2010, consumer complaints received by Consumer Welfare Desks both in government field offices and in business establishments reached 75,000, majority of which were about consumer products and service warranties, liabilities on products and services, and product quality and safety. While 99 percent of the complaints were eventually resolved, there is a clamor for a shorter resolution period.
Responsibility for developing and implementing consumer policy and programmes rests on the National Consumer Affairs Council composed of the DTI, DepED, DOH, DA, several consumer groups and business organizations, tasked to improve the management, coordination, and effectiveness of consumer programs.