Manufacturers seek end to legal tactics delaying trade standards
The Federation of Philippine Industries (FPI) is escalating its fight against substandard goods, petitioning the Supreme Court to strip lower courts of their power to freeze the enforcement of mandatory product standards.
In a letter-petition addressed to the high tribunal, the country’s largest industrial umbrella group argued that the current legal environment allows non-compliant traders to secure temporary restraining orders (TROs) at the trial-court level.
FPI said these injunctions effectively paralyze the oversight functions of the Department of Trade and Industry (DTI) and the Food and Drug Administration (FDA), potentially flooding the market with hazardous products.
The petition—signed by FPI President John Reinier Dizon, Chair Elizabeth Lee, and Chairman Emeritus Jesus L. Arranza—contends that product standards are not competitive tools but essential public safety regimes.
When a single local court halts enforcement, the FPI argues, it not only resolves a private commercial dispute but also suspends a national safety net designed to protect millions of consumers from inferior or dangerous goods.
The FPI is leaning on the Supreme Court’s constitutional authority to dictate procedural rules for all Philippine courts. The federation suggested the tribunal adopt a framework similar to the Rules of Procedure for Environmental Cases.
Under those rules, no court except the Supreme Court can issue a TRO against government agencies enforcing environmental laws. The group argues that because the harm from substandard products—ranging from faulty electrical wires to brittle construction steel—is often sudden and fatal, the same judicial restraint should apply to trade and health regulations.
The stakes are particularly high for the construction sector. In a nation prone to high-magnitude earthquakes and super typhoons, the FPI noted that the integrity of building materials is a matter of national security.
The federation cited a long-running legal battle over mandatory standards for flat glass, where trial-court injunctions delayed enforcement for years. During such periods of judicial suspension, regulators are powerless to stop the sale or installation of products that have not been vetted for safety.
Under the Consumer Act of the Philippines, the state is mandated to protect the public against hazards to health and safety.
However, the FPI argues this mandate is being undermined by “forum shopping,” where companies seek out favorable trial courts to neutralize months of technical research and testing conducted by regulators.
The proposed administrative resolution would mandate that only the Supreme Court holds the power to enjoin lawful DTI and FDA actions related to market surveillance, product registration, and enforcement.
The FPI leaders concluded that a clear procedural safeguard is necessary to ensure that the "Bagong Pilipinas" economic vision is not built on a foundation of substandard materials.