This research investigates the liability of business entities towards consumers for defective products and the implementation of legal rules for compensating such products based on the principle of product liability in Indonesia (Consumer Protection Law No. 8 of 1999 / UUPK) and the Philippines (Consumer Act of the Philippines Republic Act No. 7394). Rapid consumption and economic growth in Southeast Asian countries like Indonesia and the Philippines have led to increased demand for various products and services. However, this growth has also given rise to issues where businesses prioritize profits over consumer rights. Laws that regulate consumer-related matters play a crucial role in safeguarding consumer interests and ensuring fair practices in the marketplace. These laws aim to protect consumers from deceptive practices, provide remedies for faulty products or services, and promote consumer welfare. However, compliance with these laws is not always ensured due to consumers' lack of awareness and businesses' ignorance of regulations. The research explores the forms of product liability that business entities have towards consumers for defective products, as well as the compensation procedures according to the respective consumer protection laws in Indonesia and the Philippines. In Indonesia, the Consumer Protection Law imposes full liability on business operators proven to have violated the law, while in the Philippines, the responsibility for compensation lies with the government based on public complaints. The compensation settlement procedures differ between the two countries, with Indonesia requiring settlement within seven days of the purchase transaction, and the Philippines requiring verification of damages caused by the business operator's fault.