The Department of Trade and Industry (DTI) has issued a warning and is currently investigating the “unlawful” business practice of logistics company J & T Express, but also stressed that merchants have the first responsibility for defective products.
“We issued them a warning, it’s not enough that they said sorry, they must be held liable,” said DTI Secretary Ramon M. Lopez. “We investigate their J &T’s unlawful business practice.”
J&T Express became embroiled in a controversy after a viral video of its staff mishandling parcels made rounds on social media.
The DTI investigation is on top of President Duterte’s order to the National Bureau of Investigation and the Philippine National Police to conduct a probe on the company.
Lopez explained that if it is found that if the J & T practices are deliberate to the point that the products are destroyed from the way they handle the products, they should be liable. If this has been regularly practiced and deliberate, Lopez said the company can be closed and officials can be dealt with jail term.
Closure of establishments, however, are under the purview of the local government units which issued the Mayor’s Permit for the business to operate, he said. The DTI can also recommend to the LGU for the cancellation of the erring company’s business permit.
But Lopez equally stressed that the first responsibility of DTI is to ensure the consumers complaints on their purchased products are addressed by the seller merchants- either they repair replace or refund.
The seller then has to run after the cause of the defect and if it is caused by the mishandling of the logistics company that they hired, the seller must collect from them or file a case.
On the side of the DTI, it will be the merchants who would be the first to be held liable because they are the seller. In this case, it’s either the seller has to repair, replace or refund the defective purchased item.
The same policy will apply to other products being delivered by other last mile logistics company like Ninja Van.
So far, the DTI has received 10,000 consumer complaints already from only 1,000 previously because of the proliferation of online selling using last mile delivery operators. Most sellers, however, have settled the issue from their level with the buyer by replacing the product or giving refunds.
This is why, Lopez reiterated the need for business registration for all entrepreneurs whether big or small to protect consumers, build confidence and ensure growth of their business. Lopez asked consumers to dial the DTI hotline 1384 for their complaints.