Trade and Industry Secretary Ramon M. Lopez has ordered the setting up of the general guidelines for online consumer complaints resolution system to address mounting complaints by consumers against traders on various issues ranging from trade malpractices, substandard, and hazardous products.
Lopez signed Department Administrative Order No. 20-05 to establish the Philippine Online Dispute Resolution System (PODRS), which shall serve as the web-based consumer complaints portal of the country eventually. It will automate the entire consumer complaints-handling process of the government by interlinking all the member agencies of the Consumer Network (ConsumerNet), which refers to the network of government agencies tasked by their respective mandate to deliver essential services to the public in general and the general consumers.
Lopez, who signed the DAO on Sept. 15, 2020, said the system is “an integrated national online system by which all consumer complaints are received, docketed, transmitted, and resolved, providing a network facility for the tracking, ageing and status updating of cases, and prescribing standards and limits of disclosure of data to maintain integrity and credibility of the system.”
The system will be undertaken in three phases. First phase is the development and operationalization of consumer complaints filing, tracking, ageing, reports generation, and status updating to be put by the DTI. Phase 2 is the development of virtual mediation conference and possible online resolution of complaints and Phase 3 is linkage with the ASEAN ODR system for effective resolution of cross-border consumer complaints.
The system also seeks to ensure the confidentiality, integrity and availability of the personal information stored through the PODRS and strict compliance with the Data Privacy Act of 2012.
The DTI noted of 4,080 percent increase in business name registration for online enterprises for the period March 16 to August this year. Along with the increase in online businesses was also an equally significant rise in the number of consumer complaint received pertaining to online transactions.
From a total of 2,457 complaints in 2019, Lopez said the number of consumer complaints related to online transactions jumped to 12,630 as of 31 August of this year.
“The quadruple increase of 414.12 percent is majorly attributed to the surge of online transactions due to the COVID-19 pandemic,” said Lopez.
The highest number of complaints of 8,045 were during the months of April and May when the strictest level of Community Quarantine was in effect in major areas of the country. Due to limited movement of people, consumers heavily relied on online shopping for their basic and essential needs.
Consumer Group Laban Konsyumer Inc. (LKI), welcomed the DTI order calling it a well-meaning move to protect consumer from trade malpractices and from substandard or hazardous products.
But LKI President Atty. Vic Dimagiba noted that the infrastructure and hardware are yet to be installed and there is no timeframe yet for implementation.
“There must be a strict timeframe for this project, because it cannot be left as simply or merely a concept, because consumers need this kind of protection especially during these trying and challenging times of pandemic, lockdown and extended periods of quarantine,” he said.
According to Dimagiba, more and more consumers are becoming more aware of their rights by which to address their grievances has resulted in the considerable increase in the number of consumer complaints, thus, there is a need to provide a redress mechanism that should be readily available to the consumers at any time and any place.
“Again, I would like to reiterate that the intention is good, but the execution and implementation may be behind and lacking. The key words here are readily available, and the redress mechanism must be accessible, easy-to-use and real-time,” he said.
The group said “This Philippine Online Dispute Resolution System should be adopted for the purpose of developing and establishing an integrated national online system by which all consumer complaints are received, docketed, transmitted, and resolved providing a network facility for the tracking, ageing, and status updating of cases and prescribing standards and limits of disclosure of data to maintain integrity and credibility of the system. There must be checks and balances when executing and implementing such a system so we as consumers and consumer groups can act as watchdogs as this is being rolled out, to ensure that the process is achieved effectively, efficiently, successfully and on time, as soon as possible.”