The Department of Trade and Industry (DTI) said there are more unresolved than resolved consumer complaints filed against e-commerce platforms, warning them of maximum penalty, including P300,000 fines and getting banned from operating and selling online.
DTI Undersecretary Ruth Castelo said at the Laging Handa Public Briefing, Tuesday, June 13, following the issuance of a directive by DTI Secretary Alfredo E. Pascual to the country’s two largest e-commerce platforms to explain the mounting consumer complaints on fraudulent sales perpetuated by their merchants.
While Castelo acknowledged that the two biggest e-commerce platforms have been coordinating in resolving complaints, she also stressed that “more” remained unresolved. Thus, the DTI Secretary had to issue an order to the two operators to accelerate the process.
Castelo also noted that complaints against fraudulent sales have worsened. In 2021, she said, complaints were largely on defective products, such as the item does not function as it should, lacking parts, or simply broken items.
But in the later part of 2021 up to the present, the complaints worsened to deceptive selling already. For instance, she cited the case of a shopper that ordered a cellphone but was sent a piece of stone or a box of wipes.
There are three complaint categories: defective, deceptive, and consumer service. “Now the number one complaint is deceptive,” she said.
It could be recalled that on March 24, 2022, a joint administrative order 2022-01 was issued collating all the laws for online transactions to be followed by platforms and individual merchants in these platforms.
The biggest penalty is a fine of P300,000 for both the platform and the merchant. If the merchant is not within a platform, he has to put up the penalty alone.
She further said that they are also developing a policy where perennial violators would be banned from operating an e-commerce platform or selling online.
Castelo warned e-commerce platforms and merchants that DTI has two dedicated units for online monitoring covering all social media platforms. “So, we know the numbers of sellers and platforms issued with the show cause orders,” she stressed.
This means the DTI has a clear picture of these violators and those being issued with notices, she said. But Castelo also noted that there are more than 10 e-commerce platforms operating in the country.
“We have more than 10-ecommerce platforms and many of them are compliant so I urged consumers to transact with the platforms that comply and strictly follow the laws on fair trade practices,” she said.
Meantime, Castelo said that price freeze on basic commodities has been in effect in Albay amid Mayon Volcano's increasing unrest.
Basic commodities include rice, bread, cooking oil, laundry soap, candles, drugs classified as essential by the health department, bottled water, fresh meat, and fresh, dried and canned fish.
Price freeze automatically takes effect for 60 days in an area proclaimed by the local government unit or by the national government under a state of calamity or emergency.