ACT-CIS Party-list Rep. Erwin Tulfo (Facebook)

What do Lazada, Shopee, and TikTok have in common?

Representatives of the three online selling applications all received a dressing down from House Deputy Majority Leader ACT-CIS Party-list Rep. Erwin Tulfo on Monday, Nov. 18 for failing to comply with certain Philippine laws.

In a Committee on Trade and Industry hearing sought by Tulfo himself, it was learned that the three platforms all practiced selling small appliances without Product Standard (PS) stickers.

Tulfo, then deputy majority leader for communications in the House of Representatives, said this was a big no-no.

“Importante ang PS stickers kasi doon mo malaman na dumaan sa pagsusuri ang produkto na binili mo sa DTI (Department of Trade and Industry) na ito ay safe gamitin,” he told the selling app representatives.

(PS stickers are important because they signify that the product you bought underwent screening from DTI and is safe to use.)

For Tulfo, items that don't have the PS sticker are simply substandard. “Mura ang mga items na ito dahil bukod sa galing China ay hindi sigurado ang quality. In short…peke.” 

(These items are cheap because, aside from originating in China, their quality isn't assured. In short, they're fake.)

The congressional investigation stemmed from a complaint filed by the Small Appliance Manufacturers of the Philippines, led by President Carol Yao, regarding the rampant sale of counterfeit and unsafe small appliances from China.

The group called for fair competition for Filipino manufacturers and the 300,000 employees they represent against the unfair online selling of foreign products by the three online platforms.

Tulfo delivered a privilege speech on the matter earlier this year. This action led to the House probe.

Iloilo 4th distirct Rep. Ferjenel Biron, committee chairman, supported the complaint of the small appliance manufacturers, and emphasized that these companies must comply with Philippine laws.

“We want to ensure that every Filipino business competes on a level playing field. Let us fight for fairness, for justice, and for the future of our industries and our people,” Biron stated.

It was also revealed during the hearing that products sold to local consumers through online platforms are not being taxed, in line with the newly enacted Republic Act (RA) No. 11967.

RA No.11967, the “Internet Transaction Act,” was signed into law by President Marcos in December 2023. 

According to Tulfo, this law is designed “to protect online consumers and merchants by establishing a regulatory framework for e-commerce players to adhere to specific rules and regulations on promoting competition and innovation, ensuring environmental sustainability, and safeguarding electronic transactions between sellers and buyers".

Tulfo says the House investigation should determine what measures the DTI is implementing to regulate the sale of imported appliances on e-commerce platforms, as well as how it monitors the compliance of online products with importation and safety standards.

The aspiring senator says legislators must also learn from online platforms like Lazada and Shopee how they verify the legitimacy of their offshore sellers and ensure that imported appliances sold on their platforms meet ICC certification or other safety and quality standards.