DAVAO CITY – The COVID-19 pandemic has encouraged people to maximize the internet in buying their needs, which resulted in some online sales promotions that do not comply with the requirements under Republic Act 7394, or the Consumer Act of the Philippines.
Based on the existing law on consumer protection, sales promotions that require consumers to purchase something from the seller or establishment must have the necessary permits according to the type of products. For food and cosmetics, a permit must be secured from the Department of Health – Food and Drug Administration (FDA). Meanwhile, the Department of Trade Industry (DTI) issues the sales promo permit for manufactured goods. Once registered, the sales promo permit number must be displayed or shared together with the mechanics, including in social media posts.
DTI-Davao City Director Rachel S. Remitio said that their office has observed that there are posts on social media, particularly on Facebook, depicting sales promotions sans sales promo permits.
“With such an observation, we immediately acted on it. Our Consumer Welfare and Trade Regulation Division went around to meet with the distributors and retailers,” Remitio said.
The information campaign was focused on the motor vehicles distributors and retailers in the city. DTI-Davao City was able to visit 13 establishments.
“They were oriented on the importance of applying for and acquiring a permit before conducting any sales promo activities. We also advised them not to advertise, post, or write in any medium, discounts, or promos that would entice the consumers to avail of their products, not unless a sales promo permit is issued to them,” Remitio explained.
The said information campaign is aimed at creating awareness among establishments the importance of sales promotion application. It was also highlighted that violating the set guidelines has corresponding penalties.
In the meantime, DTI-Davao City divulged that they have numerous sales promo applications since the pandemic started. However, not all of these applications were approved, especially those that would encourage convergence of people.
“Albeit the insistence of the applicants, we have chosen to maintain our stand to deny those that will cause mass gathering, which will put consumers at risk of contracting the virus. We have been mindful of DTI Memorandum Circular No. 20-21 s of 2020, which discourages the conduct of sales promotions that would entice a lot of people to gather,” she said.
Remitio noted, though, that DTI understands the plight of establishments, especially those that still have a huge inventory of goods in their warehouses. Nevertheless, consumer protection must not be sacrificed, thus, these industries need to device a marketing scheme to dispose of these products.
“DTI-Davao City makes sure that the sales promotion applications we approve do not compromise the health of consumers. We are here to keep a balance between the interest of the industry and the welfare of consumers. We are committed to uphold this,” the trade official said.
She added that sales promo applications are accommodated depending on the mechanics presented by the concerned establishments, vis-à-vis the minimum health protocols and other existing guidelines. DTI-Davao City has been active in doing information campaigns to ensure that both the establishments and consumers are aware of their rights and responsibilities as they live according to the new normal. ♦
Date of Release: 6 October 2020