The Department of Trade and Industry (DTI) has ordered the country’s largest electronic commerce platforms to explain recent cases of deceptive, unfair, fraudulent, and unconscionable online sales practices.
The DTI did not identify the two companies but the biggest e-commerce platforms in the country are Shopee and Lazada.
The DTI in a statement said Secretary Alfredo Pascual gave the two companies 72 hours from June 5 to explain.
It said some consumers lodged complaints against various online sellers of fake, defective, or undelivered parcels.
“ I have issued a letter addressed to two big e-commerce platforms for them to remove unregistered and unlicensed online merchants,” Pascual said.
Pascual said the DTI is undertaking appropriate measures to intensify its campaign against these fraudulent sales practices.
Deceptive, unfair, and unconscionable online sales and practices are punishable under Republic Act (RA) Nos. 7394 and 8293, and Joint Administrative Order No. 22-01, Series of 2022 or the Guidelines for Online Business Reiterating the Laws and Regulations Applicable to Online Businesses and Consumers.
In a separate statement, Pascual said has ordered tighter monitoring of vape shops in the National Capital Region to ensure the restrictions on the sale of vaporized nicotine and non-nicotine products, as established by RA No. 11900 also known as “Vaporized Nicotine and Non-Nicotine Products Regulation Act” are being implemented.while 214 were found non-compliant.
According to Pascual of the 28,584 online stores monitored by the DTI, only 175 were found to be compliant after physical validation while 28,409 were non-compliant.
To date, 26,986 online stores are undergoing physical validation.
Out of the 583 physical stores monitored, 214 were found non-compliant.
The DTI has issued a notice of violation/show-cause order to 72 firms. It has also confiscated 13,784 products from non-compliant stores with a retail value of P4 million.
The Adjudication Division of Fair Trade and Enforcement Bureau has received 74 formal charges, with 73 filed against physical stores and 1 against an online store.
