DTI to boost protection against ‘pyramiding’

THE Department of Trade and Industry (DTI) will conduct a public consultation in Cebu on pyramid sales schemes to address concerns on this selling strategy.

In a press release, the DTI said the public consultation, to be led by the agency’s Consumer Protection Group (CPG), is free of charge.

The public forum, which will happen on Oct. 15, 2019 at Hotel Elizabeth in Cebu City, is expected to engage players in direct selling, multi-level marketing, networking companies, government agencies, consumer groups and other relevant stakeholders.

“Business-to-consumer engagement has been evolving drastically and the DTI is very keen in providing the most optimum level of consumer protection regardless of the scheme used by the business,” Trade Secretary Ramon Lopez said.

The DTI is drafting a department administrative order (DAO) on pyramiding to provide a stronger level of protection to consumers against unscrupulous practices in the industry.

The draft DAO covers the revised rules and regulations implementing Article 53 of the Consumer Act of the Philippines relative to the prohibition of chain distribution plans or pyramid sale schemes in the sale of consumer products.

The agency will conduct a mandatory recognition process to any person or entity who intends to establish, operate or advertise a legitimate direct selling, multi-level marketing or networking company as it is a major inclusion in the draft DAO.

“This recognition will be required prior to the actual operation of the company. The DTI sees this as a mechanism for consumers to easily identify legitimate business marketing schemes,” the DTI said in a statement.

CPG Undersecretary Ruth Castelo said this is in response to the current times in order to beef up consumer protection.

“The DTI recognizes the importance of updating the current rules and regulations governing direct selling, multi-level marketing, or networking companies for enhanced protection of the rights and welfare of the consumers. We have been working closely with relevant government agencies and private organizations to ensure that the new DAO is responsive to the current and future times,” Castelo said. (JOB)


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