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LISTENERS of Konsyumer Atbp. have been asking
about their right when it comes to deceptive, unfair and
unconscionable sales acts or practices like retailers
passing off secondhand goods as brand-new by using new
packaging.
Out of
hundreds of inquiries the program continues to receive
through text, one of the most common questions fielded
is, “With companies pulling off one sales strategy to
another in order to entice consumers into buying their
products or services, do we have ample protection
against bogus offers, deceptive sales transactions and
all sorts of gimmicks that businesses do just to earn
profit?”
The
answer is yes, as it is the basic policy of the state to
promote and encourage fair, honest and equitable
relations among parties in consumer transaction, the
Department of Trade and Industry (DTI) is taking an
active role in protecting consumers against deceptive
sales acts.
According to Article 50 of Republic Act 7394, or the
Consumer Act of the Philippines, “a sales act or
practice is considered deceptive whenever the producer,
manufacturer, supplier or seller, owner or operator of a
consumer service or repair shop induces a consumer to
enter into a sales lease or transaction of any consumer
product or service through concealment, false
representation or fraudulent manipulation.”
Deceptive sales take in many forms and, without limiting
the scope of the above paragraph, here are some acts and
practices that may be considered deceptive:
• A hair
solution that promises hair growth but couldn’t. A
product or service should deliver the performance,
characteristics, uses or benefits that it claims.
• A
computer marked Pentium IV but, in fact, is only Pentium
III. A product or service must match the particular
standard, quality, grade, style or model as it is
labeled.
• A car
is presented as brand-new when it was used for limousine
service for a few days or weeks by the auto firm. A
product that is deteriorated, altered, reconditioned,
reclaimed or in secondhand state cannot be passed off as
brand-new.
• A
serviceman charges for the repair of a television which
does not need fixing. Or, an automobile mechanic charges
for car parts replacement which he did not do.
• A
company sells toothpaste and advertises that the
attached toothbrush is free, but the product is actually
priced higher so that the consumer is paying for both
the toothpaste and toothbrush. In this instance, there
exists no specific price advantage on the product being
sold.
• A
retail store claims that it has a DTI Gold Seal or
Silver Seal or Bronze Seal of Excellence, but sells fake
or substandard products. The seller cannot claim
sponsorship, approval or affiliation which he does not
have.
Whenever
a businessman takes advantage of a consumer’s physical
or mental infirmity, ignorance, illiteracy, lack of time
or of the general conditions of the environment to
induce the consumer to enter into a sales transaction
grossly inimical to his interests, an unfair or
unconscionable sales act is committed.
According to Rule III, Section 2 of the implementing
rules and regulations of the Consumer Act, in
determining whether a sales act is unfair or
unconscionable, the following circumstances should be
considered:
• The
producer, manufacturer, distributor, supplier or seller
took advantage of the consumer’s inability to reasonably
protect his interest because of his incapacity to
understand the language of an agreement;
• The
price of the product or service that the consumer bought
grossly exceeded the price at which similar products or
services were readily obtainable;
• The
consumer was unable to receive a substantial benefit
from the subject of the transaction;
• The
seller or supplier was aware that there was no
reasonable probability or payment of the obligation in
full by the consumer; and
• The
transaction that the seller or supplier induced the
consumer to enter into was excessively one-sided in
favor of the former.
Unfair
or unconscionable sales acts are punishable under the
Consumer Act of the Philippines, and it is the role of
the DTI to protect the buying public from such dishonest
trade practice.
The
imposition of administrative fine of up to P300,000,
depending on the gravity of the offense, among other
sanctions may be enforced on those who are caught and
proven guilty of committing deceptive sales practices.
In spite
of the protection being given by the government,
consumers should also be prudent and watchful when
buying in the market to avoid falling prey to unfair or
unconscionable sales acts.
Try to
avoid sales agents who would gang up on passersby. When
you are being forced to grab an offer at the moment,
tell the person that you need ample time to think it
through. Then compare the price, benefits and features
of the product being sold to you with similar ones found
in other nearby stores. In this way, you will know
where to get the best deal.
Complimentary items or “giveaways” may not be actually
free if you are asked to purchase something in order to
claim them. When you are being offered, say, a water
cooler worth P35,000 that comes with free cookware, ask
yourself if you really need the water cooler. But if it
is the cookware you want, see if you can buy that
somewhere else at a much cheaper price.
Remember
that before entering any sales contract, always ask the
seller to fully explain the terms and conditions of the
agreement then judge if these are favorable to both
parties. Also, remember never to give your credit or ATM
card to anyone to avoid unauthorized transaction.
* * *
Send your feedback and queries to konsyumeratbp@gmail.com.
For in-depth information on consumer issues, listen to
Konsyumer Atbp. every Saturday, 10:00-11:30 a.m. over
dzMM 630kHz. For consumer complaints, call the DTI
Consumer Assistance Hotline 751-3330 or Text
DTI<space>complaint and send to 2920 for Globe and Smart
subscribers. |
