THE Supreme Court has upheld an order of the Department of Trade and Industry (DTI) stopping the operation of appliance seller AOWA Electronics Philippines for using fraudulent and deceptive sales scheme.

Victorio Mario A. Dimagiba, director of the DTI-Bureau of Trade Regulation and Consumer Protection, said the High Court, in a decision dated April 23, 2011, affirmed the agency’s findings that AOWA violated Articles 50 and 52 of the Consumer Act of the Philippines.

DTI, Dimagiba said, received numerous consumer complaints against AOWA for its deceptive promotional activities. A target customer is approached by AOWA representatives, in most cases inside a mall, and informs the former that he/she has won a gift or is entitled to receive giveaways. When the target customer expresses interest in the said “gift,” AOWA representatives then verbally reveal that the said gift can only be claimed upon the purchase of additional products which they claim to be of high quality. However, complainants allegedly assert that such products are substantially priced.

In the course of enticing the target customer to purchase the additional product, they are physically surrounded by AOWA’s representatives—known in the marketing field as “ganging up” on customers.

In some cases, when customers state that they are short of cash, AOWA representatives urge them to use their credit card or withdraw money from the automated teller machine.

There are even reported instances when AOWA representatives accompany a customer to his/her residence, where the latter can produce their payment for the products.

The DTI ordered AOWA to permanently cease and desist from operating its business in all stores nationwide.

The agency also cancelled AOWA’s Certificates of Business Name Registration for all outlets.

Also, the firm was ordered to pay a one-time administrative fine of P300,000  for the violation of the Consumer Act through misrepresentation and for its failure to secure any sales promotion permit from the DTI.