Handbook on Consumer Assistance and Protection

I'm currently writing my initial inputs for the Handbook on Consumer Assistance and Protection which will be used by members of the Barangay Consumer Advocacy Assistance and Protection Team (C.A.P.T.)

I. Sample cases of scams

A year ago, unscrupulous persons posted themselves as representatives of "Masumi Corporation and Sakaki Takiyama" with supposed address at No. 188 Sergio Osmena Street, Cebu City.

Despite the various advisories issued by the DTI, there were still consumers who were fooled by these swindlers. These swindlers promised bigger cash prizes and claimed that they were provided by SMART and GLOBE with cellphone numbers of their subscribers.

These cellphone callers then informed their victims that their cellphone number won during a raffle activity conducted under the supervision of a DTI representative.

To win the confidence of their would be victims, the caller will give them the following information to make the sales promo seem legitimate:- company name which is foreign sounding;- a sales promo permit number;- a company's representative of which they can only be contacted through their cellphones;- postal address.

Another ploy used by unscrupulous persons is to call the victim and tell the victim that his mobile number won as a homepartner winner in the Lotus Ballpen Philippines' "Magkapera't Magkakotse Raffle Promo" and that he won a Toyota Corolla Altis and P20,000.00.

These callers then identify themselves using fictitious names. One caller even mentioned a DTI-NCR permit number 772813-5 to make the promo appear credible.

The victims are then asked to give the callers the numbers of their two (2) prepaid cards worth P300.00 and for the victims to shoulder the storage cost of the Toyota Altis at P16,000.00 per day by depositing the amount at a certain account in a specified bank.

Another sales promo scam used by swindlers is tell the victims that their names, which appear in the PLDT directory, were chosen as winners of a raffle draw.

The callers will then cite the name of the Philippine Racing Commission, PAGCOR and even well known companies as promo sponsors to appear credible.

These callers ask their victims to deposit as much as P20,000 by 12:00 noon on that day to a certain account so as not to forfeit their prize. These callers will say that this amount is needed to defray cost involved in the transport of the vehicles won.

If their victims are not convinced the first time, these callers will again call and persuade the victims to change their minds.

Still another favorite ploy of swindlers is to call people and tell them their mobile phone numbers were picked as the winning numbers in a sales promotion allegedly approved by DTI or DOH-BFAD.

Other swindlers inform the consumer through text messages. Among the schemes employed to deceive the public is persuading the unsuspecting consumer to purchase eight cell cards from a certain cellphone company and tell him to text the pin numbers of these cell cards in order for him to avail of the first prize amounting to P 2 million. These swindlers sometimes drop names of prominent individuals just to convince the victim to join.

Another bogus scheme is for swindlers to use an existing sales promo such as the well known GAME K-N-B. They will tell the victim that he has just won in the home partner raffle draw last July 26, 2002 amounting to P3 million pesos.

The most alarming modus operandi employed by another swindler is introducing himself as an employee of DTI, to trick the victim into joining. Afterwhich, the swindler tells the victim that he has won P750,000 to P1 million in a PAGCOR promotion.

In all these promo scams, the name of a contact is given and his cellphone number. The person contacted will then give the victim instructions such as depositing a substantial amount in a certain bank account or giving the pin numbers of cellcards in exchange for of the prizes.

The DTI7 has observed that the swindlers posing as sponsors of fake promos are now offering cash prizes instead of the expensive cars which they used to offer.

II. Definition of the Problem

Q. When is a sales act considered deceptive?

A. 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 or lease transaction of any consumer product or service through concealment, false representation or fraudulent manipulation.


Q. What is unfair or unconscionable sales act?

A. An act of the producer, manufacturer, seller or supplier of a consumer product, or the owner or operator of a consumer service or repair firm of inducing, or enticing a consumer to enter into a sales or lease transaction of a consumer product or to avail of its services grossly inimical to his interests or grossly one-sided in favor of the producer, manufacturer, distributor, supplier or seller, owner or operator, by taking advantage of the consumer’s physical or mental infirmity, ignorance, illiteracy, lack of time or the general conditions of the environment or surroundings.

Q. Why is the “No Return, No Exchange” notice considered deceptive?

A. The “No Return, No Exchange” notice is considered deceptive because it creates a misconception on the part of the consumers that they do not have the right to return shoddy or defective goods or demand for remedies in case of defective or imperfect service.

On the contrary, consumers may return or exchange goods or avail of other remedies in case of hidden faults or defects, or any charge not known to buyer. By provision of law, sellers are obliged to honor their implied warranties and grant corresponding remedies.to consumers.

Q: What is a home solicitation sale?

A: Home solicitation sale means consumer sales or leases which are personally solicited by any person, organization through person-to-person contact at the buyer’s residence, place of work, at the seller’s transient quarters, or any appointed place, except the seller or lessor’s usual place of business.

IV. Common practice or modus operadi

DTI-7 regional director Asteria Caberte points out some of the present modus operandi of unscrupulous traders that consumers should be wary of:

Instant Raffle Draw Contest
"Don't be deceived if somebody approaches you either in the mall or in any business establishment telling you of a free raffle", Caberte warns. "Usually the pseudo-raffle draw is the scratch and win type.

If you take their bait, you will soon find out that you will be made to shell out a substantial amount of money for high end products as a pre-condition for the release of a promised prize."

Caberte describes how three or four sales people will gather around customers to overwhelm and subtly pressure them to buy. "They even go to the extent of filling out the forms for customers, so these customers will give cash or use their credit card", she said.

Raffle Draws Through Text Messages and Cellphone Calls
If you receive a call or a text message congratulating you for winning either one million pesos or a brand new luxurious car, think again. You might fall prey to this trap, Caberte relates, "after telling you of the supposed "good news", they will tell you to deposit an amount to a certain bank account before 12:00 noon on that same day, otherwise, another winner will be drawn since you have not met the deadline."

Before, it used to be only P6,000. Now it has reached P18,000 or even P20,000, Caberte added. "A day after depositing the amount you cannot reach the person who called you over the cellphone and worse, the account where you deposited your money has already closed.

Door to Door Selling
Unscrupulous sales representatives conduct a door to door selling activity telling an unscrupulous housewife that the wares they are selling are very much lower and better than those in the market.

Caberte says that buying such products from them is unwise. "If it turns out that these products are defective, consumers have no way of returning their products, especially if they forget to ask the sales representatives' business name, their business address or even their identities."

Caberte reiterates to the public to check the validity of all sales promotions they intend to join. "Check if sales promo is indeed genuine before parting with your hard earned money", she says. "Try to get as much information about it such as sales promo permit number, the name of the sponsor, the coverage and most of all the mechanics of the promo. Only then can you detect if it's a scam or a legitimate sales promotion.

If it is a door to door selling activity, ask the sales representative for a home solicitation sale permit. Just like the sales promotions in business establishments, DTI also regulates door to door selling through home solicitation sale permit, Caberte says.

Should consumer fall prey to these unscrupulous sellers, they are advised to file a fomal written complaint with any of the provincial offices of the DTI. Consumer Arbitration Officers will attend to all consumer complaints.

V. Role of the Agency
Monitoring, preventing and enforcing the laws on sales, home solicitation and warranties are handled by the Trade and Industry Regulatory Division of the Department of trade and Industry.(TIRD).

The TIRD performs a number of functions to ensure that consumer's welfare is promoted and their rights protected.

It also provides services to businessmen to help them sustain the viability of their ventures. Its specific concerns in these areas include:
· registration of business name
· issuance of licenses/permits
· accreditation of service and repair enterprises
· processing of patents and trademarks
· technical assistance/consultancy on product standards and other quality-related technical information
· legal assistance
· consumer information and protection
· resolution of consumer complaints and grievances
· enforcement of fair trade laws
· price and supply monitoring and etc.

The National Consumer affairs Council (NCAC) is the body created by the Consumer Act to improve the management, coordination, and effectiveness of consumer programs and policies of the different government agencies and private organizations.

The council is composed of representatives from the following government and non-government agencies:- Department of Trade and Industry- Department of Education- Department of Health- Department of Agriculture- Consumer Organizations of nationwide base- Business/Industry sector


VI. Quick Tips
In order not to be victims of promo scams, the DTI offers all consumers some tips to determine a fake or genuine sales promotion:

1. Consumers who won in a sales promotion amounting to P500.00 or more are always notified in writing by the sponsor with the instruction of what documents to bring in claiming their prizes. Notices through text messages or through phone calls are not enough.

2. Consumers are advised to ask for the sales promo permit number as well as the DTI office or DOH-BFAD office which approved the promo. Better still inquire the name of the DTI or BFAD representative who supervised the draw.

3. Check the promo period as well as the areas covered by the promotion.

4. Always ask the name of the contact person of the sponsor, his address and his landline. All sponsors provide their landline number when applying for a promo.

5. Try to know the mechanics of the promo and how you won.
Under the Consumer Act, a winner of a prize amounting to P500.00 or more shall be notified in writing or by registered mail of by any other form of communication wherein proof of notice or service can be verified.

So if somebody calls you through the cellphone, ask why you were not provided a written notice. Verify also from the DTI-Regional Office or the DTI Provincial offices if they have approved of such a promo.

Sales promotions for food, beverages, drinks, medicines and cigarettes are approved by the Bureau of Food and Drugs – Department of Health. You may also inquire from their office.


Don’t easily part with your hard-earned money. Always check if the sales promo is genuine or not. Try to get as much information about it, the sales promo permit number, the name of the sponsor, the coverage and most of all the mechanics of the promo.

Only then can you detect if it’s a scam or a legitimate sales promotion. Remember " that a well informed and vigilant consumer is the best-protected consumer."

VII. Filing a Complaint

Q. What can a consumer do if he has a complaint?

A. Identify the problem. Identify the problem and what you believe would be a fair settlement. Do you want your money back (Refund)? Would you like the product repaired (Repair)? Will exchange do (Replace)?

Gather documents. Gather documents regarding your complaint. Sales receipt, repair orders, warranties, cancelled checks, or contract will substantiate the complaint and help the company solve your problem immediately.Go back tow here you made the purchase. Contact the person who sold you the item or performed the service. Calmly and accurately explain the problem and what action you would like taken. If that person is not helpful, ask for the supervisor or the manager and repeat your complaint. Many consumer problems are resolved at this level.

Write a formal letter of complaint. If you are not satisfied with the company’s response, write a formal letter of complaint to the consumer protection agency concerned. State your name and address; the name and address of the establishment you are complaining; and the circumstances regarding the complaint including names, dates, places, etc. Also, enclose supporting documents such as official receipts, deed of sale, and the likes, and be prepared to make an appearance when called, especially during the mediation conference.

Q: What is the prescriptive period for filing consumer complaints?

A: Within two years from the consumer transaction was consummated or the deceptive or unfair and unconscionable act or practice was committed, and in cases of hidden defects, from discovery thereof.

Q: Where can a consumer complaint be filed?

A: The administrative complaint shall be filed in duplicate with the Provincial Office of the Department having jurisdiction over the subject of the complaint. In areas where there are no Provincial Offices, the complaint shall be filed in eth Regional Office.

In cases where the complainant and respondent are situated in different provinces, the complainant has the option to choose the place where to file the complaint.

Q. What are the available remedies available to consumers?

A. For Administrative Proceedings:- Replacement or repair of product or services- Refund of payment made- Restitution or rescission of contarct- Reimbursement to complainant fo amount spent in pursuing the complaint.

For Civil/Criminal Action:
Civil action- Award of damages- Replacement of repair of product or services- Refund of payment made- Restitution or rescission of contract- Reimbursement to complainant of amount spent in pursuing the complaint

Criminal Action- Imprisonment or payment of fine or both, at the discretion of the courtQ. What are the consumer responsibilities:

A. Critical Awareness. The responsibility to be more alert and questioning about the use, price and quality of goods and services.

Action. The responsibility to assert ourselves and act to ensure that we get a fair deal. As long as we remain passive consumers, we will continue to be exploited.

Social concern. The responsibility to be aware of the impact of our consumption on other citizens, especially disadvantaged or powerless groups, whether in eth local, national, or international community.

Solidarity. The responsibility to organize together as consumers to develop the strength and influence to promote and protect our interest.

Environmental Awareness. The responsibility to understand the environmental consequences of our consumption. We should recognize our individual and social responsibility to conserve natural resources and protect the earth for future generations.

VIII. Contact details
Consumer Complaints: btrcp@dti.gov.ph
DTI (head Office) Hotline: (02) 751-3330

DTI Central Visayas Offices:

DTI Cebu Provincial Office
Nelia Navarro, Provincial Director
(032) 412-1863
Email: nelia@dticebu.net.ph / dticebu@dticebu.net.ph

DTI-Bohol Provincial Office
Ma. Elena Arbon, Provincial Director
(038) 422-1764
Email: dtibohol@globelines.com.ph / dtibohol@yahoo.com

DTI-Negros Oriental Provincial Office
Javier Fortunato, Jr., Provincial Director
(035) 422-1764
Email: dtinegor@glinesnx.com.ph

DTI-Siquijor Provicnial Office
Nimfa Virtucio, Provincial Director
(035) 480-9065
Email: dtisiquijor@yahoo.com