DTI to monitor 1st Quadrant, JC Martin for three months

The Department of Trade and Industry (DTI) is placing First Quadrant Philippines Inc. (FQPI) and JC Martin Corp. under a three-month monitoring after the DTI failed to conclusively determine if the two multi-level marketing firms are engaged in pyramiding.

In a press conference, Assistant Trade Secretary J. Norman R. Hocson disclosed that following a mediation agreement, FQPI and JC Martin agreed to accept refinements recommended by the DTI with regard to encouraging earnings through recruitment.

FQPI and JC Martin, Hocson said, committed to remove any references to the encouragement of earning through recruitment from any pertinent company materials such as catalogues, brochures or sales kits and from business opportunity meetings conducted by their members.

FQPI and JC Martin, Hocson said, voluntarily offered to post a P150,000 performance bond each that would be forfeited in favor of the government if they commit any violation during the three month monitoring period.

The P150,000 would be refunded to FQPI and JC Martin if they comply with the DTI’s recommendation and do not commit any violation within the three-month monitoring period.

Hocson said that following the mediation agreement with FQPI and JC Martin, the DTI would now shift its attention to the investigation of 36 other firms suspected of engaging in pyramiding activities.

The investigation of FQPI and JC Martin, Hocson said, should serve as a warning to other MLM firms who act "self-righteously."

The DTI created the Anti-Pyramiding Task Force (APTF) in April 2004 to closely monitor and investigate companies suspected of engaging in pyramiding.

After finding sufficient basis, the APTF formally charged FQPI for reported violation of Article 53 of the Consumer Act which prohibits the use of chain distribution plans or pyramid sales schemes in the sale of consumer products.

One of the original incorporators of FQPI is Julie Rose Tactacan Defensor who is the wife of Environment and Natural Resources Secretary Mike Defensor.