DTI warns buyers on sales promos

MANILA, Philippines - Consumers should be wary of freebies and giveaways given by some establishments since these could be deceptive sales promotions, the government warned yesterday.

“One of the most common complaint received by the DTI [Department of Trade and Industry] are from mall shoppers approached by sales staff informing them that they are the lucky ones selected to win a prize. These shoppers are urged to enter the store to claim the ‘supposed’ prize,” Undersecretary for Consumer Welfare Zenaida Cuison Maglaya said.

She explained that since the customers are still in awe upon winning, they think that grabbing the offer is like hitting two birds with one stone — two products for the price of one.

Even with the lack of relevant information and sufficient time to come up with a sound decision, they relent to buy usually using their credit cards since these purchases are usually unplanned.

She said problems begin when the terms of the sale are revealed: Upon receiving the receipt, the price quoted reflects that the price they paid grossly exceeded the cost of similar products in other stores.

Hence, it turns out the customer has also paid for the ’supposed’ freebie.

The Consumer Act of the Philippines (RA 7394) provides for the regulation of sales acts and practices and prohibition against deceptive sales acts or practices.

It states that: “An act or practice shall be deemed deceptive whenever the producer, manufacturer, supplier or seller, through concealment, false representation of fraudulent manipulation, induces a customer to enter into a sale or lease transactions of any consumer product or service.”

Article 50 protects consumers against sellers or suppliers that express false claims when marketing products or services especially that, nowadays, many of them would go to great lengths just to be able to sell and earn money.

Deceptive sales practices seek to exploit people’s wants, needs, and general optimism. Maglaya said informed consumers are better able to see through frauds and deceptions, whether they take the form of questionable claims in an ad, ‘high-pitch’ sales talk, offers that come in the mail or email, or schemes that sound like sure deals.