DTI pushing for higher penalties for violations of Consumer Act

MANILA, Philippines — The Department of Trade and Industry (DTI) wants higher penalties for violations of the Consumer Act to make these more relevant to the times.

In a press conference yesterday, Trade Secretary Alfredo Pascual said the fines being imposed under the Consumer Act and other related laws need to be updated.

“There are many fines that need to be updated because these fines are based on laws that were crafted many years ago,” he said.

Under the Consumer Act approved in 1992, administrative fines amounting to P500 to P300,000 will be imposed depending on the gravity of the offense.

It also provides that an additional fine of not more than P1,000 will be imposed each day of continuing violation.

DTI Fair Trade Enforcement Bureau director Fhillip Sawali said in the same event that the agency would want the fines to be similar to those imposed under the Vape Law which was enacted in 2022 with penalties amounting to P100,000 and reaching above P1 million depending on the infraction.

“That is what we want to follow, that the Consumer Act violation should also be up-to-date,” he said.

As imposing higher penalties would require amendments to the law, Pascual said the DTI would be speaking with legislators and appropriate authorities.

Last April, DTI established Task Force Kalasag as part of efforts to better fulfill its mandate of protecting consumers.

Since its launch, the task force has seized 311,206 units of uncertified and non-compliant products and vape units valued at P89.7 million.

The total amount of seized products exceeds the P30 million budget of the task force.

Of the total amount of products confiscated by the task force, P61.87 million are essential technical products or those subject to technical regulations, while P27.88 million are vape products.

Three separate raid operations conducted by the task force across Valenzuela City, Bulacan and Cavite brought about P25.4 million worth of uncertified home appliances and consumer goods.

The seized products were in violation of Republic Act (RA) 4109 or the Products Standards Law and Department Administrative Order No 02: 2007, as they did not bear the required Philippine Standard Marks and Import Commodity Clearance Stickers to show these are compliant to product standards.

These products were also found to be in violation of RA 7394 or the Consumer Act of the Philippines, specifically concerning deceptive sales practices.

DTI, in coordination with local government units and the National Bureau of Investigation conducted raid operations in response to consumer complaints and online monitoring.

“Our enforcement operations are not meant to hinder business, but to ensure a fair and safe marketplace for both consumers and retailers. I urge all retailers to make a conscious choice to prioritize high-quality and certified products. Do not fall victim to the allure of cheap and uncertified goods, as these often come with hidden costs and risks,” Pascual said.

He urged consumers to support retailers who offer certified products to create a market that prioritizes safety and quality.