WebClick Tracer

E-commerce giants under scrutiny for unfair sales practices

The Department of Trade and Industry has asked two big e-commerce platforms to address mounting complaints of “deceptive, unfair, fraudulent, and unconscionable online sales practices’ from consumers.

“We received a report regarding scammers and sellers of defective, fake, and pirated products in e-commerce platforms. I have already issued a letter addressed to two big e-commerce platforms for them to remove unregistered and unlicensed online merchants. Following numerous notifications, they were given 72 hours to explain,” Trade Secretary Fred Pascual said.

Lazada and Shopee are the biggest e-commerce platforms in the country.

The DTI, however, has a partnership with Somago, a new e-commerce and logistics provider, for the digitalization of micro-, small-, and medium enterprises for its One Town One Product (OTOP) program.

“The DTI is currently undertaking appropriate measures to intensify our campaign against these fraudulent sales practices. I assure Filipino consumers that we are here to promote and protect their welfare and make sure that these sellers will be made accountable. As we promote the use of e-commerce platforms, we want to make sure that these spaces will be safe for consumers,” Pascual added.

The two big e-commerce platforms were given 72 hours to address the complaints received from consumers.

Based on Joint Administrative Order 22-01 series of 2022, online merchants and sellers are liable when it is impossible to identify the manufacturers, producer, or importer of a defective products.

E-commerce platforms also have the authority to enforce the rights of intellectual property holders and should restrict sellers who are infringing on the IP rights of others.

Milyonaryo | Latest News