ILOILO – A new provincial ordinance is penalizing scammers lurking in social media sites and online shopping platforms. These fraudsters – often baiting victims with attractive deals – face a fine of as much as P5,000 and imprisonment for one year under the Online Trade Protection Ordinance, according to the Sangguniang Panlalawigan.
The ordinance is being enforced to protect consumers and merchants engaged in internet transactions amid restrictions brought by the coronavirus disease 2019 (COVID-19) pandemic.
The new provincial ordinance lists the following acts as violations:
* use of fraudulent or misleading account wherein seller’s shipping order is invalid or cannot be viewed or processed with the intention of misleading and deceiving the buyer and general public
* sending of empty parcels to buyers despite meeting of the minds to pursue the online transaction, agreement and/or arrangement
* sending of tampered or adulterated items and sending of items that are lesser in value, quantity and/or quality different from what has been advertised or agreed upon by the seller and buyer inconsistent with the product information provided on the container, packaging or labels
* refusal on the part of the third-party-service courier to open parcel at the instant request of the buyer.
According to SP member Rolando Distura, one of the ordinance’s authors, there is a need to address online fraud to protect consumers and secure online shopping environment.
Distura said falling victim to online scamming pushed him to come up with this new legislation.
“Ako biktima man. Nagbakal ako sa Lazada sang isa ka tool and then pag-deliver sa akon lain na ang brand,” Distura previously told Panay News.
He first revealed this incident in a privilege speech entitled “Scammed Online.”
According to Distura, online sellers send the purchased items through couriers. However, couriers do not allow buyers to inspect what’s inside the parcel, he explained.
The most common scamming crooks are those that purportedly sell online goods and services. Some are already doing this even under the umbrella of big legitimate online stores like Amazon, Alibaba, Shopee, Lazada, and Zalora.
Other fake social media sellers post “PM is key,” which means buyers should send them a private message to know the product’s price and other details. This tactic, however, is a red flag and against the law.
Republic Act No. (RA) 7394 or the Consumer Act as well as RA 7581 require all sellers to display product prices explicitly. Noncompliance, according to the Department of Trade and Industry (DTI), is finable (between P5,000 to P2 million) while culprits face imprisonment of 15 years.
Consumers are urged to report to the DTI vendors, online or otherwise, who violate this law.
With the current quarantine protocols driving more people to shop online, Distura reminded the public to be wary of vendors they negotiate with on social media.
While not all online vendors are scammers, some are, Distura said. So it’s urgently crucial to stay vigilant and get to know them well before sending them money, he stressed.
Meanwhile, the Department of Justice advised consumers to be cautious of the “red flags” of online shopping fraud. These include the following:
* products are advertised at very low prices compared to other websites;
* online sellers with poor ratings and/or feedback
* online sellers who ask you to pay by money transfer service or direct to their bank account rather than through the site’s preferred payment method
* websites with no contact details such as a physical address or telephone number
* websites with limited or not information about privacy and their terms and conditions of use.
To prevent fraud online, the following must be properly identified and provided for by online sellers and traders:
* DTI and/or Securities and Exchange Commission registration
* name of the owner/proprietor of the retail establishment in case of single proprietorship, and names of directors and other officers in case of a corporation
* principal address of the retailer, seller, distributor, supplier or manufacturer, and, when applicable, of offices of agents in the Philippines
* website, email address or other electronic means of contact, telephone and fax numbers; any relevant local or foreign government registration/license numbers such as but not limited to the local government unit’s permit to operate, taxpayers identification number, when applicable
* contact details about any business association or organization membership, when applicable representative agent(s) in the Philippines for purposes of summons
The DOJ advised the public to protect their computers by installing security software (anti-virus) and update their anti-spyware.
The public is also advised to exercise caution when using public computers for online purchases. It will also greatly help to do research on the background of suppliers and sellers, including customer feedback on these suppliers./PN
