Have you ever experienced working hard on something, but realize that it has been exploited (or is being exploited) by others? This is what local manufacturers are now experiencing in terms of online sales practices.
Approximately 300,000 employees are currently in danger of losing their jobs brought on by unjust sales which includes the pricing of unregistered appliances being sold online.
Last Monday, Erwin Tulfo––ACT-CIS party-list representative––stated that our local producers are making an appeal versus the concern particularly on the cheaply-priced and unregistered products found in the online market.
Tulfo remarks that local manufacturers are “being forced into an uneven playing field” where their products are being sold at low prices in online marketplaces like Shopee and Lazada. He further continues that this wasn’t really an issue about competition, but more so on the unfair situation and how this could significantly impact the survival of the producers.
Such suspicious activity meant that these sellers avoid taxes as well as the uncertainty of safety precautions that usually comes oriented when purchasing appliances directly from the manufacturers.
A call for help and justice
The issue was first brought up to the authorities by the Association of Small Domestic Appliances of the Philippines. Caroline Yao––CEO and President of Tough Mama Home and Kitchen Appliances––also spoke up and said that their industry which has 300,000 workers need help.
Yao affirms that the issue has been affecting them since the past years, shedding light as well on the strict background and process appliance manufacturers had to
undergo before we can find them sitting on SM appliance stores or Abenson branches. Government has a close eye on the brands, and several procedures are carefully done before and after importation, not to mention requirements needed before producers can legitimately sell their products.
Connected with this concern are subpar brands mainly those that are fake but are being advertised as coming from the original. So, there is the tendency to purchase from the seller, but when the item arrives, it turns out to be an unbranded appliance coming from China.
These are why Yao and the rest of the employees are seeking for more support from the government and those protecting the business. Yao and the manufacturers follow strict compliance, but there is loose observation when it comes to sellers, especially online sellers coming from e-commerce platforms.
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Authorities’ response and action plan
Department of Trade Industry Fair Trade Enforcement Bureau (DTI-FTEB) stated that they have regulated and found violations from 156,572 items since October 2024. This is actually higher than the same violation found in over 1,043 products from last year.
DTI-FTEB Director, Regino Mallari, says that they have been conducting surveillance and enforcement actions on home and kitchen appliances. Once violations have been confirmed, they proceed to filing administrative charges and adjudication.
Mallari continues by assuring FTEB does online monitoring by 54 personnel; 40 people are physically monitoring, and 13 are conducting the activity online. Still, Tulfo reaffirms the local manufacturer’s call for help.
Atty. Cherryl Carbonell of DTI assures in her statement that DTI has already started the drafting of the policy which requires online sellers of items that are under mandatory certification scheme (of DTI) to register with the said sector. Naturally, those who are not registered should automatically have their online selling taken down.
The attorney further elaborates that platforms will be held liable and will face fines should they refuse or ignore DTI’s notice to discontinue the online shop.
Strict monitoring of products, especially those offshore
Lawmakers were quick to point out that monitoring items delivered from seller to buyer is a tedious task alone, particularly those who come from outside the country. Hence, the Bureau of Customs was also questioned regarding their monitoring of the products in the many packages and parcels that enter the country.
House panel chairperson Representative Ferjenel Biron commented that a law should be crafted targeting such online platforms who have committed violations that were mentioned. He urges for a strong law that will penalize illegal sellers or else injustice among local businesses will continue.
This is also a call to the top e-commerce platforms such as Lazada and Shopee, where Lazada confirms that they are very strict with their sellers when it comes to the submission of requirements including BIR registration and business information before they are allowed to start.
Lawmakers also stated that one huge problem that led enlarged the issue was the lack of self-regulation by e-commerce applications. If there was a sense of self-policing the products and the required documents to ensure they are free from fake certificates and requirements, then it is possible to reduce such pressing concerns.
Finally, The National Economic Development Authority (NEDA) urges the need to review existing laws regarding the selling of products through online platforms, particularly when it comes to taxation. Meanwhile, DTI is asked to update their website so that consumers are better aware what are the officially registered products and those that should be avoided or even reported.