Friday, October 23, 2009

When Businessmen Follow The Laws Consumer Protection Is Needless



by ERNESTO T. SOLIDUM


Ms. Deana C. Ruiz, Trade and Development Specialist, and Engr. Diosdado P. Cadena, Jr., provincial director, both of DTI. They were the guest resource persons in the Consumer Month celebration in the Kapehan sa Aklan on October 17.


October is declared National Consumer month. Hence, the presence of the Department of Trade and Industry (DTI) guests to the weekly Kapehan forum on October 17, 2009 was warmly welcomed. Engr. Diosdado P. Cadena, Jr., Prov’l. Director, DTI and Ms. Deana C. Ruiz, Trade and Development Specialist, DTI discussed the topic on "Consumer Protection". Cons-picuously absent was DOH representative which is the lead agency in the 2009 celebration. The consumers’ organization was not represented too.

Atty. Ronquillo C. Tolentino said, "RA 7394 or the Consumer Act of the Philippines declares the basic policy of the State to protect the interests of the consumers, promote their general welfare and establish standards of conduct for business and industry.

Towards this end, the State shall implement measures to achieve the following objectives: a) protection against hazards to health and safety, b) protection against deceptive, unfair and unconscionable sales acts and practices, c) provision of information and education to facilitate choices and the proper exercise of rights by the consumers, d) provision of adequate rights and measures of redress, and e) involvement of consumer representatives in the formulation of social and economic policies.

Consumer protection law is considered an area of public law that regulates private law relationships between individual consumer and the business that sells those goods and services. The law covers a wide range of topics such as product liability, privacy rights, unfair business practices, fraud, mis-representation and other consumer/business interactions. Enforcement of consumer protection laws are prominent in the European Union, Republic of China (Taiwan), United Kingdom, USA and Commonwealth countries (Australia and New Zealand).

Engr. Cadena cited the scope of consumer protection under RA 7394 implemented by six (6) government agencies namely: DOH (medical drugs), DA (agricultural products), DTI (prime consumer products), DepEd, Bangko Sentral Ng Pilipinas and LGU’s. Private sector involvement is Consumer Welfare Organization formerly headed by Mr. Rufino Barrios and now Engr. Pablo Beltran, Jr.

In case the Philippines is declared in a National State of Calamity, the price control law under RA 7394 will be in effect. Covered items are rice, canned goods, processed milk, coffee, detergent bars, candles, bread (pan de sal/loaf bread) and salt. The reference point is the prevailing price immediately before proclamation.

DTI has deputized LGU Market Admi-nistrators to implement price ceilings on consumer products and empowered to penalize or impose sanctions against violators. Engr. Cadena however pointed out price control has inherent negative impact on product availability and affordability over the long term. Regulatory measures as price control that are imposed even during normal times tend to favor hoarding/black marketing and dampen profits.

Apart from price control, DTI has two strategies in realizing its mandate through product design and marketing. In the forefront is the manufacture of native bayong or utility bag from buri palm and engineered bamboo to replace lumber. Marketing promotion and sales among small and medium scale industries are done through provincial and national trade fairs. One town, one product (OTOP) showcase Aklan’s pride – embroidered piƱa cloth and other natural fibers, pottery and bricks, vermicast and bariw mats/hats.

Issues and concern are the glove in the hand approach or helplessness of DTI in price control of prime commodities immediately after typhoon Frank hit Aklan on June 21, 2008. Despite widespread violation of price ceilings, nobody was ever charged or fined. Engr. Cadena clarified the issue by stating that prevailing situation during those times was extremely critical that all supply routes of consumer goods to Aklan were cut off for three weeks. Imposing legal sanctions against certain business establishments would force them to withhold supply and consequently open floodgate of black market trading.

Proliferation of sub-standard and hazardous products involving local and imported ones remain unchecked. DTI maintains that all manufactured products must bear Seal of Quality or warranty in order that buyers may claim either repair of goods, or replacement of product/parts and refund of payment. In other words, avoid fraudulent and substandard products.

High cost of fertilizers and lack of liberal credit have contributed largely to lower production of rice, corn, and vegetables. Although fertilizer is included in consumer watch list, DTI has never lifted a finger in regulating skyhigh prices. Last year, urea went up to P1,500 per bag. Among the production inputs, fertilizer contributes 20 per cent to total crop production, a great factor in farm production.

Readiness of NFA to import rice up to two million tons next year in the face of destructive typhoons without due consideration on the consequences to our farmers and families is skewed compared to the package of production incentives granted by governments of Vietnam, Thailand and India to their farmers.

Our policymakers are so bias for consumers forgetting the 65 percent Filipino farmers. Rice importation is butchering sweetly the Filipino farmers. When the world is reeling with the effects of climate change and ethnic violence, how can our ever increasing demand be met? Shall the Filipinos continuously import and widen the foreign trade imbalance? Rice inadequacy has taken different economic and political overtones. Both have disastrous consequences.

Definitely, consumers protection in the country started 17 years ago. The law was passed in 1992, yet its impact is insignificant in terms of savings and value. Continuing education on consumer awareness must be undertaken by public and private sectors in order to uphold quality standards and price ceiling, and hasten progress. Consumer protection is not needed if businessman follows the laws, rules, regulations religiously, if we just follow the "golden rule". /MP

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