DTI: Complaints involving online transactions surge during ECQ

Complaints received by the Department of Trade and Industry (DTI) from consumers involving business transactions made online have dramatically increased during the enhanced community quarantine periods (ECQ).

In a virtual briefing with reporters on Thursday, Trade Undersecretary Ruth Castelo revealed that the DTI’s Fair Trade Enforcement Bureau (FTEB) saw a surge in online complaints in the first five months of 2020 compared in the same period last year.

“From January to May, ang laki ng tinaas ng consumer complaints that were recieved FTEB,” Castelo said.

Data shared by the Trade official showed total online complaints received increased to 9,044 in the January to May period from 2,457 last year.

Online buying and selling boomed during the lockdown period from March 17 to May 31, as most of the population were forced to stay at home and several establishments including malls and restaurants, as well as mass transportation, were not allowed to operate.

DTI data also showed that for April to May — the peak of the ECQ — total online complaints reached 8,059 from only 985 from January to March.

Bulk of the complaints are price-related such as overpricing, which increased to 6,992 from April to May from only 51 in January to March.

Complaints about defective products also surged to 668 from 512, while concerns about poor customer service rose to 241 from 124.

Meanwhile, complaints against two of the most popular online platforms such as Lazada and Shopee decreased by 40.99%. However, complaints involving transactions done on Facebook and other online platforms rose 62.16%.

Online sellers registry

Castelo said the DTI is planning to come up with a registry of all online sellers or businesses for consumer protection purposes.

Since there is no law yet mandating the creation of such a registry, she said the Trade department will coordinate with the Bureau of Internal Revenue (BIR) to have its list of those online businesses who will register with the taxman.

The BIR released Revenue Memorandum Circular No. 60-2020 requiring “all persons doing business and earning income in any manner or form, specifically those who are into digital transactions through the use of any electronic platforms and media, and other digital means” to register their businesses on or before July 31. 

The taxman, likewise, encouraged online sellers or those whose businesses are done through electronic or digital means to “voluntarily declare their past transactions.”

Castelo underscored the importance of having a registry of online businesses or sellers since the DTI received a lot of complaints from buyers. The registry will allow law enforcers to trace the online sellers, who were often anonymous and do not reveal their business addresses.

“When they bring the complaints to us [usually] hindi nila alam physical address, how to contact them other than the page, hindi alam ang full name ng [seller],” she said.

“When we get the list [from the BIR], mate-trace natin kung saan sila hahanapin in case may concerns from the consumer,” she added.

A registry is also expected to improve consumer confidence.

“This can easily build consumer confidence kasi makakampante ang consumers na safe ang transactions online... Kasi alam nila na may isang agency that handles a registry of online sellers,” Castelo said. --KBK, GMA News