Senator Aquino seeks changes in the Consumer Act

A lawmaker on Tuesday pressed for three key amendments to the Consumer Act to include provisions on e-commerce and give the trade department more teeth to implement the law.

Sen. Paolo Benigno Aquino IV, chair of the Senate committee on trade, commerce and entrepreneurship, stressed the need to update and amend the 23-year-old law to include consumer concerns related to the Internet, digital space, mobile transactions and e-commerce.

“The chapter I am asking from the Department of Trade and Industry (DTI) is a specific chapter dealing with e-commerce, dealing with digital type of products. For example, if there is a complaint, what will be the process to [resolve that complaint] in case you used your credit card but the transaction did not push through,” Aquino explained.

“There are a lot of things present in the modern society that are not covered by the Consumer Act. It is time for us to include these so it would be clear to the public what they are supposed to do in case there are complaints,” he added in a statement.

Aquino also cited the need to increase penalties, which have remained unchanged over the past two decades, particularly for those selling substandard products and those that are engaged in false advertising. The DTI, he added, has been proposing to increase penalties and include imprisonment to improve its ability to enforce the law.

At the same time, this move will also serve as a deterrent to businesses wanting to continue with their unscrupulous activities.

Trade Secretary Gregory L. Domingo earlier said fines should be raised to over P1 million from the current P300,000 to prevent erring retailers and importers from selling uncertified and substandard products, which can pose hazards to life and property.

Aquino also wanted amendments put in place so that the DTI would be better able to respond quickly and affectivley to consumer complaints.

“We’re looking at possibly giving DTI powers to be proactive in dealing with consumer complaints. If the DTI reads something on Twitter or Facebook that can be considered a valid issue, the DTI can act on it on its own instead of having to wait for the filing of a formal complaint,” Aquino explained.

On another development, Aquino lauded the government’s move to suspend the mandatory opening of balikbayan boxes, stressing that there were other ways to check whether these packages are being used to bring in illegal drugs and arms.

According to Aquino, the Bureau of Customs could always use the canine units and x-rays.

If there were enough evidence to suggest possible violations, then that should be the only time these boxes should be opened, he added.

Amid this uproar, however, Aquino is hopeful that lawmakers will look into increasing the de minimis charge, which is currently at P10.

Under existing laws, all imported goods worth at least P10 are taxable.

“We filed a bill last year about increasing the de minimis charge. Right now, anything worth above P10 can technically be taxed. So even if you just buy chocolates abroad, that can be taxed by the Bureau of Customs. It’s no longer realistic. The bill filed seeks to raise the charge to P10,000. I think it should be higher. We’re hoping that with this uproar over balikbayan boxes, we can already look at the de minimis charge,” he added.