House wants anti-consumer businesses to pay dearly

Congress is standing firm on a proposal to raise by 100 times the fine on business establishments that fail to address consumer complaints.

Cagayan de Oro Rep. Rufus Rodriguez said the penalties provided for in the Consumer Act of the Philippines have to be raised to ensure that businesses would think twice before duping consumers.

“Due to the relatively low penalties provided, violators would rather pay the penalty [than] comply with the law. This has made the penal provisions of the law ineffective,” said Rodriguez.

Ten lawmakers have filed separate bills proposing to increase the penalties to between P50,000 and P1 million, and imprisonment of between three years and 7 years for each violation.

Trade Undersecretary Victor Dimagiba told members of the House committee on trade and industry that the Department of Trade and Industry was supporting the proposal to increase the penalties because they have not been adjusted since the Consumer Act was enacted 23 years ago.

However, a representative from the National Consumer Affairs Council said the proposed penalty increases were “excessive” and would be “detrimental” to business.

Surigao del Sur Rep. Philip Pichay said the increase in the minimum fine from P500 to P50,0000 was justified.

The P50,000 fine is relatively “small” compared to the huge profit margins of companies, especially multinational firms, he said.

The 10 lawmakers who filed separate bills to put more teeth into the Consumer Act were Albay Rep. Edcel Lagman, Bohol Rep. Arthur Yap, Quezon City Rep. Winston Castelo, Pampanga Rep. Gloria Macapagal-Arroyo, Camarines Sur Rep. Diosdado Arroyo, Northern Samar Rep. Harlin Abayon, Alay Buhay Rep. Wesley Gatchalian, Valenzuela Rep. Sherwin Gatchalian, Davao del Norte Rep. Anthony del Rosario and Rodriguez.