DTI has issued a warning to online platforms like Lazada and Shopee that they are equally liable for scams especially if vendors are found guilty of selling deceptive and defective products.

This was a stern warning issued by DTI Consumer Protection Group USec. Ruth Castelo, where she explained that Lazada, Shopee, and other online platforms can be fined up to Php 300,000 if the scams made by their vendors are proven to be true.

“If the retailer is using a platform, the retailer together with the platform will be penalized. The biggest penalty that we impose is P300,000 if it’s proven that there was really a violation. So, it’s up to them to decide who will be the one to pay, but they really have to pay the penalty,” Castelo said during a Laging Handa briefing last Tuesday (June 13).

Castelo explained that there was a rise in complaints in 2020 and early 2021 during the height of the pandemic, where the majority of the complaints involved defective products. For the latter part of 2021, the most common complaint filed to DTI was about deceptive products.

Referring to the latter, Castelo said that complaints about deceptive products involve those who purchased mobile phones and gadgets–only to receive boxes of wet wipes, rocks, and toilet paper in the process.

A rise in complaints

DTI received a total of 27,947 in 2022, which is more than double compared to pre-pandemic levels of about 10,000. Only 2,500 complaints were resolved, while 9,900 of them were endorsed to the appropriate agencies. The rest were either withdrawn or issued certificates to file a case to the court.

Based on all the complaints DTI has received, 44% (or around 12,200) involved online transactions, and 2,200 of those complaints were tagged as “deceptive, unfair, or unconscionable sales acts”.