In a 15-page advisory dated April 29, 2015, the department said "risks, trade malpractices, and operational challenges exist in online shopping in view of the anonymity being offered by the internet."
"This advisory is issued to inform online shoppers of the risks involved in dealing online, as well as to guide online shopping providers in providing a safe and secure online shopping environment, in the promotion of consumer welfare."
"It is the policy of the state to protect the interests of the consumer, promote his general welfare, and guard against against deceptive or unfair business practices, as it recognizes the vital role of information and communications technology, and the importance of an online environment conducive to social and economic development," the advisory read.
The DOJ said the public must be able to protect themselves against the following when shopping online:
- frauds and scams;
- misleading or deceptive product advertisements;
- difficulty in returns and replacements;
- unexpected Customs dues, transaction costs, and surcharges;
- privacy breaches and abuse of user information; and
- chaotic delivery procedures.
Consumers must be cautious of the following "red flags" of online shopping fraud, the DOJ said. These include the following:
- products are advertised at very low prices compared to other websites;
- online sellers with poor ratings and/or feedback;
- online sellers who ask you to pay by money transfer service or direct to their bank account rather than through the site's preferred payment method;
- websites with no contact details such as a physical address or telephone number; and
- websites with limited or not information about privacy and their terms and conditions of use.
The DOJ enumerated the following "deceptive sales practices" employed by unscrupulous individuals or entities online:
- a consumer product or service has the sponsorship, approval, performance, characteristics, ingredients, accessories, uses, or benefits it does not have;
- a consumer product or service is of a particular standard, quality, grade, style, or model when in fact it is not;
- a consumer product is a new, original or unused, when in fact, it is in a deteriorated, altered, reconditioned, reclaimed or second-hand state;
- a consumer product or service can be supplied in a quantity greater than the supplier intends;
- a specific advantage of a consumer product exists when in fact it does not; and
- the sales act or practice involves or does not involve a warranty, a disclaimer of warranties, particular warranty terms or other rights, remedies or obligations if the indication is false.
To prevent fraud online, the following must be properly identified and provided for by online sellers and traders:
-Department of Trade and Industry (DTI) and/or Securities and Exchange Commission (SEC) registration;
-name of the owner/proprietor of the retail establishment in case of single proprietorship, and names of directors and other officers in case of a corporation;
-principal address of the retailer, seller, distributor, supplier or manufacturer, and, when applicable, of offices of agents in the Philippines;
-website, email address or other electronic means of contact, telephone and fax numbers; any relevant local or foreign government registration/license numbers such as but not limited to the local government unit's permit to operate, taxpayers identification number (TIN), when applicable;
-contact details about any business association or organization membership, when applicable; and representative agent(s) in the Philippines for purposes of summons.
The DOJ advised the public to protect their computers by installing security software (anti-virus) and update their anti-spyware.
The public is also advised to exercise caution when using public computers for online purchases. It will also greatly help to do research on the background of suppliers and sellers, including customer feedback on these suppliers.
As for passwords, it is recommended that strong passwords are used in setting up online accounts. Online purchases must also be recorded, and bank, credit casrd, and store card statements constantly checked for unusual transactions.
The DOJ identified the following laws and issuances applicable in the case of online fraud: the Cybercrime Prevention Act of 2012 (Republic Act No. 10175), Consumer Act of the Philippines (RA No. 7394), Electronic Commerce Act of 2000 (RA No. 8792), and Administrative Order No. 01, Series of 2008, of the DTI, Department of Health (DOH), of Department of Agriculture (DA).
source: www.abs-cbnnews.com
