DTI chief creates special task force to prosecute pyramiding cases

Trade and Industry Secretary Cesar V. Purisima has finally created a special legal task force to prosecute pyramiding cases filed with the Department of Trade and Industry (DTI).

"With the task force now in place, the DTI can now fast track the review of pyramiding complaints and hopefully clamp down on illegal marketing scheme that have been preying on innocent consumers including overseas Filipino workers," Purisima said.

The special task force is under the overall supervision of the Trade Undersecretary of the Consumer Welfare and Trade Regulation Group (CWTRG).

Trade Undersecretary Adrian S. Cristobal assured that "we are now reviewing the complaints we have received as well as the cases filed against businesses establishments suspected to be engaged in pyramiding."

The functions of the task force include assisting the DTI regional offices in evaluation marketing plans of business establishments and supplementing the DTI regional offices in evaluating complaints.

The task force would also initiate legal or administrative proceedings against companies suspected to be engaged in pyramiding.

It would also formulate and conduct an education campaign for the general public and coordinate with other government agencies and law enforcement entities to promote a sustained drive against pyramiding.

The DTI has repeatedly cautioned the public against pyramid schemes disguised as direct marketing activities.

The DTI has already warned companies involved in such schemes that the government is ready to impose sanctions on them should their marketing plans turnout to be pyramiding schemes.

The DTI issued the warning due to continuous inquiries on the business activities of certain companies. It has also been receiving request from our embassies abroad, especially in countries where there area a lot of overseas Filipino workers, to verify the business operations of certain companies.

The DTI has been gathering information on suspected entities to determine whether they are engaged in pyramiding or not. The DTI has submitted the names to relevant agencies like the Securities and Exchange Commission (SEC) to do a thorough background check.

The DTI is also checking with industry associations to ascertain the legitimacy of the suspected companies’ business operations.