DTI calls for inclusion of online ads in ASC pre, post screening

MANILA, Philippines — The Department of Trade and Industry (DTI) is urging the Ad Standards Council (ASC) to include online advertisements in the pre- and post-screening of advertising materials in a bid to protect consumers from misleading advertisements and fraudulent sales.

Trade Secretary Alfredo Pascual explained that in 2022, 44 percent or 12,200 consumer complaints received by the DTI’s Fair Trade Enforcement Bureau (FTEB) involved online transactions.

He said that the most common complaints among the 12,200 were liability for product and service imperfection with over 2,500 complaints; deceptive, unfair, or unconscionable sales act or practices, like not receiving any item at all even after payment: almost 2,200 complaints; and misleading advertisement and fraudulent sales promotion practices, as in no discount during an advertised sales promo at 450 complaints.

“More than its regulatory and penalizing provisions, the Consumer Act of 1992 seeks to create a positive consumer environment where our rights to safe products and services, fair transactions, and redress are fully exercised,” Pascual said.

Pascual shared that in 2021, the DTI renewed its partnership with the ASC as it signed a memorandum of understanding for the latter to continue to protect consumers by pre- and post-screening ad material content for compliance with the law and the Council’s own Code of Standards and Ethics.

“We are grateful to ASC for doing this. The impact was immediately felt, as we noted a 25 percent drop in the number of complaints on misleading advertisements and fraudulent sales promotion practices nationwide. The number of complaints fell from 1,166 in 2021 to 873 in 2022,” Pascual said.

Aside from the inclusion of online advertisements in the pre- and post-screening of advertising materials, Pascual also urged the ASC to help push for the enactment of the Internet Transactions Act (ITA), which seeks to strengthen trust in e-commerce and online transactions.

“At the heart of this highly anticipated legislative measure are mechanisms such as the Online Business Registry (OBR) and the eCommerce Philippine Trustmark.

“To fast-track the adoption of Trustmark while the bill is pending in Congress, our Digital Philippines E- Commerce Division is drafting a Department Administrative Order (DAO) with guidelines to establish the e-commerce Trustmark,” Pascual said.

Given the number of cases of fraud online, it doesn’t come as a surprise that consumers base their purchasing decisions on how much they trust the e-commerce system in general and the online merchant in particular. Trust, or more precisely lack of trust, is still the biggest barrier to the industry’s realizing the full potential of e-commerce,”he said.

Moreover, Pascual emphasized that the government and private sector must both be proactive and responsive to the changing circumstances of this digitalized world.

“Together, let us ensure consumer protection in the new normal. I enjoin your industry to collaborate actively with us to push Philippine advertising to new heights, to compete with the best in the world. Tell us how we can help you to achieve your dreams, because your success is also our country’s success. Together, let us build a resilient and sustainable economy by prioritizing consumer safety,” Pascual said.