DTI exec warns Ilonggo businessmen vs bogus awards, marketing scams
Want to be the "Best Employer?" You could, for a price. Want your business to be the "Most Outstanding Workplace?" Again, it could, for a price. And it is not really that much with the amount ranging from P5,000 to P12,000. But wait, there's a catch. Maybe it is best to know who is giving the award. And how the award will be distributed.
For starters, beware and be aware of bogus awards and marketing scams that have now reached Iloilo and tried to lure Ilonggo businessmen into the fray. The strategy, Department of Trade and Industry (DTI) Provincial Director Diosdado Cadena shared with The News Today (TNT), begins with a congratulatory message and the good news on the recognition due to the recipient. An elaborate explanation will then follow on how to claim the award that would eventually involve some money that has to be sent and/or an advertising proposal.
For now, the DTI Central Office is in receipt of a complaint directed to eight of these award-giving bodies filed by nine marketing associations for specific violations in the Consumer Act of the Philippines under Republic Act 7394.
And it is happening here, Director Cadena acknowledged, reason why he issued a warning on the Ilonggo business community.
"It is hard to catch them (the culprits) and for now what we can just do is to investigate once we get the complaint, check on the local persons involved or if the group is Manila-based, alert our Manila office and ask for their help to check on the organization's background. Sadly, ours is reactionary and we would not really know until there is a victim. So we are warning the public and our Ilonggo businessmen, be careful with these award-giving bodies especially if there is money involved. And let us know if you have doubts so we can be of help," Cadena said while adding, "it's a criminal offense what these people are doing and it is not even covered by the Consumer Act. It is purely fraudulent advertising based on a deceitful modus operandi where they create false expectations. Be on the look-out on these people."
DTI Manila is currently handling the complaint filed by the Philippine Marketing Association, Philippine Franchise Association, Direct Marketing Association of the Philippines and five other co-complainant groups.
Respondent-organizations are the Philippine Marketing Excellence Awards, National Shopper's Choice Awards, National Product Quality Excellence Awards, Global Excellence in Marketing Awards (Symbol of Agora Excellence), Star Brand Awards, People's Brand Awards, International Management Excellence Awards and the National Consumers Quality Awards.
The complaint as lodged was anchored on soliciting monetary consideration or award fees in exchange for the awards, conferment of these awards without proper substantiation and data and questionable objectivity, credibility and integrity of the evaluation employed in the selection of awardees.
TNT learned from sources that at least ten Ilonggo businessmen were "awardees" of one of the accused organizations. One Filipino-Chinese trader and known figure in the local business community shared a similar experience yet told TNT that he ignored the supposed recognition.
Another Ilonggo businessman, speaking on condition of anonymity, disclosed of having received three separate offers from three supposed award-giving bodies before but he declined sensing that the so-called awards were not credible.
The businessman said the award-giving body sent a communication by fax informing him of the award and that he has to pay a certain amount for it.
"I simply ignored it. Something's fishy with those so-called awards; why there is money involved? Awards should be based on merit, awards are not to be bought," the source said.
Republic Act No. 7394, or the Consumer Act of the Philippines, was enacted to protect the interests of the consumer from trade malpractices and from substandard or hazardous practices, promote his general welfare and to establish standards of conduct for business and industry.
The Act mandates the Government to develop and provide safety and quality standard for consumer products, including performance or use-oriented standards codes of practice and testing methods. It was also designed to assist the consumer in evaluating the quality of consumer products, including safety, performance and comparative utility, protect the public against unreasonable risks to injury associated with consumer products and undertake research on quality improvement of products and investigation into causes and prevention of product related deaths, illness and injuries.