00:00to the sub-standard and pecking appliances that are sold online
00:05and updates on the continued increase in online sale of vape products.
00:10We have with us the Consumer Affairs and Legal Services Group
00:15Undersecretary Amanda Nograles of the Department of Trade and Industry.
00:20Usec Nograles, good afternoon to you.
00:24Hello, good afternoon, Nina, Usec Marge. How are you?
00:29I'm good, Usec. How are you?
00:31I think you are inspecting a lot of pecking appliances and sub-standard appliances that are sold online.
00:38I'm very busy.
00:39When did the surge occur and why did our focus shift to this issue, Usec Amanda?
00:46Okay. Because, of course, in this post-pandemic, businesses really boomed, especially online shopping.
00:55So one of the new modes that we discovered is to avoid the rule of DTI
01:02that is necessary for electrical appliances to pass through us
01:06for application of a PS license or an ICC if imported.
01:11One of the ways that they are not following this is the direct selling of foreign sellers to our consumers.
01:21That is a trend now in online marketplaces.
01:25Of course, we have sellers whose items are imported.
01:30That is no longer followed by DTI.
01:33Because what we saw from the data and reports is that
01:37when a consumer buys an electrical appliance online, let's say in a marketplace,
01:45it will go directly to the Philippines and will be shipped to the warehouse here.
01:50From that warehouse, it will be delivered by courier or delivery service directly to the consumer.
01:56So given that pattern, DTI is no longer included when it comes to checking if it has a PS mark or ICC sticker.
02:08Here, we need to consult with the Bureau of Customs
02:13because the mandate of the Bureau of Customs is to import and import products from other countries.
02:20DTI will be included when it comes to products that are delivered and sold to consumers.
02:29Under the Internet Transactions Act, there is a way for DTI.
02:38First of all, we have what is called a takedown order.
02:42That is the power of DTI under the Internet Transactions Act.
02:46When we see an online merchant selling a product that does not have a PS mark or ICC sticker,
02:55we can take that listing and give it to the e-marketplace for a takedown, to remove that listing.
03:03Under this procedure, we are also caught.
03:06Secondly, we are doing this.
03:09Of course, our enforcement teams also go around retail stores for imported products that do not have a PS mark or ICC sticker.
03:20Now, we have identified in this new modus that foreign sellers are directly selling the product to our consumers.
03:31Okay, Usec Amanda, what can be done to continue to encourage some of our countrymen
03:38to use substandard and pecking appliances that are sold online?
03:44Yes, that's a good point, Usec Marge. Thank you for the question.
03:49When our consumers buy electrical appliances that are uncertified, meaning they do not have a PS mark or ICC sticker,
03:57they do not go through DTI, we do not have a guarantee when it comes to product safety and quality.
04:04For example, we did not check the voltage of the electric fans,
04:13the voltage in the Philippines, if it will not explode, if it is in a short circuit.
04:19The issues in the normal use of a consumer, that was not tested by DTI.
04:25So what we want to appeal to consumers is to buy a product that has a PS mark or ICC sticker.
04:35Even if this product is imported, we also have sellers who still go through DTI.
04:42There are only a few who go directly to consumers.
04:48This is just dangerous because life is at stake here.
04:50You can save a little, but your house will be burned, it will be short-circuited, and someone will be hurt.
04:56So I hope that's what our consumers think.
05:02Based on your assessment, Usec, have you already discussed the illegal warehouses,
05:09your agency, where these came from?
05:11And have you identified where the countries these came from?
05:17So as to that information, the warehouse, number one, we have not identified a warehouse yet.
05:24We had a discussion with Cong Irwin Tulfo here.
05:28In fact, he filed a house resolution calling for DTI and DOC to coordinate
05:37on regulating warehouses.
05:39We don't know yet because warehouses are private property.
05:43So it's hard to enforce and inspect if we don't have a proper search warrant.
05:49As to the source of the goods, we identified a few that came from China.
05:56We also caught a few on the retail front, meaning those in stores.
06:02As to the appliances, around Php 55 million worth.
06:08And then TV sets and consumer electronics, around Php 80 million.
06:14So that's what we caught on the regular course of inspection of DTI.
06:19We haven't been able to move to the warehouses that fell from abroad and went straight to the consumer.
06:26Yusek Amanda, aside from monitoring, do you also have a connection to Meta or Facebook?
06:32Because there are also a lot of illegal appliances being sold in the Facebook marketplace.
06:39Yes, yes. Thank you, Yusek Marge.
06:42In fact, we have a good working relationship with Meta, with Shopee, with Lazada, with the popular e-marketplaces.
06:52When we give them a takedown order, they have a commitment that they will take it down within 24 hours.
06:58Second, when we talk to them, we have clients, they have a commitment that they will self-police.
07:07This means that they check the listings of their sellers if there is a violation of registration, license, PS mark, ICC.
07:18But there is a leakage, what we call leakage, the ones that are leaking.
07:22So that's what we are continuously working on and we are discussing what can be done.
07:30In fact, that's what we did with Vape that you mentioned earlier.
07:35With Vape, because it's hard to regulate, we have a temporary suspension of selling Vape to e-marketplaces or online platforms.
07:46We are giving an opportunity to e-marketplaces to fix their algorithms, their systems
07:53to ensure that only Vapes that can be sold pass the DPI, product registration and licensing requirements
08:03and not reach minors.
08:07Yusek, Asek, what are the risks and risks of selling surplus appliances?
08:17What is the evaluation of DTI on these? What are the surplus items?
08:23Okay, so these are factory surplus.
08:27It means that for one reason or another, it is not a perfect item that can be put on the retail front.
08:36So these surplus items, let's just check it.
08:39Because for the others here, there is no problem when it comes to PS license, PS mark or ICC.
08:45For example, for the others,
08:52the functionality of the product is not a perfect product.
08:56That's why it can be sold at a discount.
08:59So we are talking about discounted or surplus items.
09:03For the consumer, we just need to be careful.
09:06If it has a PS mark or ICC sticker,
09:10it is enough for us to check it for safety and quality of DTI.
09:17Okay, Yusek Amanda, let's go back.
09:19How is your evaluation of those who sell illegal vape products online?
09:26Has the number of these decreased?
09:30Yes. So far, we have not been caught for selling vape products online.
09:37We just imposed a temporary moratorium that vape products will not be sold online.
09:47While we are giving an opportunity to online merchants and e-marketplace
09:55to check their product registration, product license, and VIR.
10:02Because now, our vape products are required to have tax stamps.
10:08So when we talked to e-marketplace, online merchants, and the whole vape industry,
10:16we asked them for help to clean the market because there are too many.
10:24We asked them to cooperate with the temporary moratorium.
10:28So far, based on our monitoring, they are complying.
10:32And again, there are just a few leakages.
10:35The number is not increasing, but it has improved compared to the previous statistics.
10:42Okay, thank you very much for your time.
10:45Consumer Affairs and Legal Services Group,
10:48Undersecretary Amanda Nugrales of the Department of Trade and Industry.
