DTI closely working with authorities to fight scams

Trade Undersecretary Ruth Castelo said the agency is in close coordination with the National Bureau of Investigation (NBI) and the Philippine National Police (PNP) to address concerns on multi-level marketing scams, including pyramid schemes. (Pexels Photo)

MANILA – The Department of Trade and Industry on Thursday said it is working closely with authorities to stop the prevalence of networking scams.

Trade Undersecretary Ruth Castelo said the agency is in close coordination with the National Bureau of Investigation (NBI) and the Philippine National Police (PNP) to address concerns on multi-level marketing scams, including pyramid schemes.

“Ang DTI po kasi hindi naman tayo tumitigil. Lahat po ng complaints on networking scams – iyong pyramiding, iyong Ponzi schemes na ‘yan (DTI never stops addressing all the complaints on networking scams, pyramiding, and Ponzi schemes),” Castelo, who heads the DTI’s Consumer Protection Group, said during the Laging Handa program.

“Mayroon tayong mga ongoing investigations pa para eventually siguro, kung talagang illegitimate siya or mapatunayan sa mga papeles, maipasara ‘tong mga ‘to (We have ongoing investigations to determine if the companies [facing complaint] are illegitimate. If proven illegitimate, they will face closure),” she added.

Castelo said the DTI is also verifying with the Securities and Exchange Commission (SEC) the legitimacy of the companies facing complaints.

Her statement came after Senator Raffy Tulfo on Monday expressed disappointment over DTI’s supposed slow action against multi-level marketing scammers.

During a Senate hearing conducted by the Senate Committee on Trade, Commerce and Entrepreneurship, Tulfo lamented that the DTI is taking evasive action on complaints of individuals duped by networking marketing firms.

Castelo guaranteed that the DTI is stepping up its efforts to go after illegal multi-level companies.

She also reminded the public to be wary of fraudulent schemes.

“Pero ang DTI din, hindi po tayo naman nagkukulang sa paalala sa mga consumers natin, sa lahat ng tao actually na huwag po tayong basta-basta papasok sa mga ganiyang transactions (The DTI is not negligent in reminding our consumers not to enter dubious transactions),” Castelo said.

In February this year, the DTI issued guidelines on the issuance of seals for legitimate direct selling and multi-level marketing firms, to protect consumers against trade malpractices.

Under the DTI’s Department Administrative Order 21-09, companies engaged in legitimate direct selling and multi-level marketing may be granted a seal by the agency to distinguish them from those engaged in questionable practices.

The granting of seal of legitimacy aims to protect the public from becoming victims of companies employing chain distribution plans or pyramiding schemes.