Online transaction complaints increased to almost 15,000 amid pandemic —DTI

Amid the public's reliance on online selling platforms during the COVID-19 pandemic, the number of complaints that the Department of Trade and Industry (DTI) received involving these transactions has increased to almost 15,000.

This was revealed on Monday during the inquiry of the House committee on trade and industry into the growing reported cases of online fraud and the recent spate of internet scams and fake online bookings.

According to DTI Undersecretary Ruth Castelo, the department has received a total of 14,869 complaints involving online transactions January 1 to October 31, 2020 —way higher than the 2,457 complaints the department recorded in 2019.

Of this number, 3,475 complaints were against Lazada and 3,432 were against Shopee, the two biggest online selling platforms in the country.

Meanwhile, the remaining 7,962 complaints were against other online selling platforms like Facebook Marketplace.

"We understand that Shopee and Lazada are among the three biggest platforms in the Philippines that are very active, which would probably explain the number of cases filed against them," said Castelo.

Lazada CEO Ray Alimurung, nevertheless, said that only 1,699 complaints have been escalated to them by the DTI.

"The escalations of 1,699 in relation to the items sold in 2020 is .0006%," he added.

Castelo likewise provided the nature of the complaints received by the DTI, of which 7,539 or 50.7% of the total are related to violations of the Price Act, such as overpricing, profiteering, or lack of price tag.

Meanwhile, 3,157 of these complaints are related to defective products, while 2,641 involve deceptive or unfair sales acts or practices in which the description of the product posted online is different from that of the actual one.

The DTI has so far resolved 1,543 of these complaints and endorsed or elevated 8,032 others to concerned government agencies.

"When we say endorsed, these are the cases that we farmed out to the proper government agencies that have jurisdiction over the complaints," Castelo said.

"An example would be on medical devices. We endorsed them to the FDA (Food and Drug Administration). On telco complaints like vanishing load if there are still some, or internet connection, we endorse them to the NTC (National Telecommunications Commission) if we cannot resolve them anymore," she added.

The inquiry into these cases of online fraud was conducted in relation to the proposed Internet Transactions Act, principally authored by panel chair Wes Gatchalian.

The measure seeks to regulate the e-commerce industry in the country and create the Electronic Commerce Bureau to ensure and promote the protection of consumers doing online transactions, among other functions.

The said bill is currently awaiting plenary deliberations.—AOL, GMA News