Raffy Tulfo airs frustration over DTI's alleged inaction on networking scams

Senator Raffy Tulfo on Monday chided the Department of Trade and Industry (DTI) over its alleged inaction on networking scams.

During the Senate committee on trade, commerce, and entrepreneurship organizational meeting, the broadcaster-turned-lawmaker said he has been receiving complaints about networking companies "duping" innocent people.

"Ang palagi kong question na palaging iniiwas-iwasan ng DTI ay ano ang ginagawa ng DTI para maregulate itong mga networking company na by the hundreds and even thousands na ang mga naloloko o naisahan," Tulfo said.

(My question that DTI keeps on evading is what is it doing to regulate networking companies which have duped hundreds and even thousands of people.)

"Paulit-ulit pa rin hanggang sa ngayon (They do it over and over again up to now), even while we speak, ay meron pa rin diyang mga (there are) networking company that's been duping innocent people, letting them know they're going to make money out of this and we’ve been calling DTI and asking them to investigate and they're just not doing anything...So DTI can you answer us? At least now, hindi ninyo na ako pwedeng tagu-taguan, hindi ninyo na ako pwedeng iwas-iwasan (you can't avoid me)," he added.

Trade Undersecretary Ruth Castelo said DTI has been running after multi-level marketing companies that are not legitimate.

"We work on this with the Securities and Exchange Commission where we get the information and who is the proper agency to advise DTI that they are not legitimate," Castelo said.

"We also have recently signed a memorandum order in the previous administration regulating the practice of multilevel marketing companies," she added.

Castelo likewise informed the panel that DTI's Fair Trade Enforcement Bureau is monitoring these companies.

Not convinced with Castelo's response, Tulfo asked DTI why these activities are still prevalent.

"Kung ginagawa ninyo 'yan, 'yang sinasabi n'yo ngayon na mga hakbang para mapigilan, ma-regulate itong multi-level companies, bakit hanggang ngayon tuluy-tuloy. In fact, dumami pa rin parang mga kabute kung saan merong pandemic itong mga multi-level company promising kickbacks, promising good future for the Filipino people. Nandyan pa rin hindi pa rin na-address," Tulfo noted.

(If it is true that you are doing that to stop, regulate these multilevel marketing companies, why is that they are still here. In fact, more have sprouted like mushrooms during the pandemic promising kickbacks, promising good future for the Filipino people. They are still there.)

He then suggested the DTI to work with the law enforcement agencies such as the National Bureau of Investigation and the Philippine National Police to stop the alleged scam perpetrated by some multi-level marketing companies, especially now that they "dominate" in online platforms.

Castelo acknowledged Tulfo's suggestion, adding that DTI has been monitoring these companies.

Tulfo also mentioned promodizers or account executives who are recruiting people to buy and sell goods which turn out to be "fake products."

"Dadalhin sa isang kwarto d'on sa opisina...hanggang its too late for the victim, siya po pala ay nakapag-withdraw na ng by hundreds of thousands of pesos sa kanyang ATM, saka pa lang siya namulat na siya pala ay na-scam," he raised.

(They will be brought to an office...until it is too late for the victim, he or she had already withdrawn hundreds or thousands of pesos from the ATM before he or she realizes that he or she has been scammed.)

"You know that DTI. Lagi akong tumatawag sa inyo, nagsasawa na ako sa katatawag sa inyo kasi hindi ninyo ako sinasagot, iniiwas-iwasan ninyo ako (I have been trying to reach you, I am getting tired of calling you because you don't answer, you have been avoiding me)," he said.

"Ngayon, iwasan ninyo ako, subukan ninyo akong iwasan (Now, try avoiding me)," he warned.

Castelo said they have been granting interviews and responding to queries but Tulfo said he often speaks with officials who cannot decide on certain matters.

"I need decision makers who could answer questions directly to my queries, and more often than not, hindi 'yan eh," he said.

At this point, Trade Secretary Alfredo Pascual responded to Tulfo, saying this is a problem that should be dealt with together with other government agencies.

"This cannot be managed or controlled just by DTI alone. We might have to bring in the picture SEC and then the PNP and then other law enforcement agencies," he said.

"But thank you for bringing up this matter in this meeting so we can take appropriate action to address these illegal practices and scams," he added.

Apart from scams, Tulfo also said some companies have been recruiting employees to sell fake products but they are being fired before they can get their salaries.

Tulfo said some companies are closing their operations if there are complaints lodged against them. These companies reopen using a different company name, he said.

Responding to the senator, Pascual said DTI only registers the business names to make sure that entities are not using the same title.

He also explained that the registration of companies is within the jurisdiction of the Securities and Exchange Commission.

The DTI chief then suggested intensifying the education campaign to teach the public how to decide or who to deal with when it comes to trade and investment.

"Ang kailangan nating turuan ay 'yung mga tao mismo. Siguro magkaroon tayo ng education campaign so that we can make them aware kung paano ang dapat sistema at desisyon, kung kanino sila makikipag-transaction," Pascual said.

(We need to teach the public. Maybe we should have an education campaign so that we can make them aware about the system and the right people they should have transactions with.)

Castelo also vowed to double their efforts on consumer education after Tulfo asked if DTI has already launched an information campaign using the media.—AOL, GMA News