DAO NO.10-08 s2010
  Further amending the revised implementing rules and regulations of Act No. 3883, as amended, otherwise known as the Business Name Law.
   
   
   
   
   
   
   
 
   

DTI Shuts Down Homesonic Appliance Center

The Department of Trade and Industry ? National Capital Region (DTI-NCR) ordered the temporary closure of Homesonic Appliance Center located in a shopping mall in Mandaluyong City. This is due to the continued influx of complaints against the firm and the sales personnel who allegedly employ deceptive, unfair and unconscionable sales practices.

Starting January 2007, approximately 40 complaints against this company were filed at the Legal Affairs Center (LAC) of DTI-NCR. The usual strategy used by this firm?s sales staff is telemarketing or approaching customers at the mall to unduly influence them to make a purchase usually through their credit card. These personnel also declare to customers that they won a gift and in order to claim a higher prize, they need to make a purchase.

Assistant Secretary Angel L. Pelayo of DTI-NCR said that the parties involved in these deceptive sales acts leave out material facts which if known to the buyers, they may not have entered the sale: ?Clearly, there is misrepresentation. Unsuspecting consumers pay exorbitant prices for certain products that they do not really intend to buy.?

The Consumer Act of the Philippines (R.A. 7394) Title III Chapter I Article 50 provides for the regulation of sales acts and practices and prohibition against deceptive sales acts or practices. ?An act or practice shall be deemed deceptive whenever the producer, manufacturer, supplier or seller, through concealment, false representation of fraudulent manipulation, induces a customer to enter into a sale or lease transaction of any consumer product or service.?

Homesonic is alleged to have also violated Article 52 of Title III Chapter I because of their unfair or unconscionable sales act. Due to lack of relevant information and lack of time to decide, consumers are induced to make a purchase by the sellers.

Upon examination of the complaints and the attached pieces of evidence in DTI?s record, it has been found that this firm has continued its operations, despite repeated complaints against them. ?We want to see to it that the culprits take on the consequences of their acts. The consumers are our priority. We hope that the public will be more vigilant. If it?s too good to be true and when in doubt, you can call DTI for information,? Pelayo stressed. Upon examination of the complaints and the attached pieces of evidence in DTI?s record, it has been found that this firm has continued its operations, despite repeated complaints against them. ?We want to see to it that the culprits take on the consequences of their acts. The consumers are our priority. We hope that the public will be more vigilant. If it?s too good to be true and when in doubt, you can call DTI for information,? Pelayo stressed.

By virtue of DTI Department Administrative Order (DAO) No. 7, Series of 2006 and Article 159, Chapter III, Title V of the Consumer Act of the Philippines (Investigation of Consumer Complaints), the said establishment was ordered temporarily closed and padlocked. This is to prevent the disposition and tampering of evidence and/or the continuance of the acts complained of.

The public can call DTI Direct at 751-3330 for information regarding deceptive sales acts and practices.


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