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-NCR Slaps Formal Charge Against Aowa and Homesonic

Aowa Electronic Philippines and Homesonic Appliance Center were formally charged by the Department of Trade and Industry ? National Capital Region (DTI-NCR) for deceptive and unconscionable sales acts, as cited in Articles 50 (Prohibition against deceptive sales acts or practices) and 52 (Unfair of Unconscionable Sales Act or practice) of the Consumer Act of the Philippines.

Various complaints against Aowa and Homesonic filed at the Legal Affairs Center (LAC) of DTI-NCR date back to 2001 and 2003 respectively. Complainants cite the sales representatives? strategy of offering them gifts or prizes to attract them to enter their stores. Later they found out that the offered items are in fact not free items, as they may only be claimed if an additional product is purchased. Usually their credit cards are obtained from them, initially as identification card. After the transaction, they realized that they have already paid for the item that they do not really intend to buy through their credit card. Aowa and Homesonic operate in several major shopping centers in Metro Manila. Aowa has 19, while Homesonic has 11 outlets in the NCR.

Assistant Secretary Angel L. Pelayo vows to crack down other firms engaged in this type of marketing scam: ?We will not stop in investigating on other alleged scammers. We started issuing formal charge to these two firms, and we will be looking after the others as well. Consumers now should increase their vigilance. Be cautious and well-informed. If you have similar complaints, please feel free to report to us and we will take action.? The address of DTI-NCR is at 12th Floor, Trafalgar Plaza 105 H.V. Dela Costa St., Salcedo Village, Makati City.

DTI-NCR issued the formal charge, in accordance with the procedures provided for by Department Administrative Order No. 7, Series of 2006 (DAO 7, 2007). The formal charge asks for the issuance of a cease and desist order, ordering the two firms to permanently cease and desist from continuing in its business operations. An administrative fine will also be imposed for each count that these companies may be proven to have committed.

The public can call DTI Direct at 751-3330 for more information, or visit www.dtincr.ph (end)


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