Malls warned vs affiliates engaging in deceptive sales acts

By Jason B. Neola

The Naga City government and the Department of Trade and Industry (DTI) have warned all mall owners and managers in the city to “double check” the background of businessmen who are applying to be affiliates in their establishments.

The call to adopt stricter measures on traders planning to rent a store or a space inside a mall was made by the local government unit (LGU) and the trade department in the hope that it will stop the illegal business practice in malls, which is a violation of Article 50 of Republic Act 7394 otherwise known as the Consumer Act of the Philippines.

In a meeting with mall owners and managers over the weekend, DTI-Camarines Sur Provincial Director Edna Tejada cited Greentop Marketing as “one of those stores in the city being complained of for engaging in deceptive sales acts and practices.”

MEETING. Naga City Councilor Jose Perez and DTI Provincial Director Edna Tejada during a meeting with mall representatives in the city. REY BAYLON/CEPPIO

Tejada said that one of the examples of deceptive sales include approaching prospects and making them believe they have won a prize. The sales clerk will tell the would-be victim that his/her name has been randomly selected.

However, in order for the customer to get his/her prizes, he/she needs to purchase an item from the seller first, of which the prices, most of the times, are ten times higher than the good’s actual price.

There are even instances when the sellers or agents will ask the customer for his/her ATM card and its current balance – a very clear violation of consumer law.

In its report, DTI said Greentop was being accused by its victims for pocketing their hard earned money by making them believe that they won valuable prizes in a raffle draw but have to pay first for the items that the store clerks are selling them before they can claim the valuable items they won.

Greentop Marketing, according to the DTI, has closed shop and cannot be located now from its rented space inside Win-Win Mall along Roxas Avenue, Naga City.