MANILA, Philippines - Consumer advocacy group Laban Konsyumer Inc. has threatened the Department of Trade Industry (DTI) with legal action should the agency pursue its plan to abandon the pre-approval of the manufacturers’ suggested retail price (SRP).
In a statement yesterday, the group said it is opposing DTI’s move to keep its hands off in the approval process of the SRP for basic necessities and prime commodities as included in a new Draft Administrative Order (DAO).
Section 7 of DTI’s DAO states there shall be no pre-approval of the manufacturers’ SRP.
“When and if the DTI insists and the order is signed and implemented, there are four possible courses of action to be taken by the group,” Laban Konsyumer said.
“First, we may file specific cases of acts of price manipulation like profiteering and cartel against all parties concerned. Second, go to the court and challenge the order as contrary to law. Alternatively, the third, appeal to the Office of the President to reverse the order. The fourth is file a case of accountability before the Ombudsman for giving undue advantage to the manufacturers’ causing injury to the consumers,” it added.
The group, led by former trade undersecretary Victorio Dimagiba, said the DTI is abdicating its legal duty to conduct a prior review of manufacturers’ SRP of basic necessities and prime commodities which assure consumers prices are generally stable and reasonable.
“The DTI’s responsibility is essential at this time when the seemingly orchestrated actions of regulators are pushing to increase the costs to produce and distribute basic and prime goods,” Laban Konsyumer said, citing the 24 percent increase in cargo handling charges at the port authorized by the Philippine Ports Authority, pending petitions to increase toll fees and water rates, and traffic plans seen to further limit the turnaround of goods as examples.
“To top it all, the imminent enactment into law of the tax reform package that shall impose excise taxes on petroleum products , sugar sweetened beverage and the repeal of VAT exemption of the power sector that shall translate to higher generation , transmission and distribution charges,” it added.
For his part, Trade Secretary Ramon Lopez said DTI’s move regarding SRP setting has so far not resulted in any drastic price increase in goods.
Lopez reiterated that SRPs of basic products would continue to be monitored closely by the DTI as it would only be the agency’s mandate to approve SRP and its necessary adjustments that would be scrapped.