Sales promotions

Q. Dr. Edward Bolanos has filed a complaint against a leading credit company. He writes: "Their promo required all entries to be submitted via text messaging. I became suspicious about the mechanics because contestants can only join the promo upon spending a minimum of P500. Each entry would cost P2.50 instead of the usual rate of P1 for a text message.

"The credit card company appeared to be generating not only excessive revenues but also funds to cover the cost of the prizes for the wining entries. I believe the mechanics of the sales promotion are similar to those of gaming, where you buy your way into a raffle. Does DTI have clear guidelines regarding the mechanics of a legitimate sales promotion? Why are consumers forced to pay more than the normal rate of P1 per text message."

A . We’d like to commend Dr. Bolanos for being a vigilant consumer. We encourage everyone to be as curious as him and to pay close attention to the mechanics of sales promotions you choose to enter. The DTI is currently working out a joint undertaking with the National Telecommunications Commission to address the issue raised by Dr. Bolanos.

Q. Josephine Tac of Mandaluyong writes: "On September 17, 2002, we went to a bank’s Cainta, Teresa, Rizal branch, intending to pay our electric bill. Unfortunately, the guy in the counter named Darwin hurled invectives and added that he cannot accept five- and ten-centavo coins because they will only end up in his pocket.

"I explained that coins were accepted in our payment of our July 2002 electric bills (he was not assigned at the counter then). I added that Meralco payment centers also accepted our coins whenever we paid our bill. My explanation fell on deaf ears and he continued to act as if he was the owner of the bank.

"Prior to this incident, an old woman paid her bill and just after she left the counter, I heard Darwin tell the lady in the other counter, ‘Ang babaho ng pera!’ What an attitude! Now, if these coins are not accepted, why then are they still circulated and given as loose change by big supermarkets like SM and Rustan’s Expresslane. When did our government stop honoring five- and ten-centavo coins?"

A. Section 52 of Republic Act 7653 of the New Central Bank Act states that coins are legal tender in amounts not exceeding P50 for denominations for P25 centavos and above; and in amounts not exceeding P20 for denominations of ten centavos or less. A violation of this Act or other related banking regulations is punishable by a fine of not less than P50,000 but not more than P200,000 and/or by imprisonment of between two and 10 years.

(You may send your consumer complaints and comments to the Bureau of Trade Regulation and Consumer Protection, DTI Bldg., 361 Sen. Gil Puyat Ave., Makati City. Call us at our consumer hotlines at 896-5740 or 890-4938 or e-mail us at www.e-reklamo.net.ph)