The Department of Trade and Industry (DTI) released Department Administrative Order (DAO) No. 21-09, or the “Guidelines on the Grant of the DTI Seal of Legitimacy for Legitimate Direct Selling and Multi-Level Marketing”, to promote fair and responsible business practices. Under DAO 21-09, companies engaged in legitimate direct selling and multi-level marketing may be granted a Seal that will serve as a mark distinguishing them from among those with questionable practices. 

With the Seal of Legitimacy, the DTI hopes to protect the public from becoming victims of companies employing chain distribution plans or pyramiding scams that are prohibited under Article 53 of the Consumer Act of the Philippines (Republic Act No. 7394). 

Interested companies may submit their application to the Consumer Policy and Advocacy Bureau (CPAB), together with the following documentary requirements:

  • Certificate of Registration issued by the DTI/Securities and Exchange Commission (SEC)/Cooperative Development Authority (CDA);
  • Business permit/license to engage in the business as applied with the Local Government Unit (LGU);
  • General Information Sheet or list of officers or members including their Tax Identification Number (TIN);
  • Certificate of Bureau of Internal Revenue Registration; and
  • Compensation and marketing plan

An Evaluation Committee shall review all applications before approval by Undersecretary for Consumer Protection Group (CPG). 

Periodic and random audits shall also be done among companies granted the Seal to ensure compliance.  

“Through the DTI Seal of Legitimacy, we hope to guide the public in choosing the  direct selling and multi-level marketing companies they will engage with so they will not fall prey to pyramiding schemes masked as MLM.” DTI Consumer Protection Group Undersecretary Atty. Ruth B. Castelo underscored.

The public can obtain a copy of the guidelines from the DTI website. For consumer-related concerns and queries, you may send an email to ConsumerCare@dti.gov.ph or reach us thru the One-DTI (1-384) Hotline. ♦

Date of Release: 11 February 2022

 

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