PASAY—The Department of Trade and Industry (DTI), through its Consumer Protection Group (CPG), begins its rounds of public hearings for the draft Department Administrative Order (DAO) on the revised rules and regulations implementing Article 53 of the Consumer Act of the Philippines relative to the prohibition of chain distribution plans or pyramid sales schemes in the sale of consumer products.

Business-to-consumer engagement have been evolving drastically and the DTI is very keen on providing the most optimum level of consumer protection regardless of the scheme used by business. The draft DAO on pyramiding provides a stronger level of protection to consumers against unscrupulous practices in the market,” said Trade Secretary Ramon Lopez.

A major inclusion in the draft DAO is the mandatory recognition process by the DTI of any person or entity who intends to establish, operate, or advertise a legitimate direct-selling, multi-level marketing, or networking company. This recognition will be required prior to the actual operation of the company. The DTI sees this as a mechanism for consumers to easily identify legitimate business marketing schemes.

CPG Undersecretary Ruth Castelo explained that, “The DTI recognizes the importance of updating the current rules and regulations governing direct selling, multi-level marketing, and networking activities for enhanced protection of the rights and welfare of the consumers. We have been working closely with relevant government agencies and private organizations to ensure that the new DAO is responsive to needs of current and future times.”

Present in the NCR tranche of the public hearing are representatives from direct-selling, multi-level marketing, and networking companies, government agencies, consumer organizations, and other relevant stakeholders.

The DTI is slated to conduct succeeding public hearings in Subic, Cebu, and Davao on October 09, 15, and 17, respectively, to gather as much views and opinions from the public prior to the finalization and approval of the DAO. A copy of the draft Order may be downloaded from the DTI website, Comments and position papers may be submitted to the DTI-Consumer Protection and Advocacy Bureau (CPAB) until 31 October 2019 through email address,

A public hearing is conducted to ensure that the concerns of the public are represented and reflected in the policies being formulated and issued by the government.♦

Date of Release: 27 September 2019