Jail time and fines for traders who mislabel imports as local products, DTI warns

Traders who mislabel imports as local goods amid the Department of Industry's "buy local" campaign may face jail time and financial penalties, the DTI warned.

In a statement on Thursday, the DTI said that traders found guilty of mislabeling may face imprisonment of up to two years and a fine, or both, at the discretion of the court for violating the Republic Act No. 7394 or the Consumer Act of the Philippines.

“They may likewise be charged with performing deceptive sales acts and practices, punishable with a fine or imprisonment of up to one year or both,” it said.

The agency reiterated that under Article 77 of RA 7394, product labels must include the "Country of Manufacture" if imported.

The label must also indicate that if a consumer product is manufactured, refilled or repacked under license from the principal, according to the DTI.

The DTI has also issued Administrative Order No. 01-08 or “Addenda to the Implementing Rules and Regulations of Republic Act No. 7394,” which requires all consumer products sold in the Philippines, whether manufactured locally or imported, to indicate, among others, its country of manufacture.

The Trade department issued the warning amid concerns from consumer groups that some traders might take advantage of the “buy local” campaign by mislabeling imported products and sell them as local goods.

The government has recently revived its “buy local” program to help the country’s economy recover from the effects of the COVID-19 pandemic and preserve the employment of many Filipinos.

The recently passed Bayanihan To Recover As One Act or Bayanihan 2 has also given priority to locally manufactured products in the purchase of around P3 billion worth of medical goods, particularly personal protective equipment.

The DTI is also pushing for the use of local construction materials for infrastructure projects of national and local governments. — By TED CORDERO, GMA News

Source: Peso Economics