DTI urges consumers to pursue complaints

62SHARES80
Richmond Mercurio (The Philippine Star) - April 9, 2017 - 12:00am
MANILA, Philippines - The Department of Trade and Industry (DTI) assured consumers of a prompt and efficient resolution of their complaints as they urge
the consuming public to exercise their rights.
Trade Undersecretary Teodoro Pascua said consumers have the right to redress or be compensated for misrepresentation, low-quality goods, or
unsatisfactory services.
“We don’t want our consumers to suffer from substandard products and services. They should exercise their right to redress. The DTI is just here to help
them in case business establishments fail to act on their concern,” Pascua said.
Under the Consumer Act of the Philippines, consumers are entitled to ask for a replacement, refund, or repair of a defective product or unsatisfactory
service, the DTI said.
The agency,however, noted that the right to redress does not apply when consumers “just suddenly changed their minds or no longer wanted a product or
service.”
From January to February this year, the DTI said it received 1,460 complaints, all of which are fully settled.
Of the 1, 460 complaints, 337 were dismissed, 274 were archived, 269 were endorsed to other government agencies, 53 were escalated to adjudication,
and 527 were resolved early through mediation.
DTI Fair Trade Enforcement Bureau (FTEB) director-in-charge Ferdinand Manfoste said 98.67 percent of those complaints resolved early through mediation
were acted on within 10 working days.
“The DTI is highly committed to working on a complaint on time and efficiently. To do this, we firmly adhere to our Department Administrative Order (DAO)
No. 13-02, Series of 2013,” Manfoste said.
Section 4 of Rules II and III of the said order states that resolution of complaints falling under the DTI’s jurisdiction shall not exceed 10 working days by
mediation while 20 working days by adjudication.
Manfoste said there were 269 complaints endorsed to other government agencies because those did not fall under the jurisdiction of the DTI.

https://www.philstar.com/business/2017/04/09/1685344/dti-urges-consumers-pursue-complaints
ONLINE SCAM TOPS CYBERCRIME COMPLAIN
Category: News Published: 07 March 2017
“With the increasing number of Internet users there is also an increase in the opportunity for cyber criminals to do their illegal online activities.” said ACG
Acting Director PSSupt Marcos.
Back in 2013 to 2015, the PNP ACG recorded a total of 1211 cases that represents the number of cybercrime complaints received and investigated by the
Group.
The online scam complaints were reported by victims of online buying/selling, paluwagan, investment, pyramid and other forms of online fraud.
In order to address the increasing number of cybercrime, victims of illegal online activities or targets of suspicious online messages are encouraged to
report the incidents to the PNP ACG for proper evaluation and investigation.
“They may also file their complaints or report incidents through our website www.pnpacg.ph, hotline number 7230401 loc 5313 or e-mail at
pnp.anticybercrimegroup@gmail.com. Also they can check our twitter @PNPACG and Facebook account: PNP ACG for cyber security updates.” Marcos
added.

https://www.pnp.gov.ph/news-and-information/news/772-online-scam-tops-cybercrime-complain
ONLINE SHOPPING SAFETY TIPS FOR THE SAVVY E-CONSUMER
The internet is a rich resource of a wide variety of goods and services, which can easily be purchased with a few clicks of our mouse or by tapping our
fingers, wherever we are and whenever we want.
Indeed, freedom to shop online is at our fingertips. However, with freedom comes responsibility.
As smart and savvy e-consumers and online shoppers, it is our lookout and responsibility to ensure that we are protected when we transact in the online
environment, be it on: (1) the merchant’s own website; (2) an e-marketplace/ online mall; or (3) a social networking site.
Following are some tips before shopping online and completing your transaction:
1.Secure yourself.
Use a computer that is not for public use – preferably your own computer/laptop.
Ensure that the computer you are using has an updated anti-virus and anti-malware software program, and an enabled personal firewall.
Use a strong password (combination of upper case, lower case, numbers and symbols) upon registration with the online merchant. Keep it confidential.
Log off from the merchant’s site and the internet browser after each use.
Delete the browsing history in your computer once the purchase is done.
Refrain from clicking on links (whether in an email or on a website) as you may be directed to deceptive/malicious sites. Protect your personal information.
Some merchants require registration prior to purchase on their website. Only fill-up the necessary/required data fields and ensure that the webpage is
secure (i.e., the website address should show a closed padlock icon; https and not only http). Check the merchant’s privacy policy to determine how they
handle your personal information.
Keep a documentation of your online purchases through print copies/screenshots for reference until receipt of your product.
2.Transact with a reputable website/merchant/seller.
Use trusted websites rather than using search engines for shopping.
Determine the legitimacy/authenticity of the website. Look for:
A trust mark or a seal (similar to a seal of “good housekeeping”) issued by a trust mark body.
The URL (Uniform Resource Locator) starting with "https" instead of "http" on the page where you will be doing your credit card transaction. This indicates
that the page is using a secure sockets layer (SSL) and is backed by a web server certificate.
A valid (not expired) web server certificate that is, preferably, not self-signed (which are easy to procure) but issued by a Certificate Authority. Do this by
clicking on the padlock beside the URL or at the bottom of the browser.
Check the merchant’s web address or URL for correctness. Make sure that it is the merchant’s real website. Be careful in misspelling the address to avoid
being misdirected to a bogus merchant’s website.
Always read the privacy policy statement and terms and conditions. No matter how lengthy, these statements are important so that you know how they
handle and secure your information and their payment policy. If you are uncomfortable with any of their terms, do not transact with the site.
In the case of online marketplaces/social networking sites, it can be quite difficult to distinguish between a trustworthy merchant from an unscrupulous one
(usually using fictitious names) selling non-existent or substandard products or services. There are sites that have, fortunately, taken steps to protect their
buyers. Before accepting sellers, these sites first verify the identity of their prospective sellers. They also have a policy for dispute resolution between
buyers and sellers.
3.Trust your instincts. When in doubt, don’t.
Do not proceed with your transaction when:
You have any doubts on the merchant or on any step of the transaction process (e.g., payment, delivery).
A deal/offer looks unbelievable, unreal or too good to be true – unless you have validated the deal/offer. Do not be deceived by huge discounts.
You are hurried or pressured into completing the transaction and making the payment. This applies particularly to those merchants/sellers whose only
payment option is by cash deposit to the merchants’ bank accounts or mobile wallets.
4. Do your research: do comparison shopping and ask around
Visit several websites and do comparison shopping not only of the products and services, but the prices, customer service/after sales service,
shipping/delivery, payment options, etc.
Ask friends and family who have actual experiences with the merchant.
Check online resources; read consumer reviews/reports/comments/blogs but do not base your decision solely on what you read; be perceptive.
5. Read and understand the fine print.
Check that the following information and policies are posted on the merchant’s website:
About Us
Contact Us/Feedback
Privacy Policy
Shipping Policy
Customer Service/After Sales Service
Terms and Conditions
Dispute Resolution/Complaints Handling
FAQs (Frequently Asked Questions)/Help
Ask yourself if they are to your liking/satisfaction and meet your needs/ requirements/expectations.
6. Validate promotional tie-ups.
Contact the establishment directly and verify the validity of the tie-up/offer with the website (e.g., group buying sites).
7.Ensure that online payment is secure and reliable.
Check that the shipping information page and payment information page are secure (i.e., the website address should show a closed padlock icon; https and
not only http).
Verify the existence of a reliable payment facility.
For redirection of the payment page, the merchant’s website should clearly indicate that the payment page will be redirected to the payment gateway’s or
payment provider’s website, which should also be secure.
Monitor your credit card, debit card and checking accounts online on a regular basis. Check your statements (electronic/paper) to validate transactions.
8. Proceed with your transaction if you feel confident, safe and secure.
Online shopping need not be a struggle, it should be enjoyed – as long you feel confident, safe and secure. There is much to explore on the internet.
Always remember: caveat emptor – buyer beware! As a consumer, whether in the physical or online environments, you must remain vigilant, meticulous
and discerning.
https://www.dti.gov.ph/programs-projects/e-commerce/84-main-content/eco-news/9465-online-shopping-safety-tips-for-the-savvy-e-consumer

Customers Complaints in Online Shopping: The Role of Signal Credibility

By Hu, Mingyao; Rabinovich, Elliot; Hou, Hanping

1. Introduction

In China, the emergence of e-commerce has provided a wide range of retailers with a powerful tool to offer a growing middle class access to a wide variety
of goods. According to the 31st Report on China Internet Network Development, which was published by The China Internet Network Information Center
(CNNIC), online retail sales have grown rapidly in China, reaching ¥1259.4 billion in 2012 (a 66.5% increase from 2011). Along with this exponential increase
in sales, the number of online retailers has continued to grow at an unprecedented rate, and the online retailing industry is becoming increasingly
competitive [Szymanski & Hise 2000].

Along with this rapid growth, there has been an increasing number of complaints by customers regarding service failures in their online shopping
experiences [Forbes et al. 2005; Hu & Mao 2013]. Through the Internet, customers can easily share their complaints in virtual communities [Hennig-Thurau
et al. 2004] and this medium have proven to be very effective at spreading this information across the country. Moreover, because online customer
complaint behavior can influence customer's loyalty, as well as other customers' purchase intentions, Chinese online retailers have had little choice but to
pay close attention to customer complaints [Wu 2013] and understand their antecedents in order to prevent the loss of customers and preserve their
market share. Many of these retailers have also come to the realization that customer complaints can actually allow them to not only remedy their previous
failures but also retain their customers' business [Gilly & Gelb 1982].

In traditional service markets, customer satisfaction has significant negative effects on complaint intentions [Oliver 1980; Voorhees & Brady 2005]. Previous
research on drivers of customer complaint behavior mainly focuses on personal traits and post-purchase perceptions [Bodey & Grace 2007; Huang & Chang
2008; Voorhees & Brady 2005]. Lu et al. [2012] examined how dissatisfaction influences customer complaining behavior. Wu [2013] presents an overall
conceptual model on the major drivers of customer satisfaction, how customer satisfaction impacts complaint intentions in online shopping, and the
interaction effect of pre-purchase perceptions on the relationship between customer satisfaction and complaint intentions. Despite recent advances in e-
service research, few studies have examined the main effect of pre-purchase perceptions on customer complaint intentions [Cho et al. 2002; Huang &
Chang 2008; Voorhees & Brady 2005].

The goal of this study is to fill this gap by empirically assessing both the main effect and the interaction effect of customers' pre-purchase perceptions of an
online retailer's quality on online customer complaint intentions (OCCI). We define these intentions as a function of online customers' willingness to
complain when they are not satisfied with products or services provided by online retailers. For pre-purchase perceptions, we focus on signal credibility,
which refers to the honesty of the signals that senders (i.e., the retailers) provide to customers regarding their quality [Connelly et al. 2011]. In the online
market, signals, such as guarantees, brand names, and licensing can reduce retailer quality uncertainty and increase customer trust [Aiken and Boush 2006].
However, untrustworthy retailers will send the same signals to mimic the trustworthy retailers without providing corresponding quality services. In tur n, it
will be hard for customers to distinguish between "trustworthy" and "untrustworthy" online retailers. Customers' decisions whether to trust online retailers
depend on their signal credibility. High signal credibility occurs when customers trust a retailer can provide the service or product as indicated by the signal,
which is sent by the retailer [Wells et al. 2011]. In online retailing, signal credibility reflects a customer's perceived quality of an online retailer [Wells et al. …

https://www.questia.com/library/journal/1P3-3704263181/customers-complaints-in-online-shopping-the-role

Philippines - ECommerceDescribes how widely e-Commerce is used, the primary sectors that sell through e-commerce, and how much product/service in
each sector is sold through e-commerce versus brick-and-mortar retail. Includes what a company needs to know to take advantage of e-commerce in the
local market and , reputable, prominent B2B websites.
Last Published: 7/18/2019

Overview

eCommerce is geared for massive growth but is also facing challenges related to the need for adequate network infrastructure. The rising middle class, high
consumer spending, and a young and vibrant, tech-savvy population is driving eCommerce forward by leaps and bounds. There is pressure from the
Philippine Government for the private telecommunications companies to provide higher bandwidth capacity to the retail market.

Current Market Trends

Filipinos are prolific users of social media. Estimates this year show that there are 76 million active social media users from the Philippines. Of this number,
75 million are on Facebook; 12 million on Twitter, and 4 million are LinkedIn users [1].

There is good reason to be optimistic about eCommerce growth in the Philippines. However, the country also faces the following challenges:

Infrastructure gap: need further improvement on internet speed. According to OOKLA’s Speedtest Global Index, the Philippines fixed broadband internet
speed is 19.28 Mbps on February 2019. This is a 143.74 percent improvement from July 2016’s 7.91 Mbps and puts the Philippines on the 21st in Asia
Pacific for fixed broadband. Mobile broadband speed also improved by 94.35 percent to 14.46 Mbps in February 2019 from 7.44 Mbps in July 2016. This
bumped up the Philippines ranking to 23rd in Asia Pacific in mobile broadband.[2]

Most internet users gain access through smartphones. Smartphone penetration is now at 48.4 percent of households[3].

Low Broadband Penetration: Many Filipinos access the web through internet cafés and their workplace.

Low digital payment penetration: Bangko Sentral ng Pilipinas (BSP) in a 2018 report shows that an estimated 66 percent of Filipinos do not use banks and
about eight percent use credit cards . Hence, online stores in the Philippines provide cash on delivery payment options or payment centers (i.e. 7/11
branches). Different companies such as telcos, banks, and fintech start-ups have rolled out e-wallets to for unbanked populations. Major players include
PayMaya (PLDT), GCash (Globe). The BSP also launched PESONet, a new electronic funds transfer service that enables customers of participating banks, e-
money issuers or mobile money operators to transfer funds in Philippine Peso currency to another customer of other participating banks, e-money issuers
or mobile money operators in the Philippines.

The Philippines is a fast-growing retail e-commerce market and the most popular retail e-commerce platforms include Lazada, Shoppee, Zalora, Ebay, and
Kimstore.[4]

Security concerns: Those who have credit cards are wary of transacting online given the numerous incidents of hacking and poor cybersecurity efforts that
still plague the country. This is why e-commerce platforms have established a cash payment mechanism using large convenience store chains (i.e. 7/11 and
Mini Stop), and local express delivery service (i.e. LBC). Filipino consumers require further education on security measures that can protect their online
transactions. This will establish increased levels of confidence in online banking, purchasing, and selling.

eCommerce Intellectual Property Rights

The Philippines has passed adequate legislation to promote eCommerce; the eCommerce Law, Cybercrime, and Data Privacy Laws. However, enforcement
agencies like the Department of Justice and Philippine National Police, and the local courts are not yet adept to handle cases involving electronic
transactions. The system is simply not yet in place. The National Privacy Commission (NPC) is tasked with implementing the Data Privacy Law, and they
have had significant achievement through Philippine-based companies designating “Data Privacy Officers” or DPOs. The NPC is also leading the way for the
Philippines to be complaint with international privacy agreements such as the European General Data Protection Regulation (GDPR) and APEC Cross Border
Privacy Rules (CBPR).

Popular eCommerce Sites

www.b2bpricenow.com– A trading portal with close to 8,000 members that are mostly from cooperatives. It is officially endorsed by the Philippine
Congress as the Philippine e-Marketplace for Agriculture and Fisheries. This site is a trading portal that provides up to the minute price update on market
information for agriculture, consumer goods, and industrial manufactures.

https://e-order.asiarx.com/– Caters primarily to the pharmaceutical and medical supply industry, has a regional scope, multilingual capabilities, tight real-
time integration with supplier systems, and focus on the customer’s perspective and business processes. AsiaRx takes control of the entire procurement
process from finding the product to availability check, to order status verification.

http://philippines.tradekey.com – A B2B marketplace connecting Filipino exporters with overseas buyers. It connects traders with global wholesalers,
buyers, importers and exporters, manufacturers and distributors in over 240 countries.

www.philippinecompanies.com – A Philippine business directory with 413,282 registered companies. This website builds its database from publicly
accessible directories such as Business Registrations from various municipalities.

http://philippines.tradeford.com – Provides global importers with information on products, exporters, suppliers, manufacturers and wholesalers.
TradeFord's database of buyers and suppliers covers major industries such as apparel, fashion, chemicals, construction, electronics, furniture, food and
beverage, health and beauty, machinery, transportation, and more.

https://www.kenresearch.com – Global industry research and information service company. Provides industry intelligence, equity research reports and
business consulting services covering several sectors.

https://www.olx.ph/ - Global online marketplace open in 45 countries in world used for buying and selling of goods and services.

Online Payment
The increase of online shopping and access to online bank transactions is increasing payment in the Philippines. Vendors are turning to online payment as a
convenient buying method. However, security concerns, and a cash-based society is limiting

Mobile eCommerce

Data from Globe Telecom and the Philippine Long-Distance Telephone Company shows that there are 134.6 million mobile subscribers in the Philippines[5]
[6]. Most Filipinos access the internet through their mobile phones, providing cost effective and consistent access. Philippine and international businesses
sell products and services through mobile that has a direct access to online consumers. The Philippines is the fastest growing app market in Southeast Asia.

Digital Marketing

The proliferation of social media and online platforms directly contributed to the growth of digital marketing. There were 76 million Filipino online users in
2018 and the strong growth trends continue. Traditional marketing companies emerged with new marketing techniques that include social media.
Businesses are continuing to transition to digital marketing to reach an even wider market for potential customers; this is a strong and growing trend[7].

Major Buying Holidays

Consumers in the Philippines traditionally make purchases during the months of November, December, March, April and May. These are the peak months
that employees receive salary bonuses. Businesses offer sales and discounts during these months.

Social Media

Filipinos are prolific users of social media. Estimates this year show that there are 76 million active social media users in the Philippines. Of this number, 75
million use Facebook; 12 million use Twitter, and 4 million are LinkedIn users. The Philippines is recognized as one of the top countries for internet users
worldwide in terms of time spent on social media; 4 hours on mobile and 5.2 hours on desktop and tablet.[8]

https://www.export.gov/article?id=Philippines-ecommerce

Lacson: Protection of online consumers

MICHELLE CATAP LACSON

November 29, 2018

WITH the growing domination of social media and the internet in our lives, a lot of new trends and phenomena have been introduced. One of which is the
growing world of online buying and selling, which now easily happens through Facebook, Instagram, and Twitter.

Unlike the other modes of online shopping using e-commerce portals such as Lazada, Shopee, and Alibaba, online consumers who transact using social
media sites have less protection from fraudulent sellers. In the absence of a legislation which protects the rights of consumers, particularly online shoppers,
people with deceitful minds continue to lurk around and delude innocent people who spend their hard-earned money on goods and services which they do
not get in return.

In a review, customers say that Shopee has the edge over Lazada in terms of the security of purchases since shoppers have control when their payments will
be processed and given to the merchants. In terms of the interface, Shopee also has a better lay-put and user-friendly tools and chatboxes which highly
benefits the consumers. Shopee also has a better review in terms of returns of goods when clients are not satisfied with the delivered items.

Since a lot of people also engage in transactions with online sellers through social media sites, they do not enjoy this kind of protection. Now the question
is, are there laws which protect the rights of online consumers?

In an advisory issued by the Department of Justice Office of Cybercrime dated April 30, 2015, there are three applicable laws that may be used as a means
to safeguard the interests of people who transact with online shopping either e-commerce portals or individual online sellers.

The Cybercrime Prevention Act of 2012 sims to regulate the access to and use of the cyberspace and further provides that “all crimes defined and penalized
by the Revised Penal Code, as amended, and special laws, if committed by, through and with the use of information and communications technologies shall
be covered by the relevant provisions of this Act: Provided, That the penalty to be imposed shall be one (1) degree higher than that provided for by the
Revised Penal Code, as amended, and special laws, as the case may be.”

Likewise, Republic Act No. 7394 or the Consumer Act of the Philippines states that “protection against deceptive, unfair, and conscionable sales acts and
practices” as well as promotes the “promotes the provision of information and education to facilitate sound choice and the proper exercise of rights by the
consumer.”

More so, the Electronic Act of 2000 or RA 8792 aims to facilitate the dealing, transactions, arrangements agreements, contracts and exchanges and storage
of information through the utilization of electronic medium, extends the coverage of RA 7394 to transactions made with the use of electronic medium. At
the same, the Data Privacy Act provides the protection of personal data and information of people when dealing with online sellers.

However, the next question is, are these laws enough to prevent and even track down serial online scammers who have mastered the art of getting away
with their bogus deals and thus leaving trusting customers running after their money?

Sadly, the answer is a big NO. The fact of the matter is, at this time of my writing, my sister is outrageously in pursuit of an online seller via Twitter who did
not deliver the items ordered after the money was already sent.

In fact, on the E-commerce page of the Department of Trade and Industry, it is written there that “the private sector notes that there is a need for the DTI to
issue new policies adjusting to trends happening online. This includes online sales permit approvals where its current 30-day rule may be too long. In
addition, there is a need for this service to start accepting applications online.”
Furthermore, the need for an “online dispute resolution process” is now a pressing need for the scammed consumers as they need to personally appear in
any DTI office. Knowing that buyers and sellers do not usually come from one place, this process is indeed difficult to implement, hence the requisite for an
online mode of action center attending to these kinds of concerns.

On 20 October 2008, the DTI, Department of Health, and Department of Agriculture enacted a joint memorandum circular on consumer protection for e-
commerce transactions. (DTI-DOH-DA Joint Administrative Order (AO) No. 1 - “Rules and Regulations for Consumer Protection in a Transaction Covered by
the Consumer Act of the Philippines (R.A. 7394) through Electronic Means under the E-commerce Act (R.A. 8792)” or the E-Consumer Protection
Guidelines). Part of the guidelines include mandating minimum requirements that e-commerce sites must comply with, e.g., privacy policy, information
about retailer, seller, distributor, products and services, and consumer transaction, including the setting-up of a help desk to internally resolve consumer
complaints.

But still, this is not enough to address the growing number of online fraud and scams that netizens experience. It is really imperative for the DTI to amend
the Consumer Act of the Philippines that will include e-commerce-related provisions. Online sellers need to undergo the same business application process
that ordinary business establishments undergo. This is the only way we can safeguard the rights of the Filipino consumers in this age of digitalization.

https://www.sunstar.com.ph/article/1776481

DOJ warns public on online shopping fraud

by Ina Reformina, ABS-CBN News
Posted at May 01 2015 04:28 PM | Updated as of May 03 2015 01:22 AM

MANILA, Philippines - The Department of Justice (DOJ) warned the public against online fraud amid the increasing use of online transactions.

In a 15-page advisory dated April 29, 2015, the department said "risks, trade malpractices, and operational challenges exist in online shopping in view of the
anonymity being offered by the internet."

"This advisory is issued to inform online shoppers of the risks involved in dealing online, as well as to guide online shopping providers in providing a safe and
secure online shopping environment, in the promotion of consumer welfare."

"It is the policy of the state to protect the interests of the consumer, promote his general welfare, and guard against against deceptive or unfair business
practices, as it recognizes the vital role of information and communications technology, and the importance of an online environment conducive to social
and economic development," the advisory read.

The DOJ said the public must be able to protect themselves against the following when shopping online:

- frauds and scams;

- misleading or deceptive product advertisements;
- difficulty in returns and replacements;
- unexpected Customs dues, transaction costs, and surcharges;
- privacy breaches and abuse of user information; and
- chaotic delivery procedures.

Consumers must be cautious of the following "red flags" of online shopping fraud, the DOJ said. These include the following:

- products are advertised at very low prices compared to other websites;

- online sellers with poor ratings and/or feedback;
- online sellers who ask you to pay by money transfer service or direct to their bank account rather than through the site's preferred payment method;
- websites with no contact details such as a physical address or telephone number; and
- websites with limited or not information about privacy and their terms and conditions of use.

The DOJ enumerated the following "deceptive sales practices" employed by unscrupulous individuals or entities online:

- a consumer product or service has the sponsorship, approval, performance, characteristics, ingredients, accessories, uses, or benefits it does not have;
- a consumer product or service is of a particular standard, quality, grade, style, or model when in fact it is not;
- a consumer product is a new, original or unused, when in fact, it is in a deteriorated, altered, reconditioned, reclaimed or second-hand state;
- a consumer product or service can be supplied in a quantity greater than the supplier intends;
- a specific advantage of a consumer product exists when in fact it does not; and
- the sales act or practice involves or does not involve a warranty, a disclaimer of warranties, particular warranty terms or other rights, remedies or
obligations if the indication is false.

To prevent fraud online, the following must be properly identified and provided for by online sellers and traders:

-Department of Trade and Industry (DTI) and/or Securities and Exchange Commission (SEC) registration;
-name of the owner/proprietor of the retail establishment in case of single proprietorship, and names of directors and other officers in case of a
corporation;
-principal address of the retailer, seller, distributor, supplier or manufacturer, and, when applicable, of offices of agents in the Philippines;
-website, email address or other electronic means of contact, telephone and fax numbers; any relevant local or foreign government registration/license
numbers such as but not limited to the local government unit's permit to operate, taxpayers identification number (TIN), when applicable;
-contact details about any business association or organization membership, when applicable; and representative agent(s) in the Philippines for purposes of
summons.

The DOJ advised the public to protect their computers by installing security software (anti-virus) and update their anti-spyware.

The public is also advised to exercise caution when using public computers for online purchases. It will also greatly help to do research on the background of
suppliers and sellers, including customer feedback on these suppliers.

As for passwords, it is recommended that strong passwords are used in setting up online accounts. Online purchases must also be recorded, and bank,
credit casrd, and store card statements constantly checked for unusual transactions.
The DOJ identified the following laws and issuances applicable in the case of online fraud: the Cybercrime Prevention Act of 2012 (Republic Act No. 10175),
Consumer Act of the Philippines (RA No. 7394), Electronic Commerce Act of 2000 (RA No. 8792), and Administrative Order No. 01, Series of 2008, of the
DTI, Department of Health (DOH), of Department of Agriculture (DA).

https://news.abs-cbn.com/business/05/01/15/doj-warns-public-online-shopping-fraud

Online Shopping Scams Philippines

By BlogPhNet At 7:12 PM 0

SHARE ON FACEBOOK SHARE ON TWITTER

While shopping through web shops or phone apps is very convenient, be in the know about online shopping scams first so you don't end up becoming a
victim of fraud. While most of the tips below are for shoppers, some still apply for sellers too so read on.

Online Shopping Scams Philippines

Online Shopping in the Philippines

Lazada, Shopee, Beauty MNL, Carousell, Zalora, Sephora, eBay, Amazon, Carmudi, Lamudi, Galleon, brand-based online shops and a bunch of other sites
including Facebook or Instagram shops as well as grocery delivery services sprouting here and there definitely proves that e-commerce is now the new way
to shop, even in the Philippines. PayPal's data research cited that about 12.6 million Filipinos do shop over the web.*
Popular brands not only sell through brick and mortar stores but also through their own e-commerce shops online. Even major malls like SM and Robinsons
have their seller page in Lazada along with other known names (called flagship store).
My Experience as an Online Seller
During the heyday of then Sulit.com.ph (now OLX), I've been lucky enough to have profited (a bit) by being a seller through the site so I know it really does
work. I was able to sell items which were not available in the Philippines such as manjakani pills and a scar remover product. The site was also an effective
option to find second hand items or offer some of mine which were no longer used. However, the website had been flooded by scammers at one point
which resulted to lower user experience ratings and eventually its demise.
Fight Scam? Be Ready for Scammers!
Back when Sulit was still up, there used to a be forum where both sellers and buyers can post anything. There were useful resources about spotting scam.
Possible scammers are even flagged through those posts. I was one of those who have been active in the forum. Wrong move.
While it's not wrong to try and do the right thing, it was wrong in the sense that my seller profile can be easily tracked back to my personal information. The
other so-called vigilantes on the site obviously (and smartly let me say) used unidentifiable profiles. So it was easier for scammers to fire back at me. I, who
was, exposing scam was then accused as a scammer. They trolled me all over the web too; getting threats via direct messages. The worst I've experienced
was a phone call with the guy on the other line cursing me. I eventually had to delete my profile there and became more careful with personally identifiable
information (a subtle way to say, "paranoid").
But there's always a bright side to every dark moment. It helped me to be aware of numerous possible scams in online shops. I had since then become
more vigilant about such and stay informed.
Online Shopping Scams Philippines
Here are some of those scenarios which I've seen first hand from my time as a seller. I have personally experienced some while others were based on
accounts posted on the Sulit forum and related Facebook pages/groups. Other cases have recently happened (news clips and other resources). I feel sad
that people can be so smart to come up with such ideas but use it negatively.
Seller to Buyer Scam
A scammer will post the same advertisement through the same shopping network or in another one. They may copy everything including text and images
or just a little bit and adding some of their own copies. The seller's contact information will then be theirs and not the legit seller's. Once an interested
buyer contacts them, they will then contact you pretending to be a buyer. They will pass on the payment information you provide to their buyer. You are
paid but will ship out the item to the scammer, not their buyer. They can even re-sell or use the item without shelling out anything. Here, both the legit
seller and the buyer becomes a victim.
Red flag:
So if a seller provides payment information which don't seem associated to them in anyway, beware! Dig deeper.
If you are the seller in this case, save all buyer conversations so the Site or financial source support can help you later.
Duplicate Ad
In connection to the above, carefully scrutinize the ad to make sure it wasn't copied elsewhere. A quick check option is to highlight the text and just copy
and paste onto a search engine. You can also right click the images and choose "Search Google for Image." If the ad does end up copied elsewhere, see if it's
actually the same shop owner as sellers do operate in various sites. It can also be just a case of innocently copying some facts publicly available about the
product. So one quick check is to ask for a real time snapshot of the item on hand.
Meetup versus Shipping only
Something is fishy if a seller doesn't want to meetup even if they are close to your location. They may come up with excuses like they are out of town and
offers shipping only. Their location may also be too far flung beyond belief. Not discriminating people from Mindanao but the region is often used as
address for those who don't want to meet-up.
If you're a seller, exercise caution when meeting up with a buyer. Ask someone to accompany you. If you're alone, choose a public place where you can
easily scream for help. Bring items which are used for protection too such as a pepper spray. Avoid bringing a lot of cash as well as expensive gadgets too.
Reused or Fake Tracking Codes
In case shipping does become your option, run tracking codes through their appropriate courier website if applicable to double check. It's because
scammers may give made up codes or reuse ones found elsewhere online.
Item Not as Described
No item received is as bad as getting something completely different. This is where COD or Cash on Delivery becomes handy. You have a chance to check
the item right away after paying or before you do so.
I'm still doubting the veracity of videos circulating on Facebook when gadgets ordered from a popular shopping site end up delivered as soap bars or rocks.
Their reaction sounds staged for one. As for me, I've been buying from the said site for years now but haven't come across anything like it. From what I
understand, you need to pay as soon as it's handed; hence, cash on delivery. The delivery guy will not accept the item back anyway even if you open it and
find something wrong. They will just tell you to follow the return/replacement process. Anyway, I never purchase expensive gadgets online.
Asking or Sending IDs
Identification cards don't guarantee anything. For all you know, they could have pretended to be a buyer and asked for a seller's ID or vice-versa (shop
owner to an inquiring shopper).
There is a recent scenario which can better explain this. It's not technically online shopping but the transaction still happened over the web through an
apartment for rent scam. If you follow the thread, the person behind it had used the same trick through an online selling scheme.**
Identity Theft
The previous scenario can lead to identity theft. The guy whose ID was used then became a victim. People who had been conned by someone else using his
information had started to send him threatening PMs.
Fake Social Media Profile
Because of the two previous context in mind, even seemingly legit social media accounts are no guarantee specially if they offer to add you but the profile
they send appears too new or with too little information like friends as well as posts. Back then, it was so easy to create multiple fake accounts. It's at least
better these days when email providers and social network sites (like Facebook) are imposing verification prior to approval to prevent fake profiles. It's still
lacking though because SIM cards are cheap for SMS codes.
In connection to this, it's good practice to Google your name or look it up through social media networks to see if anyone else is using your details. Perform
a reverse lookup on some of your publicly viewable profile photos too. On your browser, just right-click on the image and choose "Search Google for Image"
or anything similar. Note that there are obviously limitations to this search such as when the user has not saved the copied image as "public" or it's not
indexed by searched engines.
PayPal Refund
If you are accepting PayPal payments as a seller, make sure to read the merchant guidelines carefully to protect yourself from fraud. A buyer can become
the scammer by disputing via "Item Not Received or Not as Advertised." On the other hand, the shop may also do the opposite so know how to dispute the
payment.
Credit Card Fraud
Never give out credit or debit card numbers unless it's a trusted site or app. Over the web, the URL should have a secure protocol, "https." Don't save the
information too even if it seems convenient since you regularly shop through the same channel. In case you do, secure the login details by using a strong
password. Don't use one which can be easily guessed like birthdays, names etc. Even people you don't know personally can obtain such details through
social engineering via chat, forum, social media groups and so on.
Fake Bank Deposit
An interested party will send fake bank deposit details and will request to have the money back after they change their mind. It's quite tedious to remember
how much funds you have on your bank account but it will be easier to do so if you separate personal savings to one you use for business. I am not
encouraging everyone to not trust sellers. There is such a thing as "healthy paranoia" where you are still optimistic but still realistic about possible negative
experiences from people.
https://www.blogph.net/2018/09/online-shopping-scams-philippines.html

Buy-and-Sell Scam
As an online shopper, it’s tempting to buy a branded item sold at an unbelievably low price. Some sellers even offer additional discounts. But after you send
the payment, they will disappear into thin air. On the other hand, sellers can be tricked, too. The scammer “overpays” an item using a post-dated check and
asks for the change to be deposited to their account, only later for you find out that they sent a bounced check.The best way to avoid such scams is to shop
and transact as much as possible only on trusted websites and use standard methods of payment like PayPal.
The best way to avoid such scams is to shop and transact as much as possible only on trusted websites and use standard methods of payment like PayPal.
XXXXXXXXXXXXXXXXXXXXXXXXX
Republic of the Philippines
National Police Commission
PHILIPPINE NATIONAL POLICE
ANTI-CYBERCRIME GROUP
Camp BGen Rafael T Crame, Quezon City
E-mail: acg@pnp.gov.ph

ACG-CYBER SECURITY BULLETIN NR 150: UNDERSTANDING THE RISK OF ONLINE SHOPPING SCAMS

The following information was obtained from different cyber security sources for notification to all parties concerned pursuant to the mandate of the
Philippine National Police Anti-Cybercrime Group (PNP ACG) and classified as “Restricted” pursuant to the PNP Regulation 200-012 on Document Security
and Impact Rating as high based on PNP Information Communication Technology (ICT) Security

SUMMARY

As Christmas season is fast approaching, Christmas shoppers should be cautious when looking for gifts online. During and after Christmas, it is noticeable
that there is an increase in number of reports on fake online sellers.

The internet offers convenience which is not available from other shopping outlets. From the comfort of your home, you can search for items from multiple
vendors, compare prices with a few mouse clicks, and make purchases without waiting in line. However, the internet is also convenient for attackers, giving
them multiple ways to access the personal and financial information of unsuspecting shoppers. Attackers who are able to obtain this information may use it
for their own financial gain, either by making purchases themselves or by selling the information to someone else.

Unlike traditional shopping wherein it is actually the store it claims to be, attackers can create malicious websites or email messages that may appear to be
legitimate. Attackers may also misrepresent themselves as charitable entities, especially after natural disasters or during holiday seasons. Attackers create
these malicious sites and email messages to lure the victim to provide personal and financial information.

When you do your online shopping, you will have to provide financial information most likely in the form of the credit card details. No matter how secure a
site may be, it is important to realize that putting credit card information on the internet is inherently risky, therefore, it is important to minimize that risk.
The way to determine the level of security on a website is to search the domain name on a domain search website to check the date creation. Older
websites tend to be more reliable than newly formed ones, which can easily fake online shopping sites that usually deactivates after a short period of time.

No legitimate online shopping website will require information such as your mother's maiden name or your Social Security number. Credit card companies
also do not ask for your password over the Internet or the phone.

An online retailer does not provide adequate information about privacy, terms and conditions of use, dispute resolution or contact details. The seller may
be based overseas, or the seller does not allow payment through a secure payment service such as PayPal or a credit card transaction.

RECOMMENDATION
The public are advised to follow the tips in order to avoid the risk of Online Shopping Scam, to wit:

Look carefully at the domain name to see check if it is the site that you wanted intended to visit;
Check the contact page to find the name of the owner and use a lookup service on the URL to find additional information about the site;
Never send money or give credit card or online account details to anyone you don’t know or trust; and
Never engage in any financial transaction, bitcoin or otherwise, via direct message on social networks.

https://pnpacg.ph/main/cyber-security-bulletin/289-acg-cyber-security-bulletin-no-150-understanding-the-risk-of-online-shopping-scams

Online Shopping Scams

What Are Online Shopping Scams
Online shopping scams involve a scammer using a fake retail website or impersonating a real retail website trying to trick victims into buying from them.
Besides that, the scammer might also use fake online ads on search engines and even real retail websites to lure victims in. Sometimes, they might even set
up a fake social media store too.

Sometimes, scammers also contact the victim by email, sending them links to their fake websites. They might also use malware-infected links too.

Usually, the scammer’s deals are unbelievably generous, and their services always claim to offer overnight shipping and free deliveries. Basically, the
scammer tries to use deals like that to get victims to lower their guard and act on instinct.

Most of the time, the goods offered by the scammer are either not real or sub-par fakes. Furthermore, scammers won’t allow victims to pay with their
credit cards, but will instead try to get them to use:

Direct wire transfers

Prepaid cards
Money orders
Cryptocurrencies
Money-transfer services
On top of that, the scammer might also try to get the victim to share personal and financial details with them – either by having them complete a sign-up
form to finish the order, or by asking them for sensitive bank account info when completing the order. Scammers do this to further expose victims to
identity theft besides just losing money.

Online shopping scams have been increasing in number over the past few years, as more and more people have been getting into this trend. Let’s consider
the following, for example:

https://buffered.com/scam-almanac/online-shopping-scams/
III) Potential Problems:
It is important for consumers to use caution when visiting online shopping websites regularly. The convenience of online shopping could pose a potential
threat to those with addictive personalities.“ I have a serious Amazon habit, and spend far too much each month… since I pay the credit-card account, my
wife has little inkling of just how much I spend” confesses a man (Spencer, 2010). Because of the easy accessibility and simple click of a button to purchase
goods, shopping addictions could be a serious danger of online shopping. This habit can lead to financial and domestic problems in the household.
Making purchases online means consumers will use virtual shopping carts. Online shopping makes picking out items a quick process. It makes picking out
items so quick that consumers have the tendency place more items in their cart than they are capable of paying for. Consumers shopping online exhibit an
odd behavior of abandoning their shopping carts instead of proceeding to checkout. This behavior would be very unlikely to see in a physical store. While
physical shopping carts are used in actual stores with the intent of purchasing the product in the cart immediately, “retailers cannot assume that their
website patrons use their carts to purchase a product immediately” (Close & Kukar-Kinney, 2010). Many online shoppers use their shopping cart as a type of
“wish list”. “They frequently utilize the Internet as a tool for 'window shopping' and product comparison” (Kim & Ammeter, 2008). Shoppers add their items
that they would like to buy and, instead of proceeding to check out, abandoning his or her virtual shopping cart to rethink the possible purchase.
This behavior of abandoning a shopping cart is not seen very often in physical stores. This is a problem very much characteristic of online retail store
consumers. If this problem is not given proper examination and paid attention to, sales profit may decrease quite a bit. Retailers need to study the
differences between online consumer behaviors versus in-store consumer behaviors. It is important for the online retail companies to learn about consumer
behavior so that they can make changes accordingly to increase productivity.