Following the series of supply and price monitoring of N95 and surgical masks, DTI caught 18 retail establishments overpricing these essential products. Notices of violations were initially issued to give due process. With insufficient explanations, DTI proceeded with the filing of charges that imposed penalties of up to P300,000 per store.
The recent eruption of Taal Volcano on January 12, 2020 which affected not only CALABARZON but surrounding areas including Metro Manila, the Department of Trade and Industry (DTI) received reports on alleged overpricing of face masks such as N95, surgical, and other similar masks by some establishments.
Secretary Ramon M. Lopez ordered the Fair Trade Enforcement Bureau (FTEB) to immediately conduct prices and supply monitoring of the above-mentioned products. The following days, 13-14 January 2020, enforcement activities were conducted in Bambang, Manila covering seventeen (17) establishments, twelve (12) of which were issued Notices of Violation (NOVs) pursuant to the Consumer Act of the Philippines or Republic Act No. 7394.
FTEB conducted another round of enforcement activities on January 15, 2020 and reports showed that another six (6) establishments were issued NOVs for overpricing. FTEB also reported that prices of N95 masks jumped from Php 50.00 up to Php 180.00 per piece and most establishments monitored were claiming that those products were already sold-out due to the increased demand.
All 18 establishments with NOVs were asked to submit their explanation within 48 hours from receipt thereof. Upon finding the explanations to be not acceptable, the NOVs ripened to Formal Charges against the erring establishments citing Article 52 of Consumer Act particularly for selling N95 at an Unfair or Unconscionable price and for taking advantage of the situation.
Trade Secretary Ramon Lopez warns establishments against taking advantage of the high demand by raising their price excess of the true worth of the said products. He also added that the aforementioned establishments will face an administrative penalty of up to Php 300,000.00 depending on the gravity of the offense.
For further inquiries, clarifications, and/or complaints, consumers may immediately connect through Consumer Care hotline at 1-DTI (1-384) or may email at consumercare@dti.gov.ph.
The Department of Trade and Industry (DTI) and the Management Association of the Philippines (MAP) are teaming up to get more local government units (LGUs) to join the Cities and Municipalities Competitiveness Index (CMCI). The CMCI is an annual ranking of cities and municipalities based on Economic Dynamism, Government Efficiency, Infrastructure, and Resiliency. Through a Memorandum of Understanding signed last 16 January, the MAP will participate in the CMCI annual ranking of LGUs and will conduct regional, provincial, and local seminars and forums with the DTI. Trade Secretary Ramon Lopez (2nd from L:) said that achieving ease of doing business nationwide takes a whole-of-nation approach and thanked the MAP for lending their expertise to the cause. He also urged more LGUs to work on increasing their CMCI rankings to attract more trade and investments in their localities. In the photo are from (L to R:) DTI Undersecretary Rowel Barba, Sec. Lopez, MAP President Francisco Ed Lim, and MAP Governor Amando Tetangco, Jr.
MAKATI – Department of Trade and Industry (DTI) Secretary and Board of Investments (BOI) Chairman Ramon Lopez assured the public that there will be a constant supply of N95 face masks and N88 surgical masks in the market with the help of the sole local manufacturer of medical masks, Medtecs International Corporation Limited.
“The public should not worry as DTI is working to ensure the supply of reasonably-priced N95 face masks will be made available to the public to protect them from the ashfall generated by the Taal Volcano eruption,” said Trade Secretary Lopez.
Sec. Lopez and DTI Undersecretary and BOI Managing Head Ceferino S. Rodolfo met with Medtecs after the company gave 2,000 pieces of FFP2-N95 face masks and 100,000 pieces of N88 surgical face masks for donation to affected areas in Region IV-A through the DTI regional offices.
Medtecs confirmed they will be supplied with 400,000 more pieces of FFP2-N95 face masks from their mother company abroad by next week. They also have two million pieces of N88 surgical masks available and ready for disposal, which are being produced from their plant in Bataan.
Sec. Lopez thanked Medtecs—a healthcare product and services provider that sells a wide range of medical products in the US, Europe, and the Asia Pacific region, and is the sole manufacturer of medical face masks in the Philippines—for helping during the crisis. Medtecs has already donated a total of 12,000 FFP2-N95 face masks and 500,000 N88 surgical masks for those affected by the volcano eruption.
“While we are conducting price monitoring operations to certify that there is no overpricing of medical face masks, we are safeguarding the production of critical products needed to address the calamity through a program of incentives in the 2020 Investments Priorities Plan as well,” Sec. Lopez added.
Medtecs Chief Financial Officer and Director Wilfrido C. Rodriguez gave their commitment to supply the needed medical masks in the wake of the recent Taal Volcano eruption and said they can produce bulk orders. They also said they have not increased their prices with the FFP2-N95 face masks still available for purchase at the Suggested Retail Price (SRP) of Php60 via their hotline number (632) 8817-9000.
Drug and medical stores committed to the Department of Trade and Industry (DTI) that they will not increase their prices for N95, surgical, and other similar masks as the country faces the effects of the phreatic eruption of Taal Volcano which happened last Sunday, 12 January 2020.
Upon receipt of public reports about the rampant selling of overpriced medical masks in the market, the DTI immediately mobilized monitoring teams in the affected areas of Cavite, Laguna, Batangas, Quezon, and Metro Manila to monitor the prices and supply of said products, including those goods classified as basic necessities and prime commodities.
Monitoring reports revealed that N95 masks are sold at PHP 120 up to PHP 150 per piece while surgical masks that were priced at PHP 1.00 per piece were sold at PHP 4.00 per piece after the Taal eruption. These were mostly sold out due to an increase in public demand as ashfall enveloped nearby cities and provinces surrounding Taal.
“While we recognize that the N95, surgical, and other similar masks as medical supplies are under the jurisdiction of the Department of Health (DOH), the DTI readily dispersed its teams to monitor the prices and supply of these masks to assist the DOH and the consumers. As the Health Department, we understand that its utmost priority is ensuring the lives and health safety of those who are affected by the phreatic eruption. Market surveillance and monitoring is the best form of immediate assistance that the DTI can provide. As the President constantly underscores, A whole-of-government approach is highly necessary and called for especially during times of calamities and disasters,” says DTI Secretary Ramon M. Lopez.
The DTI further clarifies that these masks are neither classified as basic nor prime good under the Price Act. Therefore, these have no Suggested Retail Prices (SRPs) and were never part of the list of products being monitored by the DOH or any of the implementing agencies of the said law.
However, the Price Act provides that the National Price Coordinating Council (NPCC) in which the DTI and DOH are part of, can recommend to the President the inclusion of these masks in the list of basic or prime goods. When approved, the NPCC through the recommendation of the DOH and consultation with relevant stakeholders can set an SRP, if found necessary.
Since stocks of the medical masks are depleted, the DTI talked with local suppliers and major drug store chains such as Mercury Drug, Watsons, and Southstar Drug, to ensure that they immediately restock and ensure constant availability of supply in their branches, especially those located in the affected areas.
At the interim, current inventory in their branches and warehouses in non-affected areas will be distributed to their stores in CALABARZON and Metro Manila while waiting for the arrival of new stocks. Foreign suppliers were also contacted by the DTI to immediately send stocks to the country.
In an earlier advisory, the DTI reminds the retailers to refrain from unreasonably increasing the prices of N95, surgical, and other similar masks. Prices of manufactured basic and prime goods shall likewise remain unchanged as of the published 30 September 2019 DTI Suggested Retail Price Bulletin.
Those found to have committed profiteering or any form of illegal act will be filed with appropriate administrative and criminal charges and will be dealt with the fullest extent of the law.
Report overpricing and any other illegal act of price manipulation through the One-DTI (1-384) Hotline or send an email to consumercare@dti.gov.ph.
It has been reported that some retailers have jacked- up their prices of face masks and gas masks, taking advantage of the surge in demand of these products due to the recent eruption of Taal Volcano.
The Department of Trade and Industry hereby issues notice to all retailers that we have dispatched teams to monitor and observe movement of retail prices in the market.
Those found to have unreasonably increased their prices for gas masks, face masks and other similar items, which act is tantamount to profiteering, shall be dealt with to the fullest extent of the law.
Prices of manufactured basic necessities and prime commodities shall likewise remain unchanged as of the published September 30, 2019 DTI Suggested Retail Price Bulletin.
DTI will not hesitate to file administrative and criminal charges against unscrupulous business entities and individuals who capitalize on the consumers’ need for their own profit.
PLEASE BE WARNED ACCORDINGLY.
