NEOPHYTE Senator Raffy Tulfo said it is high time that the Department of Trade and Industry (DTI) go after the so-called “Multi-Level Marketing” (MLM) and networking companies that “scam” and luring Filipinos to enter their bait, victimizing innocent lives.

Tulfo revealed this during the organizational meeting of the Senate Committee on Trade, Commerce and Entrepreneurship, chaired by Sen. Mark Villar, on Monday, August 22, 2022.

Irked by the various reports of scamming, Tulfo expressed his frustration over the failure of the DTI to act on numerous reports of scams reported to him by victims of so-called MLM and networking companies who prey on consumers by promising them exorbitant returns on their investments.

Tulfo challenged the DTI to step up its efforts to scrutinize and regulate fraudulent companies who apply for DTI accreditation to seduce unwitting victims.

According to Tulfo, DTI should look for ways to ensure that these fraudulent multi-level marketing and networking companies would not continue to increase, especially during the pandemic, by promising big bucks or better futures to the Filipino people.

“It’s about time that you ensure that these companies would stop dominating markets, especially online. It is also time that you start coordinating with law enforcement agencies such as the National Bureau of Investigation [NBI], and the Philippine National Police [PNP] and that you all work together to stop these companies from scamming innocent people,” Tulfo said as he pointed out that these scammers multiplied like “mushrooms”.

DTI Undersecretary Ruth Castelo, who was present in the virtual hearing, took note of Tulfo’s recommendation and assured the committee of the agency’s efforts to run after illegitimate MLM companies saying that they are in coordination with the Securities and Exchange Commission (SEC).

Trade Secretary Alfredo Pascual said this revelation of Tulfo will be prioritized by the DTI as he assured that they will launch an education campaign for consumer rights and will find solutions, so they can identify possible fraudulent schemes being initiated by these so-called unscrupulous people.

Meanwhile, Villar asked the DTI to provide a brief overview of the state of the trade and industry in the Philippines and the department’s top legislative priorities.

Pascual asked the Senate to concur with the Philippines’ ratification of the mega trade deal “Regional Comprehensive Economic Partnership” (RCEP), saying it is one of the considerations of foreign investors.

“It is very important, I would like to emphasize that the RCEP—Regional Comprehensive Economic Partnership—be ratified or be confirmed by the Senate because we’ve always been asked by prospective investors, by foreign chambers about how soon they’ll see the ratification of RCEP,” the DTI secretary said.

Pascual informed the committee that companies are asking them about the RCEP ratification before considering investments in the Philippines.

Sen. Pia Cayetano asked the agency if they are considering tax-free importation of certain industry clusters such as health-related enterprises that produce medical equipment in the country.

Pascual said they welcome any move to facilitate the establishment of enterprises from industry clusters that they have identified, explaining that investors are most likely to come from abroad, and the concurrence to the RCEP ratification will be a factor.