DTI starts crackdown against errant shops

BEHIND THE SCENES

Alfred P. Dizon

The Department of Trade and Industry in the Cordillera has started a crackdown against erring entrepreneurs for not accrediting their establishments in violation of the Consumer Act.

A DTI advisory said at least eight shops are issued notices for violation of the Act in Baguio and Benguet area annually and these have yielded an average of P25,000 in fines every year. 

With heightened monitoring activities of the DTI provincial offices, these figures are expected to correspondingly increase, the advisory said.

The DTI would be taking a tougher stance against repair shops that do not comply with accreditation laws.

The advisory said those engaged in automobile and appliance repair are required to accredit their shops in accordance with Presidential Decree 1572 and Chapter VII, Title III of Republic Act 7394, or the Consumer Act of the Philippines. 

The law focuses on enterprises engaged in service and repair of motor vehicles, heavy equipment, engines and engineering works, electronics, electrical, air conditioning and refrigeration, office machines and data processing equipment, medical and dental equipment and other consumer mechanical and industrial equipment, appliances or devices.

Accreditation is deemed an important measure in safeguarding the interest of the public against unethical, unfair and incompetent practices of service and repair enterprises. 

Likewise, the advisory said, through accreditation, the reputation and good name of reliable and competent service and repair facilities are protected and distinguished from shops that provide poor or shoddy work.  Lastly, accreditation encourages enterprises to keep abreast with the latest available technology, and compels repair technicians to professionalize their industry and establish ethical standards based on competence and discipline.

There are reportedly over 240 accredited enterprises in the Cordillera Administrative Region.

However, this is significantly less than half of all shops engaged in repair and engineering work.

This means consumers are very likely to encounter a questionable shop at least once in their lifetime.

“Consumers are at a disadvantage when they go to an unaccredited shop,” said lawyer Samuel D. Gallardo of the DTI’s Consumer Welfare and Business Regulation Division.  “Repairs may prove to be more expensive in the long run because or repeat- or back jobs; uncertified technicians may not fully understand the extent of the work needed to restore a product to full working order.  Also, should something happen to the item, causing it to be further damaged or destroyed altogether, the consumer has no guarantee of compensation from the shop.”

DTI provincial offices have reportedly started inspecting repair establishments, and those who have not yet applied for accreditation are required to do so. 

Applicants will have to submit documents that list the tools and machineries, technicians and other personnel of the enterprise, and a description of the shop’s location. 

Apart from these, enterprises will have to submit a copy of an insurance policy and its official receipt covering the property entrusted by customers for repair or service, and a bond for an amount of not less than P20,000.00. 

The bond is intended to guarantee performance of the enterprise.  All requirements are detailed in DTI’s Department Administrative Order No. 3, s. 2006.

Gallardo urged owners to apply for accreditation during the first month of the year, so that they need not pay for late accreditation.  Enterprises that fail or refuse to comply with the laws on accreditation face administrative sanctions that include the payment of fines beginning at P5,000.00, as well as suspension of operations or closure.