Consumer groups disclosed that e-commerce platforms in the Philippines continue to list and sell illicit vapes online in violation of the Vaporized Nicotine and Non-Nicotine Products Regulation Act despite the repeated warnings from the Department of Trade and Industry.
The Nicotine Consumers Union of the Philippines Inc. and the Consumer Choice Philippines asked the DTI to enforce Republic Act No. 11900, or the VNNP Regulation Act, by imposing administrative sanctions or filing court cases against those continuously selling unregistered vapes on their platforms.
NCUP president Antonio Israel said in a letter to Atty. Fhillip Sawali, director of DTI’s Fair Trade Enforcement Bureau on June 21, 2023 that Section 23 of Republic Act No. 11900, or the VNNP Regulation Act, states that online platforms which are non-compliant with the law should be ordered by the agency to immediately suspend trading of such products and should be liable for the fines and penalties imposed under the same section.
“We hope that you will heed our call and act swiftly to protect the public interest and welfare from these illicit online activities by filing the necessary administrative or court cases against these erring online platforms,” Consumer Choice Philippines president Luis Gregorio De La Paz said in a separate letter to FTEB.
Israel said NCUP raised the issue directly with the platforms as early as December 2022 and sent letters to the DTI on Feb. 15, 2023 and March 23, 2023, respectively.
The two consumer groups presented evidence, in the forms of screen shots of illicit vape listings in the two online marketplaces, to support their claims.
The Philippine Medical Association earlier appealed to the Senate and other relevant government agencies to combat illicit cigarettes and vaping products on popular online platforms. The PMA said these products are non-compliant, unregistered and possibly non-tax paid, and that they do not bear the required graphic health warnings, internal revenue stamps or packaging and labeling requirements.
Israel said to validate his group’s claims and monitor compliance by the e-commerce platforms, NCUP regularly checked various sites to determine compliance with the directive of the DTI. “Sad to note, however, that several listings of illicit VNNPs remain available and accessible online,” said Israel, while presenting a compilation of illicit VNNPs advertised and sold online as of June 13, 2023.
“We respectfully reiterate that the continuous violation of e-commerce platforms is a disservice to the Philippine government particularly the Congress which carefully deliberated and enacted the VNNP Law and the DTI–the primary government agency tasked to regulate vaporized nicotine and non-nicotine products,” he said.
He said the illicit VNNPs do not comply with the requirements of the VNNP Law, particularly Section 8 which provides “that the products being sold and advertised online shall be compliant with the health warning requirements indicated herein, as well as other BIR requirements including tax stamp, minimum or floor price or other fiscal marks.”
De La Paz said the online marketplaces were also violating Sec. 83 of the VNPP law because some of their products have no graphic health warnings, were not registered with the Bureau of Internal Revenue based on Revenue Memorandum Circular No. 57-2023 and were posted on websites/platforms without the required signage mandated by the law.
“E-commerce platforms should conduct their own due diligence, perform adequate know-your-client standards, and strictly implement requirements accorded by relevant laws and rules and regulations, especially regarding the sale and distribution of regulated products, for the ultimate protection of the public,” said De La Paz.
“The negative impacts of illicit VNNP go beyond public health concerns. The Philippine government also suffers from significant revenue loss due to the proliferation of these non-compliant products. By cracking down on the sale of illicit VNNP, the government can ensure that legitimate businesses comply with regulations, contribute to the revenue stream, and foster a level playing field in the market,” he said.