Lazada considers banning small sellers

As one of the country’s biggest online shopping platform, Lazada is pondering to forbid small sellers along with food and drug vendors following the Senate Panel’s hearing about the sales of fake goods on the app.

On a statement by Lazada Chief Executive Officer Ray Alimurung, he stated that they will probably consider not to allow small retailers and the pharmaceutical category will be removed.

It is also the CEO’s response to Senator Sherwin Gatchalian when he made a remark that dietary supplements are still sold despite being prohibited by the Food and Drug Administration. Gatchalian then added that since it is consumed by the public, it can deteriorate their health while the e-commerce companies are not stopping such immoral activities.

On a report by the Department of Trade and Industry (DTI), online business registrations and complaints surged after the government imposed strict quarantine measures to contain the COVID-19 virus.

According to Trade Secretary Ramon Lopez, there are 73,276 registered electronic trading businesses from March 16 until August 31 compared to 1,756 records from January 1 to March 15. On the other hand, complaints soared 12, 630 as of August from last year’s 2,457.

For now, the council is proposing the Internet Transactions Act which will regulate online proceedings that are supported by the Department of Information and Communications Technology (DICT).  Philippine Competition Commission (PCC) policy officer Faye Condez-de Sagon endorses the measure by asserting that the incentives given to online companies should be expanded to brick and mortar stores.

Aside from the supplements, the Senate Committee on Trade, Commerce and Entrepreneurship also talked about the 900,000 unlicensed items which include Microsoft and Adobe products are sold on Lazada and Shopee.

Optical Media Board (OMB) Chair Anselmo Adriano revealed that 40,000 pieces of unpermitted Universal Serial Bus (USB), memory cards, and other tech items were confiscated with a total amount of Php 20 million. On their defense, Alimurung reiterated that they have an intel property portal and the brand owners are enrolled on it however, there is a possibility that they are not doing enough.

He also added that they have an automated system that can detect those who are blacklisted who are trying to enlist again. Meanwhile, Senator Pia Cayetano uttered that it is unfair to close online companies with illegal goods when physical shops also have it. Additionally, Cayetano said that fake products are available everywhere and we must find a better solution.