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De Castro, other execs fall for sales talk

By Cynthia Balana
Philippine Daily Inquirer
First Posted 18:08:00 07/25/2009

Filed Under: Consumer Issues

MANILA, Philippines -- Even the second-highest official of the land fell victim to sales talk and deceptive advertising.

Vice President Noli de Castro on Saturday warned consumers about the modus operandi of sales agents of AOWA Electronic Phils. Inc. whose products are mostly sold in Home Depot, a chain of appliance and hardware stores.

Speaking on his radio program, ?Para Sa Iyo, Bayan,? De Castro narrated how he and his chief of staff, lawyer Jesse Andres, were recently ?victimized? by AOWA agents when they went out to buy some items ? mirror and compact fluorescent lamp, at the Home Depot branch on Macapagal Avenue in Pasay City, which was just near their office.

When they were about to leave the store, De Castro said gay-speaking sales agents of AOWA rushed to them to give them ?free bags? and offered to give them other free items provided they bought ?hi-tech? microwave oven, all for P48,500.

?Ako, vice president na ha, ang lakas talaga ng loob. Kaharap ko pa si Jesse, abogado iyon. Kami naman ni Jesse, malay namin sa presyo. Hi-tech puwede sa microwave ilagay ang kutsara, paper cups, at pag bumili bibigyan pa daw kami ng kitchen wares na stainless, electric multi cooker and water purifier. May in-offer pang TV. Iyon ang kanilang modus operandi, at babakbakan ka ng sales talk,? De Castro said, as he roared into laughter.

De Castro said he decided to take the offer out of curiosity as he had been hearing about promotions from other stores.

When the agents asked if they had a credit card, he said he and Andres instead decided to make a down payment of P10,000 cash each and asked the agents to drop by the Office of the Vice President for the full payment.

?Nagpapunta nga ang mga tao so may ebidensiya pa against sa kanila kasi may tseke. Tseke ang binayad ko. Tapos nagpa-picture pa sa akin eh public official naman ako,? he said.

De Castro said the agents even showed them their photos with other buyers like Senator Edgardo Angara and former basketball star Alvin Patrimonio.

When they brought home the products, De Castro said they learned that aside from the fact that these were of poor quality, the amount they paid was higher than the actual value of what they took.

?Si Jesse nga ipinagmalaki pa niya sa asawa niya dahil murang mura. Sabi ng asawa niya, naloko ka,? the Vice President said.

De Castro then asked the owners of Home Depot, which has 40 branches nationwide, to stop selling AOWA products to stop victimizing unwitting consumers.

He said he learned that SM department stores did not renew the lease of Home Depot, which started here in 1998, following mounting complaints against AOWA.

Trade Undersecretary Zenaida Maglaya, who was a guest on the program, said that the DTI had in fact issued a closure order against AOWA as early as 2007 for deception and unfair business practice in violation of the Consumers Act.

The company, however, challenged the decision before the Court of Appeals where the case is still pending.

According to Maglaya, most of AOWA?s victims were males, mostly husbands, and senior citizens. Prices ranged from P17,000 to P48,000 depending on the items included in the package offer.

Maglaya also said the DTI started receiving complaints against AOWA in 2001 but some victims later withdrew their complaints after they were given refunds.

She said that the same modus operandi was being used by three other companies - Perfect Health, Homesonic and Arista.

She said the DTI has take out advertisements in major newspapers warning the public about such modus operandi.

De Castro urged other victims of this modus operandi to file their complaints with the DTI and refuse a settlement with the company.

?Kasama pa kami ni Jesse sa complainants diyan at hindi natin titigilan iyan,? the Vice President said.



Copyright 2012 Philippine Daily Inquirer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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