DTI Alerts Bottled Water Manufacturer on High Retail Prices on Their Product

Results of the price monitoring activities conducted by the Department of Trade and Industry-Fair Trade Enforcement Bureau (DTI-FTEB) reveal that some brands of bottled water, particularly one known brand of said commodity, are being sold at very high prices in the NAIA Terminal 3 airport and various bus terminals within the National Capital Region.

According to the FTEB report dated 27 and 30 of October 2014, Nature’s Spring Drinking Water is the most common brand of bottled water that was sold above the Suggested Retail Prices (SRPs), reflecting a P3.10 to P20.10 peso difference when compared with the SRPs.

Other brands include “Absolute”, “Summit”, and “Viva” which were sold at P2.00 to P13.00 above the SRPs.

Due to this, DTI-Consumer Protection Group (CPG) Undersecretary Victorio Mario A. Dimagiba summoned the Philippine Spring Water Resources, Inc. manufacturer of Nature’s Spring Drinking Water for a meeting last Monday, 10 November 2014 to get their explanation regarding the findings of the price monitoring team.

The DTI alerted the said manufacturer about the high retail prices on their bottled water. When asked if they are aware of the imposition of prices by their retailers, Mr. Claugene M. Gener Key Account Specialist of Philippine Spring Water Resources, Inc. said that the company is not aware of this but they will inform their retailers to adhere to the SRPs for bottled water.

“The DTI issued the SRPs for bottled water in February of this year which already includes the mark up of distributors and retailers. As such, there is no reason for them to sell bottled water at very high prices,” Dimagiba said.

“The responsibility of manufacturers does not stop with the production and distribution of goods in the market. They must also ensure that their retailers are complying with the SRPs that they themselves have determined,” he added.

The DTI enjoins all retailers to comply immediately, not just with the SRPs for bottled water but for all basic necessities, prime commodities, and Noche Buena products, to ensure that consumers have access to reasonably priced goods in the market. Consumers, on the other hand, are advised to look for the SRP posters that the DTI has displayed in stores around NCR to be guided in their purchases.

Under Republic Act No. 7581 or the Price Act, penalties for illegal price manipulation such as profiteering include imprisonment of five years up to 15 years, and administrative fine of P5,000 up to P1M.

To get a copy of the list of SRPs for non-agricultural basic necessities and prime commodities, visit the Price Watch section of the DTI website. To report retailers that sell above the SRPs, call DTI Direct 751.3330 or 0917.8343330.

Source: www.dti.gov.ph