Filipino consumers and Procter and Gamble Philippines Inc. signed a mediation agreement to amicably settle a case filed before the Department of Trade and Industry’s Fair Trade Enforcement Bureau (FTEB) for alleged false or misleading advertisements and dangerous plastic packaging.
The mediation agreement put to rest the complaint for alleged violation of Republic Act No. 7394 or the Consumer Act of the Philippines.
The complaint against consumer goods manufacturer P&G stemmed from alleged false or misleading recyclable labels the company uses in the packaging of its products.
The consumers said in their complaint they were misled by the labels of the products’ packaging’s recyclability, as plastics used for consumer goods are single-use plastic that ends up in water bodies impacting the economy, and the health and well-being of people in coastal communities.
P&G said that during the mediation, respondents were able to address the claims of the complainants to their satisfaction and the parties agreed to amicably settle the case for the complainants to withdraw the complaint subject to certain conditions.
Part of the terms and conditions of the agreement is the symbolic and “goodwill” refund of the purchase price of the product which is the subject of the complaint against P&G.
The respondents will review recommended improvements on recycling labels based on the complainants’ suggestions.
While the respondents will have sole discretion to implement or not the recommended improvements, the complainants reserve the right to take appropriate action should the concern remain unaddressed despite completion of exhausting open communication between the parties.
Under the agreement, the parties will endeavor to maintain open communication and undertake bi-annual closed-door meetings within the year, to hear the complainants’ environmentally sustainable solutions to reduce plastic and promote reuse and refill packaging.
Lawyer Zelda Soriano of Community Legal Help and Public Interest Centre, representing the consumers, said of the seven respondent companies in the case that was filed before the FTEB in November 2022, only P&G offered to sit down and dialogue with the complainants which was “a responsible corporate behavior”.
This is the second agreement signed by P&G with consumers that have similar complaints.