Enacting consumer protection laws
THE proposed Financial Consumer Protection (FCP) Act has been pending in the House of Representatives for almost two years. Known as House Bill (HB) No. 6143, it was filed in February 2020 by Quirino Rep. Junie Cua, chairman of the House Committee on Banks and Financial Intermediaries. The bill seeks to provide government financial regulators with additional powers to protect the interest of consumers amid the growing complexity of financial products and services.
Throwing its support behind the FCP bill’s passage is the Financial Executives Institute of the Philippines (FINEX), which has called for the immediate enactment of HB 6143 to strengthen the country’s financial ecosystem. FINEX President Francis Lim said: “Reality has shown how financial products, including services accessed through digital channels, are susceptible to fraud or used for fraudulent purposes.”
Hopefully the FCP Act won’t suffer the fate of numerous bills seeking the regulation of the domestic liquefied petroleum gas (LPG) industry. Republic Act (RA) No. 11592 or the LPG Industry Regulation Act was finally enacted this month under the 18th Congress – 18 years after it was first proposed in 2003 during the 12th Congress.
RA 11592 mandates the Department of Energy (DoE) to enforce the new law and prepare the LPG Industry Development Plan in consultation with private and public stakeholders. This long-term plan is aimed at ensuring that LPG supply levels will meet demand and it shall then be integrated into the Philippine Energy Plan.
One of RA 11592’s pertinent provisions is the establishment of the LPG cylinder exchange and swapping program to ensure the quality of all cylinders in circulation with the goal of protecting the end-consumers. Another provision is the exclusive authority granted to the DoE in issuing licenses to operate for every activity to be engaged in by LPG industry players.
Now that this growing sub-sector of the economy’s downstream petroleum sector will be properly regulated, the welfare of consumers against business malpractices shall be bolstered and their safety ensured in the wake of recent LPG-related accidents.
INPLAY MAKES WAVES
In 2020, the Philippines became the only jurisdiction in Asia to allow online gaming for locals via the so-called PIGO or Philipine Inland Gaming Operator license. The government’s change of heart was attributed to the double whammy brought about by rampant illegal gambling and the COVID-19 crisis. Last year, gross gaming revenue (GGR) of the country’s casino industry plunged 90% to $25.8 million from the 2019 GGR level of $250.8 million.
Through its InPlay.ph unit, Philippine Stock Exchange (PSE)-listed DFNN, Inc. was awarded the first PIGO license by the Philippine Amusement and Gaming Corp. (PAGCOR). DFNN recently disclosed that revenue from Inplay has been on an upward trajectory since its launch in November.
This developed after the government sought ways to recoup lost revenues from the shutdown of the casino industry and the exit of Philippine Offshore Gaming Operators or POGOs that mostly catered to the mainland Chinese market.
Starting last June, PAGCOR has allowed the mass market to register and play online. This marked a major step forward in the development of the industry as it opened up to a wider player base.
DFNN President and CEO Calvin Lim revealed in a recent media interview: “The whole mass market that we’re supposed to target are not your VIP players, so the regulator was very fast in recognizing that.”
As a result, gross bets on the company’s InPlay platform jumped 64.6% to P1.4 billion in the third quarter of 2021 while consolidated GGR for the first three quarters amounted to P269.3 million, fueled by pandemic lockdowns in the Philippines.
However, as lockdown measures ease and more brick-and-mortar gaming outlets reopen, DFNN anticipates that its revenue from these land-based outlets will start to improve. Thus, its consolidated GGR at end-2021 is seen to be positive for the first time since March 2020.
J. Albert Gamboa is the chief finance officer of Asian Center for Legal Excellence and co-chairman of the FINEX Week Committee. The opinion expressed herein does not necessarily reflect the views of these institutions and BusinessWorld.
