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Dept. of Trade: “Nothing Wrong With Century Loyalty Scheme”ff

12 January 2010 Philippines

Source: Daily Tribune

There is nothing wrong with Century Tuna’s voluntary loyalty program for dealers and retailers and is therefore not illegal, the Department of Trade and Industry (DTI) had said.

Century’s voluntary loyalty program, according to Trade Undersecretary Zenaida Maglaya, cannot be considered as illegal and unfair since it may be considered a marketing strategy and incentive or reward for loyal retailers.

Maglaya’s statement came as a vindication for Century Tuna, which had been hounded by baseless “unfair trade practices” complaint from new canned tuna player, CDO Foodsphere Inc.

CDO, however, failed to substantiate its accusation against Century Tuna by failing to file a formal complaint with the DTI, Maglaya said.

Century Pacific Group, a pioneer in the local tuna market, currently holds 99 percent of the local canned tuna sector while CDO only entered the market middle of 2009.

Maglaya said the DTI would set a meeting anew between the two canned tuna manufacturers to settle the issue.

“DTI wants to avoid a legal battle between the two companies. We want the market to be open for both of them and we want them to co-exist peacefully,” Maglaya said.

Meanwhile, Century Tuna is studying its option whether to file civil suit against CDO for maligning its reputation in the business industry.

“The company is prepared to respond to this complaint at the proper time and forum,” Carlos Paulo Villaruz, Century Pacific’s lawyer, said.