DOTr Implements Tougher Penalties for Misconduct Among Car Dealers and Importers

The Department of Transportation (DOTr) has approved a new set of enhanced penalties for car dealers and importers found guilty of fraud and other misconducts, as recommended by the Land Transportation Office (LTO). This initiative is part of a broader effort to fortify regulations and ensure compliance within the automotive industry.

LTO chief Vigor Mendoza announced that the updated policy includes more severe sanctions for fraudulent activities, particularly in vehicle registration processes. These activities often involve the submission of falsified sales or stock reports, which are crucial for regulatory compliance and market monitoring.

Under the revised rules, entities found committing these offenses for the first time will face a suspension of their Certificate of Accreditation for up to six months, along with a hefty fine of PHP 500,000. Additionally, any related vehicle registrations will be canceled. For a second offense, the punishment escalates to the cancellation of the Certificate of Accreditation and blacklisting from the industry for one year, alongside similar cancellations of vehicle registrations.

Mendoza emphasized the importance of these stricter penalties, noting that they aim to deter the serious offenses that compromise the integrity of the automotive market. He mentioned a specific case involving fraudulent transactions with two Bugatti Chiron vehicles, which highlighted the previous policy’s inadequacies and triggered a comprehensive review.

The updated sanctions also include preventive measures, such as a 90-day suspension following a Show Cause Order, which further underscores the LTO’s commitment to enforcing compliance. Lesser offenses related to non-compliance with standard requirements carry fines ranging from PHP 100,000 to PHP 1 million, depending on the frequency of the violations.

These stringent measures reflect the DOTr’s and LTO’s resolve to uphold standards and protect consumer interests in the automotive sector, bolstered by continuous support from Transportation Secretary Jaime Bautista under President Ferdinand ‘Bongbong’ Marcos Jr.’s administration.