Giant beauty care products company RDL Pharmaceutical is readying a P200 million damage suit against a woman and her company alleged to have been faking RDL products for more than three years.
This developed as the Davao City Police Office on Saturday confiscated hundreds of cartons of beauty soap bars with fake RDL labels during a raid on the house of Elenita Labrador, alleged operator of Cassea Pharmaceutical.
RDL said Labrador’s firm produced the soap and labeled it with RDL brands in violation of the Intellectual Property Rights Act (IPR) and the trademark and patent laws.
Evelyn Elemino, RDL executive vice president, said the suit would not only involve unfair trade practices and IPR violations but also for damage caused by Labrador to the company.
The Davao City-based RDL, headed by Leonora Lim started as a small-scale industry in the 80s, is now a major producer and exporter of top-selling beauty care products with large market in China, Middle East, US, Europe and the Asian countries.
The 100% Filipino-owned company had been conferred the National Consumers Quality Awards by the National Consumers Affairs Foundation as one of the country’s Outstanding Achievers.
We have a well-guarded reputation that has been damaged badly, said Elemino, saying the fake products meant not only loses to the company in the millions of pesos but also damage to its name as one of the country’s trusted producer of beauty products.
The police Heinous Crime Investigation Section (HCIS) found the fake products in the house of Labrador in Lot 3 and 4 in Kristine Village in Lubogan, Toril during the raid backed by a search warrant issued by a Davao City regional trial court.
Elemino said the raid ended a four-year independent surveillance by RDL in wake of tips in 2004 that Labrador had been selling her soap and astringent line as RDL products.
This started when our foreign dealers in Indonesia and Malaysia reported about fake RDL products and buyers complaining about the poor quality, said Elemino.
We made a tracer and discovered that the fake products, produced in Davao City, were packed with fake RDL packaging in Zamboanga City and then shipped to Indonesia and Malaysia, said Elemino.
Elemino said fake RDL products were also subject of consumers’ complaints in the Middle East and China, with Davao City established as the source of these fakes.
The RDL executive said the damage suit would be filed against Labrador after police would have fled charges against her and her company, which has a plant in Panacan in Davao City.