LTFRB cracks down on illegal use of private vehicles in truck-for-hire for online marketplaces
The Land Transportation Franchising and Regulatory Board (LTFRB) ordered a crackdown Thursday on private vehicles allegedly being used illegally for truck-for-hire and other logistics services catering to online marketplaces.
The LTFRB warned motor vehicle owners against operating transport, logistics, and delivery services without the necessary permits from the agency.
An LTFRB investigation found that private owners of trucks and vans were allegedly providing transport, logistics, and delivery services to online e-commerce marketplaces and shopping platforms without proper authorization.
“This is a fair warning to all those involved in this modus. We have already started our operations against you in coordination with law enforcement agencies. Your only options so far are to stop or get the necessary permit for your operation,” Acting LTFRB Chairman Greg Pua Jr. said in response to concerns raised by legitimate operators.
Pua said the scheme constitutes colorum operations and is unfair to legitimate operators who comply with regulatory requirements and existing laws.
He said the agency’s Law Enforcement Unit had been directed to intensify its anti-colorum operations nationwide, particularly against private motor vehicles engaged in unauthorized truck-for-hire services for online marketplaces and shopping platforms.
The LTFRB stressed that securing a Certificate of Public Convenience (CPC) or other valid authority from the agency is not only a regulatory requirement but also a road safety measure, as vehicles used for these services are subject to roadworthiness inspections.
The agency said the illegal operations violate Joint Administrative Order No. 2014-01, which provides for the impounding of vehicles and a fine of up to P200,000 per unit.
The LTFRB also cited the Public Service Act, as amended by Republic Act No. 11659, which requires compliance with Filipino ownership and control rules, including the constitutional limit of 60% Filipino ownership and 40% foreign ownership.
Violations carry a penalty of imprisonment of six years and one day to 12 years, a fine of up to P2 million, or both, according to the agency.
“Let us make our country a better place to do business. And it starts with complying with the rules and regulations,” Pua said.
“Otherwise, we will be forced to do it our way, and this means, law enforcement. We in the LTFRB do not want it that way so as much as possible, do your share on this aspect by respecting the existing rules and regulations on this matter,” he added.