LTFRB cracks down on use of private vehicles for logistics services for online marketplaces

MANILA: The Land Transportation Franchising and Regulatory Board (LTFRB) has warned owners of private vehicles against having their units used for transport and logistics services for online marketplaces without the necessary permits.

The agency issued the warning following an investigation prompted by concerns raised by operators over the alleged illegal use of private trucks and vans to provide services for online shopping platforms. 

“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 Atty. Greg Pua Jr. was quoted as saying. 

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Colorum operations 

He said such activities are considered “colorum” operations and are unfair to legitimate operators who comply with regulatory requirements.

In response, the LTFRB’s law enforcement unit is intensifying its anti-colorum initiatives, particularly against those engaged in unauthorized truck-for-hire services catering to online marketplaces and shopping platforms. 

Aside from regulation, Pua explained that a certificate of public convenience (CPC) or other valid authority issued by the LTFRB is also intended to ensure road safety, as vehicles used for such purposes are subject to roadworthiness inspections. 

Those caught providing unauthorized services face a fine of P200,000 per unit, as well as the impounding of their vehicles.

Pua also noted that, under the Public Service Act, as amended by Republic Act No. 11659, such operations are subject to ownership and control requirements involving Filipino citizens, in accordance with the constitutional restriction limiting foreign ownership to 40 percent.

Violators may face imprisonment of six years and one day to 12 years, or a fine of up to P2 million, for noncompliance with the applicable requirements. 

“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. 

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