DTI begins full enforcement of e-commerce law, liability rules

The Philippines has begun full enforcement of its landmark Internet Transactions Act of 2023 (RA 11967), placing stricter compliance and liability requirements on digital platforms and online sellers, the Department of Trade and Industry (DTI) said.

Following the end of a six-month transition period on June 20, the law is now fully in effect. It grants the DTI authority to issue takedown orders against online listings of illegal goods and services and allows digital platforms to be held solidarily liable with vendors if they fail to address violations.

“Consumers deserve peace of mind when shopping online, and our local MSMEs deserve protection from unfair and illicit trade practices.”
- Trade Secretary Cristina A. Roque

Full disclosure required

All e-marketplaces, e-retailers, and online merchants are now required to disclose prices, product conditions, brand names, full descriptions, and contact details of sellers. They must also implement secure payment systems, maintain consumer redress mechanisms, and comply with stringent data privacy standards.

“This is a promise fulfilled to the Filipino people,” Trade Secretary Cristina A. Roque said in a statement. “Consumers deserve peace of mind when shopping online, and our local MSMEs deserve protection from unfair and illicit trade practices.”

The DTI’s E-Commerce Bureau is now authorized to issue subpoenas to compel individuals and businesses to submit documents relevant to investigations. The agency clarified that it will coordinate with other regulators, which maintain primary jurisdiction over specific product categories.

E-Commerce Trustmark out soon

The law is backed by Joint Administrative Order No. 24-03, its Implementing Rules and Regulations (IRR), which were released on May 24. The IRR were crafted by the DTI in collaboration with the Department of Information and Communications Technology, Department of Agriculture, Department of Health, Bangko Sentral ng Pilipinas, and the National Privacy Commission.

The DTI is also developing a Philippine E-Commerce Trustmark to serve as a visible badge for compliant and trustworthy online businesses. —Ed: Corrie S. Narisma

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