Republic Act 11967 (RA11967), or the Internet Transactions Act of 2023 (ITA), is now in full effect following the end of its transitory period on 20 June, making strict new rules and potential liabilities immediately enforceable for all online merchants and digital platforms, according to the Department of Trade and Industry (DTI).
The ITA is a new law that aims to protect both online consumers and sellers by establishing clear rules for online selling.
This law outlines the responsibilities of e-commerce platforms, online sellers and online customers for a safe, secure, and enjoyable online shopping experience.
According to the DTI, the law empowers them to issue takedown orders against online listings for illegal goods or services.
Digital platforms can also be held solidarily liable with sellers for violations if they fail to act on illicit activities on their sites.
Effective immediately, all e-marketplaces, e-retailers and online merchants must disclose the price, brand name, description, condition and the seller’s contact details for all goods and services offered.
Furthermore, platforms must operate accessible and equitable consumer redress systems, secure payment methods, and robust data protection standards.
Inclusive environment
“In line with President Marcos’ directive to build a safe and inclusive digital economy, the full implementation of the Internet Transactions Act is a promise fulfilled to the Filipino people,” Secretary Cristina Roque said.
“Our goal is to give every Filipino consumer peace of mind when they shop online, while ensuring that our thousands of legitimate local entrepreneurs and MSMEs are protected from unfair competition and illicit trade,” the trade chief added.
To enforce compliance, the DTI, through its E-Commerce Bureau, can now issue subpoenas that compel individuals and entities under investigation to produce relevant documents. The Department clarified, however, that its authority is ancillary to the primary jurisdiction of other regulatory agencies over specific goods or services.
The law is supported by Joint Administrative Order No. 24-03, along with its Implementing Rules and Regulations (IRR), which were issued on 24 May 2024.
The IRR was jointly developed by the DTI, the departments of Information and Communications Technology, Agriculture and Health, along with the Bangko Sentral ng Pilipinas and the National Privacy Commission.
In addition, the DTI is developing a Philippine E-Commerce Trustmark, which will act as a visible seal of quality for compliant and trustworthy online businesses.