DTI Enforces Internet Transactions Act, Imposing New Rules and Liabilities on Online Markets

Manila: The Department of Trade and Industry (DTI) announced the full enforcement of the Internet Transactions Act of 2023 (ITA), which came into effect after its transitory period ended on June 20. This move introduces strict regulations and potential liabilities for all online merchants and digital platforms in the Philippines.

According to Philippines News Agency, the DTI now has the authority to issue takedown orders against online listings that offer illegal goods or services. Digital platforms may also be held jointly liable with sellers if they fail to address illicit activities on their sites. This step is part of a broader effort to ensure safety and fairness in online commerce.

As of now, e-marketplaces, e-retailers, and online merchants are required to provide detailed information about the goods and services they offer, including price, brand name, description, condition, and the seller's contact details. Additionally, platforms must establish accessible consumer redress systems, secure payment methods, and adhere to stringent data protection standards.

Trade Secretary Cristina Roque stated, "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." She emphasized that the goal is to provide consumers with peace of mind while protecting legitimate local entrepreneurs and MSMEs from unfair competition.

To ensure compliance, the DTI, through its E-Commerce Bureau, now has the power to issue subpoenas that require individuals and entities under investigation to present relevant documents. However, the department's authority is supplementary to the primary jurisdiction of other regulatory agencies concerning specific goods or services.

The law is further supported by Joint Administrative Order No. 24-03, which contains the Implementing Rules and Regulations (IRR) issued on May 24, 2024. The IRR was collaboratively 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.

The DTI is also working on creating a Philippine E-Commerce Trustmark to serve as a seal of quality for compliant and trustworthy online businesses.