Crackdown on errant online sellers begins
The Department of Trade and Industry (DTI) said it would start issuing takedown orders against online shops that sell illegal goods and services now that the full enforcement of the e-commerce law has begun.
Digital platforms can also be held liable if they fail to act on illicit activities on their sites, DTI said in a statement on Monday. This, as the agency announced that Republic Act No. 11967, or the Internet Transactions Act of 2023, is now in full effect following the end of its transitory period on June 20.
This means that all e-marketplaces and online sellers must disclose the price, brand name, description, condition and the seller’s contact details for all goods and services offered.
At the same time, online-selling platforms must operate “accessible and equitable” consumer redress systems, secure payment methods and robust data protection standards.
The new rules are effective immediately.
“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 (micro, small and medium enterprises) are protected from unfair competition and illicit trade,” Trade Secretary Cristina Roque said.
Under the law, the DTI, through its E-Commerce Bureau, can now issue subpoenas to compel online sellers and platforms under investigation to produce relevant documents. But the department clarified that its authority is only supportive of other regulatory agencies with primary oversight of specific goods or services.
In addition, the DTI said it was developing a “Philippine E-Commerce Trustmark,” which will act as a visible seal of quality for compliant and trustworthy online businesses.
Latest available data showed the number of consumer complaints received by the DTI went up by 3 percent in 2023, with volume hitting a total of 28,824 complaints.
Of these, 31 percent were mediated and adjudicated while 69 percent were endorsed to other appropriate government agencies.
Most of the complaints involved “deceptive, unfair and unconscionable” sales acts and practices, according to the DTI.
