The Department of Trade and Industry (DTI) eyes the imposition of administrative penalties ranging from P20,000 to P1 million against online retailers found to have violated the Consumer Act and other trade and industry laws.
The draft implementing rules and regulations (IRR) of the Internet Transactions Act (ITA) of 2023 lays down the liability of online selling platforms on such and other violations.
The ITA vests the DTI secretary with takedown rights of the website or social media page of erring online sellers as well as the blacklisting of those that fail to comply with a compliance order or are subject of a takedown order or of a cease and desist order.
A compliance order is issued to require conformity with the ITA, Consumer Act or any other applicable trade and consumer protection issuances promulgated by the DTI.
Under the draft, online merchants or e-retailers that sell of goods or services, whether digital or not, that are imminently injurious, unsafe, dangerous, or illegally done through the internet shall be punished under the laws.
Those found to be engaged in any deceptive, unfair or 24 unconscionable sales act or practice, done through the internet, shall be, in addition to the penalties imposed under Republic Act No. 7394, meted with fines as well.
The fines start at P20,000 to P100,000 for the first offense; P100,000 to P500,000 for the second offense and P500,000 to P1 million.
Additional fines apply for continuing violations.
ITA calls for the creation of the E-Commerce Bureau which will establish a database of digital platforms, e-marketplaces, e-retailers, and online merchants engaged in e-commerce in the Philippines to determine the legitimacy of these entities.
The Bureau is tasked to formulate policies, plans, and programs to ensure the robust and dynamic development of e-commerce and will receive and refer business and consumer complaints on internet transactions to the appropriate government agency.
The DTI shall develop a platform to facilitate an alternative mode of dispute resolution for online consumers, online merchants, e-retailers, e-marketplaces, and other digital platforms The DTI is currently seeking comments on the draft IRR.