The Department of Trade and Industry (DTI) is pushing for the passage of the Internet Transactions Act (ITA) which gives the DTI take down powers on platforms found in violation of the law.
The DTI made his statement in the wake of the surge in the number complaints involving electronic commerce (e-commerce).
In 2022, DTI received a total of 27,947 complaints, of which 44 percent or 12,170 pertains to online transactions. Of the 12,170 complaints, 2,484 were resolved, 9,093 were referred to the appropriate agencies, 394 were withdrawn, and the remaining 199 complainants were issued Certificates to File Action.
The DTI also received complaints about online scams, such as using fake identities to appear as legitimate merchants, unregistered sales promotions, malicious online shopping sites, and pyramiding.
The proposed ITA gives the DTI secretary with the power to issue an order directing that a website, webpage, online application, social media account, or other similar platform, be taken down or made inaccessible in the Philippines for a maximum of 30 days found in violation of the law.
The DTI said ITA aims to build trust between online sellers and consumers. It will place mechanisms to safeguard merchants and consumers as they transact online such as the Online Business Registry (OBR) and the eCommerce Philippine Trustmark. The Trustmark will be given to merchants that uphold the rights of consumers and practice responsible business.
Under the ITA, persons involved in e-commerce who purposely utilize the Philippine market will be considered to be conducting business within the country. Consequently, they will need to adhere to all applicable laws and regulations in the Philippines.
“We need the ITA law passed. We hope its enactment can be fast tracked,” said DTI undersecretary Ruth Castelo.
In 2022, DTI, along with other agencies, issued Joint Administrative Order (JAO) No. 22-01 on “Guidelines for Online Businesses Reiterating the Laws and Regulations Applicable to Online Businesses and Consumers” which aims to increase public trust in e-Commerce and boost consumer confidence in shifting to online shopping.
Through this JAO, online businesses were reminded to comply with rules and regulations on warranties, labeling, and other requirements under existing laws including desisting from selling prohibited items as well as regulated items without the proper approval from concerned regulatory agencies.
Two bills filed in previous Congress – Senate Bill (SB) No. 1591 and SB No. 1808 – propose the enactment of the ITA. The ITA seeks to provide the legal framework for the establishment of safe and dependable platforms where goods and services are transacted online with adequate transparency and greatest efficiency.
