Thursday, September 11, 2025

Internet Transactions Act takes effect

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THE Internet Transactions Act (ITA), which sets strict new rules and potential liabilities on deals transacted online, is now in effect following the end of the transitory provision on June 20, the Department of Trade and Industry (DTI) said in a statement on Monday.

A separate notice issued by the DTI on June 21, 2025 said online sellers, digital platforms, and other e-commerce players must now ensure full compliance to continue operating legally and responsibly.

In the statement, the DTI said ITA or Republic Act No. 11967 (RA 11967) makes new rules and liabilities immediately enforceable for all online merchants and digital platforms.

The DTI said the act empowers the DTI to issue takedown orders against online listings for illegal goods or services. Digital platforms can also be held liable together 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, it added.

Under RA 11967, platforms must operate accessible and equitable consumer redress systems, secure payment methods, and robust data protection standards.

Based on the law, the DTI’s E-Commerce Bureau is empowered to issue subpoenas that compel individuals and entities under investigation to produce relevant documents. The DTI’s authority is ancillary to the primary jurisdiction of other regulatory agencies over specific goods or services, the law provides.

The DTI is also developing a Philippine e-commerce trustmark, which will be a visible seal of quality for compliant and trustworthy online businesses.

A voluntary mark of compliance with e-commerce policies, the Trustmark has been designed to build consumer confidence and promote adherence to standards in e-commerce by fostering a culture of trust and voluntary compliance with consumer protection policies.

RA 11967, signed into Dec. 5, 2023, provides an 18-month transition period from the date of effectivity to allow online merchants, e-retailers, e-marketplaces, and digital platforms sufficient opportunity to adapt to the new regulations.

“In line with President (Ferdinand) Marcos (Jr)’s 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,” DTI 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,” she added.

Lazada Philippines Chief Executive Officer Carlos Barrera said the company remains committed to partnering with the DTI on matters of e-commerce policy and regulation, and providing a safe and trusted online shopping experience for Filipino consumers.

“Building on our close collaboration with the DTI on the development of the Internet Transactions Act of 2023 (Republic Act No. 11967), we fully support its implementation and are working

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