PH E-Commerce Law And Liability Rules Now In Full Effect

The Internet Transactions Act of 2023 (ITA), officially known as Republic Act No. 11967 (RA 11967), is now in full effect across the country, covering all digital platforms, online merchants, and consumers, according to the Department of Trade and Industry (DTI).

All e-marketplaces, e-retailers, and online merchants are required by the Act to disclose the price, brand name, description, condition, and seller’s contact details for all goods and services offered.

The Act states: “It is the policy of the State to promote and maintain a robust electronic commerce (e-commerce) environment in the country by building trust between online merchants and online consumers. The State recognizes the value and potential of the digital economy to increase competition and improve productivity.”

It further provides: “[T]he State shall guarantee effective regulation of e-commerce to protect consumer rights and data privacy, encourage innovation, promote competition, secure internet transactions, uphold intellectual property rights, ensure product standards and safety compliance, and observe environmental sustainability.”

RA 11967 applies to “all business-to-business and business-to-consumer internet transactions within the mandate of the DTI, where one of the parties is situated in the Philippines or where the digital platform, e-retailer, or online merchant is availing of the Philippine market and has minimum contacts therein.”

It also declares: “A person who engages in e-commerce, who avails of the Philippine market to the extent of establishing minimum contacts herein, shall be subject to applicable Philippine laws and regulations and cannot evade legal liability in the Philippines despite lack of legal presence in the country.”

All e-marketplaces, e-retailers, and online merchants are required by the Act to disclose the price, brand name, description, condition, and seller’s contact details for all goods and services offered.

Platforms must also operate accessible and equitable consumer redress systems, secure payment methods, and robust data protection protocols.

The DTI is empowered to issue Take Down Orders against online listings involving illegal goods or services and may hold digital platforms solidarily liable with sellers if they fail to act against illicit activities on their sites.

To enforce compliance, the DTI—through its newly created E-Commerce Bureau—may now issue subpoenas to compel individuals and entities under investigation to produce relevant documents.

However, the Department clarified that its authority is ancillary to the primary jurisdiction of other regulatory agencies overseeing specific goods or services.

The law’s strict rules and potential liabilities became fully enforceable following the end of its transitory period on June 20, 2025. Signed into law on December 5, 2023, RA 11967 provided for an 18-month transition period for all affected online merchants, e-retailers, e-marketplaces, and digital platforms to comply with its requirements.

DTI Secretary Cristina A. Roque emphasized, “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.”

She added that the new law is supported by Joint Administrative Order No. 24-03, its Implementing Rules and Regulations (IRR), which were issued on May 24, 2024.

The IRR were jointly developed by the DTI, the Department of Information and Communications Technology (DICT), the Department of Agriculture (DA), the Department of Health (DOH), the Bangko Sentral ng Pilipinas (BSP), and the National Privacy Commission (NPC).

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Roque also revealed that the DTI is developing a Philippine E-Commerce Trustmark, which will serve as a visible seal of quality for compliant and trustworthy online businesses.