Complaints filed by consumers against transactions conducted online markedly declined by 25 percent last year from 2020 as government started to ease mobility restrictions, online platform systems becoming more efficient, and consumers’ better understanding of e-commerce.

Trade and Industry Undersecretary Ruth Castelo said at the press conference to mark the World Consumer Day celebration on Tuesday, March 15, where the DTI announced the issuance of of Joint Administrative Order (JAO) No. 2022-01, or the Guidelines Reiterating the Laws and Regulations Applicable to Online Businesses and Consumers.

According to Castelo, DTI has received 12,000 complaints in 2021 from 16,000 in 2020, or 4,000 lower than 2020.

Castelo explained that the sharp decline in complaints could be attributed to the fact that online platforms and their merchants were having difficulty delivering orders of consumes during the first year of the pandemic because of the lockdowns that hampered mobility of their personnel.

She noted that online platforms and merchants were not only selling non-essentials but essential goods and grocery items. When the restrictions were eased in 2021, they have more people to run their operations already.

Another reason for the decline, she said is that consumers have already learned their lesson and have adapted to online shopping without much glitch. In addition, online platforms have also become more efficient in their systems enabling them to operate more efficiently.

Of this figure, DTI has endorsed 3,950 cases to other agencies concerned, resolved 807 cases, issued certificate for the filing of charges to 116, and withdrew 71. The top three online platforms with the

most number of complaints were Lazada, Shopee and Zalora because they are also the biggest platforms.

For the first two months this year, Castelo said they have received 2,059 consumer complaints. When asked if they expect to sustain the decline in online transactions, Castelo expressed hope that complaints could further go down. But she also noted that if the average of 1,000 complaints a month is maintained for the rest of the year, the number of complaints would total 12,000 by end of the year.

Under the JAO, which will be published Tuesday, March 15, government agencies shall develop a system to exchange intelligence/information on prohibited and regulated items monitored online, including automatic sharing of information with the appropriate regulatory agency on possible violations detected/discovered. This may include the sharing of and access to a database of products/items containing sufficient information, keywords, content, for the purpose.

DTI Secretary Ramon Lopez said, “Institutionalizing this exchange of information between government agencies is one of the ways by which we can make monitoring of compliance by online sellers more efficient. The DTI e-commerce division shall be tasked to coordinate with both the marketplace platforms and government agencies in setting up this mechanism.”

Online businesses are covered by the Consumer Act of the Philippines, the Philippine Standards Law which provides liabilities in case of defective products, or the Intellectual Property Code for counterfeit and pirated goods. Online sellers need to comply with product and service warranties, labeling requirements including price tag placement.

The Department warns that the practice of providing prices through private (or direct) messages to consumers/buyers is considered a violation of the Price Tag law. Online merchants must exhibit the corresponding permit or license number for regulated items as prescribed by regulatory agencies concerned. Online businesses are not allowed to produce, import, distribute, market, sell or transport goods that are prohibited by law.

Consumers and sellers are reminded that fines and penalties provided under existing laws applicable to brick-and-mortar transactions are applicable to online transactions as well.