The Department of Trade and Industry (DTI) is now empowered to enforce stricter compliance and impose potential liabilities on digital platforms and online sellers, whether local or foreign, following the full enforcement of the law aimed at strengthening safety measures in the e-commerce space.

In a statement, the DTI confirmed that Republic Act (RA) No. 11967 or the Internet Transactions Act (ITA) is now in full effect after the end of its transitory period on Friday, June 20.

Enacted in December 2023, the law established an 18-month transition period to provide all affected online merchants, e-retailers, e-marketplaces, and digital platforms sufficient time to comply.

This covers both domestic and foreign entities that sell on the Philippine market and have a legal presence in the country.

With its full implementation underway, the DTI stated that this will empower the agency to issue takedown orders against online listings for illicit goods or services.

Online platforms will be held solidarily liable alongside sellers if they fail to act on the illegal activities.

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, said DTI Secretary Cristina Roque.

Under the law, online marketplaces and sellers are now required to disclose the price, brand name, description, condition, and the seller's contact details for all goods and services offered.

Platforms are also required to implement consumer redress systems, robust data protection standards, and secure payment methods.

The DTI has directed its E-Commerce Bureau (ECB), which was established under the ITA, to issue subpoenas that compel individuals and entities to submit documents relevant to investigations.

“The department clarified, however, that its authority is ancillary to the primary jurisdiction of other regulatory agencies over specific goods or services,” it said.

Supported by its implementing rules and regulations signed last year, the ITA authorized the ECB to establish an online business registry that will allow consumers access to information about businesses selling online.

This will essentially provide consumers with the necessary information to determine if the seller and their products are legitimate.

Section 16 of the ITA stated that the DTI Secretary shall have the authority to establish a “blacklist” of digital platforms that fail to comply with a compliance order or are subject to a takedown order.

The DTI will remove the entry from the list after compliance or correction, without the need of a hearing.

Online sellers and digital platforms that engage in illegal practices or ignore takedown orders will face administrative fines ranging from ₱5,000 to ₱1 million, depending on the violation and value of the goods or services involved.

Further, the DTI’s ECB shall also push for the establishment of the Philippine E-Commerce Trustmark that will act as a visible seal for compliant and trustworthy online businesses.

The DTI said the trustmark is now in its development phase after it gathered public and stakeholder feedback on the matter last month.