The local unit of Singapore-based e-commerce giant Shopee is rolling out proactive measures to ensure full compliance by sellers on its platform with the law cracking down on illegal activity in online shopping.

In a statement to Manila Bulletin, Shopee Philippines said it will maintain its longstanding cooperation with the government to implement the Internet Transactions Act (ITA) across its platform.

“We have been taking proactive steps to ensure full compliance with the law’s key requirements,” it said.

The Department of Trade and Industry (DTI) announced earlier that the ITA, embodied under Republic Act (RA) No. 11967, is now in full effect after the end of its 18-month transition period.

Through 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.

The DTI, the lead agency overseeing its implementation, is now able to issue takedown orders against online listings for illicit goods or services.

Digital platforms such as Shopee will be held solidarily or jointly liable alongside sellers if they fail to act on these illegal activities.

With these new policies, Shopee Philippines said it has been informing its sellers about the platform’s updated guidelines through its Seller Education Hub website to assist them in complying with the law.

Based on information provided under Seller Education Hub, items prohibited for sale include listings for services, digital products or services that are instantly accessible or redeemable, weapons, cigarettes, wildlife, and wood bleach products, among others.

Under the platform’s policies, listing items prohibited for sale equates to a severe listing violation, leading to a listing removal and a potential account freeze.

The company said, in accordance with the ITA, sellers must also have the necessary permits to sell products that are regulated by law, such as medicine, consumer electronics, food and beverages, alcohol, and pet food.

With the law’s introduction of a more detailed product listing, Shopee is asking merchants to abide by the proper listing policy, or they may face reduced seller privileges, account suspension, or even termination if they accumulate a high number of penalties.

“We welcome the DTI’s implementation of the ITA as a meaningful step towards building a safer and more transparent e-commerce environment,” Shopee Philippines said.

Shopee Philippines stated that the e-commerce space should empower Filipino consumers while also safeguarding sellers who place their trust in the platform.

Under the ITA, 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.

A provision of the law 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. Upon compliance or correction, the agency will remove the entry from the list without the necessity of a hearing.