The Internet Transactions Act was signed into law on December 5, 2023. In this article, we will list down the obligations imposed by the law on the different parties to an online transaction.
Obligations of Online Consumers. They must exercise ordinary diligence in any internet transactions. If the transactions include delivery of goods, except under certain circumstances, the online consumer must not cancel confirmed orders when the items have already been paid for by, or the goods are perishable in nature and are already in the possession of, a third party delivery service, or otherwise in transit.
Obligations of E-Marketplaces.
- Ensure that internet transactions on their platforms (i) are clearly identifiable as an e-commerce transaction; (ii) identify the person/s on whose behalf the e-commerce transaction is made, and (iii) identify any promotional offer and the conditions required to qualify for it are accessible, clear, and unambiguous.
- Require all online merchants to submit specific information (example, name, valid ID, geographic address, contact details) before listing with their platforms.
- Maintain a list of all online merchants registered under their platforms.
- Take necessary precautions to protect the data privacy of consumers.
- Prohibit the sale of regulated goods unless certain conditions are met (such as, the merchant submitted a permit or license, etc.)
- Provide an effective and responsive redress mechanism for online consumers and merchants to report a user or information posted on the platform that are deemed in violation of relevant laws.
- Require online merchants to clearly indicate (i) the name and brand of goods and services, (ii) price, (iii) description, and (iv) condition.
Obligations of other Digital Platforms that do not retain oversight over the consummation of the transaction.
- Enable consumers to distinguish between commercial and non-commercial or private accounts.
- Prohibit the sale and advertisement of regulated goods unless certain conditions are met (such as, the merchant submitted a permit or license, etc.)
- Require online merchants to clearly indicate (i) the name and brand of goods and services, (ii) price, (iii) description, (iv) condition, and (v) contact information
- Provide an effective and responsive redress mechanism for online consumers and merchants to report a user or information posted on the platform that are deemed in violation of relevant laws.
- Maintain an updated list of accounts that make use of the platform for e-commerce.
- Take necessary precautions to protect the data privacy of consumers.
Obligations of E-retailers and Online Merchants.
- Indicate the price of the goods and services.
- Ensure that the goods are received by the online consumer are (i) in the same condition, type, quantity, and quality as described and stated and, if appliable, possess the functionality, compatibility, interoperability, and fitness for the purpose for which they are intended; (ii) in the same condition, type, quantity, and quality of a sample, picture, or model of the goods shown, or in the same additional descriptions or specifications provided; and (iii) fit for the particular purpose for which the online consumer requires them as communicated by the consumer to the e-retailer or online merhcant.
- All goods must be (i) delivered together with their accessories, all other packaging, installation inclusions, any user manual, or other instructions as advertised or described with the relevant information printed in Filipino and/or English; and (ii) possesses qualities and performance capabilities that are standard and normal in goods of the same type.
- For digital goods or services providers, they must ensure that the digital goods or services have the qualities and performance features, in relation to functionality, compatibility, interoperability, accessibility, continuity, and security, that are standard and normal for the digital goods or services of the same type as advertised or described.
- For those that offers a performance of a service, the e-retailer or online merchant must ensure the completion of the service in accordance with the contract as advertised.
- The e-retailer must (i) published on its homepage its corporate and trade or business name, address of its physical shop, contact details, and, if applicable, details of membership in any professional body or similar relevant institution; and (ii) take necessary precaution to protect the data privacy of consumers.
- They must issue paper or electronic invoices or receipts.
- They must have in place an accessible and efficient redress mechanism for handling complaints from their clients.
Affected online merchants, e-retailers, e-marketplaces, and digital platforms have 18 months from the effectivity of the law to comply with its requirements.
For more information, please read the full text of Republic Act 11967.
