The Internet Transactions Act of 2023 (Republic Act No. 11967 or ITA) officially took full effect on 20 June 2025, following an 18-month transitory period granted to affected businesses. With this, all online marketplaces, digital platforms, and internet-based merchants operating in or targeting the Philippine market must now fully comply with the law. The ITA represents a landmark in digital commerce regulation, aiming to promote consumer protection and ensure fairness in online transactions.
The law applies to both business-to-consumer (B2C) and business-to-business (B2B) internet transactions where at least one party is situated in the Philippines or where the digital platform targets or maintains substantial interactions with the Philippine market. Importantly, this includes foreign platforms and merchants with no physical presence in the country, so long as they engage with Philippine-based consumers. However, consumer-to-consumer (C2C) transactions remain outside the scope of the ITA.
Under the ITA, e-marketplaces that facilitate or oversee the conclusion of online transactions are now subject to a series of mandatory compliance obligations. They must ensure that all internet transactions on their platforms are clearly identified as such, including accurate identification of the parties involved and any promotional offers. Before a seller can list products or services, the platform must collect specified merchant information such as their business name, contact details, and proof of identity, and maintain a comprehensive list of all registered online merchants. Platforms are also responsible for ensuring that product listings contain accurate descriptions, prices, and conditions, and that regulated goods are not sold unless the required licenses or permits are submitted. Furthermore, they must implement an internal redress mechanism for consumer complaints and ensure compliance with the Data Privacy Act regarding the handling of customer data.
Digital platforms that do not oversee or facilitate the conclusion of transactions, such as social media platforms and classified ad sites, are also covered by the ITA under a separate regulatory regime. These platforms must distinguish between commercial, non-commercial, and private user accounts, prohibit the sale of regulated goods without appropriate documentation, and require users offering goods or services to disclose complete product details, including name, brand, condition, price, and a valid contact number and email address. They must also maintain, to the extent practicable, updated lists of e-commerce users and be prepared to provide such information to government authorities when validly subpoenaed. Like e-marketplaces, these platforms are required to provide internal mechanisms for reporting illegal content and must uphold information security and privacy standards.
E-retailers and online merchants, for their part, are required to adhere to strict obligations under the ITA. They must accurately indicate the price of goods and services in accordance with consumer protection laws and ensure that products are delivered in the exact condition, quantity, and quality as advertised. This includes ensuring compatibility, functionality, and fitness for the intended purpose, and that any promotional images or product samples are consistent with what is delivered. Goods must be accompanied by all necessary packaging, user manuals, and installation materials, with instructions written in English or Filipino. In cases where digital goods are sold, they must meet minimum standards for accessibility, interoperability, and cybersecurity. Services must likewise be performed in accordance with the agreed terms and public representations made during the sale. Online merchants must also disclose their business name, physical address, and contact details on their homepage, and include professional credentials where the service offered involves a regulated profession. Transactions must be supported by electronic or paper receipts, and merchants are expected to establish efficient, accessible redress mechanisms to handle customer concerns. They may also require buyers to provide a valid phone number or email address to ensure successful delivery.
To promote transparency and regulatory accountability, the law requires online merchants and e-retailers to submit their corporate and trade names, business address, contact details, and, if applicable, professional accreditation details to the Department of Trade and Industry’s E-Commerce Bureau. These details must also be published prominently on their website and supported by a government-issued ID or a valid business registration document.
The Department of Trade and Industry (DTI) is vested with broad enforcement powers under the ITA. It may issue subpoenas to compel testimony or the production of documents in connection with investigations or enforcement proceedings. Non-compliance with these subpoenas may result in the filing of contempt cases under the Rules of Court. In addition, the DTI Secretary is authorized to issue compliance orders directing entities to rectify violations. The DTI may also issue takedown orders for online listings that involve dangerous goods, repeated violations, or pose threats to public health or financial security. These takedown orders may be issued ex parte and remain in force for up to 30 days, unless extended by judicial order. The DTI may further blacklist websites, platforms, and social media accounts found to be repeatedly non-compliant, and share these with payment providers, regulatory bodies, and the public. Affected entities may seek removal from the blacklist upon demonstrating compliance, without the need for a hearing.
Finally, the ITA provides for administrative fines ranging from P5,000.00 to P1,000,000.00, depending on the nature and gravity of the violation. These penalties underscore the Philippine government’s commitment to fostering a secure, transparent, and consumer-friendly digital economy.
As the ITA enters into full force, online businesses, both domestic and foreign, must proactively assess their operations and compliance practices. The law sets a new baseline for trust and accountability in the Philippine digital marketplace and signals a strong push toward strengthening consumer rights in the internet age.
