DTI pushes legislation of Internet Transactions Act

MANILA, Philippines — With growing consumer concerns regarding online transactions, the Department of Trade and Industry (DTI) is pushing for passage of the Internet Transactions Act (ITA) to safeguard both consumers and online merchants.

“We need the ITA law passed. We hope its enactment can be fast-tracked,” DTI Undersecretary Ruth Castelo said yesterday.

The DTI official said the ITA, which aims to build trust between online sellers and consumers, will place mechanisms to safeguard merchants and consumers as they transact online, such as the Online Business Registry (OBR) and the eCommerce Philippine Trustmark.

She added that trustmarks will be given to merchants that uphold the rights of consumers and practice responsible business.

Under the ITA, persons involved in e-commerce who purposely utilize the Philippine market will be considered to be conducting business within the country. Consequently, they will need to adhere to all applicable laws and regulations in the Philippines,” she said.

The Trade department emphasized that the bill also arms the DTI Secretary with the power to issue an order directing that a website, webpage, online application, social media account or other similar platform, be taken down or made inaccessible in the Philippines for a maximum of 30 days if found in violation of the law.

For now, the DTI urges the public to be cautious, especially when engaging in online transactions.

“Before making a purchase, you should select merchants carefully and confirm the online seller’s physical address and phone number. This will help DTI in clamping down on scammers in the online platform. Consumers must also review the return policy of the store,” Castelo said.

“We should also check the reviews posted by other buyers and keep a record of our transactions,” she said.

Data from the DTI showed that its Fair Trade Enforcement Bureau (FTEB) received a total of 27,947 complaints in 2022, 44 percent or 12,170 of which pertains to online transactions.

Of the 12,170 online complaints, 2,484 were resolved, 9,093 were referred to the appropriate agencies, 394 were withdrawn, and the remaining 199 complainants were issued Certificates to File Action.

The DTI said it also received complaints about online scams, such as using fake identities to appear as legitimate merchants, unregistered sales promotions, malicious online shopping sites, and pyramiding.

In addressing these, the DTI coordinated with the Philippine National Police (PNP), the National Bureau of Investigation (NBI), and other concerned agencies to combat their proliferation. The DTI also continued educating consumers on how to avoid scams.

With the increase in inquiries and concerns about online transactions, the DTI reminds businesses and online sellers that consumer protection laws apply to both brick-and-mortar and online stores.