Guidelines in E-Commerce Transactions for Online Businesses and Online Consumers

On 04 March 2022, the Department of Trade and Industry (“DTI”), Department of Agriculture (“DA”), Department of Health (“DOH”), Department of Environment and Natural Resources (“DENR”), Intellectual Property Office of the Philippines (“IPOPHL”), and the National Privacy Commission (“NPC”) issued Joint Administrative Order No. 22-01 series of 2022 (“JAO”) which provides guidelines in e-Commerce transactions for online businesses and online consumers.

The JAO reiterates the existing policies, procedures, and guidelines that should apply to online businesses, and the procedures and remedies available to online consumers. The laws applicable to physical or offline businesses are, as far as practicable, equally applicable to online businesses. Violations of relevant and pertinent laws governing commerce shall be penalized with the same penalties as provided in the applicable laws.

Responsibilities of Online Businesses and Protection of Consumers

Online businesses shall comply with all Philippine laws, rules and regulations, bearing in mind the principles of the ASEAN Online Business Code of Conduct which include the fair treatment of consumers, upholding the same responsibilities as traditional brick-and-mortar businesses, compliance with laws and regulations, conformance to local standards, and ensuring the quality and safety of products, among others. Online businesses are also reminded to be mindful of pertinent laws for (a) the protection of online consumers against hazards to health and safety, and (b) the protection of online consumers against deceptive, unfair, and unconscionable sales and practices. 

The JAO also mandates online businesses to comply with the rules on warranty under the Civil Code and under Title III of Republic Act (“R.A.”) No. 7394 or the Consumer Act of the Philippines. For labeling requirements, online businesses must comply with the provisions of R.A. No. 7394, R.A. No. 9711, and other pertinent and relevant laws such as, but not limited to R.A. No. 6675 or the Universally Accessible Cheaper and Quality Medicines Act of 2008, Milk Code, R.A. No. 10620 or the Toy and Game Safety Labeling Act of 2013, among others. Finally, for the rules on price tag placement, Articles 81 and 83 of R.A. No. 7394 shall apply.

Regulated, Restricted, and Prohibited Items

To monitor the movement of regulated, restricted, and prohibited items, online businesses shall exhibit their license or permit number as regards the regulated items for sale as prescribed by regulatory agencies. However, delivery platforms shall not be liable for transport of those items when the same cannot, on the face of the package be determined to be in violation thereof.

Online businesses shall not produce, import, distribute, market, sell or transport goods or services specifically prohibited by law, such as, but not limited to counterfeit goods, precious metals and conflict minerals, weapons, artifacts, sexual services, seditious or treasonous materials, and others. The JAO includes a non-exhaustive list of the regulated, restricted, and prohibited items for reference. 

Data Privacy

The JAO also mandates compliance with the provisions of R.A. No. 10173 or the Data Privacy Act to ensure transparency, legitimate purpose, and proportionality in the data collection and processing of consumers’ personal information.

Liabilities of Online Businesses

Online business shall be liable for defective products and services and the sale of counterfeit and pirated goods. E-Commerce platforms and e-marketplaces shall also be treated in the same manner as online sellers, merchants, and e-retailers, in the event any violation of the laws is committed.

E-Commerce platforms, e-marketplaces, and the like shall verify if the goods sold by the online sellers or merchants, and e-retailers, in their respective platforms are regulated, prohibited, original, genuine, licensed, or unexpired.  

Responsibilities of Government Agencies

The provisions of the JAO shall be implemented by the concerned agencies, namely: (a) DTI, (b) DA, (c) DENR, (d) DOH through the Food and Drugs Administration, (e) IPOPHL, and (f) NPC. These government agencies are enjoined to coordinate and assist in the enforcement of the provisions of the JAO, in respect to the matters falling under their respective jurisdiction. 

Remedies of Consumers

Pursuant to the “No Wrong-Door Policy” of the DTI, any consumer complaint filed with them shall be accepted for appropriate assistance, subject to the limitations imposed by law. Should the subject matter of a complaint fall beyond their jurisdiction, the DTI shall assist the consumer by guiding them and forwarding the complaint to the appropriate agency. 

Consumer complaints shall be governed by the rules of the government agency having jurisdiction over the product or service complained of. However, the consumer may seek primary resolution through the internal complaint mechanism of the online business before resorting to intervention by government agencies.
For more information, please see the full text of the JAO found here.