- Every Filipino who has ever bought something online — on Shopee, Lazada, TikTok Shop, Facebook Marketplace, or any online store — has rights under the law. Most do not know what those rights are. This post fixes that.
- Republic Act No. 11967, known as the Internet Transactions Act, was enacted in December 2023 to promote and maintain a robust e-commerce environment in the Philippines by building trust between online merchants and online consumers. Its Implementing Rules and Regulations were signed on May 24, 2024, and are currently in effect.
- Here is everything you need to know — in plain language.
Every Filipino who has ever bought something online — on Shopee, Lazada, TikTok Shop, Facebook Marketplace, or any online store — has rights under the law. Most do not know what those rights are. This post fixes that.
Republic Act No. 11967, known as the Internet Transactions Act, was enacted in December 2023 to promote and maintain a robust e-commerce environment in the Philippines by building trust between online merchants and online consumers. Its Implementing Rules and Regulations were signed on May 24, 2024, and are currently in effect.
Here is everything you need to know — in plain language.
Who this law protects:
The law covers business-to-consumer internet transactions where one of the parties is situated in the Philippines, and digital platforms, electronic retailers, or online merchants for as long as they offer their products to the Philippine market.
In plain terms: whether you buy from a local Shopee seller, an Instagram shop, a TikTok Live seller, or even an international website selling to Filipino customers — this law applies. It does not apply to consumer-to-consumer transactions done for personal, family, or household purposes and not done in the ordinary course of business — meaning casual second-hand sales between private individuals are not covered.
What sellers are REQUIRED to do under RA 11967:
1. Show you the full price upfront.
Sellers must display the total price of any product or service — including all taxes, fees, and charges — before you confirm your purchase. Surprise charges at checkout are not allowed.
2. Publish their return, refund, and warranty policy clearly.
Sellers must publish their refund, return, and warranty policy prominently. If a seller has no visible return policy — or if their policy says "No Return, No Exchange" for all items — that may be challenged under this law and the Consumer Act.
3. Respond to your complaint within 5 business days.
Sellers must respond to consumer complaints within 5 business days. Leaving you on "seen" for weeks after a dispute is a violation — not just bad customer service.
4. Keep your transaction records for at least 2 years.
Sellers must keep transaction records for at least 2 years. This protects you in disputes where the seller claims they have no record of your order.
5. Not use dark patterns against you.
Dark patterns are design tricks that manipulate you into buying something you did not intend to buy — like hidden subscription checkboxes, confusing cancellation flows, or fake countdown timers. The IRR sets out Codes of Conduct for online businesses that include prohibitions on these deceptive design practices.
What the platforms (Shopee, Lazada, TikTok Shop) are responsible for:
The marketplaces that host sellers are not off the hook when things go wrong. The e-retailer or online merchant shall be primarily liable for indemnifying the online consumer in civil actions or administrative actions arising from the internet transaction. The e-marketplace or digital platform that facilitated the internet transaction shall be subsidiarily liable to the online consumer if certain circumstances are present — such as failure to exercise ordinary diligence.
In plain terms: if a seller scams you and the platform knew about it or failed to act — the platform can also be held accountable.
What you can do when something goes wrong — step by step:
Step 1 — Use the platform's internal dispute system first.
Aggrieved parties must avail of the internal redress mechanism of the digital platform, e-marketplace, or e-retailer before filing a complaint before any court or government agency. Open a dispute on Shopee, Lazada, or TikTok Shop. Give the platform a chance to resolve it.
Step 2 — Wait 7 days.
If the issue remains unresolved after 7 calendar days from availing of the internal mechanism, such mechanism is deemed exhausted. After 7 days with no resolution, you can escalate.
Step 3 — File with the DTI.
Aggrieved parties may claim damages by filing a case before the court or seek the imposition of administrative penalties by filing a complaint with the Department of Trade and Industry within 2 years from the time the cause of action arose.
File at: DTI Consumer Care hotline 1384 or online at https://consumercare.dti.gov.ph
Step 4 — Small Claims Court for amounts up to ₱1 million.
Small claims court for amounts up to ₱1,000,000 is often faster than DTI adjudication. If the seller owes you a significant amount, small claims is a direct legal option that does not require a lawyer.
What the DTI can do to bad sellers:
The DTI is empowered to impose administrative fines as a penalty for certain violations up to a maximum of ₱1,000,000.
The Secretary of Trade has the authority to issue a publicly accessible blacklist of websites, webpages, online applications, and social media accounts that fail to comply with a compliance order, takedown order, or a cease-and-desist order by an appropriate government agency.
A bad online seller can be fined up to ₱1 million and blacklisted publicly. These are real consequences.
The E-Commerce Philippine Trustmark — what to look for:
The law mandates the development of an E-Commerce Philippine Trustmark to provide assurance of safety and security in internet transactions. The Trustmark signifies that the products, goods, or services sold online are trustworthy.
When shopping online, look for this seal on websites and merchant pages once it rolls out — it signals the seller has been verified and is operating within the law.
The KKB reminders before every online purchase:
Screenshot everything — product listing, price, seller promises, and your order confirmation. These are your evidence if anything goes wrong.
Pay using a credit card where possible. Credit card disputes through your bank give you an additional layer of protection beyond the platform's own refund process — especially for large purchases. If a seller disappears after payment, your bank can initiate a chargeback on your behalf.