Passage of Digital Transaction Law Urged for Filipinos’ Personal Finance Protection

The Department of Trade and Industry (DTI), in a bid to address rising concerns and inquiries about online transactions, emphasized in a statement that consumer protection laws extend to both brick-and-mortar and online stores and urged the passage of the Internet Transactions Act (ITA).

This comes as the DTI issued Joint Administrative Order (JAO) No. 22-01, which aims to increase public trust in online businesses and promote consumer confidence in the realm of digital shopping amid the momentous digitalization of the country which has driven the e-commerce industry, with the Filipino’s personal finance literacy and security features of digital tools coming into play.

Under JAO No. 22-01, the DTI reminds online businesses of their obligation to comply with existing regulations governing warranties, labeling, and other legal requirements.

Moreover, the order warns against the sale of prohibited or regulated items without proper approval from relevant regulatory bodies. This move serves to protect consumers’ rights and interests, reinforcing responsible business practices in the online sphere.

As the digitalization of the country continues, scams have been a primary challenge, as the Department of Trade and Industry – Fair Trade Enforcement Bureau (DTI-FTEB) reported in 2022 that they received a total of 27,947 complaints. Of the said complaints, 44 percent, or 12,170 complaints are from online transactions.

“The DTI 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,” the DTI statement added.

DTI added that they coordinated with the Philippine National Police (PNP), the National Bureau of Investigation (NBI), and other concerned agencies to combat their proliferation.

The DTI also pushed for the passage of the ITA, aiming to build trust and confidence between consumers and online sellers.

According to their statement, “The ITA will place mechanisms to safeguard merchants and consumers as they transact online such as the Online Business Registry (OBR) and the eCommerce Philippine Trustmark. The Trustmark will be given to merchants that uphold the rights of consumers and practice responsible business.”

Moreover, entities that are involved in e-Commerce and purposely utilize the Philippine market shall be considered as conducting business within the country under the ITA, which will subject them to all applicable laws and regulations in the country.

DTI Consumer Protection Group Undersecretary Atty. Ruth B. Castelo of the DTI Consumer Protection Group emphasized the importance of the ITA.

“We need the ITA law passed. We hope its enactment can be fast-tracked.” Castelo said, further urging consumers to exercise caution and remain vigilant while 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”, Atty. Ruth B. Castelo added. (GFB)