Penalties for selling illegal products in force, online merchants warned

THE Department of Trade and Industry (DTI) said new penalties are now enforceable against online merchants and platforms selling illegal products and services.

With the end of the Internet Transactions Act’s transitory period,“the DTI is now empowered to issue takedown orders against online listings for illegal goods or services,” it said in a statement on Monday.

“Digital platforms can also be held solidarily liable with sellers for violations if they fail to act on illicit activities on their sites,” it added.

Under the law, all online marketplaces, retailers, and merchants are required to disclose the price, brand name, description, condition, and the seller’s contact details for all goods and services offered.

“Furthermore, platforms must operate accessible and equitable consumer redress systems, secure payment methods, and robust data protection standards,” the DTI said.

With the transitory period having ended on June 20, the DTI’s E-Commerce Bureau can now subpoena documents from entities under investigation.

However, the DTI clarified that its authority is only “ancillary to the primary jurisdiction of other regulatory agencies over specific goods and services.”

Trade Secretary Ma. Cristina A. Roque said: “Our goal is to give every consumer peace of mind when they shop online, while ensuring that our thousands of legitimate entrepreneurs and MSMEs are protected from unfair competition and illicit trade.”

The DTI is also developing a Philippine E-Commerce Trustmark which will act as a seal of quality for online businesses deemed compliant and trustworthy. — Justine Irish D. Tabile