By: Atty. Gregorio B. Austral, CPA
The Internet Transactions Act of 2023
Transactions using the internet have always been a hit-and-miss. If you are lucky enough, you can acquire a good product or service unavailable in the market. Others are quite unfortunate to buy bogus products or services.
Conscious of the need to promote and maintain a robust electronic commerce (e-commerce) environment in the country by building trust between online merchants and online consumers, Congress passed a law known as Republic Act (RA) No. 11967 or the Internet Transactions Act of 2023.
Under the said law, the State recognizes the value and potential of the digital economy to increase competition and improve productivity. Toward this end, the State shall guarantee effective regulation of e-commerce to protect consumer rights and data privacy, encourage innovation, promote competition, secure internet transactions, uphold intellectual property rights, ensure product standards and safety compliance, and observe environmental sustainability.
This Act shall apply to all business-to-business and business-to-consumer internet transactions within the mandate of the Department of Trade and Industry (DTI), where one (1) of the parties is situated in the Philippines or where the digital platform, e-retailer, or online merchant is availing of the Philippine market and has minimum contacts therein: Provided, That online media content, and consumer-to-consumer (C2C) transactions shall not be covered under this Act.
The law defines business-to-business Transactions as referring to internet transactions between businesses, such as between a manufacturer and a wholesaler or a wholesaler and a retailer, whether the transacting parties are natural or juridical persons. Business-to-consumer Transaction refers to Internet transactions between businesses and end-users. Consumer-to-consumer (C2C) Transactions refer to transactions between end-users done for personal, family, or household purposes and not done in the ordinary business.
Digital Platforms refer to information and communication technology-enabled mechanisms that connect and integrate producers and users in online environments where goods and services are requested, developed, and sold, and data is generated and exchanged such as, but not limited to, e-marketplace, mobile application platforms, online delivery platforms, social media platforms, and travel platforms.
E-marketplace refers to digital platforms whose business is to connect online consumers with online merchants, facilitate and conclude the sales, process the payment of the products, goods or services through the platform, or facilitate the shipment of goods or provide logistics services and post-purchase support within such platforms, and otherwise retains oversight over the consummation of the transaction.
E-retailer refers to a natural or juridical person selling goods or services directly to online consumers through its own website, webpage or application. (to be continued in our next issue)