By: Atty. Gregorio B. Austral, CPA
Obligations and remedies of online consumers under the Internet Transactions Act
It is the policy of the State to promote and maintain a robust electronic commerce (e-commerce) environment in the country by building trust between online merchants and online consumers. 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.
To achieve the foregoing policy, the law imposes obligations on online consumers. The online consumer shall exercise ordinary diligence in any Internet transaction.
If the transaction includes the delivery of the purchased goods, the online consumer shall not cancel confirmed orders when the said items have already been paid for by, or the goods are perishable in nature and are already in the possession of a third-party delivery service, or otherwise in transit to the online consumer unless:
(a) The online consumer uses electronic or digital payment and authorized the crediting of the amount despite cancellation;
(b) The online consumer reimburses third-party delivery service as a pre-condition for the cancellation of the order;
(c) The transaction allows cancellation for a fee; or
(d) The parties agree otherwise.
The law also provides for remedies of online consumers. In case of defect, malfunction, or loss without the fault of the online consumer, or failure to conform with warranty or any liability of the online merchant or e-retailer arising from the contract, the online consumer shall have the right to pursue repair, replacement, refund or other remedies provided under Republic Act No. 7394 or any existing relevant laws.
When the online consumer avails replacement or refund as a remedy, the online merchant is entitled to the return of the original goods delivered, without any cost to the online consumer, within a reasonable period from the receipt thereof, unless otherwise agreed upon by the parties. In case the refund is already paid, but the goods cannot be returned due to the fault of the online consumer, the amount received shall be immediately reimbursed to the online merchant or e-retailer subject to proportionate reduction in price, if appropriate. (Internet Transactions Act of 2023, Republic Act No. 11967, [December 5, 2023])