The government has further tightened the monitoring of trade and commerce in online shopping channels with the issuance of Joint Administrative Order 22-01, consolidating all existing rules and guidelines on online businesses.
The JAO was the result of concerted efforts among the Department of Trade and Industry, Department of Health, Department of Agriculture, Department of Environment and Natural Resources, Intellectual Property Office of the Philippines, and National Privacy Commission.
In response to the proliferation of prohibited and regulated products sold on marketplace platforms and social media marketplaces, these government agencies issued the JAO to caution merchants selling on Facebook/Meta, Instagram, Viber, Lazada, Shopee, Carousell, and other marketplace platforms against the sale of unlicensed, restricted, or prohibited products.
Under the order, government agencies shall develop a system to exchange intelligence or information on prohibited and regulated items monitored online, including automatic sharing of information with the appropriate regulatory agency on possible violations detected or discovered.
This may include the sharing of and access to a database of products/items containing sufficient information, keywords, and content.
“Institutionalizing this exchange of information between government agencies is one of the ways by which we can make monitoring of compliance by online sellers more efficient. The DTI e-commerce division shall be tasked to coordinate with both the marketplace platforms and government agencies in setting up this mechanism,” said Trade Secretary Ramon Lopez.
Online businesses are covered by the Consumer Act of the Philippines, the Philippine Standards Law that provides liabilities in case of defective products, or the Intellectual Property Code for counterfeit and pirated goods.
Online sellers need to comply with product and service warranties, labeling requirements including price tag placement.
The DTI warns that the practice of providing prices through private (or direct) messages to consumers or buyers is considered a violation of the Price Tag law.
Online merchants must exhibit the corresponding permit or license number for regulated items as prescribed by regulatory agencies concerned. Online businesses are not allowed to produce, import, distribute, market, sell or transport goods that are prohibited by law.
DTI Undersecretary for Consumer Protection Group Ruth Castelo reminded online merchants to comply with the provisions of the Consumer Act and the Price Act.
“The laws that apply to brick and mortar stores also apply to online business. A price tag required to be pasted on items you buy in stores are also required to be pasted on the products that you buy online or through published price lists.”
“Buyers no longer have to ask for the price from the seller, who will almost always say that a private message is sent (P.M. Me). This is a clear violation of the Price Tag law,” she said.
Consumers and sellers are reminded that fines and penalties provided under existing laws applicable to brick-and-mortar transactions are applicable to online transactions as well, she added.
The JAO adopted the ASEAN Online Business Code of Conduct to ensure that merchants are aware of their responsibilities to consumers.
The DTI reminds digital platforms to make sure that merchants who sell on the platforms must secure licenses, permits, and other certification requirements depending on the nature of their business, and of the goods and services they sell.
Food and medicines must comply with Food and Drug Association registration, while consumer products must contain Philippine Standard marks or ICC stickers.
Under the JAO, digital platforms are given three calendar days to take down an online post upon notice from the concerned authorized agency, lest they face charges.
