Philippines introduces new internet transactions regulations

The regulatory framework is a significant step in regulating the Philippines’ digital economy, emphasising transparency, accountability, and a fair digital marketplace.
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Philippines has introduced Joint Administrative Order No. 24-03, Series of 2024, which outlines the Implementing Rules and Regulations (IRR) for the Internet Transactions Act (ITA) of 2023. The new regulatory framework is designed to govern all business-to-business (B2B) and business-to-consumer (B2C) internet transactions under the jurisdiction of the Department of Trade and Industry (DTI).

Specifically, it applies to transactions involving parties within the Philippines or businesses targeting the Philippine market. To clarify the scope of the ITA, the IRR defines key terms such as ‘availment of the Philippine market,’ which includes activities like advertising, soliciting orders, and providing support within the country. Additionally, ‘minimum contacts’ refers to any interaction with customers in the Philippines, including allowing access to digital platforms and facilitating the exchange of goods or services.

Philippines has also specified specific exclusions from the ITA’s coverage through the IRR. For instance, it does not apply to Consumer-to-Consumer (C2C) transactions, purely offline transactions, or foreign entities not targeting the Philippine market. Furthermore, while most online media content is excluded, live selling is considered a form of advertising.

Consequently, the IRR outlines different obligations for various online entities, such as digital platforms that do not oversee transactions, e-marketplaces that retain oversight, and e-retailers or online merchants who must adhere to specific compliance requirements.

Philippines has made the IRR effective immediately; however, it allows for an 18-month transition period for businesses to comply. During this time, companies must submit detailed information to the E-Commerce Bureau and ensure that online merchants provide their registration details. Additionally, digital platforms must disclose information about product origins. Furthermore, the IRR includes Codes of Conduct for businesses and consumers to ensure fair and ethical e-commerce practices.