Senate OKs bill giving DTI chief power to take down online sellers, e-commerce websites

MANILA, Philippines — The Senate has approved a measure that gives the government more leeway to regulate online transactions, including the power to remove e-commerce platforms and accounts of online sellers duping consumers with their products and services.

Voting 20-1-0, the Senate on Monday passed on third and final reading Senate Bill No. 1846 or the proposed Internet Transactions Act. 

The measure seeks to “ensure that all goods and services transacted digitally will be as advertised” and to impose penalties on erring digital platforms and online merchants.

In particular, the bill arms the Department of Trade and Industry (DTI) secretary with the power to issue takedown orders on websites, webpages, online applications, social media accounts or "other similar platforms" found engaging in or abetting illegal online transactions.

The DTI chief can also order a provisional takedown order when they find that a good or digital product is "imminently injurious, unsafe or dangerous" or when the seller has previously violated a provision of the law.

According to the measure, the website or account issued a takedown order will be inaccessible for a maximum of 30 days “unless otherwise extended or made permanent” by a judicial decision.

The DTI chief can also upon due notice and hearing, issue a 30-day cease and desist order on any website or account found violating trade or consumer protection laws to "desist from marketing or offering non-financial goods or services that are accessible in the Philippines." 

The measure covers all business-to-business and business-to-consumer internet transactions. 

The proposed Internet Transactions Act also requires online merchants to conform to a code of conduct aimed at protecting consumer interests and preventing false transactions.

Among others, the code of conduct requires online businesses to provide consumers with sales invoices or receipts that would reflect "the correct and complete information" about the purchase. It disallows "hidden charges or additional costs, such as customs duties or currency conversion charges." 

Digital platforms will also be required to ensure the protection of online sellers by "Avoiding anti-competitive agreements and abuse of dominance practices" and by having a mechanism to resolve disputes. 

The bill also creates an e-commerce bureau under the DTI which will oversee internet-based activities that presently lack regulation. 

To aid the public in verifying information on internet transactions, the e-commerce bureau is tasked to maintain an online business registry of all internet merchants.

The House passed a counterpart measure (House Bill 4) on final reading in December 2022.

The proposed Internet Transactions Act is among the 20 priority bills that the Marcos administration wants passed before December 2023.