BBM, as in…read first

The Philippines emerges as the fastest-growing internet economy in Southeast Asia, according to the international survey and study done by Google, Temasek and Bain & Company. While this is “an affirmation of the country’s digital transformation,” the Department of Trade and Industry (DTI) warned though online scammers and other cybercriminals tagged along to profit from their illegal, nefarious trade.

Unfortunately, this robust growth of electronic or e-commerce in the Philippines also bears upon unsuspecting Filipino consumers, many of whom fall victims to online scams. This is why the DTI is at the forefront of ensuring the protection and instilling responsibility in both consumers as well as merchants in the e-commerce ecosystem, DTI Undersecretary Mary Jane Pacheco reassured the public at the Kapihan sa Manila Bay news forum last Wednesday.

Pacheco cited the DTI has been empowered and, in fact, is mandated to do so under Republic Act (RA) 11967, otherwise known as the Internet Transactions Act (ITA). RA 11967 declared: “The State aims to promote and maintain a robust electronic commerce (“e-commerce”) environment by building trust between online merchants and online consumers.” Pacheco supervises the newly created e-commerce bureau at the DTI as established by RA 11967.

President Ferdinand “Bongbong” Marcos Jr. (PBBM) signed ITA into law on Dec. 5 last year. It was only in May 30 this year that the implementing rules and regulations (IRR) of the ITA were published and promulgated. Pacheco noted with optimism that the e-market players, which include social media platforms, are currently in the process of complying with the ITA requirements.

ScamWatch Philippines creator Jocel de Guzman announced they have joined the DTI and the entire Executive branch of government, including the law enforcement agencies, in this “whole-of-nation” approach to implementing the ITA. Joining us at the Kapihan sa Manila Bay news forum, De Guzman committed the all-out support of volunteer and advocate groups like ScamWatch Pilipinas amid the expected prevalence of cybercrimes this holiday season.

Exactly a year after RA 11967 took effect, Pacheco disclosed, DTI Secretary Cristina Roque will sign and come out with additional issuances in accordance with the IRR to effectively implement the ITA. She explained there are still ongoing “legal scrubbing” on the areas of jurisdiction of the 30 or so government agencies. “The (ITA) law is quite clear. The DTI has the regulatory powers but it recognized other government agencies have jurisdiction also,” she cited.

She explained certain government agencies have such mandate to “regulate” and require prior registration, licensing and certification of goods and services. And there are also specific government agencies that classify certain goods and services that are “banned” or prohibited in the Philippines, she added. For example, she cited, certain cosmetics, food and health products must secure prior approval from the Food and Drug Administration.

Among the “banned” or goods that cannot be sold in the Philippines, she bared, are human organs and human bones. One amusing detail, Pacheco shared having found out “banned” from being sold in our country include “human wastes” and underwear termed “pre-loved” to denote “used” products. Levity aside, Pacheco assuaged the public that the soon-to-come out executive issuances of the DTI secretary will apply “Ease of Doing Business” in implementing the ITA.

Covered by the ITA in e-commerce ecosystem in the Philippines are Shoppee, Lazada, Zalora, Pandora, Carousel, just to name some of the popular e-market places, Pacheco mentioned. The e-retailers, she enumerated, include existing companies that have their own websites like SM, S&R, Ikea, Nike and others. And most of the online merchants, she noted, use the digital platforms of TikTok, Facebook, Twitter or X.

“We at the DTI want to see people buying or selling more online, ensuring safety for customers and merchants responsible involved in e-commerce,” Pacheco pointed out. Particularly, the DTI wants the micro, small and medium enterprises (MSMEs) to flourish their trade online, she stressed.

According to the 9th edition of the Google e-Conomy SEA Report, Pacheco revealed a 20 percent growth of the overall digital economy based on Gross Merchandise Value, surging from $26 billion to $31 billion in 2024. Pacheco particularly pointed out the same report recognized recent reforms, including the ITA and the 12 percent value-added tax on non-resident digital services, as vital factors in establishing a level playing field between local and international businesses.

She reminded online merchants to post in their website the detailed information about their sellers before the June 30, 2025 deadline set by the ITA. She urged them to take advantage of this “transitory” provision of the ITA within which they must comply with the submission of the required information. One of the requirements in the ITA law is the development of an “online business database” of the government.

As required by the ITA, the e-market platforms must ensure their merchants indicate their business/home address, telephone and mobile numbers as well as e-mail address. In this way, there is a way to track them down in case of reports or complaints against their goods and services.

In short, the e-marketplace will be protected from scammers.

“Before you buy an item on the internet, you can check if the seller is a legitimate seller. That’s one of the good things about online business database,” she pointed out. She warned that this provision must be complied with “if you want to participate in the e-commerce market.” The merchants, however, appealed for more time, claiming that DTI was asking for a “lot of data.”

Pacheco, however, conceded the government, especially the DTI, can only do so much to protect both the consumers and merchants. With technology advances, existing laws need to be amended and updated. One of these is RA 8792, or the Electronic Commerce Act signed on June 14, 2000 by former president Joseph Estrada. But 24 years ago, there was no online shopping yet.

As a word of caution while the full regulatory framework of the ITA is still in the works, Pacheco advised online consumers: “Basa, basa muna (read first) or BBM for short, before you buy.”