The Philippines has introduced Joint Administrative Order No. 24-03, Series of 2024, which sets forth the Implementing Rules and Regulations (IRR) for the Internet Transactions Act (ITA) of 2023. This new regulatory framework is aimed at overseeing both business-to-business (B2B) and business-to-consumer (B2C) internet transactions that fall under the Department of Trade and Industry’s (DTI) jurisdiction.
The IRR covers transactions between parties within the Philippines and businesses targeting Filipino consumers. To further clarify, it defines key terms such as ‘availment of the Philippine market,’ which refers to actions like advertising, soliciting orders, and offering customer support within the country. The term ‘minimum contacts’ encompasses any form of interaction with Philippine-based consumers, including providing access to digital platforms or enabling the exchange of goods and services.
The IRR also sets out several exclusions. For example, it doesn’t apply to Consumer-to-Consumer (C2C) transactions, offline-only transactions, or foreign businesses not actively targeting the Philippine market. Moreover, while most online media content is exempt from the law’s coverage, live selling is treated as a form of advertising and thus falls under the ITA’s scope.
Different types of online entities have various obligations under the IRR. Digital platforms that don’t directly oversee transactions, e-marketplaces with oversight responsibilities, and e-retailers or online merchants all need to meet specific compliance standards.
The IRR takes effect immediately but allows an 18-month transition period for businesses to comply. During this time, companies are required to submit detailed information to the E-Commerce Bureau, and online merchants must provide their registration details. Digital platforms, on the other hand, must disclose information regarding the origins of products sold. In addition, the IRR promotes ethical e-commerce practices through Codes of Conduct for both businesses and consumers.
