5 Urgent Changes from the Internet Transactions Act You Can’t Ignore
No More Shortcuts
E-Commerce Compliance Is Now Non-Negotiable
The rapid rise of e-commerce in the Philippines has been exciting, but it also created a digital “Wild West.” Scams, fake sellers, bogus buyers—you name it, we had it.
That’s over.
With Republic Act No. 11967, the Internet Transactions Act of 2023, the rules of the game have changed. And with the release of DAO No. 25-07 S. 2025, the E-Commerce Philippine Trustmark is now mandatory.
If you sell online—whether you’re on Shopee, Lazada, TikTok Shop, your own website, or even Facebook Marketplace—this is no longer optional. You either comply or risk takedowns, penalties, and being blacklisted.
Here are the five urgent changes you need to understand and act on:
1. Platforms Are No Longer Just Middlemen
Before, platforms could say, “We’re just the venue, don’t blame us.” Not anymore. Under the Internet Transactions Act, platforms like Lazada, Shopee, and even Facebook Marketplace share legal responsibility for sellers’ actions.
That means stricter merchant checks, faster takedowns, and possibly higher seller fees. If your documents aren’t complete and your business isn’t compliant, don’t be surprised if you get delisted.
2. The Government Can Shut You Down—Fast
Thanks to the new takedown order power, the Department of Trade and Industry (DTI) can now remove your listings instantly—no hearing first.
Illegal goods, fake items, unsafe services—gone in a flash. And if you don’t comply? You could face blacklisting and fines up to ₱1,000,000.
3. “Bogus Buyers” Get Penalized—But Sellers Step Up Too
The law, RA 11967 Chapter 4, SEC. 19. Obligations of Online Consumers, finally cracks down on fake buyers who cancel last minute. Great news for sellers! But here’s the catch: sellers are now 100% accountable for product accuracy and quality.
Wrong specs, misleading photos, or defective products? You’re liable for refund, repair, or replacement.
4. Foreign Sellers Must Also Play by the Rules
Even sellers with no office in the Philippines are covered. If they target Filipino customers, they must comply with Philippine laws.
This evens the playing field. Local sellers who are compliant can now market themselves as safer, more trustworthy, and officially recognized.
5. The Trustmark Is Now Mandatory (DAO No. 25-07 S. 2025)
Here’s the biggest shift: the E-Commerce Philippine Trustmark is no longer just encouraged—it’s required.
DAO No. 25-07 S. 2025 makes the Trustmark mandatory for all online businesses operating in the Philippines. No Trustmark, no business. You will have until December 31, 2025 to comply.
Key Facts You Need to Know:
- Cost: ₱1,130.00 per year
- Validity: 1 year (renewable)
- Requirements: Business registration + complaint-handling process
- What It Means: Compliance with consumer protection, data privacy, and security laws
And remember: this Trustmark is different from “Top Seller” or “LazMall” badges. Those are platform-only. The Trustmark is government-issued and recognized across all platforms.
Adapt or Be Left Behind
This isn’t just regulation—it’s a reset of the entire e-commerce ecosystem. The Internet Transactions Act + DAO No. 25-07 S. 2025 means only serious, compliant, and trustworthy businesses will survive.
So, here’s the bottom line:
✅ Register your business properly
✅ Audit your listings for accuracy
✅ Secure your Trustmark now
This is your chance to stand out, build trust, and future-proof your online business.
The new era of Philippine e-commerce is here. Are you ready to lead—or will you be left behind?
For assistance in starting your business and registering for Trustmark, reach out to us at
https://www.dayananconsulting.com/contact-us/.
About David Elefant
Philippines business consultant specializing in assisting companies setup their operations in the Philippines.
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