The Internet Transactions Act: What Filipinos Need to Know
Updated: Sep 23
Understanding the New Era of Online Business in the Philippines
Filipinos have been engaging in online buying and selling for years. Even before official marketplaces emerged, resourceful Pinoys utilized early social media platforms like Multiply. Many created personal business accounts on Facebook (FB) before business pages and FB groups became the norm.
Now, the country’s digital marketplace has entered a new era. On June 20, 2025, Republic Act 11967, also known as the Internet Transactions Act, officially became law. This law introduces clearer and stricter rules for anyone conducting business online.
If you run a small store on social media, sell through platforms such as Lazada or Shopee, or offer services on your own website, this law applies to you.
What the Law Covers
The Internet Transactions Act covers both business-to-business and business-to-consumer transactions conducted over the internet. It provides a broad definition of what constitutes an online business, including marketplaces, digital platforms, and individual sellers.
You do not need to physically operate in the Philippines to fall under its scope. The only requirement is that you are trying to sell to Filipino customers.
It is important to note that while consumer-to-consumer sales, such as personal reselling, are generally exempt, frequent sales that resemble a real business may still attract the attention of regulators.
Checklist for Compliance
To keep your operations running smoothly, ensure you have the following in place:
A business name registered with the Department of Trade and Industry (DTI) or the Securities and Exchange Commission (SEC).
Bureau of Internal Revenue (BIR) registration and tax filings.
Barangay and mayor’s permits.
Compliance with the Data Privacy Act.
If any of these are missing, it is best to address them soon.
Guidelines for Online Sellers
Earlier this year, the government released the law’s Implementing Rules and Regulations under Joint Administrative Order 24 03. The specific guidelines are as follows:
Transparency: Sellers must post their business name, address, and contact details where customers can easily see them. This includes social media accounts.
Accountability: Platforms like Lazada and Shopee must verify the identities of their sellers and remove listings that violate the law.
Jurisdiction: Even businesses located abroad are covered if they cater to Filipino consumers.
Penalties: Noncompliance can lead to fines or other regulatory actions.
Important Reminders for Online Businesses
Review Your Online Presence: Check if your listings and advertisements target the Philippine market.
Display Business Information: Ensure you post complete and consistent business information on all platforms.
Register Properly: Make sure your business is listed with the DTI, SEC, BIR, and your local city hall.
Keep Records: Store copies of your permits and registrations.
Stay Informed: Some local governments may issue their own rules or additional permit requirements.
If you are unsure where to start, there are companies such as Permitly.ph that can help guide you and ensure your business is properly registered and fully compliant.
Adapting to a Digital Economy
With the Internet Transactions Act now fully in effect, compliance is no longer just about satisfying customers. It is about adapting to a digital economy that is maturing and becoming more accountable.
While this may feel like one more task in a long list of responsibilities, clearer rules help everyone. They promote fair competition, build consumer trust, and strengthen the foundation for long-term growth.
Conclusion
The Internet Transactions Act marks a significant shift in how online businesses operate in the Philippines. By understanding and complying with these new regulations, sellers can not only protect themselves from potential penalties but also enhance their credibility in the eyes of consumers. As the digital marketplace continues to evolve, staying informed and proactive will be key to success.
