The law governing online business transactions

FILIPINOS had been engaging in online buying and selling of goods even before the entry of official marketplaces. Forever resourceful, Pinoys had used early social media platforms like Multiply (remember?), or 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, or the Internet Transactions Act, officially became law, introducing clearer and stricter rules for anyone doing 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 law covers business-to-business and business-to-consumer transactions done over the internet. It uses a broad definition of what counts as 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 one requirement is, 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, if these sales become frequent enough to look like a real business, these may still flag regulators.

Checklist

To keep your operations running smoothly, make sure you have these in place:

1) A business name registered with the Department of Trade and Industry (DTI) or the Securities and Exchange Commission (SEC).

2) Bureau of Internal Revenue (BIR) registration and tax filings.

3) Barangay and mayor’s permits.

4) Compliance with the Data Privacy Act.

If any of these are missing, it is best to address them soon.

Guidelines

Earlier this year, the government released the law’s Implementing Rules and Regulations under Joint Administrative Order 24 03. The specific guidelines are:

1) Transparency. Sellers must post their business name, address and contact details where customers can easily see them. That includes social media accounts.

2) Accountability. Platforms like Lazada and Shopee must verify the identities of their sellers and take down listings that violate the law.

3) Jurisdiction. Even businesses located abroad are covered if these cater to Filipino consumers.

4) Penalties. Noncompliance can lead to fines or other regulatory actions.

Reminders

1) Review your online presence. Check if your listings and advertisements target the Philippine market.

2) Display business information. Post complete and consistent business information on all platforms.

3) Register properly. Make sure that your business is listed with the DTI, SEC, BIR and your local city hall.

4) Keep records. Store copies of your permits and registrations.

5) 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 make sure your business is properly registered and is fully compliant.

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. These promote fair competition, build consumer trust and strengthen the foundation for long-term growth.