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Codes of Conduct for Online Businesses and Online Consumers provided under the IRR of the Internet Transactions Act of 2023

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The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.

Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

 


AT A GLANCE:

The Internet Transactions Act (ITA) is intended to regulate e-commerce, protect consumer rights and data privacy, and uphold intellectual property rights. The Implementing Rules and Regulations (IRR) clarifies the scope and coverage of ITA, the enforcement of powers of the different government agencies involved, and the applicable procedure for imposition of fines. The IRR also provides for the Code of Conduct for online businesses and online consumers


 

E-COMMERCE CODE OF CONDUCT

Every person engaged in e-commerce is expected to act responsibly, and shall abide by the following Code of Conduct which are consistent with international trends, developments, standards, and best practices in order to build trust in e-commerce, and to protect and uphold the interest of the consumers at all times:

  1. Consumers shall be treated with honesty, integrity, and fairness at all times.
  2. The rights of consumers shall be applied equally, without distinction or discrimination.
  3. Business entities shall refrain from engaging in illegal, fraudulent, unethical, or unfair business practices that harm consumers, and shall comply with applicable laws and regulations, especially the protection of Intellectual Property Rights.
  4. Accurate information about goods and services marketed and sold online to Philippines consumers shall be given and made available to consumers before, during, and after an internet transaction.
  5. Goods and services sold online must conform to Philippine Regulatory Standards.
  6. The safety of goods and services marketed or sold online must not be compromised, and products that have been recalled in the offline retail market must not be marketed or sold online.
  7. Goods and services must be easily accessible, accurately described, and promoted through fair advertising and marketing practices.
  8. Consumers must be given the correct and complete information about costs through a sales invoice or an official receipt detailing the particular costs of the goods or service purchased, including shipping or delivery charges. Hidden charges or additional costs such as customs duties or currency conversion charges must be avoided.
  9. When delivery is provided or part of the goods or service purchased, the tracking of deliveries must be provided to the consumer, the delivery must be made within the promised time to the address provided by the consumer, and must conform to the conditions represented by the online merchant or digital platform.
  10. A cancellation option must be provided wherein consumers are given the opportunity to review their online purchases before finally confirming their purchase or withdrawal.
  11. Data privacy laws and regulations shall be strictly complied with.
  12. The safety and security of online payments and sensitive data shall be safeguarded through the use of secure technology and protocols including those evidenced by visible trust certificates or any appropriate similar certification as may emerge in the future. 
  13. The transmission of unsolicited commercial email or bulk email, except those subject to the control and discretion of the consumer through readily accessible configurations that allow the consumer to choose whether they wish to receive or opt out from commercial messages by email or electronic means, must be avoided.
  14. The production of fake online reviews or spreading wrong information about competitors is improper and must be avoided. 
  15. Consumers must be educated about the risks of transacting through the internet and shall be provided competent and professional advice.
  16. Digital platforms must ensure online supplier protection by avoiding anti-competitive agreements and abuse of dominance practices.
  17. Competing fairly with other businesses and adherence to competition principles and all applicable competition laws and regulations, including R.A. No. 10667, or the Philippine Competition Act, shall ensure the robust development of the e-commerce and the economy. 

The E-Commerce Code of Conduct is a non-exclusive list. All those engaged in e-commerce must, in the exercise of his duties, act with justice, give everyone his due, and observe honesty and good faith.

 

ONLINE CONSUMERS CODE OF CONDUCT

Consumers availing of e-commerce goods or services are expected to act responsibly, and shall abide by the following Online Consumers Code of Conduct:

a. The online consumer shall exercise ordinary diligence in any internet transaction.

b. The online consumer shall be respectful at all times, and shall not in any way or in any manner threaten, intimidate, utter or write offensive or discriminatory language, heckle or offend the other party by the display or expression of any abusive, violent, inappropriate, or sexually explicit language or images.

c. If the transaction includes the delivery of the purchased goods, the online consumer shall not cancel confirmed orders when the said items have already been paid for by the consumer, or the goods are perishable in nature and are already in the possession of a third-party delivery service, or otherwise in transit to the online consumer unless:

  1. The online consumer uses electronic or digital payment services and the latter authorized the crediting of the amount in favor of the vendor despite cancellation; 
  2. The online consumer reimburses third-party delivery service as a pre-condition for the cancellation of order; 
  3. The transaction allows cancellation for a fee; or
  4. The parties agree otherwise. 

d. The online orders of food that is cooked or otherwise prepared by quick service restaurants, or goods that are made to order and the materials of which have already been purchased or prepared, shall not be canceled unless there is an agreement between the online consumer and the digital platform, e-marketplace, e-retailer, or online merchant, whichever is applicable.

e. The online consumer shall not request the performance of illegal acts.

f. The online consumer shall not make false, fraudulent, or unsubstantiated claims for purposes of justifying or enforcing a consumer right.

The Online Consumers Code of Conduct is a non-exclusive list. Online consumers must, in the exercise of his duties, act with justice, give everyone his due, and observe honesty and good faith.

 

Related Articles:

How the Internet Transactions Act of 2023 Protects Online Consumers and Merchants

Key Takeaways from the Philippine Digital Workforce Competitiveness Act

 

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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 0917-5772207/ 09778050020.

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