Philippines: All e-commerce participants subject to Philippine laws, regardless of physical presence

The law applies to all business-to-business (B2B) and business-to-consumer (B2C) internet transactions

The law applies to all B2B and B2C internet transactions

The president on 5 December 2023 signed into law the “Internet Transactions Act of 2023” (RA No. 11967), which mandates that all electronic commerce (e-commerce) participants using the Philippine market are subject to Philippine laws, regardless of their physical presence in the country. The law applies to all business-to-business (B2B) and business-to-consumer (B2C) internet transactions, excluding online media content and consumer-to-consumer (C2C) transactions.

The law also establishes the E-Commerce Bureau, an online business database, and an e-commerce Philippine Trustmark for safety and security in internet transactions. It outlines the regulatory jurisdiction of the Department of Trade and Industry, the rights and obligations of parties involved in internet transactions, and the penalties for violations.

The law’s regulations will be implemented within 90 days of its effectivity, with an 18-month transition period for all affected online businesses to comply. The law will take effect on 20 December 2023 (i.e., 15 days after its publication in the official gazette on 5 December 2023).

Read a December 2023 report prepared by the KPMG member firm in the Philippines



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