If you’re selling online in the Philippines—whether through Shopee, Lazada, Facebook, or your own website—the Internet Transactions Act brings a fundamental shift that affects how you do business, and the 18-month grace period ends this June.

Here’s what changed, and more importantly, what you need to do about it.

Four Critical Changes You Can’t Ignore

The DTI now has an E-Commerce Bureau with real teeth. They can issue takedown orders, blacklist your business, and impose fines from ₱5,000 to ₱1 million.

1. BIR Registration is Now Mandatory for Marketplace Sellers

If you’re selling on platforms like Shopee or Lazada, you must now submit your BIR Certificate of Registration. No exceptions. Platforms are required to collect this from all merchants.

2. Your Business Information Must Be Public and Accurate

Whether you’re an e-retailer or selling through platforms, you need to display your complete business details—corporate name, physical address, contact information. The new Online Business Database will make this information publicly searchable.

3. Product Information Standards Just Got Stricter

You must now indicate where your goods are produced or manufactured. Your product descriptions, prices, and conditions must be accurate and complete.

4. Customer Cancellation Rules Have Changed

Good news for sellers dealing with “joy buyers.” Customers can no longer freely cancel confirmed, paid orders unless specific conditions are met. This protects your business from arbitrary cancellations.

What This Means for Your Bottom Line

The Upside:

• Reduced losses from frivolous cancellations
• Level playing field as all competitors face the same requirements
• Enhanced consumer trust through improved transparency
• Protection from unfair platform policies through new dispute resolution mechanisms

The Risks:

• Non-compliance can result in takedown orders and blacklisting
• Administrative fines that can seriously impact small businesses
• Loss of marketplace access if you don’t meet registration requirements

Your Action Plan If You Haven’t Complied Yet

Immediate Steps (This Month):

• Ensure your BIR registration is current and submit to all platforms where you sell.
• Update all product listings with complete, accurate information including country of origin.
• Review and update your business contact information across all channels.

Next 30 Days:

• Prepare for the Online Business Database registration (launching within the year).
• Review your customer service and dispute resolution processes.
• Ensure your data privacy practices comply with both DPA and ITA requirements.

Ongoing:

• Stay updated on E-Commerce Bureau announcements.
• Consider pursuing the upcoming Philippine Trustmark certification for competitive advantage.
• Monitor your compliance across all selling channels.

Don’t wait until the last minute. The June 2025 deadline isn’t a suggestion. It’s when enforcement begins in earnest. Start your compliance process now, and use it as an opportunity to professionalize and strengthen your online business.