Philippines nears issuance of e-commerce trustmark rules
INQUIRER FILE PHOTO
MANILA, Philippines — The Department of Trade and Industry (DTI) is set to issue new guidelines on the rollout of e-commerce trustmark, aiming to boost consumer confidence and curb fraudulent online transactions amid the growing digital economy.
The government agency began gathering feedback on May 10 on a draft administrative order detailing the implementing rules and regulations for the Philippine E-Commerce Trustmark.
“We are accepting comments until May 16. We will release the (draft administrative order) immediately after consolidation, evaluation, and consideration of the comments,” Trade Secretary Ma. Cristina Roque said in a message sent to the Inquirer late Tuesday afternoon..
According to the draft order obtained by the Inquirer, the proposed trust mark is intended to certify that marked products, goods, or services sold online are reliable and that they meet established standards.
The DTI said there’s need to initiate the establishment of trustmarks to promote trust, safety and fair digital trade in online transactions.
“It is intended to build consumer confidence and promote adherence to standards in e- commerce by fostering a culture of trust and voluntary compliance with consumer protection policies,” read a portion of the draft provisions.
READ: The Internet Transactions Act of 2023
Requirements
To be eligible for the Philippine E-Commerce Trustmark, applicants must submit a duly accomplished application form along with a sworn undertaking to comply with all relevant laws, rules and regulations.
They must also secure a business name through the DTI’s registration system, as well as provide a certificate of incorporation from the Securities and Exchange Commission, or a Certificate of Registration from the Cooperative Development Authority, depending on the type of organization.
A valid mayor’s permit or business permit from the local government unit where the principal business operates is also required, along with a Bureau of Internal Revenue certificate of registration (Form 2303).
In addition, applicants must submit a list of the digital platforms or websites they use for online sales, a valid government-issued ID, and, if the application is filed through a representative, either an authorization letter or a secretary’s certificate, as appropriate.
Finally, a certificate of no pending formal charge issued by the DTI Fair Trade Enforcement Bureau, or any relevant government office or agency, is also required.
Rationale
The trustmark provides key benefits, including streamlined access to DTI programs and services that support micro, small, and medium enterprises, market access and business matching opportunities.
Businesses that hold the trustmark will also enjoy priority processing of relevant DTI permits and certifications, including business name registration and product-related clearances.
Additionally, trustmark holders will be eligible to participate in DTI’s capacity-building activities, trade fairs and consumer awareness initiatives.
They may also be considered for future recognition awards or citations issued by the DTI.
Furthermore, the trustmark enhances a business’s credibility, providing increased visibility through official DTI promotional campaigns or digital trust initiatives, which can help attract both consumers and potential business partners.
Redress mechanism
Lastly, businesses with the trustmark gain access to redress facilitation mechanisms managed by the DTI for addressing consumer complaints, without affecting their ability to pursue legal remedies under the Internet Transactions Act and other applicable laws.
According to the e-Conomy SEA report by Google, Temasek, and Bain & Company released last year, the Philippines’ overall digital economy managed to grow by 20 percent to $31 billion from $26 billion in 2023.
Looking ahead, the country’s e-commerce sector is projected to hit a gross merchandise value of $60 billion by 2030.
READ: Philippine internet economy post fastest growth among SEA — report
