M5: Identifying the Other Requisites in Running a Business to Protect the Consumers

No separate law for online consumer protection

Philippines uses Joint Administrative Order 22 01 instead of a separate law

Joint Administrative Order 22 01

Issued March 2022 effective April 2022 by DTI IPOPHL NPC DOH DA and DENR

Goal of online business guidelines

Make online shopping safer and increase consumer trust

Covered online business types

Online sellers e commerce platforms e marketplaces online retailers formal and informal businesses

Covered online services

Goods digital products financial services entertainment travel transport delivery and education

Main rule for online businesses

Laws for physical stores also apply to online businesses

Examples of deceptive practices

Selling without authorization fake quality claims fake regulatory approval

Unfair sales situations

Grossly overpriced products and one sided deals

Warranty and labeling duty of online sellers

Must follow Consumer Act and labeling laws

Required details in product listings

• Peso price

• Payment methods

• Delivery options

• Return

• Refund

• Exchange policies and extra charges

Price visibility rule

Total price must be shown near product title or add to cart

Illegal pricing method

Sending price only through private messages

Requirement for regulated products

Must display license or permit numbers

Rule for food drugs and cosmetics

Must be registered and approved before advertising

Data privacy law for online sellers

Must comply with the Data Privacy Act

Required content of privacy notice

Data use sharing profiling and automated decision making

Anti spam requirement

Must allow opt out of marketing messages

App permission rule

No unnecessary permissions may be requested

Seller liability for defective products

Seller liable if manufacturer cannot be identified or if perishables are poorly preserved

Intellectual property duties of platforms

Must verify goods are original licensed and comply with takedown requests

Government takedown rule

Posts must be removed within 3 calendar days

Platform responsibility

Platforms must suspend ban and block repeat offenders

Delivery platform liability

Liable only when carrying illegal or prohibited items

Types of e commerce payment methods

E wallets online banking payment gateways cash on delivery credit and debit cards

BSP requirement for cashless payments

Must be registered and licensed before operating

When the Data Privacy Act applies

If based in the Philippines processing in the Philippines or data of Filipino citizens

Core data protection principles

Transparency legitimate purpose and proportionality

Required contents of privacy notice

Data collected purpose sharing user rights and data protection officer contact

Rule on consent

Consent must be clear recorded and separate from privacy notice

Rule on marketing use of data

Allowed only if the user consents

Coverage period of Lemon Law

12 months from delivery or first 20,000 kilometers

Required steps to invoke Lemon Law

Written notice and at least four repair attempts for the same issue

Excluded causes of defects

• Misuse

• Neglect

• Unauthorized modification a

• Accidents

• Natural disasters

Final repair attempt rule

Dealer or manufacturer gets one last chance to fix the problem

Remedies if defect remains

Replacement vehicle or full refund

Transport allowance right

Consumer may receive daily transport allowance during repairs

Disclosure duty on resale of returned vehicles

Must disclose return history defect and condition

Price Act

Ensures reasonable prices for basic goods

National Payments Systems Act

Regulates how payment systems are set up

No Short Changing Act

Requires exact change without being asked

Food Safety Act

Protects consumer food safety

Toy and Game Safety Labelling Act

Requires safety labels for toys and games

E-Commerce Act

Applies consumer laws to online transactions

Data Privacy Act

Protects personal and sensitive information

Purpose of FCPA (Financial products and services consumer protection)

Protect consumers and ensure fair treatment transparency and data protection

Rights of financial consumers

Clear information fair treatment asset protection data privacy and complaint access

Duties of financial institutions

Proper product design pricing transparency fair treatment and data protection

Financial regulators

1. BSP⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀

2. SEC

3. IC (Insurance commission) 

4. CDA (Cooperative development authority)

Key BSP systems

1. CPRMS (Consumer Protection Risk Management System)

2. FCPAM (Financial Consumer Protection Assistance Mechanism)

Consumer redress steps

File at institution then BSP then mediation or adjudication

Cooling off period rule

Minimum 2 day cooling off period with exemptions

Product governance principle

Products must be suitable and affordable

Key philosophy of FCPA

Customer centric approach in all financial services