b. Extraterritorial Application

Scope of Regulated Digital Entities and Online Enforcement Mechanisms under Republic Act No. 11967

Under Republic Act No. 11967, internet commerce encompasses various transactions, including business-to-business (B2B) transactions between businesses, business-to-consumer (B2C) transactions between businesses and end-users, and consumer-to-consumer (C2C) transactions between end-users for personal, family, or household purposes and not done in the ordinary course of business¹. The law regulates digital platforms, which are information and communication technology-enabled mechanisms that connect and integrate producers and users in online environments where goods and services are requested, developed, and sold, and data is generated and exchanged¹. Regulated entities include e-marketplaces that connect online consumers with online merchants and retain oversight over the consummation of the transaction, as well as e-retailers that sell goods or services directly to online consumers through their own websites, webpages, or applications¹.

To enforce compliance, the Secretary of the Department of Trade and Industry (DTI) possesses statutory powers over online listings and platforms²,³:

• Ex Parte Takedown Orders: After investigation or verification, the DTI Secretary may direct the removal of a listing or offer on a webpage, platform, or application, regardless of the intended nature of the transaction, upon grounds such as the sale or lease of prohibited or regulated goods or services whose prohibited nature is apparent from the photo or description in the post (e.g., endangered animals, illicit drugs, explosives, and counterfeit goods), goods subject to a cease and desist order, previously taken down listings reposted by a seller under investigation, or transactions that threaten public or personal safety or compromise personal or financial information². Other regulatory agencies may also request the issuance of such takedown orders for violations within their jurisdiction².
• Blacklisting: The DTI Secretary has authority to establish a publicly accessible list of websites, webpages, online applications, social media accounts, or similar platforms that fail to comply with a compliance order or are subject to a takedown or cease and desist order³. This blacklist is made publicly available, furnished to digital platforms and financial regulators, and promptly corrected or cleared without need of a hearing upon subsequent compliance³.