The Internet Transactions Act: Why You Must Prepare for Compliance Before 2025

What is the Internet Transactions Act?

The Internet Transactions Act (ITA), officially known as Republic Act No. 11967, is a groundbreaking law designed to protect both online consumers and sellers. Signed into law in 2024, the ITA aims to establish clear rules for online selling and e-commerce operations. It introduces measures to ensure transparency, accountability, and fairness in the rapidly growing online marketplace.

Why Rushing Compliance With ITA is Critical?

1. Permits Take Time
   Some permits, like FDA registrations or DTI licenses, can take several months to process. Waiting until the last minute could leave your shop in limbo.
   
   
2. Platform Monitoring is Increasing
   E-commerce platforms will enforce strict rules to comply with the law. Delays in submission mean your store risks losing visibility or being taken down entirely.
   
   
3. Competition is Moving Fast
   Sellers who prepare early will stay ahead, while others scramble to catch up. Protect your market share by acting now.

Key Features of the Internet Transactions Act

1. Consumer Protection: The ITA enforces stricter guidelines for ensuring product safety and clear disclosures for online transactions.
   
   
2. Seller and Platform Accountability: Online marketplaces like Shopee, Lazada, and other e-commerce platforms must ensure that sellers meet compliance requirements.
   
   
3. Mandatory Documentation: Sellers must submit specific government and business documents to operate legally online.
   
   
4. Regulated Product Categories: Products like food, medical devices, and construction materials require additional permits and certifications.

What Does ITA Compliance Require?

To comply with the ITA, online sellers need to submit the following documents:

1. Government and Business Documents

• For sole proprietors:
  • DTI Certificate
  • BIR Certificate of Registration (Form 2303)
  • Valid Government-issued ID (e.g., SSS, TIN ID, PhilSys ID)
    
    
• For partnerships/corporations:
  • SEC Certificate
  • BIR Certificate of Registration
  • Valid Government-issued ID

✅ Further Reading: The Ultimate Checklist for Starting an Online Business in the Philippines

2. Permits for Regulated Products

If you sell items such as food, beverages, cosmetics, or construction materials, you must secure additional permits, such as:

• FDA License to Operate (LTO)
• Certificate of Product Registration (CPR)
• Philippine Standard (PS) Mark or Import Commodity Clearance (ICC)

How to Get Started with ITA Compliance

Step 1: Gather Your Business Documents

Ensure your DTI or SEC registration, BIR certificate, and valid government IDs are up to date. Visit the DTI website or SEC portal to apply or update your registration.

Step 2: Assess Your Product Requirements

Identify if your products fall under regulated categories. If so, apply for the necessary permits through the FDA or DTI.

Step 3: Submit Documents to E-Commerce Platforms

Platforms like Shopee and Lazada will require you to upload your compliance documents before June 5, 2025. Failure to comply could result in restricted listings or account suspension.

Why ITA Compliance Matters

Failing to comply with the ITA can lead to:

• Suspension of your seller account on major platforms.
• Penalties or fines for operating without the required permits.
• Loss of customer trust due to non-compliance.

Simplify ITA Compliance with Expert Help

Navigating the complexities of the Internet Transactions Act (ITA) can be challenging for online sellers. With strict requirements for documentation, permits, and certifications, ensuring compliance can feel overwhelming. But you don’t have to do it alone!

Why Work with Experts?

Professionals who specialize in business compliance and e-commerce regulations can save you time and effort by:

• Guiding you through the document submission process.
• Assisting with permit applications for regulated products.
• Ensuring your business meets ITA standards to avoid penalties or disruptions.

How Experts Can Help with ITA Compliance

1. Document Review and Preparation:
   • Verification of DTI/SEC certificates, BIR registrations, and IDs.
   • Assistance with ensuring documents are updated and valid.
     
     
2. Permit Application Support:
   • Help with applications for FDA, NMIS, DTI, or other necessary permits for selling regulated products.
   • Guidance on posting required certifications on your e-commerce storefront.
     
     
3. Compliance Consultation:
   • Tailored advice to ensure you meet ITA requirements based on your specific business model.
   • Risk assessment to identify any gaps in compliance.
     
     
4. Training and Resources:
   • Workshops or guides to help sellers understand and navigate the ITA requirements independently.

Get Started Today

Don’t wait until the last minute to prepare for ITA compliance. Schedule a free consultation with us to learn how we can help your business stay ahead of the June 2025 deadline.

📞 Contact us now or visit our services page to get started!