Philippine Internet Transactions Act: Maximizing the 18-month transitory period for compliance

Leverage the ITA's grace period to align your operations with new regulatory standards

In brief

The Internet Transactions Act (ITA) grants an 18-month transitory period from its effectivity (i.e., until 20 June 2025) for businesses to align their operations with the law's comprehensive regulatory framework, allowing them to implement compliance measures gradually. Notwithstanding this grace period, the Department of Trade and Industry (DTI) has been actively encouraging businesses to take immediate steps toward alignment with ITA requirements, emphasizing the importance of timely adjustments even within the transitory period.

For more details on the ITA's framework, please refer to our previous client alerts on the law's enactment and its implementing rules and regulations.


Contents

Recommended actions

Clients under the ITA's scope are encouraged to take full advantage of the transitory period by:

  • Classifying business functions: Determine which parts of your business fall under ITA classifications like "digital platform," "e-marketplace," or "e-retailer," to tailor compliance efforts accordingly.
  • Conducting a gap analysis: Assess current operations against ITA requirements to identify areas requiring adjustment.
  • Strengthening compliance measures: Update internal policies, systems and procedures to meet ITA standards, with a focus on consumer protection, data privacy and dispute resolution.
  • Beginning implementation early: Initiate compliance efforts now to ensure all measures are in place by the end of the transition period, minimizing the risk of operational disruptions.

Quisumbing Torres is committed to support clients during this period, providing strategic guidance and tailored compliance solutions to meet the ITA's requirements.

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