The rapid growth of e-commerce in the Philippines has brought convenience to millions, but it has also led to an increase in disputes regarding undelivered goods. When a consumer pays for an item online that never arrives, they are protected by a framework of national laws designed to ensure fair trade and accountability.

I. Legal Framework

Consumer transactions in the Philippines, including online shopping, are primarily governed by three major pieces of legislation:

Republic Act No. 7394 (The Consumer Act of the Philippines): This is the bedrock of consumer protection. It mandates that sellers must deliver goods that meet the quality and specifications promised and protects against deceptive and unfair sales practices.
Republic Act No. 8792 (The Electronic Commerce Act of 2000): This law recognizes the legal validity of electronic data messages and documents. It ensures that online contracts are as binding as physical ones, making "non-delivery" a breach of a valid contract.
Republic Act No. 11967 (The Internet Transactions Act of 2023): The newest addition to the legal landscape, this act specifically targets digital commerce. It establishes a "Code of Conduct" for all businesses and provides for the liability of online platforms (marketplaces) if they fail to exercise due diligence.

II. The Right to Delivery and Information

Under Philippine law, a consumer has the inherent right to receive the product they purchased within the agreed-upon timeframe.

Agreed Delivery Date: If a specific date was promised, the seller is in "legal delay" (mora) the moment that date passes without delivery, provided the buyer has made a demand.
Reasonable Time: If no specific date was mentioned, the law implies a "reasonable time" based on the nature of the goods and distance.
Right to Track: Consumers have the right to be informed of the status of their orders. Failure to provide tracking or updates can be considered a deceptive practice.

III. Remedies for Non-Delivery

When an order is not delivered, the consumer has several legal avenues for recourse:

1. Specific Performance

The consumer can demand that the seller fulfill their end of the bargain by delivering the exact item ordered. This is usually the first step taken through formal demand letters.

2. Rescission of Contract (Refund)

If delivery is no longer possible or the delay is unreasonable, the consumer may "rescind" the contract. This entitles the buyer to a full refund of the purchase price, including shipping fees. Under the Consumer Act, "no refund" policies are generally considered illegal in the context of failed delivery or defective goods.

3. Damages

If the non-delivery caused specific financial loss (beyond the cost of the item), the consumer may sue for damages. This is more common in high-value transactions or business-to-business (B2B) e-commerce.

IV. Liability of Online Platforms

A common question is whether the marketplace (e.g., Lazada, Shopee, TikTok Shop) is liable. Under the Internet Transactions Act, platforms can be held solidarily liable with the merchant if:

The platform failed to properly verify the identity and contact details of the seller.
The platform was informed of the undelivered order but failed to take necessary actions to resolve the issue.
The platform failed to remove a merchant known for fraudulent non-delivery.

V. Steps for Redress

If an online order remains undelivered, consumers are encouraged to follow this escalation path:

Direct Contact: Use the platform’s chat system or the merchant’s official contact details to demand delivery or a refund. Document everything with screenshots.
Platform Dispute: If the merchant is unresponsive, file a formal dispute through the app’s "Return/Refund" or "Help Center" feature.
DTI Mediation: If the platform fails to resolve the issue, file a formal complaint with the Department of Trade and Industry (DTI). This can be done online through the DTI’s "No-Wrong-Door" policy or the Fair Trade Enforcement Bureau (FTEB).
Small Claims Court: For high-value items where mediation fails, consumers can file a case in Small Claims Court. This is a simplified legal process that does not require a lawyer.

VI. Prohibited Acts and Penalties

Engaging in "Deceptive Sales Acts" (claiming to have stock and taking payment with no intent to deliver) is a criminal offense under the Consumer Act. Violators can face:

Administrative fines ranging from ₱500 to ₱300,000.
Imprisonment of up to one year.
Revocation of business permits and licenses.