Consumer Rights for Counterfeit Products Bought on Online Platforms in the Philippines

Updated for the Philippine legal framework as of 2025.

1) What counts as a “counterfeit” product?

Counterfeit vs. defective. A defective good fails to meet quality/safety standards. A counterfeit good copies another’s brand, marks, packaging, or design in a way that infringes intellectual property (IP) rights (e.g., trademarks, patents, copyrights), or misleads consumers as to origin/quality. A product can be both counterfeit and defective.
Red flags: suspiciously low prices, misspellings on labels, lack of serial numbers/warranty cards, inconsistent packaging, and sellers refusing official receipts.

2) Core legal pillars that protect you

Consumer Act of the Philippines (Republic Act No. 7394).
- Outlaws deceptive, unfair, and unconscionable sales practices.
- Requires truthful labeling and advertising; prohibits sale of mislabeled, substandard, or hazardous goods.
- Gives consumers remedies against sellers and manufacturers (repair, replacement, rescission/refund, and damages in proper cases).
- “No Return, No Exchange” signs are unlawful for defective or misrepresented goods (they do not require change-of-mind returns).
Intellectual Property (IP) Code (Republic Act No. 8293, as amended).
- Selling or distributing counterfeit trademarked goods is civil and criminal infringement.
- Rights holders (and, in some cases, consumers harmed by counterfeits) may file civil actions for injunctions, damages, and destruction of seized goods; criminal actions carry fines and imprisonment.
E-Commerce Act (Republic Act No. 8792) + Rules on Electronic Evidence.
- Electronic contracts, records, screenshots, platform logs, and e-receipts are admissible and legally recognized.
- Facilitates proving online transactions.
Civil Code & special laws.
- Quasi-delict/tort liability for negligence leading to damage.
- Breach of warranty and fraud/misrepresentation doctrines support rescission and damages.
- Customs Modernization and Tariff Act (RA 10863) empowers the Bureau of Customs (BoC) to seize counterfeit imports.
- Data Privacy Act (RA 10173) protects your personal data during dispute processes with platforms and sellers.

Note on platform-specific policies and new regulations: Major platforms maintain counter-counterfeit programs and takedown mechanisms. Sector regulators (DTI, IPOPHL, BoC, NBI) coordinate enforcement. Proposed or recent e-commerce–specific legislation and department orders aim to clarify platform accountability; always check the latest DTI/IPO innovations when you proceed (but your rights below remain anchored in RA 7394, the IP Code, and general civil/criminal law).

3) Who can be held liable?

Primary seller/merchant. The first line of liability for counterfeit sales.
Distributors/importers. Those who put the product into Philippine commerce may be liable under consumer protection and IP law.
Manufacturers/brand owners (for warranties/recalls). Brand owners are not liable for the counterfeit but may assist investigations and verification.
Online platforms/marketplaces.
- Philippine law has been evolving on intermediary responsibility. While platforms are not automatically liable for every third-party listing, they risk administrative or civil exposure if they enable deceptive practices, ignore credible notice-and-takedown requests, or themselves advertise counterfeit goods. Many platforms voluntarily assume duties through their terms (seller verification, proactive monitoring, escrow/returns, and buyer protection programs).
- Practical effect: platforms may be required (by policy or regulator guidance) to delist sellers, preserve evidence, freeze payouts, or refund under their guarantees after investigation.

4) Your concrete rights when you receive a counterfeit

Right to accurate information & non-deceptive sales. If the item is counterfeit, you were misled—triggering remedies under RA 7394.
Right to a remedy against the seller:
- Rescission + Refund of the price, taxes, delivery fees, and reasonable incidental costs (e.g., return shipping, where policy or law requires).
- Replacement with a genuine item (if agreed and available).
- Damages for proven loss (e.g., consequential damages if the counterfeit caused property damage or injury).
Right to administrative assistance. You can pursue DTI mediation/complaints for unfair or deceptive sales practices.
Right to civil action. Sue for contract breach, misrepresentation, and, where applicable, tort.
Right to trigger IP enforcement. Coordinate with the brand owner or file with IPOPHL or law-enforcement if criminal infringement is involved.
Right to privacy and data security during the dispute (Data Privacy Act).
Right to use electronic evidence (E-Commerce Act + Rules on Electronic Evidence).

5) Step-by-step playbook (what to do immediately)

1) Preserve proof

Save the product, packaging, waybill, and all inserts.
Take clear photos/videos (logos, stitching, serials, labels, defects).
Capture screenshots: listing page, seller profile, chat, order page, e-receipt, payment confirmation, platform policy pages, and timestamps.
Download copies of invoices/ORs and the platform’s “authenticity guarantee” or return rules applicable on the purchase date.

2) Verify authenticity

Check the brand’s official authentication guides or serial checker.
Ask the seller for proof of purchase from authorized channels.
You may contact the brand or authorized service centers for a written assessment.

3) Use the platform’s dispute system (usually time-bound)

File a “counterfeit item” or “item not as described” claim within the platform’s deadline.
Request refund or replacement; ask that the seller’s payout be held pending resolution.
Ask the platform to preserve evidence (listing history, chats, payment logs) for possible legal action.

4) Escalate outside the platform (parallel or after)

DTI complaint (Unfair/Deceptive Sales Acts and Practices): seek refund/replacement and administrative sanctions against the seller.
IPOPHL complaint (if you wish to trigger IP enforcement): particularly useful if the seller is a repeat offender or selling in volume.
Law enforcement (NBI IP Rights Division, PNP) for criminal counterfeiting.
Bureau of Customs tip if the seller is importing in bulk.

5) Payment remedy routes

Credit/debit card: request a chargeback for counterfeit/merchandise not as described (coordinate with your issuing bank; provide evidence).
E-wallets/banks: invoke buyer protection and dispute channels specified in your user agreement and the operator’s complaints process.
Cash-on-Delivery: coordinate with the platform’s courier for return-to-sender procedures and evidence preservation.

6) Health & safety

If the counterfeit is food, cosmetics, medicines, electronics, toys, helmets, or other regulated products, report to FDA or DTI/BPS (standards). Stop using the item; counterfeits may pose real hazards.

6) Administrative paths: how they differ

A. DTI (Department of Trade and Industry)

Grounds: Unfair, deceptive, or unconscionable sales; noncompliance with labeling/standards; refusal to honor legal returns/warranties.
Relief: Mediation, orders to refund/replace/repair, administrative fines, suspension of operations or permits.
Venue: Where the consumer resides or where the transaction occurred (including online transactions).
What to file: Complaint form, valid ID, narrative, evidence bundle (see §5).
Good for: Quick consumer-level relief, even if the seller is a small entity or an online storefront.

B. IPOPHL (Intellectual Property Office of the Philippines)

Grounds: Trademark/copyright/patent infringement, unfair competition, online counterfeiting.
Relief: Enforcement actions, site/listing takedowns (where applicable), administrative fines, and coordination with law enforcement for seizures.
Good for: Persistent counterfeiters and systemic infringement beyond a single transaction.

C. Law enforcement / Prosecutors

Grounds: Criminal IP infringement, fraud.
Relief: Prosecution; confiscation and destruction of counterfeit goods; fines and imprisonment.
Good for: Deterrence and serious cases (public safety risk, high value, organized activity).

7) Civil litigation options

Breach of contract / rescission (return the counterfeit, get your money back, with interest and damages).
Tort/quasi-delict (if negligence caused loss/injury).
Unfair competition and IP infringement (injunction, damages, attorney’s fees).
Venue & jurisdiction: Small claims (up to the current monetary threshold) may apply if the principal relief is monetary and within limits; otherwise, regular civil courts.

8) Platform accountability & best practices

Know the platform’s buyer protection: authenticity guarantees, escrow/hold periods, return shipping rules, and deadlines.
Use official channels: Reporting a counterfeit through the platform often triggers stronger remedies (payout holds, seller suspension) than informal chats.
Demand data preservation: Ask the platform (in writing) to retain logs for at least 90–180 days while you pursue DTI/IPOPHL complaints.
Notice-and-takedown: If you also represent the IP rightsholder (or have their authorization), send formal notices referencing the IP Code and the specific mark/registration.

9) Evidence essentials (so your case doesn’t get thrown out)

Authenticity proof: comparison shots vs. genuine product; expert/brand assessment if available.
Transactional trail: order IDs, payment confirmations, courier scans, chats, listing URL and archived copies.
Chain of custody: keep the product unaltered; photograph the packaging as opened; record unboxing if possible.
Electronic evidence: store as PDFs with timestamps; keep raw image EXIF data.
Damages: receipts for related expenses (e.g., return fees, diagnostic checks).

10) Special sectors (extra protections & risks)

Food, drugs, cosmetics, medical devices: Counterfeits may violate FDA law; stronger enforcement, potential recalls, and health alerts.
Electrical/electronic goods: May breach Philippine National Standards (PNS); DTI-BPS can act; risk of fire/electric shock.
Automotive parts & helmets: Safety standards apply; keep the counterfeit off the road and report immediately.

11) Cross-border sellers and foreign platforms

Jurisdiction hurdles arise when the seller is abroad. Still:
- DTI can act on deceptive sales affecting Philippine consumers.
- IPOPHL cooperates internationally; BoC targets imports.
- Platforms usually have local entities or Philippine-facing terms that allow local dispute resolution.
Practical tip: pursue both platform remedies (fastest) and local administrative routes; use chargebacks where applicable.

12) Timelines, costs, and strategy

Act quickly: Platforms impose short windows (often 3–7 or 7–15 days) for counterfeit claims.
Choose the path: If your main goal is a refund, start with the platform and DTI. If the goal is to stop a serial counterfeiter, add IPOPHL or law enforcement.
Costs: Platform disputes are usually free; DTI mediation is low-cost; litigation is more expensive and time-consuming—reserve it for significant losses or principle-driven cases.

13) Template: short demand notice to a seller

Subject: Demand for Refund/Rescission – Counterfeit Goods Sold on [Platform], Order #[Order No.]

I purchased [Product] from your shop [Shop Name] on [Date] via [Platform]. The item received on [Date] is counterfeit and misrepresented as genuine, violating the Consumer Act (unfair/deceptive practice) and the IP Code.

I demand rescission of our sale and a full refund of ₱[Amount], including shipping, within five (5) days from receipt of this notice. I am preserving the product and evidence (photos, listing, receipt) and I will file a complaint with DTI and coordinate with IPOPHL and law enforcement if needed.

Please confirm the return and refund procedure.

[Name] [Address / Email / Mobile]

14) Frequently asked questions

Q: The seller says “no returns.” Is that valid? A: Not for defective or misrepresented goods. “No Return, No Exchange” policies cannot defeat your statutory rights.

Q: Do I have a right to a refund if I simply changed my mind? A: Philippine law does not mandate change-of-mind returns. Your right to a refund here depends on the platform/seller policy. Counterfeit/misrepresentation is different—you can rescind.

Q: The platform offered store credit. Must I accept? A: No. For counterfeit/misrepresented goods, you can insist on a cash refund unless you voluntarily agree otherwise.

Q: Can I keep the counterfeit and still get a refund? A: Usually, you must return the item (or surrender it for destruction in IP enforcement). Don’t resell it—selling counterfeits is unlawful.

Q: Can I complain even if the price was very low? A: Yes. Low price does not legalize counterfeiting or waive consumer rights.

Q: What if the counterfeit caused injury or damaged my property? A: Seek medical help, document everything, and consider civil and criminal actions for damages in addition to DTI/IP enforcement.

15) Practical checklist (print and follow)

Save the item, packaging, and receipts.
Photograph everything (close-ups of marks/labels/serials).
Screenshot listing, chats, seller profile, and policies.
File a platform claim (mark as “counterfeit”) within the deadline.
Demand refund/rescission; request payout hold and evidence preservation.
Prepare a DTI complaint packet; consider IPOPHL/law enforcement for serial sellers.
Consider a bank/e-money dispute or chargeback.
Do not resell or discard the counterfeit until the case ends.
If regulated goods, notify FDA/DTI-BPS for safety action.

Bottom line

When you unknowingly buy a counterfeit online, Philippine law gives you clear remedies: refund or replacement, administrative enforcement against the seller, and—if needed—civil damages and criminal prosecution for counterfeiting. Move fast, preserve proof, use the platform’s systems, and escalate to DTI and IP authorities for lasting relief and deterrence.