In the digital age, the convenience of e-commerce comes with the inherent risk of non-delivery and disputes over refunds. For Filipino consumers, navigating these issues requires an understanding of a robust legal framework designed to protect them from unfair trade practices.

1. The Legal Framework

Consumer protection in the Philippines is primarily governed by Republic Act No. 7394, otherwise known as the Consumer Act of the Philippines. With the rise of online transactions, this is supplemented by:

Republic Act No. 8792 (Electronic Commerce Act of 2000): Grants legal recognition to electronic data messages and documents in commercial activities.
Joint DTI-DA-DOH Administrative Order No. 01, Series of 2008: Specifically addresses consumer protection in e-commerce.
Republic Act No. 11967 (Internet Transactions Act of 2023): The most recent legislation aimed at strengthening the regulation of e-commerce to protect both consumers and merchants.

2. Right to Delivery and Performance

When a consumer purchases an item online, a contract of sale is perfected. The seller has the primary obligation to deliver the "determinate thing" within the agreed-upon period.

Non-Delivery and Delay

If a seller fails to deliver the goods on time, the consumer has the following rights:

Specific Performance: The right to demand that the seller deliver the item immediately.
Rescission (Cancellation): If the delay is substantial or if the seller informs the buyer they cannot fulfill the order, the buyer may cancel the contract and demand a full refund.
Damages: Under the Civil Code, those who are guilty of fraud, negligence, or delay in the performance of their obligations are liable for damages.

3. The "No Return, No Exchange" Policy is Illegal

One of the most common misconceptions in Philippine retail is the "No Return, No Exchange" policy. The Department of Trade and Industry (DTI) explicitly prohibits this.

Important Note: Sellers cannot deny a return or exchange if the goods are defective, or if the delivered item does not match the description provided at the time of purchase. However, the law does not allow a return or refund solely because the consumer had a "change of mind."

4. Grounds for Refunds and Replacements

Under the Consumer Act, a consumer is entitled to a repair, replacement, or refund in the following instances:

A. Hidden Defects

If the product has a defect that was not visible at the time of purchase and renders the item unfit for its intended use, the seller is liable.

B. Misrepresentation or Breach of Warranty

If the item delivered is significantly different from what was advertised (e.g., wrong brand, wrong specifications, or a counterfeit item sold as "original"), the consumer has the right to return it.

C. Failure to Deliver

If the goods never arrive, the consumer is entitled to a 100% refund of the purchase price, including shipping fees, unless the delay was caused by the consumer or a fortuitous event (force majeure).

5. Liability of E-Commerce Platforms

Under the Internet Transactions Act of 2023, digital platforms (like Shopee, Lazada, or TikTok Shop) share a degree of responsibility. While the primary liability lies with the merchant, the platform can be held subsidiarily liable if:

They failed to exercise due diligence in verifying the merchant.
They failed to take down a merchant after receiving a notice of a violation.
The merchant is not registered in the Philippines and the platform failed to provide a means to reach them.

6. Steps to Take for Undelivered Goods or Refund Denials

Step 1: Internal Dispute Resolution

Most major platforms have a "Refund/Return" button. Initiate this within the platform's guarantee period. Keep screenshots of your chat with the seller and photos/videos of the parcel (if the item was wrong or damaged).

Step 2: Formal Demand Letter

If the seller or platform refuses to cooperate, send a formal demand letter via email or registered mail. State the facts, the legal basis (Consumer Act), and a deadline for the refund.

Step 3: File a DTI Complaint

If the demand is ignored, you may file a formal complaint with the DTI Fair Trade Enforcement Bureau (FTEB).

Mediation: The DTI will first attempt to mediate between you and the seller.
Adjudication: If mediation fails, the case proceeds to adjudication where the DTI can impose fines and order refunds.

7. Key Takeaways for Online Shoppers

Document Everything: Always record a video while unboxing high-value items ("Unboxing Video") as it serves as primary evidence in Philippine dispute resolutions.
Check SEC/DTI Registration: For independent websites, verify if they are registered businesses.
Use Secure Payment Channels: Use the platform’s built-in payment systems rather than direct bank transfers to ensure "Buyer Protection" remains active.