For buyers and sellers using Facebook/Instagram/TikTok live streams, marketplace live sessions, or other real-time online selling formats in the Philippines.

1) Legal foundations (what rules actually apply)

Civil Code of the Philippines (on Sales & Obligations). Governs when a sale is perfected, what counts as delivery, effects of breach, rescission, damages, penalty clauses, and earnest money. Key ideas below use these default rules unless a special consumer law says otherwise.
Consumer Act of the Philippines (Republic Act No. 7394). Prohibits deceptive and unconscionable sales acts (often relevant to surprise fees, one-sided cancellations, or refusal to refund for non-delivery). Provides administrative remedies via the Department of Trade and Industry (DTI).
E-Commerce Act (RA 8792). Confirms the legal effect and admissibility of electronic data messages, contracts, and e-signatures—so a “sold!” in chat, a checkout tap, or a DM confirmation can form a binding contract if essential terms are clear.
Data Privacy Act (RA 10173). Requires lawful, transparent processing of personal and payment data collected during live selling (privacy notices, security, limited retention).
Other frameworks that may come up.
- Credit/debit card & e-wallet rules (BSP regulations and network rules) affect chargebacks and reversals, but they are payment remedies, not substitutes for your statutory rights.
- Small Claims Procedure (Supreme Court rules). Lets consumers sue for money claims up to ₱1,000,000 without a lawyer (helpful for non-delivery or refund disputes).

Bottom line: Live selling is simply e-commerce. The same sales and consumer protection rules apply even though the pitch happens live on video and confirmation may happen via chat.

2) When is a live-sale “binding”?

A sale is perfected when there is meeting of minds on the object (what item) and the price. In practice, any of these can clinch it:

The seller states price + material terms during the live; buyer claims “mine,” “sold,” or sends order details and the seller accepts (explicitly or by confirming in DM/invoice).
The buyer completes checkout or pays a down payment/reservation fee after receiving the key terms.

Proof can be screenshots, chat logs, order forms, invoices, payment confirmations, and the live video itself. Under RA 8792, these are admissible as electronic evidence if properly retained.

3) Down payments, reservation fees, and “earnest money”

A) Definitions that matter

Down payment: Part of the price paid up front after a sale is perfected. It reduces the remaining balance.
Reservation fee / deposit: Often used to “hold” an item or slot. It may or may not be part of the price depending on the agreement.
Earnest money (Civil Code): By default, it is part of the price and proof of a perfected sale unless the parties clearly label it as option money (a fee to keep an offer open) or as a forfeitable deposit with explicit conditions.

B) Forfeiture rules (when can a seller keep it?)

The seller cannot automatically forfeit a down payment unless there is a clear, reasonable, and conscionable written stipulation disclosed before payment.
Clauses that let the seller keep all payments despite seller breach (e.g., non-delivery) or that impose grossly disproportionate penalties on the buyer are vulnerable as unconscionable under the Consumer Act or as void penalty clauses under the Civil Code (courts can reduce or nullify them).
If the seller cancels (without lawful cause), the buyer is generally entitled to full refund of the down payment plus possible damages.

C) Best-practice disclosures (protects both sides)

At or before accepting any upfront payment, the seller should display or send:

Item description (quantity, brand/model, condition), total price, delivery fee, lead time, return/refund policy, warranty, and cancellation rules (including down-payment treatment).
Whether a “reservation fee” is part of the price and exactly when it becomes non-refundable (e.g., only after ordering custom materials).

4) Cancellation policies in live selling

A) Buyer-initiated cancellation

Before shipment/production: Buyers may cancel; any forfeiture has to be expressly agreed, reasonable, and proportionate to actual loss (e.g., custom/personalized goods or perishable slots).
After shipment: Buyers can still cancel for lawful causes (e.g., seller’s delay beyond agreed window, wrong/defective item, misrepresentation). Otherwise, buyer bears return costs if the policy so provides and it is fair.
No general cooling-off period. Unlike the EU, PH law does not grant a universal “change-of-mind” return window for online purchases. Any such window comes from the seller’s policy or the platform’s program.

B) Seller-initiated cancellation

Must have valid cause disclosed up front (out-of-stock despite reasonable inventory controls, fraud risk, failed payment, address unverifiable, force majeure). Automatic cancellations that penalize the buyer without cause can be unconscionable.
If the seller cancels, they must promptly refund all payments. If the buyer has suffered measurable loss (e.g., took time off to receive a promised same-day delivery), damages may be claimed under the Civil Code.

C) “Unconscionable” red flags (likely unlawful)

“Down payment is always forfeited for any cancellation, even if we don’t deliver.”
“No refunds for delays, regardless of length.”
“All sales final” used to avoid liability for wrong item, mislabeling, or defects.
Hidden restocking fees or surprise add-ons not disclosed before checkout.

5) Non-delivery and late delivery

A) When is the seller in delay (default)?

If a delivery date or window was agreed and missed.
If no date was set, after the buyer demands delivery within a reasonable time and the seller fails to comply.
For time-certain (e.g., gifts needed by a date), failure to meet the date can justify rescission immediately.

B) Buyer remedies (choose what fits)

Specific performance: Demand delivery as promised (plus damages for delay, if any).
Rescission of the sale (undo the deal) and full refund of payments, plus damages where warranted.
Price reduction or repair/replacement (if goods delivered are defective or not as described).
Payment-channel remedies:
- Credit card/e-wallet chargeback/dispute where criteria are met (e.g., no-delivery, not-as-described). Use promptly and keep records.
Regulatory help:
- DTI mediation/complaint for deceptive or unconscionable practices; DTI can order refunds and impose administrative fines.
Court action:
- Small Claims (≤ ₱1,000,000) for refund/damages without a lawyer. Useful for straight money claims arising from non-delivery or breach.

Tip: Send a formal demand (email/DM + registered mail if possible) giving a clear deadline (e.g., “deliver by [date] or refund within 5 banking days”), then escalate.

6) Returns, refunds, and warranties

Statutory warranty concepts apply: If the item is defective, dangerous, or not as advertised, the buyer can demand repair, replacement, or refund within a reasonable time.
No-return/no-exchange disclaimers cannot defeat rights for defects or misrepresentation. They only apply to change-of-mind if clearly and fairly disclosed.
Hidden defects discovered later can still trigger remedies if reported within a reasonable period and not due to buyer misuse.

7) Platforms, couriers, and who is liable

Seller is typically your contractual counterparty; they remain liable for non-delivery, defects, and misrepresentation.
Couriers: Unless the agreement clearly transfers risk to the buyer upon handing to the carrier and that term is fair and conspicuous, consumer-facing practice is that risk stays with the seller until the buyer actually receives the item in good condition. Sellers should insure shipments for higher-value goods.
Platforms (marketplaces/social apps): Their policies may provide buyer protection, but these do not erase the seller’s legal duties. Use platform dispute tools in parallel with your legal remedies.

8) Documentation & evidence (what to keep)

For buyers:

Screenshots of the live (product, price, promises).
Chat/DM order confirmations and timestamps.
E-receipts, transfer proofs, invoices, waybills, unboxing photos/videos (showing seal/label and damage).
Demand letters and responses.

For sellers:

Timestamped listings/overlays used in the live.
Order sheets, invoices, courier hand-off logs, tracking, delivery proofs.
Clear policy pages sent before payment.

9) Model policy (seller-side) you can adapt

Cancellations & Down Payments

A ₱___ down payment confirms your order and is credited to the price.

It becomes non-refundable only if: (a) the item is custom/personalized and materials were already procured, or (b) you cancel within ___ hours of scheduled dispatch after we have packed/booked the courier. Otherwise, it is refundable.

Delivery

Standard lead time: – business days (Metro Manila), – (provincial). We will notify you of delays before the promised window ends. If we miss the agreed delivery window without your consent, you may cancel for a full refund.

Returns/Refunds

If an item is defective, incomplete, or not as described, report within 7 days of receipt with photos/video for repair, replacement, or refund at your choice (subject to availability). Change-of-mind returns are not accepted except as stated in this policy.

Contact

Email/DM: ______ | Hours: ______ | We resolve refund approvals within 5 banking days.

Keep it short, clear, and sent to the buyer before taking any payment.

10) Practical playbooks

A) Buyer: non-delivery after down payment

Message the seller; ask for a definite delivery date within 48–72 hours.
If no fix, send formal demand: deliver by [date] or refund within 5 banking days.
Start a platform dispute and, if applicable, a card/e-wallet chargeback.
File a DTI complaint (attach proof).
If still unresolved and the amount justifies it, file Small Claims for refund + allowable damages.

B) Seller: buyer cancels after you spent costs

Show the buyer the pre-disclosed policy and proof of costs (custom materials, booked courier).
Offer a proportionate deduction (e.g., actual packing + booking fee) rather than blanket forfeiture.
If buyer refuses, consider Small Claims for liquidated damages only if your clause is reasonable and well-documented.

11) Frequently asked edge cases

“Sold” in chat but buyer vanishes. If no payment and you cannot reasonably reach them, cancel and resell. You can only keep a reservation fee if a clear policy allowed forfeiture and you actually held the item.
Price mistake flashed on screen. If it’s an obvious error (e.g., ₱1 instead of ₱1,000), the seller can correct promptly; good faith matters. But if the seller repeatedly uses “errors” to bait orders, that’s deceptive.
Partial deliveries. Buyer may accept partial, reject the rest, or rescind if the remainder is essential and delayed.
Perishables/cosmetics. Hygiene/perishables policies can limit returns for change-of-mind; defects/mislabeling still require remedy.

12) Compliance checklist (quick)

For Sellers

Clear pre-payment disclosure (price, fees, shipping time, return/refund, cancellation, down-payment rules).
Written order confirmation (item, price, ETA, address).
Privacy notice + secure handling of IDs/addresses.
Receipts/invoices issued.
Fast path for complaints (SLA: acknowledge in 24h, resolve in 5 banking days).
Keep proof: packing photos, waybills, tracking logs.

For Buyers

Screenshot price/claims during the live.
Pay through traceable channels.
Unbox on video for high-value items.
Read the policy before paying any reservation/down payment.
Act quickly if there’s a delay (demand, platform dispute, DTI/Small Claims).

13) Key takeaways

Down payments are generally part of the price; forfeiture requires a fair, clear, pre-disclosed basis.
No universal cooling-off in PH online sales; cancellation depends on lawful cause or seller policy.
Non-delivery → choose delivery, refund, or rescission, then escalate (platform, DTI, Small Claims).
Keep records. In live selling, evidence wins cases.

This article provides general information on Philippine consumer rights in live selling. For high-stakes disputes or complex facts (e.g., large custom orders, cross-border sellers), consult a Philippine lawyer for tailored advice.