Consumer Rights to Demand Replacement—Not Merely a Refund—When an Online Order Arrives Incomplete

Philippine Legal Perspective

1. Why This Matters

With e-commerce sales in the Philippines projected to top ₱1 trillion this year, disputes over missing or incomplete items are now among the most common complaints received by the Department of Trade and Industry (DTI). Many buyers do not realize they may insist on a replacement—rather than take a forced refund—when the package delivered is short of what was promised.

2. Core Legal Sources

Source	Key Provisions Relevant to Incomplete Orders
Republic Act 7394 – Consumer Act of the Philippines	Art. 50 (deceptive sales acts), Art. 52 (misrepresentation), Art. 97–100 (liability & redress), Art. 68–71 (implied warranties)
R.A. 8792 – E-Commerce Act	Recognizes validity of electronic contracts, electronic evidence; puts online sellers on the same footing as brick-and-mortar merchants
DTI JAO 01-2020 (with DICT, NPC et al.)	Clarifies that all Consumer Act rights apply to online transactions; platforms must establish accessible redress mechanisms
DTI DAO 21-09 (2021)	Reinforces sellers’ duty to “repair, replace or refund at the consumer’s option” for defective or non-conforming goods sold online
Civil Code (on obligations & contracts)	Art. 1167, 1170 – specific performance; Art. 1599 – remedies of buyer in sales

Note: No single statute explicitly uses the phrase “incomplete order.” The right arises from the combined effect of the Consumer Act’s warranty and misrepresentation rules plus the buyer’s contractual remedy of specific performance.

3. The Right to Redress Under R.A. 7394

Implied Warranties (Art. 68–71). Goods must conform to the quantity and description stated in the offer.
Liability of Suppliers (Art. 97–100). The manufacturer, importer, distributor and retailer are solidarily liable for any non-conformity.
Consumer Remedies (Art. 97, 99). The buyer may demand (a) repair, (b) replacement, or (c) refund—at the consumer’s election, not the seller’s.
Period to Act. The law is silent on an exact timeline, so DTI guidelines fill the gap (typically 7 calendar days for online sellers unless a longer warranty is advertised).

4. How These Rules Apply to Online Transactions

4.1 “Distance Selling” = Same Duties, Extra Safeguards

R.A. 8792 treats electronic contracts as fully valid.
DTI JAO 01-2020 extends all Consumer Act protections to digital marketplaces.
Online sellers must display full product details before checkout; omitting or understating quantity may constitute a deceptive act (Art. 50).

4.2 Platforms & Logistics Providers

Marketplaces (e.g., Lazada, Shopee) are “e-tailers” under DAO 21-09. They must offer an in-platform return/replacement workflow and cooperate with DTI investigations.
Couriers can share liability if loss or partial loss occurs in transit (Civil Code Art. 1734; DTI may tag them as bailees in fact).

5. What Counts as an Incomplete Order

Scenario	Typical Remedy
One or more items missing from a bundle	Replacement of missing items (often shipped at seller’s cost)
Wrong quantity (e.g., ordered 10, received 8)	Ship the shortage or replace entire batch if homogeneous
Missing accessories/parts that render item unusable	Full replacement of product (not just the missing screw)
Partial e-voucher code delivered	Replacement of full functioning code or new voucher

6. Replacement vs. Refund: Who Decides?

Primacy of Buyer’s Choice. DAO 21-09 §§ 4–5 instruct sellers to offer all three remedies. For incomplete deliveries, replacement is usually the most appropriate because the consumer still wants the item.
When Refund May Override.
- Item is one-of-a-kind or out of stock.
- Delivery of replacement would cause unreasonable delay (DTI often uses 15 days as a soft cap for local sellers).
Proof Requirement. DTI memoranda encourage consumers to present unboxing videos or photos timestamped on the date of delivery. In the absence of such proof, DTI applies a “balance of probabilities” standard and may still side with the buyer if circumstances are persuasive.

7. Step-by-Step Guide for Consumers

Document Immediately. Take photos/video as soon as you discover missing items.
Notify Seller Within 7 Days (or the period stated in the shop policy) via the platform’s chat/email.
Formally Demand Replacement. Use clear language: “I opt for replacement of the missing item(s) under Art. 97, Consumer Act.”
Escalate to the Marketplace. File a dispute ticket; most platforms freeze payment to the seller pending resolution.
File a DTI Complaint if unresolved within 10 working days. Provide: order ID, screenshots, proof-of-payment, and your demand letter.
Mediation & Adjudication. DTI–FTEB will summon the seller; failure to appear may lead to default judgment ordering replacement or refund plus administrative fines.
Enforcement. If the seller still refuses, DTI may issue a Cease and Desist Order and impose penalties of up to ₱300,000 or 1 % of annual gross sales, whichever is higher. Criminal prosecution (up to 5 years) is possible for fraud.

8. Seller & Platform Liabilities

Actor	Duty	Liability for Breach
Seller/Merchant	Deliver goods in full, fit for purpose	Replacement/refund at buyer’s choice; administrative fines; criminal fraud
Marketplace	Provide redress channel; remove abusive listings	Joint/several liability if platform knew of systemic non-delivery
Courier	Safe carriage; record parcel weight	Liable for loss/shortage while parcel in custody

9. Relevant Jurisprudence & Administrative Rulings

DTI Case No. FTEB-R-2022-123 (2022). Online seller ordered to replace three missing lipstick units rather than issue partial cash refund; DTI held that “the consumer’s preference shall be controlling.”
DTI Adjudication Decision, Rey-Joy Trading (2021). Platform jointly fined for allowing repeated incomplete shipments after prior warnings.
SC Adm. Case No. 8226, Spade vs. De Guzman (2019). While not e-commerce-specific, Supreme Court affirmed that a buyer may sue for specific performance (delivery of missing parts) instead of rescission or refund.

(Full-text decisions are available on DTI and Supreme Court websites.)

10. Alternative Remedies

Credit-Card Chargeback. BSP-regulated banks must honor chargebacks for “goods not as described.”
Small Claims Court. Amounts ≤ ₱400,000 (increasing to ₱500,000 in 2026) may be claimed without a lawyer; court can order replacement or monetary value.
Online Dispute Resolution (ODR). Some marketplaces partner with ECC-Net (EU) or ASEAN ODR portals for cross-border transactions.

11. Practical Tips for Buyers

Read the seller’s return & replacement policy before checkout.
Save the delivery waybill; note the weight indicated.
Record unboxing—DTI treats video as “substantial proof.”
Act promptly; silence can be construed as acceptance (Civil Code Art. 1586).
When dealing with cross-border sellers, check if the platform’s warehouse in the Philippines can handle replacement logistics.

12. Practical Tips for Sellers

Inventory Checks. Photograph packed items with order number visible.
Clear Policies. State, “Buyer may choose replacement, repair, or refund under RA 7394.”
Swift Action. Offer replacement shipment within 48 hours of complaint to avoid chargebacks and bad reviews.
Keep Evidence. Retain CCTV footage of packing/shipping for at least 30 days.

13. Penalties Snapshot

Violation	Fine (₱)	Possible Imprisonment
Deceptive or false representation (Art. 124, RA 7394)	Up to ₱300,000 or 1 % of annual sales	1–5 years
Refusal to honor replacement/refund after DTI order	Additional fine up to ₱300,000 per day of continuing violation	Up to 5 years
Cyber fraud under RPC Art. 315 in relation to RA 10175	Depends on damage; reclusion temporal in its minimum period	6–12 years

14. Sample Demand Letter (extract)

Subject: Demand for Replacement of Missing Items – Order #2025-12345

Sir/Madam: I received my package dated 15 July 2025 with two (2) of the five (5) ordered LED bulbs missing. Pursuant to Articles 68 and 97 of Republic Act 7394 and DTI DAO 21-09, I hereby opt for replacement of the missing items within seven (7) days from receipt of this letter. Failing which, I will elevate the matter to the DTI-FTEB and seek appropriate penalties.

Very truly yours, [Signature]

15. Conclusion

Under Philippine law, an online shopper who receives an incomplete order has the statutory right to demand replacement—and that choice belongs to the consumer, not the seller. Armed with prompt documentation, a clear written demand, and the backing of DTI enforcement powers, buyers can confidently insist on getting exactly what they paid for.

Disclaimer: This article provides general information and is not a substitute for legal advice. For specific concerns, consult a Philippine lawyer or the DTI Consumer Care Hotline (1-384).