A comprehensive, practice-oriented guide for consumers and businesses

1) What counts as a “vendor scam”?

A vendor scam happens when a seller—offline or online—uses deceit or abuse of confidence to obtain money, goods, or data, or fails to deliver what was promised. Typical forms include:

Selling counterfeits or substandard goods as genuine
Non-delivery or delivery of a different/defective item after payment
Bait-and-switch pricing and hidden charges
Fake shops/impersonation, including spoofed websites, marketplace storefronts, and social pages
Investment-style “supplier” offers (advance-fee schemes)
Invoice/PR/PO fraud against businesses
Card-not-present payment fraud and account takeovers (ATO)

2) Key legal bases you can invoke

A. Criminal liability

Estafa (Swindling) – Revised Penal Code (RPC) Art. 315. Covers deceit (false pretenses, fraudulent acts) or abuse of confidence causing damage or prejudice. Modalities include misrepresentations about identity/capacity, falsified receipts/invoices, and schemes like soliciting payment knowing delivery will not occur.
B.P. Blg. 22 (Bouncing Checks Law). If the scam uses a check issued without sufficient funds or with knowledge it would be dishonored.
Cybercrime Prevention Act (R.A. 10175). Adds liability (and special jurisdiction, higher penalties) for online modalities: computer-related fraud, identity theft, illegal access/interception, and use of information and communications technologies (ICT) to commit estafa.
Access Devices Regulation Act (R.A. 8484). For credit/debit card and access-device fraud.
Securities Regulation Code (R.A. 8799) & Revised Corporation Code. For “supplier investment” or “wholesaler franchise” scams that actually solicit investments or sell unregistered securities.
Intellectual Property Code. For counterfeit goods and willful trademark/copyright infringement.
Special penal laws (as applicable): anti-fencing (if dealing in stolen goods), anti-photo and video voyeurism, etc.

Note on prescription: Criminal actions prescribe after periods that vary by penalty and statute (RPC Arts. 90–91; special laws have their own rules). File promptly.

B. Civil remedies under the Civil Code

Breach of contract / specific performance / rescission (Arts. 1170, 1191).
Damages: actual/compensatory, moral, exemplary, nominal/temperate; attorney’s fees (Art. 2208).
Torts (quasi-delict) for negligent enablement or platform mishandling (Art. 2176).
Sales warranties:
- Hidden defects (accion redhibitoria rescission / accion quanti minoris price reduction).
- Express warranties in ads/listings may bind the seller.
Unjust enrichment where appropriate.

Civil prescription (typical): written contracts – 10 years; oral – 6 years; tort – 4 years (check facts to compute precisely).

C. Consumer protection & administrative enforcement

Consumer Act (R.A. 7394) – deceptive, unfair, and unconscionable sales acts and practices; product/service quality and implied warranties; labeling and price tag rules.
- DTI (Fair Trade Enforcement Bureau / regional offices) handles most retail and e-commerce consumer complaints.
E-Commerce Act (R.A. 8792) & Rules on Electronic Evidence (A.M. No. 01-7-01-SC). Recognize electronic documents and digital signatures; set evidentiary rules for screenshots, emails, platform logs.
Internet Transactions Act (R.A. 11967). Establishes duties of online merchants, e-retailers, and e-marketplaces/platforms: registration/traceability, notice-and-takedown, disclosure, and dispute mechanisms, with DTI as the e-commerce authority.
Financial Consumer Protection Act (R.A. 11765). For bank/e-money/fintech issues (chargebacks, unauthorized debits), with BSP and covered institutions.
Data Privacy Act (R.A. 10173). When scams involve unauthorized processing or data breaches—complaints to the National Privacy Commission (NPC).
SEC (Enforcement and Investor Protection Department): pyramid schemes, investment solicitations; IPOPHL: counterfeit/IP violations.

3) Choosing your path: criminal, civil, administrative—or combined

Path	When to use	What you can get	Typical timeline & cost	Who handles it
Criminal complaint	Clear deceit/abuse of confidence; online fraud; counterfeit with intent to defraud	Arrest/penalties; restitution via civil liability ex delicto	Prosecutor evaluation (inquest/regular), then trial	City/Provincial Prosecutor; courts
Civil suit	You want refund, replacement, damages; contract breaches	Money judgment, rescission, specific performance, injunction	Pleadings, pre-trial, trial; can seek preliminary attachment/injunction	RTC/MTC
Small Claims	Pure money claim up to the current small-claims threshold	Fast, paper-based; no lawyers’ appearance (generally)	Weeks to a few months	MTC/MTCC/MeTC
DTI complaint / mediation / adjudication	Retail e-commerce disputes, deceptive sales	Refund/repair/replacement, administrative fines, compliance orders	Often faster and cheaper	DTI
Platform remedies	Marketplace or payment platform breach of duties	Takedown, seller sanctions, refunds per policy	Fastest initial relief	Platforms/PSPs
Sector regulators	Investments, banking, insurance, telco	Fines, cease-and-desist, restitution in some cases	Varies	SEC, BSP, IC, NTC

You can pursue criminal and civil cases simultaneously, and also file administrative complaints (e.g., DTI) in parallel, subject to forum and litis pendentia considerations.

4) Immediate steps after discovering a scam

Stop further payments. Freeze or reverse where possible (card chargeback, bank dispute, e-wallet support).
Preserve evidence following the Rules on Electronic Evidence:
- Full-page screenshots (include URL, date/time, order ID).
- Emails/SMS with headers and timestamps.
- Chat logs exported from platforms.
- Receipts, transaction references, shipping airway bills, photos/videos of items on receipt.
- If feasible, obtain platform activity logs or confirmations.
Record identities: seller’s names, numbers, handles, account numbers, IMEI/MAC (if shown), marketplace store links.
Send a demand letter (for civil/DTI cases; often a prerequisite for damages and good for settlement leverage).
Report promptly to:
- DTI (consumer complaint portal or nearest office)
- NBI – Cybercrime Division and/or PNP Anti-Cybercrime Group (for criminal cases)
- Platform/marketplace and payment service provider (invoke buyer protections)
- SEC (if investment features exist) and NPC (if personal data misuse occurred)

5) How to file a criminal complaint (estafa and related)

A. Inquest vs. regular filing

Inquest if the suspect is arrested without warrant (hot pursuit/entrapment).
Regular filing: submit Sworn Complaint-Affidavit and evidence to the Office of the City/Provincial Prosecutor with IDs and annexes.

B. Elements to establish (estafa by deceit)

The accused made a false pretense or fraudulent act (e.g., fake identities, fabricated order/shipping claims).
The victim relied on it and parted with money or property.
There is damage or prejudice (including temporary prejudice).
For online cases, show use of ICT (screens, metadata, platform records) to invoke R.A. 10175.

C. Practical tips

Attach proof of payments (bank slips, e-wallet ref nos.).
Link the digital persona to a real person (SIM/ID, IP logs, bank accounts, delivery pick-up, CCTV, rider testimony).
Consider entrapment with police if there is an ongoing pattern.
Ask for issuance of subpoenas to platforms/PSPs for logs and KYC under prosecutorial powers or court process.

6) Civil and commercial remedies you should not overlook

A. Contract and tort claims

Specific performance (deliver the correct item) or rescission with damages.
Writs to secure assets while the case is pending:
- Preliminary attachment (Rule 57) for fraud at contracting.
- Preliminary injunction/TRO (Rule 58) to stop ongoing sales or transfers.
- Replevin (Rule 60) to recover specific goods.

B. Small Claims (fast track)

For purely money claims up to the current threshold (check the latest limit; it has been raised in recent amendments).
Forms are standardized; lawyers generally cannot appear for parties (except when the party is a lawyer or as allowed).
Typical attachments: proof of purchase, delivery, defect, demand letter, and identification.

C. Consumer Act & implied warranties

If a product is not of merchantable quality or not as described, you can demand repair, replacement, or refund.
“No Return, No Exchange” policies are unlawful when asserting statutory or implied warranties.

D. Lemon Law (R.A. 10642)

For brand-new motor vehicles with nonconformities not repaired after a reasonable number of attempts within the statutory period—replacement or refund may be ordered.

7) Online marketplace and platform accountability

Under the E-Commerce Act and Internet Transactions Act framework:

Merchants must disclose true identities, business names, addresses, and contact details; comply with taxes and DTI/BN registration where applicable.
E-marketplaces/platforms have duties of diligence: KYC, takedown of illicit listings upon notice, cooperation with regulators, and transparent dispute resolution.
Failure of a platform to act on specific, well-documented notice can support claims for contributory liability or administrative sanctions.
Keep your ticket/case numbers and correspondence to show notice and failure to act.

8) Barangay conciliation, venue, and forum selection

Barangay conciliation (Katarungang Pambarangay) is generally required for disputes between natural persons who live in the same city/municipality and not among the enumerated exceptions.
Not required where parties reside in different cities/municipalities, where one party is a juridical person, or where the relief is urgent (e.g., injunction/attachment) or the dispute is criminal subject to inquest/regular filing.
Venue for personal civil actions: where the plaintiff or defendant resides, unless a valid written venue stipulation exists. For online sellers, you can often sue in your city/municipality if allowed by the Rules.

9) Evidence strategy: making e-evidence count

Best evidence for digital claims:
- Original electronic files or forensic images, with hash values and chain of custody if authenticity will be contested.
- Platform certifications (business records exception) or subpoenaed logs.
- Notarized affidavits of buyers, riders/couriers, and warehouse personnel.
Corroborate identity: delivery addresses, selfie-KYC screenshots (if any), bank account names linked to transfers, SIM registration traces (via law enforcement), and social graph links.
Compute damages carefully**:** include price, shipping, customs, rework, inspection costs, lost profits (if provable), and moral/exemplary damages where deceit is egregious.

10) Special scenarios

Business-to-Business (B2B) scams: Use commercial arbitration if your contract has an arbitration clause (R.A. 9285). Consider writ of preliminary attachment early.
Cross-border sellers: You may still proceed in PH if elements of the offense occurred here or a protected system/user is here (cybercrime extraterritoriality). For civil suits, confirm forum selection and governing law clauses; otherwise rely on regular venue rules and serve via letters rogatory/Hague Service where available.
Counterfeits: Pair DTI consumer complaint with IPOPHL/Customs action and, if appropriate, criminal IP infringement.
Data theft during the scam: File with NPC for privacy violations and ask for compliance orders, breach notifications, and fines.

11) Practical playbooks

A. Consumer bought online; item never arrived

Collect order page, chat, payment, tracking (or lack thereof).
File platform dispute; simultaneously lodge DTI complaint and bank/e-wallet dispute.
If deceit is clear, prepare estafa complaint (with messages showing false pretenses).
If seller identified in PH, consider small claims for refund + costs.

B. SME paid “supplier” after forged PO/invoice

Freeze outgoing transfers; notify bank and clients.
Execute incident report + preserve email headers and domain records.
File NBI/PNP-ACG complaint (estafa + cybercrime), ask for subpoenas to hosting/registrar/PSPs.
Seek preliminary attachment in a civil case to secure funds.

C. Received counterfeit goods

Laboratory/brand verification report + side-by-side photos.
DTI complaint (deceptive sales + warranty) and IPOPHL complaint; consider criminal IP case.
If seller persists, file civil suit with injunction to stop sales.

12) Settlement, restitution, and enforcement

Mediation (DTI/courts/online platforms) often yields quicker refunds or replacements.
Court judgments can be enforced through levy/garnishment, examination of judgment obligor, and contempt for non-compliance.
In criminal cases, pursue civil liability within the criminal action; courts can award restitution, reparation, and indemnification.

13) Costs, risks, and ethics

Factor filing fees, service of summons, bond premiums for writs, and expert/forensic costs.
Avoid forum shopping and multiplicity of suits; align your criminal, civil, and administrative strategies.
Keep communications professional; avoid defamatory public posts that could create counter-exposure.

14) Templates (short, usable checklists)

Demand Letter (essential elements)

Parties; transaction references; timeline of facts; legal grounds (Consumer Act/RPC estafa elements, warranties); demands (refund/replace/repair); deadline (e.g., 5–10 days); intent to sue and report. Attach copies of key proof.

DTI Complaint Packet

Accomplished form; IDs; proof of transaction; demand letter; screenshots; defective item photos; preferred remedy.

Criminal Complaint-Affidavit

Affiant’s identity and authority; narrative of deceit and reliance; annexed digital proof; prayer for subpoenas and prosecution.

15) Frequently asked questions

Q: Do I need to go to the barangay first? A: Only if the dispute is between natural persons residing in the same city/municipality and not otherwise excepted. Criminal complaints and many cross-city/online disputes are not covered.

Q: Can I sue the platform? A: Possibly, if it breached statutory/platform duties (notice-and-takedown, verification, disclosures) and this contributed to the harm. Start with DTI under consumer/e-commerce rules; assess civil liability thereafter.

Q: How do I prove the scammer’s identity? A: Combine payment rails (bank/e-wallet KYC), delivery trail, device/IP logs via subpoena, and witness testimony. Consistency across data points persuades prosecutors and judges.

Q: What if the seller is abroad? A: You can often proceed in the Philippines for online fraud impacting you here; enforcement may require asset tracing, mutual legal assistance, or going after local intermediaries/assets.

16) Bottom line

Vendor scams are actionable in the Philippines through a three-track strategy:

Criminal (estafa/cybercrime and related offenses),
Civil (contract/tort, damages, injunctions, small claims), and
Administrative (DTI, SEC, BSP, NPC, IPOPHL), augmented by platform remedies.

Success turns on fast evidence preservation, clear legal theory, and choosing the right forum(s)—often in parallel. When in doubt, consult counsel early to align remedies, secure assets, and move swiftly.