I. Introduction

The explosive growth of e-commerce in the Philippines has transformed marketing and promotional strategies, shifting traditional advertising into the digital realm through social media marketplaces, influencer collaborations, livestream selling, flash sales, and targeted digital campaigns. While this digital landscape offers unprecedented reach and efficiency, it also imposes stringent legal and ethical obligations on online merchants, digital platforms, marketers, and influencers.

The Philippines has developed a robust regulatory framework that combines landmark legislation such as the Electronic Commerce Act of 2000 (RA 8792), Data Privacy Act of 2012 (RA 10173), Consumer Act of the Philippines (RA 7394), Cybercrime Prevention Act of 2012 (RA 10175 as amended), Intellectual Property Code (RA 8293 as amended), Philippine Competition Act (RA 10667), and most crucially, the Internet Transactions Act of 2023 (RA 11967). These laws, together with implementing rules from the Department of Trade and Industry (DTI), National Privacy Commission (NPC), Securities and Exchange Commission (SEC), and Bangko Sentral ng Pilipinas (BSP), as well as self-regulatory codes from the Advertising Standards Council (ASC), govern virtually every aspect of online marketing and promotions.

This article comprehensively examines the legal requirements, prohibited practices, ethical standards, and compliance obligations that all participants in Philippine e-commerce marketing must observe.

II. Foundational Legislation

A. Republic Act No. 11967 – Internet Transactions Act of 2023 (ITA)

Enacted in December 2023 and fully effective by 2025, the ITA is now the primary law governing e-commerce in the Philippines. It created the E-Commerce Bureau under the DTI and explicitly covers:

Online merchants
Digital platforms (e-marketplaces, social commerce, livestream platforms)
E-retailers
Online service providers
Influencers and content creators engaged in commercial promotions

Key marketing-related provisions:

Mandatory registration of online businesses with DTI exceeding certain revenue thresholds (P500,000 annual gross sales for individuals, higher for corporations).
Obligation of digital platforms to implement know-your-business (KYB) procedures and verify merchant identities.
Requirement to display complete business name, address, contact details, and DTI registration number on all online storefronts and promotional materials.
Prohibition against “ghost merchants” and anonymous selling.
Joint and several liability of digital platforms for violations committed by merchants using their services when the platform fails to act on valid complaints.

B. Republic Act No. 10173 – Data Privacy Act of 2012

The DPA and its 2022 Revised Implementing Rules and Regulations (IRR) remain the cornerstone for all forms of digital marketing involving personal data.

Critical obligations for marketers:

Lawful processing requires explicit, informed, and specific consent for marketing purposes (opt-in, never pre-ticked boxes).
Separate consent must be obtained for promotional communications versus transactional communications.
Rights of data subjects: right to be informed, object (opt-out), damages, data portability, and erasure (“right to be forgotten” in certain cases).
Mandatory registration of automated processing systems used for profiling and targeted advertising with the NPC if the system affects a significant number of data subjects.
Data sharing with third-party marketing agencies or influencers requires a valid data sharing agreement and separate consent from data subjects.

Violations carry administrative fines of up to ₱5,000,000 per violation (2025 rates), criminal penalties, and civil damages.

C. Republic Act No. 7394 – Consumer Act of the Philippines

Articles 48–62 explicitly prohibit deceptive and unfair sales acts and practices, fully applicable to online transactions.

Prohibited practices in digital marketing include:

False or misleading representations regarding price, quality, sponsorship, endorsement, standard, or origin
Bait advertising (advertising products not actually available or with intent not to sell as advertised)
Fake reviews, fake stock counters, fake timers (“only 2 left!” when inventory is abundant)
Hidden fees revealed only at checkout
False “free trial” offers that automatically enroll consumers into paid subscriptions without clear disclosure

III. Specific Rules on Online Advertising and Promotions

A. Truth in Advertising and Material Disclosures

All advertising claims must be truthful, accurate, and substantiated before dissemination (ASC Code of Ethics, Article 3; DTI DAO 2021-01).

Required disclosures in digital promotions:

#Ad, #Sponsored, #Gifted, or #Collab must be conspicuous when material connection exists (ASC Guidelines on Digital Advertising, 2022).
Price representations must show the total final price inclusive of VAT, shipping, and all non-waivable fees.
“Up to” claims (e.g., “up to 70% off”) are permissible only if a substantial quantity of items is available at the maximum discount.
Comparative advertising is allowed only if comparisons are factual, verifiable, and not misleading.

B. Influencer and Endorser Marketing

Influencers are considered “advertisers” under Philippine law when they receive any form of consideration.

Mandatory requirements:

Clear and conspicuous disclosure of material connection at the beginning of posts, videos, and stories (not buried in hashtags or links).
Endorsers must have actually used the product and their statements must reflect honest opinions/experiences (ASC Code, Article 8).
Liability extends to both brand and influencer for false or unsubstantiated claims.
Brands must implement reasonable monitoring programs and written contracts specifying compliance obligations.

C. Promotional Contests, Raffles, and Giveaways

Online promotions involving chance or consideration are heavily regulated:

Promotions that require purchase as a condition of entry may be considered illegal lotteries under the Revised Penal Code unless properly structured.
DTI approval is not generally required for pure skill contests or sweepstakes without purchase requirement, but terms and conditions must be complete and conspicuously posted.
Mandatory provisions in rules: full mechanics, criteria, prize details, deadline, winner selection process, and notification method.
Prohibited: “Tag-to-enter” schemes that violate platform terms or encourage spam; fake giveaways designed only to harvest data.

D. Flash Sales, Limited-Time Offers, and Scarcity Claims

Pressure-selling tactics are permissible only when genuine:

“Limited stock” or countdown timers must reflect actual inventory or time limits.
Automatic extension of timers after expiry constitutes deception.
Queue systems (e.g., Shopee/Lazada virtual queues) must be fair and transparent.

IV. Intellectual Property Considerations in Marketing

Use of trademarks, copyrighted material, or personality rights in online campaigns requires:

Valid license or authorization for third-party logos, music, images, or celebrity likeness
Proper attribution for user-generated content repurposed in marketing
Compliance with the IP Code’s fair use provisions (very limited for commercial advertising)
Prohibition against keyword bidding on competitors’ trademarks (considered trademark infringement under jurisprudential developments)

V. Ethical Principles and Self-Regulation

Beyond legal minimums, the advertising industry adheres to the Code of Ethics of the Advertising Standards Council (ASC), updated in 2022 for digital media.

Core ethical principles:

Advertising shall be truthful, decent, legal, honest, and mindful of social responsibility.
Special care must be taken when advertising to children (no exploitation of credulity, no direct “buy now” exhortations).
Respect for cultural, religious, and moral sensitivities (avoidance of content offensive to Filipino values).
Environmental claims must be substantiated (“eco-friendly,” “biodegradable” require scientific evidence).
Dark patterns (confusing interfaces designed to trick users into purchases or subscriptions) are considered unethical and increasingly treated as deceptive under the Consumer Act.

VI. Penalties and Enforcement

Violations attract layered sanctions:

DTI: cease-and-desist orders, website blocking, administrative fines up to ₱2,000,000 (ITA)
NPC: fines up to ₱5,000,000 per violation plus criminal imprisonment
Consumer Act: administrative fines ₱500–₱300,000, criminal penalties up to 1 year imprisonment
Cybercrime Act: online libel (for false advertising harming reputation) carries up to 12 years imprisonment
Civil damages and class-action suits increasingly common

Digital platforms face joint liability under RA 11967 for failing to act on valid takedown requests within prescribed periods.

VII. Best Practices for Compliance

Implement comprehensive compliance programs including employee/influencer training.
Maintain detailed substantiation files for all advertising claims for at least three years.
Use double opt-in for marketing communications and honor opt-out requests within 48 hours.
Conduct regular privacy impact assessments for new campaigns.
Draft clear, consumer-friendly terms and conditions and privacy policies in Filipino and English.
Engage legal counsel specializing in digital law for campaign reviews.

VIII. Conclusion

E-commerce marketing in the Philippines operates in one of Asia’s most regulated digital environments. The combination of the Internet Transactions Act of 2023, strengthened data privacy enforcement, aggressive consumer protection implementation, and active self-regulation by the ASC has created a framework that demands transparency, accountability, and respect for consumer rights.

Businesses that treat compliance not as a burden but as a competitive advantage—building trust through honest, respectful, and privacy-conscious marketing—will thrive sustainably in the Philippine digital marketplace. Those that prioritize short-term gains through deceptive or unethical practices face severe financial, reputational, and criminal consequences in an enforcement landscape that has become increasingly sophisticated and unforgiving by 2025.