Reporting an Online-Seller Scam to the Department of Trade and Industry (DTI) – Philippines
A comprehensive legal-practice guide
1. Why the DTI? - Statutory mandate
| Legal basis | Key provisions relevant to online-seller scams |
|---|---|
| Republic Act (RA) 7394 – Consumer Act of the Philippines | • Art. 50-56 define “deceptive sales acts,” including online misrepresentations. • Art. 100-115 empower the DTI to investigate, mediate, and adjudicate consumer complaints involving “consumer products and services” up to ₱500,000. |
| RA 8792 – E-Commerce Act (2000) | Gives the DTI primary rule-making authority over electronic commercial transactions and recognizes digital documents, screenshots, e-receipts, etc. as admissible evidence. |
| RA 9502 / RA 7581 / Price-Tag & Price Acts | Overpricing, bait-and-switch, and “no-refund” policies fall under DTI’s price-stabilization & fair-trade powers. |
| RA 9485 (Ease of Doing Business/Anti-Red-Tape Act) & RA 11032 | Guarantee simplified, time-bound complaint handling (e.g., 3-day acknowledgment; 15-day action). |
| DTI Department Administrative Order (DAO) 10-02 s.2022 | Sets mandatory online-seller disclosures: business name, physical address, price, return & warranty terms. Non-compliance is prima facie evidence of unfair trade. |
| Civil Code Arts. 1398-1399, 2187 | Contract rescission and quasi-delict liability for defective or mis-described goods. |
2. Scope of DTI jurisdiction
- Parties – Individual consumers or micro, small and medium enterprises (MSMEs) acting on the consumer side may file.
- Amount – Claims ≤ ₱500,000 (exclusive of damages, interests, costs) are heard by a Consumer Arbitration Officer (CAO); higher amounts go to the regular courts.
- Subject matter – Tangible goods and “digital products representing value” (e-vouchers, game currency, NFTs marketed as goods). Services (e.g., ticket re-booking fees) are also covered.
- Sellers abroad – The DTI can issue blocking orders against errant websites under DAO 10-02 and coordinate with DICT-NBI-ACG for takedowns, but recovery of money depends on cooperation treaties and payment processors.
3. Evidence checklist – “Capture everything digital”
| Evidence | Tips |
|---|---|
| Screenshots or screen-recordings of the product listing, chat, checkout page, and seller profile | Make sure the date/URL bar is visible. Use the device’s built-in screen-record or Ctrl+Shift+S on Windows 11. |
| E-mail/SMS confirmations, payment receipts, e-wallet logs (GCash, Maya, bank) | Download the PDF/CSV or request statement from the provider; these bear authenticity codes. |
| Photos/video of the item received, including packaging and airway bill | Shoot in 1080p; show measuring tape or scale if size/weight is disputed. |
| Return/refund attempts | Preserve timestamps of unanswered calls or chat messages to show refusal to address complaints. |
| Notarized Sworn Statement/Affidavit of Complaint | Not strictly required at filing but speeds up docketing and summons. |
4. The step-by-step DTI complaint process
Initial Contact / Hotline 1-DTI (1-384) • Useful for quick advice and determining proper venue (regional/ provincial office). • The officer logs the inquiry; this call record can later corroborate your diligence.
Filing the Complaint
Where How Online: e-Consumer Complaint System (e-CCS) Portal – https://consumer.dti.gov.ph Upload PDF Complaint Form + evidence (< 20 MB)
Auto-generated tracking number (e.g., NCR-FTEB-23-00123).E-mail: consumercare@dti.gov.ph / consumer.welfare@dti.gov.ph Same attachments; expect acknowledgment within 3 working days (RA 11032). Walk-in: DTI Fair Trade Enforcement Bureau (FTEB) – 3F UPRC Bldg., 315 Sen. Gil Puyat Ave., Makati; or any DTI Provincial Office Bring printed sets; filing is free. Complaints against online transactions need not observe respondent’s place of business—you may file where you reside (DAO 2-92). Evaluation & Summons (5 working days) • DTI issues a Notice to Answer to the seller, requiring a verified answer within 10 calendar days. • If the seller is on a platform (Shopee, Lazada, FB Marketplace), both the merchant and platform may be summoned.
Mediation Conference (within 10 days after answer) • Handled by a DTI Mediation Officer (success rate ≈ 60 %). • Possible outcomes: refund, replacement, repair, or price reduction. • Settlement agreement is enforceable as a compromise judgment under Rule 13 of the Rules on Alternative Dispute Resolution.
Adjudication by Consumer Arbitration Officer • If mediation fails, the CAO hears the case de novo (simplified hearings, position papers). • Decision timeline: 30 days from last submission; executable after 15 days unless appealed. • Possible orders: full refund plus 10 % interest, treble damages for deceptive acts, administrative fines ₱500 – ₱300,000 per transaction (Art. 164, RA 7394), and suspension/blacklisting of seller accounts.
Appeal process • To the Office of the DTI Secretary within 15 days (file Memorandum of Appeal + ₱3,000 fee). • Further appeal lies with the Court of Appeals via Rule 43 petition.
5. Parallel & supplementary remedies
| Forum | When to consider |
|---|---|
| Barangay Katarungang Pambarangay (Lupong Tagapamayapa) | Optional for online transactions; RA 7394 exempts consumer disputes from barangay conciliation if filed directly with DTI. |
| PNP Anti-Cybercrime Group / NBI Cybercrime Division | Where fraud involves hacking, phishing, or amounts >₱500k (possible estafa under Art. 315 RPC; cyber-fraud under RA 10175). |
| Small Claims Court (SC) – B.P. 129 as amended by A.M. 08-8-7-SC | Claims ≤ ₱400,000 without lawyers, if you prefer a monetary judgment with garnishment powers. |
| Payment-gateway chargeback (Visa/MC, GCash Dispute Form) | Must often be initiated within 15 – 30 days of transaction. Use while DTI case is pending; success rate increases with reference to DTI docket. |
| DICT Consumer Complaint Center | For ISP/platform non-compliance with DTI blocking order or “notice-and-takedown” requests. |
6. Practical drafting tips for your Complaint-Affidavit
- Identify the seller clearly. Collect any SEC/DTI Business Name Certificate, BIR registration, page admin name, GCash “registered owner,” or airway-bill consignor.
- Link each fact to the legal provision violated. Example: “Respondent advertised a ‘100 % authentic iPhone 14 Pro’ but delivered a clone → deceptive sales act under Art. 50(b), RA 7394.”
- State your demand with figures. “Complainant prays for a refund of ₱56,990 plus ₱3,000 shipping and ₱10,000 moral damages.”
- Attach chronology – a table of events with dates, times, and reference numbers keeps the CAO from guessing.
- Verification clause & Jurats must bear the same date; use a notary within your city to avoid venue objections.
7. Timelines at a glance
| Phase | Statutory or DTI-observed deadline |
|---|---|
| DTI acknowledgment of complaint | 3 wd (RA 11032) |
| Issuance of Notice to Answer | Within 5 wd of complete filing |
| Seller’s verified answer | 10 cd |
| Mediation | Within 10 cd after answer |
| CAO decision | 30 cd from case submission |
| Appeal to Secretary | 15 cd from receipt of decision |
| Secretary’s decision | 30 cd (Art. 169, RA 7394) |
(wd = working days; cd = calendar days)
8. Possible outcomes & enforcement
- Voluntary compliance – refund reflected in e-wallet within 24 h; DTI closes case.
- Writ of execution – If respondent ignores the CAO decision, you may request issuance; the Sheriff of the DTI (or deputized local sheriff) can levy goods or garnish bank accounts.
- Criminal referral – Persistent refusal to comply may constitute direct contempt (Art. 166) and/or estafa; DTI legal forwards records to DOJ for inquest.
- Platform penalties – DTI may direct marketplaces to suspend storefronts, with public notice posted on DTI Watchlist for Online Sellers.
9. Costs & fee schedule (as of 2025)
| Item | Amount |
|---|---|
| Filing fee – Mediation | Free |
| Filing fee – Arbitration (if elevated) | ₱5,000 or 1 % of claim, whichever is lower |
| Appeal to Secretary | ₱3,000 |
| Sheriffs’ fee for execution | ₱1,000 + actual expenses (transport, storage) |
| Notarial fees (Complaint-Affidavit) | ₱200 – ₱500 typical in NCR |
10. Practical DOs & DON’Ts
- DO keep communications respectful; abusive language can be ground to dismiss or counter-charge under cyber-libel.
- DO file promptly; laches can be invoked if you “sleep on your rights.”
- DON’T threaten criminal arrest in your chats—this may be construed as grave coercion.
- DON’T ship the defective item back without a formal return authorization; you may lose physical evidence.
11. Template: Complaint-Affidavit (headlines only)
I. Parties II. Jurisdictional Allegations III. Statement of Facts IV. Causes of Action V. Reliefs Prayed For VI. Verification and Certification of Non-Forum Shopping
(Full precedents are available in the DTI Arbitration Rules Handbook, 2024 Edition.)
12. Key DTI contact points (2025)
| Channel | Details |
|---|---|
| Hotline | 1-DTI (1-384) – Monday-Friday 8 am-5 pm |
| consumercare@dti.gov.ph; attachments ≤ 25 MB | |
| Webchat | FB Messenger: @DTIPhilippines > DTI Consumer Care |
| Physical filing (NCR) | FTEB-Consumer Arbitration Division 3/F UPRC Building, 315 Sen. Gil Puyat Ave., Makati City |
| Regional / Provincial Offices | Check https://www.dti.gov.ph/contact for exact addresses; each has a Consumer Welfare Desk. |
Final reminder
The DTI process is administrative and consumer-oriented—it is designed for speed, minimal cost, and self-representation. You do not need a lawyer, but meticulous paperwork will significantly improve your odds of recovery. If your case involves large sums, data breaches, or syndicated fraud, use the DTI track concurrently with criminal and civil remedies.
(This guide is for informational purposes only and does not create an attorney-client relationship. For tailored advice, consult a Philippine lawyer or the DTI’s Legal Affairs Office.)