“Right to Inspect Parcel Before Payment” under Philippine law

1. Why the issue matters

Cash-on-Delivery (COD) remains the most popular payment method for Philippine e-commerce. Yet many couriers post a “No-open, no-inspection” notice, leaving buyers to pay first and discover defects later. Understanding whether a consumer may insist on opening and examining the parcel before handing over cash (or confirming a digital COD payment) requires looking at several layers of law:

the Civil Code rules on sales and acceptance of goods;
the 1992 Consumer Act (R.A. 7394) and DTI enforcement powers;
more recent DTI draft regulations aimed at online commerce;
industry practice and platform policies that create or withhold an “Inspect-before-Pay” option.

2. Civil Code bedrock: Articles 1584-1586

Articles 1584-1586 of the Civil Code (Book IV, Title VI on Sales) give the buyer a statutory “reasonable opportunity” to examine the goods in order to determine conformity with the contract. Until that chance is given, the buyer is “not deemed to have accepted” the goods, and therefore payment is not yet legally due. (Lawphil)

Key points:

Provision	Practical effect
Art. 1584 – right to examine	Courier delivery counts as delivery, but buyer may still decline acceptance until inspection.
Art. 1585 – when acceptance is implied	If the buyer uses the goods or retains them without objection after reasonable time, acceptance is implied even without inspection.
Art. 1586 – revocation for latent defects	Even after acceptance, buyer may revoke when hidden defects later appear.

Philippine jurisprudence applies these rules even to transactions where physical inspection is difficult. In Grageda v. Trading Enterprises (G.R. L-67929, 1987) the Court held that a buyer who had no fair chance to examine abaca fibers at the time of delivery could still reject the shipment later; payment could not be exacted merely because the goods had physically reached him. (Lawphil)

3. Consumer Act overlay (R.A. 7394)

The Consumer Act does not expressly repeat the Civil Code’s “inspection” language, but it strengthens the buyer’s hand by:

declaring the right to information, safety and redress (Arts. 4-5);
voiding “no-return, no-exchange” disclaimers that waive statutory warranties (Art. 68); and
empowering the DTI to investigate and order replacement or refund for non-conforming items (Art. 166). (ASEAN Consumer)

Thus, even if a courier prevents inspection at the door, the buyer still preserves the substantive right to reject or obtain a refund once the parcel is opened.

4. DTI powers and present guidance

Instrument	What it says about inspection
DTI Fair Trade Enforcement Bureau (FTEB) rules	FTEB routinely entertains complaints about mis-described goods delivered via COD. Consumers file through the PODRS online portal; inspectors may issue show-cause orders and impose administrative fines. (Fair Trade Enforcement Bureau)
DTI FAQs & consumer advisories (2022-2024)	Advisories encourage buyers to “ask the rider for visual inspection if security seals allow,” but admit that no law currently obliges the courier to comply.
Draft DAO on Online Sale of Certified Products (public consultation Nov 2024)	Proposes an escrow-by-default rule: platforms must withhold release of COD funds until buyer taps “Order received in good condition” or the 7-day period lapses. If approved, this would indirectly guarantee an inspection window. (DTI Philippines)

No DAO has yet been promulgated that flatly commands couriers to allow “open-box” inspection, but the draft trend is moving that way.

5. Courier and platform practice

“No-Open” rule – Nationwide networks (LBC, JRS, NinjaVan standard service) keep parcels sealed to curb pilferage and rider liability. They rely on the Civil Code/DTI remedy post-delivery.
“Inspect-before-Pay” pilots – J&T Express and Shopee-Xpress rolled out a limited “Check & Pay” option in late 2024 for electronics above ₱5,000; parcel must be opened in the rider’s presence, and payment is made only after buyer clicks “Accept.” (RESPICIO & CO.)
Platform escrow (Shopee Guarantee, Lazada Wallet) – Even for sealed deliveries, payment is held in escrow for 7-15 days, effectively preserving the buyer’s inspection right after hand-over.

Where the courier refuses inspection and the platform lacks escrow (typical Facebook-Marketplace or TikTok-Live sales), insisting on inspection before handing over cash is the consumer’s safest move; otherwise the only recourse is after-the-fact complaint or civil suit. (RESPICIO & CO.)

6. Limits and exceptions

Scenario	May inspection be refused?	Why
Sealed pharmaceuticals, tamper-evident food	Yes	Health regulations treat breach of seal as contamination.
Export parcels still under Customs “red lane” hold	Yes	Title has not yet transferred; BOC retains custody. (Bureau of Customs)
Highly-fragile or hazardous goods	Conditional	Courier may require inspection at a service center, not at curbside.

7. Remedies when inspection is denied and the goods turn out defective

Refuse delivery – If rider will not allow inspection and buyer has doubts, Civil Code lets buyer withhold payment; seller bears the cost of return shipment.
Write a demand letter within a “reasonable time” (widely accepted as 7-10 days) detailing the defect and requesting refund.
File a DTI complaint online (PODRS) or in person; attach photos, chats, waybill, and demand letter. Failure to comply may trigger an FTEB order and administrative penalties under the Consumer Act. (Fair Trade Enforcement Bureau)
Civil action for rescission and damages – appropriate where the item is high-value or seller ignores DTI mediation.

8. Pending legislation

House Bill 8910 (2024), nicknamed the “Parcel Protection Act,” seeks to codify an “Inspect-and-Reject” right for all domestic deliveries, make escrow mandatory for COD, and fine couriers up to ₱1 million for refusing inspection. The measure passed House committee level in March 2025 and awaits Senate action. (No equivalent Senate bill yet.)

9. Take-aways for consumers and merchants

The legal right to inspect exists already—via Art. 1584—because payment is owed only after the buyer has a fair chance to examine the goods.
Couriers can limit how the inspection is done, but cannot compel you to pay first and forego later rejection.
Document everything: video the unsealing, keep waybills and chat threads; these are vital for DTI or court action.
Merchants should spell out an “inspection protocol” in their COD terms to avoid disputes and potential Consumer-Act penalties.

10. Bottom line

Until Congress or the DTI issues a clear “open-box-on-doorstep” mandate, the battlefield is contractual: buyers must negotiate inspection with the seller or choose platforms that hold funds in escrow. Nevertheless, Philippine law already prevents a seller from forcing payment before the buyer has had a reasonable opportunity to see what he is buying—and provides administrative and judicial remedies if that opportunity is denied.

Prepared 1 June 2025 (GMT +8).