Explainer: What Online Shoppers Need to Know About PH Consumer Act

Unboxing videos have become a popular trend among YouTube vloggers and influencers, perfectly capturing the excitement of seeing a new purchase for the first time. It's like watching kids open gifts during Christmas. But this trend has evolved from content fodder to a necessity for online shoppers with these seemingly simple videos acting as evidence in case the item they’ve received is damaged.

But in case you don't know, requiring such videos is against Republic Act No. 7394. Also known as the Consumer Act, the law protects consumers from online shopping scams and faulty goods, irrespective of whether an unboxing video has been recorded.

On Feb. 17, Department of Trade and Industry (DTI) Assistant Secretary Amanda Nograles clarified that the “no video, no refund” policy is against RA 7394, GMA News Online reported. This falls under the general provisions of Article 2, Section 2 or “protection against deceptive, unfair and unconscionable sales acts and practices.”

Human rights lawyer Chel Diokno also took to Instagram to clarify that the “no video, no refund” policy is considered illegal.

The penalties encompass a fine between P500 to P10,000 and/or imprisonment for up to one year following the court’s decision. Further details regarding the penalties can be found in Article 19.

Concerns

The "No Video, No Refund" policy in the Philippines has stirred concerns among sellers and online platforms as the unboxing video was introduced to protect themselves against bogus buyers and deceitful claims. Yet, several customers assert that recording a video of them while opening their package is an invasion of privacy, while others argue that not everyone has access to smartphones or the technical proficiency to provide such recordings.

Nograles added that even the “no return, no exchange” policy breaches the Consumer Act as it undermines the consumer's right to return defective items. Consumers have the right to ask for a replacement, a full refund, or have the item repaired. This regulation applies when the customer can provide the receipt, warranty card, or any proof of purchase of the product.

“For the warrantor of a consumer product to meet the minimum standards for warranty, he shall permit the consumer to elect whether to ask for a refund or replacement without charge of such product or part, as the case may be, where after reasonable number of attempts to remedy the defect or malfunction, the product continues to have the defect or to malfunction,” the law states.

Conversely, sellers can only apply the “no return, no exchange” policy when the item remains in good condition, has not expired, the customer has had a change of mind, or when damage results from the buyer's own actions.

Alternative Approach

While the government understands sellers’ perspectives, the Consumer Act also seeks to improve transparency and communication within the e-commerce industry. A proposed alternative is to establish a framework with detailed product descriptions, efficient return and refund policies, and excellent customer support to foster trust and loyalty between sellers and consumers through transparent and accountable measures.

Moreover, sellers or business owners are encouraged to invest in quality control procedures to minimize potential defective items or misplaced goods.