The Department of Trade and Industry (DTI) and Meta (Facebook) are in discussions on how to further improve and implement safety and security in the platform given abuses in its marketplace portion, as the government is set to strictly enforce the Trustmark system, a badge of trustworthiness, on all digital merchants to protect consumers from scams and illegitimate sellers onboard e-commerce platforms.
Atty. M. Marcus N. Valdez II, Assistant Secretary and Supervising Head of the DTI E-Commerce Bureau (ECB), said that Meta’s marketplace is mainly consumer to consumer (C2C) transaction while the mainstream e-commerce platforms are engaged in business to consumer (B2C). This means that Meta has no oversight over the consummation of the transaction.
“We’re having discussions on how to further implement and enforce the Trustmark system within the platform, because ideally, based on our discussions with them, their marketplace portion of Facebook is only for consumer to consumer transactions, but then this is being abused,” Valdez said.
Valdez further said they cannot preempt Meta on their decision “whether or not they will align with other mainstream e-commerce platforms, like Shopee and Lazada.” He added “If we look at how meta is conducting its business in the region, the Asean region, maybe we can have some sort of as to how they will perform or conduct their business eventually here in the country.”
Meta Representative Genixon David said they support DTI and would like to have strong collaboration on maintaining the safety and security of its platform, especially the safety of its users.
Meantime, ECB officer-in-charge Atty. Eryl Royce R. Nagtalon explained that since the Trustmark system may not cover Meta, its obligation is governed under Section 22 “Obligations of Other Digital Platforms That Do not Retain Oversight Over the Consummation of the Transaction” of the Internet Transactions Act.
Section 22 has identified specific obligations for this kind of platforms, such as enabling consumers to distinguish between commercial and non-commercial or private accounts, and the identification of the merchant, price, condition and contact information.
They are also required to provide an effective and responsive redress mechanism for online consumers and online merchants to report a user or information posted on the platform that are deemed in violation of relevant laws.
The platform shall also be required to provide specific information upon the issuance of subpoena by competent authority. Section 22 also stated that platforms covered under this provision are required to observe ordinary diligence or face penalties.
Nagtalon also said that while Meta’s marketplace is claimed to be C2C, a good number of their merchants are actually engaged in B2C.
