Influencer Marketing Rules in the Philippines: Disclosure and Consumer Law

Influencer marketing in the Philippines is governed mainly by two laws: the Consumer Act of the Philippines (Republic Act No. 7394) and the Internet Transactions Act of 2023 (Republic Act No. 11967). The core rule is simple: a paid or sponsored promotion must not deceive consumers. Under the Consumer Act, the State protects consumers against deceptive, unfair and unconscionable sales acts and practices, and advertising is defined broadly to cover information about a product's attributes, features, quality or availability circulated through any form of mass media. Under the Internet Transactions Act, digital platforms must help consumers distinguish between commercial and non-commercial or private accounts.

What counts as advertising under Philippine law

The Consumer Act defines "Advertising" as the business of conceptualizing, presenting or making available to the public, through any form of mass media, fact, data or information about the attributes, features, quality or availability of consumer products, services or credit.

It also defines "Mass Media" as any means or methods used to convey advertising messages to the public, listing television, radio, magazines, cinema, billboards, posters, streamers, handbills, leaflets, mails "and the like."

A sponsored post, a paid livestream, an affiliate link, or a gifted-product feature communicates information about a product's attributes or availability to the public. It is advertising in substance, and the consumer-protection standards apply.

Who is responsible for disclosure

The Consumer Act defines an "Advertiser" as the client of the advertising agency or the sponsor of the advertisement on whose account the advertising is prepared, conceptualized, presented or disseminated. It defines a "Supplier" as a person who, in the course of business, solicits, offers, advertises or promotes the disposition or supply of a consumer product, and includes the successor or assignee of any right or obligation of the supplier.

These definitions matter because responsibility for a misleading promotion does not rest on the influencer alone. The brand that commissioned or sponsored the content is an advertiser or supplier under the law.

Platform obligations that affect influencer content

The Internet Transactions Act applies to business-to-consumer internet transactions, but expressly excludes online media content and consumer-to-consumer transactions from its coverage. Even so, the law imposes duties on platforms that shape how commercial content appears.

Under Section 22 of the Internet Transactions Act, digital platforms that do not retain oversight over the consummation of the transaction must enable consumers to distinguish between commercial and non-commercial or private accounts. They must also require online merchants to indicate the name and brand of the goods or services, price, description, condition, and contact information in their product offers online.

Under Section 21, e-marketplaces must ensure that internet transactions on their platform are clearly identifiable as e-commerce transactions, identify the person on whose behalf the transaction is made, and identify any promotional offer — including any discount, premium or gift — with the conditions to qualify made accessible, clear and unambiguous.

What counts as a deceptive practice

The Consumer Act declares it State policy to protect consumers against deceptive, unfair and unconscionable sales acts and practices, and directs that the best interest of the consumer be considered in interpreting the law, including its implementing rules and regulations.

The Internet Transactions Act reinforces this. Under Section 29(b), an online merchant or e-retailer found guilty of any deceptive, unfair or unconscionable sales act or practice done through the internet is punished, in addition to penalties under Republic Act No. 7394, with graduated administrative fines — from Twenty thousand pesos (P20,000.00) to One hundred thousand pesos (P100,000.00) for the first offense, rising for repeat offenses.

A promotion that hides the commercial relationship — for example, presenting a paid endorsement as an ordinary personal opinion — is the kind of practice these provisions are designed to reach.

Practical disclosure rules for brands and influencers

Philippine law does not prescribe a single required disclosure phrase. What the law requires is that the commercial nature of the content not be concealed. In practice, that means:

• Disclose the material connection clearly and prominently, in the same language as the post.
• Place the disclosure where it is seen before the consumer engages — not buried in a wall of hashtags.
• Avoid formats that make a paid promotion look like an unprompted personal recommendation.

Under Section 6 of the Internet Transactions Act, those who engage in e-commerce shall not enjoy any beneficial treatment more favorable, nor be placed at a disadvantage, in relation to enterprises that offer goods and services offline. A paid online endorsement should be no less transparent than a paid television advertisement.

Frequently asked questions

Do influencers in the Philippines need to disclose paid posts? Yes. A paid promotion is advertising, and the Consumer Act protects consumers against deceptive, unfair and unconscionable sales acts and practices. Concealing the commercial relationship can amount to a deceptive practice.

Are brands liable for what their influencers post? Brands can be. The Consumer Act defines an advertiser as the sponsor of the advertisement, and a supplier as one who advertises or promotes the supply of a consumer product. Liability is not limited to the influencer.

Does the Internet Transactions Act cover social media influencers? The Act covers business-to-consumer internet transactions but expressly excludes online media content and consumer-to-consumer transactions. Its platform duties still apply — digital platforms must let consumers distinguish commercial from non-commercial accounts.

Practical takeaways

• Treat any paid, sponsored or gifted promotion as advertising under the Consumer Act.
• Disclose the material connection clearly, prominently and before the consumer engages with the content.
• Brands that commission promotions can be treated as advertisers or suppliers — review influencer content before it goes live.
• Platforms must help users distinguish commercial from non-commercial accounts under Section 22 of the Internet Transactions Act.
• Deceptive online sales acts carry administrative fines under Section 29(b), on top of penalties under Republic Act No. 7394.

Primary sources

The rules discussed above are drawn from the following primary sources, as published in the Official Gazette and the national statute book.

• REPUBLIC ACT NO. 7394 - THE CONSUMER ACT OF THE PHILIPPINES

• REPUBLIC ACT NO. 11967 - AN ACT PROTECTING ONLINE CONSUMERS AND MERCHANTS ENGAGED IN INTERNET TRANSACTIONS, CREATING FOR THIS PURPOSE ELECTRONIC COMMERCE BUREAU, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.