The emergence of AI chatbots in e-commerce has revolutionized how businesses engage with customers. From resolving queries in seconds to handling transactions at scale, AI-powered assistants have enabled 24/7 service with unprecedented efficiency. In the fast-growing digital economy of the Philippines, where mobile-first consumers demand immediate gratification and seamless digital experiences, chatbot integration has become a strategic imperative.
However, behind this convenience lies a complex web of legal risks that cannot be ignored.
Businesses operating e-commerce in the Philippines must navigate a stringent legal framework—anchored by the Electronic Commerce Act (Republic Act No. 8792) and supported by laws like the Data Privacy Act of 2012 (RA 10173), Consumer Act (RA 7394), and the Cybercrime Prevention Act of 2012 (RA 10175). These laws ensure that digital transactions, customer data, and online conduct are governed and protected.
For companies integrating AI chatbots into their digital platforms, understanding these laws is essential. While AI can drive innovation and scalability, poorly implemented or unsupervised chatbots can result in regulatory penalties, brand damage, customer distrust, and even lawsuits.
In this blog, we explore the legal risks of AI chatbots in e-commerce in the Philippines and how businesses can mitigate them by embracing best practices for secure and compliant AI adoption.
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