Open your COD parcels before payment, as fake delivery scam spikes during Christmas

DECODED: TECH, TRUTH, AND THREATS

By Art Samaniego

One of the “12 Scams of Christmas” that the Cybercrime Investigation and Coordinating Center (CICC) and Scam Watch Pilipinas are warning the public about this holiday season is the fake delivery scam.

In this modus, unsuspecting recipients are pressured to pay for a parcel they never ordered, or to receive a package containing worthless items instead of what was promised. Many victims, not knowing their rights, hand over payment because couriers insist that parcels “cannot be opened unless paid.”

But according to a legal analysis published this year by Respicio & Co. Law Firm, Filipino consumers have the right to open and inspect any cash-on-delivery (COD) parcel before paying. What many still don’t know is that this is not a privilege, it is a legal right meant to protect buyers from scams, misrepresentation, and fraudulent online sellers.

Legal basis for inspection rights

In its commentary, the law firm emphasized that the Consumer Act of the Philippines (Republic Act No. 7394) protects buyers from “deceptive, unfair, or unconscionable” sales acts. The firm notes that preventing buyers from inspecting items before payment, especially when the delivered product differs from the seller’s description, may fall under such prohibited acts.

The firm also cites the Electronic Commerce Act (Republic Act No. 8792), which extends traditional consumer protections to online transactions, and the Internet Transactions Act of 2023 (Republic Act No. 11967), which strengthens regulation of online commerce and platform accountability. While the Department of Trade and Industry (DTI) has not issued a specific order dedicated solely to COD inspections, DTI advisories on distance selling align with the principle that consumers must be protected against misrepresentation. This includes permitting a reasonable inspection of goods before payment.

While the Department of Trade and Industry (DTI) has not issued a specific order dedicated solely to COD inspections, DTI advisories on distance selling align with the principle that consumers must be protected against misrepresentation. This includes permitting a reasonable inspection of goods before payment.

What consumers are allowed to do

According to Respicio & Co.’s legal interpretation, consumers receiving a COD parcel are fully entitled to open the package for a reasonable inspection to verify that the item is correct, complete, and in good condition. If the product is damaged, incorrect, fake, or materially different from what was advertised, the buyer has every right to decline payment. Consumers may also reject delivery altogether if any non-conformity is immediately noticeable upon inspection.

However, this right comes with a limitation: the inspection must remain “reasonable”—meaning it should be quick and straightforward, without prolonged testing, misuse, or any action that may be considered tampering.

The law firm notes that inspection rights may be interpreted more narrowly for perishable goods (such as food or flowers) or for products that require technical testing, such as electronics. Even in such cases, a basic visual check of the item’s appearance and packaging should still be permitted.

If a courier or seller refuses to allow inspection, consumers are not powerless — several remedies are available to protect their rights. First, they may reject the parcel immediately, since the refusal to allow inspection already raises concerns of possible misrepresentation or scam. The buyer is under no obligation to accept or pay for a delivery that does not comply with consumer protection standards.

Next, consumers can file a formal complaint with the Department of Trade and Industry’s Consumer Protection and Advocacy Bureau (CPAB) through the DTI online complaint portal. This step is important because it notifies authorities of erring sellers or couriers and allows DTI to issue warnings, investigate the incident, or impose administrative sanctions.

Additionally, consumers may invoke their rights under the Consumer Act and the Internet Transactions Act to demand appropriate remedies. These include refund, replacement, or repair, depending on the nature of the defect or deception involved. The law recognizes that online buyers deserve the same level of protection as those purchasing goods in physical stores.

Finally, if the dispute involves money within the allowable threshold, consumers can bring the matter to small claims court, which provides a faster, simpler way to resolve financial claims without the need for a lawyer. This gives buyers a practical legal path when sellers refuse to cooperate or compensate for fraudulent or defective deliveries.

Respicio & Co. adds that sellers who knowingly prevent fair inspection may expose themselves to administrative penalties and possibly criminal liability under RA 7394.

The legal position presented by Respicio & Co. Law Firm reinforces that COD does not mean “pay before you see.” Consumers have the right to inspect their parcels before paying, and sellers must respect this right under the country’s consumer protection framework.

In the middle of the holiday rush, and with fake delivery scams now part of the “12 Scams of Christmas” warning list, Filipino consumers should remember: COD does not mean “pay before you see.” You have the right to inspect your parcel before it is delivered. You have the right to refuse if something is wrong. And you have full protection under Philippine law.

(Primary source: Respicio & Co. Law Firm analysis. Respicio & Co. Law Firm is a Philippine-based law firm known for publishing legal commentaries, analysis, and explanatory articles on various areas of Philippine law, including consumer protection, commercial law, data privacy, contracts, and regulatory compliance.)