ECOMMERCE LAW and DICT

• What is the objective of the Electronic Commerce Act?

  To facilitate domestic and international transactions, contracts and exchanges and storage of information through the utilization of electronic, optical and similar medium, mode, instrumentality and technology; to recognize the authenticity and reliability of electronic documents related to such activities; and to promote the universal use of electronic transactions in the government and by the general public.
• When is the Electronic Commerce Act applicable?

  It applies to any kind of(electronic) data message and electronic document used in the context of commercial and non-commercial activities to include domestic and international transactions, contracts and exchanges, and storage of information.

  NOTE: The lead agency charged with directly supervising the promotion and development of electronic commerce in the country with relevant government agencies is the Department ofTrade and Industry.
• What are the principles of Electronic Commerce Promotion?

  1. Role of the Government
  2. Role of the Private Sector
  3. International Coordination and Harmonization
  4. Neutral Tax Treatment
  5. Protection of Users
  6. Electronic Commerce Awareness
  7. Small and Medium-Sized Enterprises
  8. Skills Development
  9. Government as a Model User
  10. Convergence
  11. Domain Name System
  12. Access to Public Records
  13. Dispute Mechanisms
• What is an Electronic Data Message?


  Refers to information generated, sent, received or stored by electronic, optical or similar means.
• What is an Electronic Document?


  Refers to information or the representation of information, data, figures, symbols or other modes of written expression, described or however represented, by which a right is established, or an obligation extinguished, or by which a fact may be proved and affirmed, which is received, recorded, transmitted, stored, processed, retrieved, or produced electronically. NOTE: Under the Rules on Electronic Evidence, the term “electronic document” may be used interchangeably with “electronic data message"
• What is the legal effect of an Electronic Document?

  1. Electronic documents shall have the legal effect, validity or enforceability as any other document or legal writing.
  2. Equivalent Compliance
• Equivalent Compliance


  • Any legal requirement that a document be in writing is complied by an electronic document.
  • Any legal requirement that a document be presented or retained in its original form is met by an electronic document
• The Rules on Electronic Evidence regards an electronic document as admissible in evidence if it complies with the rules on admissibility prescribed by the Rules of Court and related laws and is authenticated in the manner prescribed by the said Rules.
• What is an Electronic Signature?


  Refers to any distinctive mark, characteristic and/or sound in electronic form, representing the identity of a person and attached to or logically associated with the electronic data message or electronic document or any methodology or procedures employed or adopted by a person and executed or adopted by such person with the intention of authenticating or approving an electronic data message or electronic document.
• What is the legal effect of an Electronic Signature?

  An electronic signature on the electronic document shall be equivalent to the signature of a person on a written document if that signature is proved by showing that a prescribed procedure, not alterable by the parties interested in the electronic document, exists and conforms with Section 8 of the law.
• What are the presumptions relating to an Electronic Signature?

  1. The electronic signature is the signature of the person to whom it correlates; and
  2. The electronic signature was affixed by that person with the intention of signing or approving the electronic document unless the person relying on the electronically signed electronic document knows or has noticed of defects in or unreliability of the signature or reliance on the electronic signature is not reasonable under the circumstances.
• What are the rules on the admissibility and evidentiary weight of an Electronic Data Message or Electronic Document?

  • In any legal proceedings, the admissibility of an electronic data message or electronic document in evidence cannot be denied: On the sole ground that it is in electronic form; or
  • On the ground that it is not in the standard written form and electronic data message or electronic document meeting and complying with the requirements under Section 6 or 7 hereof shall be the best evidence of the agreement and transaction contained therein.
• What is a negotiable instrument?

  A negotiable instrument is a contract for the payment ofsum of money which contains the requisites of negotiability under Section 1 of the Negotiable Instruments Law (NIL).
• The Official Gazette is the official journal of the Republic of the Philippines. Edited at the Office of the President of the Philippines Under Commonwealth Act No. 638
• Republic Act No. 10844 enacted


  May 23, 2016
• Republic Act No. 10844 is an Act creating the Department of Information and Communications Technology, defining its powers and functions, appropriating funds therefor, and for other purposes
• Information and Communications Technology (ICT)


  The totality of electronic means to access, create, collect, store, process, receive, transmit, present and disseminate information
• Convergence


  The interface between and among various telephony, radio, video, broadcasting and multimedia infrastructure, devices and services, enabling users or subscribers thereof to communicate with one another
• Electronic Government (E-Government)


  The use of ICT by the government and the public to enhance the access to and delivery of government services to bring about efficient, responsive, ethical, accountable and transparent government service
• ICT Sector


  Those engaged in providing goods and services primarily intended to fulfill or enable the function of information processing and communication by electronic means. The ICT sector includes telecommunications and broadcast information operators, ICT equipment manufacturers, multimedia content developers and providers, ICT solution providers, internet service providers, ICT training institutions, software developers and ICT-ES providers
• ICT-Enabled Services (ICT-ES) Sector


  Those engaged in providing services that require the intrinsic use of ICT including engineering or architectural design, informatics service providers, offshoring and outsourcing service providers such as call centers, back office processing, software development, medical or legal transcription, animation, game development, and other services that require the intrinsic use of a networked information infrastructure
• Chief Information Officer (CIO)


  A senior officer in all national government agencies (NGAs), including constitutional offices, state universities and colleges (SUCs), government-owned and -controlled corporations (GOCCs), and government financial institutions (GFIs) responsible for the development and management of the agency's ICT systems and applications
• There is hereby created the Department of Information and Communications Technology (DICT)
• The Department shall be the primary policy, planning, coordinating, implementing, and administrative entity of the Executive Branch of the government that will plan, develop, and promote the national ICT development agenda
• Powers and Functions of the Department

  • Policy and Planning
  • Improved Public Access
  • Resource-Sharing and Capacity-Building
  • Consumer Protection and Industry Development
• The Department shall be headed by a Secretary appointed by the President, subject to confirmation by the Commission on Appointments
• Functions of the Secretary of Information and Communications Technology

  • Provide executive direction and supervision over the entire operations of the Department and its attached agencies
  • Establish policies and standards for the effective, efficient and economical operation of the Department, in accordance with the programs of government
  • Review and approve requests for financial and manpower resources of all operating offices of the Department
  • Designate and appoint officers and employees of the Department, excluding the undersecretaries, assistant secretaries, and regional and assistant regional directors, in accordance with the civil service laws, rules and regulations
  • Exercise disciplinary powers over officers and employees of the Department in accordance with law, including their investigation and the designation of a committee or officer to conduct such investigation
  • Coordinate with IXSUs, other agencies and public and private interest groups, including nongovernment organizations (NGOs) and people's organizations (POs) on Department policies and initiatives
  • Prepare and submit to the President through the Department of Budget and Management (DBM) an estimate of the necessary expenditures of the Department during the next fiscal year, on the basis of the reports and estimates submitted by bureaus and offices under him/her
• Designate and appoint


  Officers and employees of the Department, excluding the undersecretaries, assistant secretaries, and regional and assistant regional directors, in accordance with the civil service laws, rules and regulations
• Exercise disciplinary powers


  Over officers and employees of the Department in accordance with law, including their investigation and the designation of a committee or officer to conduct such investigation
• Coordinate with


  Other agencies and public and private interest groups, including nongovernment organizations (NGOs) and people's organizations (POs) on Department policies and initiatives
• Prepare and submit to the President through the Department of Budget and Management (DBM)


  An estimate of the necessary expenditures of the Department during the next fiscal year, on the basis of the reports and estimates submitted by bureaus and offices under him/her
• Serve as a member of the Government Procurement Policy Board (GPPB)


  As established by Republic Act No. 9184
• Advise the President on

  The promulgation of executive and administrative orders and formulation of regulatory and legislative proposals on matters pertaining to ICT development
• Formulate such rules and regulations and exercise such other powers


  As may be required to implement the objectives of this Act
• Undersecretaries


  • Three (3) undersecretaries, two (2) of whom shall be career officers
• Assistant Secretaries


  • Four (4) assistant secretaries, two (2) of whom shall be career officers, and at least one (1) of whom shall be a licensed Professional Electronics Engineer (PECE), or any suitably qualified person in accordance with Civil Service Commission (CSC) rules and regulations
• Qualifications for Secretary, Undersecretary, or Assistant Secretary


  • Citizen and resident of the Philippines, of good moral character, of proven integrity and with at least seven (7) years of competence and expertise in any of the following: information and communications technology, information technology service management, information security management, cybersecurity, data privacy, e-Commerce, or human capital development in the ICT sector
• Functions of Regional Offices

  • Implement laws, policies, plans, programs, projects, rules and regulations of the Department
  • Provide efficient and effective service to the people
  • Coordinate with regional offices of other departments, offices, and agencies
  • Coordinate with the LG Us
  • Perform such other functions as may be provided by law or assigned by the Secretary
• CIO Council


  Consists of CIOs, with the Secretary serving as the Chairman, to assist the Department in the implementation of government ICT initiatives
• Create sectoral and industry task forces, technical working groups, advisory bodies or committees


  For the furtherance of the Department's objectives