E-Commerce

• REPUBLIC ACT NO. 8792 AN ACT PROVIDING FOR THE RECOGNITION AND USE OF ELECTRONIC COMMERCIAL AND NON-COMMERCIAL TRANSACTIONS, PENALTIES FOR UNLAWFUL USE THEREOF, AND OTHER PURPOSES
• Addressee


  A person who is intended by the originator to receive the electronic data message or electronic document, but does not include a person acting as an intermediary with respect to that electronic data message or electronic document.
• Computer


  Any device or apparatus singly or interconnected which, by electronic, electro-mechanical, optical and/or magnetic impulse, or other means with the same function, can receive, record, transmit, store, process, correlate, analyze, project, retrieve and/or produce information, data, text, graphics, figures, voice, video, symbols or other modes of expression or perform any one or more of these functions.
• Electronic data message


  Information generated, sent, received or stored by electronic, optical or similar means.
• Information and Communication System


  A system for generating, sending, receiving, storing or otherwise processing electronic data messages or electronic documents and includes the computer system or other similar device by or in which data is recorded or stored and any procedures related to the recording or storage of electronic data message or electronic document.
• Electronic signature


  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.
• Electronic document


  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.
• Electronic key


  A secret code which secures and defends sensitive information that crosses over public channels into a form decipherable only with a matching electronic key.
• Intermediary


  A person who in behalf of another person and with respect to a particular electronic data message or electronic document sends, receives and/or stores or provides other services in respect of that electronic data message or electronic document.
• Originator


  A person by whom, or on whose behalf, the electronic document purports to have been created, generated and/or sent. The term does not include a person acting as an intermediary with respect to that electronic document.
• Service provider


  A provider of online services or network access, or the operator of facilities therefor, including entities offering the transmission, routing, or providing of connections for online communications, digital or otherwise, between or among points specified by a user, of electronic documents of the user's choosing; or the necessary technical means by which electronic documents of an originator may be stored and made accessible to a designated or undesignated third party. Such service providers shall have no authority to modify or alter the content of the electronic document received or to make any entry therein on behalf of the originator, addressee or any third party unless specifically authorized to do so, and who shall retain the electronic document in accordance with the specific request or as necessary for the purpose of performing the services it was engaged to perform.
• Requirement for retaining documents in original form


  1. Retaining them in the form of an electronic data message or electronic document

  2. Remains accessible so as to be usable for subsequent reference

  3. Retained in the format in which it was generated, sent or received, or in a format which can be demonstrated to accurately represent the electronic data message or electronic document generated, sent or received

  4. Enables the identification of its originator and addressee, as well as the determination of the date and the time it was sent or received
• The requirement can be satisfied by using the services of a third party, provided that the conditions set forth in subparagraphs (i), (ii) and (iii) of paragraph (a) are met
• Proof by Affidavit


  Matters referred to in Section 12, on admissibility and Section 9, on the presumption of integrity, may be presumed to have been established by an affidavit given to the best of the deponent's knowledge subject to the rights of parties in interest as defined in the following section
• Cross-Examination


  1. A deponent of an affidavit referred to in Section 14 that has been introduced in evidence may be cross-examined as of right by a party to the proceedings who is adverse in interest to the party who has introduced the affidavit or has caused the affidavit to be introduced

  2. Any party to the proceedings has the right to cross-examine a person referred to in Section 11, paragraph 4, sub-paragraph c
• Formation and Validity of Electronic Contracts


  1. Offer, the acceptance of an offer and such other elements required under existing laws for the formation of contracts may be expressed in, demonstrated and proved by means of electronic data messages or electronic documents

  2. No contract shall be denied validity or enforceability on the sole ground that it is in the form of an electronic data message or electronic document, or that any or all of the elements required under existing laws for the formation of the contracts is expressed, demonstrated and proved by means of electronic data messages or electronic documents

  3. Electronic transactions made through networking among banks, or linkages thereof with other entities or networks, and vice versa, shall be deemed consummated upon the actual dispensing of cash or the debit of one account and the corresponding credit to another, whether such transaction is initiated by the depositor or by an authorized collecting party

  4. The obligation of one bank, entity, or person similarly situated to another arising therefrom shall be considered absolute and shall not be subjected to the process of preference of credits
• Recognition by Parties of Electronic Data Message or Electronic Document

  As between the originator and the addressee of an electronic data message or electronic document, a declaration of will or other statement shall not be denied legal effect, validity or enforceability solely on the ground that it is in the form of an electronic data message or electronic document
• Attribution of Electronic Data Message


  1. An electronic data message or electronic document is that of the originator if it was sent by the originator himself

  2. As between the originator and the addressee, an electronic data message or electronic document is deemed to be that of the originator if it was sent by a person who had the authority to act on behalf of the originator with respect to that electronic data message or electronic document, or by an information system programmed by, or on behalf of the originator to operate automatically

  3. As between the originator and the addressee, an addressee is entitled to regard an electronic data message or electronic document as being that of the originator, and to act on that assumption, if the addressee properly applied a procedure previously agreed to by the originator for that purpose, or the electronic data message or electronic document as received by the addressee resulted from the actions of a person whose relationship with the originator or with any agent of the originator enabled that person to gain access to a method used by the originator to identify electronic data messages or electronic documents as his own

  4. The addressee is not entitled to regard an electronic data message or electronic document as being that of the originator if the addressee has received notice from the originator that the electronic data message or electronic document is not that of the originator, and has reasonable time to act accordingly, or if the addressee knew or should have known, had it exercised reasonable care or used any agreed procedure, that the electronic data message or electronic document was not that of the originator

  5. Where an electronic data message or electronic document is that of the originator or is deemed to be that of the originator, or the addressee is entitled to act on that assumption, then, as between the originator and the addressee, the addressee is entitled to regard the electronic data message or electronic document as received as being what the originator intended to send, and to act on that assumption, except when the addressee knew or should have known, had it exercised reasonable care or used any agreed procedure, that the transmission resulted in any error in the electronic data message or electronic document as received

  6. The addressee is entitled to regard each electronic data message or electronic document received as a separate electronic data message or electronic document and to act on that assumption, except to the extent that it duplicates another electronic data message or electronic document and the addressee knew or should have known, had it exercised reasonable care or used any agreed procedure, that the electronic data message or electronic document was a duplicate
• Error on Electronic Data Message or Electronic Document


  The addressee is entitled to regard the electronic data message or electronic document received as that which the originator intended to send, and to act on that assumption, unless the addressee knew or should have known, had the addressee exercised reasonable care or used the appropriate procedure, that the transmission resulted in any error therein or in the electronic data message or electronic document when the electronic data message or electronic document enters the designated information system, or that electronic data message or electronic document is sent to an information system which is not so designated by the addressee for the purpose
• Agreement on Acknowledgment of Receipt of Electronic Data Messages or Electronic Documents

  1. Where the originator has not agreed with the addressee that the acknowledgment be given in a particular form or by a particular method, an acknowledgment may be given by or through any communication by the addressee, automated or otherwise, or any conduct of the addressee, sufficient to indicate to the originator that the electronic data message or electronic document has been received

  2. Where the originator has stated that the effect or significance of the electronic data message or electronic document is conditional on receipt of the acknowledgment thereof, the electronic data message or electronic document is treated as though it has never been sent, until the acknowledgment is received

  3. Where the originator has not stated that the effect or significance of the electronic data message or electronic document is conditional on receipt of the acknowledgment, and the acknowledgment has not been received by the originator within the time specified or agreed or, if no time has been specified or agreed, within a reasonable time, the originator may give notice to the addressee stating that no acknowledgment has been received and specifying a reasonable time by which the acknowledgment must be received; and if the acknowledgment is not received within the time specified, the originator may, upon notice to the addressee, treat the electronic data message or electronic document as though it had never been sent, or exercise any other rights it may have
• Time of Dispatch of Electronic Data Messages or Electronic Documents


  Dispatch of an electronic data message or electronic document occurs when it enters an information system outside the control of the originator or of the person who sent the electronic data message or electronic document on behalf of the originator, unless otherwise agreed between the originator and the addressee
• Time of Receipt of Electronic Data Messages or Electronic Documents


  1. If the addressee has designated an information system for the purpose of receiving electronic data messages or electronic documents, receipt occurs at the time when the electronic data message or electronic document enters the designated information system; if the originator and the addressee are both participants in the designated information system, receipt occurs at the time when the electronic data message or electronic document is retrieved by the addressee

  2. If the electronic data message or electronic document is sent to an information system of the addressee that is not the designated information system, receipt occurs at the time when the electronic data message or electronic document is retrieved by the addressee

  3. If the addressee has not designated an information system, receipt occurs when the electronic data message or electronic document enters an information system of the addressee

  4. These rules apply notwithstanding that the place where the information system is located may be different from the place where the electronic data message or electronic document is deemed to be received
• Place of Dispatch and Receipt of Electronic Data Message or Electronic Documents

  1. An electronic data message or electronic document is deemed to be dispatched at the place where the originator has its place of business and received at the place where the addressee has its place of business, unless otherwise agreed between the originator and the addressee

  2. This rule shall apply even if the originator or addressee had used a laptop other portable device to transmit or receive his electronic data message or electronic document

  3. This rule shall also apply to determine the tax situs of such transaction

  4. If the originator or the addressee has more than one place of business, the place of business is that which has the closest relationship to the underlying transaction or, where there is no underlying transaction, the principal place of business

  5. If the originator or the addressee does not have a place of business, reference is to be made to its habitual residence

  6. The "usual place of residence" in relation to a body corporate, means the place where it is incorporated or otherwise legally constituted
• Choice of Security Methods

  Parties to any electronic transaction shall be free to determine the type and level of electronic data message or electronic document security needed, and to select and use or implement appropriate technological methods that suit their needs, subject to applicable laws and/or rules and guidelines promulgated by the Department of Trade and Industry with other appropriate government agencies
• Actions Related to Contracts of Carriage of Goods

  1. Furnishing the marks, number, quantity or weight of goods

  2. Stating or declaring the nature or value of goods

  3. Issuing a receipt for goods

  4. Confirming that goods have been loaded

  5. Notifying a person of terms and conditions of the contract

  6. Giving instructions to a carrier

  7. Claiming delivery of goods

  8. Authorizing release of goods

  9. Giving notice of loss of, or damage to goods

  10. Giving any other notice or statement in connection with the performance of the contract

  11. Undertaking to deliver goods to a named person or a person authorized to claim delivery

  12. Granting, acquiring, renouncing, surrendering, transferring or negotiating rights in goods

  13. Acquiring or transferring rights and obligations under the contract
• Transport Documents


  1. Where the law requires that any action referred to in Section 25 be carried out in writing or by using a paper document, that requirement is met if the action is carried out by using one or more electronic data messages or electronic documents

  2. If a right is to be granted to, or an obligation is to be acquired by, one person and no other person, and if the law requires that, in order to effect this, the right or obligation must be conveyed to that person by the transfer, or use of, a paper document, that requirement is met if the right or obligation is conveyed by using one or more electronic data messages or electronic documents, provided that a reliable method is used to render such electronic data messages or electronic documents unique

  3. Where one or more electronic data messages or electronic documents are used to effect any action in subparagraphs (f) and (g) of Section 25, no paper document used to effect any such action is valid unless the use of electronic data message or electronic document has been terminated and replaced by the use of paper documents

  4. A paper document issued in these circumstances shall contain a statement of such termination

  5. The replacement of electronic data messages or electronic documents by paper documents shall not affect the rights or obligations of the parties involved

  6. If a rule of law is compulsorily applicable to a contract of carriage of goods which is in, or is evidenced by, a paper document, that rule shall not be inapplicable to such a contract of carriage of goods which is evidenced by one or more electronic data messages or electronic documents by reason of the fact that the contract is evidenced by such electronic data message or electronic document instead of by a paper document
• Notwithstanding any provision of law, rule or regulation to the contrary, the Government shall, in all its transactions, accept the use of electronic data messages, electronic documents and electronic signatures
• Termination and replacement of electronic data message or electronic document by paper document

  1. No paper document used to effect any such action is valid unless the use of electronic data message or electronic document has been terminated and replaced by the use of paper documents

  2. Paper document issued in these circumstances shall contain a statement of such termination

  3. Replacement of electronic data messages or electronic documents by paper documents shall not affect the rights or obligations of the parties involved
• If a rule of law is compulsorily applicable to a contract of carriage of goods which is in, or is evidenced by, a paper document, that rule shall not be inapplicable to such a contract of carriage of goods which is evidenced by one or more electronic data messages or electronic documents by reason of the fact that the contract is evidenced by such electronic data message or electronic documents instead of by a paper document
• Government use of electronic data messages, electronic documents and electronic signatures

  1. Accept the creation, filing or retention of documents in the form of electronic data messages or electronic documents

  2. Issue permits, licenses, or approval in the form of electronic data messages or electronic documents

  3. Require and/or accept payments, and issue receipts acknowledging such payments, through systems using electronic data messages or electronic documents

  4. Transact the government business and/or perform governmental functions using electronic data messages or electronic documents
• Adoption and promulgation of rules, regulations, or guidelines by government

  1. Specify the manner and format in which electronic data messages or electronic documents shall be filed, created, retained or issued

  2. Specify where and when electronic data messages or electronic documents have to be signed, the use of an electronic signature, the type of electronic signature required

  3. Specify the format of an electronic data message or electronic document and the manner the electronic signature shall be affixed to the electronic data message or electronic document

  4. Specify the control processes and procedures as appropriate to ensure adequate integrity, security and confidentiality of electronic data messages or electronic documents or records or payments

  5. Specify other attributes required of electronic data messages or electronic documents or payments

  6. Specify the full or limited use of the documents and papers for compliance with the government requirements
• Installation of RPWEB electronic online network


  1. Implement Part IV of this Act to facilitate the open, speedy and efficient electronic online transmission, conveyance and use of electronic data messages or electronic documents amongst all government departments, agencies, bureaus, offices down to the division level and to the regional and provincial offices as practicable as possible, government-owned and controlled corporations, local government units, other public instrumentalities, universities, colleges and other schools, and universal access to the general public

  2. Serve as initial platform of the government information infrastructure (GII) to facilitate the electronic online transmission and conveyance of government services to evolve and improve by better technologies or kinds of electronic online wide area networks utilizing, but not limited to, fiber optic, satellite, wireless and other broadband telecommunication mediums or modes
• Promotion and implementation of policy environment and regulatory or non-regulatory framework by government agencies

  1. Lead to the substantial reduction of costs of lease lines, land, satellite and dial-up telephone access, cheap broadband and wireless accessibility by government departments, agencies, bureaus, offices, government-owned and controlled corporations, local government units, other public instrumentalities and the general public

  2. Establish a government website portal and a domestic internet exchange system to facilitate strategic access to government and amongst agencies thereof and the general public and for the speedier flow of locally generated internet traffic within the Philippines
• Telecommunications


  The physical infrastructure of cable and wireless system for cable TV and broadcast excluding programming and content and the management thereof
• Promotion and development of electronic commerce by Department of Trade and Industry

  1. Promulgate rules and regulations

  2. Provide quality standards or issue certifications

  3. Install an online public information and quality and price monitoring system for goods and services aimed in protecting the interests of the consuming public availing of the advantages of this Act
• No person or party shall be subject to any civil or criminal liability in respect of the electronic data message or electronic document for which the person or party acting as a service provider merely provides access, if such liability is founded on the obligations and liabilities of the parties under the electronic data message or electronic document, or the making, publication, dissemination or distribution of such material or any statement made in such material, including possible infringement of any right subsisting in or in relation to such material, provided certain conditions are met
• Access to an electronic file, or an electronic signature of an electronic data message or electronic document shall only be authorized and enforced in favor of the individual or entity having a legal right to the possession or the use of the plaintext, electronic signature or file and solely for the authorized purposes
• The electronic key for identity or integrity shall not be made available to any person or party without the consent of the individual or entity in lawful possession of that electronic key
• Any person who obtained access to any electronic key, electronic data message or electronic document, book, register, correspondence, information, or other material pursuant to any powers conferred under this Act, shall not convey to or share the same with any other person, except for the purposes authorized under this Act
• Penalties for unlawful acts

  • Hacking or cracking
  • Piracy
  • Violations of the Consumer Act or Republic Act No. 7394 and other relevant or pertinent laws through transactions covered by or using electronic data messages or electronic documents
  • Other violations of the provisions of this Act