1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
1st Regular Session 
House Bill No. ________ 
Introduced by Representatives PAOLO Z. DUTERTE 
EXPLANATORY NOTE 
At present, online retail and other e-commerce services are slowly becoming the norm 
in the day to day lives of many Filipinos. Due to the pandemic, online purchases has 
been prevalent to minimize contact and to optimize the transactions of goods and 
services. 
In order to protect both the merchant and the consumer, an effective regulation of 
commercial activities through the internet or electronic means must be established. 
This is to ensure that consumer rights and data privacy are protected, innovation is 
encouraged, fair advertising practices and competition are promoted, online 
transactions are secured, intellectual property rights are respected, and product 
standards and safety are observed. 
This bill seeks to create an E-Commerce Bureau under the Department of Trade and 
Industry primarily tasked to protect consumers and merchants engaged in internet 
transactions. Though this measure, trust is built between online merchants and 
consumers via secure and reliable eCommerce platforms where goods and services 
are transacted online with appropriate transparency and utmost efficiency to 
encourage the creation of new products, services, business models, and processes. 
In view of the foregoing, approval of this bill is earnestly sought. 
PAOLO Z. DUTERTE 
August 3, 2022
8:40 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
1st Regular Session 
House Bill No. ________ 
Introduced by Representatives PAOLO Z. DUTERTE 
AN ACT 
PROTECTING CONSUMERS AND MERCHANTS ENGAGED IN INTERNET 
TRANSACTIONS, CREATING FOR THIS PURPOSE THE E-COMMERCE BUREAU, 
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Short Title. This Act shall be known as "Internet Transactions Act 
of 2022." 
SEC. 2. Declaration of Policy. - It is the policy of the State t to promote the 
growth of electronic commerce (e-commerce) in the country by building mutual trust 
between online sellers and consumers. The State recognizes the growth of the digital 
economy and the need to ensure that all goods and services transacted digitally be in 
accordance with specifications, and be reliable, secure, and accessible to all consumers 
for the purpose of increasing the productivity and efficiency of businesses. Towards 
these ends, the State shall ensure sustainable and fair e-commerce business practices 
through transparent and appropriate information disclosure, the maintenance and 
protection of data privacy rights, and an emphasis on the paramount importance of 
product safety. Likewise, the State shall provide meaningful access to effective 
mechanisms for the resolution of any and all disputes involving e-commerce, 
including alternative dispute resolution methods. 
SEC. 3. Definition of Terms. - As used in this Act: 
a. Compatibility refers to the ability of the digital product to function with
hardware or software with which digital products of the same type are
normally used, without the need for any conversion;
b. Consumer-to-consumer transactions refer to isolated transactions of an
individual or group of individuals with another individual or group of
individuals, done for personal, family, or household purposes, and not
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done in the ordinary course of business of any of the parties to the 
transaction; 
c. Goods refer to tangible products which are primarily for personal, family, 
household, or agricultural purposes which include, but are not limited to, 
food, drugs, cosmetics, and devices; 
d. Delivery Carrier refers to any natural or juridical person engaged in the 
business of providing personal delivery services of food, goods, documents, 
or any other item from one person to another for compensation; 
e. Devices refer to equipment or mechanism designed to serve a special 
purpose or perform a special function; 
f. Digital Platforms refer to internet intermediaries or businesses such as, but 
not limited to, e-marketplaces, online delivery enterprises, transportation 
booking, tourism booking, entertainment website and services, music 
products and services, social media, advertising, education and learning 
products, health websites and applications, labor services, among others, 
that match, connect, or facilitate interactions and transactions by and 
between any two or more parties to enable them to sell, exchange, share, or 
transact in any convenient manner, goods, services and digital products; 
g. Digital Products refer to goods and services produced and supplied in digital 
form such as, but not limited to, video, audio, applications, digital games, 
and any and all other software that allows the consumer to create, process, 
download, store, or access digital content, or allows the sharing of the same, 
or any such other interaction with digital content provided by other users 
of the service; 
h. E-commerce Philippine Trustmark refers to the mark approved by the E- 
commerce Bureau signifying the legitimacy and verified status of an online 
merchant and provides for consumer protection in online or e-commerce 
transactions and, whenever applicable, accountability in case of consumer 
complaints; 
i. E-commerce or Online Transaction refers to an exchange or transfer of goods 
and services using the internet; 
j. E-Marketplace refers to a digital platform such as, but not limited to, eBay, 
Amazon, Shopee, Lazada, Carousell, Facebook Marketplace, among others, 
whose business is to connect online consumers and online merchants, 
facilitating the exchange of information regarding products or services for 
the purpose of entering into an e-commerce transaction such as the 


 
 
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purchase of goods and services, tangible or intangible, and which may or 
may not provide information or services about payments and logistics; 
k. E-Retailer refers to a natural or juridical person engaged in selling products 
or services, tangible, or intangible, directly to online consumers through his 
own website or any other digital platform; 
l. Interoperability refers to the ability of the digital product to function with 
hardware or software different from those with which the digital product 
of the same type is normally used; 
m. Online Consumer refers to a natural or juridical person who may be a 
purchaser, lessee, recipient, or a prospective purchaser, lessor, or recipient, 
of goods and digital products sold, exchanged, leased, or transacted over 
the internet; 
n. Online Delivery Partner refers to a delivery carrier that performs delivery 
services through an online delivery service platform under contract with a 
digital platform or an E-marketplace; 
o. Online Delivery Service refers to the delivery of food, parcels, or any other 
item, contracted through a digital platform which may be an application, 
website, webpage, social media account, or any similar means, operated by 
an online delivery service platform; 
p. Online Delivery Service Platform refers to any natural or juridical person 
engaged in providing online delivery service for a fee through any digital 
platform; and, 
q. Online Merchant refers to any natural or juridical person selling or 
manufacturing, or otherwise offers for sale or manufacture, any goods or 
digital products in the ordinary course of business, either through an e-
marketplace, social media, website, application, or via any digital platform 
over the internet. 
 
SEC. 4. Scope and Coverage. - This Act shall apply to the sale or exchange of 
goods, services or digital products in the course of trade or business whether between 
businesses, households, individuals, and other public or private organizations, 
conducted over the internet. Consumer to consumer internet transactions shall not be 
covered under this Act. 
 
 
SEC. 5. E-commerce Bureau. - The E-commerce Division created through DTI 
Department Order No. 09-16 in accordance with Section 29 of Republic Act No. 8792 
or the "Electronic Commerce Act of 2000” is hereby abolished, and an E-commerce 
Bureau under the Department of Trade and Industry (DTI) shall be created to perform 
the following functions: 


 
 
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a. Implement, monitor, and ensure compliance of the provisions of this Act;  
b. Mandate entities engaged in e-commerce to register with the Online 
Business Registry; 
c. Formulate policies, plans, and programs to ensure the robust and dynamic 
development of e-commerce; 
d. Identify regulatory gaps affecting the e-commerce sector that are not 
sufficiently addressed by this Act or by existing laws or regulations, and 
recommend appropriate executive or legislative measures that foster the 
growth of the sector; 
e. Act as a virtual one-stop shop tasked to receive and address consumer 
complaints on unresolved internet transactions between parties, facilitate 
the speedy resolution of consumer complaints by the respective 
government agency having jurisdiction over the same, and track complaints 
referred to or initiated by it motu proprio to ensure the speedy and 
appropriate action by the agency to which such matters pertain or otherwise 
have been referred to; 
f. Coordinate with, or petition whenever appropriate, any entity, government 
agency, or instrumentality to act on any matter related to e-commerce 
consumer complaints; 
g. Monitor internet market behavior, consult with stakeholders and concerned 
agencies to better understand e-commerce transactions, and prepare and 
conduct periodic studies on the same; and 
h. Collaborate with the various departments of the national government and 
the local government units (LGUs) in the implementation of projects and 
programs promoting e-commerce, including information and education, as 
well as in ensuring a policy regime that is proactive; 
 
 
SEC. 6. Composition of the Bureau. -The Bureau shall be headed by a Director 
who must have sufficient knowledge and background in e-commerce and online 
transactions, and all the laws and processes related thereto. The Director shall be 
assisted by three (3) Assistant Directors; for policy and administration, for 
enforcement, and for operations. 
 
The Director and all assistant Directors shall be appointed by the President, 
upon the recommendation of the DTI Secretary, and must be career executive service 
officers with at least five (5) years of government service and such relevant experience 
in e-commerce development. 


 
 
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SEC. 7. Online Business Registry (OBR). - Within a period of one (1) year from 
the effectivity of this Act, the Bureau shall, in coordination with the Department of 
Information and Communications Technology (DICT), establish, maintain, and 
manage an Online Business Registry (OBR) which shall provide consumers access to 
data and information of e-marketplaces, e-retailers, online merchants, and such other 
digital platforms engaged in the sale of goods, services, and digital products for 
purposes of verifying their existence, confirming their identity, and other such 
relevant or needed information. 
 
 
SEC. 8. Regulatory Jurisdiction of the DTI. - For purposes of this Act, the DTI 
shall exercise primary regulatory jurisdiction over e-marketplaces, e-retailers, online 
merchants, and other digital platforms that sell or allow the sale or exchange of goods, 
services or digital products, and are purposely availing of the Philippine market. 
 
 
SEC. 9. Authority to Issue Take-Down Order. — Whenever the Bureau finds, 
by its own initiative or upon petition of a consumer or other concerned party, that the 
online sale of goods, services or digital products is violative of this Act, the "Consumer 
Act of the Philippines”, or any other related laws, the DTI Secretary, in order to abate 
any further violations, shall have the power to: 
 
a. Impose an order, as a form of penalty, directing that the violative online 
product listing, webpage, business page, application, social media post, 
profile, website or when applicable, any platform of the online merchant or 
e-retailer related to the illegal product, be taken down, or the same be made 
inaccessible in the Philippines, whether temporarily or permanently; and 
b. Issue an advisory that no entity shall process any payments made to any 
violating entity to ensure that the latter shall be rendered commercially 
inoperative. 
Provided that, the DTI Secretary may immediately issue a provisional take- 
down order to prevent grave and irreparable injury to the public, when the following 
conditions are present: 
 
a. When the DTI Secretary finds that a good, service or digital product is 
imminently injurious, unsafe, or dangerous; or 
b. When the seller under investigation has been previously penalized under 
this section. 
 
Whenever the DTI Secretary orders the immediate take-down, recall, ban, or 
seizure of an illegal product from public online sale or distribution, the seller, 
distributor, manufacturer, or producer thereof shall be given an opportunity to be 
heard within forty-eight (48) hours from the issuance of such order. 
 


 
 
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The take-down order, whether imposed as a penalty or provisionally granted, 
shall be directed against the e-retailer, online merchant, or the owner or operator of 
the e-marketplace or digital platform. Copies of the order shall likewise be served on 
entities whose cooperation would be required for its enforcement such as but not 
limited to the duly registered internet service provider involved, related payment 
gateways, and other government agencies. 
 
 
The DTI Secretary may revoke the take down order after hearing the 
explanation submitted by the seller, distributor, manufacturer, or producer; in which 
case the order revoking the take down order shall be served on the entities mentioned 
and in the same manner stated in the preceding paragraphs. 
 
SEC. 10. Referral of Complaints. - The Bureau shall refer any complaint it receives 
involving violation of other laws committed in the course of an online or e-commerce 
transaction to the appropriate regulatory authority for action. The Bureau shall track 
the complaints or referrals made to other authorities and coordinate with them to 
ensure that matters are duly resolved in accordance with Republic Act No. 11032, 
otherwise known as the "Ease of Doing Business and Efficient Government Service Delivery 
Act of 2018". 
 
 
SEC. 11. Obligations of E-Marketplaces and other Digital Platforms. - 
 
a. E-Marketplaces and e-commerce digital platforms shall ensure that their e-
commerce transactions shall: 
1. Be clearly identifiable as an e-commerce transaction; 
2. Identify the person or persons on whose behalf the e-commerce 
transaction is made; and 
3. Identify any promotional offers including discounts, premiums, gifts, 
and any promotional game or competition, and ensure that any 
condition to qualify for them are easily accessible, and clearly set forth. 
b. E-Marketplaces and e-commerce digital platforms shall require all online 
merchants to submit the following, prior to listing with their platforms: 
1. Name of the online merchant accompanied by at least two (2) valid 
government identification cards; 
2. Geographic address where the online merchant is located; 
3. Contact details of the online merchant which must include a mobile or 
landline number and a valid e-mail address; and 
4. In instances when the online merchant exercises a regulated profession, 
the online merchant shall be required to submit details of membership 


 
 
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in any professional body or similar relevant institution with which the 
online merchant is registered or otherwise is a member of. 
Except for the government identification cards mentioned under Section 
11(b)(i), the information required under this paragraph shall be published 
or posted on the e-commerce platforms for transparency.  
 
c. E-Marketplaces and e-commerce digital platforms are mandated to 
maintain a list of all online merchants registered under their platform, 
which shall be regularly verified. This list shall be submitted to the Bureau 
and updated every six (6) months. 
d. E-Marketplaces and e-commerce digital platforms shall not allow the sale 
of regulated goods such as, but not limited to, chemicals, food, and drugs 
without verifying the online merchant's compliance with regulatory 
permits and licenses, sale procedures and limitations, and other relevant 
conditions for the sale as may be imposed by any law or local government 
regulation. 
 
 
SEC. 12. Obligations of E-Retailers and Online Merchants. - An e-retailer or 
online merchant of goods, services or digital products, as defined under this Act, shall 
exercise the following responsibilities: 
 
a. Ensure that the goods are received by the online consumer: 
1. In the same condition, type, quantity, and quality as described and 
stated and, in applicable circumstances, possess the functionality, 
compatibility, interoperability, and other features required by the sales 
contract, fit for the purpose for which it was intended by its nature; 
2. In the same condition, type, quantity and quality of a sample, picture, or 
model of the goods shown by the e-retailer or online merchant upon 
request of the online consumer, or of additional descriptions or 
specifications provided by the e-retailer or online merchant upon 
inquiries made by the online consumer; and 
3. It must also be fit for the particular purpose for which the online 
consumer requires them, as communicated to the e-retailer or online 
merchant at the time of the perfection of the contract, and which the e-
retailer or online merchant has accepted;  
b. All the goods shall: 
1. Be delivered together with its accessories including all other packaging, 
installation inclusions, any user manual or other instructions as 


 
 
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advertised or as described, if applicable, with relevant information 
stated in the packaging, printed or written in Filipino and/or English; 
and 
2. Possess qualities and performance capabilities including functionality, 
compatibility, and interoperability that are standard and normal in 
goods of the same type which the consumer may expect given its nature 
and considering any public statement or testimonial made by or on 
behalf of the e-retailer, online merchant, or other persons in earlier links 
of the chain of transactions, including the producer, unless the e- retailer 
or online merchant shows that: 
 
i. 
The e-retailer or online merchant was not, and could not have been, 
reasonably aware of the statement in question; 
ii. 
By the time of conclusion of the contract, the statement had already 
been corrected; or 
iii. 
The decision to buy the goods could not have been influenced by the 
statement. 
 
c. Where the e-retailer or online merchant is a digital product provider, it shall 
ensure that the digital product has the qualities and performance features, 
in relation to functionality, compatibility, interoperability, accessibility, 
continuity, and security, which are standard and normal for a digital 
product of the same type as advertised or described. 
d. Where the contract provides that the digital product is to be supplied or 
made accessible to the online consumer over a period of time, the e-retailer 
or online merchant may modify the digital product beyond what is 
necessary for its maintenance, if the following conditions are met: 
1. The contract allows, and provides a valid reason for, such a 
modification; 
2. Such a modification is made without additional cost to the consumer; 
and 
3. The online consumer is informed in a clear and comprehensible manner 
of the modification. 
e. Where the transaction involves a digital platform that offers a performance 
of a service, the e-retailer or online merchant shall ensure the completion of 
the same in accordance with the contract and as advertised. 


 
 
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f. An e-retailer or an online merchant that operates its own digital platform 
shall publish on its homepage the following: 
1. Name of the e-retailer or online merchant; 
2. Geographic address where the e-retailer or online merchant is located; 
and 
3. Contact details of the e-retailer or online merchant which must include 
a mobile or landline number and a valid e-mail address to ensure direct 
and efficient communication with consumers. 
This shall be submitted to the Bureau and must be accompanied by at least 
two (2) government identification cards as valid proof of identity. 
 
g. Where the e-retailer or online merchant is an online delivery service 
platform, it shall require its consumers to register by showing valid proof 
of identity, and an e-mail address or mobile phone number. 
h. E-retailers or online merchants shall issue paper or electronic invoices or 
receipts for all sales. An electronic invoice or receipt shall have the same 
legal effect as a paper invoice or receipt. 
 
Any agreement between the e-retailer or online merchant and the online 
consumer is valid only if, at the time of the conclusion of the contract, the online 
consumer has knowledge of the specific condition of the goods, services or digital 
products and has expressly accepted such condition. 
 
 
SEC. 13. Rights and Obligations of Online Consumers. – 
 
a. When the online merchant is liable to the consumer because of a lack of 
conformity with the contract, the consumer may pursue any of the 
following remedies: 
1. A repair or replacement of the goods or digital product which must be 
completed within a reasonable time and without any significant 
inconvenience to the consumer, taking into account the nature and the 
purpose for which the consumer acquired such; 
2. A proportionate reduction of the price if the consumer chooses to keep 
the good or digital product despite the lack of conformity with the 
contract, or the termination of the contract with restitution of the price, 
in the following instances: 
i. 
When repair or replacement is impossible or unlawful; 


 
 
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ii. 
The online merchant has not completed repair or replacement within 
a reasonable time; 
iii. 
When repair or replacement may cause significant inconvenience to 
the consumer; or 
iv. 
When the online merchant has declared, or it is equally clear from 
the circumstances, that the online merchant may not bring the goods 
or digital product in conformity with tie contract within a reasonable 
time; 
3. When applicable, the consumer is entitled to withhold the payment of 
any outstanding part of the purchase price until the online merchant has 
brought the goods or digital product in conformity with the contract; 
4. The consumer is not entitled to a remedy to the extent that the consumer 
has contributed to any ambiguity or lack of conformity with the contract 
or its effects; 
5. When the online merchant remedies the lack of conformity with the 
contract by replacement, the online merchant is entitled to the return of 
the replaced goods or digital products at the online merchant's expense, 
unless otherwise agreed upon by the parties; 
6. When the consumer had installed the goods or digital products in a 
manner consistent with their nature and purpose, before the lack of 
conformity with the contract became apparent, the costs for the removal 
of the non-conforming goods or digital products, the installation of the 
replacement and all associated costs shall be for the account of the online 
merchant; 
7. In case of goods or digital products that do not conform with the 
contract, the consumer is not liable to pay for the use of the non-
conforming goods or digital products prior to its replacement; 
8. The consumer may exercise the choice in the alternative between repair 
or replacement of the purchased good or digital product, unless such 
choice is impossible in which case the consumer may choose to 
terminate the contract and return the item, and the online merchant shall 
refund the full amount paid by the consumer. 
b. Consumers of online delivery service platforms may hold delivery carriers 
liable for damages if the latter fail to exercise due diligence and reasonable 
care over the goods transported by them. 


 
 
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c. To protect the rights of delivery carriers, it shall be unlawful for consumers 
to: 
1. Cancel confirmed orders for the delivery of food or grocery items when 
the said items have already been paid for by, or is already in the 
possession of the online delivery partner or delivery service, or is 
otherwise in transit to the consumer unless: 
i. 
The consumer uses credit card services as a means for the payment 
of the service and the payment will still be credited notwithstanding 
the cancellation; 
ii. 
The consumer remits the reimbursement and payment to the online 
delivery partner as a pre-condition for the cancellation of the order; 
or 
iii. 
The delivery of goods will be or was delayed for at least one (1) hour 
from the expected time of arrival due to the fault or negligence of the 
online delivery partner or delivery service. 
2. Use the personal information of another person such as, but not limited 
to, name, address, and contact number when registering in online 
delivery service platforms; 
3. Place an order under the name of another person, unless the latter 
consented to the same, or placing an order using a fictitious name 
and/or address; or 
4. Unreasonably shame, demean, embarrass, or humiliate online delivery 
partners. 
 
SEC. 14. Right to Terminate the Contract - If the goods or digital products 
delivered do not conform to the contract, the consumer may exercise the right to 
terminate the contract by giving notice to the online merchant. Where the lack of 
conformity relates to only some of the goods or digital products delivered under the 
contract, the consumer may terminate the contract only in relation to the non-
conforming goods or digital products and any such accessory acquired as an adjunct 
to the same. 
 
When the consumer terminates a contract as a whole or in relation to some of 
the non-conforming goods or digital products delivered: 
 
a. The online merchant shall reimburse to the consumer the price paid not 
later than fourteen (14) days from receipt of the notice and without undue 
delay whatsoever; 


 
 
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b. Upon receipt of the reimbursement from the online merchant, the consumer 
shall return, at the online merchant's expense, the goods or digital products 
not later than fourteen (14) days from the receipt of the reimbursement and 
without undue delay whatsoever, provided that the online merchant may 
waive this requirement at any time;  
c. When the goods or digital products cannot be returned because of 
destruction or loss, the consumer shall pay the monetary value which the 
non-conforming goods or digital products would have had at the date when 
the return was to be made had they been kept by the consumer without 
destruction or loss until that date, unless the destruction or loss has been 
caused by a lack of conformity of the goods or digital products with the 
contract; and 
d. The consumer shall pay for a decrease in the value of the goods or digital 
products only to the extent that the decrease in value exceeds depreciation 
through regular use. The payment for decrease in value shall not exceed the 
price paid for the goods or digital products. 
 
SEC. 15. Damages. - The online merchant is liable for damages to the consumer 
due to the lack of conformity with the contract of the goods or digital products: 
Provided, that such becomes apparent within six (6) months from receipt of the said 
goods or digital product. 
 
No damages may be recovered from this Act after the lapse of two (2) years 
from the time the consumer receives the goods or digital products. 
 
 
SEC. 16. Online Dispute Resolution. - The DTI shall develop an Online Dispute 
Resolution (ODR) platform which is a single point of entry for parties to e-commerce 
transactions that are seeking out-of-court resolution of disputes when the platforms 
or merchants fail to resolve or assist consumers with their concerns. 
 
a. The ODR shall be an interactive website accessible electronically and free of 
charge. The DTI, through the Bureau, shall be responsible for its operation, 
including its maintenance, funding, and data security. The ODR platform 
must be user-friendly, easily accessible, and data privacy compliant. 
b. The DTI shall establish a network of ODR contact points from different 
government agencies involved in consumer complaints as specified in 
Republic Act No. 7394, otherwise known as the "Consumer Act of the 
Philippines”, including the Department of Agriculture (DA), Department of 
Tourism (DOT), and the Department of Health (DOH), among others. The 
Intellectual Property Office of the Philippines (IPO) shall also be part of the 
ODR network. 


 
 
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c. Each agency shall have a designated ODR contact point whose name and 
contact information are to be submitted to the DTI. The head of the agency 
shall confer responsibility to the respective ODR contact points to ensure 
that timely and competent support is provided to the resolution of 
complaints and disputes submitted through the ODR platform. 
d. The ODR platform shall have the following functions: 
1. Provide an electronic form where alternative dispute resolution entities 
shall transmit the information; 
2. Provide a feedback system that will allow parties to express their views 
on the efficiency of the ODR platform and on the response of the entity 
handling their dispute; and 
3. Make available to the public, general information on alternative dispute 
resolution as a means of out-of-court dispute resolution and the entities 
which are competent to deal with such disputes. 
e. The DTI shall ensure that the information on the website is accurate and up 
to date. 
f. Online e-commerce platforms and online merchants shall provide on their 
websites an electronic link to the DTI-ODR platform on their homepage. 
 
SEC. 17. Liability. - An e-marketplace or e-commerce digital platform shall be 
solidarily liable with its listed online merchant, after due notice and hearing, under 
the following circumstances: 
 
a. If it fails to provide a mechanism for consumers to dispute, be refunded, or 
validly cancel orders. For this purpose, refunds to cash-paying customers 
should also be in cash; 
b. When the online e-commerce platform fails to properly resolve disputes, 
refunds, or valid cancellation of orders of consumers within a reasonable 
time; 
c. If it knows or should have known that the goods, services or digital 
products sold are illegal, do not comply with existing laws, or otherwise 
infringe on intellectual property rights; 
d. If it fails to take necessary measures to prevent or curtail the sale or 
distribution of the products which are illegal, do not comply with existing 
laws, or otherwise infringe on intellectual property rights within a 
reasonable period. 


 
 
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Liability shall not attach to the e-marketplace or e-commerce digital platform 
in instances when the illegality or infringing nature of the goods, services or digital 
products advertised, offered for sale, or sold through e-marketplace or e-
commerce digital platform is not apparent, provided that: 
 
1. The online e-commerce platform offers a simple and straightforward 
procedure for consumers, rights-holders, or online merchants to report 
the existence of illegal or infringing goods, services or digital products 
in the platform; 
2. Consumers, rights-holders, and online merchants are properly informed 
on the policy implementing such procedure; 
3. Any report of illegal or infringing goods, services or digital products 
shall be expeditiously acted upon through investigations, suspensions, 
and take-down measures, if necessary, by the platform; 
e. If the online e-commerce platform fails to comply with the requirements of 
this Act involving the collection, publication, and submission of online 
merchant information; and 
f. If the e-commerce platform operator fails, after notice, to act expeditiously 
to remove, or disable access to, goods, services or digital products 
appearing on their platform that they know or should have known to be 
non-compliant with law, or otherwise infringe on intellectual property 
rights. 
 
SEC. 18. E-commerce Philippine Trustmark. - To provide assurance of safety 
and security in transactions over the internet, an e-commerce Philippine Trustmark 
shall be developed for online merchants. 
 
a. A Trustmark and Trustmark Portal shall be created which shall be 
administered and managed by the DTI. 
b. A Trustmark on the website of an online merchant signifies that the 
company is committed to guarantee honesty, fairness, and integrity in 
dealing with its customers, and is committed to refrain from engaging in 
any illegal, fraudulent, unethical, or unfair business practices. 
c. In case of a complaint involving the purchase of their products or services, 
online merchants with the Trustmark shall give consumers the option of 
filing claims through the Trustmark portal, if the online merchant's 
customer care service has not been able to resolve the issue. 
d. The Trustmark shall be linked to the DTI's online dispute resolution.  


 
 
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e. The Trustmark shall be considered an official document for purposes of the 
crime of falsification as defined under the Revised Penal Code and other 
related laws. Any E-marketplace, e-retailer, online merchant, or e-
commerce digital platform that is found guilty of falsifying or forging the 
E-commerce Philippine Trustmark, shall be subjected to a take-down order 
in accordance with Section 9 of this Act. 
 
SEC. 19. Implementing Agencies, Rules, and Regulations. - Within sixty (60) 
days from the promulgation of this Act, the necessary rules and regulations shall be 
formulated and issued by the DTI, in consultation with the DICT, IPO, DOH, the Food 
and Drug Administration (FDA), and other relevant government agencies necessary 
for the proper implementation of this Act. 
 
 
SEC. 20. Jurisdiction of Other Agencies. - The agencies mentioned in Section 19 
of this Act shall continue to exercise the powers and duties provided to them under 
existing laws, unless repealed or modified accordingly. 
 
 
SEC. 21. Penalties. – 
 
a. Any e-marketplace, e-retailer, online merchant or e-commerce digital 
platform that is found guilty of any deceptive, unfair or unconscionable 
sales act or practice as provided for under Republic Act No. 7394 or the 
"Consumer Act of the Philippine” done through the internet, shall be subjected 
to a take-down order in accordance with Section 9 of this Act. It shall also 
be punished with a fine of not less than Fifty Thousand Pesos (PhP50,000.00) 
but not more than Five Hundred Thousand Pesos (PhP500,000.00), or an 
imprisonment of not less than five (5) months but not more than (1) year, or 
both, upon the discretion of the court.  
b. Any e-marketplace, e-retailer, online merchant or e-commerce digital 
platform that sells or allows the sale of illegal, or imminently injurious, 
unsafe or dangerous goods, services or digital products shall be subject to a 
take-down order in accordance with Section 9 of this Act. It shall also be 
punished with: 
1. Imprisonment of one (1) year to three (3) years plus a fine ranging from 
Fifty Thousand Pesos (PhP50,000.00) to One Hundred Fifty Thousand 
pesos (PhPl50,000.00) for the first offense. 
2. Imprisonment of three (3) years and one (1) day to six (6) years plus a 
fine ranging from One Hundred Fifty Thousand Pesos (PhPl50,000.00) 
to Five Hundred Thousand Pesos (PhP500,000.00) for the second 
offense. 


 
 
16 
3. Imprisonment of six (6) years and one (1) day to nine (9) years plus a 
fine ranging from Five Hundred Thousand Pesos (PhP500,000.00) to 
One Million Five Hundred Thousand Pesos (PhPl,500,000.00) for the 
third and subsequent offenses.  
c. Any e-retailer or online merchant who shall willfully or unreasonably 
refuse to provide the remedies under Section 13 (a), shall be subjected to a 
take-down order in accordance with Section 9 of this Act, and be punished 
with a fine not less than One Hundred Thousand Pesos (PhP100,000.00), but 
not more than Three Hundred Thousand Pesos (PhP300,000.00), in addition 
to the payment of the actual value of the goods or digital products involved. 
d. Any person who shall violate Section 13 (c) of this Act, shall be punished 
with a penalty of arresto mayor or a fine not exceeding One Hundred 
Thousand Pesos (PhP100,000.00), without prejudice to any other available 
remedies under existing laws. 
 
In case any violation of this Act is committed by a partnership, corporation or 
any juridical entity, the President, the General Manager, and other officers, employees 
and agents, who shall consent to, or shall knowingly tolerate such violation shall be 
criminally liable. 
 
 
SEC. 
22. 
Appropriations. 
- 
The 
amount 
of 
Fifty 
Million 
Pesos 
(PhP50,000,000.00) for the initial operation of the Bureau is hereby appropriated out 
of any funds in the National Treasury not otherwise appropriated. Thereafter, such 
sum as may be necessary for the continued implementation of this Act shall be 
included in the annual General Appropriations Act. 
 
 
SEC. 23. Separability Clause. - Should any provision or part of this Act be 
declared unconstitutional or invalid, the other provisions and parts hereof, insofar as 
they are separable from the invalid ones, shall remain in full force and effect. 
 
 
SEC. 24. Repealing Clause. - All laws, decrees, orders, issuances, rules and 
regulations or parts thereof which are inconsistent with this Act are hereby repealed 
or modified accordingly. 
 
 
SEC. 25. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in at least two (2) newspapers of general 
circulation. 
 
Approved,