Republic of the Philippines 
HOUSE OF THE REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
INTRODUCED BY REPRESENTATIVE KRISTINE SINGSON-MEEHAN 
AN ACT 
PROVIDING 
PROTECTION 
TO 
CONSUMERS 
AND 
MERCHANTS 
ENGAGED IN INTERNET TRANSACTIONS, CREATING FOR THE 
PURPOSE 
THE 
ELECTRONIC 
COMMERCE 
BUREAU, 
AND 
APPROPRIATING FUNDS THEREFOR 
EXPLANATORY NOTE 
This measure supports the House leadership in its efforts at aligning with the 
administration’s objective of promoting and maintaining a robust electronic commerce 
environment by building trust between online merchants and consumers.  
We need to recognize the value and potential of the digital economy to increase 
competition and improve productivity. In order to do this, we need to establish a more 
secure and reliable eCommerce platform where goods and services are transacted 
online with utmost transparency and maximum efficiency to encourage e-commerce. 
Due to Filipinos’ reliance on the internet and other technological innovations, the 
way business is conducted has been transformed. Shopping online either using mobile 
applications like Lazada, Shopee, Zalora and the like, or through online selling websites, 
has now become the norm, being the more convenient option to the consumers. With the 
use of mobile applications, we have definitely become accustomed to doing our purchases 
while inside the safety, convenience and comforts of our own homes.  Consumers are not 
the only ones benefitting from this phenomenon. eCommerce has also benefitted our 
MSME’s, as they can now tap and have access to more markets previously inaccessible to 
them, at low costs. The proliferation of eCommerce in our country necessitates the creation 
of an Electronic Commerce Bureau for the effective protection of the merchants and 
consumers alike. 
A similar bill was filed in the 18th Congress by Representatives Wes Gatchalian. It 
was approved on Third Reading by the House of Representatives and transmitted to the 
Senate. 
In view of the foregoing, the approval of this bill is urgently sought. 
August 9, 2022
5:00 pm
3422


Republic of the Philippines 
HOUSE OF THE REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
INTRODUCED BY REPRESENTATIVE KRISTINE SINGSON-MEEHAN 
AN ACT 
PROVIDING 
PROTECTION 
TO 
CONSUMERS 
AND 
MERCHANTS 
ENGAGED IN INTERNET TRANSACTIONS, CREATING FOR THE 
PURPOSE 
THE 
ELECTRONIC 
COMMERCE 
BUREAU, 
AND 
APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
CHAPTER 1 
GENERAL PROVISIONS 
SECTION 1. Short Title. – This Act shall be known as the “Internet Transactions Act”. 
SEC. 2. Declaration of Policy. – It is the policy of the State to promote and maintain a 
robust electronic commerce (eCommerce) environment in the country by building trust 
between online merchants and consumers. The State recognizes the value and potential 
of the digital economy to increase competition and improve productivity, thus the need to 
establish 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. Towards these ends, 
the State shall ensure an effective regulation of commercial activities through the internet 
or electronic means 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 where product 
standards and safety are observed. 
SEC. 3. Definition of Terms. – As used in this Act: 
(a) Business to business transaction refers to internet transactions conducted
over marketplaces that facilitate business to business electronic sales of new
and used merchandise using the internet;
3422


 
(b)  Business to consumer transaction refers to the process of selling 
products and services by businesses to consumers who are end- users, 
generally for a profit; 
 
 
(c)  Compatibility refers to the ability of the digital content or digital service to 
function with hardware or software with which digital content or digital 
services of the same type are normally used, without the need to convert the 
digital content or digital service; 
 
(d)  Consumer refers to a person who is a purchaser, lessee, recipient or 
prospective purchaser, lessor or recipient of consumer products, services, 
credit, technology, advertising or promotion, and other items in 
eCommerce; 
 
(e)  Consumer-to-consumer transactions (C2Cs) refer to one-off, petty, or 
occasional low-value transactions of an individual or group of individuals to 
another that are not made in the ordinary course of business of any party to 
the transaction; 
 
(f) Digital content refers to data which are produced and supplied m electronic 
form; 
 
(g)  Digital service refers to a service that allows the consumer to create, 
process, store or access data in electronic form or allows the sharing of or 
any other interaction with data in electronic form uploaded or created by 
the consumer or other users of that service; 
 
(h)  Digital financial services refer to services of a financial nature that are 
made available to the public through the internet, including banking 
services, insurance and insurance-related services, payment and money 
transmission services, including remittance services, online lending 
services, online investment services, and other similar or related services; 
 
(i)  Electronic commerce or eCommerce refers to the production, distribution, 
marketing, sale, or delivery of goods and services by electronic means; 
 
(j)  eCommerce platform operator refers to a natural or juridical person that 
solicits the purchase of goods and services through digital platforms and 
marketplaces whose business is to connect consumers and online 
merchants, facilitating sales of products, goods or services through the 
internet with the presence and use of monetary transactions. These shall 
include social media websites and any other similar platforms in so far that 
it is used for business; 
 
(k)  Functionality refers to the ability of the digital content or digital service to 
perform its functions according to its purpose; 


 
 
(l)  Goods refer to physically or digitally produced items over which ownership 
rights may be established and whose economic ownership may be passed 
from one institutional unit to another by engaging in transactions; 
 
(m)  Internet access and service provider refer to an entity that provides 
households, businesses, and government access to the internet through the 
physical transport infrastructure; 
 
(n)  Internet retailing of consumer goods refers to engaging in any eCommerce 
activity other than online travel services, online media, ride hailing services, 
and digital financial services: 
 
(o)  Internet transaction refers to the sale or purchase of goods or services, 
whether between businesses, households, individuals, governments, and 
other public or private organizations, conducted over the internet. At least 
one point of these transactions is conducted over the internet but the 
payment and ultimate delivery of the goods or service may be conducted on 
or offline; 
 
(p)  Interoperability refers to the ability of the digital content or digital service 
to function with hardware or software different from those with which 
digital content or digital services of the same type are normally used; 
 
(q) Online merchant refers to a natural or juridical person, regardless of 
location, that directly sells, manufactures goods, or offers for sale, any good 
or service, either individually or through a platform, in the ordinary course 
of business, over the internet, through a website, an online marketplace, a 
social media website or application or through other similar means; 
 
(r)  Online media refers to digital media products or services pertaining to 
advertising, gaming, subscription music, and video on demand, available 
through an online platform, application, website, webpage, social media 
account, or other similar platforms operated by the provider, regardless of 
whether the provider is authorized to engage in eCommerce; 
 
(s)  Online travel services refer to services that facilitate the reservation, 
purchase or discounting of flights, hotel accommodations, and vacation 
rental spaces, through an online platform, application, website, webpage, 
social media account, or other similar platform operated by the provider, 
regardless of whether the provider is authorized to engage in eCommerce in 
the Philippines; 
 
(t)  Price refers to money or a digital representation of value that is due in 
exchange for the supply of goods, services, digital content, or digital 
service; 
 


 
(u)  Producer refers to the manufacturer or importer of goods, or any person 
purporting to be a manufacturer who places its name, trademark, or other 
distinctive sign on goods; 
 
(v)  Repair refers to bringing defective goods into conformity with the contract; 
 
(w)  Ride hailing service refers to the delivery of food, goods or other 
merchandise, or of personal transport services, contracted through an online 
platform, application, website, webpage, social media account, or other 
similar platform operated by the provider, regardless of whether the 
provider is authorized to engage in eCommerce in the Philippines; 
 
(x)  Ride hailing service partner refers to third-parties who offer their services 
to transport or deliver food, parcels or any other item, on behalf of ride 
hailing service providers; 
 
(y)  Ride hailing service provider refers to those, who in the ordinary course of 
trade or business, provide for or facilitate ride hailing services; and 
 
SEC. 4. Scope and Coverage. – Unless otherwise specified, this Act shall apply to any 
stage of all business-to-business and business-to-consumer eCommerce and internet 
transactions including those related to the following activities: 
 
a. Internet retail of consumer goods and services 
b. Online travel services 
c. Online media providers 
d. Ride hailing services; and 
e. Digital financial service 
 
Consumer-to-consumer transactions shall be exempt from the operation of this 
Act, without prejudice to the application of other laws. Unless expressly specified, 
nothing in this Act shall be construed as to diminish or deprive the regulatory 
jurisdiction conferred by law upon other government agencies with respect to regulated 
services that fall within the scope of eCommerce. 
 
SEC. 5. Extra-territorial Application. – A person engaging in eCommerce who 
purposefully availed of the Philippine market shall be deemed as doing business in the 
Philippines and be subject to applicable Philippine laws and regulations, including this 
Act. One who purposely avails of the Philippine market without establishing any real 
or legal presence in the Philippines shall be required to notify the eCommerce Bureau 
created under Section 7 of this Act for inclusion in the Registry of Online Business 
established under Section 11 of this Act or may designate a resident agent who shall be 
authorized to receive on their behalf notices or processes in any legal proceeding in the 
Philippines. The accessibility of goods and services to consumers in the Philippines 
shall be considered in ascertaining whether one engaged in eCommerce is purposefully 
availing the Philippine market. 


 
 
SEC. 6. Equal Treatment of Online and Offline Commercial Activities. – Unless 
otherwise specified, this Act shall be construed to ensure that those who engage in 
eCommerce may not enjoy any benefit that is more favorable, nor be placed at a 
disadvantage, in relation to other enterprises that offer goods and services offline in the 
Philippines. 
 
CHAPTER 2 
ECOMMERCE BUREAU 
 
SEC. 7. Creation of the eCommerce Bureau. – To ensure the attainment of the 
objectives of this Act and promote the growth of eCommerce, there is hereby created 
an eCommerce Bureau under the Department of Trade and Industry (DTI), hereinafter 
referred to as the Bureau, which shall be organized within six (6) months after the 
effectivity of this Act. The Bureau shall have the following powers and functions: 
 
(a)  Implement, monitor, and ensure strict compliance by eCommerce 
stakeholders of the provisions of this Act; 
 
(b)  Build trust between consumers and sellers by requiring eCommerce 
platform operators, online merchants, or any other entity who engages in 
eCommerce to register their business with the Bureau; 
 
(c)  Formulate policies, plans and programs to ensure the robust and dynamic 
development of eCommerce; 
 
(d)  Identify regulatory gaps affecting the eCommerce sector that are not 
sufficiently addressed by this Act or by existing laws or regulations, and 
recommend appropriate executive or legislative measures, including those 
that can be undertaken by the DTI on its own, that fosters the growth of the 
sector; 
 
(e)  Act as a virtual central unit tasked to receive and address consumer 
complaints on internet transactions, facilitate the speedy resolution of 
consumer complaints by the respective government agency which has 
jurisdiction over it, and track complaints referred to or initiated by it to 
ensure the speedy and appropriate action by the agency to which such 
matters have been referred to; 
 
(f)  Coordinate with, compel or petition whenever appropriate, any entity, 
government agency or instrumentality to take action on any matter that may 
impede eCommerce; 
 
 
(g)  Investigate, motu proprio, and file the appropriate cases for violations of 
any provision of this Act; 
 


 
(h)  Intervene or participate, in a manner as may be appropriate, in cases 
initiated or pending with other regulatory agencies involving eCommerce or 
violations of any provision of this Act; 
 
(i)  Monitor internet transactions and undertake consultation with stakeholders 
and affected agencies for the purpose of understanding market behavior in 
order to update policies relevant to online transactions; 
 
(j)  Monitor the compliance of other government agencies or instrumentalities 
on their compliance to the provisions of this Act and the eCommerce 
roadmap; 
 
(k) Collect, compile, analyze, abstract, and publish eCommerce data for policy 
formulation and program development; 
 
(l)  Prepare and conduct periodic studies on eCommerce; 
 
(m) Collaborate with departments of the National Government including local 
government units and government-owned or controlled corporations in 
implementing programs to promote eCommerce, including information, 
education, and campaign, as well as in ensuring a policy regime that is 
proactive; and 
 
(n)  Ensure that those who engage in eCommerce may not enjoy any benefit that 
is more favorable, nor be placed at a disadvantage, in relation to other 
enterprises that offer goods and services offline in the Philippines. 
 
In the exercise of the above-stated functions, the Bureau, in coordination with 
other government agencies, may convene public consultations or inter-agency meetings 
to ensure multi-stakeholder input in the development of eCommerce policies. 
 
Government agencies and instrumentalities involved in the maintenance and 
development of the internet infrastructure of the Philippines, such as the Department of 
Information 
and 
Communications 
Technology 
(DICT) 
and 
the 
National 
Telecommunications Commission (NTC), shall cooperate with the Bureau on issues 
within their respective regulatory jurisdiction that affect the conduct of eCommerce. 
 
SEC. 8. Composition of the Bureau. – The Bureau shall be headed by a Director to be 
appointed by the President of the Philippines, as recommended by the Secretary of 
Trade and Industry. 
The Director shall oversee the day-to-day operations of the Bureau and shall be 
assisted by three (3) Assistant Directors each for policy and administration, 
enforcement, and operations. 
 
The Secretary of Trade and Industry shall determine the organizational structure 
and staffing pattern of the Bureau, subject to the approval of the Secretary of Budget 


 
and Management. 
 
SEC. 9. Subpoena. – In the exercise of its powers under this Act, the Director of the 
Bureau shall have the power to issue summons, subpoena ad testificandum and 
subpoena duces tecum to alleged violators or witnesses to compel their attendance and 
the production of documents in investigations or proceedings before the Bureau. 
 
The failure to comply with a subpoena ad testificandum or subpoena duces 
tecum shall authorize the filing of a case for indirect contempt under the Rules of Court 
with the Regional Trial Court. A certification duly issued by the Bureau that a 
respondent to the subpoena ad testificandum or subpoena duces tecum refuses to 
comply with the same, despite due notice, shall be sufficient evidence to authorize the 
Regional Trial Court to cite the respondent with contempt. The Regional Trial Court 
shall likewise have the authority to issue any such order or relief, including 
imprisonment, in order to compel compliance with the subpoena ad testijicandum or 
subpoena duces tecum. The Regional Trial Court may, in addition, also issue a 
subpoena ad testificandum or subpoena duces tecum addressed to the respondents 
identical to the one subject of the complaint. 
 
SEC. 10. Authority to Promulgate Rules and Regulations. – As the focal authority of 
the National Government for the development of policies and strategies towards the 
growth of eCommerce, the Bureau shall have the authority to promulgate rules and 
regulations covering areas or activities concerning eCommerce and to impose fines to 
compel compliance with such rules. The grant of this rule-making authority to the 
Bureau shall be ancillary to any duly constituted regulatory jurisdiction granted or that 
may be granted to other government agencies by law, including Executive Order No. 
292, series of 1987, instituting the "Administrative Code of 1987", Republic Act No. 
7394, otherwise known as the "Consumer Act of the Philippines", Republic Act No. 
7653, as amended, otherwise known as "The New Central Bank Act", Republic Act 
No. 8293, as amended, otherwise known as the "Intellectual Property Code of the 
Philippines", Republic Act No. 8799, otherwise known as the "Securities Regulation 
Code", Republic Act No. 9239, otherwise known as the "Optical Media Act of 2003", 
Republic Act No. 9593, otherwise known as the "Tourism Act of 2009", Republic Act 
No. 10173, otherwise known as the ""Data Privacy Act of 2012", Republic Act No. 
10667, otherwise known as the "Philippine Competition Act", Republic Act No. 11127, 
otherwise known as " The National Payment Systems Act", and Republic Act No. 
11232, otherwise known as the "Revised Corporation Code". 
 
The Bureau shall defer the exercise of rule-making power to the above-listed 
government agencies conferred by law with regulatory jurisdictions over eCommerce 
providers or platforms unless the other agency declines to exercise its jurisdiction or 
does not act within a timely manner. 
 
SEC. 11. Registry of Online Business (ROB). – Within a period of one (1) year from 
the effectivity of this Act, the Bureau shall, in coordination with the DICT, establish, 
manage and maintain a ROB which shall provide consumers access to data and 
information of registered online business entities for purposes of verifying the validity, 


 
existence of and other relevant information pertaining to business entities. 
 
The DICT, in consultation with the DTI, the National Privacy Commission 
(NPC), the Philippine Competition Commission (PCC) and other concerned agencies, 
shall issue the rules and regulations to govern the development, management, 
operation, and maintenance of the ROB. 
 
CHAPTER 3 
SUPERVISION OF ECOMMERCE 
 
SEC. 12. Authority to Issue Take Down Order. – The Secretary of Trade and Industry, 
upon due notice and hearing regarding violations of this Act, the Consumer Act of the 
Philippines, or any other related trade or consumer laws, operating to the grave and 
irreparable prejudice of a consumer or a rights holder, shall have the power to issue an 
order directing that a website, webpage, online application, social media account, or 
other similar platform, be taken down, made inaccessible in the Philippines, or that no 
entity shall process any payment to any of those entities, or otherwise be rendered 
commercially inoperative, in order to abate any further violations. 
 
The said provisional take down order shall be directed against the owner or 
operator of the website, webpage, online application, social media account, as well as 
duly registered internet service provider, as well as payment gateways or channels. 
Copies of the order shall likewise be served on other government agencies whose 
cooperation would be required for the enforcement of the same. 
 
The order shall remain in effect for a maximum period of thirty (30) days unless 
otherwise extended or made permanent by a judicial order or decision. 
 
SEC. 13. Cease and Desist Order. – The Secretary of Trade and Industry, upon due 
notice and hearing, shall have the power to issue an order directing a website, webpage, 
online application, social media account, or other similar platform operating to the 
grave and irreparable prejudice of a consumer or a rights holder, to desist from 
marketing or offering goods or services that are accessible in the Philippines, and 
directing that no payments shall be made to any entity which is marketing or offering 
such goods or services in violation of this Act, the Consumer Act of the Philippines, or 
any other related trade or consumer laws. The cease and desist order shall remain in 
effect for a maximum of thirty (30) days unless otherwise extended or made permanent 
by a judicial order or decision. 
 
SEC. 14. Referral of Complaints. – The Bureau shall refer any complaint it receives 
involving violation of other laws committed in the course of eCommerce activities to 
the appropriate regulatory authority for action. If the complaint or violation pertains to 
the violation of the provisions of Republic Act No. 10175, otherwise known as the 
"Cybercrime Prevention Act of 2012", the matter shall be referred to the Department of 
Justice (DOJ) for appropriate investigation. In cases where appropriate, the DTI may 
itself initiates the formal complaint with the appropriate regulatory authority or the 
DOJ. The Bureau shall track any such complaint or referral made to other authorities 


 
and coordinate with them to ensure that the said matters are duly resolved within a 
reasonable period. 
 
SEC. 15. Qualifications to Engage in eCommerce. – The following are presumed 
legally authorized to engage in eCommerce in the Philippines in the ordinary course of 
their trade or business: 
 
(a) 
An individual who is duly licensed to do business as a single-proprietor 
with the DTI; 
 
(b) 
A juridical entity that is duly registered with the Securities and Exchange 
Commission (SEC), whether as a corporation, a one-person corporation, or 
as a partnership;  
 
(c) 
A cooperative that is duly licensed by the Cooperative Development 
Authority (CDA); 
 
(d) 
A foreign corporation that is duly licensed by the SEC to transact business 
in the Philippines; and 
 
(e) 
A non-resident foreign individual or juridical entity who has complied with 
Section 5 of this Act. A resident of the Philippines who engages, abets, or 
aids in unauthorized eCommerce activities in the ordinary course of trade or 
business shall be subject to any appropriate penalty as may be provided by 
law and shall in the same manner as the party engaged in such unauthorized 
eCommerce activities. 
 
A person who is authorized to engage in eCommerce in the Philippines and who 
facilitates the sale of a digital product or service by one who is not so authorized is 
deemed primarily liable for any obligation, damage, or fine, that may arise from the 
transaction or from the digital product. 
 
A non-resident of the Philippines who engages in eCommerce by purposefully 
availing of the Philippine market may not evade legal liability in the Philippines by 
virtue of non- residency or non-registration and shall be subject to the same obligations 
and liabilities arising from any transaction as those who are authorized to engage in 
eCommerce in the Philippines. 
 
SEC. 16. Business Registration. – 
 
(a)  To encourage the formation of business enterprises, the growth and 
integrated development of the eCommerce market, and protection of online 
consumers, all individuals engaged in eCommerce shall register as a 
business either as a sole proprietor, one-person corporation, partnership, 
corporation, or cooperatives. 


 
 
(b)  Consistent with Republic Act No. 11032, otherwise known as the "Ease of 
Doing Business and Efficient Government Service Delivery Act of 2018," 
all national government agencies and local government units (LGUs) shall 
make available online registration of business permits and licenses 
particularly for those engaged in eCommerce. 
 
(c)  The SEC, LGUs, and the CDA shall submit to the Bureau an annual list of 
registered enterprises for monitoring and for purposes of maintaining a 
database of online merchants and eCommerce platform operators. 
 
CHAPTER 4 
CONSUMER RIGHTS AND 
OBLIGATIONS INVOLVING 
INTERNET TRANSACTIONS 
 
SEC. 17. Code of Conduct. – To build trust in internet transactions and to protect and 
uphold the interest of consumers at all times, all businesses engaged in eCommerce are 
expected to act responsibly, consistent with the following principles: 
 
(a) Consumers shall be treated with honesty, integrity, and fairness at all times; 
 
(b) The rights of consumers shall be applied equally; 
 
(c) Business entities shall refrain from engaging in illegal, fraudulent, unethical, 
or unfair business practices that harm consumers and shall comply with 
applicable laws and regulations, especially the protection of intellectual 
property rights; 
 
(d) Accurate information about goods and services marketed and sold online to 
Philippine consumers shall be given and made available to consumers; 
 
(e) Goods and services sold online must conform to Philippine regulatory 
standards; 
 
(f) The safety of goods and services marketed or sold online must not be 
compromised and products that have been recalled in the offline retail market 
must not be marketed or sold online; 
 
(g) Goods and services must be easily accessible, accurately described, and 
promoted through fair advertising and marketing practices; 
 
(h) Consumers must be given the correct and complete information about costs 
through a sales invoice or an official receipt detailing the particular costs of 
the goods or service purchased, including shipping or delivery charges. 
Hidden charges or additional costs such as customs duties or currency 
conversion charges must be avoided; 


 
 
(i) The tracking of deliveries must be provided as part of services of online 
merchants or eCommerce platform operators and goods purchased must be 
delivered within the promised time and described condition to the address 
provided by the consumer; 
 
(j) A cancellation option must be provided wherein consumers are given the 
opportunity to review their online purchases before finally confirming their 
purchase or withdrawing from a confirmed transaction in appropriate 
circumstances; 
 
(k) Consumer complaints must be dealt with through fair, easy, transparent and 
equitable mechanisms for consumer redress. If warranted, compensation, 
refund, repair, and replacement should be provided to the consumer; 
 
(l) Data privacy laws and regulations, including Republic Act No. 10173, 
otherwise known as the "Data Privacy Act of 2012," and other similar laws 
and regulations shall be strictly complied with; 
 
(m) The safety and security of online payments and sensitive data shall be 
safeguarded through the use of secure technology and protocols including 
those evidenced by visible trust certificates or any appropriate similar 
certification as may emerge in the future; 
 
(n) The transmission of unsolicited commercial email or bulk email, except those 
subject to the control and discretion of the consumer through readily 
accessible configurations that allow the consumer to choose whether they 
wish to receive or opt-out from commercial messages by email or electronic 
means, must be avoided; 
 
(o) The production of fake online reviews or spreading wrong information about 
competitors is improper and must be avoided; 
 
(p) Consumers must be educated about the risks of transacting through the 
internet and shall be provided competent and professional advice; and 
 
(q) Competing fairly with other businesses and adherence to competition 
principles and all applicable competition laws and regulations, including 
Republic Act No. 10667, otherwise known as the "Philippine Competition 
Act", shall ensure the robust development of eCommerce and the economy. 
 
Whenever appropriate, the DTI shall issue rules and regulations corresponding 
to international trends, developments and best practices that it may adopt and 
implement. 
 
SEC. 18. Obligations of eCommerce Platform Operators. – eCommerce platform 
operators shall have the following obligations: 


 
 
(a)  Ensure that any commercial communication shall: 
 
(1) Be clearly identifiable as a commercial communication; 
 
(2) Clearly identify the person on whose behalf the commercial 
communication is made; 
 
(3) Clearly identify any promotional offer including any discount, 
premium, or gift, and ensure that any condition which must be met to 
qualify for it is easily accessible, and presented clearly and 
unambiguously; and 
 
(4) Clearly identify any promotional competition or game and ensure that 
any condition for participation is easily accessible and presented clearly 
and unambiguously; 
 
(b)  Require all online merchants, prior to the commencement of online 
transactions to submit the following to eCommerce platform operators: 
 
(1) Name of the online merchant; 
 
(2) Registration documents of the online merchant from the appropriate 
LGU, the DTI or SEC, and the Bureau of Internal Revenue (BIR); 
 
(3) Geographic address at which the online merchant may be served 
summons or any other judicial processes in its name and behalf; 
 
(4) Contact details of the online merchant, such as a mobile or landline 
number, and a valid electronic mail address, which makes it possible to 
immediately and easily contact and communicate with the online 
merchant in a direct and effective manner; and 
 
(5) Details of any professional body or similar institution with which the 
online merchant is registered, in instances when the online merchant 
exercises a regulated profession; 
 
(c)  Maintain a file of all online merchants registered under their platform 
containing the information provided by online merchants in paragraph (b) 
of this Section; 
 
(d)  Publish at a conspicuous part on their website, webpage, social media 
account, or other similar platform, the following general information: 
 
(1) Name of the online merchant; 
 
(2) Registration documents of the online merchant from the appropriate 


 
LGU, the DTI or SEC, and the BIR; 
 
(3) Geographic address at which the online merchant may be served 
summons or any other judicial processes in its name and behalf; 
 
(4) Contact details of the online merchant, a mobile or landline number, or 
a valid electronic mail address, which makes it possible to immediately 
and easily contact and communicate with the online merchant and 
communicate in a direct and effective manner unless the eCommerce 
online platform establishes means to facilitate communication between 
online merchants and consumers; and 
 
(5) Details of any professional body or similar institution with which the 
online merchant is registered, in instances when the online merchant 
exercises a regulated profession; 
 
(e)  Submit to the Bureau a list of all online merchants registered under their 
platform. When an eCommerce platform operator discovers that an 
onboarded online merchant has not obtained registration documents from 
the relevant regulatory agency, it shall report such fact to the Bureau 
within fifteen (15) days from discovery thereof. 
 
(f)  
Cooperate with regulators, in accordance with existing laws and 
regulations, any investigation, or resolution of consumer complaints. 
 
SEC. 19. Internet Transactions Involving Consumers. – An online merchant of goods 
shall exercise the following responsibilities: 
 
(a)  Deliver or cause the delivery of goods to the consumer, ensuring that the 
following are complied with: 
 
(1) The goods are of the description, type, quantity, and quality, and 
possess the functionality, compatibility, interoperability and other features, 
as required by the sales contract. The online merchant must show a digital 
sample or model of the goods to the consumer and the goods possess the 
quality of and correspond to the description of the sample or model; 
possess the qualities and performance features, including in relation to 
functionality, compatibility, interoperability, accessibility, continuity, and 
security, normal for digital content or digital services of the same type and 
of which the consumer may reasonably expect; fit for any particular 
purpose for which the consumer requires them and which the consumer 
made known to the online merchant at the time of the conclusion of the 
contract, and which the online merchant has accepted; and possess the 
qualities and performance capabilities indicated in any pre-contractual 
statement which forms an integral part of the contract. 
 
(2) All goods shall: 


 
 
(i) Be delivered along with the accessories including packaging, 
installation instructions or other instruction as the consumer may 
expect to receive; and 
 
(ii) Possess qualities and performance capabilities which are normal in 
goods of the same type and which the consumer may expect given 
the nature of the goods and taking into account any public statement 
made by or on behalf of the online merchant or other persons in 
earlier links of the chain of transactions, including the producer, 
unless the online merchant shows that: the online merchant was not, 
and could not reasonably have been aware of the statement in 
question; by the time of conclusion of the contract, the statement 
had been corrected; or the decision to buy the goods could not have 
been influenced by the statement. 
 
(b) Be liable for any lack of conformity with the contract which exists at the time 
when: 
 
(1) The consumer or a person acting on behalf of the consumer has acquired 
the physical possession of the goods, or when the goods are handed over 
to the carrier chosen by the consumer, and that carrier was not proffered 
by the online merchant or where the online merchant proposes no means 
of carriage; 
 
(2) The goods have been installed by the online merchant or under the online 
merchant's responsibility. The time at which the installation has been 
completed shall be considered the time when the consumer acquires 
physical possession of the goods; 
 
(3) The goods have been installed by the consumer in accordance with the 
online merchant's installation instructions. The expiration of a reasonable 
period for installation, which shall not be more than thirty (30) days, 
shall be considered the time when the consumer acquires the physical 
possession of the goods. 
 
(4) The goods are incorrectly installed. Any lack of conformity resulting 
from the correct installation is regarded as lack of conformity with the 
contract of the goods if: 
 
(i) The goods were installed by the online merchant or under the online 
merchant's responsibility; and 
 
(ii) The goods, intended to be installed by the consumer, were installed 
by the consumer and the correct installation was due to a 
shortcoming in the installation instructions. 


 
 
(c) Where the contract provides that the digital content or digital service is to be 
supplied or made accessible to the consumer over a period of time, the online 
merchant may modify the digital content or digital service beyond what is 
necessary to maintain the digital content or digital service in conformity with 
the contract, 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 consumer is informed by a clear and comprehensible manner of the 
modification. 
 
(d) Where the online merchant operates its own website, webpage, social media 
account, or any other similar platform, it shall publish on its homepage the 
following: 
 
(1) Name of the online merchant; 
 
(2) Registration documents of the online the appropriate LGU, the DTI or 
SEC, the BIR, and other appropriate regulatory authorities; 
 
(3) Geographic address at which the online merchant may be served 
summons or any other judicial processes in its name and behalf; 
 
(4) Contact details of the online merchant, a mobile or landline number, and 
a valid electronic mail address, which makes it possible to immediately 
and easily contact and communicate with the online merchant and 
communicate in a direct and effective manner; and 
 
(5) Details of any professional body or similar institution with which the 
online merchant is registered, in instances when the online merchant 
exercises a regulated profession. 
 
Any agreement is valid only if, at the time of the conclusion of the contract, the 
consumer has knowledge of the specific condition of the goods and the consumer has 
expressly accepted this specific condition when concluding the contract. 
 
SEC. 20. Right to Redress by Online Merchants. – Where the online merchant is 
liable to the consumer because of a lack of conformity with the contract resulting from 
an act or omission by a person in earlier links of the chain of transactions, the online 
merchant is entitled to pursue remedies against the person or persons liable in the chain 
of transactions. The person against whom the online merchant may pursue remedies 
and the relevant actions and conditions to exercise must be in accordance with the 
following: 
(a)  
Repairs must be completed and replacements delivered within a 


 
reasonable time and without any significant inconvenience to the 
consumer, taking into account the nature of the goods and the purpose 
for which the consumer acquired the goods; 
 
(b)  
A proportionate reduction of the price or the termination of the contract, 
including restitution of the price, in the following instances 
 
(1) A repair or replacement is impossible or unlawful; 
 
(2) The online merchant has not completed repair or replacement within a 
reasonable time; 
 
(3) A repair or replacement may cause significant inconvenience to the 
consumer; or 
 
(4) The online merchant has declared, or it is equally clear from the 
circumstances that the online merchant may not deliver the goods in 
conformity with the contract within a reasonable time; 
 
(c)  
The consumer is entitled to withhold the payment of any outstanding part 
of the price, until the online merchant has brought the goods into 
conformity with the contract; 
 
(d)  
The consumer is not entitled to a remedy to the extent that the consumer 
has contributed to the lack of conformity with the contract or its effects; 
 
(e)  
Where the online merchant remedies the lack of conformity with the 
contract by replacement, the online merchant may take back the replaced 
goods at the online merchant's expense unless the parties have agreed 
otherwise after the lack of conformity with the contract has been brought 
to the online merchant's attention by the consumer; 
 
(f)  
Where the consumer had installed the goods in a manner consistent with 
their nature and purpose, before the lack of conformity with the contract 
became apparent, the cost for the removal of the non-conforming goods 
and the installation of replacement goods, and all associated costs shall 
be for the account of the online merchant; 
 
(g) 
In case of goods that do not conform to the contract, the consumer is not 
liable to pay for using the non-conforming goods prior to its 
replacement; 
 
 
(h) 
The consumer may choose between repair and replacement unless the 
option chosen is impossible, unlawful or, imposes costs upon the online 


 
merchant that is disproportionate, taking into account all circumstances, 
including: 
 
(1) 
The value of the goods, if the goods conformed to the contract; 
 
(2) 
The significance of the lack of conformity with the contract; and 
 
(3) 
 Whether the alternative remedy may be completed without 
significant inconvenience to the consumer. 
 
The reduction of price should be proportional to the decrease in the value of the 
goods which were received by the consumer compared to the value of the 
goods if it were in conformity with the contract. 
 
SEC. 21. Obligations of Ride Hailing Service Providers. – Ride hailing service 
providers shall require its consumers to register by showing valid proof of identity, 
email address or cellular phone number. Ride hailing service providers shall make the 
identity of its providers and support staff available to the rider at all times. 
 
SEC. 22. Obligations of Consumers of Ride Hailing Services. – It shall be unlawful 
for consumers of ride hailing services to: 
 
(a)  
Cancel confirmed orders for the delivery of food or grocery items when 
the said items have already been paid by or is already in the possession 
of the Ride Hailing Service Partner or is otherwise in transit to the 
consumer unless: 
 
(1) 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; 
 
(2) The consumer remits the reimbursement and payment to the ride 
hailing service partner as a pre-condition for the cancellation of the 
order; or 
 
(3) The delivery of ordered food or grocery items 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 ride hailing service partner. 
 
(b)  
Unreasonably shame, demean, embarrass, or humiliate ride hailing 
service partners. The consumer may invoke as a defense of good faith, a 
well-founded belief that the ride hailing service partner had committed a 
crime or caused civil injury towards the consumer. 
 
SEC. 23. Right to Terminate the Contract. – If the goods 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 delivered under the contract, the consumer may terminate the contract only in 
relation to the non- conforming good and any other goods which was acquired as an 
accessory to it. 
 
Where the consumer terminates a contract as a whole or in relation to some of 
the goods delivered: 
 
(a)  The online merchant shall reimburse to the consumer the price paid 
without undue delay and in any event not later than fourteen (14) days 
from receipt of the notice; 
 
(b)  Upon receipt of the reimbursement from the online merchant, the 
consumer shall return, at the online merchant's expense, the goods without 
undue delay and in any event not later than fourteen (14) days from the 
receipt of the reimbursement; 
 
(c)  Where the goods cannot be returned because of destruction or loss caused 
by the negligence of the consumer, the consumer shall pay to the online 
merchant the monetary value which the non-conforming goods would 
have had at the date when the return was to be made if they had 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 with the 
goods with the contract, within fourteen (14) days from receipt of 
reimbursement; and 
 
(d)  The consumer shall pay for a decrease in the value of the goods 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. 
 
SEC. 24. Damages. –   The online merchant is liable for damages to the consumer due 
to the lack of conformity with the contract of the goods. The consumer may claim 
damages within two (2) years from the relevant time of establishing conformity. 
 
No damages may be recovered by virtue of this Act after the lapse of four (4) 
years from the time the conformity has been established. 
 
SEC. 25. Online Dispute Resolution. – The DTI shall develop an online dispute 
resolution (ODR) platform which is a single point of entry for consumers, online 
merchants, and eCommerce platform operators seeking out-of-court resolution of 
disputes. Where an eCommerce platform operator does not have an internal dispute 
resolution mechanism, all complaints through an ODR against an eCommerce platform 
operator shall be accompanied by proof that internal dispute resolutions were 
exhausted. 
 
(a) 
The ODR shall be an interactive website which may be accessed 
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 and must adopt the twin 
principles of “privacy by design” and “design for all”, where the privacy 
of its users is respected, and the ODR platform is accessible and usable by 
all users. 
 
(b) 
The DTI shall establish a network of ODR contact points from, among 
others, the agencies involved in consumer complaints specified in 
Republic Act No. 7394, otherwise known as the “Consumer Act of the 
Philippines,” which includes the Fair Trade Enforcement Bureau (FTEB) 
of the DTI, the Department of Agriculture (DA), the Department of 
Tourism (DOT), and the Department of Health (DOH). The NPC and the 
Intellectual Property Office of the Philippines (IPOPHIL) shall also form 
part of the ODR network. 
 
(c) 
Each agency shall designate one ODR contact point and communicate its 
name and contact details to the DTI. The head of agency shall confer 
responsibility to the ODR contact points in ensuring that timely and 
competent support is provided to the resolution of disputes relating to 
complaints submitted through the ODR platform. 
 
(d) 
The ODR platform shall have the following functions: 
 
(1) Provide an electronic form by means of which alternative dispute 
resolution (ADR) entities shall transmit the information; 
 
(2) Provide a feedback system which allows the parties to express their 
views on the functioning of the ODR platform and on the ADR entity 
which handles their dispute; and 
 
(3) Make publicly available general information on ADR as a means of 
out-of-court dispute resolution and information on ADR entities which 
are competent to deal with disputes. 
 
(e) 
The DTI shall ensure that the information in the website is accurate, up to 
date and provided in a clear, understandable and accessible way. 
 
(f) 
Government and private sector entities which provide ADR services 
which are competent to deal with disputes shall be registered 
electronically with the ODR platform. 
 
(g) 
Digital platforms and online retailers shall provide on their websites an 
electronic link to the DTI ODR platform on their homepage. That link 
shall be easily accessible to consumers. 
 
(h) 
The DTI, in consultation with other concerned agencies, shall issue the 
implementing rules and regulations on the development, management, 


 
operations, and maintenance of the ODR platform. 
 
SEC. 26. Limited Liability of eCommerce Platform Operators. – 
 
(a) 
eCommerce platform operators shall be solidarily liable with an online 
merchant to the consumer only to the extent of civil damages suffered by 
the consumer as a direct result of the transaction, without prejudice to 
liabilities that may incur under the next succeeding paragraph or the 
provisions of other existing laws. 
 
(b) 
eCommerce platform operators shall, for civil or administrative indemnity, 
be held liable with an online merchant only under the following instances: 
 
(1) If the eCommerce platform operator fails to exercise ordinary diligence 
in complying with its obligations under Section 18 hereof, resulting to 
loss or damage to the consumer; 
 
(2) If the identity of the online merchant and the eCommerce platform 
operator are the same; 
 
(3) If the eCommerce platform operator fails, after notice, to act 
expeditiously to remove, or disable access to goods or services 
appearing on their platform that they know or should have known to be 
not compliant with law, or otherwise infringes on intellectual property 
rights; 
 
(4) If the eCommerce platform operator permits an online merchant, not 
otherwise authorized to do business in the Philippines, to offer its 
goods and services for sale, resulting in loss or damage to the 
consumer. 
 
(c) 
eCommerce platform operators shall not be held liable under the following 
instances: 
 
(1) The eCommerce platform operator relied on the accuracy, authenticity, 
and veracity of an online merchant's representations, warranties or 
submitted registration documents, even if such information or 
documents are later proved to be inaccurate, false or untrue: Provided, 
That, the eCommerce platform operators are able to show evidence of 
good faith and that reasonable efforts were exerted to ascertain the 
accuracy and reliability of the documents or information submitted by 
such online merchant. 
 
(2) The eCommerce platform operator relied on the representations, 
warranties or submissions of an online merchant stating that it is duly 
organized, valid and existing under the laws of the Philippines or under 
the laws of its respective jurisdictions to engage in eCommerce, or has 


 
obtained all necessary licenses, permits or approvals required for the 
sale of goods and services, or that said goods and services conform to 
applicable laws, rules and regulations. 
 
SEC. 27. Digital Payments. – ECommerce platform operators and online merchants 
shall issue the appropriate paper or electronic invoices or receipts for all sales in 
accordance with relevant internal revenue laws and regulations. An electronic invoice 
or receipt shall have the same legal effect as a physical invoice or receipt. 
 
The DTI, through the Bureau, shall, in coordination with the Bangko Sentral ng 
Pilipinas (BSP), the BIR, the Bureau of Customs (BOC), the DOJ, the Philippine 
National Police, the DICT, and the NTC, issue rules and regulations to modernize and 
streamline the regulatory framework and encourage the adoption of electronic payment 
systems by the citizenry. The DTI shall also develop guidelines to protect merchants 
and consumers covering the various digital payment solutions. 
 
SEC. 28. Enforcement of Rights and Remedies. – Without prejudice to existing 
remedies provided under other laws, the enforcement of the rights and remedies 
established under this Chapter shall be through the following means: 
 
(a) If involving complaints by a consumer where no damages are sought, the 
complaint shall be treated as a consumer complaint with the DTI pursuant to Title V, 
Chapter III of Republic Act No. 7394, otherwise known as the "Consumer Act of the 
Philippines"; 
 
(b) If involving a claim for damages, the injured party shall seek recovery by 
filing a civil action with the appropriate trial court. 
 
CHAPTER 5 
ELECTRONIC COMMERCE PHILIPPINE TRUSTMARK 
 
SEC. 29. ECommerce Philippine Trustmark. – To provide assurance of safety and 
security in internet transactions, the DTI shall lead the development of an eCommerce 
Philippine Trustmark hereinafter referred to as the, "Trustmark", which may be 
established and operated by an industry-led private sector governance body. The DTI 
shall periodically assess the effectiveness of the industry-led Trustmark in promoting 
to the public reliable and trustworthy eCommerce services, and         may   opt to 
assume operational   control   over the Trust mark if it determines that the industry-led 
private sector effort cannot sufficiently achieve the goals of the Trust mark. 
 
CHAPTER 5 
FINAL PROVISIONS 
 
SEC. 30. Penalties. – 
(a) 
Online merchants who fail to register either as a sole proprietor, one- 
person corporation, partnership, corporation, or cooperative, shall be 


 
punished with a fine equivalent to one hundred percent (100%) of the 
amount of the digital goods offered or sold based on the market price as 
determined by the Bureau, including confiscation of the goods as 
advertised; 
 
(b) 
eCommerce platform operators and online merchants found guilty of 
violating Section 18, or Section 19 (d) of this Act shall be punished with a 
fine not less than Five hundred thousand pesos (PhP500,000.00) but not 
more than Five million pesos (PhP 5,000,000.00) or the revocation of their 
licenses, or both, at the discretion of the courts. 
 
(c) 
Ride hailing service providers found guilty of violating Section 21 of this 
Act Shall be punished with a fine of up to Five hundred thousand pesos 
(PhP 500,000.00) or the revocation of their licenses, or both, at the 
discretion of the courts. 
 
(d) 
Consumers found guilty of violating Section 22 (a) of this Act shall be 
punished with a fine of up to Fifty thousand pesos (PhP 50,000.00) plus 
one hundred percent (100%) of the amount advanced by the ride hailing 
service partner, or both, at the discretion of the courts. 
 
(e) 
Consumers found guilty of violating Section 22 (b) and Section 23 (b)of 
this Act shall be punished with a fine of up to Fifty thousand pesos (PhP 
50,000.00), at the discretion of the courts. 
 
The application of these penalties shall be without prejudice to the liability 
of the offending party under other laws or regulations. 
 
SEC. 31. Oversight Committee. – There is hereby created a Congressional Oversight 
Committee, hereinafter referred to as the Internet Transactions Act Congressional 
Oversight Committee, to be composed of five (5) members from the Senate, which 
shall include the Chairpersons of the Senate Committees on Trade, Commerce and 
Entrepreneurship, Science and Technology, and Finance, and five (5) members from 
the House of Representatives, which shall include the Chairpersons of the House of 
Representatives Committees on Trade and Industry, ICT, and Appropriations. The 
Internet Transactions Act Congressional Oversight Committee shall be jointly chaired 
by the Chairpersons of the Senate Committee on Trade and Commerce and the House 
of Representatives Committee on Trade and Industry. It shall meet at least every 
quarter of the first two years and every semester for the third year after the approval 
of this Act to review the implementation of this Act, evaluate the Bureau on its 
functions as the lead agency, determine any inherent weaknesses in the law, and 
recommend the necessary remedial legislation or executive measures: Provided, That 
the Internet Transactions Act Congressional Oversight Committee shall cease to exist 
after five (5) years upon the effectivity of this Act. 21 The Secretariat of the 


 
Internet Transactions Act Congressional Oversight Committee shall be drawn from 
the existing personnel of the Senate and House of Representatives Committees 
comprising the Internet Transactions Act Congressional Oversight Committee. 
 
SEC. 32. Implementing Rules and Regulations. – The Secretary of Trade and Industry 
shall, in consultation with the DICT, the BSP, the DOT, the Land Transportation 
Franchising and Regulatory Board (LTFRB), the Optical Media Board (OMB), the 
IPOPHIL, and other relevant government agencies and stakeholders, develop and issue 
the implementing rules and regulations of this Act. 
SEC. 33. Transitory Provisions. – To ensure the continued implementation of 
programs to promote eCommerce, the current eCommerce Division shall continue to 
exercise its functions until such time that the organizational structure and personnel 
of the Bureau have been determined and approved. 
 
All affected officers and personnel of the eCommerce Division shall be 
absorbed by the Bureau without demotion in rank or diminution of salaries, benefits 
and other privileges. 
 
SEC. 34. Appropriations. – The amount necessary to carry out the provisions of this 
Act shall be included in the annual General Appropriations Act. 
 
SEC. 35. Separability Clause. – If any provision or part of this Act is declared 
invalid or unconstitutional, such declaration shall not affect the validity of the 
remaining provisions of this Act. 
 
SEC. 36. Repealing Clause. – All laws, rules, and regulations, presidential decrees, 
letters of instruction and other presidential issuances which are incompatible or 
inconsistent with the provisions of this Act are hereby repealed, amended, or modified 
accordingly. 
 
SEC. 37. Effectivity. – This Act shall take effect fifteen (15) days after its publication 
in the Official Gazette or in at least one (1) newspaper of general circulation. It shall 
also 
be 
published 
online, 
through 
the 
Official 
Gazette 
Online 
(www.officialgazette.gov.ph), and on the website of the DTI (www.dti.gov.ph). 
 
Approved,