Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _____ 
___________________________________________________________________________________ 
Introduced by Representative Michael L. Romero 
____________________________________________________________________________________ 
EXPLANATORY NOTE 
The Republic of the Philippines, is cognizant of the very vital role of 
information and communications technology (ICT) in nation-building; the 
need to create an information-friendly environment which supports and 
ensures the availability, diversity and affordability of ICT products and 
services; the primary responsibility of the private sector in contributing 
investments and services in telecommunications and information technology; 
the need to develop, with appropriate training programs and institutional 
policy changes, human resources for the information technology age, a labor 
force skilled in the use of ICT and a population capable of operating and 
utilizing electronic appliances and computers; its obligation to facilitate the 
transfer and promotion of technology; to ensure network security, 
connectivity and neutrality of technology for the national benefit; and the need 
to marshal, organize and deploy national information infrastructures, 
comprising in both telecommunications network and strategic information 
services, including their interconnection to the global information networks, 
with the necessary and appropriate legal, financial, diplomatic and technical 
framework, systems and facilities. 
This House Bill seeks to facilitate domestic and international dealings, 
transactions, arrangements, agreements, contracts and exchanges and 
storage of information through the utilization of electronic, optical, and 
similar medium, mode, instrumentality, and technology to recognize the 
authenticity and reliability of electronic documents related to such activities 
and to promote the universal use of electronic transaction in the government 
September 16, 2022
4:48 pm
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and general public. : To foster the implementation of Republic Act. No. 8792 
or the Electronic E-commerce Act of 2000. 
 
 
Thus, the early passage of this bill is earnestly requested. 
 
 
MICHAEL L. ROMERO 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO _____ 
______________________________________________________________________________ 
Introduced by Representative Michael L. 
Romero
___________________________________________________ 
AN ACT 
PROVIDING PROTECTION TO CONSUMERS AND 
MERCHANTS ENGAGED IN INTERNET TRANSACTIONS, 
CREATING THE ELECTRONIC COMMERCE BUREAU, 
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and the House of Representatives of 
the Philippines in Congress assembled: 
CHAPTER I 
GENERAL PROVISIONS 
SECTION 1. Short Title. — This Act shall be known as the "Internet 
Transactions Act of 2022”. 
SEC. 2. Declaration of Policy. It is the policy of the State to promote and 
maintain a robust electronic commerce (e-Commerce) 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 
4917


 
 
reliable Commerce 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. 
(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 commerce; 
 
(e) Consumer-to-consumer transactions (QCs) 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 in 
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 Commerce refers to the production, distribution, 
marketing, sale, or delivery of goods and services by electronic means;  
(j) commerce 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 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 and service Prouder 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 Commerce 
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 hype 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 commerce;  
(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 Commerce 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 Commerce 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 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 Commerce 
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 services. 
 
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 Commerce. 
 
SEC. 5. Extra-territorial Application. — A person engaging in e-Commerce 
who purposefully avails 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 Commerce Bureau created under Section 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 Commerce 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 Commerce 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 II 
ECOMMERCE BUREAU 
 
SEC. 7. Creation of the e-Commerce Bureau. — To ensure the attainment of 
the objectives of this Act and promote the growth of Commerce, there is hereby 
created a Commerce 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 Commerce 
stakeholders of the provisions of this Act; 
(b) Build trust between consumers and sellers by requiring Commerce 
platform operators, online merchants, or any other entity who engages in 
Commerce to register their business with the Bureau; 
 
(c) Formulate policies, plans and programs to ensure the robust and dynamic 
development of Commerce; 
 
(d) Identify regulatory gaps affecting the Commerce 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 Commerce;  
(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 Commerce 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 e-
Commerce roadmap; 
(k) 
Collect, compile, analyze, abstract, and publish e-Commerce data for 
policy formulation and program development;  
(l) Prepare and conduct periodic studies on Commerce; 
(m) Collaborate with departments of the National Government including local 
government units and government-owned or controlled corporation’s in 
implementing programs to promote Commerce, including information, 
education, and campaign, as well as in ensuring a policy regime that is 
proactive;  and 
(n) 
Ensure that those who engage in Commerce 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 e-Commerce 
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 Commerce. 
 
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 patterns 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 testifìcandnm 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 testificandum 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,  
 
12 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 e-Commerce, the Bureau shall have the 
authority to promulgate rules and regulations covering areas or activities 
concerning e-Commerce 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 
Commerce 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 8 involving violation of other laws committed in the course of 
Commerce 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 initiate 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 e-Commerce. — The following are 
presumed legally authorized to engage in commerce 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 IDS' the Cooperative Development 
Authority (CIDA); 
(d) 
A foreign corporation that is duly licensed by the SEC to transact 
business in the Philippines; and 
A non-resident foreign individual or juridical entity who has complied with 
Section of this Act. 
A resident of the Philippines who engages, abets, or aids in unauthorized e-
Commerce 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 Commerce activities. 
 
A person who is authorized to engage in e-Commerce 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 commerce 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 Commerce in the Philippines. 
 
SEC. 16. Business Registration.   
a) To encourage the formation of business enterprises, the growth and 
integrated development of the Commerce market, and protection of 
online consumers, all individuals engaged in commerce 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 
c) government agencies and local government units (LGUs) shall make 
available online registration of business permits and licenses 
particularly for those engaged in commerce.  
d) The SEC, LGUs, and the CIDA shall submit to the Bureau an annual 
list of 32 registered enterprises for monitoring and for purposes of 


 
 
maintaining a database of online merchants and commerce 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 MMES, all businesses 
engaged in e-Commerce 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 good 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 Commerce platform operators and goods purchased must be 
delivered within the promised time and in 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 cellular 
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 
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 Commerce 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 e-Commerce Platform Operators. — Commerce 
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 (Commerce platform operators: 
 
 
(l)  
Name of  
(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 Commerce 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. 
Submit to the Bureau a list of all online merchants registered under their 
platform. When an e-Commerce platform operator discovers that an on-
boarded 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, in 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 
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: 
Be delivered along with the accessories including packaging, installation 
Instructions or other instruction as the consumer may expect to receive; and 
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 carnage; 
 
(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 in 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 omissions 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 pav for using the non-conforming goods prior to Its replacement;  
(h) The consumer may choose between repair and replacement unless the 
option 3 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 proportionate 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 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 8 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 Commerce platform operators seeking out-of-court resolution 
of disputes.  
Where a commerce platform operator does not have an internal dispute 
resolution mechanism, all complaints through an ODR against a Commerce 
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 are 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 (DC-YD, and the 
Department of Health (DOI-I). 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 on 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 8 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) Commerce platform operators shall be solitarily 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 transactions, without prejudice to liabilities 
that may incur under the next succeeding paragraph or the provisions of 
other existing laws. 
 (b) Commerce 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 commerce platform 
operator are the same; 
(3) 
If the Commerce platform operator fails, after notice, to act expeditiously 
to remove, or disable access to goods or services appearing on their platform 
that they 16 know or should have known the provisions 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 to loss or damage to the consumer. 
 
 (c) eCommerce platform operators shall not be held liable under the following 
instances: 
(1) The Commerce 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 Commerce 
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 operators 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 Commerce, or has obtained all 
necessary licenses, permits of 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 Sentra 
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 
complaints shall be treated as a consumer complaint With the DTI pursuant 
to Title V, Chapter Ill 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 V 
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 1 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 Commerce services and may opt to assume operational 
control over the Trustmark if it determines that the industry-led private sector 
effort cannot sufficiently achieve the goals of the Trustmark. 
 


 
 
CHAPTER VI 
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) commerce 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 (Php5,000,000.00) 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 (Php50,000.00) plus one 
hundred percent (100%) of the amount advanced by the ride hailing service 
partner, or both, at the discretion of the courts. 
Consumers found guilty of violating Section 22 (b) and Section 23 (b) of this 
Act 2 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. 
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 BSI), 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 Commerce, the current Commerce Division shall 
continue to exercise its function until such time that the organizational 


 
 
structure and personnel of the Bureau have been determined and approved, 
all affected officers and personnel of the Commerce 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.dtl.gov.ph). 
Approved,