Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUS S. TAMBUNTING 
AN ACT 
PROTECTING CONSUMERS AND MERCHANTS ENGAGED IN INTERNET 
TRANSACTIONS, CREATING FOR THIS PURPOSE THE E-COMMERCE BUREAU, 
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES 
EXPLANATORY NOTE 
One of the priority bills of President Ferdinand R. Marcos, Jr. in his 2022 State of the Nation 
Address is the Internet Transactions Act of 2022.  
This bill aims to establish 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 protected, and product standards and safety are 
observed. 
On behalf of the people of Parañaque City’s Second District, and for the common good of the 
Filipino people, the approval of the said measure is earnestly sought. 
REP. GUS S. TAMBUNTING 
2nd District, Parañaque City 
August 31, 2022
8:54 am
4265


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUS S. TAMBUNTING 
AN ACT 
PROTECTING CONSUMERS AND MERCHANTS ENGAGED IN INTERNET 
TRANSACTIONS, CREATING FOR THIS PURPOSE THE E-COMMERCE BUREAU, 
APPROPRIATING FUNDS THEREFORE, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled  
SECTION 1. Short Title. — This Act shall be known as the "Internet Transactions 
Act of 2022 
Sec. 2. Declaration of Policy. — It is the policy of the State to promote the growth of electronic 
commerce (e-commerce) in the country by building mutual trust between online sellers and 
consumers. The State recognizes the growth of the digital economy and the need to ensure that 
all goods and services transacted digitally be specifications, and believable, secure, and 
accessible to all consumers to increase the productivity and efficiency of businesses. Towards 
these ends, the State shall ensure sustainable and fair e-commerce business practices through 
transparent and appropriate information disclosure, the maintenance and protection of data 
privacy rights, and an emphasis on the paramount importance of product safety. Likewise, the 
State shall provide meaningful access to effective mechanisms for the resolution of any disputes 
involving e-commerce, including alternative dispute resolution methods. 
Sec. 3. Definition of Terms. — As used in this Act: 
(a)
Compatibility refers to the ability of the digital product to function with hardware or
software with which digital products of the same type are normally used, without the need for 
any conversion; 
(b) Consumer-to-consumer transactions refer to isolated transactions of an individual or
group of individuals with another individual or group of individuals, done for personal,
family, or household purposes, and not done in the ordinary course of business of any of
the parties to the transaction;
4265


 
 
(c) Goods refer to tangible products which are primarily for personal, family, household or 
agricultural purposes which include, but are not limited to, food, drugs, cosmetics, and 
devices; 
 
(d) 
Delivery Carrier refers to any natural or juridical person engaged in the business of 
providing personal delivery services of food, goods, documents, or any other item from one 
person to another for compensation; 
 
e) Devices refer to equipment or mechanism designed to serve a special purpose or perform a 
special function; 
 
(f) Digital Platforms refer to internet intermediaries or businesses such as, but are not limited 
to, e-marketplaces, online delivery enterprises, transportation booking, tourism booking, 
entertainment websites and services, music products and services, social media, advertising, 
education and learning products, health websites and applications, labor services, among 
others, that match, connect, or facilitate interactions and transactions by and  between any two 
or more parties to enable them to sell, exchange, share,  or transact in any convenient manner, 
goods, services, and digital products;   
 
(g) Digital/ Products refer to goods and services produced and supplied in digital form such a, 
but not limited to, video, audio, applications, digital games, and any other software that allows 
the consumer to create, process,  download, store, or access digital content, or allows the 
sharing of the same, or any such other interaction with digital content provided by other users 
of the service; E-commerce Philippine Trustmark refers to the mark approved by the E-
commerce Bureau signifying the legitimacy and verified status of an online merchant and 
provides for consumer protection in online or e-commerce transactions and, whenever 
applicable, accountability in case of consumer complaints; 
E-commerce 
or 
Online 
Transaction refers to the exchange or transfer of goods and services using the internet; E-
Marketplace refers to a digital platform such as, but not limited to, eBay, Amazon, Shopee, 
Lazada, Carousel', and Facebook Marketplace, among others, whose business is to connect 
online consumers and online merchants, facilitating the exchange of information regarding 
products or services for the purpose of entering into an e-commerce transaction such as the 
purchase of goods and services, tangible or intangible, and which may or may not provide 
information or services about payments and logistics; 
 
(k) E-Retailer refers to a natural or juridical person engaged in selling products or services, 
tangible, or intangible, directly to online consumers through his website or any other digital 
platform;  


 
 
l) Interoperability refers to the ability of the digital product to function with hardware or software 
different from those with which the digital product of the same type is normally used; 
 
(m) Online Consumer refers to a natural or juridical person who may be a purchaser, lessee, 
recipient, or a prospective purchaser, lessor, or recipient, of goods and digital products sold, 
exchanged, leased, or transacted over 
the internet; 
 
(n) Online Delivery Partner refers to a delivery carrier that performs delivery services through an 
online delivery service platform under contract with a digital platform or an E-marketplace; 
 
(o) Online Delivery Service refers to the delivery of food, parcels, or any other item, contracted 
through a digital platform which may be an application, website, webpage, social media account, 
or any similar means, operated by an online delivery service platform; 
 
(p) Online Delivery Service Platform refers to any natural or juridical person engaged in providing 
online delivery service for a fee through any digital 
platform; and, 
 
(q) 
Online Merchant refers to any natural or juridical person selling or manufacturing, or 
otherwise offers for sale or manufacture, any goods or digital products in the ordinary course of 
business, either through an e-marketplace, social media, website, application, or via any digital 
platform over the internet. 
 
Sec. 4. Scope and Coverage. — This Act shall apply to the sale or exchange of goods, services, 
or digital products in the course of trade or business whether between businesses, households, 
individuals, and other public or private organizations, conducted over the internet. Consumer-
to-consumer internet transactions shall not be covered under this Act. 
 
Sec. 5. E-commerce Bureau. — The E-commerce Division created through DTI Department 
Order No. 09-16 by Section 29 of Republic Act No. 8792 or the "Electronic Commerce Act of 
2000' is hereby abolished, and an E-commerce Bureau 1 under the Department of Trade and 
Industry (DTI) shall be created to perform the 2 following functions: 
 
(a) Implement, monitor, and ensure compliance with the provisions of this Act;  
 
(b) Mandate entities engaged in e-commerce to register with the Online 
Business Registry; 
 
(c) 
Formulate policies, plans, and programs to ensure a robust and dynamic 
development of e-commerce; 


 
 
(d) Identify regulatory gaps affecting the e-commerce sector that are not sufficiently 
addressed by this Act or by existing laws or regulations, and recommend appropriate 
executive or legislative measures that foster the growth of the sector; 
 
(e) Act as a virtual one-stop shop tasked to receive and address consumer complaints on 
unresolved internet transactions between parties, facilitate the speedy resolution of 
consumer complaints by the respective government agency having jurisdiction over the 
same, and track complaints referred to or initiated by it motu proprio to ensure the speedy 
and appropriate action by the agency to which such matters pertain or otherwise have 
been referred to; 
 
 
(f) Coordinate with, or petition whenever appropriate, any entity, government agency, or 
instrumentality to act on any matter related to e-commerce 
consumer complaints; 
 
(g) 
Monitor internet market behavior, consult with stakeholders and concerned 
agencies to better understand e-commerce transactions, and prepare and conduct periodic 
studies on the same; and 
 
(h) Collaborate with the various departments of the national government and 
the local government units (LGUs) in the implementation of projects and programs promoting 
e-commerce, including information and education, as well as in ensuring a proactive policy 
regime; 
 
Sec. 6. Composition of the Bureau. — The Bureau shall be headed by a Director who must 
have sufficient knowledge and background in e-commerce and online transactions, and all the 
laws and processes related thereto. The Director shall be assisted by three (3) Assistant 
Directors: for policy and administration, enforcement, and operations The Director and all 
assistant Directors shall be appointed by the President, upon the recommendation of the DTI 
Secretary, and must be career executive service officers with at least five (5) years of 
government service and relevant experience in e- commerce development. 
 
Sec 7. Online Business Registry (OBR). — Within a period of one (1) year from the effectivity 
of this Act, the Bureau shall, in coordination with the Department of Information and 
Communications Technology (DICT), establish, maintain, and manage an Online Business 
Registry (OBR) which shall provide consumers access to data and information of e-
marketplaces, e-retailers, online merchants, and other digital 


 
 
platforms engaged in the sale of goods, services, and digital products for purposes of verifying 
their existence, confirming their identity, and other such relevant or needed information. 
 
Sec. 8. Regulatory Jurisdiction of the DTI. — For purposes of this Act, the DTI shall exercise 
primary regulatory jurisdiction over e-marketplaces, e-retailers, online merchants, and other 
digital platforms that sell or allow the sale or exchange of goods, services, or digital products, 
and are purposely availing of the Philippine market. 
 
Sec. 9. Authority to Issue Take-Down Order. — Whenever the Bureau finds, by its initiative or 
upon petition of a consumer or other concerned party, that the online sale of goods, services, 
or digital products is violative of this Act, the "Consumer Act of the Philippines, or any other 
related laws, the DTI Secretary, to abate any further violations, shall have the power to: 
 
(a) Impose an order, as a form of penalty, directing that the violative online product listing, 
webpage, business page, application, social media post, profile, website, or when applicable, 
any platform of the online merchant or e-retailer related to the illegal product, be taken down, 
or the same be made inaccessible in the Philippines, whether temporarily or permanently; 
And 
 
(b) 
Issue an advisory that no entity shall process any payments made to any violating 
entity to ensure that the latter shall be rendered commercially inoperative. 
 
Provided that, the DTI Secretary may immediately issue a provisional take-down order to 
prevent grave and irreparable injury to the public when the following conditions are present: 
 
(a) When the DTI Secretary finds that a good, service, or digital product is 
imminently injurious, unsafe, or dangerous; or 
(b) When the seller under investigation has been previously penalized under 
this section.


 
 
Whenever the DTI Secretary orders the immediate take-down, recall, ban, or seizure of an 
illegal product from public online sale or distribution, the seller, distributor, manufacturer, or 
producer thereof shall be allowed to be heard within forty-eight (48) hours from the issuance of 
such order. The take-down order, whether imposed as a penalty or provisionally granted, shall 
be directed against the e-retailer, online merchant, or the owner or operator of the e-
marketplace or digital platform. Copies of the order shall likewise be served on entities whose 
cooperation would be required for its enforcement such as but not limited to the duly registered 
internet service provider involved, related payment gateways, and other government agencies. 
The DTI Secretary may revoke the takedown order after hearing the explanation submitted by 
the seller, distributor, manufacturer, or producer; in which case the order revoking the takedown 
order shall be served on the entities mentioned and in the same manner , stated in the 
preceding paragraphs. 
 
Sec. 10. Referral of Complaints. — The Bureau shall refer any complaint it receives involving 
a violation of other laws committed in the course of an online or e-commerce transaction to the 
appropriate regulatory authority for action. The Bureau shall track the complaints or referrals 
made to other authorities and coordinate with them to ensure that matters are duly resolved by 
Republic Act No. 11032, otherwise known as the "Ease of Doing Business and Efficient 
Government Service Delivery Act of 2018'.' 
 
Sec. 11. Obligations of E-Marketplaces and other Digital Platforms. — 
 
 (a) E-Marketplaces and e-commerce digital platforms shall ensure that their eCommerce 
transactions shall: 
(i) Be identifiable as an e-commerce transaction; 
(ii) Identify the person or persons on whose behalf the e-commerce 
The transaction is made; and 
(iii) Identify any promotional offers including discounts, premiums, gifts, 
and any promotional game or competition, and ensure that any condition to qualify for them is 
easily accessible, and clearly set  forth. 
(b)E-Marketplaces and e-commerce digital platforms shall require all online 
merchants to submit the following, before listing with their platforms: 
i. 
Name of the online merchant accompanied by at least two (2) valid government 
identification cards; 
ii. 
Geographic address where the online merchant is located; 
iii. 
Contact details of the online merchant which must include a mobile or landline number 
and a valid e-mail address; and 
iv. 
In instances when the online merchant exercises a regulated profession, the online 
merchant shall be required to submit details of membership in any professional body or 
similar relevant institution with which the online merchant is registered or otherwise is a 
member. 


 
7 
Except for the government identification cards mentioned under Section Il(b)(i), the information 
required under this paragraph shall be published or posted on the e-commerce platforms for 
transparency. 
E-Marketplaces and e-commerce digital platforms are mandated to maintain a list of all online 
merchants registered under their platform, which shall be regularly verified. This list shall be 
submitted to the Bureau and updated every six (6) months. 
 
(d) 
E-Marketplaces and e-commerce digital platforms shall not allow the sale of 
regulated goods such as, but not limited to, chemicals, food, and drugs without verifying the 
online merchant's compliance with regulatory permits and licenses, sale procedures and 
limitations, and other relevant conditions for the sale as may be imposed by any law or local 
government regulation. 
 
Sec. 12. Obligations of E-retailers and Online Merchants. — An e-retailer or online merchant of 
goods, services, or digital products, as defined under this Act, shall 
exercise the following responsibilities: 
 
(a) 
Ensure that the goods are received by the online consumer: 
In the same condition, type, quantity, and quality as described and stated and, in applicable 
circumstances, possess the functionality, compatibility, interoperability, and other features 
required by the sales contract, fit for the purpose for which it was intended by its nature; 
In the same condition, type, quantity, and quality of a sample, picture, or model of the goods 
shown by the e-retailer or online merchant upon request of the online consumer, or of additional 
descriptions or specifications provided by the e-retailer or online merchant upon inquiries made 
by the online consumer; and 
 
(iii) It must also be fit for the particular purpose for which the online consumer requires them, as 
communicated to the e-retailer or online merchant at the time of the perfection of the contract, 
and which the e-retailer or online merchant has accepted; 
(b) All the goods shall: 
i. 
Be delivered together with its accessories including all other packaging, installation 
inclusions, any user manual, or other instructions as advertised or as described, if 
applicable, with 
ii. 
relevant information stated in the packaging, printed or written in Filipino and/or English; 
and 
iii. 
Possess qualities and performance capabilities including functionality, compatibility, and 
interoperability that are standard and normal in goods of the same type which the 
consumer may expect given its nature and considering any public statement or 
testimonial made by or on behalf of the e-retailer, online merchant, or other persons in 
earlier links of the chain of transactions, including the producer, unless the e-retailer or 
online merchant shows that: 
 
 1. The e-retailer or online merchant was not, and could not have been, reasonably aware of the 
statement in question; 


 
 
2. 
By the time of conclusion of the contract, the statement 
had already been corrected; or 
3. The decision to buy the goods could not have been influenced by the statement. 
(c) 
Where the e-retailer or online merchant is a digital product provider, it shall 
ensure that the digital product has the qualities and performance features, about functionality, 
compatibility, interoperability, accessibility, continuity, and security, which are standard standard 
digital product of the same type as advertised or described. 
 
(d) 
Where the contract provides that the digital product is to be supplied or 
made accessible to the online consumer over some time, the e-retailer or online merchant may 
modify the digital product beyond what is necessary for its maintenance, if th following conditions 
are met: 
 
The contract allows, and provides a valid reason for, such a modification; 
Such a modification is made without additional cost to the consumer; and


 
 
(iii) The online consumer is informed in a clear and comprehensible manner of the modification. 
 Where the transaction involves a digital platform that offers a performance of a service, the e-
retailer or online merchant shall ensure the completion of the same by the contract and as 
advertised. 
(f) An e-retailer or an online merchant that operates its digital platform 
shall publish on its homepage the following: 
(i) Name of the e-retailer or online merchant; 
(ii) 
Geographic address where the e-retailer or online merchant is located; and 
(iii) 
Contact details of the e-retailer or online merchant which must include a mobile 
or landline number and a valid e-mail address to ensure direct and efficient 
communication with consumers. This shall be submitted to the Bureau and must be 
accompanied by at least two (2) government identification cards as valid proof of identity. 
 
(g) Where the e-retailer or online merchant is an online delivery service platform, it shall require 
its consumers to register by showing valid proof of identity, and an e-mail address or mobile 
phone number. 
E-retailers or online merchants shall issue paper or electronic invoices or receipts for all sales. 
An electronic invoice or receipt shall have the same 
legal effect as a paper invoice or receipt. 
Any agreement between the e-retailer or online merchant and the online consumer is valid only 
if, at the time of the conclusion of the contract, the online consumer has knowledge of the 
specific condition of the goods, services, or digital products and has 
expressly accepted such conditions. 
 
Sec. 13. Rights and Obligations of Online Consumers. — 
 
(a) When the online merchant is liable to the consumer because of a lack of conformity with the 
contract, the consumer may pursue any of the following  
remedies: 
 A repair or replacement of the goods or digital product must be completed within a reasonable 
time and without any significant inconvenience to the consumer, taking into account the nature 
and the purpose for which the consumer acquired such; 
A proportionate reduction of the price if the consumer chooses to keep the good or digital 
product despite the lack of conformity with the contract, or the termination of the contract with 
restitution of the price, in the following instances: 
When repair or replacement is impossible or unlawful; 
The online merchant has not completed repair or replacement within a reasonable time; 
When repair or replacement may cause significant 
 
inconvenience to the consumer; or 
 
1When the online merchant has declared, or it is equally 


 
 
 
2clear from the circumstances, that the online merchant 
 
0may not bring the goods or digital products in conformity 
 
1with the contract within a reasonable time; 
(iii) When applicable, the consumer is entitled to withhold the 
payment of any outstanding part of the purchase price until the 
online merchant has brought the goods or digital products in 
conformity with the contract; 
The consumer is not entitled to a remedy to the extent that the 
The consumer has contributed to any ambiguity or lack of 
conformity 
with the contract or its effects; 
(v) When the online merchant remedies the lack of conformity with 
the contract by replacement, the online merchant is entitled to 
the return of the replaced goods or digital products at the online 
merchant's expense, unless otherwise agreed upon by the 
parties; 
(vi)  When the consumer had installed the goods or digital products 
in a manner consistent with their nature and purpose, before the 
lack of conformity with the contract became apparent, and the costs 
for the removal of the non-conforming goods or digital products, 
the installation of the replacement and all associated costs shall 
be for the account of the online merchant; 
(vii) In case of goods or digital products that do not conform with the 
contract, the consumer is not liable to pay for the use of the non- 
al products before its replacement; 
(viii) The consumer may exercise the choice in the alternative between 
repair or replacement of the purchased good or digital product unless such choice is impossible 
in which case the consumer may choose to terminate the contract and return the item, and the 
online merchant shall refund the full amount paid by the 
consumer. 


 
 
(b) Consumers of online delivery service platforms may hold delivery carriers liable for damages 
if the latter fails to exercise due diligence and reasonable care over the goods transported by 
them. 
(c) To protect the rights of delivery carriers, it shall be unlawful for consumers to: 
Cancel confirmed orders for the delivery of food or grocery items 
when the said items have already been paid for by, or are already in the possession of the 
online delivery partner or delivery service, or are otherwise in transit to the consumer unless:   
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 16 to the online delivery partner as a 
pre-condition for the 
cancellation of the order; or 
3. The delivery of goods will be or was delayed for at least 19 one (1) hour from the expected 
time of arrival due to the fault or negligence of the online delivery partner or 
delivery 
service. 
Use the personal information of another person such as, but not 23 limited to, name, address, 
and contact number when registering 
in online delivery service platforms; 
(iii) Place an order under the name of another person, unless the 26 latter consented to the 
same, or placing an order using a fictitious 
name and/or address; or 
Unreasonably shame, demean, embarrass, or humiliate online 
delivery partners. 
 
Sec. 14. Right to Terminate the Contract. — If the goods or digital products delivered do not 
conform to the contract, the consumer may exercise the right to terminate the contract by giving 
notice to the online merchant. Where the lack of conformity relates to only some of the goods 
or digital products delivered under the contract, the consumer may terminate the contract only 
about the non-conforming goods or digital products and any such accessory acquired as an 
adjunct to the same. 


 
 
When the consumer terminates a contract as a whole or about some of the non-conforming 
goods or digital products delivered: 
 (a) The online merchant shall reimburse the consumer the price paid not later than fourteen 
(14) days from receipt of the notice and without undue delay whatsoever; 
 (b) Upon receipt of the reimbursement from the online merchant, the consumer shall return, at 
the online merchant's expense, the goods or digital products not later than fourteen (14) days 
from the receipt of the reimbursement and without undue delay whatsoever, provided that the 
online merchant may waive this requirement at any time; 
 (c) When the goods or digital products cannot be returned because of destruction or loss, the 
consumer shall pay the monetary value that the non-conforming goods or digital products would 
have had at the date when the return was to be made had they been kept by the consumer 
without destruction or loss until that date unless the destruction or loss has been caused by a 
lack of conformity of the goods or digital products with the contract; and 
(d) The consumer shall pay for a decrease in the value of the goods or digital products only to 
the extent that the decrease in value exceeds depreciation through regular use. The payment 
for the decrease in value shall not exceed the price paid for the goods or digital products. 
 
Sec. 15. Damages. — The online merchant is liable for damages to the consumer 
due to the lack of conformity with the contract of the goods or digital products: Provided, that 
such becomes apparent within six (6) months from receipt of the said goods or digital product. 
No damages may be recovered from this Act after the lapse of two (2) years from the time the 
consumer receives the goods or digital products. 
 
Sec. 16. Online Dispute Resolution. — The DTI shall develop an Online Dispute 
Resolution (ODR) platform is a single point of entry for parties to e-commerce transactions that 
are seeking out-of-court resolution of disputes when the platforms or merchants fail to resolve 
or assist consumers with their concerns. 
 (a) The ODR shall be an interactive website accessible electronically and free 33 of charge. 
The DTI, through the Bureau, shall be responsible for its 
operation, including its maintenance, funding, and data security. The ODR 
platform must be user-friendly, easily accessible, and data privacy compliant. 
(b) 
The DTI shall establish a network of ODR contact points from different 
government agencies involved in consumer complaints as specified in 
Republic Act No. 7394, otherwise known as the "Consumer Act of the 
Philippine", including the Department of Agriculture (DA), Department of 
Tourism (DOT), and the Department of Health (DOH), among others. The 6 Intellectual 
Property Office of the Philippines (IPO) shall also be part of the 
ODR network. 
(c) 
Each agency shall have a designated ODR contact point whose name and 
contact information are to be submitted to the DTI. The head of the agency 


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


 
 
(iii) Any report of illegal or infringing goods, services or digital products shall be expeditiously 
acted upon through investigations, suspensions, and take-down measures, necessaries, by the 
platform; 
(e) 
If the online e-commerce platform fails to comply with the requirements of this Act 
involves the collection, publication, and submission of online merchant information; and 
(f) 
If the e-commerce platform operator fails, after notice, to act expeditiously 
to remove, or disable access to, goods, services, or digital products 
appearing on their platform that they know or should have known to be non-compliant with law, 
or otherwise infringe on intellectual property rights. 
 
 Sec. 18. E-commerce Philippine Trustmark. — To provide assurance of safety and security in 
transactions over the internet, an e-commerce Philippine Trustmark shall be developed for 
online merchants. 
 (a) A Trustmark and Trustmark Portal shall be created which shall be administered and 
managed by the DTI. 
(b) A Trustmark on the website of an online merchant signifies that the 
company is committed to guarantee honesty, fairness, and integrity in dealing with its 
customers, and is committed to refrain from engaging in any fraudulent, unethical, or unfair 
business practices. 
 In case of a complaint involving the purchase of their products or services, online merchants 
with the Trustmark shall give consumers the option of filing claims through the Trustmark portal, 
if the online merchant's customer 
care service has not been able to resolve the issue. 
(d) 
The Trustmark shall be linked to the DTI's online dispute resolution. 
The Trustmark shall be considered an official document for purposes of the 
crime of falsification as defined under the Revised Penal Code and other related laws. Any E-
marketplace, e-retailer, online merchant, or e-commerce digital platform that is found guilty of 
falsifying or forging the E12 commerce Philippine Trustmark, shall be subjected to a take-down 
order in accordance with Section 9 of this Act. 
 
Sec. 19. Implementing Agencies, Rules, and Regulations. — Within sixty 
 (60) days from the promulgation of this Act, the necessary rules and regulations shall be 
formulated and issued by the DTI, in consultation with the DICT, IPO, DOH, the Food and Drug 
Administration (FDA), and other relevant government agencies necessary for the proper 
implementation of this Act. 


 
 
 Sec. 20. Jurisdiction of Other Agencies. — The agencies mentioned in Section 20 of this Act 
shall continue to exercise the powers and duties provided to them under 
existing laws, unless repealed or modified accordingly. 
 
Sec. 21. Penalties. — 
(a) Any e-marketplace, e-retailer, online merchant or e-commerce digital platform that is found 
guilty of any deceptive, unfair or unconscionable sales act or practice as provided for under 
Republic 
Act No. 7394 or the "Consumer Act of the Philippines' done through the internet, 
shall be 
subjected to a take-down order in accordance with Section 9 of this Act. It shall also be 
punished with a fine of not less than Fifty Thousand Pesos 
(PhP50,000.00) but not more than Five Hundred Thousand Pesos (PhP500,000.00), or an 
imprisonment of not less than five (5) months but not more than (1) year, or both, upon the 
discretion of the court. (b) Any e-marketplace, e-retailer, online merchant or e-commerce digital 
platform that sells or allows the sale of illegal, or imminently injurious, unsafe or dangerous 
goods, services or digital products shall be subject to a take-down order in accordance with 
Section of this Act. It shall also be 
punished with: 
 
Imprisonment of one (1) year to three (3) years plus a fine 2 ranging from Fifty Thousand Pesos 
(PhP50,000.00) to One 3 hundred Fifty Thousand pesos (PhP150,000.00) for the first offense. 
(ii)  
Imprisonment of three (3) years and one (1) day to six (6) years 
plus, a fine ranging from One Hundred Fifty Thousand Pesos (PhP150,000.00) to Five Hundred 
Thousand Pesos (PhP500,000.00) for the second offense. 
(iii) 
Imprisonment of six (6) years and one (1) day to nine (9) years 
plus, a fine ranging from Five Hundred Thousand Pesos (PhP500,000.00) to One Million Five 
Hundred Thousand Pesos (PhP1,500,000.00) for the third and subsequent offenses. 
(c) 
Any e-retailer or online merchant who shall willfully or unreasonably refuse 
to provide the remedies under Section 13 (a), shall be subjected to a take15 down order in 
accordance with Section 9 of this Act, and be punished with 
a fine not less than One Hundred Thousand Pesos (PhP100,000.00), but 
not more than Three Hundred Thousand Pesos (PhP300,000.00), in addition to the payment of 
the actual value of the goods or digital products involved. 
(d) 
Any person who shall violate Section 13 (c) of this Act, shall be punished 
with a penalty of arresto mayor or a fine not exceeding One Hundred thousand Pesos 
(PhP100,000), without prejudice to any other available 
remedies under existing law.
In case any violation of this Act is committed by a partnership, corporation or any 
juridical entity, the President, the General Manager, and other officers, employees and  agents, 
who shall consent to, or shall knowingly tolerate such violation shall be criminally liable. 


 
 
 
Sec. 22. Appropriations. 
The amount of Fifty Million Pesos (PhP50,000,000.00) for the initial 
operation of the Bureau is hereby appropriated out of any funds in the National Treasury not 
otherwise appropriated. Thereafter, such sum as may be necessary for the continued 
implementation of this Act shall be included in the annual General Appropriations Act. 
 
Sec. 23. Separability Clause. — Should any provision or part of this Act be declared 
unconstitutional or invalid, the other provisions and parts hereof, insofar as they are 
separable from the invalid ones, shall remain in full force and effect. 
 
Sec. 24. Repealing Clause. — All laws, decrees, orders, issuances, rules and 
regulations 
or parts thereof which are inconsistent with this Act are hereby repealed or  
modified 
accordingly. 
 
Sec. 25. Effectivity Clause. — This Act shall take effect fifteen (15) days after 5 its publication 
in the Official Gazette or in at least two (2) newspapers of general 
circulation. 
Approved,