\Vf
NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
erf t!;e ^^V’^Ttnrp
*22 .JUL 25 A10 35
SENATE
s. No. 806
RECEIVED BY;
Introduced by Senator Jinggoy Ejercito Estrada
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
Article XVI Section 9 of che Constitution provides that the State shall protect 
consumers from trade malpractices and from substandard or hazardous products.
Strict lockdown and quarantine protocols forced us to stay at home and 
conduct our businesses under the vast world of cyberspace. Purchasing household 
essentials, having daily meals delivered at one's doorstep, buying goods and services 
were primarily transacted in online platforms. The cosmic expanse of the online 
realm presents an infinite array of great opportunities for consumers and traders 
alike, but also unscrupulous and unlawful trade practices. We hear horror stories of 
misrepresentation, fake identities, scams, unfair practices and many forms of 
pambubudo! in the online market, which victimize both consumers and 
entrepreneurs.
This bill lays down a code of conduct for parties engaged in Internet 
transactions, as it defines the obligations of e-marketplaces (such as Shopee, 
Lazada, etc), online merchants and other digital platforms, as well as the rights of 
online consumers. It alms to create the regulatory environment that will build trust 
and confidence in online transactions, and allow the same to thrive and grow 
further. This bill also creates the E-commerce Bureau under the Department of


Trade and Industry (DTI) to ensure the robust and dynamic development of e- 
commerce. An Online Dispute Resolution (ODR) platform will also be created that 
will be the single point of entry for parties to e-commerce transactions that are 
seeking out-of-court resolution of disputes.
This proposal Is one of the legislative measures endorsed under the updated 
Philippine Development Plan 2017-2022 In pursuit of expanding economic 
opportunities In services, ensuring consumer access to safe and quality goods and 
services, strengthening the country's e-commerce Industry, and accelerating the 
recovery of many sectors and Industries following the economic slowdown due to the 
global Covld crisis.
This bill was reported out by the Senate Committee on Trade, Commerce and 
Entrepreneurship In the Eighteenth Congress, which also considered the similar 
legislation that was approved by the House of Representatives on Third and Final 
Reading.
In view of the foregoing, immediate passage of this measure Is 
recommended.
JINGGOY E3ERCXTO ESTRADA


tv fSiV i.i I?
Senate
NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
s. No. 80fi
of tl)c
•22 JUL25 A10-.36
RECEIVED BY;
Introduced by Senator Jinggoy Ejercito Estrada
AN ACT
PROTECTING CONSUMERS AND MERCHANTS ENGAGED IN INTERNET 
TRANSACTIONS, CREATING FOR THIS PURPOSE THE E-COMMERCE 
BUREAU, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER 
PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
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Section 1. Short Title. - This Act shall be known as theInternet Transactions
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Act of2022."
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Sec. 2. Declaration of Policy. - It is the policy of the State to promote the
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growth of electronic commerce (e-commerce) in the country by building mutual trust
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between online sellers and consumers. The State recognizes the growth of the
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digital economy and the need to ensure that all goods and services transacted
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digitally be in accordance with specifications, and be reliable, secure, and accessible
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to all consumers for the purpose of increasing the productivity and efficiency of
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businesses. Towards these ends, the State snail ensure sustainable and fair e-
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commerce business practices through transparent and appropriate Information
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disclosure, the maintenance and protection of data privacy rights and an emphasis
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on the paramount importance of product safety. Likewise, the State shall provide
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meaningful access to efrective mechanisms for the resolution of any and all disputes
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Involving e-commerce, including alternative dispute resolution methods.
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Sec. 3. Definition of Terms. - As used in this Act:


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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;
c) Goods “ refer to tangible products which are primarily for personal, family, 
household, or agricultural purposes which include, but are not limited to, 
food, drugs, cosmetics, and devices;
d) Delivery Carrier - refers to any natural or juridical person engaged in the 
business of providing personal delivery services of food, goods, 
documents, or any other item from one person to another for 
compensation;
e) Devices - refer to equipment or mechanism designed to serve a special 
purpose or perform a special function;
f) Digital Platforms - refer to internet intermediaries or businesses such as, 
but not limited to e-marketplaces, online delivery enterprises, 
transportation booking, tourism booking, entertainment website and 
services, music products and services, social media, advertising, education 
and learning products, health websites and applications, labor services, 
among others, that match, connect, or facilitate interactions and 
transactions by and between any two or more parties to enable them to 
sell, exchange, share, or transact In any convenient manner, goods, 
serv'ces and digital products;
g) Digital Products - refer to goods and services produced and supplied in 
digital form such as, but not limited to, video, audio, applications, digital 
games, and any and all other software that allows the consumer to create, 
process, download, store, or access digital content, or allows the sharing 
of the same, or such other interaction with digital content provided by 
other users of the service;


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h) E-commerce Philippine Trustmark- refers to the mark approved by the E- 
commerce Bureau signifying the iegitimacy and verified status of an oniine 
merchant and provides for consumer protection in online or e-commerce 
transactions and, whenever applicable, accountability in case of consumer 
complaints;
i) E-commerce or Oniine Transaction - refers to an exchange or transfer of 
goods and services using the internet;
j) E-marketpiace - refers to a digital platform such as, but not limited to, 
eBay, Amazon, Shopee, Lazada, Carousell, Facebook, Marketplace, among 
others, whose business is to connect oniine 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-Retaiier - refers to a natural or juridical person engaged in selling 
products or services, tangible or intangible, directly to oniine consumers 
through his own website or any other digital platform;
l) Interoperability - refers to the ability of the digital product to function with 
hardware or software different from those with which the digital product 
of the same tyoe 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 oniine delivery 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;


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p) Online Deliver 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- 
martkeplace, social media, website, application, or via any digital platform 
over the Internet.
Sec. 4. Scope and Coverage, - This Act shall apply to the sale or exchange of 
goods, services, or digital products In the course of trade or business whether 
between businesses, households. Individuals, and other public or private 
organizations, conducted over the Internet. Consumer to consumer Internet 
transactions shall not be covered under this Act.
Sec. 5. E-commerce Bureau. - The E-commerce Division created through DTI 
Department Order No 09-16 In accordance with Section 29 of Republic Act No. 8792 
or the "'''Electronic Commerce Act of2000/f\s hereby abolished, and an E-commerce 
Bureau under the Department of Trade and Industry (DTI) shall be created to 
perform the following functions:
a) Implement, monitor, and ensure compliance of the provisions of this Act;
b) Mandate entitles engaged In e-commerce to register with the Online 
Business Registry;
c) Formulate policies, plans and prograrTiS to ensure the robust and dynamic 
development of e-commerce;
d) Identify regulatory gaps affecting the e-commerce sector that are not 
sufficiently addressed by this Act or by existing laws or regulations, and 
recommend appropriate executive or legislative measures that foster the 
growth of the sector;
e) Act as a virtual one-stop shop tasked to receive and address consumer 
complaints on unresolved internet transactions between parties, facilitate 
the speedy resolution of consumer complaints by the respective 
government agency having jurisdiction over the same, and track
i complaints referred to or initiated by it motu proprio to ensure the speedy


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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 instrumentaiity 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 (LCDs) in the implementation of projects and 
programs promoting e-commerce, including information and education, as 
well as In ensuring a policy regime that is proactive.
Sec. 6. Composite of the Bureau. - The Bureau shall be headed by a 
Director who must have sufficient knowledge and background in e-commerce and 
online transactions, and all the laws and processes related thereto. The Director 
shall be assisted by three (3) Assistant Directors for policy and administration, for 
enforcement, and for operations.
The Director and all Assistant Directors shall be appointed by the President, 
upon the recommendation of the DTI Secretary, and must be career executive 
se.n/lce officers with at least five (5) years of government service and such 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 such 
other digital platforms engaged in the sale of goods, services, and digital products 
for purposes of verifying their existence, confirming their Identity, and other such 
relevant or needed information.
Sec. 8. Regulator/ Jurisdiction of the DTL - 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


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goods, services or digital products, and are purposely availing of the Philippine
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market.
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Sec. 9. Authority to Issue Take-Down Order. - Whenever the Bureau finds, by
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its own initiative or upon petition of a consumer or other concerned party, that the
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online sale of goods, lerviceo or digital products is violative of this Act, the
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"Consumer Act of the Philippines/'or any other related laws, the DTI Secretary, in
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order to abate any further violations, shall have the power to:
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a) Impose an order, as a form of penalty, directing that the violative online
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product listing, webpage, business page, application, social media post,
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profile, website or when applicable, any platform of the online merchant or
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e-retailer related to the illegal product, be taken down, or the same be
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made Inaccessible in the Philippines, whether temporarily or permanently,
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and
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b) Issue an advisory that no entity shall process any payments made to any
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violating entity to ensure 
that the latter shall be rendered commercially
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Inoperative.
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Provided that, the DTI Secretary may Immediately Issue a provisional take-
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down order to prevent grave and irreparable injury to the public, when the following
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conditions are present:
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a) When the DTI Secretary finds that a good, service or digital product is
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Imminently Injurious, unsafe or dangerous; or
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b) When the seller under Investigation has been previously penalized under
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this section.
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Whenever the DTI Secretary orders the Immediate take-down, recall, ban, or
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seizure of an Illegal product from public online sale of distribution, the seller,
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distributor, manufacture,', or producer thereof shall be given an opportunity to be
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heard within forty-eight (48) hours from the issuance of such order.
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The take-down order whether Imposed as a penalty or provisionally granted,
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shall be directed against the e-retaller, online merchant, or the owner or operator of
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the e-marketplace or digital platform. Copies of the order shall likewise be served on
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entities whose cooperation would be required for Its enforcement such as but not


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limited to the duly registered internet service provider involved, related payment
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gateways, and other government agencies.
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The DTI Secretary may revoke the take down order after hearing the
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explanation submitted by the seller, distributor, manufacturer, or producer; in which
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case the order revoking the take down order shall be served on the entities
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mentioned and in the same manner stated in the preceding paragraphs.
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Sec. 10. Referral of Complaints. - The Bureau shall refer any complaint It
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receives involving violation of other laws committed in the course of an online or e-
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commerce transaction to the appropriate regulatory authority for action. The Bureau
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shall track the complaints or referrals made to other authorities for action. The
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Bureau shall track the complaints or referrals made to other authorities and
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coordinate with them to ensure that matters are duly resolved in accordance with
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Republic Act No. 11032, otherwise known as the "Ease of Doing Business and
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Efficient Government Service Delivery Act of 2013."
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Sec. 11. Obligations of E-Marketpiaces and other Digital Platforms. -
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a) E-Marketplaces and e-commerce digital platforms shall ensure that their e-
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commerce transactions shall:
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(i) 
Be clearly identifiable as an e-commerce transaction;
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(II) 
Identify the person or persons on whose behalf the e-commerce
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transaction is made; and
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(Hi) Identify any promotional offers including discounts, premiums,
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gifts, and any promotional game or competition, and ensure that
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any condition to qualify for them are easily accessible, and clearly
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set forth.
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b) E-marketplaces and e-commerce digital platforms shall require ail online
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merchants to submit the following, prior to listing with their platforms:
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(i) Name of the online merchant accompanied by at least two (2) valid
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government identification cards;
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(ii) 
Geographic address where the online merchant is located;
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(iii) 
Contact details of the online merchant which must include a mobile
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or iandline number and a valid e-mail address; and


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(iv) In instf;inces when the onlin'^; merchant exercises a regulated
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profession, the online merchant shall be required to submit details
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of membership in any professional body or similar relevant
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Institution with which the online merchant is registered or otherwise
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is a member of,
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Except for the government identification cards mentioned under Section
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11(b)(1), the Information required under this paragraph shall be published
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or posted on the e-commerce platforms for transparency.
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c) E-marketplaces and e-commerce digital platforms are mandated to
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maintain a list of all online merchants registered under their platform,
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which shall be regularly verified. This list shali be submitted to the Bureau
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and updated every six (6) months.
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d) E-Marketplaces and e-commerce digital platforms shall not allow the sale
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of regulated guods such as, but not limited to, chemicals, food and drugs
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without verifying the online merchant's compliance with regulatory permits
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and licenses, sale procedures and limitations, and other relevant
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conditions for the sale as may be Imposed by any law or local government
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regulation.
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Sec. 12. Obligations of E-Retailers and Online Merchants. - An e-retailer or
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online merchant of goods, services or digital products, as defined under this Act,
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shall exercise the following responsibilities:
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a) Ensure that the goods are received by the online consumer:
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(I) In the same condition, type, quantity, and quality as described and
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stated and, in appiicable circumstances, possess the functionality,
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compatibility, Interoperability, and other features required by the
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sales contract, fit for the purpose for which it was Intended by its
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nature;
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(II) In the same condition, type, quantity, and quality of a sample,
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picture, or model of the goods shown by the e-retaller or online
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merchant upon request of the online consumer, or of additional
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descriptions or specifications provided by the e-retailer or online
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merchant upon Inquiries made by the online consumer; and


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(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 
relevant information stated in the packaging, printed or written in 
Filipino and/or English; and
(li) 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-retaller 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, in relatioii to functionality, compatibility, interoperability, 
accessibility, continuity, and security, which are standard and normal for a 
digital product of the same type as advertised or described.
d) Where the contract provided that the digital product is to be supplied or 
made accessible to the online consumer over a period of time, the e-


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retailer or online merchant may modify the digital product beyond what is 
necessary for its maintenance, If the following conditions are met:
(I) The contract allows, and provides a valid reason for, such a 
modification;
(ii) Such a modification is made without additional cost to the 
consumer; and
(ill) The online consumer Is Informed In a clear and comprehensible 
manner of the modification.
e) Where the transaction involves a digital platform that offers a performance 
of a service, the e-retailer or online rr erchant shall ensure the completion 
of the same in accordance with the contract and as advertised.
f) An e-retailer or an online merchant that operated its own digital platform 
shall publish on its homepage the following:
(i) Name of the e-retailer or online merchant;
(il) Geographic address where the e-retailer or online merchant is 
located; and
(lii) Contract details of the e-retailer or online merchant which must 
include a mobile or landline number and a valid e-mail address to 
ensure direct and efficient communication with consumers.
This shall be submitted to the Bureau and must be accompanied by at 
least two (2) government Identification cards as valid proof of Identity.
g) Where the e-retailer or online merchant is an online delivery service 
platform, it shall require its consumers to register by showing valid proof 
of Identity, and an e-mail address or mobile phone number.
h) E-retallers 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 e-retaller or online merchant and the online 
consumer Is valid only If, at the time of the conclusion of the contract, the online 
consumer has knowledge of the specific condition of the goods, services or digital 
products and has expressly accepted such condition.
Sec. 13. Rights and Obligations of Online Consumers. -
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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:
(i) 
A repair or replacement of goods or digital product which must be 
completed within a reasonable time and without any significant 
inconvenience to the consumer, taking into account the nature and 
the purpose for which the consumer acquired such;
(ii) 
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:
1) When the repair or replacement Is Impossible or unlawful;
2) The online merchant has not completed repair or replacement 
within a reasonable time;
3) When repair or replacement may cause significant 
inconvenience to the consumer; or
4) When the online merchant has declared, or it is equally clear 
from the circumstances, that the online merchant may not bring 
the goods or digital product in conformity with 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 product in conformity 
with the contract;
(iv) 
The consumer Is not entitled to a remedy to the extent that the 
consumer has contributed to any ambiguity or lack of conformity 
with the contract or its effects;
(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 
merchants expense, unless otherwise agreed upon by the parties;
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(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, 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;
(vll) In case of goods or digital products that do not conform with the 
contract, the consumer Is not liable to pay for the use of the non- 
conforming goods or digital products prior to its replacement;
(vlll) 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 or online delivery service platforms may hold delivery carriers 
liable for damages if the latter fail to exercise due diligence and 
reasonable care over the goods transported by them.
c) To protect the rights of delivery carriers. It shall be unlawful for consumers 
to:
(i) Cancel confirmed orders for the delivery of food or grocery items 
when the said Items have already been paid for by, or is already In 
the possession of the online deliver partner or delivery service, 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 
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 one 
(1) hour from the expected time of arrival due to the fault or 
negligence of the online delivery partner oi' delivery service.
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(li) Use the personal information of another person such as, but not
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limited to, name, address, and contact number when registering in
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online delivery service platforms;
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(iii) Place an order under the name of another person, unless the latter
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consented to the same, or placing an order using a fictitious name
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and/or address; or
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(iv) Unreasonably shame, demean, embarrass, or humiliate online
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delivery partners.
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Sec. 14. Right to Terminate the Contract. - If the goods or digital products
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delivered do not conform to the contract, the consumer may exercise the right to
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terminate the contract by giving notice to the online merchant. Where the lack of
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conformity relates to only some of the goods or digital products delivered under the
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contract, the consumer may terminate the contract only in relation to the non-
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conforming goods or digital products and any such accessory acquired as an adjunct
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to the same.
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When the consumer terminates a contract as a whole or In relation to some of
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the non-conforming goods or digital products delivered:
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a) The online merchant shall reimburse to the consumer the price paid not
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later than fourteen (14) days from receipt of the notice and without undue
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delay whatsoever;
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b) Upon receipt of the reimbursement from the online merchant, the
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consumer shall return, at the online merchant's expense, the goods or
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digital products not later than fourteen (14) days from the receipt of the
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reimbursemenc and without undue delay v/hatsoever, provided that the
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online merchant may waive this requirement at any time;
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c) When the goods or digital products cannot be returned because of
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destruction of loss, the consumer shall pay the monetary value which the
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non-conforming goods or digital products would have had at the date
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when the return was to be made had they been kept by the consumer
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without destruction or loss until that date, unless the destruction or loss
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has been caused by a lack of conformity of the goods or digital products
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with the contract; and
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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 t'lrough regular use. The payment for decrease in value shall 
not exceed the price paid for the goods or digital products.
Sec. 15. Damages, - The online merchant is liable for damages to the 
consumer due to the lack of conformity with the contract of the goods or digital 
products: Provided, Tha^" 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 deve'op an Online Dispute 
Resolution (ODR) platform which is a single point of entry for parties to e-commerce 
transactions that are seeking out-of-court resolution of disputes when the platforms 
or merchants fall to resolve or assist consumers with their concerns.
a) The ODR shall be an Interactive website accessible electronically and free 
of charge. The DTI, through the Bureau, shall be responsible for its 
operation, including its maintenance, funding, and data security. The ODR 
platform must be user-friendly easily accessible, and data privacy 
compliant.
b) The DTI shall establish a network o( ODR contact points from different 
government agencies involved in consumer complaints as specified in 
Republic Act No. 7394, otherwise known as the ''Consumer Act of the 
Philippines^ Including the Department of Agriculture (DA), Department of 
Tourism (DOT"', and ^he Department of Health (DOH), among others. The 
Intellectual Property Office of the Philippines (IPOPHL) 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 that timely and competent support is provided to the resolution of 
complaints and disputes submitted through the ODR platform.
d) The ODR platform shall have the following functions:
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(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 on the response of 
the entity handling their dispute; and
(iil) 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 and e-commerce platforms and online merchants shall provide on 
their websites an electronic link to the DTI-ODR platform on their 
homepage.
Sec. 17. Liability. - An e-marketplace or e-commerce digital platform shall be 
solidarily liable with its listed online merchant, after due notice and hearing, under 
the following circumstances:
a) If it fails to provide a mechanism for consumers to dispute, be refunded, 
or validly cancel orders. Fdr this purpose, refunds to cash-paying 
customers should also be in cash;
b) When the online e-commerce platform falls 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 comoly with existing laws, or otherwise 
infringe on intellectual property rights;
d) If it falls to take necessary measures to prevent or curtail the sale or 
distribution of the products which are Illegal, do not comply with existing 
laws, or otherwise infringe on intellectual property rights within a 
reasonable period.
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-
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marketplace or e-commerce digital platform Is not apparent, provided
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that:
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(i) 
The online e-commerce platform offers a simple and
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straightforward procedure for consumers, rights-holders, or online
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merchants to report the existence of illegal or infringing goods,
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services or digital products in the platform;
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(ii) 
Consumers, rights-holders, and online merchants are properly
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Informed on the policy implementing such procedure;
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(iii) Any report of Illegal or infringing goods, services or digital products
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shall be expeditiously acted upon through investigations,
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suspensions, and take down measures, if necessary, by the
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platforn i;
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e) If the online e-commerce platform fails to comply with the requirements of
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this Act involving the collection, publication, and submission of online
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merchant information; and
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f) If the commerce platform operator fails, after notice, to act expeditiously
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to remove, or disable access to, goods, services, or digital products
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appearing on their platform that they know or should have known to be
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non-compliant with law, or otherwise infringe on intellectual property
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rights.
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Sec. 18. E-commerce Philippine Trustmark. - To provide assurance of safety
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and security In transactions over the Internet, an E-commerce Philippine Trustmark
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shall be developed for online merchants.
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a) A Trustmark and Trustmark Portal shall be created which shall be
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administered and managed by the DTI.
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b) A Trustmark on the website of an online merchant signifies that the
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company is committed to guarantee honesty, fairness, and Integrity in
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dealing with its customers, and is committed to refrain from engaging in
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any illegal, fraudulent, unethical, or unfair business practices.
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c) In case of a complaint Involving the purchase of their products or
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services, online merchants with the Trustmark shall give consumers the
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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 DTTs online dispute resolution.
e) The Trustmark shall be considered an official document for purposes of 
the crime of falsification as defined under the Revised Penal Code and 
other related laws. Any E-marketplace, e-retailer, online merchant, or e- 
commerce digital platform that is found guilty of falsifying or forging the 
E-commerce Philippine Trustmark, shall be subjected to a take-down 
order in accordance with Section 9 of this Act.
Sec. 19. Implementing Agencies, Rules, and Regulations. - Within sixty (60) 
days from the promulgation of this Act, the necessary rules and regulations shall be 
formulated and issued bv the DTI, in consultation with the DICT, IPOPHL, DOH, the 
Food and Drug Administration (FDA), and other relevant government agencies 
necessary for the proper implementation of this Act.
Sec. 20. Jurisdiction of Other Agencies. - The agencies mentioned In Section 
19 of this Act shall continue to exercise the powers and duties provided to them 
under existing laws, unless repealed or modified accordingly.
Sec. 21. Penalties. -
a) Any e-marketplace, e-retaller, 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 
(Php50,000.0C) but not more than Five hundred thousand pesos 
(Php500,000.00), or an imprisonment of not less than five (5) months but 
not more than (1) year, or both, upon the discretion of the court.
b) Any e-marketplace, e-retailer, online merchant or e-commerce digital 
platform that sells or allows the sale of Illegal, or imminently Injurious, 
unsafe or dangerous goods, services or digital products shall be subject to 
a take-down order in accordance with Section 9 of this Act. It shall also be 
punished with:
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(i) 
Imprisonment of one (1) year to three (3) years plus a fine ranging 
from Fifty thousand pesos (PhpSO,000.00) to One hundred fifty 
thousand pesos (Phpl50,000.00) 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 
(Phpl50,000.00) to Five hundred thousand pesos (PhpSOO/OOO.OO) 
for the second offense.
(Hi) Imprisonment of six (6) years and one (1) day to nine (9) years 
plus a fine ranging from Five hundred thousand pesos 
(PhpSOO,000.00) to One million five hundred thousand pesos 
(Phpl,500,000.00) for the third and subsequent offenses.
c) Any retailer or online merchant who shall wilfully or unreasonably refuse 
to provide the remedies under Section 13 (a), shall be subjected to a take- 
down order In accordance with Section 9 of this Act, and be punished with 
a fine not less than One hundred thousand pesos (PhplOO,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 (Phpl00,000.00), without prejudice to any other available 
remedies under the existing laws.
In case any violation of this Act is committed by a partnership, corporation or 
any juridical entity, the President, the General Manager, and other officers, 
employees and agents, who shall consent to, or shall knowingly tolerate such 
violation shall be criminally liable.
Sec. 22. Appropriations. - The amount of Fifty million pesos 
(Php50,000,000.00) for the Initial operation of the Bureau is hereby appropriated out 
of any funds in the National Treasury not otherwise appropriated. Thereafter, such 
sum as may be necessary for the continued implementation of this Act shall be 
included In the annual Genera! Appropriations Act.
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Sec. 23. Separability Clause. - If any section or part of this Act is held 
unconstitutional or invalid, the other sections or provisions not otherwise affected 
shall remain in full force and effect.
Sec. 24. Repealing Clause. - All laws, decrees, executive orders, rules and 
regulations. Issuances or any part thereof inconsistent with the provisions of this Act 
are hereby repealed or modified accordingly.
Sec. 25. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in at least two (2) national newspapers of 
general circulation.
Approved,
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