1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ___________ 
Introduced by Representative Ambrosio “Boy” C. Cruz, Jr. 
EXPLANATORY NOTE 
In the latest Digital 2022 report of the social media management firm Hootsuite and 
creative agency We Are Social, the Philippines ranks second (2nd) among countries whose 
citizens spend the most time on the internet and social media.  
This is not the first time that the Philippines has seen itself ranking high when it comes 
to internet usage. In fact, in 2021, the Philippines ranked first  in the same Digital report of 
Hootsuite and We Are Social. 
Concurrent with the high internet usage in the Philippines is the development of 
electronic commerce (e-commerce). With just a few clicks, Filipinos can now buy groceries, 
medicines, cosmetics, clothes, and other needs through the internet, which is a welcome 
development for many considering its convenience. When the COVID-19 pandemic hit the 
world, e-commerce also provided safety from the virus as people no longer had to do face-to-
face transactions to acquire goods and services. 
The Philippines has also become a viable space for electronic payments which is also 
buoyed by e-commerce itself. In the 2021 Financial Services Consumer Survey by GlobalData, 
alternative payment solutions are the most preferred payment method in the Philippines when 
it comes to online purchases.  
Indeed, e-commerce has changed the landscape of seller-consumer relationship in the 
Philippines and it can only grow further from hereon as GlobalData also said that the e-
commerce transaction value in the Philippines would likely increase at an annual rate of 15.8 
percent from 2022 to 2025. 
However, it bears stressing that the Philippine e-commerce industry has not yet reached 
its full potential. There are still many businesses, especially Micro, Small, and Medium-sized 
Enterprises (MSMEs), that are yet to transition to using digital technology platforms. In the 
same vein, there are no rules and regulations in place that succinctly covers the astounding e-
commerce boom in the Philippines.  
August 13, 2022
4:01 pm
3149


2 
Considering the foregoing, this bill aims to provide a framework by which e-commerce 
in the Philippines may be regulated and ultimately, developed at a sustainable level. As a 
significant step towards such goal, this bill also intends to establish the eCommerce Bureau that 
will be the primary overseer of e-commerce activities in the country.   
In passing this bill, an e-commerce environment that is transparent, efficient, and 
reliable will be forged. Both sellers and consumers will be able to transact in confidence, 
knowing that both parties will be protected by the law.  
In view thereof, the passage of this bill is earnestly sought. 
AMBROSIO “BOY” C. CRUZ, JR. 
Representative, Fifth District of Bulacan 


3 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ___________ 
Introduced by Representative Ambrosio “Boy” C. Cruz, Jr. 
AN ACT PROVIDING PROTECTION TO CONSUMERS AND MERCHANTS ENGAGED 
IN INTERNET TRANSACTIONS, CREATING FOR THE PURPOSE THE ELECTRONIC 
COMMERCE BUREAU, AND APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
Section 1. Short Title. – This Act shall be known and cited as the “Internet Transactions 
Act of 2022.”  
Section 2. Declaration of Policy – It is the policy of the state to create an electronic 
commerce (eCommerce) industry that is transparent, efficient, and reliable. To this end, the 
State shall regulate eCommerce activities in such a way that both consumers and sellers are 
protected in all their transactions.  
Section 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 eCommerce;
3149


4 
(e) Consumer-to-consumer transactions (C2Cs) refer to one-off, petty, or occasional low-
value transactions of an individual or group of individuals to another that are not
made in the ordinary course of business of any party to the transaction;
(f) Digital content refers to data which are produced and supplied 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)
eCommerce platform operator refers to a natural or juridical person that solicits the
purchase of goods and services through digital platforms and marketplaces whose
business is to connect consumers and online merchants, facilitating sales of
products, goods or services through the internet with the presence and use of
monetary transactions. These shall include social media websites and any other
similar platforms in so far that it is used for business;
(k) Functionality refers to the ability of the digital content or digital service to perform
its functions according to its purpose;
(l) Goods refer to physically or digitally produced items over which ownership rights
may be established and whose economic ownership may be passed from one
institutional unit to another by engaging in transactions;
(m) Internet access and service provider refer to an entity that provides households,
businesses, and government access to the internet through the physical transport
infrastructure;
(n) Internet retailing of consumer goods refers to engaging in any eCommerce activity
other than online travel services, online media, ride hailing services, and digital
financial services:
(o) Internet transaction refers to the sale or purchase of goods or services, whether
between businesses, households, individuals, governments, and other public or
private organizations, conducted over the internet. At least one point of these
transactions is conducted over the internet but the payment and ultimate delivery
of the goods or service may be conducted on or offline;


5 
 
 
(p) Interoperability refers to the ability of the digital content or digital service to function 
with hardware or software different from those with which digital content or digital 
services of the same type are normally used; 
 
(q) Online merchant refers to a natural or juridical person, regardless of location, that 
directly sells, manufactures goods, or offers for sale, any good or service, either 
individually or through a platform, in the ordinary course of business, over the 
internet, through a website an online marketplace, a social media website or 
application or through other similar means; 
 
(r) Online media refers to digital media products or services pertaining to advertising, 
gaming, subscription music, and video on demand, available through an online 
platform, application, website, webpage, social media account, or other similar 
platforms operated by the provider, regardless of whether the provider is 
authorized to engage in eCommerce; 
 
(s) Online travel services refer to services that facilitate the reservation, purchase or 
discounting of flights, hotel accommodations, and vacation rental spaces, through 
an online platform, application, website, webpage, social media account, or other 
similar platform operated by the provider, regardless of whether the provider is 
authorized to engage in eCommerce in the Philippines; 
 
(t) Price refers to money or a digital representation of value that is due in exchange for 
the supply of goods, services, digital content, or digital service; 
 
(u) Producer refers to the manufacturer or importer of goods, or any person purporting 
to be a manufacturer who places its name, trademark, or other distinctive sign on 
goods; 
 
(v) Repair refers to bringing defective goods into conformity with the contract; 
 
(w) Ride hailing service refers to the delivery of food, goods or other merchandise, or of 
personal transport services, contracted through an online platform, application, 
website, webpage, social media account, or other similar platform operated by the 
provider, regardless of whether the provider is authorized to engage in eCommerce 
in the Philippines; 
 
(x) Ride hailing service partner refers to third-parties who offer their services to transport 
or deliver food, parcels or any other item, on behalf of ride hailing service providers; 
 
(y) Ride hailing service provider refers to those, who in the ordinary course of trade or 
business, provide for or facilitate ride hailing services; and 
Section 4.  Scope and Coverage. - Unless otherwise specified, this Act shall apply to any 
stage of all business-to-business and business-to-consumer eCommerce and internet 
transactions including those related to the following activities: 


6 
 
a) Internet retail of consumer goods and services 
b) Online travel services 
c) Online media providers 
d) Ride hailing services; and 
e) Digital financial service 
Consumer-to-consumer transactions shall be exempt from the operation of this Act, 
without prejudice to the application of other laws. Unless expressly specified, nothing in this 
Act shall be construed as to diminish or deprive the regulatory jurisdiction conferred by law 
upon other government agencies with respect to regulated services that fall within the scope of 
eCommerce. 
Section 5. Extra-territorial Application. - A person engaging in commerce who 
purposefully availed of the Philippine market shall be deemed as doing business in the 
Philippines and be subject to applicable Philippine laws and regulations, including this Act. 
One who purposely avails of the Philippine market without establishing any real or legal 
presence in the Philippines shall be required to notify the eCommerce Bureau created under 
Section 7 of this Act for inclusion in the Registry of Online Business established under Section 
11 of this Act or may designate a resident agent who shall be authorized to receive on their 
behalf notices or processes in any legal proceeding in the Philippines. The accessibility of goods 
and services to consumers in the Philippines shall be considered in ascertaining whether one 
engaged in eCommerce is purposefully availing the Philippine market. 
Section 6. Equal Treatment of Online and Offline Commercial Activities. Unless 
otherwise specified, this Act shall be construed to ensure that those who engage in eCommerce 
may not enjoy any benefit that is more favorable, nor be placed at a disadvantage, in relation to 
other enterprises that offer goods and services offline in the Philippines. 
CHAPTER 2 
ECOMMERCE BUREAU 
Section 7.  Creation of the eCommerce Bureau – To ensure the attainment of the 
objectives of this Act and promote the growth of eCommerce, there is hereby created an 
eCommerce Bureau under the Department of Trade and Industry (DTI), hereinafter referred to 
as the Bureau, which shall be organized within six (6) months after the effectivity of this Act. 
The Bureau shall have the following powers and functions: 
(a) Implement, monitor, and ensure strict compliance by eCommerce stakeholders of 
the provisions of this Act; 
 
(b) Build trust between consumers and sellers by requiring eCommerce platform 
operators, online merchants, or any other entity who engages in eCommerce to 
register their 
 
(c) Formulate policies, plans and programs to ensure the robust and dynamic 
development of eCommerce; 


7 
 
(d) Identify regulatory gaps affecting the eCommerce sector that are not sufficiently 
addressed by this Act or by existing laws or regulations, and recommend 
appropriate executive or legislative measures, including those that can be 
undertaken by the DTI on its own, that fosters the growth of the sector; 
 
(e) Act as a virtual central unit tasked to receive and address consumer complaints on 
internet transactions, facilitate the speedy resolution of consumer complaints by the 
respective government agency which has jurisdiction over it, and track complaints 
referred to or initiated by it to ensure the speedy and appropriate action by the 
agency to which such matters have been referred to; 
 
(f) Coordinate with, compel or petition whenever appropriate, any entity, government 
agency or instrumentality to take action on any matter that may impede 
eCommerce; 
 
(g) Investigate, motu proprio, and file the appropriate cases for violations of any 
provision of this Act; 
 
(h) Intervene or participate, in a manner as may be appropriate  in cases initiated or 
pending with other regulatory agencies involving eCommerce or violations of any 
provision of this Act: 
 
(i) Monitor internet transactions and undertake consultation with stakeholders and 
affected agencies for the purpose of understanding market behavior in order to 
update policies relevant to online transactions; 
 
(j) Monitor the compliance of other government agencies or instrumentalities on their 
compliance to the provisions of this Act and the Commerce roadmap; 
 
(k) Collect, compile, analyze, abstract, and publish eCommerce data for policy 
formulation and program development; 
 
(l) Prepare and conduct periodic studies on eCommerce; 
 
(m) Collaborate with departments of the National Government including local 
government units and government-owned or controlled corporations in 
implementing programs to promote eCommerce, including information, education, 
and campaign, well as in ensuring a policy regime that is proactive; and 
 
(n) Ensure that those who engage in eCommerce may not enjoy any benefit that is more 
favorable, nor be placed at a disadvantage, in relation to other enterprises that offer 
goods and services offline in the Philippines. 
In the exercise of the above-stated functions, the Bureau, in coordination with other 
government agencies, may convene public consultations or inter-agency meetings to ensure 
multi-stakeholder input in the development of eCommerce policies.  


8 
 
Government agencies and instrumentalities involved in the maintenance and 
development of the internet infrastructure of the Philippines, such as the Department of 
Information and Communications Technology (DICT) and the National Telecommunications 
Commission (NTC), shall cooperate with the Bureau on issues within their respective 
regulatory jurisdiction that affect the conduct of eCommerce. 
Section 8. Composition of the Bureau. – The Bureau shall be headed by a Director to be 
appointed by the President of the Philippines, as recommended by the Secretary of Trade and 
Industry. 
The Director shall oversee the day-to-day operations of the Bureau and shall be assisted 
by three (3) Assistant Directors each for policy and administration, enforcement, and 
operations. 
The Secretary of Trade and Industry shall determine the organizational structure and 
staffing pattern of the Bureau, subject to the approval of the Secretary of Budget and 
Management. 
Section 9. Subpoena.  – In the exercise of its powers under this Act, the Director of the 
Bureau shall have the power to issue summons, subpoena ad testificandum and subpoena 
duces tecum to alleged violators or witnesses to compel their attendance and the production of 
documents in investigations or proceedings before the Bureau. 
The failure to comply with a subpoena ad testificandum or subpoena duces tecum shall 
authorize the filing of a case for indirect contempt under the Rules of Court with the Regional 
Trial Court. A certification duly issued by the Bureau that a respondent to the subpoena ad 
testificandum or subpoena duces tecum refuses to comply with the same, despite due notice, 
shall be sufficient evidence to authorize the Regional Trial Court to cite the respondent with 
contempt. The Regional Trial Court shall likewise have the authority to issue any such order 
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. 
Section 10. Authority to Promulgate Rules and Regulations. - As the focal authority of 
the National Government for the development of policies and strategies towards the growth of 
eCommerce, the Bureau shall have the authority to promulgate rules and regulations covering 
areas or activities concerning eCommerce and to impose fines to compel compliance with such 
rules. The grant of this rule-making authority to the Bureau shall be ancillary to any duly 
constituted regulatory jurisdiction granted or that may be granted to other government 
agencies by law, including Executive Order No. 292, series of 1987, instituting the 
"Administrative Code of 1987", Republic Act No. 7394, otherwise known as the "Consumer Act 
of the Philippines", Republic Act No.  7653, as amended, otherwise known as "The New Central 
Bank Act", Republic Act No. 8293, as amended, otherwise known as the "Intellectual Property 
Code of the Philippines", Republic Act No. 8799, otherwise known as the "Securities Regulation 
Code", Republic Act No. 9239, otherwise known as the "Optical Media Act of 2003", Republic 
Act No. 9593, otherwise known as the "Tourism Act of 2009", Republic Act No. 10173, otherwise 


9 
 
known as the 'Data Privacy Act of 2012", Republic Act No. 10667, otherwise known as the 
"Philippine Competition Act", Republic Act No. 11127, otherwise known as "The National 
Payment Systems Act", and Republic Act No. 11232, otherwise known as the "Revised 
Corporation Code". The Bureau shall defer the exercise of rule-making power to the above-
listed government agencies conferred by law with regulatory jurisdictions over eCommerce 
providers or platforms unless the other agency declines to exercise its jurisdiction or does not 
act within a timely manner. 
Section 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 an 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 
Section 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. 
Section 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 


10 
 
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. 
Section 14. Referral of Complaints. - The Bureau shall refer any complaint it receives 
involving violation of other laws committed in the course of eCommerce activities to the 
appropriate regulatory authority for action. If the complaint or violation pertains to the 
violation of the provisions of Republic Act No. 10175, otherwise known as the "Cybercrime 
Prevention Act of 2012", the matter shall be referred to the Department of Justice (DOJ) for 
appropriate investigation. In cases where appropriate, the DTI may itself 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. 
Section 15.  Qualifications to Engage in eCommerce. - The following are presumed 
legally authorized to engage in eCommerce in the Philippines in the ordinary course of their 
trade or business: 
(a) An individual who is duly licensed to do business as a single-proprietor with the 
DTI; 
 
(b) A juridical entity that is duly registered with the Securities and Exchange 
Commission (SEC), whether as a corporation, a one-person corporation, or as a 
partnership; 
 
(c) (A cooperative that is duly licensed by the Cooperative Development Authority 
(CDA): 
 
(d) A foreign corporation that is duly licensed by the SEC to transact business in the 
Philippines; and 
 
(e) A non-resident foreign individual or juridical entity who has complied with Section 
5 of this Act. A resident of the Philippines who engages, abets, or aids in 
unauthorized eCommerce activities in the ordinary course of trade or business shall 
be subject to any appropriate penalty as may be provided by law and shall in the 
same manner as the party engaged in such unauthorized eCommerce activities. 
A person who is authorized to engage in eCommerce in the Philippines and who 
facilitates the sale of a digital product or service by one who is not so authorized is deemed 
primarily liable for any obligation, damage, or fine, that may arise from the transaction or from 
the digital product. 
A non-resident of the Philippines who engages in eCommerce by purposefully availing 
of the Philippine market may not evade legal liability in the Philippines by virtue of non- 
residency or non-registration and shall be subject to the same obligations and liabilities arising 
from any transaction as those who are authorized to engage in Commerce in the Philippines. 


11 
 
Section 16. Business Registration. –  
(a) To encourage the formation of business enterprises, the growth and integrated 
development of the eCommerce market, and protection of online consumers, all 
individuals engaged in eCommerce shall register as a business either as a sole 
proprietor, one-person corporation, partnership, corporation, or cooperatives. 
 
(b) Consistent with Republic Act No. 11032, otherwise known as the "Ease of Doing 
Business and Efficient Government Service Delivery Act of 2018," all national 
government agencies and local government units (LGUs) shall make available 
online registration of business permits and licenses particularly for those 
engaged in eCommerce. 
 
(c) The SEC, LGUs, and the CDA shall submit to the Bureau an annual list of 
registered enterprises for monitoring and for purposes of maintaining a database 
of online merchants and eCommerce platform operators. 
 
CHAPTER 4 
CONSUMER RIGHTS AND OBLIGATIONS INVOLVING INTERNET TRANSACTIONS 
Section 17.  Code of Conduct. - To build trust in internet transactions and to protect and 
uphold the interest of consumers at all times, all businesses engaged in eCommerce are 
expected to act responsibly, consistent with the following principles: 
(a) Consumers shall be treated with honesty, integrity, and fairness at all times; 
 
(b) The rights of consumers shall be applied equally; 
 
(c) Business entities shall refrain from engaging in illegal, fraudulent, unethical, or 
unfair business practices that harm consumers and shall comply with applicable 
laws and regulations, especially the protection of intellectual property rights; 
(d) Accurate information about goods and services marketed and sold online to 
Philippine consumers shall be given and made available to consumers; 
 
(e) Goods and services sold online must conform to Philippine regulatory standards; 
 
(f) The safety of goods and services marketed or sold online must not be compromised 
and products that have been recalled in the offline retail market must not be 
marketed or sold online; 
 
(g) Goods and services must be easily accessible, accurately described, and promoted 
through fair advertising and marketing practices; 
 
(h) Consumers must be given the correct and complete information about costs through 
a sales invoice or an official receipt detailing the particular costs of the goods or 


12 
 
service purchased, including shipping or delivery charges. Hidden charges or 
additional costs such as customs duties or currency conversion charges must be 
avoided; 
 
(i) The tracking of deliveries must be provided as part of services of online merchants 
or eCommerce platform operators and goods purchased must be delivered within 
the promised time and described condition to the address provided by the 
consumer; 
 
(j) A cancellation option must be provided wherein consumers are given the 
opportunity to review their online purchases before finally confirming their 
purchase or withdrawing from a confirmed transaction in appropriate 
circumstances; 
 
(k) Consumer complaints must be dealt with through fair, easy, transparent and 
equitable mechanisms for consumer redress. If warranted, compensation, refund, 
repair, and replacement should be provided to the consumer; 
 
(l) Data privacy laws and regulations, including Republic Act No. 10173, otherwise 
known as the "Data Privacy Act of 2012," and other similar laws and regulations 
shall be strictly complied with; 
 
(m) The safety and security of online payments and sensitive data shall be safeguarded 
through the use of secure technology and protocols including those evidenced by 
visible trust certificates or any appropriate similar certification as may emerge in the 
future; 
 
(n) The transmission of unsolicited commercial email or bulk email, except those subject 
to the control and discretion of the consumer through readily accessible 
configurations that allow the consumer to choose whether they wish to receive or 
opt-out from commercial messages by email or electronic means, must be avoided; 
(o) The production of fake online reviews or spreading wrong information about 
competitors is improper and must be avoided; 
 
(p) Consumers must be educated about the risks of transacting through the internet and 
shall be provided competent and professional advice; and 
 
(q) Competing fairly with other businesses and adherence to competition principles and 
all applicable competition laws and regulations, including Republic Act No. 10667, 
otherwise known as the "Philippine Competition Act", shall ensure the robust 
development of eCommerce and the economy. Whenever appropriate, the DTI shall 
issue rules and regulations corresponding to international trends, developments 
and best practices that it may adopt and implement. 
Section 18.  Obligations of eCommerce Platform Operators. – eCommerce platform 
operators shall have the following obligations: 


13 
 
(a) Ensure that any commercial communication shall: 
 
(1) Be clearly identifiable as a commercial communication; 
 
(2) Clearly identify the person on whose behalf the commercial communication is 
made; 
 
(3) Clearly identify any promotional offer including any discount, premium, or 
gift, and ensure that any condition which must be met to qualify for it is easily 
accessible, and presented clearly and unambiguously; and 
 
(4) Clearly identify any promotional competition or game and ensure that any 
condition for participation is easily accessible and presented clearly and 
unambiguously; 
 
(b)  Require all online merchants, prior to the commencement of online transactions to 
submit the following to eCommerce platform operators: 
 
(1) Name of the online merchant; 
 
(2) Registration documents of the online merchant from the appropriate LGU, the 
DTI or SEC, and the Bureau of Internal Revenue (BIR); 
 
(3) Geographic address at which the online merchant may be served summons or 
any other judicial processes in its name and behalf; 
 
(4) Contact details of the online merchant, such as a mobile or landline number, 
and a valid electronic mail address, which makes it possible to immediately and 
easily contact and communicate with the online merchant in a direct and 
effective manner; and 
(5) Details of any professional body or similar institution with which the online 
merchant is registered, in instances when the online merchant exercises a 
regulated profession; 
  
(c) Maintain a file of all online merchants registered under their platform containing 
the information provided by online merchants in paragraph (b) of this Section; 
 
(d) Publish at a conspicuous part on their website, webpage, social media account, or 
other similar platform, the following general information: 
 
(1) Name of the online merchant; 
 
(2) Registration documents of the online merchant from the appropriate LGU, the 
DTI or SEC, and the BIR; 
 
(3) Geographic address at which the online merchant may be served summons or 
any other judicial processes in its name and behalf; 


14 
 
 
(4) Contact details of the online merchant, a mobile or landline number, or a valid 
electronic mail address, which makes it possible to immediately and easily 
contact and communicate with the online merchant and communicate in a direct 
and effective manner unless the eCommerce online platform establishes means 
to facilitate communication between online merchants and consumers; and 
 
(5) Details of any professional body or similar institution with which the online 
merchant is registered, in instances when the online merchant exercises a 
regulated profession; 
  
(e) Submit to the Bureau a list of all online merchants registered under their platform. 
When an eCommerce platform operator discovers that an onboarded online 
merchant has not obtained registration documents from the relevant regulatory 
agency, it shall report such fact to the Bureau within fifteen (15) days from discovery 
thereof. 
 
(f) Cooperate with regulators, in accordance with existing laws and regulations, any 
investigation, or resolution of consumer complaints. 
Section 19.  Internet Transactions Involving Consumers. - An online merchant of goods 
shall exercise the following responsibilities: 
(a) Deliver or cause the delivery of goods to the consumer, ensuring that the following 
are complied with: 
 
(1) The goods are of the description, type, quantity, and quality, and possess the 
functionality, compatibility, interoperability and other features, as required by 
the sales contract. The online merchant must show a digital sample or model of 
the goods to the consumer and the goods possess the quality of and correspond 
to the description of the sample or model; possess the qualities and performance 
features, including in relation to functionality, compatibility, interoperability, 
accessibility, continuity, and security, normal for digital content or digital 
services of the same type and of which the consumer may reasonably expect; fit 
for any particular purpose for which the consumer requires them and which the 
consumer made known to the online merchant at the time of the conclusion of 
the contract, and which the online merchant has accepted; and possess the 
qualities and performance capabilities indicated in any pre-contractual 
statement which forms an integral part of the contract. 
 
(2) All goods shall: 
 
(i) 
Be delivered along with the accessories including packaging, installation 
instructions or other instruction as the consumer may expect to receive; 
and 
 


15 
 
(ii) 
Possess qualities and performance capabilities which are normal in 
goods of the same type and which the consumer may expect given the 
nature of the goods and taking into account any public statement made 
by or on behalf of the online merchant or other persons in earlier links 
of the chain of transactions, including the producer, unless the online 
merchant shows that: the online merchant was not, and could not 
reasonably have been aware of the statement in question; by the time of 
conclusion of the contract, the statement had been corrected; or the 
decision to buy the goods could not have been influenced by the 
statement. 
 
(b) Be liable for any lack of conformity with the contract which exists at the time when: 
 
(1) The consumer or a person acting on behalf of the consumer has acquired the 
physical possession of the goods, or when the goods are handed over to the 
carrier chosen by the consumer, and that carrier was not proffered by the online 
merchant or where the online merchant proposes no means of carriage; 
 
(2) The goods have been installed by the online merchant or under the online 
merchant's responsibility. The time at which the installation has been completed 
shall be considered the time when the consumer acquires physical possession of 
the goods; 
 
(3) The goods have been installed by the consumer in accordance with the online 
merchant's installation instructions. The expiration of a reasonable period for 
installation, which shall not be more than thirty (30) days, shall be considered 
the time when the consumer acquires the physical possession of the goods. 
 
(4) The goods are incorrectly installed. Any lack of conformity resulting from the 
correct installation is regarded as lack of conformity with the contract of the 
goods if: 
 
(i) 
The goods were installed by the online merchant or under the online 
merchant's responsibility; and 
 
(ii) 
The goods, intended to be installed by the consumer, were installed by 
the consumer and the correct installation was due to a shortcoming in the 
installation instructions. 
 
(c) Where the contract provides that the digital content or digital service is to be 
supplied or made accessible to the consumer over a period of time, the online 
merchant may modify the digital content or digital service beyond what is necessary 
to maintain the digital content or digital service in conformity with the contract, if 
the following conditions are met: 
 
(1) The contract allows, and provides a valid reason for, such a modification; 
 


16 
 
(2) Such a modification is made without additional cost to the consumer; and 
 
(3) The consumer is informed by a clear and comprehensible manner of the 
modification. 
 
(d) Where the online merchant operates its own website, webpage, social media 
account, or any other similar platform, it shall publish on its homepage the 
following: 
 
(1) Name of the online merchant; 
 
(2) Registration documents of the online the appropriate LGU, the DTI or SEC, the 
BIR, and other appropriate regulatory authorities; 
 
(3) Geographic address at which the online merchant may be served summons or 
any other judicial processes in its name and behalf; 
 
(4) Contact details of the online merchant, a mobile or landline number, and a valid 
electronic mail address, which makes it possible to immediately and easily 
contact and communicate with the online merchant and communicate in a direct 
and effective manner; and 
 
(5) Details of any professional body or similar institution with which the online 
merchant is registered, in instances when the online merchant exercises a 
regulated profession. 
Any agreement is valid only if, at the time of the conclusion of the contract, the 
consumer has knowledge of the specific condition of the goods and the consumer has expressly 
accepted this specific condition when concluding the contract. 
Section 20. Right to Redress by Online Merchants. - Where the online merchant is liable 
to the consumer because of a lack of conformity with the contract resulting from an act or 
omission by a person in earlier links of the chain of transactions, the online merchant is entitled 
to pursue remedies against the person or persons liable in the chain of transactions. The person 
against whom the online merchant may pursue remedies and the relevant actions and 
conditions to exercise must be in accordance with the following: 
(a) Repairs must be completed and replacements delivered within a reasonable time 
and without any significant inconvenience to the consumer, taking into account the 
nature of the goods and the purpose for which the consumer acquired the goods; 
 
(b) A proportionate reduction of the price or the termination of the contract, including 
restitution of the price, in the following instances: 
 
(1) A repair or replacement is impossible or unlawful; 
 


17 
 
(2) The online merchant has not completed repair or replacement within a 
reasonable time; 
 
(3) A repair or replacement may cause significant inconvenience to the 
consumer; or 
 
(4) The online merchant has declared, or it is equally clear from the 
circumstances that the online merchant may not deliver the goods in 
conformity with the contract within a reasonable time; 
 
(c)  The consumer is entitled to withhold the payment of any outstanding part of the 
price, until the online merchant has brought the goods into conformity with the 
contract; 
 
(d) The consumer is not entitled to a remedy to the extent that the consumer has 
contributed to the lack of conformity with the contract or its effects; 
 
(e) Where the online merchant remedies the lack of conformity with the contract by 
replacement, the online merchant may take back the replaced goods at the online 
merchant's expense unless the parties have agreed otherwise after the lack of 
conformity with the contract has been brought to the online merchant's attention by 
the consumer; 
(f) Where the consumer had installed the goods in a manner consistent with their 
nature and purpose, before the lack of conformity with the contract became 
apparent, the cost for the removal of the non-conforming goods and the installation 
of replacement goods, and all associated costs shall be for the account of the online 
merchant; 
 
(g) In case of goods that do not conform to the contract, the consumer is not liable to 
pay for using the non-conforming goods prior to its replacement; 
 
(h) The consumer may choose between repair and replacement unless the option chosen 
is impossible, unlawful or, imposes costs upon the online merchant that is 
disproportionate, taking into account all circumstances, including: 
 
(1) The value of the goods, if the goods conformed to the contract; 
 
(2) The significance of the lack of conformity with the contract; and 
 
 
(3) Whether the alternative remedy may be completed without significant 
inconvenience to the consumer. 
The reduction of price should be proportional to the decrease in the value of the goods 
which were received by the consumer compared to the value of the goods if it were in 
conformity with the contract. 


18 
 
Section 21. Obligations of Ride Hailing Service Providers. - Ride hailing service 
providers shall require its consumers to register by showing valid proof of identity, email 
address or cellular phone number. Ride hailing service providers shall make the identity of its 
providers and support staff available to the rider at all times. 
Section 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 said items 
have already been paid by or is already in the possession of the ride Hailing Service 
Partner or is otherwise in transit to the consumer unless: 
 
(1) The consumer uses credit card services as a means for the payment of the service 
and the payment will still be credited notwithstanding the cancellation; 
 
(2) The consumer remits the reimbursement and payment to the ride hailing service 
partner as a pre-condition for the cancellation of the order; or 
 
(3) The delivery of ordered food or grocery items will be or was delayed for at least 
one (1) hour from the expected time of arrival due to the fault or negligence of 
the ride hailing service partner. 
(b) Unreasonably shame, demean, embarrass, or humiliate ride hailing service partners. 
The consumer may invoke as a defense of good faith, a well-founded belief that the 
ride hailing service partner had committed a crime or caused civil injury towards 
the consumer. 
Section 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 goods 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 


19 
 
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. 
Section 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. 
Section 25. Online Dispute Resolution. - The DTI shall develop an online dispute 
resolution (ODR) platform which is a single point of entry for consumers, online merchants, 
and eCommerce platform operators seeking out-of-court resolution of disputes. Where an 
eCommerce platform operator does not have an internal dispute resolution mechanism, all 
complaints through an OD against an eCommerce platform operator shall be accompanied by 
proof that internal dispute resolutions were exhausted. 
(a) The ODR shall be an interactive website which may be accessed electronically and 
free of charge. The DTI, through the Bureau, shall be responsible for its operation, 
including its maintenance, funding and data security. The ODR platform must be 
user-friendly and must adopt the twin principles of "privacy by design" and "design 
for all", where the privacy of its users is respected, and the ODR platform is 
accessible and usable by all users. 
 
(b) The DTI shall establish a network of ODR contact points from, among others, the 
agencies involved in consumer complaints specified in Republic Act No. 7394, 
otherwise known as the "Consumer Act of the Philippines," which includes the Fair 
Trade Enforcement Bureau (FTEB) of the DTI, the Department of Agriculture (DA), 
the Department of Tourism DOT), and the Department of Health (DOH). The NPC 
and the Intellectual Property Office of the Philippines (IPOPHIL) shall also form part 
of the ODR network. 
 
(c) Each agency shall designate one ODR contact point and communicate its name and 
contact details to the DTI. The head of agency shall confer responsibility to the OR 
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; 
 


20 
 
(2) Provide a feedback system which allows the parties to express their views 
on the functioning of the ODR platform and on the ADR entity which 
handles their dispute; and 
 
(3) Make publicly available general information on ADR as a means of out-of-
court dispute resolution and information on ADR entities which are 
competent to deal with disputes. 
 
(e) The DTI shall ensure that the information in the website is accurate, up to date and 
provided in a clear, understandable and accessible way. 
 
(f)  Government and private sector entities which provide ADR services which are 
competent to deal with disputes shall be registered electronically with the ODR 
platform. 
 
(g) Digital platforms and online retailers shall provide on their websites an electronic 
link to the DTI ODR platform on their homepage. That link shall be easily accessible 
to consumers.  
 
(h) The DTI in consultation with other concerned agencies shall issue the implementing 
rules and regulations on the development, maintenance of the ODR platform. 
Section 26. Limited Liability of eCommerce Platform Operators. –  
(a) eCommerce platform operators shall be solidarily liable with an online merchant to 
the consumer only to the extent of civil damages suffered by the consumer as a direct 
result of the transaction, without prejudice to liabilities that may incur under the 
next succeeding paragraph or the provisions of other existing laws. 
 
(b) eCommerce platform operators shall, for civil or administrative indemnity, be held 
liable with an online merchant only under the following instances: 
 
(1) If the eCommerce platform operator fails to exercise ordinary diligence in 
complying with its obligations under Section 18 hereof, resulting to loss or 
damage to the consumer; 
 
(2) If the identity of the online merchant and the eCommerce platform operator 
are the same; 
 
(3) If the eCommerce platform operator fails, after notice, to act expeditiously to 
remove, or disable access to goods or services appearing on their platform 
that they know or should have known to be not compliant with law, 
otherwise infringes on intellectual property rights; 
 
(4) If the eCommerce platform operator permits an online merchant, not 
otherwise authorized to do business in the Philippines, to offer its goods and 
services for sale, resulting in loss or damage to the consumer. 


21 
 
 
(c) eCommerce platform operators shall not be held liable under the following 
instances: 
 
(1) The eCommerce platform operator relied on the accuracy, authenticity, and 
veracity of an online merchant's representations, warranties or submitted 
registration documents. even if such information or documents are later 
proved to be inaccurate, false or untrue: Provided that, the 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 operator relied on the representations, warranties 
or submissions of an online merchant stating that it is duly organized, valid 
and existing under the laws of the Philippines or under the laws of its 
respective jurisdictions to engage in Commerce, or has obtained all necessary 
licenses, permits or approvals required for the sale of goods and services, or 
that said goods and services conform to applicable laws, rules and 
regulations. 
Section 27. Digital Payments. - eCommerce platform operators and online merchants 
shall issue the appropriate paper or electronic invoices or receipts for all sales in accordance 
with relevant internal revenue laws and regulations. An electronic invoice or receipt shall have 
the same legal effect as a physical invoice or receipt. 
The DTI, through the Bureau, shall, in coordination with the Bangko Sentral ng Pilipinas 
(BSP), the BIR, the Bureau of Customs (BOC), the DOJ, the Philippine National Police, the DICT, 
and the NTC, issue rules and regulations to modernize and streamline the regulatory 
framework and encourage the adoption of electronic payment systems by the citizenry. The 
DTI shall also develop guidelines to protect merchants and consumers covering the various 
digital payment solutions. 
Section 28. Enforcement of Rights and Remedies. - Without prejudice to existing 
remedies provided under other laws, the enforcement of the rights and remedies established 
under this Chapter shall be through the following means: 
(a) If involving complaints by a consumer where no damages are sought, the complaint 
shall be treated as a consumer complaint with the DTI pursuant to Title V, Chapter 
IIl of Republic Act No. 7394, otherwise known as the "Consumer Act of the 
Philippines";  
 
(b) If involving a claim for damages, the injured party shall seek recovery by filing a 
civil action with the appropriate trial court. 
CHAPTER 5 
ELECTRONIC COMMERCE PHILIPPINE TRUSTMARK 


22 
 
Section  29. eCommerce Philippine Trustmark. - To provide assurance of safety and 
security in internet transactions, the DTI shall lead the development of an eCommerce 
Philippine Trustmark hereinafter referred to as the, "Trustmark", which may be established and 
operated by an industry-led private sector governance body. The TI shall periodically assess 
the effectiveness of the industry-led Trustmark in promoting to the public reliable and 
trustworthy eCommerce services, and opt to assume operational control over the Trust mark if 
it determines that the industry-led private sector effort cannot sufficiently achieve the goals of 
the Trust mark. 
CHAPTER 6 
FINAL PROVISIONS 
Section 30. Penalties. –  
(a) Online merchants who fail to register either as a sole proprietor, one- person 
corporation, partnership, corporation, or cooperative, shall be punished with a fine 
equivalent to one hundred percent (100%) of the amount of the digital goods offered 
or sold based on the market price as determined by the Bureau, including 
confiscation of the goods as advertised; 
 
(b) eCommerce platform operators and online merchants found guilty of violating 
Section 18, or Section 19 (d) of this Act shall be punished with a fine not less than 
Five hundred thousand pesos (PhP500,000.00) but not more than Five million pesos 
(PhP 5,000,000.00) or the revocation of their licenses, or both, at the discretion of the 
courts. 
 
(c) Ride hailing service providers found guilty of violating Section 21 of this Act Shall 
be punished with a fine of up to Five hundred thousand pesos (PhP 500,000.00) or 
the revocation of their licenses, or both, at the discretion of the courts. 
 
(d) Consumers found guilty of violating Section 22 (a) of this Act shall be punished with 
a fine of up to Fifty thousand pesos (PhP 50,000.00) plus one hundred percent (100%) 
of the amount advanced by the ride hailing service partner, or both, at the discretion 
of the courts. 
 
(e) Consumers found guilty of violating Section 22 (b) and Section 23 (b)of this Act shall 
be punished with a fine of up to Fifty thousand pesos (PhP 50,000.00), at the 
discretion of the courts. 
The application of these penalties shall be without prejudice to the liability of the 
offending party under other laws or regulations. 
Section 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 


23 
 
and Technology, and Finance, and five (5) members from the House of Representatives. which 
shall include the Chairpersons of the House of Representatives Committees on Trade and 
Industry, ICT, and Appropriations. The Internet Transactions Act Congressional Oversight 
Committee shall be jointly chaired by the Chairpersons of the Senate Committee on Trade and 
Commerce and the House of Representatives Committee on Trade and Industry. It shall meet 
at least every quarter of the first two years and every semester for the third year after the 
approval of this Act to review the implementation of this Act, evaluate the Bureau on its 
functions as the lead agency, determine any inherent weaknesses in the law, and recommend 
the necessary remedial legislation or executive measures: Provided, that the Internet 
Transactions Act Congressional Oversight Committee shall cease to exist after five (5) years 
upon the effectivity of this Act. 21 The Secretariat of the Internet Transactions Act Congressional 
Oversight Committee shall be drawn from the existing personnel of the Senate and House of 
Representatives Committees comprising the Internet Transactions Act Congressional Oversight 
Committee. 
Section 32. Implementing Rules and Regulations. - The Secretary of Trade and Industry 
shall, in consultation with the DICT, the BSP, the DOT, the Land Transportation Franchising 
and Regulatory Board (LTFRB), the Optical Media Board (OMB), the IPOPHIL, and other 
relevant government agencies and stakeholders, develop and issue the implementing rules and 
regulations of this Act. 
Section 33. Transitory Provisions. - To ensure the continued implementation of 
programs to promote eCommerce, the current eCommerce Division shall continue to exercise 
its functions until such time that the organizational structure and personnel of the Bureau have 
been determined and approved. 
All affected officers and personnel of the eCommerce Division shall be absorbed by the 
Bureau without demotion in rank or diminution of salaries, benefits and other privileges. 
Section 34. Appropriations. - The amount necessary to carry out the provisions of this 
Act shall be included in the annual General Appropriations Act. 
Section 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. 
Section 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. 
Section 37. Effectivity. - This Act shall take effect fifteen (15) days after its publication 
in the Official Gazette or in at least one (1) newspaper of general circulation. It shall also be 
published online, through the Official Gazette Online (www.officialgazette.gov.ph), and on the 
website of the DTI (www.dti.gov.ph). 
Approved,