Republic of the Philippines  
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila  
NINETEENTH CONGRESS 
First Regular Session  
HOUSE BILL NO. ______  
________________________________________________________________________ 
Introduced by Representative Eduardo Roa Rama Jr.  
________________________________________________________________________ 
EXPLANATORY NOTE 
The rapid advancement of digital technologies has changed the way we do commerce in the 
Philippines, as it has done across the world. Today, Filipino producers and consumers connect and 
transact with one another through the use of digital platforms, driving the growth of the digital 
economy. 
According to the International Trade Administration, the e-Commerce market sales of the 
Philippines reached $17 billion in the year 2021, largely contributed by 73 million online active users. 
This is estimated to reach $24 billion, with 17% growth through 2025. 
The Philippines continues to see more internet users join in this digital age of doing business. 
Thus, it is vital to recognize that e-Commerce are key engines of growth which will aid economic 
recovery in the country. This industry undeniably has the power to empower individuals and improve 
our nation's welfare; but this largely depends on the type of protections and regulations that are put 
in place. 
As the country aims to spur investments in innovation by providing support to Filipino 
enterprises who create goods and services, and at the same time protect the everyday consumers - now 
more than ever is the time for government to step in and protect consumers while ensuring that 
entrepreneurs are able to make a living. 
In view of the foregoing, the passage of this measure is earnestly sought. 
EDUARDO ROA RAMA JR. 
December 7, 2022
4:07 pm
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Republic of the Philippines  
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila  
NINETEENTH CONGRESS 
First Regular Session  
HOUSE BILL NO. ______  
________________________________________________________________________ 
Introduced by Representative Eduardo Roa Rama 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: 
CHAPTER 1 
GENERAL PROVISIONS 
SECTION 1. Short Title. – This Act shall be known as the “Internet Transactions Act”. 
SEC. 2. Declaration of Policy. – It is the policy of the State to promote and maintain a 
robust electronic commerce (eCommerce) environment in the country by building trust between 
online merchants and consumers. The State recognizes the value and potential of the digital economy 
to increase competition and improve productivity, thus the need to establish secure and reliable 
eCommerce platforms where goods and services are transacted online with appropriate transparency 
and utmost efficiency to encourage the creation of new products, services, business models and 
processes. Towards these ends, the State shall ensure an effective regulation of commercial activities 
through the internet or electronic means to ensure that consumer rights and data privacy are protected, 
innovation is encouraged, fair advertising practices and competition are promoted, online transactions 
are secured, intellectual property rights are respected, and where product standards and safety are 
observed.  
SEC. 3. Definition of Terms – As used in this Act: 
(a) Business to business transaction refers to internet transactions conduction over marketplaces
that facilitate business to business electronic sales of new and used merchandise using the
internet;
6570


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


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


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


The accessibility of goods and services to consumers in the Philippines shall be considered in 
ascertaining whether one engaged in eCommerce is purposefully availing the Philippine market.  
 
SEC. 6. Equal Treatment of Online and Offline Commercial Activities. – Unless 
otherwise specified, this Act shall be construed to ensure that those who engage in eCommerce may 
not enjoy any benefit that is more favorable, nor be placed at a disadvantage, in relation to other 
enterprises that offer goods and services offline in the Philippines.  
 
CHAPTER 2 
ECOMMERCE BUREAU 
 
SEC. 7. Creation of the eCommerce Bureau – To ensure 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 
power and functions: 
 
(a) Implement, monitor, and ensure strict compliance by eCommerce stakeholders of the 
provisions of this Act; 
 
(b) Build trust between consumers and sellers by requiring eCommerce platform operators, 
online merchants, or any other entity who engages in eCommerce to register their business 
with the Bureau; 
 
(c) Formulate policies, plans and programs to ensure the robust and dynamic development of 
eCommerce; 
 
(d) Identify regulatory gaps affecting the eCommerce sector that are not sufficiently addressed 
by this Act or by existing laws or regulations, and recommend appropriate executive or 
legislative measures, including those that can be undertaken by the DTI on its own, that 
fosters the growth of the sector; 
  
(e) 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 provisions of 
this Act; 
 
(h) Intervene or participate, in a manner as may be appropriate, in cases initiated or pending 
with other regulatory agencies involving eCommerce or violations of any provision of this 
Act; 
 
(i) Monitor internet transactions and undertake consultation with stakeholders and affected 
agencies for the purpose of understanding market behavior in order to update policies 
relevant to online transactions; 
  
(j) Monitor the compliance of other government agencies or instrumentalities on their 
compliance to the provisions of this Act and the eCommerce roadmap; 
 
(k) Collect, compile, analyze, abstract, and publish eCommerce data for policy formulation 
and program development; 
  
(l) Prepare and conduct periodic studies on eCommerce; 
 
(m) Collaborate with departments of the National Government including local government 
units and government-owned or controlled corporations in implementing programs to 
promote eCommerce, including information, education, and campaign, as well as in 
ensuring a policy regime that is proactive; and 
  
(n) Ensure that those who engage in eCommerce may not enjoy any benefit that is more 
favorable, nor be placed at a disadvantage, in relation to other enterprises that offer goods 
and services offline in the Philippines.  
 
In the exercise of the above-stated functions, the Bureau, in coordination with other 
government agencies, may convene public consultations or inter-agency meetings to ensure multi-
stakeholder input in the development of eCommerce policies.  
 
Government agencies and instrumentalities involved in the maintenance and development of 
the internet infrastructure of the Philippines, such as the Department of Information and 
Communication Technology (DICT) and the National Telecommunications Commission (NTC), 
shall cooperate with the Bureau on issues within their respective regulatory jurisdiction that affect the 
conduct of eCommerce.  
 
SEC. 8. Composition of the Bureau. – The Bureau shall be headed by a Director to be 
appointed by the President of the Philippines, as recommended by the Secretary of Trade and 
Industry.  


 
The Director shall oversee the day-to-day operations of the Bureau and shall be assisted by 
three (3) Assistant Directors each for policy and administration, enforcement, and operations. 
 
 
The Secretary of Trade and Industry shall determine the organizational structure and staffing 
pattern of the Bureau, subject to the approval of the Secretary of Budget and Management.  
 
SEC. 9. Subpoena – In the exercise of its powers under this Act, the Director of the Bureau 
shall have the power to issue summons, subpoena ad testificandum and subpoena duces tecum to alleged 
violations 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 and 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 and subpoena 
duces tecum refuses to comply with the same, despite due notice, shall be sufficient evidence to authorize 
the Regional Trial Court to cite the respondent with contempt. The Regional Trial Court shall likewise 
have the authority to issue any such order or relief, including imprisonment, in order to compel 
compliance with the subpoena ad testificandum and subpoena duces tecum. The Regional Trial Court may, in 
addition, also issue a subpoena ad testificandum and subpoena duces tecum addressed to their respondents 
identical to the one subject of the complaint.  
 
SEC. 10. Authority to Promulgate Rules and Regulations. – As the focal authority of the 
National Government for the development of policies and strategies towards the growth of 
eCommerce, the Bureau shall have 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 “Securities Regulation Code”, Republic Act No. 9239, otherwise known as the “Tourism 
Act of 2009”, Republic Act No. 10173, otherwise known as the “Data Privacy Act of 2012”, Republic 
Act No. 10667, otherwise known as the “Philippine Competition Act”, Republic Act No. 11127, 
otherwise known as “The National Payment Systems Act”, and Republic Act No. 11232, otherwise 
known as the “Revised Corporation Code”.  
 
The Bureau shall defer the exercise of rule-making power to the above-listed government 
agencies conferred by law with regulatory jurisdictions over eCommerce providers or platforms, unless 
the other agency declines to exercise its jurisdiction or does not act within a timely manner.  
 


SEC. 11. Registry of Online Business (ROB). – Within a period of one (1) year from the 
effectivity of this Act, the Bureau shall, in coordination with the DICT, establish, manage and maintain 
a ROB which shall provide consumers access to data and information of registered online business 
entities for purposes of verifying the validity, existence of and other relevant information pertaining 
to business entities.  
 
The DICT, in consultation with the DTI, the National Privacy Commission (NPC), the 
Philippine Competition Commission (PCC) and other concerned agencies, shall issue the rules and 
regulations to govern the development, management, operation, and maintenance of the ROB.  
 
CHAPTER 3 
SUPERVISION OF ECOMMERCE 
 
SEC. 12. Authority to Issue Take Down Order. – The Secretary of Trade and Industry, 
upon due notice and hearing regarding violations of this Act, the Consumer Act of the Philippines, or 
any other related trade or consumer laws, operating to the grave and irreparable prejudice of a 
consumer or a rights holder, shall have the power to issue an order directing that a website, webpage, 
online application, social media account, or other similar platform, be taken down, made inaccessible 
in the Philippines, or that no entity shall process any payment to any of those entities, or otherwise be 
rendered commercially inoperative, in order to abate any further violations.  
 
 
The said provisional take down order shall be directed against the owner or operator of the 
website, webpage, online application, social media account, as well as duly registered internet service 
provider, as well as payment gateways or channels. Copies of the order shall likewise be served on 
other government agencies whose cooperation would be required for the enforcement of the same.  
 
 
The order shall remain in effect for a maximum period of thirty (30) days unless otherwise 
extended or made permanent by a judicial order or decision.  
 
SEC. 13. Cease and Desist Order. – The Secretary of Trade and Industry, upon due notice 
and hearing, shall have the power to issue an order directing a website, webpage, online application, 
social media account, or other similar platform operating to the grave an irreparable prejudice of a 
consumer or a rights holder, to desist from marketing or offering goods or services that are accessible 
in the Philippines, and directing that no payments shall be made to any entity which is marketing or 
offering such goods or services in violation of this Act, the Consumer Act of the Philippines, or any 
other related trade or consumer laws. 
 
 
The cease-and-desist order shall remain in effect for a maximum of thirty (30) days unless 
otherwise extended or made permanent by a judicial order or decision.  
 


SEC. 14. Referral of Complaints. – The Bureau shall refer any complaint it receives involving 
violation of other laws committed in the course of eCommerce activities to the appropriate regulatory 
authority for action. If the complaint or violation pertains to the violation of the provisions of 
Republic Act No. 10175, otherwise known as the “Cybercrime Prevention Act of 2012”, the matter 
shall be referred to the Department of Justice (DOJ) for appropriate investigation. In cases where 
appropriate, the DTI may itself initiate the formal complaint with the appropriate regulatory authority 
or the DOJ. The Bureau shall track any such complaint or referral made to other authorities and 
coordinate with them to ensure that the said matters are duly resolved within a reasonable period.  
 
SEC. 15. Qualifications to Engage in eCommerce – The following are presumed legally 
authorized to engage in eCommerce in the Philippines in the ordinary course of their trade or business: 
  
(a) An individual who is duly licensed to do business as a single-proprietor with the DTI; 
 
(b) A juridical entity that is duly registered with the Securities and Exchange Commission 
(SEC), whether as a corporation, a one-person corporation, or as a partnership; 
  
(c) A cooperative that is duly licensed by the Cooperative Development Authority (CDA); 
 
(d) A foreign corporation that is duly licensed by the SEC to transact business in the 
Philippines; and 
 
(e) A non-resident foreign individual or juridical entity who has complied with Section 5 of 
this Act.  
 
A resident of the Philippines who engages, abets, or aids in unauthorized eCommerce activities 
in the ordinary course of trade or business shall be subject to any appropriate penalty as may be 
provided by law and shall in the same manner as the party engaged in such unauthorized eCommerce 
activities. 
 
A person who is authorized to engage in eCommerce in the Philippines and who facilitates 
the sale of a digital product or service by one who is not so authorized is deemed primarily liable for 
any obligation, damage, or fine, that may arise from the transaction or from the digital product.  
 
A non-resident of the Philippines who engages in eCommerce by purposefully availing of the 
Philippine market may not evade legal liability in the Philippines by virtue of non-residency or non-
registration, and shall be subject to the same obligations and liabilities arising from any transaction as 
those who are authorized to engage in eCommerce in the Philippines.  
 
SEC. 16. Business Regulation. –  
 


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


(h) Consumers must be given the correct and complete information about costs through a 
sale invoice or an official receipt detailing the particular costs of the good or service 
purchased, including shipping or delivery charges. Hidden charges or additional costs 
such as customs duties or currency conversion charges must be avoided; 
 
(i) 
The tracking of deliveries must be provided as part of services of online merchants or 
eCommerce platform operators and goods purchased must be delivered within the 
promised time and in described condition to the address provided by the consumer; 
 
(j) 
A cancellation option must be provided wherein consumers are given the opportunity 
to review their online purchases before finally confirming their purchase or withdrawing 
from a confirmed transaction in appropriate circumstances; 
 
(k) Consumer complaints must be dealt with through fair, easy, transparent and equitable 
mechanisms for consumer redress. If warranted, compensation, refund, repair, and 
replacement should be provided to the consumer;  
 
(l) 
Data privacy laws and regulations, including Republic Act No. 10173, otherwise known 
as the “Data Privacy Act of 2012,” and other similar laws and regulations shall be strictly 
complied with; 
 
(m) The safety and security of online payments and sensitive data shall be safeguarded 
through the use of secure technology and protocols including those evidenced by visible 
trust certificates or any appropriate 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 configuration that 
allow the consumer to choose whether they wish to receive or opt-out from commercial 
messages by email or electronic means, must be avoided; 
 
(o) The production of fake online reviews or spreading wrong information about 
competitors is improper and must be avoided;  
 
(p) Consumers must be educated about the risks of transacting through the internet and 
shall be provided competent and professional advice; and 
 
(q) Competing fairly with other businesses and adherence to competition principles and all 
applicable competition laws and regulations, including Republic Act No. 10667, 
otherwise known as the “Philippine Competition Act”, shall ensure the robust 
development of eCommerce and the economy.  
 


Whenever appropriate, the DTI shall issue rules and regulations corresponding to 
international trends, developments and best practices that it may adopt and implement.  
 
SEC. 18. Obligations of eCommerce Platform Operators.- eCommerce platform 
operators shall have the following obligations: 
 
a) Ensure that any commercial communication shall: 
 
(1) Be clearly identifiable as a commercial communication; 
 
(2) Clearly identify the person on whose behalf the commercial communication is made; 
 
(3) Clearly identify any promotional offer including any discount, premium, or gift, and 
ensure that any condition which must be met to qualify for it is easily accessible, and 
presented clearly and unambiguously; and 
 
(4) Clearly identify any promotional competition or game and ensure that any condition 
for participation is easily accessible and presented clearly and unambiguously; 
 
b) Require all online merchants, prior to the commencement of online transactions to submit 
the following to eCommerce platform operators: 
 
(1) Name of the online merchant; 
 
(2) Registration documents of the online merchant from the appropriate LGU, the DTI 
or SEC, and the Bureau of Internal Revenue (BIR); 
 
(3) Geographic address at which the online merchant may be served summons or any 
other judicial processes in its name and behalf; 
 
(4) Contact details of the online merchant, such as a mobile or landline number, and a 
valid electronic mail address, which makes it possible to immediately and easily contact 
and communicate with the online merchant in a direct and effective manner; and 
 
(5) Details of any professional body or similar institution with which the online merchant 
is registered, in instances when the online merchant exercises a regulated profession.  
 
c) Maintain a file of all online merchants registered under their platform containing the 
information provided by online merchants in paragraph (b) of this Section; 
 
d) Publish at a conspicuous part on their website, webpage, social media account, or other 
similar platform, the following general information: 
 
(1) Name of the online merchant; 
 
(2) Registration documents of the online merchant from the appropriate LGU, the DTI 
or SEC, and the BIR; 


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


merchant or other persons in earlier links of the chain of transactions, including 
the producer, unless the online merchant shows that: the online merchant was not, 
and could not reasonably have been aware of the statement in question; by the 
time of conclusion of the contract, the statement had been corrected; or the 
decision to buy the goods could not have been influenced by the statement.  
 
b) Be liable for any lack of conformity with the contract which exists at the time when: 
 
(1) The consumer or a person acting on behalf of the consumer has acquired the physical 
possession of the goods, or when the goods are handed over to the carrier chosen by 
the consumer, and that carrier was not proffered by the online merchant or where the 
online merchant proposes no means of carriage; 
 
(2) The goods have been installed by the online merchant or under the online merchant’s 
responsibility. The time at which the installation has been completed shall be 
considered the time when the consumer acquires physical possession of the goods; 
 
(3) The goods have been installed by the consumer in accordance with the online 
merchant’s installation instructions. The expiration of a reasonable period for 
installation, which shall not be more than thirty (30) days, shall be considered the time 
when the consumer acquires the physical possession of the goods.  
 
(4) The goods are incorrectly installed. Any lack of conformity resulting from the correct 
installation is regarded as lack of conformity with the contract of the goods if: 
 
(i) The goods were installed by the online merchant or under the online merchant’s 
responsibility; and  
 
(ii) The goods, intended to be installed by the consumer, were installed by the 
consumer and the correct installation was due to shortcoming in the installation 
instructions.  
 
c) Where the contract provides that the digital content or digital service is to be supplied or 
made accessible to the consumer over a period of time, the online merchant may modify 
the digital content or digital service beyond what is necessary to maintain the digital 
content or digital service in conformity with the contract, if the following conditions are 
met: 
 
(1)   The contract allows, and provides a valid reason for, such a modification; 
 
(2)   Such a modification is made without additional cost to the consumer; and 
 
(3)   The consumer is informed in a clear and comprehensible manner of the modification. 
 
d) Where the online merchant operates its own website, webpage, social media account, or 
any other similar platform, it shall publish on its homepage the following: 
 
(1) Name of the online merchant; 


(2) Registration documents of the online merchant from 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 process in its name and behalf; 
 
(4) Contact details of the online merchant, a mobile or landline number, and a valid 
electronic mail address, which makes it possible to immediately and easily contact 
and communicate with the online merchant and communicate in a direct and 
effective manner; and 
 
(5) Details of any professional body or similar institution with which the online merchant 
is registered, in instances when the online merchant exercises a regulated profession.  
 
Any agreement is valid only if, at the time of the conclusion of the contract, the consumer has 
knowledge of the specific condition of the goods and the consumer has expressly accepted this specific 
condition when concluding the contract.  
 
SEC. 20. Right to Redress by Online Merchants- Where the online merchant is liable to 
the consumer because of a lack of conformity with the contract resulting from an act or omission by 
a person in earlier links of the chain of transactions, the online merchant is entitled to pursue remedies 
against the person or persons liable in the chain of transactions.  
 
The person against whom the online merchant may pursue remedies and the relevant actions 
and conditions to exercise must be in accordance with the following: 
 
(a)  Repairs must be completed, and replacements delivered within a reasonable time and 
without any significant inconvenience to the consumer, taking into account the nature of 
the goods and the purpose for which the consumer acquired the goods; 
 
(b)  A proportionate reduction of the price or the termination of the contract, including 
restitution of the price, in the following instances: 
 
(1) A repair or replacement is impossible or unlawful; 
 
(2) The online merchant has not completed repair or replacement within a reasonable 
time; 
 
(3) A repair or replacement may cause significant inconvenience to the consumer; or 
 
(4) The online merchant has declared, or it is equally clear from the circumstances that 
the online merchant may not deliver the goods in conformity with the contract within 
a reasonable time;  
 
(c) The consumer is entitled to withhold the payment of any outstanding part of the price, 
until the online merchant has brought the goods into conformity with the contract; 
 


(d) The consumer is not entitled to a remedy to the extent that the consumer has contributed 
to the lack of conformity with the contract or its effects; 
 
(e) Where the online merchant remedies the lack of conformity with the contract by 
replacement, the online merchant may take back the replaced goods at the online 
merchant’s expense unless the parties have agreed otherwise after the lack of conformity 
with the contract has been brought to the online merchant’s attention by the consumer.  
 
(f) Where the consumer had installed the goods in a manner consistent with their nature and 
purpose, before the lack of conformity with the contract became apparent, the cost for 
the removal of the non-conforming goods and the installation of replacement goods, and 
all associated costs shall be for the account of the online merchant; 
 
(g) In case of goods that do not conform to the contract, the consumer is not liable to pay 
for using the non-conforming goods prior to its replacement; 
 
(h) The consumer may choose between repair and replacement unless the option chosen is 
impossible, unlawful or, imposes costs upon the online merchant that is disproportionate, 
taking into account all circumstances, including: 
 
(1)  The value of the goods, if the goods conformed to the contract; 
 
(2)  The significance of the lack of conformity with the contract; and 
 
(3)  Whether the alternative remedy may be completed without significant inconvenience 
to the consumer.  
 
The reduction of price should be proportionate to the decrease in the value of the goods which 
were received by the consumer compared to the value of the goods if it were in conformity with the 
contract.  
 
SEC. 21. Obligations of Ride Hailing Service Providers. – Ride hailing service providers 
shall require its consumers to register by showing valid proof of identity, email address or cellular 
phone number. Ride hailing service providers shall make the identity of its providers and support staff 
available to the rider at all times.  
 
SEC. 22. Obligations of Consumers of Ride Hailing Services.- It shall be unlawful for 
consumers of ride hailing services to: 
 
(a) Cancel confirmed orders for the delivery of food or grocery items when the said items 
have already been paid by or is already in the possession of the Ride Hailing Service 
Partner or is otherwise in transit tot eh 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) Unreasonable 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 cause civil injury towards the consumer.  
 
SEC. 23. Right to Terminate the Contract.-If the goods delivered do not conform to the 
contract, the consumer may exercise the right to terminate the contract by giving notice to the online 
merchant. Where the lack of conformity relates to only some of the goods delivered under the 
contract, the consumer may terminate the contract only in relation to the non-conforming good and 
any other goods which was acquired as an accessory to it.  
 
 
Where the consumer terminates a contract as a whole or in relation to some of the goods 
delivered: 
 
(a) The online merchant shall reimburse to the consumer the price paid without undue delay 
and in any event not later than fourteen (14) days from receipt of the notice; 
 
(b) Upon receipt of the reimbursement from the online merchant, the consumer shall return, 
at the online merchant’s expense, the goods without undue delay and in any event not 
later than fourteen (14) days from the receipt of the reimbursement; 
 
(c) Where the goods cannot be returned because of destruction or loss caused by the 
negligence of the consumer, the consumer shall pay to the online merchant the monetary 
value which the non-conforming goods would have had at the date when the return was 
to be made if they had been kept by the consumer without destruction or loss until that 
date, unless the destruction or loss has been caused by a lack of conformity with the goods 
contract, within fourteen (14) days from receipt of reimbursement; and 
 
(d) The consumer shall pay for a decrease in the value of the goods only to the extent that 
the decrease in value exceeds depreciation through regular use. The payment for decrease 
in value shall not exceed the price paid for the goods.  
 
SEC. 24. Damages.- The online merchant is liable for damages to the consumer due to the 
lack of conformity with the contract of the goods. The consumer may claim damages within two (2) 
years from the relevant time of establishing conformity.  
 
No damages may be recovered by virtue of this Act after the lapse of four (4) years from the 
time the conformity has been established.  
 
SEC.25. Online Dispute Resolution. – The DTI shall develop an online dispute resolution 
(ODR) Platform which is a single point of entry for consumers, online merchants, and eCommerce 
platform operators seeking out-of-court resolution of disputes. Where an eCommerce platform 
operator does not have an internal dispute resolution mechanism, all complaints through an ODR 


against an eCommerce platform operator shall be accompanied by proof that internal dispute 
resolutions were exhausted.  
 
(a) The ODR shall be an interactive website which may be accessed electronically and free of 
charge. The DTI, through the Bureau, shall be responsible for its operation, including its 
maintenance, funding and data security. The ODR platform muse 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. 7934, otherwise 
known as the “Consumer Act of the Philippines,” which includes the Fair Trade 
Enforcement Bureau (FTEB) of the DTI, the Department of Agriculture (DA), the 
Department of Tourism (DOT), and the Department of Health (DOH). The NPC and 
the Intellectual Property Office of the Philippines (IPOPHIL) shall also form part of the 
ODR network.  
 
(c) Each agency shall designate one ODR contact point and communicate its name and 
contact details to the DTI. The head of agency shall confer responsibility to the ODR 
contact points in ensuring that timely and competent support is provided to the resolution 
of disputes relating to complaints submitted through the ODR platform.  
 
(d) The ODR platform shall have the following functions: 
  
(1)  Provide an electronic form by means of which alternative dispute resolution (ADR) 
entities shall transmit the information; 
 
(2)  Provide a feedback system which allows the parties to express their views on the 
functioning of the ODR platform and on the ADR entity which handles their dispute; 
and 
 
(3)  Make publicly available general information on ADR as a means of out-of-court 
dispute resolution and information on ADR entities which are competent to deal with 
disputes.  
 
(e) The DTI shall ensure that the information in the website is accurate, up to date and 
provided in a clear, understandable and accessible way.   
 
(f) Government and private sector entities which provide ADR services which are competent 
to deal with disputes shall be registered electronically with the ODR platform.  
 
(g) Digital platforms and online retailers shall provide on their websites an electronic link to 
the DTI ODR platform on their homepage. That link shall be easily accessible to 
consumers.  
 


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


 
SEC. 27. Digital Payments. - Ecommerce platform operators and online merchants shall 
issue the appropriate paper or electronic invoices or receipts for all sales in accordance with relevant 
internal revenue laws and regulations. An electronic invoice or receipt shall have the same legal effect 
as a physical invoice or receipt. 
 
 
The DTI, through the Bureau, shall, in coordination with the Bangko Sentral ng Pilipinas (BSP), 
the BIR, the Bureau of Customs (BOC), the DOJ, the Philippine National Police, the DICT, and the 
NTC, issue rules and regulations to modernize and streamline the regulatory framework and 
encourage the adoption of electronic payment systems by the citizenry. The DTI shall also develop 
guidelines to protect merchants and consumers covering the various digital payment solutions.  
 
SEC. 28. Enforcement of Rights and Remedies.- Without prejudice to existing remedies 
provided under other laws, the enforcement of the rights and remedies established under this Chapter 
shall be through the following means: 
 
(a) If involving complaints by a consumer where no damages are sought, the complaints shall 
be treated as a consumer complaint with the DTI pursuant to Title V, Chapter III of 
Republic Act No. 7394, otherwise known as the “Consumer Act of the Philippines”, 
 
(b) If involving a claim for damages, the injured party shall seek recovery by filing a civil 
action with the appropriate trial court.  
 
CHAPTER 5 
ELECTRONIC COMMERCE PHILIPPINE TRUSTMARK 
 
SEC. 29. Ecommerce Philippine Trustmark.- To provide assurance of safety and security 
in internet transactions, the DTI shall lead the development of an eCommerce Philippine Trustmark 
hereinafter referred to as the, “Trustmark”, which may be established and operated by an industry-led 
private sector governance body. The DTI shall periodically assess the effectiveness of the industry-led 
Trustmark in promoting to the public reliable and trustworthy eCommerce services and may opt to 
assume operational control over the Trustmark if it determines that the industry-led private sector 
effort cannot sufficiently achieve the goals of the Trustmark.  
 
CHAPTER 6 
FINAL PROVISIONS 
 
SEC. 30. Penalties.- 
 
(a) Online merchants who fail to register either as a sole proprietor, one-person corporation, 
partnership, corporation, or cooperative, shall be punished with a fine equivalent to one 
hundred percent (100%) of the amount of the digital goods offered or sold based on the 
market price as determined by the Bureau, including confiscation of the goods as 
advertised; 
 
(b) eCommerce platform operators and online merchants found guilty of violating Section 
18, or Section 19 (d) of this Act shall be punished with a fine not less than Five hundred 


thousand pesos (Php 500,000.00) 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 Section21 of this Act shall be 
punished with a fine of up to Five hundred thousand pesos (Php 500,000.00) or the 
revocation of their licenses, or both, at the discretion of the courts.  
 
(d) Consumers found guilty of violating Section 22 (a) of this Act shall be punished with a 
fine of up to Fifty thousand pesos (Php 50,000.00) plus one hundred percent (100%) of 
the amount advanced by the ride hailing service partner, or both, at the discretion of the 
courts.  
 
(e) Consumers found guilty of violating Section 22 (b) and Section 23 (b) of this Act shall be 
punished with a fine of up to Fifty thousand pesos (Php 50,000.00), at the discretion of 
the courts.  
 
The application of these penalties shall be without prejudice to the liability of the offending 
party under other laws or regulations.  
 
SEC. 31. Oversight Committee.- There is hereby created a Congressional Oversight 
Committee, hereinafter referred to as the Internet Transactions Act Congressional Oversight 
Committee, to be composed of five (5) members from the Senate, which shall include the 
Chairpersons of the Senate Committees on Trade, Commerce and Entrepreneurship, Science and 
Technology, and Finance, and five (5) members from the House of Representatives, which shall 
include the Chairpersons of the House of Representatives Committees on Trade and Industry, ICT, 
and Appropriations. The Internet Transactions Act Congressional Oversight Committee shall be 
jointly chaired by the Chairpersons of the Senate Committee on Trade and Commerce and the House 
of Representatives Committee on Trade and Industry. It shall meet at least every quarter of the first 
two years and every semester for the third year after the approval of this Act to review the 
implementation of this Act, evaluate the Bureau on its functions as the lead agency, determine any 
inherent weaknesses in the law, and recommend the necessary remedial legislation or executive 
measures: Provided, That the Internet Transactions Act Congressional Oversight Committee shall cease 
to exist after five (5) years upon the effectivity of this Act.  
 
The Secretariat of the Internet Transactions Act Congressional Oversight Committee shall be 
drawn from the existing personnel of the Senate and House of Representatives Committees 
comprising the Internet Transactions Act Congressional Oversight Committee.  
 
SEC. 32. Implementing Rules and Regulations.- The Secretary of Trade and Industry 
shall, in consultation with the DICT, the BSP, the DOT, the Land Transportation Franchising and 
Regulatory Board (LTFRB), the Optical Media Board (OMB), the IPOPHIL, and other relevant 
government agencies and stakeholders, develop and issue the implementing rules and regulations of 
this Act.  
 
SEC. 33. Transitory Provisions.- To ensure the continued implementation of programs to 
promote eCommerce, the current eCommerce Division shall continue to exercise its functions until 
such time that the organizational structure and personnel of the bureau have been determined and 
approved.  


 
All affected officers and personnel of the eCommerce Division shall be absorbed by the 
Bureau without demotion in rank or diminution of salaries, benefits and other privileges.  
 
SEC. 34. Appropriations.- The amount necessary to carry out the provisions of this Act shall 
be included in the annual General Appropriations Act.  
 
SEC. 35. Separability Clause.-  If any provision or part of this Act is declared invalid or 
unconstitutional, such declaration shall not affect the validity of the remaining provisions of this Act.  
 
SEC. 36. Repealing Clause.- All laws, rules, and regulations, presidential decrees, letters of 
instruction and other presidential issuances which are incompatible or inconsistent with the provisions 
of this Act are hereby repealed, amended, or modified accordingly.  
 
SEC. 37. Effectivity.- This Act shall take effect fifteen (15) days after its publication in the 
Official Gazette or in at least one (1) newspaper of general circulation. It shall also be published online, 
through the Official Gazette Online (www.officialgazette.gov.ph), and on the website of the DTI 
(www.dti.gov.ph). 
 
Approved.