NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
S.B. No.
SENATE
154
ot lijc Sxfrd.irr
*22 JUL'7 P 3 57
fttCElVEDBY;
Introduced by SEN. WIN GATCHALIAN
AN ACT-
PROTECTING CONSUMERS AND MERCHANTS ENGAGED IN INTERNET 
TRANSACTIONS, CREATING FOR THIS PURPOSE THE E-COMMERCE
BUREAU, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER
PURPOSES
EXPLANATORY NOTE
One of the positive consequences of the COVID-19 pandemic has been the 
exponential growth in e-commerce transactions. Google and Temasek's 2021 e- 
Conomy SEA Report1 emphasizes the significant growth of the country's internet 
economy from USD9 billion in Gross Merchandise Value (GMV) in 2020 to USD17 billion 
in GMV in the succeeding year. This was driven by a double digit growth in e- 
commerce transactions from USDS billion in GMV in 2020 to USD12 billion in GMV in 
2021, and is projected to grow to USD26 billion in GMV in 2025. Notably, the 
Philippines has the lowest digital consumer2 penetration in the region at 68%, lower 
than Singapore (97%), Thailand (90%), Malaysia (81%), Indonesia (80%) and 
Vietnam (71%). This, on the other hand, tells us of the huge potential for growth in 
e-commerce transactions.
However, with the rapid growth of e-commerce transactions, several 
unscrupulous and abusive traders have ventured to exploit digital consumers through
1 https://services.google.com/fh/files/misc/philippines_e_conomy_sea_2021_report.pdf
2 Internet users who have bought something online at least once


this new venue of trading. Meager regulatory controls in a borderless environment 
where products can only be seen through pictures or videos, its use and functionality 
can only be assessed through product description and representations, and personal 
Information needs to be given to complete the transaction expose consumers to 
various risks related to product quality, functionality, reliability, data privacy, security, 
fraud and misrepresentation, among others.
In fact, an increasing number of complaints have been reported by the 
Department of Trade and Industry (DTI), which suggests the absence or inadequacy 
of grievance mechanisms to address consumer concerns. In 2020, 15,967 complaints 
on online transactions were received by the DTI compared to 2,457 complaints in the 
previous year. Even though the number of complaints received by DTI declined to 
7,470 as of August 2021, it remains to be double of that received by DTI in 2019.
With the objective of harnessing the full potential of the Philippine e-commerce 
market, we have to strengthen digital consumer confidence in e-commerce 
transactions by ensuring that adequate grievance mechanisms are in place, rights and 
obligations of the stakeholders have been set and the role of the regulatory authority 
over digital marketplaces and online digital platforms have been set.
Thus, the proposed measure paves the way for the establishment of a singular 
office, the E-commerce Bureau under the Department of Trade and Industry, that will 
act as a one-stop shop for consumer complaints on unresolved e-commerce 
transactions and compliance monitoring, among others. It mandates the DTI to 
exercise primary jurisdiction over e-marketplaces, e-retailers, online merchants, and 
other digital platforms that sell or allow the sale or exchange of goods. It defines the 
obligations of e-marketplaces and other digital platforms, e-retailers and online 
merchants as well as provides for the rights and obligations of online consumers. It 
also enumerated circumstances when the e-marketplace or e-commerce digital 
platform will be solidarily liable with its listed online seller affersjue notice and hearing.
In view of the foregoing, approval of this bill is ^rneOTy sought.


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
S.B. No.
SENATE
154
•22 JUL-7 P3 57
RECElVtS E':
Introduced by SEN. WIN GATCHALIAN
AN ACT
PROTECTING CONSUMERS AMD MERCHANTS ENGAGED IN INTERNET 
TRANSACTIONS, CREATING FOR THIS PURPOSE THE E-COMMERCE 
BUREAU, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER
PURPOSES
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled: 
|
SECTION 1. Short Title. - This Act shall be known as theInternet Transactions
Act'.
SEC. 2. Declaration of Policy. - It is the policy of the State to promote the 
growth of electronic commerce (e-commerce) in the country by building mutual trust 
between online sellers and consumers. The State recognizes the 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
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the creation of new products, services, business models and processes. Towards these
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ends, the State shall ensure sustainable and fair e-commerce business practices
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through transparent and appropriate information disclosure, secured online
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transactions, the maintenance and protection of data privacy rights, the promotion of
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innovation, competition and use of fair advertising practices, and an emphasis on the


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paramount importance of product safety. Likewise, the State shall provide
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meaningful access to effective mechanisms for the resolution of any and all disputes
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involving e-commerce, including alternative dispute resolution methods.
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SEC. 3. Definition of Terms. - As used in this Act:
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(a) 
Compatibility refers to the ability of the digital product to function with
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hardware or software with which digital products of the same type are
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normally used, without the need for any conversion;
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(b) 
Consumer-to-consumer transactions (C2Cs) refer to isolated
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transactions of an individual or group of individuals with another
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individual or group of individuals, done for personal, family, or household
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purposes, and not done In the ordinary course of business of any of the
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parties to the transaction;
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(c) 
Goodsto tangible products which are primarily for personal, family,
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household, or agricultural purposes which include, but are not limited to,
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food, drugs, cosmetics, and devices;
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(d) 
Delivery Carrier refers to any natural or juridical person engaged in the
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business of providing personal delivery services of food, goods,
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documents, or any other item from one person to another for
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compensation;
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(e) 
Devices refer to equipment or mechanism designed to serve a special
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purpose or perform a special function;
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(f) 
Digital Platforms refer to internet intermediaries or businesses such as,
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but not limited to, e-marketplaces, online delivery enterprises,
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transportation booking, tourism booking, entertainment website and
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services, music products and services, social media, advertising,
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education and learning products, health websites and applications, labor
2g 
services, among others, that match, connect, or facilitate interactions
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and transactions by and between any two or more parties to enable
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them to sell, exchange, share, or transact in any convenient manner,
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goods, services and digital products;


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(g) 
Digital Products refer to goods and services produced and supplied in 
digital form such as, but not limited to, video, audio, applications, digital 
games, and any and all other software that allows the consumer to 
create, process, download, store, or access digital content, or allows the 
sharing of the same, or any such other interaction with digital content 
provided by other users of the service;
(h) 
E-commerce Philippine Trustmark refers to the mark approved by the E- 
commerce Bureau signifying the legitimacy and verified status of an 
online merchant and provides for consumer protection in online or e- 
commerce transactions and, whenever applicable, accountability in case 
of consumer complaints;
(i) 
E-commerce or Online Transaction refers to an exchange or transfer of 
goods and services using the internet;
(j) 
E-Marketpiace refers to a digital platform such as, but not limited to, 
eBay, Amazon, Shopee, Lazada, Carousell, Facebook Marketplace, 
among others, whose business is to connect online consumers and 
online merchants, facilitating the exchange of information regarding 
products or services for the purpose of entering into an e-commerce 
transaction such as the purchase of goods and services, tangible or 
intangible, and which may or may not provide information or services 
about payments and logistics;
(k) 
E-Retaiier refers to a natural or juridical person engaged in selling 
products or services, tangible, or intangible, directly to online consumers 
through his own website or any other digital platform;
(l) 
Interoperability refers to the ability of the digital product to function with 
hardware or software different from those with which the digital product 
of the same type is normally used;
(m) 
Online Consumer refers to a natural or juridical person who may be a 
purchaser, lessee, recipient, or a prospective purchaser, lessor, or 
recipient, of goods and digital products sold, exchanged, leased, or 
transacted over the internet;


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(n) 
Online Delivery Partner to a delivery carrier that performs delivery 
services through an online delivery service platform under contract with 
a digital platform or an E-marketplace;
(o) 
Online Delivery Service refers to the delivery of food, parcels, or any 
other item, contracted through a digital platform which may be an 
application, website, webpage, social media account, or any similar 
means, operated by an online delivery service platform;
(p) 
Online Delivery Service Platform refers to any natural or juridical person 
engaged in providing online delivery service for a fee through any digital 
platform; and,
(q) 
Online Merchant refers to any natural or juridical person selling or 
manufacturing, or otherwise offers for sale or manufacture, any goods 
or digital products in the ordinary course of business, either through an 
e-marketplace, social media, website, application, or via any digital 
platform over the internet.
SEC. 4. Scope and Coverage. - This Act shall apply to the sale or exchange of 
goods, services or digital products in the course of trade or business whether between 
businesses, households, individuals, and other public or private organizations, 
conducted over the internet. Consumer to consumer internet transactions, and 
transactions involving financial products and services defined in Republic Act No. 
11765, otherwise known as the "Financial Products and Services Consumer Protection
Act", shall not be covered under this Act.
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. E-commerce Bureau. - To ensure the attainment of the objectives of 
this Act and promote the growth of eCommerce, the E-commerce Division created 
through DTI Department Order No. 09-16 in accordance with Section 29 of Republic 
Act No. 8792 or the Electronic Commerce Act of2000' is hereby abolished, and an


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E-commerce Bureau under the Department of Trade and Industry (DTI) shall be
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created to perform the following functions:
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(a) 
Implement, monitor, and ensure compliance of the provisions of this Act;
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(b) 
Mandate entities engaged in e-commerce to register with the Online
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Business Registry;
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(c) Formulate policies, plans, and programs to ensure the robust and
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dynamic development of e-commerce;
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(d) 
Identify regulatory gaps affecting the e-commerce sector that are not
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sufficiently addressed by this Act or by existing laws or regulations, and
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recommend appropriate executive or legislative measures that foster the
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growth of the sector;
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(e) 
Act as a virtual one-stop shop tasked to receive and address consumer
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complaints on unresolved internet transactions between parties,
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facilitate the speedy resolution of consumer complaints by the respective
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government agency having jurisdiction over the same, and track
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complaints referred to or initiated by it motu proprio to ensure the
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speedy and appropriate action by the agency to which such matters
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pertain or otherwise have been referred to;
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(f) 
Coordinate with, or petition whenever appropriate, any entity,
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government agency, or instrumentality to act on any matter related to
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e-commerce consumer complaints;
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(g) 
Monitor internet market behavior, consult with stakeholders and
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concerned agencies to better understand e-commerce transactions, and
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prepare and conduct periodic studies on the same; and
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(h) 
Collaborate with the various departments of the national government
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and the local government units (LGUs) in the implementation of projects
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and programs promoting e-commerce, including information and
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education, as well as in ensuring a policy regime that is proactive;
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SEC. 6. Composition of the Bureau. - The Bureau shall be headed by a Director
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who must have sufficient knowledge and background in e-commerce and online
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transactions, and all the laws and processes related thereto. The Director shall be


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assisted by three (3) Assistant Directors: for policy and administration, for 
enforcement, and for operations.
The Director and all Assistant Directors shall be appointed by the President, 
upon the recommendation of the DTI Secretary, and must be career executive service 
officers with at least five (5) years of government service and such relevant experience 
in e-commerce development.
The DTI Secretary shall determine the organization structure and staffing 
pattern of the Bureau, subject to the approval of the Department of Budget and 
Management Secretary.
SEC. 7. Online Business Registry (OBR). - Within a period of one (1) year from 
the effectivity of this Act, the Bureau shall, in coordination with the Department of 
Information and Communications Technology (DICT), establish, maintain, and 
manage an Online Business Registry (OBR) which shall provide consumers access to 
data and information of e-marketplaces, e-retailers, online merchants, and such other 
digital platforms engaged in the sale of goods, services, and digital products for 
purposes of verifying their existence, confirming their identity, and other such relevant 
or needed information
SEC. 8. Regulatory Jurisdiction of the DTI. - For purposes of this Act, the DTI 
shall exercise primary regulatory jurisdiction over e-marketplaces, e-retailers, online 
merchants, and other digital platforms that sell or allow the sale or exchange of goods, 
services or digital products, and are purposely availing of the Philippine market.
SEC. 9. Authority to Issue Take-Down Order. — Whenever the Bureau finds, by 
its own initiative or upon petition of a consumer or other concerned party, that the 
online sale of goods, services or digital products is violative of this Act, the '"'Consumer 
Act of the Phiiippined', or any other related laws, the DTI Secretary, in order to abate
any further violations, shall have the power to:
(a) Impose an order, as a form of penalty, directing that the violative online 
product listing, webpage, business page, application, social media post, 
profile, website or when applicable, any platform of the online merchant


1 
or e-retailer related to the illegal product, be taken down, or the same
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be made inaccessible in the Philippines, whether temporarily or
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permanently; 
and
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(b) 
Issue an advisory that no entity shall process any payments made to any
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violating entity to ensure that the latter shall be rendered commercially
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inoperative.
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Provided that, the DTI Secretary may immediately issue a provisional take-
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down order to prevent grave and irreparable injury to the public, when the following
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conditions are present:
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(a) 
When the DTI Secretary finds that a good, service or digital product is
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imminently injurious, unsafe, or dangerous; or
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(b) 
When the seller under investigation has been previously penalized under
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this section.
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Whenever the DTI Secretary orders the immediate take-down, recall, ban, or
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seizure of an illegal product from public online sale or distribution, the seller,
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distributor, manufacturer, or producer thereof shall be given an opportunity to be
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heard within forty-eight (48) hours from the issuance of such order.
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The take-down order, whether imposed as a penalty or provisionally granted,
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shall be directed against the e-retailer, online merchant, or the owner or operator of
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the e-marketplace or digital platform. Copies of the order shall likewise be served on
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entitles whose cooperation would be required for its enforcement such as but not
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limited to the duly registered internet service provider involved, related payment
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gateways, and other government agencies.
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The DTI Secretary may revoke the take down order after hearing the
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explanation submitted by the seller, distributor, manufacturer, or producer; in which
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case the order revoking the take down order shall be served on the entities mentioned
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and in the same manner stated in the preceding paragraphs.
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SEC. 10. Referral of Complaints. - The Bureau shall refer any complaint it
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receives Involving violation of other laws committed in the course of an online or e-
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commerce transaction to the appropriate regulatory authority for action. The Bureau
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shall track the complaints or referrals made to other authorities and coordinate with


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them to ensure that matters are duly resolved in accordance with Republic Act No.
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11032, otherwise known as the xxEase of Doing Business and Efficient Government
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Service Deiivery Act of 2018"
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SEC. 11. Obiigations of E-Marketpiaces and other Digitai Piatforms-
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(a) 
E-Marketplaces and e-commerce digital platforms shall ensure that their
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e-commerce transactions:
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(i) Are clearly identifiable as an e-commerce transaction;
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(ii) Identify the person or persons on whose behalf the e-commerce
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transaction is made; and
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(iii) Identify any promotional offers including discounts, premiums,
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gifts, and any promotional game or competition, and ensure that
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any condition to qualify for them are easily accessible, and clearly
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set forth.
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(b) 
E-Marketplaces and e-commerce digital platforms shall require all online
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merchants to submit the following, prior to listing with their platforms:
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(i) Name of the online merchant accompanied by at least two (2)
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valid government identification cards or registration documents;
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(ii) Geographic address where the online merchant is located;
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(iii) Contact details of the online merchant which must include 
a
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mobile or landline number and a valid e-mail address; and
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(iv) In instances when the online merchant exercises a regulated
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profession, the online merchant shall be required to submit details
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of membership in any professional body or similar relevant
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institution with which the online merchant is registered or
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otherwise is a member of.
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Except for the government identification cards or registration
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documents mentioned under Section ll(b)(i), the information required
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under this paragraph shall be published or posted on the e-commerce
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platforms for transparency.
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(c) E-Marketplaces and e-commerce digital platforms are mandated to
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maintain a list of all online merchants registered under their platform.
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which shall be regularly verified. This list shall be submitted to the
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Bureau and updated every six (6) months.
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(d) 
E-Marketplaces and e-commerce digital platforms shall not allow the sale
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of regulated goods such as, but not limited to, chemicals, food, and
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drugs without verifying the online merchant's compliance with regulatory
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permits and licenses, sale procedures and limitations, and other relevant
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conditions for the sale as may be imposed by any law or local
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government regulation. Upon its discovery of non-compliance by an
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online merchant registered with its platform, e-marketplaces and e-
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commerce digital platforms shall report such fact to the Bureau within
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fifteen (15) days from discovery thereof.
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SEC. 12. Obligations of E-Retaiiers and Online Merchants - An e-retailer or
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online merchant of goods, services or digital products, as defined under this Act, shall
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exercise the following responsibilities:
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(a) 
Ensure that the goods are received by the online consumer:
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(i) In the same condition, type, quantity, and quality as described
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and stated and, in applicable circumstances, possess the
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functionality, compatibility, interoperability, and other features
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required by the sales contract, fit for the purpose for which it was
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intended by its nature;
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(ii) In the same condition, type, quantity and quality of a sample,
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picture, or model of the goods shown by the e-retailer or online
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merchant upon request of the online consumer, or of additional
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descriptions or specifications provided by the e-retailer or online
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merchant upon inquiries made by the online consumer; and
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(lii) It must also be fit for the particular purpose for which the online
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consumer requires them, as communicated to the e-retailer or
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online merchant at the time of the perfection of the contract, and
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which the e-retailer or online merchant has accepted;
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(b) All the goods shall:


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(C)
(d)
(i) 
Be delivered together with its accessories including ail other 
packaging, installation inclusions, any user manual or other 
instructions as advertised or as described, if applicable, with 
relevant information stated in the packaging, printed or written 
in Filipino and/or English; and
(ii) 
Possess qualities and performance capabilities including 
functionality, compatibility, and interoperability that are 
standard and normal in goods of the same type which the 
consumer may expect given its nature and considering any 
public statement or testimonial made by or on behalf of the e- 
retailer, online merchant, or other persons in earlier links of the 
chain of transactions, including the producer, unless the e- 
retailer or online merchant shows that:
1. 
The e-retailer or online merchant was not, and 
could not have been, reasonably aware of the 
statement in question;
2. 
By the time of conclusion of the contract, the 
statement had already been corrected; or
3. 
The decision to buy the goods could not have been 
influenced by the statement.
Where the e-retailer or online merchant is a digital product provider, it 
shall ensure that the digital product has the qualities and performance 
features, in relation to functionality, compatibility, interoperability, 
accessibility, continuity, and security, which are standard and normal for 
a digital product of the same type as advertised or described.
Where the contract provides that the digital product is to be supplied or 
made accessible to the online consumer over a period of time, the e- 
retailer or online merchant may modify the digital product beyond what 
is necessary for its maintenance, if the following conditions are met:
(i) The contract allows, and provides a valid reason for, such a 
modification;
10


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(ii) 
Such a modification is made without additional cost to the
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consumer; and
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(iii) The online consumer is informed in a clear and comprehensible
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manner of the modification.
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(e) Where the transaction involves a digital platform that offers a
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performance of a service, the e-retailer or online merchant shall ensure
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the completion of the same in accordance with the contract and as
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advertised.
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(f) 
An e-retailer or an online merchant that operates its own digital platform
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shall publish on its homepage the following:
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(i) 
Name of the e-retailer or online merchant;
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(ii) 
Geographic address where the e-retailer or online merchant is
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located; and
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(iii) 
Contact details of the e-retailer or online merchant which must
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include a mobile or landline number and a valid e-mail address
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to ensure direct and efficient communication with consumers.
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The foregoing shall be submitted to the Bureau and must be
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accompanied by at least two (2) government identification cards or
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registration documents as valid proof of identity.
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(g) 
Where the e-retailer or online merchant is an online delivery service
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platform, it shall require its consumers to register by showing valid proof
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of identity, and an e-mail address or mobile phone number.
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(h) 
E-retailers or online merchants shall issue paper or electronic invoices or
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receipts for all sales. An electronic invoice or receipt shall have the same
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legal effect as a paper invoice or receipt.
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Any agreement between the e-retailer or online merchant and the online
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consumer is valid only if, at the time of the conclusion of the contract, the online
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consumer has knowledge of the specific condition of the goods, services or digital
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products and has expressly accepted such condition.
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SEC. 13. Rights and Obligations of Online Consumers. - 
(a) When the online merchant is liable to the consumer because of a lack of 
conformity with the contract, the consumer may pursue any of the 
following remedies:
(i) 
A repair or replacement of the goods or digital product which 
must be completed within a reasonable time and without any 
significant inconvenience to the consumer, taking into account 
the nature and the purpose for which the consumer acquired 
such;
(ii) 
A proportionate reduction of the price if the consumer chooses 
to keep the good or digital product despite the lack of 
conformity with the contract, or the termination of the contract 
with restitution of the price, in the following instances:
1. 
When repair or replacement Is impossible or 
unlawful;
2. 
The online merchant has not completed repair or 
replacement within a reasonable time;
3. 
When repair or replacement may cause significant 
Inconvenience to the consumer; or
4. 
When the online merchant has declared, or it is 
equally clear from the circumstances, that the online 
merchant may not bring the goods or digital product 
In conformity with the contract within a reasonable 
time;
(HI) When applicable, the consumer is entitled to withhold the 
payment of any outstanding part of the purchase price until 
the online merchant has brought the goods or digital product 
in conformity with the contract;
(iv) The consumer is not entitled to a remedy to the extent that 
the consumer has contributed to any ambiguity or lack of 
conformity with the contract or its effects;
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(b)
(c)
(v) 
When the online merchant remedies the lack of conformity 
with the contract by replacement, the online merchant is 
entitled to the return of the replaced goods or digital products 
at the online merchant's expense, unless otherwise agreed 
upon by the parties;
(vi) 
When the consumer had installed the goods or digital 
products in a manner consistent with their nature and 
purpose, before the lack of conformity with the contract 
became apparent, the costs for the removal of the non- 
conforming goods or digital products, the installation of the 
replacement and all associated costs shall be for the account 
of the online merchant;
(vii) 
In case of goods or digital products that do not conform with 
the contract, the consumer is not liable to pay for the use of 
the non-conforming goods or digital products prior to its 
replacement;
(vili) The consumer may exercise the choice in the alternative 
between repair or replacement of the purchased good or 
digital product, unless such choice is impossible, in which case 
the consumer may choose to terminate the contract and 
return the item, and the online merchant shall refund the full 
amount paid by the consumer.
Consumers of online delivery service platforms may hold delivery carriers 
liable for damages if the latter fail to exercise due diligence and 
reasonable care over the goods transported by them.
To protect the rights of delivery carriers, it shall be unlawful for 
consumers to:
(i) Cancel confirmed orders for the delivery of food or grocery 
items when the said items have already been paid for by, or 
Is already in the possession of the online delivery partner or 
delivery service, or is otherwise in transit to the consumer 
unless;
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(ii)
(iii)
(iv)
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The consumer uses credit card services as a means 
for the payment of the service and the payment will 
still be credited notwithstanding the cancellation;
2. 
The consumer remits the reimbursement and 
payment to the online delivery partner as a pre­
condition for the cancellation of the order; or
3. 
The delivery of goods will be or was delayed for at 
least one (1) hour from the expected time of arrival 
due to the fault or negligence of the online delivery 
partner or delivery service.
Use the personal information of another person such as, but 
not limited to, name, address, and contact number when 
registering in online delivery service platforms;
Place an order under the name of another person, unless the 
latter consented to the same, or placing an order using a 
fictitious name and/or address; or
Unreasonably shame, demean, embarrass, or humiliate online 
delivery partners.
SEC. 14. Right to Terminate the Contract. - If the goods or digital products 
delivered do not conform to the contract, the consumer may exercise the right to 
terminate the contract by giving notice to the online merchant. Where the lack of 
conformity relates to only some of the goods or digital products delivered under the 
contract, the consumer may terminate the contract only in relation to the non- 
conforming goods or digital products and any such accessory acquired as an adjunct 
to the same.
When the consumer terminates a contract as a whole or in relation to some of
the non-conforming goods or digital products delivered:
(a) The online merchant shall reimburse to the consumer the price paid not 
later than fourteen (14) days from receipt of the notice and without 
undue delay whatsoever;
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(b) 
Upon receipt of the reimbursement from the online merchant, the 
consumer shall return, at the online merchant's expense, the goods or 
digital products not later than fourteen (14) days from the receipt of the 
reimbursement and without undue delay whatsoever, provided that the 
online merchant may waive this requirement at any time;
(c) 
When the goods or digital products cannot be returned because of 
destruction or loss, the consumer shall pay the monetary value which 
the non-conforming goods or digital products would have had at the 
date when the return was to be made had they been kept by the 
consumer without destruction or loss until that date, unless the 
destruction or loss has been caused by a lack of conformity of the goods 
or digital products with the contract; and
(d) 
The consumer shall pay for a decrease in the value of the goods or digital 
products only to the extent that the decrease in value exceeds 
depreciation through regular use. The payment for decrease in value 
shall not exceed the price paid for the goods or digital products.
SEC. 15. Damages. - The online merchant is liable for damages to the 
consumer due to the lack of conformity with the contract of the goods or digital 
products: Provided, that such becomes apparent within six (6) months from receipt of 
the said goods or digital product.
No damages may be recovered from this Act after the lapse of two (2) years 
from the time the consumer receives the goods or digital products.
SEC. 16. Online Dispute Resolution. - The DTI shall develop an Online Dispute 
Resolution (ODR) platform which is a single point of entry for parties to e-commerce 
transactions that are seeking out-of-court resolution of disputes when the platforms 
or merchants fail to resolve or assist consumers with their concerns.
(a) The ODR shall be an interactive website accessible electronically and 
free of charge. The DTI, through the Bureau, shall be responsible for its 
operation, including its maintenance, updating, funding, and data
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security. The ODR platform must be user-friendlyf easily accessible, and 
data privacy compliant.
(b) 
The DTI shall establish a network of ODR contact points from different 
government agencies involved in consumer complaints as specified in 
Republic Act No. 7394, otherwise known as the Consumer Act of the 
Philippine^', including the Department of Agriculture (DA), Department 
of Tourism (DOT), and the Department of Health (DOH), among others. 
The Intellectual Property Office of the Philippines (IPO) shall also be part 
of the ODR network.
(c) 
Each agency shall have a designated ODR contact point whose name 
and contact information are to be submitted to the DTI. The head of the 
agency shall confer responsibility to the respective ODR contact points 
to ensure that timely and competent support is provided to the resolution 
of complaints and disputes submitted through the ODR platform.
(d) 
The ODR platform shall have the following functions:
(i) 
Provide an electronic form where alternative dispute 
resolution entitles shall transmit the information;
(ii) 
Provide a feedback system that will allow parties to express 
their views on the efficiency of the ODR platform and on the 
response of the entity handling their dispute; and
(iii) 
Make available to the public, general information on 
alternative dispute resolution as a means of out-of-court 
dispute resolution and the entities which are competent to 
deal with such disputes.
(e) 
The DTI shall ensure that the information on the website is accurate, up 
to date and accessible.
(f) 
Online e-commerce platforms and online merchants shall provide on 
their websites an electronic link to the DTI-ODR platform on their 
homepage.
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SEC. 17. Liability. - An e-marketplace or e-commerce digital platform shall be
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solidarily liable with its listed online merchant, after due notice and hearing, under the
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following circumstances;
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(a) 
If it fails to provide an accessible and responsive mechanism for
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consumers to dispute, be refunded, or validly cancel orders. For this
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purpose, refunds to cash-paying customers should also be in cash;
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(b) 
When the online e-commerce platform fails to properly resolve disputes,
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refunds, or valid cancellation of orders of consumers within a reasonable
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time;
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If it knows or should have known that the goods, services or digital
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products sold are illegal, do not comply with existing laws, or otherwise
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Infringe on intellectual property rights;
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(d) 
If it fails to take necessary measures to prevent or curtail the sale or
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distribution of the products which are illegal, do not comply with existing
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laws, or otherwise infringe on intellectual property rights within a
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reasonable period.
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Liability shall not attach to the e-marketplace or e-commerce
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digital platform in instances when the illegality or infringing nature of
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the goods, services or digital products advertised, offered for sale, or
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sold through e-marketplace or e-commerce digital platform is not
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apparent, provided that:
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(i) 
The online e-commerce platform offers a simple and
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straightforward procedure for consumers, rights-holders, or
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online merchants to report the existence of illegal or infringing
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goods, services or digital products in the platform;
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(ii) 
Consumers, rights-holders, and online merchants are properly
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informed on the policy implementing such procedure;
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(iii) 
Any report of illegal or infringing goods, services or digital
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products shall be expeditiously acted upon through
investigations, suspensions, and take-down measures, if
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necessary, by the platform;
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(b)
(e) 
If the online e-commerce platform fails to comply with the requirements 
of this Act involving the collection, publication, and submission of online 
merchant information; and
(f) 
If the e-commerce platform operator fails, after notice, to act 
expeditiously to remove, or disable access to, goods, services or digital 
products appearing on their platform that they know or should have 
known to be non-compliant with law, or otherwise infringe on intellectual 
property rights.
SEC. 18. E-commerce Philippine Trustmark. - To provide assurance of safety 
and security in transactions over the internet, an e-commerce Philippine Trustmark
shall be developed for online merchants.
(a) A Trustmark and Trustmark Portal shall be created which shall be 
administered and managed by the DTI.
A Trustmark on the website of an online merchant signifies that the 
company is committed to guarantee honesty, fairness, and integrity in 
dealing with its customers, and is committed to refrain from engaging in 
any illegal, fraudulent, unethical, or unfair business practices.
In case of a complaint involving the purchase of their products or 
services, online merchants with the Trustmark shall give consumers the 
option of filing claims through the Trustmark portal, if the online 
merchant's customer care service has not been able to resolve the issue. 
The Trustmark shall be linked to the DTTs online dispute resolution.
The Trustmark shall be considered an official document for purposes of 
the crime of falsification as defined under the Revised Penal Code and 
other related laws. Any E-marketplace, e-retailer, online merchant, or e- 
commerce digital platform that is found guilty of falsifying or forging the 
E-commerce Philippine Trustmark, shall be subjected to a take-down 
order in accordance with Section 9 of this Act.
SEC. 19. Implementing Agencies,, Rules, and Regulations. - Within sixty (60) 
days from the promulgation of this Act, the necessary rules and regulations shall be
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formulated and issued by the DTI, in consultation with the DICT, IPO, DOH and other 
relevant government agencies necessary for the proper implementation of this Act.
SEC. 20. Jurisdiction of Other Agencies. - The agencies mentioned in Section 
19 of this Act shall continue to exercise the powers and duties provided to them under 
existing laws, unless repealed or modified accordingly.
SEC. 21. Penaities. -
(a) 
Any e-marketplace, e-retailer, online merchant or e-commerce digital 
platform that Is found guilty of any deceptive, unfair or unconscionable 
sales act or practice as provided for under Republic Act No. 7394 or the
Consumer Act of the Phiiippined’ done through the internet, shall be 
subjected to a take-down order in accordance with Section 9 of this Act. 
It shall also be punished with a fine of not less than Fifty Thousand Pesos 
(PhP50,000.00) but not more than Five Hundred Thousand Pesos 
(PhP500,000.00), or an imprisonment of not less than five (5) months 
but not more than (1) year, or both, upon the discretion of the court.
(b) 
Any e-marketplace, e-retailer, online merchant or e-commerce digital 
platform that sells or allows the sale of illegal, or imminently injurious, 
unsafe or dangerous goods, services or digital products shall be subject 
to a take-down order in accordance with Section 9 of this Act. It shall 
also be punished with:
(i) 
Imprisonment of one (1) year to three (3) years plus a fine 
ranging from Fifty Thousand Pesos (PhP50,000.00) to One 
Hundred Fifty Thousand pesos (PhP150,000.00) for the first 
offense.
(ii) 
Imprisonment of three (3) years and one (1) day to six (6) 
years plus a fine ranging from One Hundred Fifty Thousand 
Pesos (PhP150,000.00) to Five Hundred Thousand Pesos 
(PhP500,000.00) for the second offense.
(iii) 
Imprisonment of six (6) years and one (1) day to nine (9) 
years plus a fine ranging from Five Hundred Thousand Pesos
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(PhP5007000.00) to One Million Five Hundred Thousand Pesos 
(PhPl75007000.00) for the third and subsequent offenses.
(c) 
Any e-retailer or online merchant who shall willfully or unreasonably 
refuse to provide the remedies under Section 13 (a), shall be subjected 
to a take-down order in accordance with Section 9 of this Act, and be 
punished with a fine not less than One Hundred Thousand Pesos 
(PhP100/000.00), but not more than Three Hundred Thousand Pesos 
(PhPSOO.OOO.OO), in addition to the payment of the actual value of the 
goods or digital products involved.
(d) 
Any person who shall violate Section 13 (c) of this Act, shall be punished 
with a penalty of arresto mayor or a fine not exceeding One Hundred 
Thousand Pesos (PhP100,000), without prejudice to any other available 
remedies under existing laws.
In case any violation of this Act is committed by a partnership, corporation or 
any juridical entity, the President and the General Manager, who shall consent to, or 
shall knowingly tolerate such violation shall be criminally liable.
SEC. 22. Appropriations. - The amount of Fifty Million Pesos 
(PhP50,000,000.00) for the initial operation of the Bureau is hereby appropriated out 
of any funds in the National Treasury not otherwise appropriated. Thereafter, such 
sum as may be necessary for the continued implementation of this Act shall be 
included in the annual General Appropriations Act.
SEC. 23. Separabiiity Ciause. - Should any provision or part of this Act be 
declared unconstitutional or invalid, the other provisions and parts hereof, insofar as 
they are separable from the invalid ones, shall remain in full force and effect.
SEC. 24. Repealing Clause. - All laws, decrees, orders, issuances, rules and 
regulations or parts thereof which are inconsistent with this Act are hereby repealed 
or modified accordingly.
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SEC. 25. Effectivity Clause. - This Act shall take effect fifteen (15) days after
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its publication in the Official Gazette or in at least two (2) newspapers of general
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circulation.
Approved,
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