NINETEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
HOUSE BILL NO.______ 
Introduced by Representative JAIME EDUARDO MARC D. COJUANGCO 
EXPLANATORY NOTE 
In the past few years, transactions or sale or exchange of goods, services or 
digital products, using platforms from the internet have grown exponentially.  
As with most new societal dynamics, legislation has been quite slow in 
keeping up. In the meantime, complaints have been registered, not just from the 
side of the consumers, but likewise from the spectrum of the sellers, and their 
ancillary partners like the delivery companies.    
This measure is being proposed to protect consumers and merchants 
engaged in internet transactions. It creates the E-Commerce Bureau, under the 
DTI, which shall be tasked to implement the provisions of this Act. It shall 
formulate e-commerce policies, plans, and programs, act on complaints, monitor 
internet market behavior, and collaborate with national government agencies and 
LGUs in the implementation of projects and programs promoting e-commerce. 
The Bureau shall also be tasked with to establish and manage an Online 
Business Registry (OBR). The OBR  shall provide consumers access to data and 
information of e-marketplaces, e-retailers, online merchants, and other digital 
platforms.  
A salient provision of this bill is the authority of the Bureau to issue a Take-
Down Order. Whenever the Bureau finds that the online sale of goods, services or 
digital products is in violation of this Act, or the Consumer Code, it can issue such 
an Order. The post or product listing, shall be taken down, or made inaccessible 
in the Philippines. The Bureau can also issue an advisory that no entity shall 
process any payments or render the post commercially inoperative.  
This draft bill also prescribes the procedures on how the Bureau can address 
or resolve complaints. This shall include an online dispute resolution system, 
which shall be an interactive website accessible electronically and free of charge. 
The bill likewise lists the responsibilities of e-retailers and online merchants 
and the rights and obligations of the online consumers. 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. The online 
merchant becomes liable for damages to the consumer in the process.  
October 11, 2022
11:50 am
5525


 
 
There is a need to promote the  growth of e-commerce in the country by 
building mutual trust  between online sellers and consumers.  This can be achieved 
if there are fair e-commerce business practices through transparent and 
appropriate information disclosure, the maintenance and protection of data 
privacy rights, and an emphasis on the paramount importance of product safety. 
An access to effective mechanisms for the resolution of any and all disputes 
involving e-commerce should also be in place. 
 
For the foregoing reasons, the immediate consideration and approval of this 
bill is earnestly urged. 
 
 
 
JAIME EDUARDO MARC D. COJUANGCO 
Representative 
1st District, Tarlac


1 
NINETEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
HOUSE BILL NO.______ 
Introduced by Representative JAIME EDUARDO MARC D. COJUANGCO 
AN ACT 
PROTECTING CONSUMERS AND MERCHANTS ENGAGED IN 
INTERNET TRANSACTIONS, CREATING FOR THIS PURPOSE THE 
E-COMMERCE BUREAU, APPROPRIATING FUNDS THEREFOR,
AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled 
SECTION 1.  Short Tide. -This Act shall be known as the "Internet 
1 
Transactions Act of 2022'.  
2 
Sec. 2. Declaration of Policy. - It is the policy of the State to promote 
3 
the  growth of electronic commerce (e-commerce) in the country by building 
4 
mutual trust  between online sellers and consumers. The State recognizes the 
5 
growth of the digital economy and the need to ensure that all goods and services 
6 
transacted digitally be in accordance with specifications, and be reliable, secure, 
7 
and accessible to all consumers for the purpose of increasing the productivity and 
8 
efficiency of businesses. Towards these ends, the State shall ensure sustainable and 
9 
fair e-commerce business practices through transparent and appropriate 
10 
information disclosure, the maintenance and protection of data privacy rights, and 
11 
an emphasis on the paramount importance of product safety. Likewise, the State 
12 
shall provide meaningful access to effective mechanisms for the resolution of any 
13 
and all disputes involving e-commerce, including alternative dispute resolution 
14 
methods.  
15 
Sec. 3. Definition of Terms. - As used in this Act: 
16 
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2 
a) Compatibility refers to the ability of the digital product to function with
1 
hardware or software with which digital products of the same type are
2 
normally used, without the need for any conversion;
3 
b) Consumer-to-consumer transactions refer to isolated transactions of an
4 
individual or group of individuals with another individual or group of
5 
Individuals, done for personal, family, or household purposes, and not
6 
done in the ordinary course of business of any of the parties to the
7 
transaction;
8 
c) Goods refer to tangible products which are primarily for personal, family,
9 
household, or agricultural purposes which include, but are not limited to,
10 
food, drugs, cosmetics, and devices;
11 
d) Delivery Carrier refers to any natural or juridical person engaged in the
12 
business of providing personal delivery services of food, goods,
13 
documents, or any other item from one person to another for compensation;
14 
e) Devices refer to equipment or mechanism designed to serve a special
15 
purpose or perform a special function;
16 
f)
Digital Platforms refer to internet intermediaries or businesses such as, but
17 
not limited to, e-marketplaces, online delivery enterprises, transportation
18 
booking, tourism booking, entertainment website and services, music
19 
products and services, social media, advertising, education and learning
20 
products, health websites and applications, labor services, among others,
21 
that match, connect, or facilitate interactions and transactions by and
22 
between any two or more parties to enable them to sell, exchange, share, or
23 
transact in any convenient manner, goods, services and digital products;
24 
g) Digital Products refer to goods and services produced and supplied in
25 
digital form such as, but not limited to, video, audio, applications, digital
26 
games, and any and all other software that allows the consumer to create,
27 


3 
process, download, store, or access digital content, or allows the sharing of 
1 
the same, or any such other interaction with digital content provided by 
2 
other users of the service;  
3 
h) E-commerce Philippine Trustmark refers to the mark approved by the E- 
4 
commerce Bureau signifying the legitimacy and verified status of an online
5 
merchant and provides for consumer protection in online or e- commerce
6 
transactions and, whenever applicable, accountability in case of consumer
7 
complaints;
8 
i)
E-commerce or Online Transaction refers to an exchange or transfer of goods
9 
and services using the internet;
10 
j)
E-Marketplace refers to a digital platform such as, but not limited to, eBay,
11 
Amazon, Shopee, Lazada, Carousell, Facebook Marketplace, among others,
12 
whose business is to connect online consumers and online merchants,
13 
facilitating the exchange of information regarding products or services for
14 
the purpose of entering into an e-commerce transaction such as the
15 
purchase of goods and services, tangible or intangible, and which may or
16 
may not provide information or services about payments and logistics;
17 
k) E-Retailer refers to a natural or juridical person engaged in selling products
18 
or services, tangible, or intangible, directly to online consumers through his
19 
own website or any other digital platform;
20 
l)
Interoperability refers to the ability of the digital product to function with
21 
hardware or software different from those with which the digital product
22 
of the same type is normally used;
23 
m) Online Consumer refers to a natural or juridical person who may be a
24 
purchaser, lessee, recipient, or a prospective purchaser, lessor, or recipient,
25 
of goods and digital products sold, exchanged, leased, or transacted over
26 
the internet;
27 


4 
 
n) Online Delivery Partner refers to a delivery carrier that performs delivery 
1 
services through an online delivery service platform under contract with a 
2 
digital platform or an E-marketplace;  
3 
o) Online Delivery Service refers to the delivery of food, parcels, or any other 
4 
item, contracted through a digital platform which may be an application, 
5 
website, webpage, social media account, or any similar means, operated by 
6 
an online delivery service platform;  
7 
p) Online Delivery Service Platform refers to any natural or juridical person 
8 
engaged in providing online delivery service for a fee through any digital 
9 
platform; and,  
10 
q) Online Merchant refers to any natural or juridical person selling or 
11 
manufacturing, or otherwise offers for sale or manufacture, any goods or 
12 
digital products in the ordinary course of business, either through an e-
13 
marketplace, social media, website, application, or via any digital platform 
14 
over the internet.  
15 
Sec. 4. Scope and Coverage. - This Act shall apply to the sale or exchange of 
16 
goods, services or digital products in the course of trade or business whether 
17 
between businesses, households, individuals, and other public or private 
18 
organizations, conducted over the internet Consumer to consumer internet 
19 
transactions shall not be covered under this Act.  
20 
Sec. 5. E-commerce Bureau. - The E-commerce Division created through 
21 
DTI Department Order No. 09-16 in accordance with Section 29 of Republic Act 
22 
No. 8792 or the "Electronic Commerce Act of 2000' is hereby abolished, and an E-
23 
commerce Bureau under the Department of Trade and Industry (DTI) shall be 
24 
created to perform the following functions:  
25 
a) Implement, monitor, and ensure compliance of the provisions of this Act;  
26 


5 
 
b) Mandate entities engaged in e-commerce to register with the Online 
1 
Business Registry; 
2 
c) Formulate policies, plans, and programs to ensure the robust and dynamic 
3 
development of e-commerce; 
4 
d) Identify regulatory gaps affecting the e-commerce sector that are not 
5 
sufficiently addressed by this Act or by existing laws or regulations, and 
6 
recommend appropriate executive or legislative measures that foster the 
7 
growth of the sector;  
8 
e) Act as a virtual one-stop shop tasked to receive and address consumer 
9 
complaints on unresolved internet transactions between parties, facilitate 
10 
the speedy resolution of consumer complaints by the respective 
11 
government agency having jurisdiction over the same, and track 
12 
complaints referred to or initiated by it motu proprio to ensure the speedy 
13 
and appropriate action by the agency to which such matters pertain or 
14 
otherwise have been referred to;  
15 
f) Coordinate with, or petition whenever appropriate, any entity, government 
16 
agency, or instrumentality to act on any matter related to e-commerce 
17 
consumer complaints;  
18 
g) Monitor internet market behavior, consult with stakeholders and 
19 
concerned agencies to better understand e-commerce transactions, and 
20 
prepare and conduct periodic studies on the same; and 
21 
h) Collaborate with the various departments of the national government and 
22 
the local government units (LGUs) in the implementation of projects and 
23 
programs promoting e-commerce, including information and education, as 
24 
well as in ensuring a policy regime that is proactive;  
25 
Sec. 6. Composition of the Bureau. -The Bureau shall be headed by a 
26 
Director who must have sufficient knowledge and background in ecommerce and 
27 


6 
 
online transactions, and all the laws and processes related thereto. The Director 
1 
shall be assisted by three (3) Assistant Directors: for policy and administration, for 
2 
enforcement, and for operations.  
3 
The Director and all assistant Directors shall be appointed by the President, 
4 
upon the recommendation of the DTI Secretary, and must be career executive 
5 
service officers with at least five (5) years of government service and such relevant 
6 
experience in e-commerce development.  
7 
Sec. 7. Online Business Registry (OBR). - Within a period of one (1) year 
8 
from the effectivity of this Act, the Bureau shall, in coordination with the 
9 
Department of Information and Communications Technology (DICT), establish, 
10 
maintain, and manage an Online Business Registry (OBR) which shall provide 
11 
consumers access to data and information of e-marketplaces, e-retailers, online 
12 
merchants, and such other digital platforms engaged in the sale of goods, services, 
13 
and digital products for purposes of verifying their existence, confirming their 
14 
identity, and other such relevant 2  or needed information.  
15 
Sec. 8. Regulatory Jurisdiction of the DTI. – For purposes of this Act, the 
16 
DTI shall exercise primary regulatory jurisdiction over e-marketplaces, e-retailers, 
17 
online merchants, and other digital platforms that sell or allow the sale or 
18 
exchange of goods, services or digital products, and are purposely availing of the 
19 
Philippine market.  
20 
Sec. 9. Authority to Issue Take-Down Order. — Whenever the Bureau 
21 
finds, by its own initiative or upon petition of a consumer or other concerned 
22 
party, that the online sale of goods, services or digital products is violative of this 
23 
Act, the "Consumer Act of the Philippine”, or any other related laws, the DTI 
24 
Secretary, in order to abate any further violations, shall have the power to:  
25 
a) Impose an order, as a form of penalty, directing that the violative online 
26 
product listing, webpage, business page, application, social media post, 
27 


7 
 
profile, website or when applicable, any platform of the online merchant or 
1 
e-retailer related to the illegal product, be taken down, or the same be made 
2 
inaccessible in the Philippines, whether temporarily or permanently; and  
3 
b) Issue an advisory that no entity shall process any payments made to any 
4 
violating entity to ensure that the latter shall be rendered commercially 
5 
inoperative.  
6 
Provided that, the DTI Secretary may immediately issue a provisional take- 
7 
down order to prevent grave and irreparable injury to the public, when the 
8 
following conditions are present:  
9 
a) When the DTI Secretary finds that a good, service or digital product is 
10 
imminently injurious, unsafe, or dangerous; or 
11 
b) When the seller under investigation has been previously penalized under 
12 
this section.  
13 
Whenever the DTI Secretary orders the immediate take-down, recall, ban, 
14 
or seizure of an illegal product from public online sale or distribution, the seller, 
15 
distributor, manufacturer, or producer thereof shall be given an opportunity to be 
16 
heard within forty-eight (48) hours from the issuance of such order.  
17 
The take-down order, whether imposed as a penalty or provisionally 
18 
granted, shall be directed against the e-retailer, online merchant, or the owner or 
19 
operator of  the e-marketplace or digital platform. Copies of the order shall 
20 
likewise be served on entities whose cooperation would be required for its 
21 
enforcement such as but not limited to the duly registered internet service 
22 
provider involved, related payment gateways, and other government agencies.  
23 
The DTI Secretary may revoke the take down order after hearing the 
24 
explanation submitted by the seller, distributor, manufacturer, or producer; in 
25 
which case tine order revoking the take down order shall be served on the entities 
26 
mentioned and in the same manner stated in the preceding paragraphs.  
27 


8 
 
Sec. 10. Referral of Complaints. - The Bureau shall refer any complaint it 
1 
receives involving violation of other laws committed in the course of an online or 
2 
e-commerce transaction to the appropriate regulatory authority for action. The 
3 
Bureau shall track the complaints or referrals made to other authorities and 
4 
coordinate with them to ensure that matters are duly resolved in accordance with 
5 
Republic Act No. 11032, otherwise known as the "Ease of Doing Business and 
6 
Efficient Government Service Delivery Act of 2018".  
7 
Sec. 11. Obligations of E-Marketplaces and other Digital Platforms.-   
8 
a) E-Marketplaces and e-commerce digital platforms shall ensure that their e-
9 
commerce transactions shall:  
10 
i. Be clearly identifiable as an e-commerce transaction; 
11 
ii. Identify the person or persons on whose behalf the e-commerce 
12 
transaction is made; and 
13 
iii. Identify any promotional offers including discounts, premiums, 
14 
gifts, and any promotional game or competition, and ensure that any 
15 
condition to qualify for them are easily accessible, and clearly set 
16 
forth.  
17 
b) E-Marketplaces and e-commerce digital platforms shall require all online 
18 
merchants to submit the following, prior to listing with their platforms:  
19 
i. Name of the online merchant accompanied by at least two (2) valid 
20 
government identification cards;  
21 
ii. Geographic address where the online merchant is located;  
22 
iii. Contact details of the online merchant which must include a mobile 
23 
or landline number and a valid e-mail address; and  
24 
iv. In instances when the online merchant exercises a regulated 
25 
profession, the online merchant shall be required to submit details 
26 
of membership in any professional body or similar relevant 
27 


9 
 
institution with which the online merchant is registered or otherwise 
1 
is a member of.  
2 
Except for the government identification cards mentioned 
3 
under Section ll(b)(i), the information required under this paragraph 
4 
shall be published or posted on the e-commerce platforms for 
5 
transparency.  
6 
c) E-Marketplaces and e-commerce digital platforms are mandated to 
7 
maintain a list of all online merchants registered under their platform, 
8 
which shall be regularly verified. This list shall be submitted to the Bureau 
9 
and updated every six (6) months. 
10 
d) E-Marketplaces and e-commerce digital platforms shall not allow the sale 
11 
of regulated goods such as, but not limited to, chemicals, food, and drugs 
12 
without verifying the online merchant's compliance with regulatory 
13 
permits and licenses, sale procedures and limitations, and other relevant 
14 
conditions for the sale as may be imposed by any law or local government 
15 
regulation.  
16 
Sec. 12. Obligations of E-Retailers and Online Merchants. - An e-retailer or 
17 
online merchant of goods, services or digital products, as defined under this Act, 
18 
shall exercise the following responsibilities:  
19 
a) Ensure that the goods are received by the online consumer: 
20 
i. In the same condition, type, quantity, and quality as described and 
21 
stated and, in applicable circumstances, possess the functionality, 
22 
compatibility, interoperability, and other features required by the 
23 
sales contract, fit for the purpose for which it was intended by its 
24 
nature; 
25 
ii. In the same condition, type, quantity and quality of a sample, 
26 
picture, or model of the goods shown by the e-retailer or online 
27 


10 
 
merchant upon request of the online consumer, or of additional 
1 
descriptions or specifications provided by the e-retailer or online 
2 
merchant upon inquiries made by the online consumer; and 
3 
iii. It must also be fit for the particular purpose for which the online 
4 
consumer requires them, as communicated to the e-retailer or online 
5 
merchant at the time of the perfection of the contract, and which the 
6 
e-retailer or online merchant has accepted;  
7 
b) All the goods shall:  
8 
i. 
Be delivered together with its accessories including all other 
9 
packaging, installation inclusions, any user manual or other 
10 
instructions as advertised or as described, if applicable, with 
11 
relevant information stated in the packaging, printed or written in 
12 
Filipino and/or English; and  
13 
ii. 
Possess 
qualities 
and 
performance 
capabilities 
including 
14 
functionality, compatibility, and interoperability that are standard 
15 
and normal in goods of the same type which the consumer may 
16 
expect given its nature and considering any public statement or 
17 
testimonial made by or on behalf of the e- retailer, online merchant, 
18 
or other persons in earlier links of the chain of transactions, 
19 
including tine producer, unless the e- retailer or online merchant 
20 
shows that:  
21 
1. The e-retailer or online merchant was not, and could not have 
22 
been, reasonably aware of the statement in question; 
23 
2. By the time of conclusion of the contract, the statement had 
24 
already been corrected; or  
25 
3. The decision to buy the goods could not have been influenced 
26 
by the statement.  
27 


11 
 
c) Where the e-retailer or online merchant is a digital product provider, it shall 
1 
ensure that the digital product has the qualities and performance features, 
2 
in relation to functionality, compatibility, interoperability, accessibility, 
3 
continuity, and security, which are standard and normal for a digital 
4 
product of the same type as advertised or described.  
5 
d) Where the contract provides that the digital product is to be supplied or 
6 
made accessible to the online consumer over a period of time, the e- retailer 
7 
or online merchant may modify the digital product beyond what is 
8 
necessary for its maintenance, if the following conditions are met:  
9 
i. 
The contract allows, and provides a valid reason for, such a 
10 
modification;  
11 
ii. 
Such a modification is made without additional cost to the 
12 
consumer; and, 
13 
iii. 
The online consumer is informed in a clear and comprehensible 
14 
manner of the modification.  
15 
e) Where the transaction involves a digital platform that offers a performance 
16 
of a service, the e-retailer or online merchant shall ensure the completion of 
17 
the same in accordance with the contract and as advertised.  
18 
f) An e-retailer or an online merchant that operates its own digital platform 
19 
shall publish on its homepage the following:  
20 
i. 
Name of the e-retailer or online merchant; 
21 
ii. 
Geographic address where the e-retailer or online merchant is 
22 
located; and, 
23 
iii. 
Contact details of the e-retailer or online merchant which must 
24 
include a mobile or landline number and a valid e-mail address to 
25 
ensure direct and efficient communication with consumers.  
26 


12 
 
This shall be submitted to the Bureau and must be 
1 
accompanied by at least two (2) government identification cards as 
2 
valid proof of identity.  
3 
g) Where the e-retailer or online merchant is an online delivery service 
4 
platform, it shall require its consumers to register by showing valid proof 
5 
of identity, and an e-mail address or mobile phone number. 
6 
h) E-retailers or online merchants shall issue paper or electronic invoices or 
7 
receipts for all sales. An electronic invoice or receipt shall have the same 
8 
legal effect as a paper invoice or receipt. 
9 
Any agreement between the e-retailer or online merchant and the online 
10 
consumer is valid only if, at the time of the conclusion of the contract, the online 
11 
consumer has knowledge of the specific condition of the goods, services or digital 
12 
products and has expressly accepted such condition.  
13 
Sec. 13. Rights and Obligations of Online Consumers. -  
14 
a) When the online merchant is liable to the consumer because of a lack of 
15 
conformity with the contract, the consumer may pursue any of the 
16 
following remedies:  
17 
i. A repair or replacement of the goods or digital product which must 
18 
be completed within a reasonable time and without any significant 
19 
inconvenience to the consumer, taking into account the nature and 
20 
the purpose for which the consumer acquired such;  
21 
ii. A proportionate reduction of the price if the consumer chooses to 
22 
keep the good or digital product despite the lack of conformity with 
23 
the contract, or the termination of the contract with restitution of the 
24 
price, in the following instances:  
25 
1. When repair or replacement is impossible or unlawful;  
26 


13 
 
2. The online merchant has not completed repair or replacement 
1 
within a reasonable time; 
2 
3. When repair or replacement may cause significant inconvenience 
3 
to the consumer; or 
4 
4. When the online merchant has declared, or it is equally clear from 
5 
the circumstances, that the online merchant may not bring the 
6 
goods or digital product in conformity with the contract within a 
7 
reasonable time;  
8 
iii. When applicable, the consumer is entitled to withhold the payment 
9 
of any outstanding part of the purchase price until the online 
10 
merchant has brought the goods or digital product in conformity 
11 
with the contract;  
12 
iv. The consumer is not entitled to a remedy to the extent that the 
13 
consumer has contributed to any ambiguity or lack of conformity 
14 
with the contract or its effects;  
15 
v. When the online merchant remedies the lack of conformity with the 
16 
contract by replacement, the online merchant is entitled to the return 
17 
of the replaced goods or digital products at the online merchant's 
18 
expense, unless otherwise agreed upon by the parties;  
19 
vi. When the consumer had installed the goods or digital products in a 
20 
manner consistent with their nature and purpose, before the lack of 
21 
conformity with the contract became apparent, the costs for the 
22 
removal of the non- conforming goods or digital products, the 
23 
installation of the replacement and all associated costs shall be for 
24 
the account of the online merchant;  
25 


14 
 
vii. In case of goods or digital products that do not conform with the 
1 
contract, the consumer is not liable to pay for the use of the non-
2 
conforming goods or digital products prior to its replacement;  
3 
viii. The consumer may exercise the choice in the alternative between 
4 
repair or replacement of the purchased good or digital product, 
5 
unless such choice is impossible in which case the consumer may 
6 
choose to terminate the contract and return the item, and the online 
7 
merchant shall refund the full amount paid by the consumer.  
8 
b) Consumers of online delivery service platforms may hold delivery carriers 
9 
liable for damages if the latter fail to exercise due diligence and reasonable 
10 
care over the goods transported by them. 
11 
c) To protect the rights of delivery carriers, it shall be unlawful for consumers 
12 
to:  
13 
i. Cancel confirmed orders for the delivery of food or grocery items 
14 
when the said items have already been paid for by, or is already in 
15 
the possession of the online delivery partner or delivery service, or 
16 
is otherwise in transit to the consumer unless:  
17 
1. The consumer uses credit card services as a means for the 
18 
payment of the service and the payment will still be credited 
19 
notwithstanding the cancellation;  
20 
2. The consumer remits the reimbursement and payment to the 
21 
online delivery partner as a pre- condition for the cancellation of 
22 
the order; or  
23 
3. The delivery of goods will be or was delayed for at least one (1) 
24 
hour from the expected time of arrival due to the fault or 
25 
negligence of the online delivery partner or delivery service. 
26 


15 
 
ii. Use the personal information of another person such as, but not 
1 
limited to, name, address, and contact number when registering in 
2 
online delivery service platforms; 
3 
iii. Place an order under the name of another person, unless the latter 
4 
consented to the same, or placing an order using a fictitious name 
5 
and/or address; or Unreasonably shame, demean, embarrass, or 
6 
humiliate online delivery partners.  
7 
Sec. 14. Right to Terminate the Contract. - If the goods or digital products 
8 
delivered do not conform to the contract, the consumer may exercise the right to 
9 
terminate the contract by giving notice to the online merchant. Where the lack of 
10 
conformity relates to only some of the goods or digital products delivered under 
11 
the contract, the consumer may terminate the contract only in relation to the non- 
12 
conforming goods or digital products and any such accessory acquired as an 
13 
adjunct to the same.  
14 
When the consumer terminates a contract as a whole or in relation to some 
15 
of the non-conforming goods or digital products delivered:  
16 
a) The online merchant shall reimburse to the consumer the price paid not 
17 
later than fourteen (14) days from receipt of the notice and without undue 
18 
delay whatsoever; 
19 
b) Upon receipt of the reimbursement from the online merchant, the consumer 
20 
shall return, at the online merchant's expense, the goods or digital products 
21 
not later than fourteen (14) days from the receipt of the reimbursement and 
22 
without undue delay whatsoever, provided that the online merchant may 
23 
waive this requirement at any time; 
24 
c) When the goods or digital products cannot be returned because of 
25 
destruction or loss, the consumer shall pay the monetary value which the 
26 
non-conforming goods or digital products would have had at the date 
27 


16 
 
when the return was to be made had they been kept by the consumer 
1 
without destruction or loss until that date, unless the destruction or loss has 
2 
been caused by a lack of conformity of the goods or digital products with 
3 
the contract; and  
4 
d) The consumer shall pay for a decrease in the value of the goods or digital 
5 
products only to the extent that the decrease in value exceeds depreciation 
6 
through regular use. The payment for decrease in value shall not exceed the 
7 
price paid for the goods or digital products.  
8 
Sec. 15. Damages. - The online merchant is liable for damages to the 
9 
consumer due to the lack of conformity with the contract of the goods or digital 
10 
products: Provided, that such becomes apparent within six (6) months from receipt 
11 
of the said goods or digital product.  
12 
No damages may be recovered from this Act after the lapse of two (2) years 
13 
from the time the consumer receives the goods or digital products.  
14 
Sec. 16. Online Dispute Resolution. - The DTI shall develop an Online 
15 
Dispute Resolution (ODR) platform which is a single point of entry for parties to 
16 
e-commerce transactions that are seeking out-of-court resolution of disputes when 
17 
the platforms or merchants fail to resolve or assist consumers with their concerns.  
18 
a) The ODR shall be an interactive website accessible electronically and free 
19 
of charge. The DTI, through the Bureau, shall be responsible for its 
20 
operation, including its maintenance, funding, and data security. The ODR 
21 
platform must be user-friendly, easily accessible, and data privacy 
22 
compliant. 
23 
b) The DTI shall establish a network of ODR contact points from different 
24 
government agencies involved in consumer complaints as specified in 
25 
Republic Act No. 7394, otherwise known as the "Consumer Act of the 
26 
Philippine”, including the Department of Agriculture (DA), Department of 
27 


17 
 
Tourism (DOT), and the Department of Health (DOH), among others. The 
1 
Intellectual Property Office of the Philippines (IPO) shall also be part of the 
2 
ODR network.  
3 
c) Each agency shall have a designated ODR contact point whose name and 
4 
contact information are to be submitted to the DTI. The head of the agency 
5 
shall confer responsibility to the respective ODR contact points to ensure 
6 
that timely and competent support is provided to the resolution of 
7 
complaints and disputes submitted through the ODR platform.  
8 
d) The ODR platform shall have the following functions:  
9 
i. Provide an electronic form where alternative dispute resolution 
10 
entities shall transmit the information;  
11 
ii. Provide a feedback system that will allow parties to express their 
12 
views on the efficiency of the ODR platform and on the response of 
13 
the entity handling their dispute; and 
14 
iii. Make available to the public, general information on alternative 
15 
dispute resolution as a means of out-of-court dispute resolution and 
16 
the entities which are competent to deal with such disputes.  
17 
e) The DTI shall ensure that the information on the website is accurate and up 
18 
to date. 
19 
f) Online e-commerce platforms and online merchants shall provide on their 
20 
websites an electronic link to the DTI-ODR platform on their homepage.  
21 
Sec. 17. Liability. - An e-marketplace or e-commerce digital platform shall 
22 
be solidarily liable with its listed online merchant, after due notice and hearing, 
23 
under the following circumstances:  
24 
a) If it fails to provide a mechanism for consumers to dispute, be refunded, or 
25 
validly cancel orders. For this purpose, refunds to cash-paying customers 
26 
should also be in cash; 
27 


18 
 
b) When the online e-commerce platform fails to properly resolve disputes, 
1 
refunds, or valid cancellation of orders of consumers within a reasonable 
2 
time; 
3 
c) If it knows or should have known that the goods, services or digital 
4 
products sold are illegal, do not comply with existing laws, or otherwise 
5 
infringe on intellectual property rights; 
6 
d) If it fails to take necessary measures to prevent or curtail the sale or 
7 
distribution of the products which are illegal, do not comply with existing 
8 
laws, or otherwise infringe on intellectual property rights within a 
9 
reasonable period.  
10 
Liability shall not attach to the e-marketplace or e-commerce digital 
11 
platform in instances when the illegality or infringing nature of the goods, 
12 
services or digital products advertised, offered for sale, or sold through e-
13 
marketplace or e-commerce digital platform is not apparent, provided that:  
14 
i. The online e-commerce platform offers a simple and straightforward 
15 
procedure for consumers, rights-holders, or online merchants to 
16 
report the existence of illegal or infringing goods, services or digital 
17 
products in the platform;  
18 
ii. Consumers, rights-holders, and online merchants are properly 
19 
informed on the policy implementing such procedure;  
20 
iii. Any report of illegal or infringing goods, services or digital  
21 
iv. products shall be expeditiously acted upon through investigations, 
22 
suspensions, and take-down measures, if necessary, by the platform;  
23 
e) If the online e-commerce platform fails to comply with the requirements of 
24 
this Act involving the collection, publication, and submission of online 
25 
merchant information; and  
26 


19 
 
f) If the e-commerce platform operator fails, after notice, to act expeditiously 
1 
to remove, or disable access to, goods, services or digital products 
2 
appearing on their platform that they know or should have known to be 
3 
non-compliant with law, or otherwise infringe on intellectual property 
4 
rights.  
5 
Sec. 18. E-commerce Philippine Trustmark. - To provide assurance of safety 
6 
and security in transactions over the internet, an e-commerce Philippine 
7 
Trustmark shall be developed for online merchants.  
8 
a) A Trustmark and Trustmark Portal shall be created which shall be 
9 
administered and managed by the DTI; 
10 
b) A Trustmark on the website of an online merchant signifies that the 
11 
company is committed to guarantee honesty, fairness, and integrity in 
12 
dealing with its customers, and is committed to refrain from engaging in 
13 
any illegal, fraudulent, unethical, or unfair business practices;  
14 
c) In case of a complaint involving the purchase of their products or services, 
15 
online merchants with the Trustmark shall give consumers the option of 
16 
filing claims through the Trustmark portal, if the online merchant's 
17 
customer care service has not been able to resolve the issue; 
18 
d) The Trustmark shall be linked to the DTI's online dispute resolution. The 
19 
Trustmark shall be considered an official document for purposes of the 
20 
crime of falsification as defined under the Revised Penal Code; and,  
21 
e) Other related laws. Any E-marketplace, e-retailer, online merchant, or e- 
22 
commerce digital platform that is found guilty of falsifying or forging the 
23 
E-commerce Philippine Trustmark, shall be subjected to a take-down order 
24 
in accordance with Section 9 of this Act.  
25 
Sec. 19. Implementing Agencies, Rules, and Regulations. - Within sixty (60) 
26 
days from the promulgation of this Act, the necessary rules and regulations shall 
27 


20 
 
be formulated and issued by the DTI, in consultation with the DICT, IPO, DOH, 
1 
the Food and Drug Administration (FDA), and other relevant government 
2 
agencies necessary for the proper implementation of this Act.  
3 
Sec. 20. Jurisdiction of Other Agencies. - The agencies mentioned in Section 
4 
19 of this Act shall continue to exercise the powers and duties provided to them 
5 
under existing laws, unless repealed or modified accordingly.  
6 
Sec. 21. Penalties. -  
7 
a) Any e-marketplace, e-retailer, online merchant or e-commerce digital 
8 
platform that is found guilty of any deceptive, unfair or unconscionable 
9 
sales act or practice as provided for under Republic Act No. 7394 or the 
10 
"Consumer Act of the Philippines” done through the internet, shall be 
11 
subjected to a take-down order in accordance with Section 9 of this Act. It 
12 
shall also be punished with a fine of not less than Fifty Thousand Pesos 
13 
(PhP50,000.00) but not more than Five Hundred Thousand Pesos 
14 
(PhP500,000.00), or an imprisonment of not less than five (5) months but not 
15 
more than (1) year, or both, upon the discretion of the court.  
16 
b) Any e-marketplace, e-retailer, online merchant or e-commerce digital 
17 
platform that sells or allows the sale of illegal, or imminently injurious, 
18 
unsafe or dangerous goods, services or digital products shall be subject to 
19 
a take-down order in accordance with Section 9 of this Act. It shall also be 
20 
punished with:  
21 
i. Imprisonment of one (1) year to three (3) years plus a fine ranging 
22 
from Fifty Thousand Pesos (PhP50,000.00) to One Hundred Fifty 
23 
Thousand pesos (PhP150,000.00) for the first offense.  
24 
ii. Imprisonment of three (3) years and one (1) day to six (6) years plus 
25 
a fine ranging from One Hundred Fifty Thousand Pesos 
26 


21 
 
(PhPlB,000.00) to Five Hundred Thousand Pesos (PhP500,000.00) for 
1 
the second offense. 
2 
iii. Imprisonment of six (6) years and one (1) day to nine (9) years plus 
3 
a fine ranging from Five Hundred Thousand Pesos (PhP500,000.00) 
4 
to One Million Five Hundred Thousand Pesos (PhPl,500,000.00) for 
5 
the third and subsequent offenses.  
6 
c) Any e-retailer or online merchant who shall willfully or unreasonably 
7 
refuse to provide the remedies under Section 13 (a), shall be subjected to a 
8 
take-down order in accordance with Section 9 of this Act, and be punished 
9 
with a fine not less than One Hundred Thousand Pesos (PhP100,000.00), 
10 
but not more than Three Hundred Thousand Pesos (PhP300,000.00), in 
11 
addition to the payment of the actual value of the goods or digital products 
12 
involved.  
13 
d) Any person who shall violate Section 13 (c) of this Act, shall be punished 
14 
with a penalty of arresto mayor or a fine not exceeding One Hundred 
15 
Thousand Pesos (PhP100,000), without prejudice to any other available 
16 
remedies under existing laws.  
17 
In case any violation of this Act is committed by a partnership, corporation 
18 
or any juridical entity, the President, the General Manager, and other officers, 
19 
employees and agents, who shall consent to, or shall knowingly tolerate such 
20 
violation shall be criminally liable. 
21 
Sec. 22. Appropriations. - The amount of Fifty Million Pesos 
22 
(PhP50,000,000.00) for the initial operation of the Bureau is hereby appropriated 
23 
out of any funds in the National Treasury not otherwise appropriated. Thereafter, 
24 
such sum as may be necessary for the continued implementation of this Act shall 
25 
be included in the annual General Appropriations Act.  
26 


22 
 
 Sec. 23.   Separability. -  If for any reason, any section or provision of this 
1 
Act is declared invalid or unconstitutional, no other section, provisions or part 
2 
thereof shall be affected and the same shall remain in full force and effect. 
3 
 
Sec. 24.   Repealing Clause.  -  All laws, decrees, orders, rules and 
4 
regulations or parts thereof which are inconsistent with the provisions of this Act 
5 
are hereby repealed or modified accordingly. 
6 
Sec. 25.   Effectivity. -  This Act shall take effect fifteen (15) days after its 
7 
publication in at least two (2) national newspapers of general circulation. 
8 
APPROVED. 
9