NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE 
S. No.
ifc'Cl ^eiiatr
spr'^- of tiu' s= . fi ft'irj;
■22 OCT 27 P3 55
received BY:
Introduced by SENATOR RAMON BONG REVILLA, JR.
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
Based on the Digital 2022 report of social media management firm, Hootsuite, 
and creative agency, We Are Social, Filipino internet users spend an average of ten 
(10) hours and 27 minutes on the internet per day. These online activities include 
watching educational videos, streaming TV content, listening to podcasts, playing 
video games, while others maximize online surfing for investment, insurance 
applications, and online banking each week.1
In a country where people are heavily reliant on the internet in their daily lives, 
response to everyday needs will inevitably evolve through the use of technology, 
hence the growth of electronic commerce (e-commerce). With the proliferation of e- 
commerce, our government enacted Republic Act No. 8792 or the "Electronic 
Commerce Act"X.o recognize the use of electronic commercial and non-commercial 
transactions in the country. Recently, the government launched an E-Commerce 
Philippines Roadmap, which provides an assessment of where our country is, its 
objectives and the strategies and measures of the country's success vis-a-vis e- 
commerce.
1 INQUIRER.net. Social media, internet craze keep PH on top 2 of world list (April 29, 2022). Retrieved 
at httDs://newslnfo. inauirer.net/1589845/social-media-internet-craze-keeD-Dh-on-toD-2-of-world-list.


This bill seeks to create and strengthen a new E-commerce Bureau under the 
Department of Trade and Industry (DTI). The said Bureau will be tasked to identify 
regulatory gaps affecting the e-commerce sector that are not sufficiently addressed 
by existing laws or regulations and recommend appropriate executive or legislative 
measures that foster the growth of the sector. With this measure, a virtual one-stop 
shop that will receive and address consumer complaints on unresolved internet 
transactions between parties wili also be established.
As Fiiipinos embrace the digital era, it is only befitting that we recognize the 
need for a systematic structure that ensures the protection of both consumers and 
merchants engaged in internet transactions
In view of the foregoing, the immediate passage of this measure is earnestly 
sought.
RAMOXBONG REVILLA, JR. ,
yX


NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
S. No. 1424
Sfiiiite
(©fficr of tl)f i&fcrr(,fni'(p
*22 OCT 27 P3 55
REdlVED E5V:
Introduced by SENATOR RAMON BONG REVILLA, JR.
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:
1 
Section 1. Short Title. - This Act shall be known as the "Internet Transactions
2 
Act of2022'.
3 
Sec. 2, Declaration of Policy. - It is the policy of the State to promote the
4 
growth of electronic commerce (e-commerce) in the country by building mutual trust
5 
between online sellers and consumers. The State recognizes the growth of the digital
6 
economy and the need to ensure that all goods and services transacted digitally be in
7 
accordance with specifications, and be reliable, secure, and accessible to all consumers
8 
for the purpose of increasing the productivity and efficiency of businesses. Towards
9 
these ends, the State shall ensure sustainable and fair e-commerce business practices
10 
through transparent and appropriate information disclosure, the maintenance and
11 
protection of data privacy rights, and an emphasis on the paramount importance of
12 
product safety. Likewise, the State shall provide meaningful access to effective
13 
mechanisms for the resolution of any and all disputes involving e-commerce, including
14 
alternative dispute resolution methods.
15 
Sec. 3. Definition of Terms. - As used in this Act:
16 
a) Compatibility refers to the ability of the digital product to function with
17 
hardware or software with which digital products of the same type are
18 
normally used, without the need for any conversion;


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b) Consumer-to-consumer transactions refer to isolated transactions of an 
individual or group of individuals with another individual or group of 
individuals, done for personal, family, or household purposes, and not 
done in the ordinary course of business of any of the parties to the 
transaction;
c) Goodsref&c to tangible products which are primarily for personal, family, 
household, or agricultural purposes which include, but are not limited to, 
food, drugs, cosmetics, and devices;
d) Delivery Carrier refers to any natural or juridical person engaged in the 
business of providing personal delivery services of food, goods, 
documents, or any other item from one person to another for 
compensation;
e) Devices refer to equipment or mechanism designed to serve a special 
purpose or perform a special function;
f) Digital Platforms refer to internet intermediaries or businesses such as, 
but not iimited to, e-marketpiaces, online deiivery enterprises, 
transportation booking, tourism booking, entertainment website and 
services, music products and services, social media, advertising, 
education and learning products, heaith websites and applications, labor 
services, among others, that match, connect, or facilitate interactions 
and transactions by and between any two or more parties to enabie 
them to sell, exchange, share, or transact in any convenient manner, 
goods, services and digitai products;
g) Digital Products refer to goods and services produced and supplied in 
digitai form such as, but not iimited 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 digitai 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-


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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 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;
n) Online Delivery Partner refers 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 digitai 
platform; and.


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q) Online Merchant refers to any natural or juridical person selling or
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manufacturing, or otherwise offering for sale or manufacture, any goods
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or digital products in the ordinary course of business, either through an
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e-marketplace, social media, website, application, or via any digital
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platform over the internet.
6 
Sec. 4. Scope and Coverage. -This Act shall apply to the sale or exchange of
7 
goods, services or digital products in the course of trade or business, whether between
8 
businesses, households, individuals, and other public or private organizations,
9 
conducted over the internet. Consumer-to-consumer internet transactions shall not be
10 
covered under this Act.
11 
Sec. 5. E-commerce Bureau. - TTie E-commerce Unit created through
12 
Department of Trade and Industry (DTI) Department Order No. 09-16, in accordance
13 
with Section 29 of Republic Act No. 8792 or the "Electronic Commerce Act of 2000,"
14 
shall be hereby abolished, and an E-commerce Bureau under the DTI shall be created
15 
to perform the following functions:
16 
a) Implement, monitor, and ensure compliance of the provisions of this
17 
Act;
18 
b) Mandate entities engaged in e-commerce to register with the Online
19 
Business Registry;
20 
c) Formulate policies, plans, and programs to ensure the robust and
21 
dynamic development of e-commerce;
22 
d) Identify regulatory gaps affecting the e-commerce sector that are not
23 
sufficiently addressed by this Act or by existing laws or regulations, and
24 
recommend appropriate executive or legislative measures that foster the
25 
growth of the sector;
26 
e) Act as a virtual one-stop shop tasked to receive and address consumer
27 
complaints on unresolved internet transactions between parties,
28 
facilitate the speedy resolution of consumer complaints by the respective
29 
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
31 
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,
2 
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
5 
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 and
8 
the local government units (LGUs) in the implementation of projects and
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programs promoting e-commerce, including information and education,
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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,
12 
who must have sufficient knowledge and background in e-commerce and online
13 
transactions, and all the laws and processes related thereto. The Director shall be
14 
assisted by three (3) Assistant Directors: for policy and administration, for
15 
enforcement, and for operations.
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The Director and all assistant Directors shall be appointed by the President,
17 
upon the recommendation of the DTT Secretary, and must be career executive service
18 
officers with at least five (5) years of government service and such relevant experience
19 
in e-commerce development.
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Sec. 7. Oniine Business Registry (OBR). -Within a period of one (1) year from
21 
the effectivity of this Act, the Bureau shall, in coordination with the Department of
22 
Information and Communications Technology (DICT), establish, maintain, and
23 
manage an Online Business Registry (OBR), which shall provide consumers access to
24 
data and information of e-marketplaces, e-retailers, online merchants, and such other
25 
digital platforms engaged in the sale of goods, services, and digital products for
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purposes of verifying their existence, confirming their identity, and other such relevant
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or needed information.
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Sec. 8. Reguiatory Jurisdiction of the DU. - For purposes of this Act, the DTI
29 
shall exercise primary regulatory jurisdiction over e-marketplaces, e-retailers, online
30 
merchants, and other digital platforms that sell or allow the sale or exchange of goods,
31 
services or digital products, and are purposely availing of the Philippine market.


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Sec. 9. Authority to Issue Take-Down Order. — Whenever the Bureau finds, by
2 
its own initiative or upon petition of a consumer or other concerned party, that the
3 
online sale of goods, services or digital products is violative of this Act, the "Consumer
4 
Acts of the Philippines', or any other related laws, the DTI Secretary, in order to abate
5 
any further violations, shall have the power to:
6 
a) Impose an order, as a form of penalty, directing that the violative online
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product listing, webpage, business page, application, social media post, profile,
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website or when applicable, any platform of the online merchant or e-retailer related
9 
to the illegal product, be immediately taken down, or the same be made inaccessible
10 
in the Philippines, whether temporarily or 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 inoperative.
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Provided that, the DTI Secretary may immediately issue a provisional take-down order
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to prevent grave and irreparable injury to the public, when the following conditions
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are present:
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i) 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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ii) When the seller under investigation has been previously penalized
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under this section.
20 
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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entities whose cooperation would be required for its enforcement, such as but not
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limited to, the duly registered internet service provider involved, related payment
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gateways, and other government agencies. The DTI Secretary may revoke the take-
30 
down order after hearing the explanation submitted by the seller, distributor,
31 
manufacturer, or producer; in which case, the order revoking the take-down order


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shall be served on the entities mentioned and in the same manner stated in the
2 
preceding paragraphs.
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Sec. 10. Referral of Complaints. - The Bureau shall refer any complaint it
4 
receives involving violation of other laws committed in the course of an online or e-
5 
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 "Ease of Doing Business and Efficient Government
9 
Service Delivery Act of 2018".
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Sec. 11. Obligations of E-Marketplaces and Other Digital Platforms. -
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a) E-Marketplaces and e-commerce digital platforms shall ensure that their e-
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commerce transactions shall:
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i) Be clearly identifiable as an e-commerce transaction;
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ii) Identify the person or persons on whose behalf the e-commerce
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transaction is made; and
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iii) Identify any promotional offers including discounts, premiums, gifts,
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and any promotional game or competition, and ensure that any conditions to
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qualify for them are easily accessible, and clearly 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) valid
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government identification cards;
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ii) Geographic address where the online merchant is located;
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iii) Contact details of the online merchant, which must include a mobile
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or 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 of
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membership in any professional body or similar relevant institution, with which
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the online merchant is registered or otherwise is a member of. Except for the
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government identification cards mentioned under Section 11 (b) (i), the
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information required under this paragraph shall be published or posted on the
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e-commerce platforms for transparency.


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c) E-Marketplaces and e-commerce digital platforms are mandated to maintain
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a list of all online merchants registered under their platform, which shall be regularly
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verified. This list shall be submitted to the Bureau and updated every six (6) months.
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d) E-Marketplaces and e-commerce digital platforms shall not allow the sale of
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regulated goods such as, but not limited to, chemicals, food, and drugs, without
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verifying the online merchant's compliance with regulatory permits and licenses, sale
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procedures and limitations, and other relevant conditions for the sale as may be
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imposed by any law or local government regulation.
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Sec. 12. Obligations of E-Retaiiers and Online Merchants. - An e-retailer or
10 
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 and
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stated and, in applicable circumstances, possess the functionality, compatibility,
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interoperability, and other features required by the sales contract, fit for the
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purpose for which it was intended by its nature;
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ii) In the same condition, type, quantity and quality of a sample, picture,
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or model of the goods shown by the e-retailer or online merchant upon request
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of the online consumer, or of additional descriptions or specifications provided
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by the e-retailer or online merchant upon inquiries made by the online
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consumer; and
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iii) 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 online merchant
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at the time of the perfection of the contract, and which the e-retailer or online
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merchant has accepted;
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b) All the goods shall:
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i) Be delivered together with its accessories, including all other
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packaging, installation inclusions, any user manual or other instructions as
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advertised or as described, if applicable, with relevant information stated in the
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packaging, printed or written in Filipino and/or English; and
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ii) Possess qualities and performance capabilities including functionality,
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compatibility, and interoperability, that are standard and normal in goods of


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the same type, which the consumer may expect, given its nature and
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considering any public statement or testimonial made by or on behalf of the e-
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retailer, online merchant, or other persons in earlier links of the chain of
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transactions, including the producer; unless the e-retailer or online merchant
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shows that:
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1. The e-retailer or online merchant was not, and could not have
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been, reasonably aware of the statement in question;
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2. By the time of conclusion of the contract, the statement had
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already been corrected; or
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3. the decision to buy the goods could not have been influenced
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by the statement.
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c) Where the e-retailer or online merchant is a digital product provider, it shall
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ensure that the digital product has the qualities and performance features, in relation
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to functionality, compatibility, interoperability, accessibility, continuity, and security,
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which are standard and normal for a digital product of the same type, as advertised
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or described.
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d) Where the contract provides that the digital product is to be supplied or
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made accessible to the online consumer over a period of time, the e-retailer or online
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merchant may modify the digital product beyond what is necessary for its
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maintenance, if the following conditions are met:
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i) The contract allows, and provides a valid reason for, such a
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modification;
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ii) Such a modification is made without additional cost to the consumer;
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and
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Hi) 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 performance
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of a service, the e-retailer or online merchant shall ensure the completion of the same
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in accordance with the contract and as 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 located;
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and
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Hi) Contact details of the e-retailer or online merchant, which must include a
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mobile or landline number and a valid e-mail address to ensure direct and
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efficient communication with consumers. This shall be submitted to the Bureau
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and must be accompanied by at least two (2) government identification cards
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as valid proof of identity.
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g) Where the e-retailer or online merchant is an online delivery service platform,
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it shall require its consumers to register by showing valid proof of identity, and an e-
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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 legal effect
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as a paper invoice or receipt. Any agreement between the e-retailer or online merchant
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and the online consumer shall be valid only if, at the time of the conclusion of the
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contract, the online consumer has knowledge of the specific condition of the goods,
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services or digital products and has expressly accepted such condition.
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Sec. 13. Rights and Obligations of Online Consumers. -
18 
a) When the online merchant is liable to the consumer because of a lack of
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conformity with the contract, the consumer may pursue any of the following remedies:
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i) A repair or replacement of the goods or digital product, which must
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be completed within a reasonable time and without any significant
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inconvenience to the consumer, taking into account the nature and the purpose
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for which the consumer acquired such;
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ii) A proportionate reduction of the price, if the consumer chooses to
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keep the good or digital product despite the lack of conformity with the
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contract, or the termination of the contract with restitution of the price, in the
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following instances:
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1. When repair or replacement is impossible or unlawful;
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2. The online merchant has not completed repair or replacement
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within a reasonable time;
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3. When repair or replacement may cause significant
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inconvenience to the consumer; or
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4. When the online merchant has declared, or it is equally clear 
from the circumstances, that the online merchants may not bring the 
goods or digital product in conformity with the contract within a 
reasonable time;
iii) When applicable, the consumer shall be 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 shall not be entitled to a remedy to the extent that the 
consumer has contributed to any ambiguity or lack of conformity with the 
contract or its effects;
v) When the online merchant remedies the lack of conformity with the 
contract by replacement, the online merchant shall be 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;
viii) 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:
1. Cancel confirmed orders for the delivery of food or grocery 
items when the said items have already been paid for by, or is already
11


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in the possession of the online delivery partner or delivery service, or is
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otherwise in transit to the consumer unless:
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a. The consumer uses credit card services as a means for
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the payment of the service and the payment will still be credited
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notwithstanding the cancellation;
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b. The consumer remits the reimbursement and payment
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to the online delivery partner as a pre-condition for the
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cancellation of the order; or
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c. The delivery of goods will be or was delayed for at least
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one (1) hour from the expected time of arrival due to the fault or
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negligence of the online delivery partner or delivery service.
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2. Use the personal information of another person such as, but
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not limited to, name, address, and contact number, when registering in
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online delivery service platforms;
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3. Place an order under the name of another person, unless the
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latter consented to the same, or placing an order using a fictitious name
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and/or address; or
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4. Unreasonably shame, demean, embarrass, or humiliate online
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delivery partners.
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Sec. 14. Termination of the Contract- If the goods or digital products delivered
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do not conform to the contract, the consumer may exercise the right to terminate the
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contract by giving notice to the online merchant. Where the lack of conformity relates
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to only some of the goods or digital products delivered under the contract, the
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consumer may terminate the contract only in relation to the non-conforming goods or
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digital products and any such accessory acquired as an adjunct to the same. When
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the consumer terminates a contract as a whole or in relation to some of the non-
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conforming goods or digital products delivered:
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(a) The online merchant shall reimburse to the consumer the price paid not
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later than fourteen (14) days from receipt of the notice and without undue delay
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whatsoever;
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(b) Upon receipt of the reimbursement from the online merchant, the consumer
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shall return, at the online merchant's expense, the goods or digital products, not later
12


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than fourteen (14) days from the receipt of the reimbursement and without undue
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delay whatsoever, provided that the online merchant may waive this requirement at
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any time;
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(c) When the goods or digital products cannot be returned because of
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destruction or loss, the consumer shall pay the monetary value, which the non-
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conforming goods or digital products would have had at the date when the return was
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to be made had they been kept by the consumer without destruction or loss until that
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date, unless the destruction or loss has been caused by a lack of conformity of the
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goods or digital products with the contract; and
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(d) The consumer shall pay for a decrease in the value of the goods or digital
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products only to the extent that the decrease in value exceeds depreciation through
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regular use. The payment for decrease in value shall not exceed the price paid for the
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goods or digital products.
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Sec. 15. Damages. - The online merchant shall be liable for damages to the
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consumer due to the lack of conformity with the contract of the goods or digital
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products: Provided, That such becomes apparent within six (6) months from receipt
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of the said goods or digital product. No damages may be recovered from this Act after
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the lapse of two (2) years from the time the consumer receives the goods or digital
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products.
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Sec. 16. Online Dispute Resolution. - The DTI shall develop an Online Dispute
21 
Resolution (ODR) platform, which shall be a single point of entry for parties to e-
22 
commerce transactions that are seeking out-of-court resolution of disputes, when the
23 
platforms or merchants fail to resolve or assist consumers with their concerns.
24 
(a) The ODR shall be an interactive website accessible electronically and free
25 
of charge. The DTI, through the Bureau, shall be responsible for its operation,
26 
including its maintenance, funding, and data security. The ODR platform shall be user-
27 
friendly, easily accessible, and data privacy compliant.
28 
(b) The DTI shall establish a network of ODR contact points from different
29 
government agencies involved in consumer complaints, as specified in Republic Act
30 
No. 7394, otherwise known as the "Consumer Act of the Philippines," including the
31 
Department of Agriculture (DA), Department of Tourism (DOT), and the Department
13


1 
of Health (DOH), among others. The Intellectual Property Office of the Philippines
2 
(IPO) shall also be part of the 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 shall
5 
confer responsibility to the respective ODR contact points to ensure that timely and
6 
competent support is provided to the resolution of complaints and disputes submitted
7 
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 the entity
13 
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 the entities
16 
which are competent to deal with such disputes.
17 
(e) The DTI shall ensure that the information on the website is accurate and
18 
up to date.
19 
(f) Online e-commerce platforms and online merchants shall provide on their
20 
websites an electronic link to the DTl-ODR platform on their homepage.
21 
Sec. 17. Liability. - An e-marketplace or e-commerce digital platform shall be
22 
solidarily liable with its listed online merchant, after due notice and hearing, under the
23 
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 shall also be
26 
in cash;
27 
(b) When the online e-commerce platform fails to properly resolve disputes,
28 
refunds, or valid cancellation of orders of consumers within a reasonable time;
29 
(c) If it knows or should have known that the goods, services or digital products
30 
sold are illegal, do not comply with existing laws, or otherwise infringe on intellectual
31 
property rights;
14


1 
(d) If it fails to take necessary measures to prevent or curtail the sale or
2 
distribution of the products which are illegal, do not comply with existing laws, or
3 
otherwise infringe on intellectual property rights within a reasonable period. Liability
4 
shall not attach to the e-marketplace or e-commerce digital platform in instances when
5 
the illegality or infringing nature of the goods, services or digital products advertised,
6 
offered for sale, or sold through e-marketplace or e-commerce digital platform is not
7 
apparent, provided that:
8 
(i) The online e-commerce platform offers a simple and straightforward
9 
procedure for consumers, rights-holders, or online merchants 
to report the
10 
existence of illegal or infringing goods, services or digital products 
in the
11 
platform;
12 
(ii) Consumers, rights-holders, and online merchants are properly
13 
informed on the policy implementing such procedure;
14 
(iii) Any report of illegal or infringing goods, services or digital products
15 
shall be expeditiously acted upon through investigations, suspensions, and
16 
take-down measures, if necessary, by the platform;
17 
(e) If the online e-commerce platform fails to comply with the requirements of
18 
this Act involving the collection, publication, and submission of online merchant
19 
information; and
20 
(f) If the e-commerce platform operator fails, after notice, to act expeditiously
21 
to remove, or disable access to, goods, services or digital products appearing on their
22 
platform that they know or should have known to be non-compliant with law, or
23 
otherwise infringe on intellectual property rights.
24 
Sec. 18. E-commerce Philippine Trustmark. - To provide assurance of safety
25 
and security in transactions over the internet, an e-commerce Philippine Trustmark
26 
shall be developed for online merchants.
27 
(a) A Trustmark and Trustmark Portal shall be created, which shall be
28 
administered and managed by the DTI.
29 
(b) A Trustmark on the website of an online merchant shall signify that the
30 
company is committed to guarantee honesty, fairness, and integrity in dealing with its
31 
customers, and is committed to refrain from engaging in any illegal, fraudulent,
32 
unethical, or unfair business practices.
15


1 
(c) In case of a complaint involving the purchase of their products or services,
2 
online merchants with the Trustmark shall give consumers the option of filing claims
3 
through the Trustmark Portal, if the online merchant's customer care service has not
4 
been able to resolve the issue.
5 
(d) The Trustmark shall be linked to the DTTs online dispute resolution.
6 
(e) The Trustmark shall be considered an official document for purposes of the
7 
crime of falsification, as defined under the Revised Penal Code and other related laws.
8 
Any E-marketplace, e-retailer, online merchant, or e-commerce digital platform that is
9 
found guilty of falsifying or forging the E-commerce Philippine Trustmark, shall be
10 
subjected to a take-down order in accordance with Section 9 of this Act.
11 
Sec. 19. Implementing Agencies, Rules, and Regulations (IRR). - Within sixty
12 
(60) days from the promulgation of this Act, the necessary rules and regulations shall
13 
be formulated and issued by the DTI, in consultation with the DICT, IPO, DOH, the
14 
Food and Drug Administration (FDA), and other relevant government agencies
15 
necessary for the proper implementation of this Act.
16 
Sec. 20. Jurisdiction of Other Agencies. - The agencies mentioned in Section 19
17 
of this Act shall continue to exercise the powers and duties provided to them under
18 
existing laws, unless repealed or modified accordingly.
19 
Sec. 21. Penalties. -
20 
(a) Any e-marketplace, e-retailer, online merchant or e-commerce digital
21 
platform that is found guilty of any deceptive, unfair or unconscionable sales act or
22 
practice, as provided for under Republic Act No. 7394 or the "Consumer Act of the
23 
Philippines," done through the internet, shall be subjected to a take-down order in
24 
accordance with Section 9 of this Act. It shall also be punished with a fine of not less
25 
than Fifty Thousand Pesos (PhP50,000.00) but not more than Five Hundred Thousand
26 
Pesos (PhP500,000.00), or an imprisonment of not less than five (5) months but not
27 
more than (1) year, or both, upon the discretion of the court.
28 
(b) Any e-marketplace, e-retailer, online merchant or e-commerce digital
29 
platform that sells or allows the sale of illegal, or imminently injurious, unsafe or
30 
dangerous goods, services or digital products, shall be subject to a take-down order
31 
in accordance with Section 9 of this Act. It shall also be punished with:
16


1 
(i) Imprisonment of one (1) year to three (3) years, plus a fine ranging
2 
from Fifty Thousand Pesos (PhP50,000.00) to One Hundred Fifty Thousand
3 
Pesos (PhP 150,000.00) for the first offense.
4 
(ii) Imprisonment of three (3) years and one (1) day to six (6) years,
5 
plus a fine ranging from One Hundred Fifty Thousand Pesos (PhP 100,000.00)
6 
to Five Hundred Thousand Pesos (PhP500,000.00) for the second offense.
7 
(iii) Imprisonment of six (6) years and one (1) day to nine (9) years, plus
8 
a fine ranging from Five Hundred Thousand Pesos (PhP500,000.00) to One
9 
Million Five Hundred Thousand Pesos (PhP 1,500,000.00) for the third and
10 
subsequent offenses.
11 
(c) Any e-retailer or online merchant who shall willfully or unreasonably refuse
12 
to provide the remedies under Section 13 (a) of this Act, shall be subjected to a take-
13 
down order, in accordance with Section 9 of this Act, and shall be punished with a fine
14 
of not less than One Hundred Thousand Pesos (PhP100,000.00), but not more than
15 
Three Hundred Thousand Pesos (PhP300,000.00), in addition to the payment of the
16 
actual value of the goods or digital products involved.
17 
(d) Any person who shall violate Section 13 (c) of this Act, shall be punished
18 
with a penalty of arresto mayor or a fine not exceeding One Hundred Thousand Pesos
19 
(PhP100,000), without prejudice to any other available remedies under existing laws.
20 
In case any violation of this Act is committed by a partnership, corporation or any
21 
juridical entity, the President, the General Manager, and other officers, employees and
22 
agents, who shall consent to, or shall knowingly tolerate such violation, shail be
23 
criminally liable.
24 
Sec. 22. Appropriations. - The amount of Fifty Million Pesos (PhP
25 
50,000,000.00) for the initial operation of the Bureau shall be hereby appropriated out
26 
of any funds in the National Treasury not otherwise appropriated. Thereafter, such
27 
sum as may be necessary for the continued implementation of this Act shall be
28 
included in the Annuai General Appropriations Act.
29 
Sec. 23. Separability Clause. - Should any provision or part of this Act be
30 
declared unconstitutional or invalid, the other provisions and parts hereof, insofar as
31 
they are separable from the invalid ones, shall remain in fuli force and effect.
17


1 
Sec. 24. Repealing Clause. - All laws, decrees, orders, issuances, rules and
2 
regulations or parts thereof, which are inconsistent with this Act, are hereby repealed
3 
or modified accordingly.
4 
Sec. 25. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
5 
complete publication in the Official Gazette or in at least two (2) newspapers of general
6 
circulation in the Philippines.
Approved,
18