NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
First Regular Session 
)
SENATE
Senate Bill No. 612
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*22 JUL14 P2:03
UUCQVED SV;
Introduced by Senator Juan Miguel F. Zubiri
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
The COVID-19 pandemic has forced us to make adjustments to the way we live. 
Being forced to self-isolate has given birth to a new form of connectedness - to the way 
a family shares a weekend meal or drinks over Zoom, or to the way friends enjoy a movie 
streamed over the internet instead of going out to the cinema. The past two years saw 
the world transition to remote work and virtual learning to online shopping and digital 
payments.
For Filipino entrepreneurs and consumers, the business unusual that started at the 
beginning of the pandemic as a result of the lockdown implemented all over the country 
has slowly shifted to today's business' new usual. The country saw an exponential growth 
in the number of online sellers as well as online shoppers; and consequently, a surge in 
the number of consumer complaints as well as seller complaints.
Recognizing the growth of ecommerce and the need to ensure that all goods and 
services transacted digitally be reliable, secure, accessible and fair to both consumers 
and sellersf, this bill provides for a regulatory framework in the sale or exchange of goods, 
services or digital products whether between businesses, households, individuals, and 
other public or private organizations, conducted over the internet. The bill mandates the 
Department of Trade and Industry to have regulatory jurisdiction over e-marketplaces, 
e-retailers, online merchants, and other digital platforms that sell or allow the sale or 
exchange of goods, services or digital products. The proposed eCommerce Bureau under 
the Department shall serve as complaint desk to assist consumers.
In view of the foregoing, the passage of this bill is earnestly sought.
AN MIGUEL F. ZUBIRI


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
S E N A TE
Senate Bill No. ^^2
of the
*22 JUL 14 P2 :03
RHCEIVEO BY:
Introduced by Senator Juan Miguel F. Zubiri
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.
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SECTION 1. Short Title. - This Act shall be known as theInternet Transactions
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Act of2022"
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Sec. 2. Declaration of Policy. - It is the policy of the State to promote the
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growth of electronic commerce (e-commerce) in the country by building mutual trust
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between online sellers and consumers. The State recognizes the growth of the digital
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economy and the need to ensure that all goods and services transacted digitally be in
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accordance with specifications, and be reliable, secure, and accessible to all consumers
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for the purpose of increasing the productivity and efficiency of businesses. Towards these
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ends, the State shall ensure sustainable and fair e-commerce business practices through
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transparent and appropriate information disclosure, the maintenance and protection of
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data privacy rights, and an emphasis on the paramount importance of product safety.
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Likewise, the State shall provide meaningful access to effective mechanisms for the
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resolution of any and all disputes involving e-commerce, including alternative dispute
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resolution methods.
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Sec. 3. Definition of Terms. - As used in this Act:
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(a) Compatibility refers to the ability of the digital product to function with
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hardware or software with which digital products of the same type are
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normally used, without the need for any conversion;
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(b) Consumer-to-consumer transactions refer to isolated transactions of an
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individual or group of individuals with another individual or group of


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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) 
Goods refer 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 limited to, e-marketplaces, online delivery enterprises, transportation 
booking, tourism booking, entertainment website and services, music 
products and services, social media, advertising, education and learning 
products, health websites and applications, labor services, among others, 
that match, connect, or facilitate interactions and transactions by and 
between any two or more parties to enable them to sell, exchange, share, 
or transact in any convenient manner, goods, services and digital products;
(g) 
DigitalProductsxefer to goods and services produced and supplied in digital 
form such as, but not limited to, video, audio, applications, digital games, 
and any and all other software that allows the consumer to create, process, 
download, store, or access digital content, or allows the sharing of the 
same, or any such other interaction with digital content provided by other 
users of the service;
(h) 
E-commerce Philippine Trustmark refers to the mark approved by the E- 
commerce Bureau signifying the legitimacy and verified status of an online 
merchant and provides for consumer protection in online or e-commerce 
transactions and, whenever applicable, accountability in case of consumer 
complaints;
(i) 
E-commerce or Online Transaction refers to an exchange or transfer of 
goods and services using the internet;
(j) 
E-Marketpiace refers to a digital platform such as, but not limited to, eBay, 
Amazon, Shopee, Lazada, Carousell, Facebook Marketplace, among others, 
whose business is to connect online consumers and online merchants, 
facilitating the exchange of information regarding products or services for 
the purpose of entering into an e-commerce transaction such as the


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purchase of goods and services, tangible or intangible, and which may or
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may not provide information or services about payments and logistics;
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(k) 
E-Retailer refers to a natural or juridical person engaged In selling products
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or services, tangible, or intangible, directly to online consumers through his
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own website or any other digital platform;
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(I) 
Interoperability refers to the ability of the digital product to function with
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hardware or software different from those with which the digital product of
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the same type is normally used;
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(m) 
Online Consumer refers to a natural or juridical person who may be a
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purchaser, lessee, recipient, or a prospective purchaser, lessor, or recipient,
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of goods and digital products sold, exchanged, leased, or transacted over
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the internet;
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(n) 
Online Delivery Partner refers to a delivery carrier that performs delivery
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services through an online delivery service platform under contract with a
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digital platform or an E-marketplace;
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(o) 
Online Delivery Service refers to the delivery of food, parcels, or any other
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item, contracted through a digital platform which may be an application,
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website, webpage, social media account, or any similar means, operated by
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an online delivery service platform;
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(p) 
Online Delivery Service Platform refers to any natural or juridical person
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engaged in providing online delivery service for a fee through any digital
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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 offers for sale or manufacture, any goods or
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digital products in the ordinary course of business, either through an e-
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marketplace, social media, website, application, or via any digital platform
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over the internet.
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Sec. 4. Scope and Coverage, — This Act shall apply to the sale or exchange of
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goods, services or digital products in the course of trade or business whether between
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businesses, households, individuals, and other public or private organizations, conducted
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over the internet. Consumer to consumer internet transactions shall not be covered under
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this Act.
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Sec. 5. E-commerce Bureau, - The E-commerce Division created through DTI
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Department Order No. 09-16 in accordance with Section 29 of Republic Act No. 8792 or
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the Electronic Commerce Act of2000' is hereby abolished, and an E-commerce Bureau


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under the Department of Trade and Industry (DTI) shall be created to perform the
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following functions:
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(a) 
Implement, monitor, and ensure compliance of the provisions of this Act;
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(b) 
Mandate entities engaged in e-commerce to register with the Online
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Business Registry;
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(c) 
Formulate policies, plans, and programs to ensure the robust and dynamic
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development of e-commerce;
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(d) 
Identify regulatory gaps affecting the e-commerce sector that are not
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sufficiently addressed by this Act or by existing laws or regulations, and
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recommend appropriate executive or legislative measures that foster the
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growth of the sector;
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(e) 
Act as a virtual one-stop shop tasked to receive and address consumer
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complaints on unresolved internet transactions between parties, facilitate
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the speedy resolution of consumer complaints by the respective
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government agency having jurisdiction over the same, and track complaints
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referred to or initiated by it motu proprio to ensure the speedy and
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appropriate action by the agency to which such matters pertain or otherwise
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have been referred to;
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(f) 
Coordinate with, or petition whenever appropriate, any entity, government
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agency, or instrumentality to act on any matter related to e-commerce
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consumer complaints;
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(g) 
Monitor internet market behavior, consult with stakeholders and concerned
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agencies to better understand e-commerce transactions, and prepare and
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conduct periodic studies on the same; and
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(h) 
Collaborate with the various departments of the national government and
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the local government units (LGUs) in the implementation of projects and
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programs promoting e-commerce, including information and education, as
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well as in ensuring a policy regime that is proactive;
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Sec. 6. Composition of the Bureau, - The Bureau shall be headed by a Director
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who must have sufficient knowledge and background in e-commerce and online
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transactions, and all the laws and processes related thereto. The Director shall be assisted
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by three (3) Assistant Directors: for policy and administration, for enforcement, and for
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operations.
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The Director and all assistant Directors shall be appointed by the President, upon
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the recommendation of the DTI Secretary, and must be career executive service officers


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with at least five (5) years of government service and such relevant experience in e-
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commerce development.
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Sec. 7. Online Business Registry (OBR). - Within a period of one (1) year
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from the effectivity of this Act, the Bureau shall, in coordination with the Department of
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Information and Communications Technology (DICT), establish, maintain, and manage
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an Online Business Registry (OBR) which shall provide consumers access to data and
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information of e-marketplaces, e-retailers, online merchants, and such other digital
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platforms engaged in the sale of goods, services, and digital products for purposes of
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verifying their existence, confirming their identity, and other such relevant or needed
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information.
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Sec. 8. Regulatory Jurisdiction of the DTL - For purposes of this Act, the DTI
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shall exercise primary regulatory jurisdiction over e-marketplaces, e-retailers, online
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merchants, and other digital platforms that sell or allow the sale or exchange of goods,
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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,
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by its own initiative or upon petition of a consumer or other concerned party, that the
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online sale of goods, services or digital products is violative of this Act, the "Consumer
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Act of the Philippine^1, or any other related laws, the DTI Secretary, in order to abate
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any further violations, shall have the power to:
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(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,
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profile, website or when applicable, any platform of the online merchant or
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e-retailer related to the illegal product, be taken down, or the same be
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made inaccessible in the Philippines, whether temporarily or permanently;
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and
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(b) 
Issue an advisory that no entity shall process any payments made to any
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violating entity to ensure that the latter shall be rendered commercially
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inoperative.
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Provided that, the DTI Secretary may immediately issue a provisional take-down
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order to prevent grave and irreparable injury to the public, when the following conditions
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are present:
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(a) 
When the DTI Secretary finds that a good, service or digital product is
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imminently injurious, unsafe, or dangerous; or
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(b) When the seller under investigation has been previously penalized under
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this section.


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Whenever the DTI Secretary orders the immediate take-down, recall, ban, or
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seizure of an illegal product from public online sale or distribution, the seller, distributor,
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manufacturer, or producer thereof shall be given an opportunity to be heard within forty-
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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, shall
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be directed against the e-retailer, online merchant, or the owner or operator of the e-
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marketplace or digital platform. Copies of the order shall likewise be served on entities
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whose cooperation would be required for its enforcement such as but not limited to the
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duly registered internet service provider involved, related payment gateways, and other
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government agencies.
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The DTI Secretary may revoke the take down order after hearing the explanation
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submitted by the seller, distributor, manufacturer, or producer; in which case the order
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revoking the take down order shall be served on the entities mentioned and in the same
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manner stated in the preceding paragraphs.
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Sec. 10. Referral of Complaints. - The Bureau shall refer any complaint it
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receives involving violation of other laws committed in the course of an online or e-
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commerce transaction to the appropriate regulatory authority for action. The Bureau shall
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track the complaints or referrals made to other authorities and coordinate with them to
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ensure that matters are duly resolved in accordance with Republic Act No. 11032,
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otherwise known as the ""Ease of Doing Business and Efficient Government Service
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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
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condition to qualify for them are easily accessible, and clearly set
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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
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of membership in any professional body or similar relevant institution
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with which the online merchant is registered or otherwise is a
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member of.
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Except for the government identification cards mentioned under
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Section ll(b)(i)A the information required under this paragraph shall be
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published or posted on the e-commerce platforms for transparency.
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(c) 
E-Marketp!aces 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
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regularly verified. This list shall be submitted to the Bureau and updated
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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
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without verifying the online merchant's compliance with regulatory permits
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and licenses, sale procedures and limitations, and other relevant conditions
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for the sale as may be imposed by any law or local government regulation.
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Sec. 12. Obligations of E-Retailers and Online Merchants. - An e-retailer
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or 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,
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compatibility, interoperability, and other features required by the
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sales contract, fit for the purpose for which it was intended by its
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nature;
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(ii) In the same condition, type, quantity and quality of a sample,
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picture, or model of the goods shown by the e-retailer or online
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merchant upon request of the online consumer, or of additional
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descriptions or specifications provided by the e-retailer or online
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merchant upon inquiries made by the online consumer; and
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(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


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merchant at the time of the perfection of the contract, and which the 
e-retailer or online merchant has accepted;
(b) 
All the goods shall:
(i) 
Be delivered together with its accessories including all other 
packaging, installation inclusions, any user manual or other 
Instructions as advertised or as described, if applicable, with 
relevant information stated in the packaging, printed or written in 
Filipino and/or English; and
(ii) 
Possess qualities and performance capabilities including 
functionality, compatibility, and interoperability that are standard 
and normal in goods of the same type which the consumer may 
expect given its nature and considering any public statement or 
testimonial made by or on behalf of the e-retailer, online 
merchant, or other persons in earlier links of the chain of 
transactions, including the producer, unless the e-retailer or online 
merchant shows that:
1. 
The e-retailer or online merchant was not, and could 
not have been, reasonably aware of the statement in 
question;
2. 
By the time of conclusion of the contract, the statement 
had already been corrected; or
3. 
The decision to buy the goods could not have been 
influenced by the statement.
(c) 
Where the e-retailer or online merchant is a digital product provider, it shall 
ensure that the digital product has the qualities and performance features, 
in relation to functionality, compatibility, interoperability, accessibility, 
continuity, and security, which are standard and normal for a digital product 
of the same type as advertised or described.
(d) 
Where the contract provides that the digital product is to be supplied or 
made accessible to the online consumer over a period of time, the e-retailer 
or online merchant may modify the digital product beyond what is necessary 
for its maintenance, if the following conditions are met:
(i) 
The contract allows, and provides a valid reason for, such a 
modification;
(ii) 
Such a modification is made without additional cost to the 
consumer; and
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(iii) The online consumer is informed in a clear and comprehensible 
manner of the modification.
(e) 
Where the transaction involves a digital platform that offers a performance 
of a service, the e-retailer or online merchant shall ensure the completion 
of the same in accordance with the contract and as advertised.
(f) 
An e-retailer or an online merchant that operates its own digital platform 
shall publish on its homepage the following:
(i) 
Name of the e-retailer or online merchant;
(ii) 
Geographic address where the e-retailer or online merchant is
located; and
(iii) 
Contact details of the e-retailer or online merchant which must 
include a mobile or landline number and a valid e-mail address to 
ensure direct and efficient communication with consumers.
This shall be submitted to the Bureau and must be accompanied by at 
least two (2) government identification cards as valid proof of identity.
(g) 
Where the e-retailer or online merchant is an online delivery service 
platform, it shall require its consumers to register by showing valid proof of 
identity, and an e-mail address or mobile phone number.
(h) 
E-retailers or online merchants shall issue paper or electronic invoices or 
receipts for all sales. An electronic invoice or receipt shall have the same 
legal effect as a paper invoice or receipt.
Any agreement between the e-retailer or online merchant and the online consumer 
is valid only if, at the time of the conclusion of the contract, the online consumer has 
knowledge of the specific condition of the goods, services or digital products and has
expressly accepted such condition.
Sec. 13. Rights and Obligations of Oniine Consumers. -
(a) When the online merchant is liable to the consumer because of a lack of 
conformity with the contract, the consumer may pursue any of the following 
remedies:
(i) 
A repair or replacement of the goods or digital product which must 
be completed within a reasonable time and without any significant 
inconvenience to the consumer, taking into account the nature and 
the purpose for which the consumer acquired such;
(ii) 
A proportionate reduction of the price if the consumer chooses to 
keep the good or digital product despite the lack of conformity


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(iii)
(iv)
(V)
(Vi)
(vii)
(viii)
with the contract, or the termination of the contract with 
restitution of the price, in the following instances:
1. 
When repair or replacement Is impossible or unlawful;
2. 
The online merchant has not completed repair or 
replacement within a reasonable time;
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When repair or replacement may cause significant 
inconvenience to the consumer; or
4. 
When the online merchant has declared, or it is equally 
clear from the circumstances, that the online merchant 
may not bring the goods or digital product in conformity 
with the contract within a reasonable time;
When applicable, the consumer is entitled to withhold the 
payment of any outstanding part of the purchase price until the 
online merchant has brought the goods or digital product in 
conformity with the contract;
The consumer is not entitled to a remedy to the extent that the 
consumer has contributed to any ambiguity or lack of conformity 
with the contract or its effects;
When the online merchant remedies the lack of conformity with 
the contract by replacement, the online merchant is entitled to 
the return of the replaced goods or digital products at the online 
merchant's expense, unless otherwise agreed upon by the 
parties;
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;
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; 
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
10


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online merchant shall refund the full amount paid by the
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consumer.
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(b) 
Consumers of online delivery service platforms may hold delivery carriers
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liable for damages if the latter fail to exercise due diligence and reasonable
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care over the goods transported by them.
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(c) 
To protect the rights of delivery carriers, it shall be unlawful for consumers
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to:
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(i) 
Cancel confirmed orders for the delivery of food or grocery items
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when the said items have already been paid for by, or is already
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in the possession of the online delivery partner or delivery
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service, or is otherwise in transit to the consumer unless:
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1. 
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
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credited notwithstanding the cancellation;
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2. 
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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3. 
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
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the fault or negligence of the online delivery partner or
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delivery service.
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(ii) 
Use the personal information of another person such as, but not
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limited to, name, address, and contact number when registering
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in online delivery service platforms;
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(iii) 
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
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name and/or address; or
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(iv) 
Unreasonably shame, demean, embarrass, or humiliate online
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delivery partners.
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Sec. 14. Right to Terminate the Contract - If the goods or digital products
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delivered do not conform to the contract, the consumer may exercise the right to
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terminate the contract by giving notice to the online merchant. Where the lack of
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conformity relates to only some of the goods or digital products delivered under the
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contract, the consumer may terminate the contract only in relation to the non-conforming
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goods or digital products and any such accessory acquired as an adjunct to the same.
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When the consumer terminates a contract as a whole or in relation to some of the 
non-conforming goods or digital products delivered:
(a) 
The online merchant shall reimburse to the consumer the price paid not 
later than fourteen (14) days from receipt of the notice and without undue 
delay whatsoever;
(b) 
Upon receipt of the reimbursement from the online merchant, the consumer 
shall return, at the online merchant's expense, the goods or digital products 
not later than fourteen (14) days from the receipt of the reimbursement 
and without undue delay whatsoever, provided that the online merchant 
may waive this requirement at any time;
(c) 
When the goods or digital products cannot be returned because of 
destruction or loss, the consumer shall pay the monetary value which the 
non-conforming goods or digital products would have had at the date when 
the return was to be made had they been kept by the consumer without 
destruction or loss until that date, unless the destruction or loss has been 
caused by a lack of conformity of the goods or digital products with the 
contract; and
(d) 
The consumer shall pay for a decrease in the value of the goods or digital 
products only to the extent that the decrease in value exceeds depreciation 
through regular use. The payment for decrease in value shall not exceed 
the price paid for the goods or digital products.
Sec. 15. Damages. - The online merchant is liable for damages to the consumer 
due to the lack of conformity with the contract of the goods or digital products: Provided, 
that such becomes apparent within six (6) months from receipt of the said goods or digital 
product.
No damages may be recovered from this Act after the lapse of two (2) years from 
the time the consumer receives the goods or digital products.
Sec. 16. Online Dispute Resolution. - The DTI shall develop an Online Dispute 
Resolution (ODR) platform which is a single point of entry for parties to e-commerce 
transactions that are seeking out-of-court resolution of disputes when the platforms or 
merchants fail to resolve or assist consumers with their concerns.
(a) The ODR shall be an interactive website accessible electronically and free 
of charge. The DTI, through the Bureau, shall be responsible for its 
operation, including its maintenance, funding, and data security. The ODR 
platform must be user-friendly, easily accessible, and data privacy 
compliant.
12


1 
(b) The DTI shall establish a network of ODR contact points from different
2 
government agencies involved in consumer complaints as specified in
3 
Republic Act No. 7394, otherwise known as the sxConsumer Act of the
4 
Philippine^’, including the Department of Agriculture (DA), Department of
5 
Tourism (DOT), and the Department of Health (DOH), among others. The
6 
Intellectual Property Office of the Philippines (IPO) shall also be part of the
7 
ODR network.
8 
(c) Each agency shall have a designated ODR contact point whose name and
9 
contact information are to be submitted to the DTI. The head of the agency
10 
shall confer responsibility to the respective ODR contact points to ensure
11 
that timely and competent support is provided to the resolution of
12 
complaints and disputes submitted through the ODR platform.
13 
(d) The ODR platform shall have the following functions:
14 
(i) 
Provide an electronic form where alternative dispute resolution
15 
entities shall transmit the information;
16 
(ii) 
Provide a feedback system that will allow parties to express their
17 
views on the efficiency of the ODR platform and on the response
18 
of the entity handling their dispute; and
19 
(iii) 
Make available to the public, general information on alternative
20 
dispute resolution as a means of out-of-court dispute resolution
21 
and the entities which are competent to deal with such disputes.
22 
(e) 
The DTI shall ensure that the information on the website is accurate and
23 
up to date.
24 
(f) 
Online e-commerce platforms and online merchants shall provide on their
25 
websites an electronic link to the DTI-ODR platform on their homepage.
26 
Sec. 17. LiabUity. - An e-marketplace or e-commerce digital platform shall be
27 
solidarily liable with its listed online merchant, after due notice and hearing, under the
28 
following circumstances:
29 
(a) 
If it fails to provide a mechanism for consumers to dispute, be refunded, or
30 
validly cancel orders. For this purpose, refunds to cash-paying customers
31 
should also be in cash;
32 
(b) 
When the online e-commerce platform fails to properly resolve disputes,
33 
refunds, or valid cancellation of orders of consumers within a reasonable
34 
time;
13


1 
(c) 
If it knows or should have known that the goods, services or digital products
2 
sold are illegal, do not comply with existing laws, or otherwise infringe on
3 
intellectual property rights;
4 
(d) 
If it fails to take necessary measures to prevent or curtail the sale or
5 
distribution of the products which are illegal, do not comply with existing
6 
laws, or otherwise infringe on intellectual property rights within a
7 
reasonable period.
8 
Liability shall not attach to the e-marketplace or e-commerce digital
9 
platform in instances when the illegality or infringing nature 
of the goods,
10 
services or digital products advertised, offered for sale, or sold 
through e-
11 
marketplace or e-commerce digital platform is not apparent, provided that:
12 
(i) The online e-commerce platform offers a simple and
13 
straightforward procedure for consumers, rights-holders, or
14 
online merchants to report the existence of illegal or infringing
15 
goods, services or digital products in the platform;
16 
(ii) 
Consumers, rights-holders, and online merchants are properly
17 
informed on the policy implementing such procedure;
18 
(iii) 
Any report of illegal or infringing goods, services or digital
19 
products shall 
be expeditiously acted upon through
20 
investigations, 
suspensions, and take-down measures, if
21 
necessary, by the platform;
22 
(e) 
If the online e-commerce platform fails to comply with the requirements of
23 
this Act involving the collection, publication, and submission of online
24 
merchant information; and
25 
(f) 
If the e-commerce platform operator fails, after notice, to act expeditiously
26 
to remove, or disable access to, goods, services or digital products
27 
appearing on their platform that they know or should have known to be
28 
non-compiiant with law, or otherwise infringe on intellectual property rights.
29 
Sec. 18. E-commerce Philippine Trustmark. - To provide assurance of safety
30 
and security in transactions over the internet, an e-commerce Philippine Trustmark shall
31 
be developed for online merchants.
32 
(a) 
A Trustmark and Trustmark Portal shall be created which shall be
33 
administered and managed by the DTI.
34 
(b) 
A Trustmark on the website of an online merchant signifies that the
35 
company is committed to guarantee honesty, fairness, and integrity in
14


1 
dealing with its customers, and is committed to refrain from engaging in
2 
any illegal, fraudulent, unethical, or unfair business practices.
3 
(c) In case of a complaint involving the purchase of their products or services,
4 
online merchants with the Trustmark shall give consumers the option of
5 
filing claims through the Trustmark portal, if the online merchant's customer
6 
care service has not been able to resolve the issue.
7 
(d) 
The Trustmark shall be linked to the DTTs online dispute resolution.
8 
(e) 
The Trustmark shall be considered an official document for purposes of the
9 
crime of falsification as defined under the Revised Penal Code and other
10 
related laws. Any E-marketplace, e-retailer, online merchant, or e-
11 
commerce digital platform that is found guilty of falsifying or forging the E-
12 
commerce Philippine Trustmark, shall be subjected to a take-down order in
13 
accordance with Section 9 of this Act.
14 
Sec. 19. Implementing Agencies^ Rules, and Regulations. - Within sixty
15 
(60) days from the promulgation of this Act, the necessary rules and regulations shall be
16 
formulated and issued by the DTI, in consultation with the DICT, IPO, DOH, the Food
17 
and Drug Administration (FDA), and other relevant government agencies necessary for
18 
the proper implementation of this Act.
19 
Sec. 20. Jurisdiction of Other Agencies. - The agencies mentioned in Section
20 
19 of this Act shall continue to exercise the powers and duties provided to them under
21 
existing laws, unless repealed or modified accordingly.
22 
Sec. 21. Penalties. -
23 
(a) 
Any e-marketplace, e-retailer, online merchant or e-commerce digital
24 
platform that is found guilty of any deceptive, unfair or unconscionable sales
25 
act or practice as provided for under Republic Act No. 7394 or the
26 
Consumer Act of the Philippine^ done through the internet, shall be
27 
1 subjected to a take-down order in accordance with Section 9 of this Act. It
28 
shall also be punished with a fine of not less than Fifty Thousand Pesos
29 
(PhP50,000.00) but not more than Five Hundred Thousand Pesos
30 
(PhP500,000.00), or an imprisonment of not less than five (5) months but
31 
not more than (1) year, or both, upon the discretion of the court.
32 
(b) 
Any e-marketplace, e-retailer, online merchant or e-commerce digital
33 
platform that sells or allows the sale of illegal, or imminently injurious,
34 
unsafe or dangerous goods, services or digital products shall be subject to
35 
a take-down order in accordance with Section 9 of this Act. It shall also be
36 
punished with: 
i' ;
15
I


1 
(i) 
Imprisonment of one (1) year to three (3) years plus a fine
2 
ranging from Fifty Thousand Pesos (PhP50,000.00) to One
3 
Hundred Fifty Thousand pesos (PhPlSO,000.00) for the first
4 
offense.
5 
(ii) 
Imprisonment of three (3) years and one (1) day to six (6) years
6 
plus a fine ranging from One Hundred Fifty Thousand Pesos
7 
(PhP150/000.00) to Five Hundred Thousand Pesos
8 
(PhP500,000.00) for the second offense.
9 
(iii) 
Imprisonment of six (6) years and one (1) day to nine (9) years
10 
plus a fine ranging from Five Hundred Thousand Pesos
11 
(PhP500,000.00) to One Million Five Hundred Thousand Pesos
12 
(PhPl/500,000.00) for the third and subsequent offenses.
13 
(c) Any e-retailer or online merchant who shall willfully or unreasonably refuse
14 
to provide the remedies under Section 13 (a), shall be subjected to a take-
15 
down order in accordance with Section 9 of this Act, and be punished with
16 
a fine not less than One Hundred Thousand Pesos (PhP100,000.00), but
17 
not more than Three Hundred Thousand Pesos (PhP300,000.00), in addition
18 
to the payment of the actual value of the goods or digital products involved.
19 
(d) Any person who shall violate Section 13 (c) of this Act, shall be punished
20 
with a penalty of arresto mayor or a fine not exceeding One Hundred
21 
Thousand Pesos (PhP100,000), without prejudice to any other available
22 
remedies under existing laws.
23 
In case any violation of this Act is committed by a partnership, corporation or any
24 
juridical entity, the President, the General Manager, and other officers, employees and
25 
agents, who shall consent to, or shall knowingly tolerate such violation shall be criminally
26 
liable.
27 
Sec. 22. Appropriations. - The amount of Fifty Million Pesos
28 
(PhP50,000,000.00) for the initial operation of the Bureau is hereby appropriated out of
29 
any funds in the National Treasury not otherwise appropriated. Thereafter, such sum as
30 
may be necessary for the continued implementation of this Act shall be included in the
31 
annual General Appropriations Act.
32 
Sec. 23. Separability Clause. - Should any provision or part of this Act be
33 
declared unconstitutional or invalid, the other provisions and parts hereof, insofar as they
34 
are separable from the invalid ones, shall remain in full force and effect.
16


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 or
3 
modified accordingly.
4 
Sec. 25. Effectivity Clause. - This Act shall take effect fifteen (15) days after
5 
its publication in the Official Gazette or in at least two (2) newspapers of general
6 
circulation.
Approved,
17