Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEETH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by Representative Rex Gatchalian 
AN ACT 
PROVIDING PROTECTION TO CONSUMERS AND MERCHANTS ENGAGED IN 
INTERNET TRANSACTIONS, CREATING FOR THE PURPOSE THE ELECTRONIC 
COMMERCE BUREAU, AND APPROPRIATING FUNDS THEREFOR 
EXPLANATORY NOTE 
This bill was passed on 3rd reading, transmitted to the Senate during the 18th 
Congress and is now being refiled because there is no denying that eCommerce has 
radically changed the way we live our lives. Whether as a consumer or seller, 
technology and the internet has dramatically transformed the way business is 
conducted. The rise of digital technology saw the emergence of mobile networks and 
rapid advancement in computer technologies. As Bill Gates said, “[digital technology] 
is the center of attention for businesses, governments and individuals around the 
world. It has spawned entirely new industries, transformed existing ones, and become 
a global cultural phenomenon.” 
From the buyer’s perspective, eCommerce is faster, cheaper and more 
convenient.  Consumers are presented with a variety of options to meet their every 
need with a tap of a finger. eCommerce provides the consumers with time-saving 
options and access to swift delivery of goods and services. Finally, it presents value 
for money largely because from the seller’s perspective, set-up costs are lower and 
operating costs are kept at a minimum. It has been said that from an enterprise’s 
perspective, eCommerce is the great equalizer, because MSME’s gain access to the 
same markets at low costs. Furthermore, the importance of eCommerce platforms in 
the ecosystem has become integral as they are able to aggregate multiple 
transactions.  They play a key role in balancing the needs of consumers and sellers 
by facilitating fair and efficient trade between these two players. 
July 1, 2022
9:43 am
779




Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by Representative Rex Gatchalian 
AN ACT 
PROVIDING PROTECTION TO CONSUMERS AND MERCHANTS ENGAGED IN 
INTERNET TRANSACTIONS, CREATING FOR THE PURPOSE THE ELECTRONIC 
COMMERCE BUREAU, AND APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
CHAPTER 1 
1 
GENERAL PROVISIONS 
2 
3 
SECTION 1. Short Title. – This Act shall be known as the “Internet 
4 
Transactions Act”. 
5 
6 
SEC. 2. 
Declaration of Policy. – It is the policy of the State to promote and 
7 
maintain a robust electronic commerce (eCommerce) environment in the country by 
8 
building trust between online merchants and consumers. The State recognizes the 
9 
value and potential of the digital economy to increase competition and improve 
10 
productivity, thus the need to establish secure and reliable eCommerce platforms 
11 
where goods and services are transacted online with appropriate transparency and 
12 
utmost efficiency to encourage the creation of new products, services, business 
13 
models and processes. Towards these ends, the State shall ensure an effective 
14 
regulation of commercial activities through the internet or electronic means to ensure 
15 
that consumer rights and data privacy are protected, innovation is encouraged, fair 
16 
advertising practices and competition are promoted, online transactions are secured, 
17 
intellectual property rights are respected, and where product standards and safety 
18 
are observed. 
19 
20 
779


 
 
 
4 
SEC. 3. 
Definition of Terms. – As used in this Act: 
1 
 
2 
(a) 
Business to business transaction refers to internet transactions 
3 
conducted over marketplaces that facilitate business to business 
4 
electronic sales of new and used merchandise using the internet;  
5 
 
6 
(b) 
Business to consumer transaction refers to the process of selling 
7 
products and services by businesses to consumers who are end-users, 
8 
generally for a profit; 
9 
 
10 
(c) 
Compatibility refers to the ability of the digital content or digital service 
11 
to function with hardware or software with which digital content or 
12 
digital services of the same type are normally used, without the need 
13 
to convert the digital content or digital service; 
14 
 
15 
(d) 
Consumer refers to a person who is a purchaser, lessee, recipient or 
16 
prospective purchaser, lessor or recipient of consumer products, 
17 
services, credit, technology, advertising or promotion, and other items 
18 
in eCommerce; 
19 
 
20 
(e) 
Consumer-to-consumer transactions (C2Cs) refer to one-off, petty, or 
21 
occasional low-value transactions of an individual or group of 
22 
individuals to another that are not made in the ordinary course of 
23 
business of any party to the transaction; 
24 
 
25 
(f) 
Digital content refers to data which are produced and supplied in 
26 
electronic form; 
27 
 
28 
(g) 
Digital service refers to a service that allows the consumer to create, 
29 
process, store or access data in electronic form or allows the sharing 
30 
of or any other interaction with data in electronic form uploaded or 
31 
created by the consumer or other users of that service; 
32 
 
33 
(h) 
Digital financial services refer to services of a financial nature that are 
34 
made available to the public through the internet, including banking 
35 
services, insurance and insurance-related services, payment and 
36 


 
 
 
5 
money transmission services, including remittance services, online 
1 
lending services, online investment services, and other similar or 
2 
related services; 
3 
 
4 
(i) 
Electronic commerce or eCommerce refers to the production, 
5 
distribution, marketing, sale, or delivery of goods and services by 
6 
electronic means; 
7 
 
8 
(j) 
eCommerce platform operator refers to a natural or juridical person that 
9 
solicits the purchase of goods and services through digital platforms 
10 
and marketplaces whose business is to connect consumers and online 
11 
merchants, facilitating sales of products, goods or services through the 
12 
internet with the presence and use of monetary transactions. These 
13 
shall include social media websites and any other similar platforms in 
14 
so far that it is used for business; 
15 
 
16 
(k) 
Functionality refers to the ability of the digital content or digital service 
17 
to perform its functions according to its purpose; 
18 
 
19 
(l) 
Goods refer to physically or digitally produced items over which 
20 
ownership rights may be established and whose economic ownership 
21 
may be passed from one institutional unit to another by engaging in 
22 
transactions; 
23 
 
24 
(m) 
Internet access and service provider refer to an entity that provides 
25 
households, businesses, and government access to the internet 
26 
through the physical transport infrastructure; 
27 
 
(n) 
Internet retailing of consumer goods refers to engaging in any 
28 
eCommerce activity other than online travel services, online media, 
29 
ride hailing services, and digital financial services; 
30 
 
31 
(o) 
Internet transaction refers to the sale or purchase of goods or services, 
32 
whether between businesses, households, individuals, governments, 
33 
and other public or private organizations, conducted over the internet. 
34 
At least one point of these transactions is conducted over the internet 
35 


 
 
 
6 
but the payment and ultimate delivery of the goods or service may be 
1 
conducted on or offline; 
2 
 
3 
(p) 
Interoperability refers to the ability of the digital content or digital 
4 
service to function with hardware or software different from those with 
5 
which digital content or digital services of the same type are normally 
6 
used; 
7 
 
8 
(q) 
Online merchant refers to a natural or juridical person, regardless of 
9 
location, that directly sells, manufactures goods, or offers for sale, any 
10 
good or service, either individually or through a platform, in the 
11 
ordinary course of business, over the internet, through a website, an 
12 
online marketplace, a social media website or application or through 
13 
other similar means; 
14 
 
15 
(r) 
Online media refers to online media products or services pertaining to 
16 
advertising, gaming, subscription music, and video on demand, 
17 
available through an online platform, application, website, webpage, 
18 
social media account, or other similar platforms operated by the 
19 
provider, regardless of whether the provider is authorized to engage in 
20 
eCommerce;  
21 
 
22 
(s) 
Online travel services refer to services that facilitate the reservation, 
23 
purchase or discounting of flights, hotel accommodations, and 
24 
vacation rental spaces, through an online platform, application, 
25 
website, webpage, social media account, or other similar platform 
26 
operated by the provider, regardless of whether the provider is 
27 
authorized to engage in eCommerce in the Philippines;  
28 
 
29 
(t) 
Price refers to money or a digital representation of value that is due in 
30 
exchange for the supply of goods, services, digital content, or digital 
31 
service; 
32 
 
33 
(u) 
Producer refers to the manufacturer or importer of goods, or any person 
34 
purporting to be a manufacturer who places its name, trademark, or 
35 
other distinctive sign on goods; 
36 


 
 
 
7 
 
1 
(v) 
Repair refers to bringing defective goods into conformity with the 
2 
contract; 
3 
 
4 
(w) 
Ride hailing service refers to the delivery of food, goods or other 
5 
merchandise, or of personal transport services, contracted through an 
6 
online platform, application, website, webpage, social media account, 
7 
or other similar platform operated by the provider, regardless of 
8 
whether the provider is authorized to engage in eCommerce in the 
9 
Philippines; 
10 
 
11 
(x) 
Ride hailing service partner refers to third-parties who offer their 
12 
services to transport or deliver food, parcels or any other item, on 
13 
behalf of ride hailing service providers; 
14 
 
15 
(y) 
Ride hailing service provider refers to those, who in the ordinary course 
16 
of trade or business, provide for or facilitate ride hailing services; and 
17 
 
18 
SEC. 4. 
Scope and Coverage. - Unless otherwise specified, this Act shall 
19 
apply to any stage of all business-to-business and business-to-consumer 
20 
eCommerce and internet transactions including those related to the following 
21 
activities: 
22 
 
23 
(a) 
Internet retail of consumer goods and services; 
24 
(b) 
Online travel services; 
25 
(c) 
Online media providers; 
26 
(d) 
Ride hailing services; and 
27 
(e) 
Digital financial services. 
28 
 
29 
Consumer-to-consumer transactions shall be exempt from the operation of 
30 
this Act, without prejudice to the application of other laws. 
31 
 
32 
Unless expressly specified, nothing in this Act shall be construed as to 
33 
diminish or deprive the regulatory jurisdiction conferred by law upon other 
34 
government agencies with respect to regulated services that fall within the scope of 
35 
eCommerce. 
36 


 
 
 
8 
 
1 
SEC. 5. 
Extra-territorial Application. – A person engaging in eCommerce 
2 
who purposefully avails of the Philippine market shall be deemed as doing business 
3 
in the Philippines and be subject to applicable Philippine laws and regulations, 
4 
including this Act. One who purposely avails of the Philippine market without 
5 
establishing any real or legal presence in the Philippines shall be required to notify 
6 
the eCommerce Bureau created under Section 7 of this Act for inclusion in the 
7 
Registry of Online Business established under Section 11 of this Act, or may 
8 
designate a resident agent who shall be authorized to receive on their behalf notices 
9 
or processes in any legal proceeding in the Philippines. The accessibility of goods and 
10 
services to consumers in the Philippines shall be considered in ascertaining whether 
11 
one engaged in eCommerce is purposefully availing the Philippine market.  
12 
 
13 
SEC. 6. 
Equal Treatment of Online and Offline Commercial Activities. 
14 
– Unless otherwise specified, this Act shall be construed to ensure that those who 
15 
engage in eCommerce may not enjoy any benefit that is more favorable, nor be placed 
16 
at a disadvantage, in relation to other enterprises that offer goods and services offline 
17 
in the Philippines.  
18 
 
19 
CHAPTER 2 
20 
ECOMMERCE BUREAU 
21 
 
SEC. 7. 
Creation of the eCommerce Bureau. – To ensure the attainment 
22 
of the objectives of this Act and promote the growth of eCommerce, there is hereby 
23 
created an eCommerce Bureau under the Department of Trade and Industry (DTI), 
24 
hereinafter referred to as the Bureau, which shall be organized within six (6) months 
25 
after the effectivity of this Act. The Bureau shall have the following powers and 
26 
functions: 
27 
 
28 
(a) 
Implement, monitor, and ensure strict compliance by eCommerce 
29 
stakeholders of the provisions of this Act; 
30 
 
31 
(b) 
Build trust between consumers and sellers by requiring eCommerce 
32 
platform operators, online merchants, or any other entity who engages 
33 
in eCommerce to notify or register their business with the Bureau; 
34 
 
35 


 
 
 
9 
(c) 
Formulate policies, plans and programs to ensure the robust and 
1 
dynamic development of eCommerce; 
2 
 
3 
(d) 
Identify regulatory gaps affecting the eCommerce sector that are not 
4 
sufficiently addressed by this Act or by existing laws or regulations, and 
5 
recommend appropriate executive or legislative measures, including 
6 
those that can be undertaken by the DTI on its own, that fosters the 
7 
growth of the sector;   
8 
 
9 
(e) 
Act as a virtual central unit tasked to receive and address consumer 
10 
complaints on internet transactions, facilitate the speedy resolution of 
11 
consumer complaints by the respective government agency which has 
12 
jurisdiction over it, and track complaints referred to or initiated by it to 
13 
ensure the speedy and appropriate action by the agency to which such 
14 
matters have been referred to; 
15 
 
16 
(f) 
Coordinate with, compel or petition whenever appropriate, any entity, 
17 
government agency or instrumentality to take action on any matter that 
18 
may impede eCommerce; 
19 
 
20 
(g) 
Investigate, motu proprio, and file the appropriate cases for violations of 
21 
any provision of this Act; 
22 
 
23 
(h) 
Intervene or participate, in a manner as may be appropriate, in cases 
24 
initiated or pending with other regulatory agencies involving 
25 
eCommerce or violations of any provision of this Act; 
26 
 
27 
(i) 
Monitor internet transactions and undertake consultation with 
28 
stakeholders and affected agencies for the purpose of understanding 
29 
market behavior in order to update policies relevant to online 
30 
transactions;  
31 
 
32 
(j) 
Monitor 
the 
compliance 
of 
other 
government 
agencies 
or 
33 
instrumentalities on their compliance to the provisions of this Act and 
34 
the eCommerce roadmap; 
35 
 
36 


 
 
 
10 
(k) 
Collect, compile, analyze, abstract, and publish eCommerce data for 
1 
policy formulation and program development; 
2 
 
3 
(l) 
Prepare and conduct periodic studies on eCommerce;  
4 
 
5 
(m) 
Collaborate with departments of the National Government including 
6 
local government units and government-owned or controlled 
7 
corporations in implementing programs to promote eCommerce, 
8 
including information, education, and campaign, as well as in 
9 
ensuring a policy regime that is proactive; and 
10 
 
11 
(n) 
Ensure that those who engage in eCommerce may not enjoy any benefit 
12 
that is more favorable, nor be placed at a disadvantage, in relation to 
13 
other enterprises that offer goods and services offline in the 
14 
Philippines. 
15 
 
16 
In the exercise of the above-stated functions, the Bureau, in coordination with 
17 
other government agencies, may convene public consultations or inter-agency 
18 
meetings to ensure multi-stakeholder input in the development of eCommerce 
19 
policies.  
20 
 
21 
Government agencies and instrumentalities involved in the maintenance and 
22 
development of the internet infrastructure of the Philippines, such as the Department 
23 
of Information and Communications Technology (DICT), and the National 
24 
Telecommunications Commission (NTC), shall cooperate with the Bureau on issues 
25 
within their respective regulatory jurisdiction that affect the conduct of eCommerce.  
26 
 
27 
SEC. 8. 
Composition of the Bureau. – The Bureau shall be headed by a 
28 
Director to be appointed by the President of the Philippines, as recommended by the 
29 
Secretary of Trade and Industry.  
30 
 
31 
The Director shall oversee the day-to-day operations of the Bureau and shall 
32 
be assisted by three (3) Assistant Directors each for policy and administration, 
33 
enforcement, and operations. 
34 
 
35 


 
 
 
11 
The Secretary of Trade and Industry shall determine the organizational 
1 
structure and staffing pattern of the Bureau, subject to the approval of the Secretary 
2 
of Budget and Management. 
3 
 
4 
SEC. 9. 
Subpoena - In the exercise of its powers under this Act, the Director 
5 
of the Bureau shall have the power to issue summons, subpoena ad testificandum 
6 
and subpoena duces tecum to alleged violators or witnesses to compel their 
7 
attendance and the production of documents in investigations or proceedings before 
8 
the Bureau.  
9 
 
10 
The failure to comply with a subpoena ad testificandum or subpoena duces 
11 
tecum shall authorize the filing of a case for indirect contempt under the Rules of 
12 
Court with the Regional Trial Court. A certification duly issued by the Bureau that a 
13 
respondent to the subpoena ad testificandum or subpoena duces tecum refused to 
14 
comply with the same, despite due notice, shall be sufficient evidence to authorize 
15 
the Regional Trial Court to cite the respondent for contempt. The Regional Trial Court 
16 
shall likewise have the authority to issue any such order or relief, including 
17 
imprisonment, in order to compel compliance with the subpoena ad testificandum or 
18 
subpoena duces tecum. The Regional Trial Court may, in addition, also issue a 
19 
subpoena ad testificandum or subpoena duces tecum addressed to the respondents 
20 
identical to the one subject of the complaint. 
21 
 
22 
SEC. 10. Authority to Promulgate Rules and Regulations. - As the focal 
23 
authority of the National Government for the development of policies and strategies 
24 
towards the growth of eCommerce, the Bureau shall have the authority to promulgate 
25 
rules and regulations covering areas or activities concerning eCommerce and to 
26 
impose fines to compel compliance with such rules. The grant of this rule-making 
27 
authority to the Bureau shall be ancillary to any duly constituted regulatory 
28 
jurisdiction granted or that may be granted to other government agencies by law, 
29 
including Executive Order No. 292, otherwise known as “the Administrative Code of 
30 
1987”, Republic Act No. 7394, as amended, otherwise known as the “Consumer Act 
31 
of the Philippines”, Republic Act No. 7653, as amended, otherwise known as “The 
32 
New Central Bank Act”, Republic Act No. 8293, as amended, otherwise known as the 
33 
“Intellectual Property Code of the Philippines”, Republic Act No. 8799, otherwise 
34 
known as the “Securities Regulation Code”, Republic Act No. 9239, otherwise known 
35 
as the “Optical Media Act of 2003”, Republic Act No. 9593, otherwise known as the 
36 


 
 
 
12 
“Tourism Act of 2009”, Republic Act No. 10173, otherwise known as the “Data Privacy 
1 
Act of 2012”, Republic Act No. 10667, otherwise known as the “Philippine 
2 
Competition Act”, Republic Act No. 11127, otherwise known as the “National 
3 
Payment Systems Act”, and Republic Act No. 11232, otherwise known as the “Revised 
4 
Corporation Code.” 
5 
 
6 
The Bureau shall defer the exercise of rule-making power to the above-listed 
7 
government agencies conferred by law with regulatory jurisdictions over eCommerce 
8 
providers or platforms, unless the other agency declines to exercise its jurisdiction 
9 
or does not act within a timely manner. 
10 
 
11 
SEC. 11. Registry of Online Business (ROB). – Within a period of one (1) 
12 
year from the effectivity of this Act, the Bureau shall, in coordination with the DICT, 
13 
establish, manage and maintain a ROB which shall provide consumers access to 
14 
data and information of registered online business entities for purposes of verifying 
15 
the validity, existence of and other relevant information pertaining to business 
16 
entities. 
17 
 
18 
The DICT, in consultation with the DTI, National Privacy Commission (NPC), 
19 
the Philippine Competition Commission (PCC) and other concerned agencies, shall 
20 
issue the rules and regulations to govern the development, management, operation, 
21 
and maintenance of the ROB. 
22 
 
23 
CHAPTER 3 
24 
SUPERVISION OF ECOMMERCE 
25 
 
26 
SEC. 12. Authority to Issue Take Down Order. – The Secretary of Trade 
27 
and Industry, upon due notice and hearing regarding violations of this Act, the 
28 
Consumer Act of the Philippines, or any other related trade or consumer laws, 
29 
operating to the grave and irreparable prejudice of a consumer or a rights holder, 
30 
shall have the power to issue an order directing that a website, webpage, online 
31 
application, social media account, or other similar platform, be taken down, made 
32 
inaccessible in the Philippines, or that no entity shall process any payment to any of 
33 
those entities, or otherwise be rendered commercially inoperative, in order to abate 
34 
any further violations. 
35 
 
36 


 
 
 
13 
The said provisional take down order shall be directed against the owner or 
1 
operator of the website, webpage, online application, social media account, as well 
2 
as duly registered internet service providers, and payment gateways or channels. 
3 
Copies of the order shall likewise be served on other government agencies whose 
4 
cooperation would be required for the enforcement of the same. 
5 
 
6 
The order shall remain in effect for a maximum period of thirty (30) days 
7 
unless otherwise extended or made permanent by a judicial order or decision. 
8 
 
9 
SEC. 13. Cease and Desist Order. – The Secretary of Trade and Industry, 
10 
upon due notice and hearing, shall have the power to issue an order directing a 
11 
website, webpage, online application, social media account, or other similar platform 
12 
operating to the grave and irreparable prejudice of a consumer or a rights holder, to 
13 
desist from marketing or offering goods or services that are accessible in the 
14 
Philippines, and directing that no payment shall be made to any entity which is 
15 
marketing or offering such goods or services in violation of this Act, the Consumer 
16 
Act of the Philippines, or any other related trade or consumer laws. 
17 
 
18 
 The cease and desist order shall remain in effect for a maximum of thirty (30) 
19 
days unless otherwise extended or made permanent by a judicial order or decision. 
20 
 
21 
SEC. 14. Referral of Complaints. – The Bureau shall refer any complaint it 
22 
receives involving violation of other laws committed in the course of eCommerce 
23 
activities to the appropriate regulatory authority for action.  If the complaint or 
24 
violation pertains to the violation of the provisions of Republic Act No. 10175, 
25 
otherwise known as the “Cybercrime Prevention Act of 2012”, the matter shall be 
26 
referred to the Department of Justice (DOJ) for appropriate investigation. In cases 
27 
where appropriate, the DTI may itself initiate the formal complaint with the 
28 
appropriate regulatory authority or the DOJ. The Bureau shall track any such 
29 
complaint or referral made to other authorities and coordinate with them to ensure 
30 
that the said matters are duly resolved within a reasonable period.  
31 
 
32 
SEC. 15. Qualifications to Engage in eCommerce. – The following are 
33 
presumed legally authorized to engage in eCommerce in the Philippines in the 
34 
ordinary course of their trade or business: 
35 
 


 
 
 
14 
(a) 
An individual who is duly licensed to do business as a single-proprietor 
1 
with the DTI; 
2 
 
3 
(b) 
A juridical entity that is duly registered with the Securities and 
4 
Exchange Commission (SEC), whether as a corporation, a one-person 
5 
corporation, or as a partnership; 
6 
 
7 
(c) 
A cooperative that is duly licensed by the Cooperative Development 
8 
Authority (CDA); 
9 
 
10 
(d) 
A foreign corporation that is duly licensed by the SEC to transact 
11 
business in the Philippines; and 
12 
 
13 
(e) 
A non-resident foreign individual or juridical entity who has complied 
14 
with Section 5 of this Act. 
15 
 
16 
A resident of the Philippines who engages, abets, or aids in unauthorized 
17 
eCommerce activities in the ordinary course of trade or business shall be subject to 
18 
any appropriate penalty as may be provided by law and shall in the same manner as 
19 
the party engaged in such unauthorized eCommerce activities. 
20 
 
21 
A person who is authorized to engage in eCommerce in the Philippines and 
22 
who facilitates the sale of a digital product or service by one who is not so authorized 
23 
is deemed primarily liable for any obligation, damage, or fine, that may arise from 
24 
the transaction or from the digital product. 
25 
 
26 
A non-resident of the Philippines who engages in eCommerce by purposefully 
27 
availing of the Philippine market may not evade legal liability in the Philippines by 
28 
virtue of non-residency or non-registration, and shall be subject to the same 
29 
obligations and liabilities arising from any transaction as those who are authorized 
30 
to engage in eCommerce in the Philippines. 
31 
 
32 
SEC. 16.  Business Registration. –  
33 
 
34 
(a) 
To encourage the formation of business enterprises, the growth and 
35 
integrated development of the eCommerce market, and protection of 
36 


 
 
 
15 
online consumers, all individuals engaged in eCommerce shall register 
1 
as a business either as a sole proprietor, one-person corporation, 
2 
partnership, corporation, or cooperative. 
3 
 
4 
(b) 
Consistent with Republic Act No. 11032, otherwise known as the “Ease 
5 
of Doing Business and Efficient Government Service Delivery Act of 
6 
2018,” all national government agencies and local government units 
7 
(LGUs) shall make available online registration of business permits and 
8 
licenses particularly for those engaged in eCommerce. 
9 
 
10 
(c) 
The SEC, LGUs, and the CDA shall submit to the Bureau an annual 
11 
list of registered enterprises for monitoring and for purposes of 
12 
maintaining a database of online merchants and eCommerce platform 
13 
operators. 
14 
 
15 
CHAPTER 4 
16 
CONSUMER RIGHTS AND OBLIGATIONS  
17 
INVOLVING INTERNET TRANSACTIONS 
18 
 
19 
SEC. 17. Code of Conduct. – To build trust in internet transactions and to 
20 
protect and uphold the interest of consumers at all times, all businesses engaged in 
21 
eCommerce are expected to act responsibly, consistent with the following principles: 
22 
 
23 
(a) 
Consumers shall be treated with honesty, integrity, and fairness at all 
24 
times;  
25 
 
26 
(b) 
The rights of consumers shall be applied equally; 
27 
 
28 
(c) 
Business entities shall refrain from engaging in illegal, fraudulent, 
29 
unethical, or unfair business practices that harm consumers and shall 
30 
comply with applicable laws and regulations, especially the protection 
31 
of intellectual property rights; 
32 
 
33 
(d) 
Accurate information about goods and services marketed and sold 
34 
online to Philippine consumers shall be given and made available to 
35 
consumers; 
36 


 
 
 
16 
 
1 
(e) 
Goods and services sold online must conform to Philippine regulatory 
2 
standards; 
3 
 
4 
(f) 
The safety of goods and services marketed or sold online must not be 
5 
compromised and products that have been recalled in the offline retail 
6 
market must not be marketed or sold online; 
7 
 
8 
(g) 
Goods and services must be easily accessible, accurately described, 
9 
and promoted through fair advertising and marketing practices; 
10 
 
11 
(h) 
Consumers must be given the correct and complete information about 
12 
costs through a sales invoice or an official receipt detailing the 
13 
particular costs of the good or service purchased, including shipping or 
14 
delivery charges. Hidden charges or additional costs such as customs 
15 
duties or currency conversion charges must be avoided 
16 
 
17 
(i) 
The tracking of deliveries must be provided as part of services of online 
18 
merchants or eCommerce platform operators and goods purchased 
19 
must be delivered within the promised time and in described condition 
20 
to the address provided by the consumer; 
21 
 
22 
(j) 
A cancellation option must be provided wherein consumers are given 
23 
the opportunity to review their online purchases before finally 
24 
confirming their purchase or withdrawing from a confirmed transaction 
25 
in appropriate circumstances; 
26 
 
27 
(k) 
Consumer complaints must be dealt with through fair, easy, 
28 
transparent and equitable mechanisms for consumer redress. If 
29 
warranted, compensation, refund, repair, and replacement should be 
30 
provided to the consumer; 
31 
 
32 
(l) 
Data privacy laws and regulations, including Republic Act No. 10173, 
33 
otherwise known as the “Data Privacy Act of 2012,” and other similar 
34 
laws and regulations shall be strictly complied with; 
35 
 
36 


 
 
 
17 
(m) 
The safety and security of online payments and sensitive data shall be 
1 
safeguarded through the use of secure technology and protocols 
2 
including those evidenced by visible trust certificates or any 
3 
appropriate similar certification as may emerge in the future; 
4 
 
5 
(n) 
The transmission of unsolicited commercial email or bulk email, except 
6 
those subject to the control and discretion of the consumer through 
7 
readily accessible configurations that allow the consumer to choose 
8 
whether they wish to receive or opt-out from commercial messages by 
9 
email or electronic means, must be avoided; 
10 
 
11 
(o) 
The production of fake online reviews or spreading wrong information 
12 
about competitors is improper and must be avoided; 
13 
 
14 
(p) 
Consumers must be educated about the risks of transacting through 
15 
the internet and shall be provided competent and professional advice; 
16 
and 
17 
 
18 
(q) 
Competing fairly with other businesses and adherence to competition 
19 
principles and all applicable competition laws and regulations, 
20 
including Republic Act No. 10667, otherwise known as the “Philippine 
21 
Competition Act”, shall ensure the robust development of eCommerce 
22 
and the economy. 
23 
 
24 
Whenever appropriate, the DTI shall issue the corresponding rules and 
25 
regulations in accordance with international best practices. 
26 
 
27 
SEC. 18. Obligations of eCommerce Platform Operators. – eCommerce 
28 
platform operators shall have the following obligations: 
29 
 
30 
(a) 
Ensure that any commercial communication shall: 
31 
 
32 
(1) 
Be clearly identifiable as a commercial communication; 
33 
 
34 
(2) 
Clearly identify the person on whose behalf the commercial 
35 
communication is made; 
36 


 
 
 
18 
 
1 
(3) 
Clearly identify any promotional offer including any discount, 
2 
premium, or gift, and ensure that any conditions which must be 
3 
met to qualify for it is easily accessible, and presented clearly 
4 
and unambiguously; and 
5 
 
6 
(4) 
Clearly identify any promotional competition or game and ensure 
7 
that any conditions for participation are easily accessible and 
8 
presented clearly and unambiguously; 
9 
 
10 
(b) 
Require all online merchants, prior to the commencement of online 
11 
transactions to submit the following to eCommerce platform operators: 
12 
 
(1) 
Name of the online merchant; 
13 
 
14 
(2) 
Registration documents of the online merchant from the 
15 
appropriate LGU, the DTI or SEC, and the Bureau of Internal 
16 
Revenue (BIR); 
17 
 
18 
(3) 
Geographic address at which the online merchant may be served 
19 
summons or any other judicial processes in its name and behalf; 
20 
 
(4) 
Contact details of the online merchant, such as a mobile or 
21 
landline number, and a valid electronic mail address, which 
22 
makes it possible to immediately and easily contact and 
23 
communicate with the online merchant in a direct and effective 
24 
manner; and 
25 
 
26 
(5) 
Details of any professional body or similar institution with which 
27 
the online merchant is registered, in instances when the online 
28 
merchant exercises a regulated profession; 
29 
 
30 
(c) 
Maintain a file of all online merchants registered under their platform 
31 
containing the information provided by online merchants in paragraph 
32 
(b) of this Section; 
33 
 
34 


 
 
 
19 
(d) 
Publish at a conspicuous part on their website, webpage, social media 
1 
account, or other similar platform, the following general information: 
2 
 
3 
(1) 
Name of the online merchant; 
4 
 
5 
(2) 
Registration documents of the online merchant from the 
6 
appropriate LGU, the DTI or SEC, and the BIR; 
7 
 
8 
(3) 
Geographic address at which the online merchant may be served 
9 
summons or any other judicial processes in its name and behalf; 
10 
 
11 
(4) 
Contact details of the online merchant, a mobile or landline 
12 
number, or a valid electronic mail address, which makes it 
13 
possible to immediately and easily contact and communicate 
14 
with the online merchant and communicate in a direct and 
15 
effective manner, unless the eCommerce online platform 
16 
establishes means to facilitate communication between online 
17 
merchants and consumers; and 
18 
 
19 
(5) 
Details of any professional body or similar institution with which 
20 
the online merchant is registered, in instances when the online 
21 
merchant exercises a regulated profession;  
22 
 
23 
(e) 
Submit to the Bureau a list of all online merchants registered under 
24 
their platform. When an eCommerce platform operator discovers that 
25 
an onboarded online merchant has not obtained registration 
26 
documents from the relevant regulatory agency, it shall report such fact 
27 
to the Bureau within fifteen (15) days from discovery thereof. 
28 
 
29 
(f) 
Cooperate with regulators, in accordance with existing laws and 
30 
regulations, in any investigation, or resolution of consumer complaints. 
31 
 
32 
SEC. 19. Internet Transactions Involving Consumers. – An online 
33 
merchant of goods shall exercise the following responsibilities: 
34 
 
35 


 
 
 
20 
(a) 
Deliver or cause the delivery of goods to the consumer, ensuring that 
1 
the following are complied with: 
2 
 
3 
(1) 
The goods are of the description, type, quantity, and quality, and 
4 
possess the functionality, compatibility, interoperability and 
5 
other features, as required by the sales contract. The online 
6 
merchant must show a digital sample or model of the goods to 
7 
the consumer and the goods possess the quality of and 
8 
correspond to the description of the sample or model; possess 
9 
the qualities and performance features, including in relation to 
10 
functionality, 
compatibility, 
interoperability, 
accessibility, 
11 
continuity, and security, normal for digital content or digital 
12 
services of the same type and of which the consumer may 
13 
reasonably expect; fit for any particular purpose for which the 
14 
consumer requires them and which the consumer made known 
15 
to the online merchant at the time of the conclusion of the 
16 
contract, and which the online merchant has accepted; and 
17 
possess the qualities and performance capabilities indicated in 
18 
any pre-contractual statement which forms an integral part of 
19 
the contract. 
20 
 
21 
(2) 
All goods shall: 
22 
 
23 
(i) 
Be delivered along with the accessories including 
24 
packaging, installation instructions or other instruction 
25 
as the consumer may expect to receive; and 
26 
 
27 
(ii) 
Possess qualities and performance capabilities which are 
28 
normal in goods of the same type and which the consumer 
29 
may expect given the nature of the goods and taking into 
30 
account any public statement made by or on behalf of the 
31 
online merchant or other persons in earlier links of the 
32 
chain of transactions, including the producer, unless the 
33 
online merchant shows that: the online merchant was 
34 
not, and could not reasonably have been aware of the 
35 
statement in question; by the time of conclusion of the 
36 


 
 
 
21 
contract, the statement had been corrected; or the 
1 
decision to buy the goods could not have been influenced 
2 
by the statement. 
3 
 
4 
(b) 
Be liable for any lack of conformity with the contract which exists at 
5 
the time when: 
6 
 
7 
(1) 
The consumer or a person acting on behalf of the consumer has 
8 
acquired the physical possession of the goods, or when the goods 
9 
are handed over to the carrier chosen by the consumer, and that 
10 
carrier was not proffered by the online merchant or where the 
11 
online merchant proposes no means of carriage; 
12 
 
13 
(2) 
The goods have been installed by the online merchant or under 
14 
the online merchant’s responsibility. The time at which the 
15 
installation has been completed shall be considered the time 
16 
when the consumer acquires physical possession of the goods; 
17 
 
18 
(3) 
The goods have been installed by the consumer in accordance 
19 
with the online merchant’s installation instructions. The 
20 
expiration of a reasonable period for installation, which shall not 
21 
be more than thirty (30) days, shall be considered the time when 
22 
the consumer acquires the physical possession of the goods. 
23 
 
24 
(4) 
The goods are incorrectly installed. Any lack of conformity 
25 
resulting from the correct installation is regarded as lack of 
26 
conformity with the contract of the goods if: 
27 
 
(i) 
The goods were installed by the online merchant or under 
28 
the online merchant’s responsibility; and 
29 
 
30 
(ii) 
The goods, intended to be installed by the consumer, were 
31 
installed by the consumer and the correct installation was 
32 
due to a shortcoming in the installation instructions. 
33 
 
34 


 
 
 
22 
(c) 
Where the contract provides that the digital content or digital service is 
1 
to be supplied or made accessible to the consumer over a period of time, 
2 
the online merchant may modify the digital content or digital service 
3 
beyond what is necessary to maintain the digital content or digital 
4 
service in conformity with the contract, if the following conditions are 
5 
met: 
6 
 
7 
(1) 
The contract allows, and provides a valid reason for, such a 
8 
modification; 
9 
 
10 
(2) 
Such a modification is made without additional cost to the 
11 
consumer; and 
12 
 
13 
(3) 
The consumer is informed in a clear and comprehensible 
14 
manner of the modification. 
15 
 
16 
(d) 
Where the online merchant operates its own website, webpage, social 
17 
media account, or any other similar platform, it shall publish on its 
18 
homepage the following: 
19 
 
20 
(1) 
Name of the online merchant; 
21 
 
22 
(2) 
Registration documents of the online the appropriate LGU, the 
23 
DTI or SEC, the BIR, and other appropriate regulatory 
24 
authorities; 
25 
 
26 
(3) 
Geographic address at which the online merchant may be served 
27 
summons or any other judicial processes in its name and behalf; 
28 
 
29 
(4) 
Contact details of the online merchant, a mobile or landline 
30 
number, and a valid electronic mail address, which makes it 
31 
possible to immediately and easily contact and communicate 
32 
with the online merchant and communicate in a direct and 
33 
effective manner; and 
34 
 
35 


 
 
 
23 
(5) 
Details of any professional body or similar institution with which 
1 
the online merchant is registered, in instances when the online 
2 
merchant exercises a regulated profession. 
3 
 
4 
Any agreement is valid only if, at the time of the conclusion of the contract, 
5 
the consumer has knowledge of the specific condition of the goods and the consumer 
6 
has expressly accepted this specific condition when concluding the contract. 
7 
 
8 
SEC. 20. Right to Redress by Online Merchants. – Where the online 
9 
merchant is liable to the consumer because of a lack of conformity with the contract 
10 
resulting from an act or omission by a person in earlier links of the chain of 
11 
transactions, the online merchant is entitled to pursue remedies against the person 
12 
or persons liable in the chain of transactions. 
13 
 
The person against whom the online merchant may pursue remedies and the 
14 
relevant actions and conditions to exercise must be in accordance with the following: 
15 
 
16 
(a) 
Repairs must be completed and replacements delivered within a 
17 
reasonable time and without any significant inconvenience to the 
18 
consumer, taking into account the nature of the goods and the purpose 
19 
for which the consumer acquired the goods; 
20 
 
21 
(b) 
A proportionate reduction of the price or the termination of the 
22 
contract, including restitution of the price, in the following instances: 
23 
 
24 
(1) 
A repair or replacement is impossible or unlawful; 
25 
 
26 
(2) 
The online merchant has not completed repair or replacement 
27 
within a reasonable time; 
28 
 
29 
(3) 
A repair or replacement may cause significant inconvenience to 
30 
the consumer; or 
31 
 
32 
(4) 
The online merchant has declared, or it is equally clear from the 
33 
circumstances that the online merchant may not deliver the 
34 
goods in conformity with the contract within a reasonable time; 
35 


 
 
 
24 
 
1 
(c) 
The consumer is entitled to withhold the payment of any outstanding 
2 
part of the price, until the online merchant has brought the goods into 
3 
conformity with the contract; 
4 
 
5 
(d) 
The consumer is not entitled to a remedy to the extent that the 
6 
consumer has contributed to the lack of conformity with the contract 
7 
or its effects; 
8 
 
9 
(e) 
Where the online merchant remedies the lack of conformity with the 
10 
contract by replacement, the online merchant may take back the 
11 
replaced goods at the online merchant’s expense unless the parties 
12 
have agreed otherwise after the lack of conformity with the contract has 
13 
been brought to the online merchant’s attention by the consumer; 
14 
 
15 
(f) 
Where the consumer had installed the goods in a manner consistent 
16 
with their nature and purpose, before the lack of conformity with the 
17 
contract became apparent, the cost for the removal of the non-
18 
conforming goods and the installation of replacement goods, and all 
19 
associated costs shall be for the account of the online merchant; 
20 
 
(g) 
In case of goods that do not conform to the contract, the consumer is 
21 
not liable to pay for using the non-conforming goods prior to its 
22 
replacement; 
23 
 
24 
(h) 
The consumer may choose between repair and replacement unless the 
25 
option chosen is impossible, unlawful or, imposes costs upon the online 
26 
merchant 
that 
is 
disproportionate, 
taking 
into 
account 
all 
27 
circumstances, including: 
28 
 
29 
(1) 
The value of the goods if the goods conformed to the contract; 
30 
 
31 
(2) 
The significance of the lack of conformity with the contract; and 
32 
 
33 
(3) 
Whether the alternative remedy may be completed without 
34 
significant inconvenience to the consumer. 
35 


 
 
 
25 
 
1 
The reduction of price should be proportionate to the decrease in the value of 
2 
the goods which were received by the consumer compared to the value the goods 
3 
would have if in conformity with the contract. 
4 
 
5 
SEC. 21. Obligations of Ride Hailing Service Providers. – Ride hailing 
6 
service providers shall require its consumers to register by showing valid proof of 
7 
identity, email address or cellular phone number. Ride hailing service providers shall 
8 
make the identity of its providers and support staff available to the rider at all times. 
9 
 
SEC. 22. Obligations of Consumers of Ride Hailing Services. – It shall be 
10 
unlawful for consumers of ride hailing services to: 
11 
 
12 
(a) 
Cancel confirmed orders for the delivery of food or grocery items when 
13 
the said items have already been paid by or is already in the possession 
14 
of the Ride Hailing Service Partner or is otherwise in transit to the 
15 
consumer unless: 
16 
 
17 
(1) 
 The consumer uses credit card services as a means for the 
18 
payment of the service and the payment will still be credited 
19 
notwithstanding the cancellation; 
20 
 
21 
(2) 
The consumer remits the reimbursement and payment to the 
22 
Ride Hailing Service Partner as a pre-condition for the 
23 
cancellation of the order; or 
24 
 
25 
(3) 
The delivery of ordered food or grocery items will be or was 
26 
delayed for at least one (1) hour from the expected time of arrival 
27 
due to the fault or negligence of the Ride Hailing Service Partner. 
28 
 
29 
(b) 
Unreasonably shame, demean, embarrass, or humiliate ride hailing 
30 
service partners. The consumer may invoke as a defense of good faith, 
31 
a well-founded belief that the ride hailing service partner had 
32 
committed a crime or caused civil injury towards the consumer. 
33 
 
34 


 
 
 
26 
SEC. 23. Right to Terminate the Contract. – If the goods delivered do not 
1 
conform to the contract, the consumer may exercise the right to terminate the 
2 
contract by giving notice to the online merchant. Where the lack of conformity relates 
3 
to only some of the goods delivered under the contract, the consumer may terminate 
4 
the contract only in relation to the non-conforming good and any other goods which 
5 
was acquired as an accessory to it.  
6 
 
7 
Where the consumer terminates a contract as a whole or in relation to some 
8 
of the goods delivered: 
9 
 
10 
(a) 
The online merchant shall reimburse to the consumer the price paid 
11 
without undue delay and in any event not later than fourteen (14) days 
12 
from receipt of the notice; 
13 
 
14 
(b) 
Upon receipt of the reimbursement from the online merchant, the 
15 
consumer shall return, at the online merchant’s expense, the goods 
16 
without undue delay and in any event not later than fourteen (14) days 
17 
from the receipt of the reimbursement; 
18 
 
19 
(c) 
Where the goods cannot be returned because of destruction or loss 
20 
caused by the negligence of the consumer, the consumer shall pay to 
21 
the online merchant the monetary value which the non-conforming 
22 
goods would have had at the date when the return was to be made if 
23 
they had been kept by the consumer without destruction or loss until 
24 
that date, unless the destruction or loss has been caused by a lack of 
25 
conformity with the goods with the contract, within fourteen (14) days  
26 
from receipt of reimbursement; and 
27 
 
28 
(d) 
The consumer shall pay for a decrease in the value of the goods only to 
29 
the extent that the decrease in value exceeds depreciation through 
30 
regular use. The payment for decrease in value shall not exceed the 
31 
price paid for the goods. 
32 
 
33 
SEC. 24.  Damages. – The online merchant is liable for damages to the 
34 
consumer due to the lack of conformity with the contract of the goods. The consumer 
35 


 
 
 
27 
may claim damages within two (2) years from the relevant time of establishing 
1 
conformity. 
2 
 
3 
No damages may be recovered by virtue of this Act after the lapse of four (4) 
4 
years from the time the conformity has been established. 
5 
 
6 
SEC. 25. Online Dispute Resolution. – The DTI shall develop an online 
7 
dispute resolution (ODR) platform which is a single point of entry for consumers, 
8 
online merchants, and eCommerce platform operators seeking out-of-court 
9 
resolution of disputes. 
10 
 
(a) 
The ODR shall be an interactive website which may be accessed 
11 
electronically and free of charge. The DTI, through the Bureau, shall 
12 
be responsible for its operation, including its maintenance, funding 
13 
and data security. The ODR platform must be user-friendly and must 
14 
adopt the twin principles of “privacy by design” and “design for all”, 
15 
where the privacy of its users is respected, and the ODR platform is 
16 
accessible and usable by all users. 
17 
 
18 
(b) 
The DTI shall establish a network of ODR contact points from, among 
19 
others, the agencies involved in consumer complaints specified in 
20 
Republic Act No. 7394, otherwise known as the “Consumer Act of the 
21 
Philippines,” which includes the DTI’s Fair Trade Enforcement 
22 
Bureau, Department of Agriculture, Department of Tourism (DOT), 
23 
and the Department of Health (DOH). The National Privacy 
24 
Commission and the Intellectual Property Office of the Philippines 
25 
shall also form part of the ODR network. 
26 
 
27 
(c) 
Each agency shall designate one ODR contact point and communicate 
28 
its name and contact details to the DTI. The head of agency shall 
29 
confer responsibility to the ODR contact points in ensuring that timely 
30 
and competent support is provided to the resolution of disputes 
31 
relating to complaints submitted through the ODR platform. 
32 
 
33 
(d) 
The ODR platform shall have the following functions: 
34 
 
35 


 
 
 
28 
(1) 
Provide an electronic form by means of which alternative dispute 
1 
resolution (ADR) entities shall transmit the information; 
2 
 
3 
(2) 
Provide a feedback system which allows the parties to express 
4 
their views on the functioning of the ODR platform and on the 
5 
ADR entity which handles their dispute; and 
6 
 
(3) 
Make publicly available general information on ADR as a means 
7 
of out-of-court dispute resolution and information on ADR 
8 
entities which are competent to deal with disputes. 
9 
 
10 
(e) 
The DTI shall ensure that the information in the website is accurate, 
11 
up to date and provided in a clear, understandable and accessible way. 
12 
 
13 
(f) 
Government and private sector entities which provide ADR services 
14 
which are competent to deal with disputes shall be registered 
15 
electronically with the ODR platform. 
16 
 
17 
(g) 
Digital platforms and online retailers shall provide on their websites an 
18 
electronic link to the DTI ODR platform on their homepage. That link 
19 
shall be easily accessible to consumers. 
20 
 
21 
(h) 
The DTI, in consultation with other concerned agencies, shall issue the 
22 
implementing rules and regulations on the development, management, 
23 
operations, and maintenance of the ODR platform. 
24 
 
25 
SEC. 26. Solidary Liability. – eCommerce Platform Operators shall, for civil 
26 
or administrative indemnity, be solidarily liable with an online merchant under the 
27 
following instances: 
28 
 
29 
(a) 
If the eCommerce platform operator fails to exercise ordinary diligence 
30 
to prevent any loss or damage to the consumer; 
31 
 
32 
(b) 
If the identity of the online merchant and the eCommerce platform 
33 
operator are the same; 
34 
 
35 


 
 
 
29 
(c) 
If the eCommerce platform operator knows or should have known that 
1 
the goods and services appearing on their platform do not comply with 
2 
the provisions of law, or otherwise infringes on intellectual property 
3 
rights, and fails to take necessary measures; 
4 
 
(d) 
If the eCommerce platform operator fails to publish details of its online 
5 
merchant; 
6 
 
7 
(e) 
If the eCommerce platform operator fails to examine goods related to 
8 
food, drugs, and cosmetics or otherwise relates to the life or health of 
9 
consumers; 
10 
 
11 
(f) 
If the eCommerce platform operator permits an online merchant, not 
12 
duly registered with the appropriate regulatory agencies, to offer its 
13 
goods and services for sale. 
14 
 
15 
SEC. 27. Digital Payments. – eCommerce platform operators and online 
16 
merchants shall issue the appropriate paper or electronic invoices or receipts for all 
17 
sales in accordance with relevant internal revenue laws and regulations. An 
18 
electronic invoice or receipt shall have the same legal effect as a physical invoice or 
19 
receipt.  
20 
 
21 
The DTI, through the Bureau, shall, in coordination with the Bangko Sentral 
22 
ng Pilipinas, Bureau of Internal Revenue, Bureau of Customs, DOJ, Philippine 
23 
National Police, DICT, and NTC, issue rules and regulations to modernize and 
24 
streamline the regulatory framework and encourage the adoption of electronic 
25 
payment systems by the citizenry. The DTI shall also develop guidelines to protect 
26 
merchants and consumers covering the various digital payment solutions. 
27 
 
28 
SEC. 28. Enforcement of Rights and Remedies – Without prejudice to 
29 
existing remedies provided under other laws, the enforcement of the rights and 
30 
remedies established under this Chapter shall be through the following means: 
31 
 
32 
(a) 
If involving complaints by a consumer where no damages are sought, 
33 
the complaint shall be treated as a consumer complaint with the DTI 
34 
pursuant to Title V, Chapter III, of the Consumer Act of the Philippines; 
35 


 
 
 
30 
 
1 
(b) 
If involving a claim for damages, the injured party shall seek recovery 
2 
by filing a civil action with the appropriate trial court.  
3 
 
4 
CHAPTER 5 
5 
ELECTRONIC COMMERCE PHILIPPINE TRUSTMARK 
6 
 
7 
SEC. 29. eCommerce Philippine Trustmark. – To provide assurance of 
8 
safety and security in internet transactions, the DTI shall lead the development of an 
9 
eCommerce Philippine Trustmark hereinafter referred to as the, “Trustmark”, which 
10 
may be established and operated by an industry-led private sector governance body. 
11 
The DTI shall periodically assess the effectiveness of the industry-led Trustmark in 
12 
promoting to the public reliable and trustworthy eCommerce services, and may opt 
13 
to assume operational control over the Trustmark if it determines that the industry-
14 
led private sector effort insufficiently achieves the goals of the Trustmark. 
15 
 
16 
CHAPTER 6 
17 
FINAL PROVISIONS 
18 
 
19 
SEC. 30. Penalties. –  
20 
 
21 
(a) 
Online merchants who fail to register either as a sole proprietor, one-
22 
person corporation, partnership, corporation, or cooperative, shall be 
23 
punished with an a fine equivalent to one hundred percent (100%) of 
24 
the amount of the digital goods offered or sold based on the market 
25 
price as determined by the Bureau, including confiscation of the goods 
26 
as advertised; 
27 
 
28 
(b) 
eCommerce platform operators and online merchants found guilty of 
29 
violating Section 18, or Section 19 (d) of this Act shall be punished 
30 
with a fine not less than Five hundred thousand pesos (P500,000.00) 
31 
but not more than Five million pesos (P5,000,000.00) or the revocation 
32 
of their licenses, or both, at the discretion of the courts.  
33 
 
34 
(c) 
Ride hailing service providers found guilty of violating Section 21 of this 
35 
Act shall be punished with a fine of up to Five hundred thousand pesos 
36 


 
 
 
31 
(P500,000.00) or the revocation of their licenses, or both, at the 
1 
discretion of the courts. 
2 
 
3 
(d) 
Consumers found guilty of violating Section 22 (a) of this Act shall be 
4 
punished with a fine of up to Fifty thousand pesos (P50,000.00) plus 
5 
one hundred percent (100%) of the amount advanced by the ride 
6 
hailing service partner, or both, at the discretion of the courts. 
7 
 
8 
(e) 
Consumers found guilty of violating Section 22 (b) and Section 23 (b) of 
9 
this Act shall be punished with a fine of up to Fifty thousand pesos 
10 
(P50,000.00), at the discretion of the courts. 
11 
 
12 
The application of these penalties shall be without prejudice to the liability of 
13 
the offending party under other laws or regulations.  
14 
 
15 
SEC. 31. Oversight Committee. – There is hereby created a Congressional 
16 
Oversight Committee, hereinafter referred to as the Internet Transactions Act  
17 
Congressional Oversight Committee, to be composed of five (5) members from the 
18 
Senate, which shall include the Chairpersons of the Senate Committees on Trade, 
19 
Commerce and Entrepreneurship, Science and Technology, and Finance, and  five 
20 
(5) members from the House of Representatives, which shall include the 
21 
Chairpersons of the House of Representatives Committees on Trade and Industry, 
22 
ICT, and Appropriations. The Internet Transactions Act Congressional Oversight 
23 
Committee shall be jointly chaired by the Chairpersons of the Senate Committee on 
24 
Trade and Commerce and the House of Representatives Committee on Trade and 
25 
Industry. It shall meet at least every quarter of the first two years and every semester 
26 
for the third year after the approval of this Act to review   the implementation of this 
27 
Act,  evaluate the Bureau on its functions as the lead agency, determine any inherent 
28 
weaknesses in the law,  and recommend the necessary remedial legislation or 
29 
executive measures: Provided, That the Internet Transactions Act Congressional 
30 
Oversight Committee shall cease to exist after five (5) years upon the effectivity of 
31 
this Act. 
32 
 
33 
 The Secretariat of the Internet Transactions Act Congressional Oversight 
34 
Committee shall be drawn from the existing personnel of the Senate and House of 
35 


 
 
 
32 
Representatives Committees comprising the Internet Transactions Act Congressional 
1 
Oversight Committee. 
2 
 
3 
SEC. 32. Implementing Rules and Regulations. – The Secretary of Trade 
4 
and Industry shall, in consultation with the DICT, Bangko Sentral ng Pilipinas, the 
5 
Department of Tourism, the Land Transportation Franchising and Regulatory Board, 
6 
the Optical Media Board, and the Intellectual Property Office, and other relevant 
7 
government agencies and stakeholders, develop and issue the implementing rules 
8 
and regulations of this Act. 
9 
 
10 
SEC. 33. Transitory Provisions. – To ensure the continued implementation 
11 
of programs to promote eCommerce, the current eCommerce Division shall continue 
12 
to exercise its functions until such time that the organizational structure and 
13 
personnel of the Bureau have been determined and approved. 
14 
 
15 
All affected officers and personnel of the eCommerce Division shall be  
16 
absorbed by the Bureau without demotion in rank or diminution of salaries, benefits 
17 
and other privileges. 
18 
 
19 
SEC. 34. Appropriations. –The amount necessary to carry out the 
20 
provisions of this Act shall be included in the annual General Appropriations Act. 
21 
 
22 
SEC. 35. Separability Clause. – If any provision or part of this Act is 
23 
declared invalid or unconstitutional, such declaration shall not affect the validity of 
24 
the remaining provisions of this Act. 
25 
 
26 
SEC. 36. Repealing Clause. – All laws, rules, and regulations, presidential 
27 
decrees, letters of instruction and other presidential issuances which are 
28 
incompatible or inconsistent with the provisions of this Act are hereby repealed, 
29 
amended, or modified accordingly. 
30 
 
31 
SEC. 37. Effectivity – This Act shall take effect fifteen (15) days after its 
32 
publication in the Official Gazette or in at least one (1) newspaper of general 
33 
circulation. It shall also be published online, through the Official Gazette Online 
34 
(www.officialgazette.gov.ph), and on the website of the Department of Trade and 
35 
Industry (www.dti.gov.ph). 
36 


 
 
 
33 
 
1 
Approved, 
2