Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _________ 
Introduced by 4Ps Partylist Representative 
JONATHAN CLEMENT M. ABALOS II 
EXPLANATORY NOTE 
The business-to-consumer (B2C) online commerce landscape is 
changing rapidly, supported by technological innovation. However, its 
diffusion remains concentrated in developed and large economies and is 
creating a digital divide that excludes small and medium-sized enterprises and 
people with limited means. The coronavirus disease (COVID-19) pandemic 
exposed an urgent need to close the divide, both within and across industries. 
Electronic commerce (e-commerce) has been hailed as a disruptive 
technological innovation that has radically transformed business-to-consumer 
(B2C) interactions in both domestic and cross-border retail sales by providing 
advanced tools for building audience engagement, reaching customers, 
improving sales, and improving efficiency and productivity. The internet retail 
landscape is again transforming with the advent of mobile commerce (m-
commerce), the buying and selling of goods and services through wireless 
handheld devices such as smartphones and tablets. This puts shopping literally 
at consumers’ fingertips while creating unprecedented opportunities for 
businesses and signaling a new era of growth in online retailing. These 
developments are made possible by the rapid innovation in information and 
communication technology (ICT), particularly rapid advancements in internet 
technology and tablets and smartphones. However, as fast as these advances 
occur, they have been limited largely to developed and large economies. 
Hence, this law aims to promote and maintain a robust electronic 
commerce environment in the country by building trust between online 
merchants and consumers. This law enhances the digital economy to increase 
competition and improve productivity to address the need to establish secure 
and reliable Commerce platforms where goods and services are transacted 
online with appropriate transparency and utmost efficiency to encourage the 
creation of new products, services, business models and processes. The passage 
of this law ensures effective regulation of commercial activities through the 
internet or electronic means to assure that consumer rights and data privacy 
are protected, innovation is encouraged, fair advertising practices and 
competition are promoted, online transactions are secured, intellectual 
property rights are respected, and where product standards and safety are 
observed. 
July 28, 2022
5:17 pm
2732


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This bill was previously filed by Rep. Villafuerte and was approved by 
the House of Representatives on Third Reading in the 18th Congress.  
To this end, the approval of the bill is earnestly sought. 
JONATHAN CLEMENT M. ABALOS II 
Representative, 4Ps Partylist


1 
Republic of the Philippines  
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
 First Regular Session 
HOUSE BILL NO. _________ 
Introduced by 4Ps Representative 
JONATHAN CLEMENT M. ABALOS II 
AN ACT PROVIDING PROTECTION TO CONSUMERS AND 
MERCHANTS ENGAGED IN INTERNET TRANSACTIONS, CREATING 
FOR THE PURPOSE THE ELECTRONIC COMMERCE BUREAU, 
AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
CHAPTER 1 
GENERAL PROVISIONS 
SECTION 1. Short Title. — This Act shall be known as the “Internet 
Transactions Act”. 
SEC. 2. Declaration of Policy. — It is the policy of the State to promote and 
maintain a robust electronic commerce (eCommerce) environment in the 
country by building trust between online merchants and consumers. The State 
recognizes the value and potential of the digital economy to increase 
competition and improve productivity, thus the need to establish secure and 
reliable eCommerce platforms where goods and services are transacted online 
with appropriate transparency md utmost efficiency to encourage the creation 
of new products, services, business models and processes. Towards these ends, 
the State shall ensure an effective regulation of commercial activities through 
the internet or electronic means to ensure that consumer rights and data 
privacy are protected, innovation is encouraged, fair advertising practices and 
competition are promoted, online transactions are secured, intellectual 
property rights are respected, and where product standards and safety are 
observed. 
SEC. 3. Definition of Terms. — As used in this Act: 
2732


2 
(a)
Business to business transaction refers to internet transactions
conducted over marketplaces that facilitate business to business electronic sales 
of new and used merchandise using the internet; 
(b)
Business to consumer transaction refers to the process of selling
products and services by businesses to consumers who are end-users, generally 
for a profit'; 
(c)
Compatibility refers to the ability of the digital content or digital
service to function with hardware or software with which digital content or 
digital services of the same type are normally used, without the need to convert 
the digital content or digital service; 
(d)
Consumer refers to a person who is a purchaser, lessee, recipient
or prospective purchaser, lessor or recipient of consumer products, services, 
credit, technology, advertising or promotion, and other items in eCommerce; 
(e)
Consumer-to-consumer transactions (C2Cs) refer to one-off, petty,
or occasional low-value transactions of an individual or group of individuals 
to another that are not made in the ordinary course of business of any party to 
the transaction; 
(f)
Digital content refers to data which are produced and supplied in
electronic form; 
(g)
Digital service refers to a service that allows the consumer to
create, process, store or access data in electronic form or allows the sharing of 
or any other interaction with data in electronic form uploaded or created by the 
consumer or other users of that service; 
(h)
Digital financial services refer to services of a financial nature that
are made available to the public through the internet, including banking 
services, insurance and insurance-related services, payment and money 
transmission services, including remittance services, online lending services, 
online investment services, and other similar or related services; 
(i)
Electronic commerce or eCommerce refers to the production,
distribution, marketing, sale, or delivery of goods and services by electronic 
means; 
(j)
eCommerce platform operator refers to a natural or juridical person
that solicits the purchase of goods and services through digital platforms and 
marketplaces whose business is to connect consumers and online merchants, 
facilitating sales of products, goods or services through the internet with the 
presence and use of monetary transactions. These shall include social media 
websites and any other similar platforms in so far that it is used for business; 
(k)
Functionality refers to the ability of the digital content or digital
service to perform its functions according to its purpose; 


3 
(l)
Goods refer to physically or digitally produced items over which
ownership rights may be established and whose economic ownership may be 
passed from one institutional unit to another by engaging in transactions; 
(m)
Internet access and service provider refer to an entity that provides
households, businesses and government access to the internet through the 
physical transport infrastructure; 
(n)
Internet retailing of consumer goods refers to engaging in any
eCommerce activity other than online travel services, online media, ride hailing 
services, and digital financial services; 
(o)
Internet transaction refers to the sale or purchase of goods or
services, whether between businesses, households, individuals, governments, 
and other public or private organizations, conducted over the internet. At least 
one point of these transactions is conducted over the internet but the payment 
and ultimate delivery of the goods or service may be conducted on or offline; 
(p)
Interoperability refers to the ability of the digital content or digital
service to function with hardware or software different from those with which 
digital content or digital services of the same type are normally used; 
(q)
Online merchant refers to a natural or juridical person, regardless
of location, that directly sells, manufactures goods, or offers for sale, any good 
or service, either individually or through a platform, in the ordinary course of 
business, over the internet, through a website, an online marketplace, a social 
media website or application or through other similar means; 
(r)
Online media refers to digital media products or services
pertaining to advertising, gaming, subscription music, and video on demand, 
available through an online platform, application, website, webpage, social 
media account, or other similar platforms operated by the provider, regardless 
of whether the provider is authorized to engage in eCommerce; 
(s)
Online travel services refer to services that facilitate the reservation,
purchase or discounting of flights, hotel accommodations, and vacation rental 
spaces, through an online platform, application, website, webpage, social 
media account, or other similar platform operated by the provider, regardless 
of whether the provider is authorized to engage in eCommerce in the 
Philippines; 
(t)
Price refers to money or a digital representation of value that is
due in exchange for the supply of goods, services, digital content, or digital 
service; 
(u)
Producer refers to the manufacturer or importer of goods, or any
person purporting to be a manufacturer who places its name, trademark, or 
other distinctive sign on goods; 
(v)
Repair refers to bringing defective goods into conformity with the
contract; 


 
4 
 
(w) 
Ride-hailing service refers to the delivery of food, goods or other 
merchandise, or of personal transport services, contracted through an online 
platform, application, website, webpage, social media account, or other similar 
platform operated by the provider, regardless of whether the provider is 
authorized to engage in eCommerce in the Philippines; 
(x) 
Ride-hailing service partner refers to third-parties who offer their 
services to transport or deliver food, parcels or any other item, on behalf of ride 
hailing service providers; and 
(y) 
Ride-hailing service provider refers to those, who in the ordinary 
course of trade or business, provide for or facilitate ride hailing services.  
SEC. 4. Scope and Coverage. — Unless otherwise specified, this Act shall 
apply to any stage of all business-to-business and business-to-consumer 
eCommerce and internet transactions including those related to the following 
activities: 
a) 
Internet retail of consumer goods and services; 
b) 
Online travel services; 
c) 
Online media providers; 
d) 
Ride hailing services; and  
e) 
Digital financial services. 
Consumer-to-consumer transactions shall be exempt from the operation 
of this Act, without prejudice to the application of other laws. 
Unless expressly specified, nothing in this Act shall be construed as to 
diminish or deprive the regulatory jurisdiction conferred by law upon other 
government agencies with respect to regulated services that fall within the 
scope of eCommerce. 
SEC. 5. Extra-territorial Application. — A person engaging in eCommerce 
who purposefully avails of the Philippine market shall be deemed as doing 
business in the Philippines and be subject to applicable Philippine laws and 
regulations, including this Act. One who purposely avails of the Philippine 
market without establishing any real or legal presence in the Philippines shall 
be required to notify the eCommerce Bureau created under Section 7 of this Act 
for inclusion in the Registry of Online Business established under Section 11 of 
this Act, or may designate a resident agent who shall be authorized to receive 
on their behalf notices or processes in any legal proceeding in the Philippines. 
The accessibility of goods and services to consumers in the Philippines shall be 
considered in ascertaining whether one engaged in eCommerce is purposefully 
availing the Philippine market. 
 


 
5 
 
SEC. 6. Equal Treatment of Online and Offline Commercial Activities. — 
Unless otherwise specified, this Act shall be construed to ensure that those who 
engage in eCommerce may not enjoy any benefit that is more favorable, nor be 
placed at a disadvantage, in relation to other enterprises that offer goods and 
services offline in the Philippines. 
 
CHAPTER 2 
ECOMMERCE BUREAU 
 
SEC. 7. Creation of the eCommerce Bureau. — To ensure the attainment of 
the objectives of this Act and promote the growth of eCommerce, there is 
hereby created an eCommerce Bureau under the Department of Trade and 
Industry (DTI), hereinafter referred to as the Bureau, which shall be organized 
within six (6) months after the effectivity of this Act. The Bureau shall have the 
following powers and functions: 
a) 
Implement, monitor, and ensure strict compliance by eCommerce 
stakeholders of the provisions of this Act; 
b) 
Build trust between consumers and sellers by requiring 
eCommerce platform operators, online merchants, or any other entity who 
engages in eCommerce to register their business with the Bureau; 
c) 
Formulate policies, plans and programs to ensure the robust and 
dynamic development of eCommerce; 
d) 
Identify regulatory gaps affecting the ecommerce sector that are 
not sufficiently addressed by this Act or by existing laws or regulations, and 
recommend appropriate executive or legislative measures, including those 
that can be undertaken by the DTI on its own, that fosters the growth of the 
sector; 
e) 
Act as a virtu at central unit tasked to receive and address 
consumer complaints on internet transactions, facilitate the speedy resolution 
of consumer complaints by the respective government agency which has 
jurisdiction over it, and track complaints referred to or initiated by it to ensure 
the speedy and appropriate action by the agency to which such matters have 
been referred to;  
f) 
Coordinate with, compel or petition whenever appropriate, any 
entity, government agency or instrumentality to take action on any matter that 
may impede eCommerce; 
g) 
Investigate, motu proprio, and file the appropriate cases for 
violations of any provision of this Act; 


 
6 
 
h) 
Intervene or participate, in a manner as may be appropriate, in 
cases initiated or pending with other regulatory agencies involving 
eCommerce or violations of any provision of this Act; 
i) 
Monitor internet transactions and undertake consultations with 
stakeholders and affected agencies for the purpose of understanding market 
behavior in order to update policies relevant to online transactions; 
j) 
Monitor the compliance of other government agencies or 
instrumentalities on their compliance to the provisions of this Act and the 
eCommerce roadmap; 
k) 
Collect, compile, analyze, abstract, and publish eCommerce data 
for policy formulation and program development; 
l) 
Prepare and conduct periodic studies on eCommerce; 
m) 
Collaborate with departments of the National Government 
including local government units and government-owned or controlled 
corporations in implementing programs to promote eCommerce, including 
information, education, and campaign, as well as in ensuring a policy regime 
that is proactive; and 
n) 
Ensure that those who engage in eCommerce may not enjoy any 
benefit that is more favorable, nor be placed at a disadvantage, in relation to 
other enterprises that offer goods and services offline in the Philippines. 
In the exercise of the above-stated functions, the Bureau, in coordination 
with other government agencies, may convene public consultations or inter-
agency meetings to ensure multi-stakeholder input in the development of 
eCommerce policies. 
Government 
agencies 
and 
instrumentalities 
involved 
in 
the 
maintenance and development of the internet infrastructure of the Philippines, 
such as the Department of Information and Communications Technology 
(DICT) and the National Telecommunications Commission (NTC), shall 
cooperate with the Bureau on issues within their respective regulatory 
jurisdiction that effect the conduct of eCommerce. 
SEC. 8. Composition of the Bureau. — The Bureau shall be headed by a 
Director to be appointed by the President of the Philippines, as recommended 
by the Secretary of Trade and Industry. 
The Director shall oversee the day-to-day operations of the Bureau and 
shall be assisted by three (3) Assistant Directors each for policy and 
administration, enforcement, and operations. 
The Secretary of Trade and Industry shall determine the organizational 
structure and staffing pattern of the Bureau, subject to the approval of the 
Secretary of Budget and Management. 


 
7 
 
SEC. 9. Subpoena. — In the exercise of its powers under this Act, the 
Director of the Bureau shall have the power to issue summons, subpoena ad 
testificandum and subpoena duces tecum to alleged violators or witnesses to 
compel their attendance and the production of documents in investigations or 
proceedings before the Bureau. 
The failure to comply with a subpoena ad testificandum or subpoena 
duces tecum shall authorize the filing of a case for indirect contempt under the 
Rules of Court with the Regional Trial Court. A certification duly issued by the 
Bureau that a respondent to the subpoena ad testificandum or subpoena duces 
tecum refuses to comply with the same, despite due notice, shall be sufficient 
evidence to authorize the Regional Trial Court to cite the respondent with 
contempt. The Regional Trial Court shall likewise have the authority to issue 
any such order or relief, including imprisonment, in order to compel 
compliance with the subpoena ad testificandum or subpoena duces tecum. The 
Regional Trial Court may, in addition, also issue a subpoena ad testificandum 
or subpoena duces tecum addressed to the respondents identical to the one 
subject of the complaint. 
SEC. 10. Authority to Promulgate Rules and Regulations. — As the focal 
authority of the National Government for the development of policies and 
strategies towards the growth of eCommerce, the Bureau shall have the 
authority to promulgate rules and regulations covering areas or activities 
concerning eCommerce and to impose fines to compel compliance with such 
rules. The grant of this rule-making authority to the Bure au shall be ancillary 
to any duly constituted regulatory jurisdiction granted or that may be granted 
to other government agencies by law, including Executive Order No. 292, series 
of 1987, instituting the “Administrative Code of 1987”, Republic Act No. 7394, 
otherwise known as the “Consumer Act of the Philippines”, Republic Act No. 
7653, as amended, otherwise known as “The New Central Bank Act”, Republic 
Act No. 8293, as amended, otherwise known as the “Intellectual Property Code 
of the Philippines”, Republic Act No. 8799, otherwise known as the “Securities 
Regulation Code”, Republic Act No. 9239, otherwise known as the “Optical 
Media Act of 2003”, Republic Act No. 9593, otherwise known as the “Tourism 
Act of 2009”, Republic Act No. 10173, otherwise known as the “Data Privacy 
Act of 20 12”, Republic Act No. 10667, otherwise known as the “Philippine 
Competition Act”, Republic Act No. 11127, otherwise known as“ The National 
Payment Systems Act”, and Republic Act No. 11232, otherwise known as the 
“Revised Corporation Code”. 
The Bureau shall defer the exercise of rule-making power to the above-
listed government agencies conferred by law 
with regulatory jurisdictions 
over eCommerce providers or platforms, unless the other agency declines to 
exercise its jurisdiction or does not act within a timely manner. 
SEC. 11. Registry of Online Business (ROB). — Within a period of one (1) 
year from the effectivity of this Act, the Bureau shall, in coordination with the 
DICT, establish, manage and maintain a ROB which shall provide consumers 
access to data and information of registered online business entities for 


 
8 
 
purposes of verifying the validity, existence of and other relevant information 
pertaining to business entities. 
The DICT, in consultation with the DTI, the National Privacy 
Commission (NPC), the Philippine Competition Commission (PCC) and other 
concerned agencies, shall issue the rules and regulations to govern the 
development, management, operation, and maintenance of the ROB. 
 
CHAPTER 3 
SUPERVISION OF ECOMMERCE 
 
SEC. 12. Authority to Issue Take Down Order. — The Secretary of Trade 
and Industry, upon due notice and hearing regarding violations of this Act, the 
Consumer Act of the Philippines, or any other related trade or consumer laws, 
operating to the grave and irreparable prejudice of a consumer or a rights 
holder, shall have the power to issue an order directing that a website, 
webpage, online application, social media account, or other similar platform, 
be taken down, made inaccessible in the Philippines, or that no entity shall 
process any payment to any of those entities, or otherwise be rendered 
commercially inoperative, in order to abate any further violations. 
The said provisional take down order shall be directed against the 
owner or operator of the website, webpage, online application, social media 
account, as well as duly registered internet service provider, as well as payment 
gateways or channels. Copies of the order shall likewise be served on other 
government agencies whose cooperation would be required for the 
enforcement of the same. 
The order shall remain in effect for a maximum period of thirty (30) days 
unless otherwise extended or made permanent by a judicial order or decision. 
SEC. 13. Cease and Desist Order. — The Secretary of Trade and Industry, 
upon due notice and hearing, shall have the power to issue an order directing 
a website, webpage, online application, social media account, or other similar 
platform operating to the grave and irreparable prejudice of a consumer or a 
rights holder, to desist from marketing or offering goods or services that are 
accessible in the Philippines, and directing that no payments shall be made to 
any entity which is marketing or offering such goods or services in violation of 
this Act, the Consumer Act of the Philippines, or any other related trade or 
consumer laws. 
The cease and desist order shall remain in effect for a maximum of thirty 
(30) days unless otherwise extended or made permanent by a judicial order or 
decision. 
  


 
9 
 
SEC. l4. Referral of Complaints. — The Bureau shall refer any complaint it 
receives involving violation of other laws committed in the course of 
eCommerce activities to the appropriate regulatory authority for action. 
If 
the 
complaint or violation pertains to the violation of the provisions of 
Republic Act No. 10175, otherwise known as the “Cybercrime Prevention Act 
of 20 12”, the matter shall be referred to the Department of Justice (DOJ) for 
appropriate investigation. In cases where appropriate, the DTI may itself 
initiate the formal complaint with the appropriate regulatory authority or the 
DOE.  
The Bureau shall track any such complaint or referral made to other 
authorities and coordinate with them to ensure that the said matters are duly 
resolved within a reasonable period. 
SEC. 15. Qualifications to Engage in eCommerce. — The following are 
presumed legally authorized to engage in eCommerce in the Philippines in the 
ordinary course of their trade or business: 
a) 
An individual who is duly licensed to do business as a single-
proprietor with the DTI; 
b) 
A juridical entity that is duly registered with the Securities and 
Exchange Commission (SEC), whether as a corporation, a one-person 
corporation, or as a partnership; 
c) 
A cooperative that is duly licensed by the Cooperative 
Development Authority (CDA); 
d) 
A foreign corporation that is duly licensed by the SEC to transact 
business in the Philippines; and 
e) 
A non-resident foreign individual or juridical entity who has 
complied with Section 5 of this Act. 
A resident of the Philippines who engages, abets, or aids in 
unauthorized eCommerce activities in the ordinary course of trade or business 
shall be subject to any appropriate penalty as may be provided by law and shall 
in the same manner as the party engaged in such unauthorized eCommerce 
activities. 
A person who is authorized to engage in eCommerce in the Philippines 
and who facilitates the sale of a digital product or service by one who is not so 
authorized is deemed primarily liable for any obligation, damage, or fine, that 
may arise from the transaction or from the digital product. 
A non-resident of the Philippines who engages in eCommerce by 
purposefully availing of the Philippine market may not evade legal liability in 
the Philippines by virtue of non-residency or non-registration, and shall be 
subject to the same obligations and liabilities arising from any transaction as 
those who are authorized to engage in eCommerce in the Philippines. 


 
10 
 
SEC. l6. Business Registration. — 
a) 
To encourage the formation of business enterprises, the growth 
and integrated development of the eCommerce market, and protection of 
online consumers, all individuals engaged in eCommerce shall register as a 
business either as a sole proprietor, one-person corporation, partnership, 
corporation, or cooperatives. 
b) 
Consistent with Republic Act No. 11032, otherwise known as the 
“Ease of Doing Business and Efficient Government Service Delivery Act of 
2018,” all national government agencies and local government units (LGU s) 
shall make available online registration of business permits arid licenses 
particularly for those engaged in eCommerce. 
c) 
The SEC, LGUs, and the CDA shall submit to the Bureau an 
annual of registered enterprises for monitoring and for purposes of 
maintaining a database of online merchants and eCommerce platform 
operators. 
 
CHAPTER 4 
CONSUMER RIGHTS AND OBLIGATIONS  
INVOLVING INTERNET TRANSACTIONS 
 
SEC. 17. Code of Conduct. — To build trust in internet transactions and to 
protect and uphold the interest of consumers at all times, all businesses 
engaged in eCommerce are expected to act responsibly, consistent with the 
following principles: 
a) Consumers shall be treated with honesty, integrity, and fairness 
at all times; 
b) The rights of consumers shall be applied equally; 
c) Business entities shall refrain from engaging in illegal, 
fraudulent, unethical, or unfair business practices that harm 
consumers and shall comply with applicable laws and 
regulations, especially the protection of intellectual property 
rights; 
d) Accurate information about goods and services marketed and 
sold online to Philippine consumers shall be given and made 
available to consumers; 
e) Goods and services sold online must conform to Philippine 
regulatory standards; 
f) The safety of goods and services marketed or sold online must 
not be compromised and products that have been recalled in the 
offline retail market must not be marketed or sold online;  


 
11 
 
g) Goods and services must be easily accessible, accurately 
described, and promoted through fair advertising and market 
practices; 
h) Consumers must be given the correct and complete information 
about costs through a sales invoice or an official receipt detailing 
the particular costs of the good or service purchased, including 
shipping or delivery charges. Hidden charges or additional costs 
such as customs duties or currency conversion charges must be 
avoided; 
i) The tracking of deliveries must be provided as part of services of 
online merchants or eCommerce platform operators and goods 
purchased must be delivered within the promised time and in 
described condition to the address provided by the consumer; 
j) A cancellation option must be provided wherein consumers are 
given the opportunity to review their online purchases before 
finally confirming their purchase or withdrawing from a 
confirmed transaction in appropriate circumstances; 
k) Consumer 
complaints must be dealt with through fair, easy, 
transparent and equitable mechanisms for consumer redress. If 
warranted, compensation, refund, repair, and replacement 
should be provided to the consumer; 
l) Data privacy laws and regulations, including Republic Act No. 
10173, otherwise known as the “Data Privacy Act of 2012,” and 
other similar laws and regulations shall be strictly complied with; 
m) The safety and security of online payments and sensitive data 
shall be safeguarded through the use of secure technology and 
protocols including those 
evidenced 
by 
visible 
trust
 
certificates or any appropriate similar certification as may 
emerge in the future; 
n) The transmission of unsolicited commercial email or bulk email, 
except those subject to the control and discretion of the consumer 
through readily accessible configurations that allow the 
consumer to choose whether they wish to receive or opt-out from 
commercial messages by email or electronic means, must be 
avoided; 
o) The production of fake online reviews or spreading wrong 
information about competitors is improper and must be avoided; 
p) Consumers must be educated about the risks of transacting 
through the internet and shall be provided competent and 
professional advice; and 
q) Competing fairly with other businesses and adherence to 
competition principles and all applicable competition laws and 
regulations, including Republic Act No. 10667, otherwise known 
as the “Philippine Competition Act”, shall ensure the robust 
development of eCommerce and the economy. 


 
12 
 
Whenever appropriate, the DTI shall issue rules and regulations 
corresponding to international trends, developments and best practices that it 
may adopt and implement.  
SEC. 18. Obligations of eCommerce Platform Operators. — eCommerce 
platform operators shall have the following obligations: 
(a) Ensure that any commercial communication shall: 
(1) Be clearly identifiable as a commercial communication; 
(2) Clearly identify any promotional offer including any discount, 
premium, or gift, and ensure that any condition which must be 
met to qualify for it easily accessible, and presented clearly, and 
unambiguously; and 
(3) Clearly identify any promotional competition or game and 
ensure that any condition for participation is easily accessible and 
presented clearly and unambiguously; 
(b) Require all online merchants, prior to the commencement of online 
transactions to submit the following to eCommerce platform 
operators: 
(1) Name of the online merchant; 
(2) Registration documents of the online merchant from the 
appropriate LGU, the DTI or SEC, and the Bureau of Internal 
Revenue (BIR); 
(3) Geographic address at which the online merchant may be served 
summons or any other judicial processes in its name and behalf; 
(4)  Contact details of the online merchant, such as a mobile or 
landline number, and a valid electronic mail address, which 
makes it possible to immediately and easily contact and 
communicate with the online merchant in a direct and effective 
manner; and 
(5) Details of any professional body or similar institution with which 
the online merchant is registered, in instances when the online 
merchant exercises a regulated profession; 
(c) Maintain a file of all online merchants registered under their 
platform containing the information provided by online merchants 
in paragraph (2) of this Section; 
(d)  Publish at a conspicuous part on their website, webpage, social 
media account, or other similar platform, the following general 
information: 
(1) Name of the online merchant; 
(2) Registration documents of the online merchant from the 
appropriate LGU, the DTI or SEC, and the BIR; 
(3) Geographic address at which the online merchant may be served 
summons or any other judicial processes in its name and behalf; 
(4) Contact details of the online merchant, a mobile or landline 
number, or a valid electronic mail address, which makes it 
possible to immediately and easily contact and communicate 
with the online merchant and communicate in a direct and 


 
13 
 
effective 
manner, unless the eCommerce online 
platform 
establishes means to facilitate communication between online 
merchants and consumers; and 
(5) Details of any professional body or similar institution with which 
the online merchant is registered, in instances when the online 
merchant exercises a regulated profession; 
(e) Submit to the Bureau a list of all online merchants registered under 
their platform. When an eCommerce platform operator discovers 
that an 
onboarded 
online 
merchant 
has 
not 
obtained 
registration documents from the relevant regulatory agency, it shall 
report such fact to the Bureau within fifteen (15) days from discovery 
thereof. 
(f) Cooperate with regulators, in accordance with existing laws and 
regulations, in any investigation, or resolution of consumer 
complaints. 
SEC. 19. Internet Transactions Involving Consumers. — An online 
merchant of goods shall exercise the following responsibilities: 
(a) Deliver or cause the delivery of goods to the consumer, ensuring that 
the following are complied with: 
(1) The goods are of the description, type, quantity, and quality, 
and possess the functionality, compatibility, interoperability 
and other features, as required by the sales contract. The 
online merchant must show a digital sample or model of the 
goods to the consumer and the goods possess the quality of 
and correspond to the description of the sample or model; 
possess the qualities and performance features, including in 
relation to functionality, compatibility, interoperability, 
accessibility, continuity, and security, normal for digital 
content or digital services of the same type and of which the 
consumer may reasonably expect; fit for any particular 
purpose for which the consumer requires them and which the 
consumer made known to the online merchant at the time of 
the conclusion of the contract, and which the online merchant 
has accepted: and possess the qualities and performance 
capabilities indicated in any pre-contractual statement which 
forms an integral part of the contract. 
 
(2) All goods shall: 
 
(i) Be delivered along with the accessories including 
packaging, installation instructions or other instruction 
as the consumer may expect to receive; and 
 
(ii) Possess qualities and performance capabilities which 
are normal in goods of the same type and which the 
consumer may expect given the nature of the goods 


 
14 
 
and taking into account any public statement made by 
or on behalf of the online merchant or other persons in 
earlier links of the chain of transactions, including the 
producer, unless the online merchant shows that: the 
online merchant was not, and could not reasonably 
have been aware of the statement in question; by the 
time of conclusion of the contract, the statement had 
been corrected; or the decision to buy the goods could 
not have been influenced by the statement. 
 
(b) Be liable for any lack of conformity with the contract which exists at 
the time when: 
 
(1) The consumer or a person acting on behalf of the consumer 
has acquired the physical possession of the goods, or when 
the goods are handed over to the carrier chosen by the 
consumer, and that carrier was not proffered by the online 
merchant or where the online merchant proposes no means of 
carriage; 
 
(2) The goods have been installed by the online merchant or 
under the online merchant’s responsibility. The time at which 
the installation has been completed shall be considered the 
time when the consumer acquires physical possession of the 
goods; 
 
(3) The goods have been installed by the consumer in accordance 
with the online merchant’s installation instructions. The 
expiration of a reasonable period for installation, which shall 
not be more than thirty (30) days, shall be considered the time 
when the consumer acquires the physical possession of the 
goods. 
 
(4) The goods are incorrectly installed. Any lack of conformity 
resulting from the correct installation is regarded as lack of 
conformity with the contract of the goods if: 
 
(i) The goods were installed by the online merchant or 
under the online merchant’s responsibility; and 
 
(ii) The goods, intended to be installed by the consumer, 
were installed by the consumer and the correct 
installation was due to a shortcoming in the installation 
instructions. 
 
(c) Where the contract provides that the digital content or digital service 
is to be supplied or made accessible to the consumer over a period of 
time, the online merchant may modify the digital content or digital 


 
15 
 
service beyond what is necessary to maintain the digital content or 
digital service in conformity with the contract, if the following 
conditions are met: 
 
(1) The contract allows, and provides a valid reason for, such a 
modification; 
 
(2) Such a modification is made without additional cost to the 
consumer; and 
 
(3) The consumer is informed in a clear and comprehensible 
manner of the modification. 
 
(d) Where the online merchant operates its own website, webpage, social 
media account, or any other similar platform, it shall publish on its 
homepage the following: 
 
(1) Name of the online merchant; 
 
(2) Registration documents of the online appropriate LGU, the 
DTI or SEC, the BIR, and other appropriate regulatory 
authorities; 
 
(3) Geographic address at which the online merchant may be 
served summons or any other judicial processes in its name 
and behalf; 
 
(4) Contact details of the online merchant, a mobile or landline 
number, and a valid electronic mail address, which makes it 
possible to immediately and easily contact and communicate 
with the online merchant and communicate in a direct and 
effective manner; and 
 
(5) Details of any professional body or similar institution with 
which the online merchant is registered, in instances when the 
online merchant exercises a regulated profession. 
 
Any agreement is valid only if, at the time of the conclusion of the 
contract, the consumer has knowledge of the specific condition of the goods 
and the consumer has expressly accepted this specific condition when 
concluding the contract. 
 
SEC. 20. Right to Redress by Online Merchants. — Where the online 
merchant is liable to the consumer because of a lack of conformity with the 
contract resulting from an act or omission by a person in earlier links of the 
chain of transactions, the online merchant is entitled to pursue remedies against 
the person or persons liable in the chain of transactions. 


 
16 
 
The persona against whom the online merchant may pursue remedies 
and the relevant actions and conditions to exercise must be in accordance with 
the following: 
(a) Repairs must be completed and replacements delivered within a 
reasonable time and without any significant inconvenience to the 
consumer, taking into account the nature of the goods and the 
purpose for which the consumer acquired by the goods; 
 
(b) A proportionate reduction of the price or the termination of the 
contract, including restitution of the price, in the following instances: 
 
(1) A repair or replacement is impossible or unlawful; 
 
(2) The online merchant has not completed repair or replacement 
within a reasonable time; 
 
(3) A repair or replacement may cause significant inconvenience 
to the consumer; or 
 
(4) The online merchant has declared, or it is equally clear from 
the circumstances that the online merchant may not deliver 
the goods in conformity with the contract within a reasonable 
time; 
 
(c) The consumer is entitled to withhold the payment of any outstanding 
part of the price, until the online merchant has brought the goods 
into conformity with the contract; 
 
(d) The consumer is not entitled to a remedy to the extend that the 
consumer has contributed to the lack of conformity with the contract 
or its effects; 
 
(e) Where the online merchant remedies the lack of conformity with the 
contract by replacement, the online merchant may take back the 
replaced goods at the online merchant’s expense unless the parties 
have agreed otherwise after the lack of conformity with the contract 
has been brought to the online merchant’s attention by the consumer; 
 
(f) Where the consumer had installed the goods in a manner consistent 
with their nature and purpose, before the lack of conformity with the 
contract became apparent, the cost for the removal of the non-
conforming goods and the installation of replacement goods, and all 
associated costs shall be for the account of the online merchant; 
 
(g) In case of goods that do not conform to the contract, the consumer is 
not liable to pay for using the non-conforming goods prior to its 
replacement; 
 


 
17 
 
(h) The consumer may choose between repair and replacement unless 
the option chosen is impossible, unlawful or, imposes costs upon the 
online merchant that is disproportionate, taking into account all 
circumstances, including: 
 
(1) The value of the goods, if the goods conformed to the contract; 
 
(2) The significance of the lack of conformity with the contract; 
and 
 
(3) Whether the alternative remedy may be completed without 
significant inconvenience to the consumer. 
 
The reduction of price should be proportionate to the decrease in the 
value of the goods which were received by the consumer compared to the value 
of the goods if it were in conformity with the contract. 
 
SEC. 21. Obligations of Ride Hailing Service Providers. — Ride hailing 
service providers shall require it consumers to register by showing valid proof 
of identity, email address or cellular phone number. Ride hailing service 
providers shall make the identity of its providers and support staff available to 
the rider at all times. 
 
SEC .22. Obligations of Consumers of Ride Hailing Services. — It shall be 
unlawful for consumers of ride hailing services to: 
 
(a) The online merchant shall reimburse to consumer the price paid 
without undue delay and in any event not later than fourteen (14) 
days from receipt of the notice; 
 
(b) Upon receipt of the reimbursement from the online merchant, the 
consumer shall return, at the online merchant’s expense, the goods 
without undue delay and in any event not later than fourteen (14) 
days from the receipt of the reimbursement; 
 
(c) Where the goods cannot be returned because of destruction or loss 
caused by the negligence of the consumer, the consumer shall pay to 
the online merchant the monetary value which the non-conforming 
goods would have had at the date when the return was to be made if 
they had 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 with the goods with the contract, within fourteen (14) 
days from receipt of reimbursement; and 
 
(d) The consumer shall pay for a decrease in the value of the goods only 
to the extent that the decrease in value exceeds deprecation through 
regular use. The payment for decrease in value shall not exceed the 
price paid for the goods. 


 
18 
 
 
SEC. 24. Damages. — The online merchant is liable for damages to the 
consumer due to the lack of conformity with the contract of the goods. The 
consumer may claim damages within two (2) years from the relevant time of 
establishing conformity. 
 
No damages may be recovered by virtue of this Act after the lapse of 
four (4) years from the time the conformity has been established. 
 
SEC. 25. Online Dispute Resolution. — The DTI shall develop an online 
dispute resolution (ODR) platform which is a single point of entry for 
consumers, online merchants, and eCommerce platform operators seeking out-
of-court resolution of disputes. Where an eCommerce platform operator does 
not have an internal dispute resolution mechanism, all complaints through an 
ODR against an eCommerce platform operator shall be accompanied by proof 
that internal dispute resolutions were exhausted. 
 
(a) The ODR shall be an interactive website which may be accessed 
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 and must 
adopt the twin principles of “privacy by design” and “design is for 
all”, where the privacy of its users is respected, and the ODR 
platform is accessible and usable by all users. 
 
(b) The DTI shall establish a network of ODR contact points from, 
among others, the agencies involved in consumer complaints 
specified in Republic Act No. 7394, otherwise known as the 
“Consumer Act of the Philippines”, which includes the Fair Trade 
Enforcement Bureau (FTEB) of the DTI, the Department of 
Agriculture (DA), the Department of Tourism (DOT), and the 
Department of Health (DOH). The NPC and the Intellectual Property 
Office of the Philippines (IPOPHIL) shall also form part of the ODR 
network. 
 
(c) Each agency shall designate one ODR contact point and 
communicate its name and contact details to the DTI. The head of 
agency shall confer responsibility to the ODR contact points in 
ensuring that timely and competent support is provided to the 
resolution of disputes relating to complaints submitted through the 
ODR platform. 
 
(d) The ODR platform shall have the following functions: 
 
(1) Provide an electronic form by means of which alternative 
dispute resolution (ADR) entities shall transmit the 
information; 
 


 
19 
 
(2) Provide a feedback system which allows the parties to express 
their views on the functioning of the ODR platform and on the 
ADR entity which handles their dispute; and 
 
(3) Make publicly available general information on ADR as a 
means of out-of-cord dispute resolution and information on 
ADR entities which are competent to dela with disputes. 
 
(e) The DTI shall ensure that the information in the website is accurate, 
up to date and provided in a clear, understandable and accessible 
way. 
 
(f) Government and private sector entities which provide ADR services 
which are competent to deal with disputes shall be registered 
electronically wit the ODR platform. 
 
(g) Digital platforms and online retailers shall provide on their websites 
an electronic link to the DTI ODR platform on their homepage. That 
link shall be easily accessible to consumers. 
 
(h) The DTI, in consultation with other concerned agencies, shall issue 
the implementing rules and regulations on the development, 
management, operations, and maintenance of the ODT platform. 
 
SEC. 26. Limited Liability of eCommerce Platform Operators. – 
 
(a) eCommerce platform operators shall be solidarily liable with an 
online merchant to the consumer only to the extent of civil damages 
suffered by the consumer as a direct result of the transaction, without 
prejudice to liabilities that may incur under the next succeeding 
paragraph or the provisions of other existing laws. 
(b) eCommerce platform operators shall, for civil or administrative 
indemnity, be held liable with an online merchant only under the 
following instances: 
(1) If the eCommerce platform operator fails to exercise ordinary 
diligence in complying with its obligations under Section 18 
hereof, resulting to loss or damage to the consumer; 
 
(2) If the identity of the online merchant and the eCommerce 
platform operator are the same; 
 
(3) If the eCommerce platform operator fails, after notice, to act 
expeditiously to remove, or disable access to goods or services 
appearing on their platform that they know or should have 
known to be not compliant with law, or otherwise infringes 
on intellectual property rights; 
 


 
20 
 
(4) If the eCommerce platform operator permits an online 
merchant, not otherwise authorized to do business in the 
Philippines, to offer its goods and services for sale, resulting 
to loss or damage to the consumer. 
 
(c) eCommerce platform operators shall not be held liable under the 
following instances: 
 
(1) The eCommerce platform operator relied on the accuracy, 
authenticity, 
and 
veracity 
of 
an 
online 
merchant’s 
representations, 
warranties 
or 
submitted 
registration 
documents, even if such information or documents are late 
proved to be inaccurate, false or untrue: Provided, That, the 
eCommerce platform operators are able to show evidence of 
good faith and that reasonable efforts were exerted to 
ascertain the accuracy and reliability of the documents or 
information submitted by such online merchant. 
 
(2) The 
eCommerce 
platform 
operator 
relied 
on 
the 
representations, warranties or submissions of an online 
merchant stating that it is duly organized, valid and existing 
under the laws of the Philippines or under the laws of its 
respective jurisdictions to engage in eCommerce, or has 
obtained all necessary licenses, permits or approvals required 
for the sale of goods and services, or that said goods and 
services conform to applicable laws, rules and regulations. 
 
SEC. 28. Enforcement of Rights and Remedies. — Without prejudice to 
existing remedies provided under other laws, the enforcement of the rights and 
remedies established under this Chapter shall be through the following means: 
 
(a) If involving complaints by a consumer where no damages are 
sought, the complaint shall be treated as a consumer complaint with 
the DTI pursuant to Title V, Chapter III of Republic Act No. 7394, 
otherwise known as the “Consumer Act of the Philippines”; 
 
(b) If involving a claim for damages, the injured party shall seek 
recovery by filing a civil action with the appropriate trial court. 
 
CHAPTER 5 
ELECTRONIC COMMERCE PHILIPPINE TRUSTMARK 
 
SEC. 29. Ecommerce Philippine Trustmark. — To provide assurance of 
safety and security in internet transactions, the DTI shall lead the development 
of an eCommerce Philippine Trustmark hereinafter referred to as the, 
“Trustmark”, which may be established and operated by an industry-led 
private sector governance body. The DTI shall periodically assess the 
effectiveness of the industry-led Trustmark in promoting to the public reliable 


 
21 
 
and trustworthy eCommerce services, and may opt to assume operational 
control over the Trustmark if it determines that the industry-led private sector 
effort cannot sufficiently achieve the goals of the Trustmark. 
 
CHAPTER 6 
FINAL PROVISIONS 
 
SEC. 30. Penalties. — 
 
(a) Online merchants who fail to register either as a sole proprietor, one-
person corporation, partnership, corporation, or cooperative, shall be 
punished with a fine equivalent to one hundred percent (100%) of 
the amount of the digital goods offered or sold based on the market 
price as determined by the Bureau, including confiscation of the 
goods as advertised; 
 
(b) eCommerce platform operators and online merchants found guilty 
of violating Section 18, or Section 19 (d) of this act shall be punished 
with a fine not less than Five hundred thousand pesos (PhP 
500,000.00) but not more than Five million pesos (PhP 5,000,000.00) 
or the revocation of their licenses, or both, at the discretion of the 
courts. 
 
(c) Ride hailing service providers found guilty of violating Section 21 of 
this Act shall be punished with a fine of up to Five hundred thousand 
pesos (PhP 500,000.00) or the revocation of their licenses, or both, at 
the discretion of the courts. 
 
(d) Consumers found guilty of violating Section 22 (a) of this Act shall 
be punished with a fine of up to Fifty thousand pesos (PhP 50,000.00) 
plus one hundred percent (100%) of the amount advanced by the ride 
hailing service partner, or both, at the discretion of the courts. 
 
(e) Consumers found guilty of violating Section 22 (b) and Section 23 (b) 
of this Act shall be punished with a fine of up to Fity thousand pesos 
(PhP 50,000.00), at the discretion of the courts. 
 
The application of these penalties shall be without prejudice to the 
liability of the offending party under other laws or regulations. 
 
SEC. 31. Oversight Committee. — There is hereby created a Congressional 
Oversight Committee, hereinafter referred to as the Internet Transactions Act 
Congressional Oversight Committee, to be composed of five (5) members from 
the Senate, which shall include the Chairpersons of the Senate Committees on 
Trade, Commerce and Entrepreneurship, Science and Technology, and Finance 
and five (5) members from the House of Representatives, which shall include 
the Chairpersons of the House of Representatives Committees on Trade and 
Industry, 
ICT, 
and 
Appropriations. 
The 
Internet 
Transactions 
Act 


 
22 
 
Congressional Oversight Committee shall be jointly chaired by the 
Chairpersons of the Senate Committee on Trade and Commerce and the House 
of Representatives Committee on Trade and Industry. It shall meet at least 
every quarter of the first two years and every semester for the third year after 
the approval of this Act to review the implementation of this Act, evaluate the 
Bureau on its functions as the lead agency, determine any inherent weaknesses 
in the law, and recommend the necessary remedial legislation or executive 
measures: Provided, That the Internet Transactions Act Congressional Oversight 
Committee shall cease to exist after five (5) years upon the effectivity of this 
Act. 
 
The Secretariat of the Internet Transactions Act Congressional Oversight 
Committee shall be drawn from the existing personnel of the Senate and House 
of Representatives Committees comprising the Internet Transactions Act 
Congressional Oversight Committee. 
 
SEC .32. Implementing Rules and Regulations. — The Secretary of Trade 
and Industry shall, in consultation with the DICT, the BSP, the DOT, the Land 
Transportation Franchising and Regulatory Board (LTFRB), the Optical Media 
Board (OMB), the IPOPHIL, and other relevant government agencies and 
stakeholders, develop and issue the implementing rules and regulations of this 
Act. 
 
SEC. 33. Transitory Provisions. — To ensure the continued 
implementation of programs to promote eCommerce, the current eCommerce 
Division shall continue to exercise its functions until such time that the 
organizational structure and personnel of the Bureau have been determined 
and approved. 
 
All affected officers and personnel of the eCommerce Division shall be 
absorbed by the Bureau without demotion in rank or diminution of salaries, 
benefits and other privileges. 
 
SEC. 34. Appropriations. — The amount necessary to carry out the 
provisions of this Act shall be included in the annual General Appropriations 
Act. 
 
SEC. 35. Separability Clause. — If any provision or part of this Act is 
declared invalid or unconstitutional, such declaration shall not affect the 
validity of the remaining provisions of this Act. 
 
SEC. 36. Repealing Clause. — All laws, rules, and regulations, presidential 
decrees, letters of instruction and other presidential issuances which are 
incompatible or inconsistent with the provisions of this Act are hereby 
repealed, amended, or modified accordingly. 
 
SEC. 37. Effectivity. — This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in at least one (1) newspaper of general 


 
23 
 
circulation. It shall also be published online, through the Official Gazette Online 
(www.officialgazette.gov.ph), and on the website of the DTI (www.dti.gov.ph). 
Approved.