NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
)
SENATE
S. No. 1125
of tii.—1 
-l-'iO*
72 AUG 11 A10 72
RHCEr-LOD'.
Introduced by Senator Mark A. Villar
AN ACT
CREATING THE E-COMMERCE BUREAU, APPROPRIATING FUNDS 
THEREFOR, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The COVID-19 pandemic has accelerated the growth of e-commerce in the 
Philippines. Due to community quarantines and social distancing measures, 
consumers and businesses have relied on the Internet to buy or sell goods and 
services or to transmit funds or data. This lead to a significant rise in the number of 
online consumers and merchants, goods and services, and even online frauds.
This bill seeks to support and maintain a robust e-commerce environment and 
build trust between online merchants and consumers through secure and reliable e- 
commerce platforms where goods, services, and digital products are transacted 
online with appropriate transparency and utmost efficiency.
Given the foregoing, prompt approval of this bill is earnestly sought and 
recommended.
MARK A. VILLAR


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NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
S. No. 1125
jlilDfft.'f oI ti.c ±:' • 11 li,
*22 AUG 11 A10:22
Rl-CEIv > D lU
Introduced by Senator MARK A. VILLAR
AN ACT
CREATING THE E-COMMERCE BUREAU, APPROPRIATING FUNDS 
THEREFOR, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assem bled:
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Section 1. Short Title. -This Act shall be known as the "E-Commerce Bureau
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Act."
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Sec. 2. Declaration of Policy. - It is the policy of the State to:
a) 
Promote the growth of electronic commerce (e-commerce) in 
the country by building mutual trust between online sellers and consumers. 
The State recognizes the growth of the digital economy and the need to 
ensure that all goods and services transacted digitally be in accordance with 
specifications, and be reliable, secure, and accessible to all consumers for the 
purpose of increasing the productivity and efficiency of businesses;
b) 
Ensure sustainable and fair e-commerce business practices 
through transparent and appropriate information disclosure, the maintenance 
and protection of data privacy rights, and an emphasis on the paramount 
importance of product safety;
c) 
Provide meaningful access to effective mechanisms for the 
resolution of any and all disputes involving e-commerce, including alternative 
dispute resolution methods;


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d) 
Strengthen and professionalize internet transaction protection
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and law enforcement against persons defrauding consumers and merchants
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dealing using internet; and
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e) 
Formulate plans and programs relative to protection of
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consumers and merchants engaged in internet transactions and enhance the
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government's capacity to address fraudulent scheme using internet.
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Sec. 3. Definition of Terms. - As used in this Act, the following term have the
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meanings specified below:
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a) Consumer-to-consumer transactions refer to isolated transactions of an
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individual or group of individuals with another individual or group of
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individuals, done for personal, family, or household purposes, and not
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done in the ordinary course of business of any of the parties to the
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transaction;
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b) Goods refer to tangible products which are primarily for personal,
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family, household, or agricultural purposes which include, but are not
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limited to, food, drugs, cosmetics, and devices;
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c) Digital Platforms refer to internet intermediaries or businesses such as,
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but not limited to, e-marketplaces, online delivery enterprises,
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transportation booking, tourism booking, entertainment website and
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services, music products and services, social media, advertising,
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education and learning products, health websites and applications,
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labor services, among others, that match, connect, or facilitate
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interactions and transactions by and between any two or more parties
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to enable them to sell, exchange, share, or transact in any convenient
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manner, goods, services, and digital products;
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d) Digital Products refer to goods and services produced and supplied in
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digital form such as, but not limited to, video, audio, applications,
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digital games, and any and all other software that allows the consumer
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to create, process, download, store, or access digital content, or allows
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the sharing of the same, or any such other interaction with digital
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content provided by other users of the service;


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e) E-commerce Philippine Trustmark refers to the mark approved by the
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E-commerce Bureau signifying the legitimacy and verified status of an
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online merchant and provides for consumer protection in online or e-
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commerce transactions and, whenever applicable, accountability in
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case of consumer complaints;
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f) E-commerce or Online Transactions refers to an exchange or transfer
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of goods and services using the internet;
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g) E-Marketpiace refers to a digital platform such as, but not limited to,
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eBay, Amazon, Shopee, Lazada, Carousell, Facebook Marketplace,
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among others, whose business is to connect online consumers and
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online merchants, facilitating the exchange of information regarding
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products or services for the purpose of entering into an e-commerce
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transaction such as the purchase of goods and services, tangible or
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intangible, and which may or may not provide information or services
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about payments and logistics;
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h) E-Retaiier refers to a natural or juridical person engaged in selling
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products or services, tangible or intangible, directly to online
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consumers through his own website or any other digital platform;
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i) Interoperability refers to the ability of the digital product to function
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with hardware or software different from those with which the digital
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product of the same type is normally used;
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j) Online Delivery Service refers to the delivery of food and parcels, or
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any other item, contracted through a digital platform which may be an
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application, website, webpage, social media account, or any similar
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means, operated by an online delivery service platform; and
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k) Online Merchant refers to any natural or juridical person selling or
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manufacturing, or otherwise offers for sale or manufacture, any goods
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or digital products in the ordinary course of business, either through an
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e-marketplace, social media, website, application, or via any digital
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platform over the Internet.
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Sec. 4. E-Commerce Bureau. -The E-Commerce Division created through DTI
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Department Order No. 09-16 in accordance with Section 29 of Republic Act No. 8792


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or the Electronic Commerce Act of2000"\s hereby abolished, and an E-Commerce
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Bureau under the Department of Trade and Industry (DTI) is hereby created.
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Sec. 5. Authority and Jurisdiction of the Bureau. - For purposes of this Act,
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the E-Commerce Bureau shall have jurisdiction to the sale or exchange of goods,
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services, or digital products during trade or business whether between business,
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households, individuals, and other public or private organizations, conducted over
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the internet, except consumer-to-consumer internet transactions.
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Sec. 6. Functions of the Bureau. - The E-Commerce Bureau shall perform the
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following functions:
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a) Implement, monitor, and ensure compliance of the provisions of this
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Act;
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b) Mandate entities engaged in e-commerce to register with the Online
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Business Registry;
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c) Formulate policies, plans, and programs to ensure the robust and
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dynamic development of e-commerce;
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d) Identify regulatory gaps affecting the e-commerce sector that are not
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sufficiently addressed by this Act or by existing laws or regulations,
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and recommend appropriate executive or legislative measures that
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foster the growth of the sector;
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e) Act as a virtual one-stop shop tasked to receive and address consumer
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complaints or unresolved internet transactions between parties,
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facilitate the speedy resolution of consumer complaints by the
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respective government agency having jurisdiction over the same, and
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track complaints referred to or initiated by it motu proprio to ensure
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the speedy and appropriate action by the agency to which such
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matters pertain or otherwise have been referred to;
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f) Coordinate with, or petition whenever appropriate, any entity,
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government agency, or instrumentality to act on any matter related to
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e-commerce consumer complaints;


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g) Monitor internet market behavior, consult with stakeholders and
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concerned agencies to better understand e-commerce transactions,
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and prepare and conduct periodic studies on the same; and
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h) Collaborate with the various departments of the national government
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and the local government units (LGUs) in the implementation of
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projects and programs promoting e-commerce, including information
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and education, as well as in ensuring a policy regime that is proactive.
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Sec. 7. Composition of the Bureau. - The Bureau shall be headed by a
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Director who must have sufficient knowledge and background in e-commerce and
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online transactions, and all the laws and processes related thereto. The Director
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shall be assisted by three (3) Assistant Directors: for policy and administration, for
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enforcement, and for operations.
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The Director and all assistant Directors shall be appointed by the President,
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upon the recommendation of the DTI Secretary, and must be career executive
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service officers with at least five (5) years of government service and such relevant
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experience in e-commerce development.
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Sec. 8. Oniine Business Registry (OBR). - Within a period of one (1) year
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form the effectivity of this Act, the Bureau shall, in coordination with the Department
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of Information and Communications Technology (DICT), establish, maintain, and
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manage an Online Business Registry (OBR) which shall provide consumers access to
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data and information of e-marketplaces, e-retailers, online merchants, and such
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other digital platforms engaged in the sale of goods, services, and digital products
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for purposes of verifying their existence, confirming their identity, and other such
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relevant or needed information.
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Sec. 9. Reguiatory Jurisdiction of the DTI. - For purposes of this Act, the DTI
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shall exercise primary regulatory jurisdiction over e-marketplaces, e-retailers, online
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merchants, and other digital platforms that sell or allow the sale or exchange of
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goods, services or digital products, and are purposely availing of the Philippine
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market.


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Sec. 10. Authority to Issue Take-Down Order. - Whenever the Bureau finds,
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by its own initiative or upon petition of a consumer or other concerned party, that
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the online sale of goods, services, or digital products is violative of this Act, the
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'^Consumer Act of the PhiHppines'/ or any other related laws, the DTI Secretary, in
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order to abate any further violations, shall have the power to:
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a) Impose an order, as a form of penalty, directing that the violative
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online product listing, webpage, business page, application, social
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media post, profile, website or when applicable, any platform of the
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online merchant or e-retailer related to the illegal product, be taken
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down, or the same be made inaccessible in the Philippines, whether
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temporarily or permanently; and
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b) Issue an advisory that no entity shall process any payments made to
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any violating entity to ensure that the latter shall be rendered
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commercially inoperative.
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The DTI Secretary may immediately issue a provisional take-down order to
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prevent grave and irreparable injury to the public, when the following conditions are
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present:
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a) When the DTI Secretary finds that a good, service, or digital product is
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imminently injurious, unsafe, or dangerous; or
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b) When the seller under investigation has been previously penalized
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under this section.
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Whenever the DTI Secretary orders the immediate take-down, recall, ban, or
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seizure of an illegal product from public online sale or distribution, the seller,
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distributor, manufacturer, or producer thereof shall be given an opportunity to be
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heard within forty-eight (48) hours from the issuance of such order.
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The take-down order, whether imposed as a penalty or provisionally granted,
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shall be directed against the e-retailer, online merchant, or the owner or operator of
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the e-marketplace or digital platform. Copies of the order shall likewise be served on
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entities whose cooperation would be required for its enforcement such as but not
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limited to the duly registered internet service provider involved, related payment
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gateways, and other government agencies.


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The DTI Secretary may revoke the take-down order after hearing the 
explanation submitted by the seller, distributor, manufacturer, or producer, in which 
case the order revoking the tale down order shall serve on the entities mentioned 
and in the same manner stated in the preceding paragraphs.
Sec. 11. Referral of Complaints. - The Bureau shall refer any complaint it 
receives involving violation of other laws omitted during an online or e-commerce 
transaction to the appropriate regulatory authority for action. The Bureau shall track 
the complaints or referrals made to other authorities and coordinate with them to 
ensure that matters are duly resolved in accordance with Republic Act No. 11032, 
otherwise known as the ""Ease of Doing Business and Efficient Government Service 
Delivery Act of 2018."
Sec. 12. Online Dispute Resolution. -The DTI shall develop an Online Dispute 
Resolution (ODR) platform which is a single point of entry for parties to e-commerce 
transactions that are seeking out-of-court resolution of disputes when the platforms 
or merchant fail to resolve or assist consumers with their concerns.
a) The ODR shall be an interactive website accessible electronically and 
free of charge. The DTI, through the Bureau, shall be responsible for 
its operation, including its maintenance, funding, and date security. 
The ODR platform must be user-friendly, easily accessible, and data 
privacy compliant.
b) The DTI shall establish a network of ODR contact points from different 
government agencies involved in consumer complaints as specified in 
Republic Act No. 7394, otherwise known as the "" Consumer Act of the 
Philippines", including the Department of Agriculture (DA), Department 
of Tourism (DOT), and the Department of Health (DOH), among 
others. The Intellectual Property Office of the Philippines (IPO) shall 
also be part of the ODR network.
c) Each agency shall have a designated ODR contact point whose name 
and contact information are to be submitted to the DTI. The head of 
the agency shall confer responsibility to the respective ODR contact 
points to ensure that timely and competent support is provided to the


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(ii)
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resolution of complaints and disputes submitted through the ODR 
platform.
d) The ODR platform shall have the following functions:
(i) Provide an electronic form where alternative dispute resolution
entities shall transmit the information;
Provide a feedback system that will allow parties to express 
their views on the efficiency of the ODR platform and on the 
response of the entity handling their dispute; and 
Make available to the public, general information on alternative 
dispute resolution as a means of out-of-court dispute resolution 
and the entities which are competent to deal with such disputes.
e) The DTI shall ensure that the information on the website is accurate 
and up to date.
f) Online e-commerce platforms and online merchants shall provide on 
their websites an electronic link to the DTI-ODR platform on their 
homepage.
Sec. 13. E-commerce Philippine Trustmark. - To provide assurance of safety 
and security in transactions over the internet, an E-commerce Philippine Trustmark 
shall be developed for online merchants.
a) A Trustmark and Trustmark Portal shall be created which shall be 
administered and managed by the DTI.
b) A Trustmark on the website of an online merchant signifies that the 
company is committed to guarantee honesty, fairness, and integrity in 
dealing with its customers, and is committed to refrain from engaging in 
any illegal, fraudulent, unethical, or unfair business practices.
c) In case of a complaint involving the purchase of their products or services, 
online merchants with the Trustmark shall give consumers the option of 
filing claims through the Trustmark portal, if the online merchant's 
customer care service has not been able to resolve the issue.
d) The Trustmark shall be considered an official document for purposes of 
the crime of falsification as defined under the Revised Penal Code and 
other related laws. Any E-marketplace, e-retailer, online merchants, or e-
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commerce digital platform that is found guilty of falsifying or forging the
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E-commerce Philippine Trustmark, shall be subjected to a take-down order
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in accordance with Section 10 of this Act.
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Sec. 13. Appropriations. - The amount of Fifty Million Pesos
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(PhP50,000,000.00) for the initial operation of the Bureau is hereby appropriated out
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of any funds in the National Treasury not otherwise appropriated. Thereafter, such
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sum as may be necessary for the continued implementation of this Act shall be
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included in the annual General Appropriations Act.
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Sec. 20. Impiementing Agencies, Ruies, and Reguiations. - Within sixty (60)
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days form the promulgation of this Act, the necessary rules and regulations shall be
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formulated and issued by the DTI, in consultation with the DICT, IPO, DOH the Food
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and Drug Administration (FDA), and other relevant government agencies providing
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guidelines hereof including the rights and obligations of consumers, e-retailers, e-
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market places, online delivery partners, online merchants and online delivery service
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platforms involved in internet transactions.
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Sec. 21. Jurisdiction of Other Agencies. - Other agencies shall continue to
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exercise the powers and duties provided to them under existing laws, unless
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repealed or modified accordingly.
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Sec. 22. Separability Clause. - If any provision of this Act is declared
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unconstitutional or invalid, other parts or provisions hereof not affected thereby shall
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continue to be in full force and effect.
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Sec. 23. Repealing Clause. - All laws, presidential decrees, executive orders,
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issuances, proclamations, rules and regulations, or any part thereof, which are
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inconsistent with the provisions of this Act are hereby repealed or modified
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accordingly.
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Sec. 24. Effectivity. - This Act shall take effect after fifteen (15) days
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following its publication In the Official Gazette or in a newspaper of general
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circulation.
Approved,