Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ______ 
INTRODUCED BY REP. HARRIS CHRISTOPHER M. ONGCHUAN 
EXPLANATORY NOTE 
The State recognizes, “the indispensable role of the private sector, encourages 
private enterprise, and provides incentives to needed investments,” Moreover, the 
State recognized the need, “to protect the interests of the consumer, promote their 
general welfare, and to establish standards of conduct for business and industry.” 
Electronic Commerce, or e-commerce is, “the buying and selling of goods and 
services” primarily through the internet. It happens through a business-to-business 
(B2B) or business-to-consumer (B2C) mode. A boost in this mode of commerce can be 
seen, especially during the pandemic. The Department of Trade and Industry (DTI) 
has seen a 3.4% GDP contribution of ecommerce in 2020. For 2022, they expect that 
ecommerce contribution to the GDP will increase to 5.5% 
This bill seeks to enhance the Electronic Commerce Act of 2000 through the 
creation of the ECommerce Bureau that will be under the supervision of the 
Department of Trade and Industry. Aside from enhancing the aforementioned Act, it 
will also ensure the success of the Philippines eCommerce Roadmap, and the 
protection of those engaging in electronic commerce. 
This bill was first filed in the 18th Congress by Rep. Wes Gatchalian and Rep. 
LRay Villafuerte. 
In view of the foregoing, immediate passage of the bill is sought. 
 HARRIS CHRISTOPHER M. ONGCHUAN 
August 30, 2022
8:02 am
4158


 Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _________ 
Introduced by Representative 
HARRIS CHRISTOPHER M. ONGCHUAN 
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 
4158


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: 
(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; 
(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; 
(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. 
  
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; 
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. 
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 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. 
  
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. 
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; 
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. 
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 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 
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 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. 
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; 
  
(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. 
  
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; 


  
(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; 
  
(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 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 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 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.