Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Nineteenth Congress
First Regular Session

1010

HOUSE BILL NO.

Introduced by Rep. Bernadette Herrera-Dy

AN ACT MANDATING THE SECURITIZATION OF E-COMMERCE INDEPENDENT
CONTRACTORS AND PENALIZING THE CANCELLATION OF
CASH-ON-DELIVERY BASED TRANSACTIONS

Explanatory Note

Delivery services have bven an indispensable means to purchasing essentials during
the COVID-19 pandemic. Since the national imposed lockdown, the State has urged the
public to avoid crowded places and stay at home. To sustain the people's need for food,
household supplies, and other items, consumers have resorted to e-commerce platforms,
online sellers, and delivery services as a more safe and convenient alternative in the so-called
“new normal”,

Delivery services have become a flourishing industry during this quarantine period
and will continue to grow as time moves forward. Due to COVID-19 and the closure of
thousands businesses, millions of employees have lost their jobs, prompting others to venture
different sources of income, One of which is delivering items on their motorcycles to people
who don't leave their homes. According to Grab, the demand for their motoreyele delivery
services has tripled since the start of the national imposed lockdown,

These delivery service providers typically have items delivered to customers through
motorcycle riders. Customers have the option to pay for their items and delivery service
charge in advance through cashless transactions such as credit or debit cards, online bank
transfers and ewallets, or through cash on delivery (COD). For COD, the delivery rider will
advance the purchase price for the orders, be responsible for buying the items being ordered,
reimbursement and a small premium upon its successful delivery to the customer,

and re
who then pays for their order in cash

Consequently, these delivery riders have become inadvertent frontliners who must take
the daily risk of going out, purchasing items and delivering them to the doorstep of customers
Both the World Health Organization and Center for Disease Control Prevention have warned
the public about the use of cash as the virus can possibly be transmitted through the surface of
banknotes and coins. This is an added risk for delivery riders who may contract the virus from
contaminated cash upon delivery.

To make matters worse, there is a growing mumber of eases in which customers cance!
their orders upon delivery even if the delivery rider has already paid and prepared the items
in advance. As a result, the delivery rider loses precious time and money, while they are stuck
with the customer's cancelled order. Delivery riders eam a meager monthly salary
‘ofPhp15,000-20,000 to support themselves and their families.’ Cancellations for cash


deliveries create a triple burden for the delivery riders as they waste time, shoulder expenses,
and expose themselves to the dangers of being infected.

One proposed solution for efficiently purchasing items through delivery services is
by prohibiting cancellations upon delivery and promoting/increasing the selection/modes of
cashless transactions. Customers are more responsible for their purchases when they opt to
pay online and in advance, while the delivery rider simply transports the items to the
customers’ homes without having to bear the costs. Rather than going out to an ATM and
withdrawing cash, customers can also safely and quickly transfer money through the screens
of their computers and mobile applications. Prohibiting such cancellations and promoting
cashless transactions are a contactless, fast, and convenient measure that can reduce the
transmission of the virus, hold customers accountable for their orders, and significantly ease
the burden and risks of delivery riders.

In order to increase efficiency and protect the welfare of delivery riders whose lives
are put at stake to keep us safe within our homes, this bill seeks to provide more secure
measures to these service providers and penalize those who unreasonably and inconveniently
cancel their orders upon delivery. While COVID-19 is changing the way in which we live, we
too must adapt with the primary focus on health and safety through contactless and cashless
methods.

In view of the foregoing, the approval of this bill is highly and camestly
recommended

|ADETTE HERRERA-D?



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Nineteenth CONGRESS,
t Regular Session

House Bill No_10 10

Introduced by: Rep. Bernadette Herrera-Dy

AN ACT MANDATING THE SECURITIZATION OF E-COMMERCE INDEPENDENT
CONTRACTORS AND PENALIZING THE CANCELLATION OF CASH-ONDELIVERY
BASED TRANSACTIONS,

Be it enacted in the Senate and House of Representatives of the Philippines in the
Congress assembled:

SECTION I. Short Title. This Act shall be known as the "The Magna Carta of E-Commerce
Delivery Personne!”

SECTION 2. Declaration ofPOlicy.

SECTION 3. Definition of Terms. - For purposes of this Act, the following terms are hereby

defined:

a, "Cancel upon delivery" —~ refers to a previously confirmed order to buy an item that
is called off or rejected by the customer once the item is delivered to them.

b. "Cash on delivery (COD)
when the products are delivered to the customer.

— refers to the cash payment for an order that is collected

c.  "Cashless transactions” — reters to the process by which money is exchanged or
transferred online between two people, businesses, or organizations, involving no use
of hard cash. This includes the use of contactless credit or debit cards, online bank

transfers, and e-wallets.

d “Confirmed Order" — is a form of document that is sent from the online seller to the
customer which confirms that the order and mode of payment selected has been
received and approved for delivery.

"Customer" — an individual, group of individuals, organization, or business that buys
‘goods through a delivery service.

£ “Delivery rider" — an individual who collects items from a seller and transports them
to a customer's destination on a motorcycle.

8. "Delivery service provider” — a third party company engaged in connecting of seller
and customer, and provides the delivery rider to serve on the pickup and delivery of
goods between a seller and customer.


h

"Online seller" — an individual, group of individuals, organization, business. or
ecommerce platform that sells goods to customers over the internet.

SECTION 4. Prohibited Acts. The below listed acts are expressly prohibited, as follows:

a. Itshall be prohibited for any customer to cancel confirmed orders upon the delivery
of the item/s.

b. It shall likewise be unlawful for any customer to cancel confirmed orders if the items
have already been paid by the delivery rider. is in possession of the delivery rider, or
in transit to the customer.

SECTION 5, Exemptions. Customers under the following instances shall be considered
exempt from the provisions of this law:

When the customer uses cashless transactions as a mode of payment and
reimbursement and any such payment and reimbursement is provided to the online
seller and to the delivery service provider in spite of the cancellation;
The customer remits to the online seller, delivery service provider and/or delivery
rider any such reimbursement as a prerequisite for the cancellation of the confirmed
order; or
The delivery of the items is or will be delayed for the following time periods from the
expected time of arrival indicated in the confirmed order issued by the online seller or
delivery service provider except for instances in which the customer is previously
notified by the delivery service provider or delivery rider of a possible delay and that
such delay was not caused by the negligence of the delivery rider:

i. at Least one (1) hour for food and drinks, and

ii, atleast one (1) day for non-perishable items

SECTION 6. Obligations of Online Sellers. Online sellers are mandated to expand their
options of cashless transactions for the purchase of their items to ensure the health, safety,
financial inclusion, and convenience of customers and delivery riders and to hold customers

accountable for their confirmed orders

and possible cancellations. Such online sellers must

provide a full range of cashless options present in the Philippine market by June 2021

SECTION 7. Penalties. The penalty for any customer who is found to have violated the
provisions of this Act shall be subject to the following penalties:

The violator of Section 4, Paragraph a, herein shall be penalized by imprisonment of
‘one month to three months and a fine of ten thousand (PHP 10,000) to fifty thousand
(PHP 50,000) pesos. The violator shall likewise reimburse the online seller and
delivery service provider for the value of the items and delivery service fee. The
amount of the reimbursement shall be twice the amount of the confirmed order and
delivery service fee pertaining to the cancellation.

The violator of Section 4, Paragraph b, herein shall be liable for a fine of ten thousand
(PH? 10,000) co fifty thousand (PHI) 50,000) pesos. The violator shall like
reimburse the online seller and delivery service provider for the value of the items and
delivery service fee and/or any items advanced purchased by the delivery rider. The
amount of the reimbursement shall be twice the amount of the confirmed order and
delivery service fee pertaining to the cancellation.

Violators of Section 4, Paragraphs a and b, in the event they post their cancellations
‘on social media for purposes of pranking, gaining popularity or notoricty, vlogging,
cte., shall be deemed to have purposely transacted and cancelled with no serious intent
‘of consummating the purchase, and shall be penalized with imprisonment of one (1)
year to three (3) years, a fine of one hundred thousand pesos to one hundred and fifty
thousand pes er and/or delivery service provider that has

ise

and damages to the s


suffered as a result. Such damages shall be in an amount determined by the court and
shall be accompanied by a public apology.

SECTION 8. Separability Clause. In the event that any provision of this Act is declared
unconstitutional, invalid, or illegal, the constitutionality, validity, or legality of the remainder
of the provisions of this Act shall not be affected thereby.

SECTION 9. Repealing Clause. All laws, presidential decrees, letters of instructions,
executive orders, administrative orders, rules, regulations, and other issuances or parts thereof
which are contrary to or inconsistent with the provisions of this Act are hereby revoked,

repealed or modified accordingly.

SECTION 10. Effectivity. This Act shall take effect fifteen (15) days following the

completion of its publication in any two (2) national newspapers of general circulation.

Approved,