Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
____________________________________________________________________ 
Introduced by HON. JOSEPH “JOJO” L. LARA 
____________________________________________________________________ 
EXPLANATORY NOTE 
The rise of digital technology has paved the way in changing how we do business. 
With the advent of internet, we get to do most of our financial transactions through 
online platforms. We can send money, buy things, and sell things and get paid online 
as well.   
ECommerce has indeed become part of our lives. It has become the fastest and most 
convenient way to transact goods and services without the need to go anywhere or 
leave the confines of our homes.  
When COVID-19 struck the whole world, eCommerce stepped into the spotlight and 
has since been one of the key factors in economic growth and recovery in our country. 
According to data from the Department of Trade and Industry (DTI), e-commerce 
contributed 3.4%, or US$12 billion (PHP599 billion), to the country’s GDP in 2020 and 
is projected to increase e-commerce revenue to US$24 billion (PHP1.2 trillion), or 
5.5% of GDP, by 2022. 
The DTI also sees increase the number of e-commerce businesses from 500,000 in 
2020 to 750,000 in 2021 and one million by 2022. Our country’s economy is said to 
be consumer-driven, with a population of 109 million people, 49 million of whom work, 
making it very appealing for eCommerce businesses. 
Unfortunately, there are people out there out to take advantage of others. May it be 
thru phishing of personal information and documents, or marketing non-existent or 
substandard products and services, thus the need for a regulating body that will 
protect the interests of both the merchants and the consumers alike. 
This bill seeks to create an eCommerce Bureau that will make sure that security 
measures are set in place by the various eCommerce platforms in the market and 
ensure that goods and services are transacted online with appropriate transparency 
and utmost efficiency to encourage the creation of new products, services, business 
models and processes.  
August 1, 2022
5:12 pm
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In lieu if the foregoing, the passage of this bill is earnestly sought. 
JOSEPH “JOJO” L. LARA 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
____________________________________________________________________ 
Introduced by HON. JOSEPH “JOJO” L. LARA 
____________________________________________________________________ 
AN ACT 
PROVIDING PROTECTION TO CONSUMERS AND MERCHANTS ENGAGED IN 
INTERNET 
TRANSACTIONS, 
CREATING 
FOR 
THE 
PURPOSE 
THE 
ELECTRONIC 
COMMERCE 
BUREAU, 
AND 
APPROPRIATING 
FUNDS 
THEREFOR 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
CHAPTER 1 
GENERAL PROVISIONS 
SECTION 1. Short Title. – This Act shall be known as the "Internet Transactions 
Act'. 
SECTION 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 and 
utmost efficiency to encourage the creation of new products, services, business 
models and processes. Towards these ends, the State shall ensure an effective 
regulation of commercial activities through the internet or electronic means to ensure 
that consumer rights and data privacy are protected, innovation is encouraged, fair 
advertising practices and competition are promoted, online transactions are secured, 
intellectual property rights are respected, and where product standards and safety are 
observed. 
SECTION 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;
2929


 
 
(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; 
 
(y) Ride hailing service provider refers to those, who in the ordinary course of trade 
or business, provide for or facilitate ride hailing services; and 
 
SECTION 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. 
 


 
 
SECTION 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. 
 
SECTION 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 
 
SECTION 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 virtual 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 consultation 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 affect the conduct of eCommerce. 
 
SECTION 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.  
 
SECTION 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. 
 
SECTION 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 Bureau 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 2012", 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. 
 
SECTION 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 
 
SECTION 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. 
 
SECTION 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. 
 
SECTION 14. 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 2012", 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 DOJ. 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. 
 
SECTION 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. 
 
SECTION 16. 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 (LGUs) shall make available 
online registration of business permits and licenses particularly for those 
engaged in eCommerce. 
 
(c) The SEC, LGUs, and the CDA shall submit to the Bureau an annual list 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 
 
SECTION 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 marketing 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. 
 
SECTION 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 the person on whose behalf the commercial communication 
is made; 
 
(3) Clearly identify any promotional offer including any discount, premium, or 
gift, and ensure that any condition which must be met to qualify for it is 
easily accessible, and presented clearly and unambiguously; and 
 
(4) 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 (b) of this Section; 
 
(e) 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; 
 
(f) 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. 
 
SECTION 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: Be delivered along with the accessories including 
packaging, installation instructions or other instruction as the consumer 
may expect to receive; and 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 
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 the 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. 
 
SECTION 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 person 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 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 good into conformity with 
the contract; 
 
(d) The consumer is not entitled to a remedy to the extent 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. 
 
SECTION 21. Obligations of Ride Hailing Service Providers. – Ride hailing 
service providers shall require its 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.  
 
SECTION 22. Obligations of Consumers of Ride Hailing Services. – It shall be 
unlawful for consumers of ride hailing services to: 
 
(a) Cancel confirmed orders for the delivery of food or grocery items when the said 
items have already been paid by or is already in the possession of the Ride 
Hailing Service Partner or is otherwise in transit to the consumer unless: 
 
(1) The consumer uses credit card services as a means for the payment of the 
service and the payment will still be credited notwithstanding the 
cancellation; 
 
(2) The consumer remits the reimbursement and payment to the ride hailing 
service partner as a pre-condition for the cancellation of the order; or 
 
(3) The delivery of ordered food or grocery items will be or was delayed for at 
least one (1) hour from the expected time of arrival due to the fault or 
negligence of the ride hailing service partner. 
 


 
 
(b) Unreasonably shame, demean, embarrass, or humiliate ride hailing service 
partners. The consumer may invoke as a defense of good faith, a well-founded 
belief that the ride hailing service partner had committed a crime or caused 
civil injury towards the consumer. 
 
SECTION 23. Right to Terminate the Contract. – If the goods delivered do not 
conform to the contract, the consumer may exercise the right to terminate the contract 
by giving notice to the online merchant. Where the lack of conformity relates to only 
some of the goods delivered under the contract, the consumer may terminate the 
contract only in relation to the non-conforming good and any other goods which was 
acquired as an accessory to it. 
 
Where the consumer terminates a contract as a whole or in relation to some of the 
goods delivered: 
 
(a) The online merchant shall reimburse to the 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 depreciation through regular use. 
The payment for decrease in value shall not exceed the price paid for the 
goods. 
 
SECTION 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. 
 
SECTION 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 for all", where the privacy of its users is respected, and 
the ODR platform isaccessible 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-
court dispute resolution and information on  ADR entities which are 
competent to deal 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 with 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 ODR platform. 
 
SECTION 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 later 
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. 
 
SECTION 27. Digital Payments. – ECommerce platform operators and online 
merchants shall issue the appropriate paper or electronic invoices or receipts for all 
sales in accordance with relevant internal revenue laws and regulations. An electronic 
invoice or receipt shall have the same legal effect as a physical invoice or receipt. 
 
The DTI, through the Bureau, shall, in coordination with the Bangko Sentral ng 
Pilipinas (BSP), the BIR, the Bureau of Customs (BOC), the DOJ, the Philippine 
National Police, the DICT, and the NTC, issue rules and regulations to modernize and 
streamline the regulatory framework and encourage the adoption of electronic 
payment systems by the citizenry. The DTI shall also develop guidelines to protect 
merchants and consumers covering the various digital payment solutions. 
 
SECTION 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 20 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 
 
SECTION 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 
 
SECTION 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 Fifty 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. 
 
SECTION 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. 


 
 
 
SECTION 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. 
 
SECTION 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.  
 
SECTION 34. Appropriations. – The amount necessary to carry out the provisions 
of this Act shall be included in the annual General Appropriations Act. 
 
SECTION 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. 
 
SECTION 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. 
 
SECTION 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,