EIGHTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
)
SENATE
S.B. No. 2489
'^RECEIVEO'?”
5o E-FILED 
iCLi n>TP:..Jan24 2022 m
f ime;,
INDEX
(In Substitution of SB Nos. 1591 and 1808, 
taking into consideration HB No. 7805)
Prepared by the Committee on Trade, Commerce and Entrepreneurship joint with 
the Committees on Ways and Means; and Finance with Senators Gatchalian, Binay, 
Go, Marcos, Pacquiao and Pimentel III, as authors thereof.
AN ACT
PROTECTING CONSUMERS AND MERCHANTS ENGAGED IN INTERNET 
TRANSACTIONS, CREATING FOR THIS PURPOSE THE E-COMMERCE 
BUREAU, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER
PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
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SECTION 1. Short Title. - This Act shall be known as the "Internet Transactions
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Act of2022'.
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Sec. 2. Declaration of Policy. - It is the policy of the State to promote the
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growth of electronic commerce (e-commerce) in the country by building mutual trust
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between online sellers and consumers. The State recognizes the growth of the digital
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economy and the need to ensure that all goods and services transacted digitally be In
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accordance with specifications, and be reliable, secure, and accessible to all consumers
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for the purpose of increasing the productivity and efficiency of businesses. Towards
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these ends, the State shall ensure sustainable and fair e-commerce business practices
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through transparent and appropriate information disclosure, the maintenance and
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protection of data privacy rights, and an emphasis on the paramount importance of
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product safety. Likewise, the State shali provide meaningful access to effective
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mechanisms for the resolution of any and all disputes involving e-commerce, including
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alternative dispute resolution methods.
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Sec. 3. Definition of Terms. - As used in this Act:
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(a) 
Co/wpa/zM/fy refers to the ability of the digital product to function with
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hardware or software with which digital products of the same type are
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normally used, without the need for any conversion;
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(b) 
Consumer-to-consumer transactions refer to isolated transactions of an
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individual or group of individuals with another individual or group of
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individuals, done for personal, family, or household purposes, and not
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done in the ordinary course of business of any of the parties to the
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transaction;
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(c) 
Goodsxe^ex to tangible products which are primarily for personal, family,
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household, or agricultural purposes which include, but are not limited to,
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food, drugs, cosmetics, and devices;
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(d) 
Delivery Carrier refers to any natural or juridical person engaged in the
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business of providing personal delivery services of food, goods,
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documents, or any other item from one person to another for
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compensation;
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(e) 
Devices refer to equipment or mechanism designed to serve a special
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purpose or perform a special function;
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(f) 
Digital Platforms refer to internet intermediaries or businesses such as,
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but not limited to, e-marketplaces, online delivery enterprises,
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transportation booking, tourism booking, entertainment website and
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services, music products and services, social media, advertising,
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education and learning products, health websites and applications, labor
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services, among others, that match, connect, or facilitate interactions
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and transactions by and between any two or more parties to enable
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them to sell, exchange, share, or transact in any convenient manner,
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goods, services and digital products;
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(g) 
Digital Products refer to goods and services produced and supplied in
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digital form such as, but not limited to, video, audio, applications, digital


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games, and any and all other software that allows the consumer to 
create, process, download, store, or access digital content, or allows the 
sharing of the same, or any such other interaction with digital content 
provided by other users of the service;
(h) 
E-commerce Philippine Trustmark refers to the mark approved by the E- 
commerce Bureau signifying the legitimacy and verified status of an 
online merchant and provides for consumer protection in online or e- 
commerce transactions and, whenever applicable, accountability in case 
of consumer complaints;
(i) 
E-commerce or Online Transaction refers to an exchange or transfer of 
goods and services using the internet;
(j) 
E-Marketplace refers to a digital platform such as, but not limited to, 
eBay, Amazon, Shopee, Lazada, Carousell, Facebook Marketplace, 
among others, whose business is to connect online consumers and 
online merchants, facilitating the exchange of information regarding 
products or services for the purpose of entering into an e*commerce 
transaction such as the purchase of goods and services, tangible or 
intangible, and which may or may not provide information or services 
about payments and logistics;
(k) 
E-Retailer refers to a natural or juridical person engaged in selling 
products or services, tangible, or intangible, directly to online consumers 
through his own website or any other digital platform;
(l) 
Interoperability refers to the ability of the digital product to function with 
hardware or software different from those with which the digital product 
of the same type is normally used;
(m) 
Online Consumer refers to a natural or juridical person who may be a 
purchaser, lessee, recipient, or a prospective purchaser, lessor, or 
recipient, of goods and digital products sold, exchanged, leased, or 
transacted over the internet;
(n) 
Oniine Delivery Partner relers to a delivery carrier that performs delivery 
services through an online delivery service platform under contract with 
a digital platform or an E-marketplace;


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(o) 
Online Delivery Service refers to the delivery of food, parcels, or any
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other item, contracted through a digital platform which may be an
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application, website, webpage, social media account, or any similar
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means, operated by an online delivery service platform;
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(p) 
Online Delivery Service Platform refers to any natural or juridical person
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engaged in providing online delivery service for a fee through any digital
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platform; and,
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(q) 
Online Merchant refers to any natural or juridical person selling or
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manufacturing, or otherwise offers for sale or manufacture, any goods
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or digital products in the ordinary course of business, either through an
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e-marketplace, social media, website, application, or via any digital
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platform over the internet.
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Sec. 4. Scope and Coverage. - This Act shall apply to the sale or exchange of
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goods, services or digital products in the course of trade or business whether between
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businesses, households, individuals, and other public or private organizations,
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conducted over the internet. Consumer to consumer internet transactions shall not be
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covered under this Act.
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Sec. 5. E-commerce Bureau. - The E-commerce Division created through DTI
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Department Order No. 09*16 in accordance with Section 29 of Republic Act No. 8792
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or the "Electronic Commerce Act of2000' is hereby abolished, and an E-commerce
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Bureau under the Department of Trade and Industry (DTI) shall be created to perform
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the following functions:
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(a) 
Implement, monitor, and ensure compliance of the provisions of this Act;
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(b) 
Mandate entities engaged in e-commerce to register with the Online
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Business Registry;
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(c) Formulate policies, plans, and programs to ensure the robust and
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dynamic development of e-commerce;
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(d) Identify regulatory gaps affecting the e-commerce sector that are not
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sufficiently addressed by this Act or by existing laws or regulations, and
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recommend appropriate executive or legislative measures that foster the
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growth of the sector;


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(e) Act as a virtual one-stop shop tasked to receive and address consumer
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complaints on unresolved internet transactions between parties,
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facilitate the speedy resolution of consumer complaints by the respective
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government agency having jurisdiction over the same, and track
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complaints referred to or initiated by it motu proprio to ensure the
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speedy and appropriate action by the agency to which such matters
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pertain or otherwise have been referred to;
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(f) 
Coordinate with, or petition whenever appropriate, any entity,
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government agency, or instrumentality to act on any matter related to
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e-commerce consumer complaints;
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(g) 
Monitor internet market behavior, consult with stakeholders and
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concerned agencies to better understand e-commerce transactions, and
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prepare and conduct periodic studies on the same; and
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(h) Collaborate with the various departments of the national government
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and the local government units (LCDs) in the implementation of projects
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and programs promoting e-commerce, including information and
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education, as well as in ensuring a policy regime that is proactive;
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Sec. 6. Composition of the Bureau. -The Bureau shall be headed by a Director
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who must have sufficient knowledge and background in e-commerce and online
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transactions, and all the laws and processes related thereto. The Director shall be
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assisted by three (3) Assistant Directors; for policy and administration, for
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enforcement, and for operations.
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The Director and all assistant Directors shall be appointed by the President,
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upon the recommendation of the DTI Secretary, and must be career executive service
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officers with at least five (5) years of government service and such relevant experience
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in e-commerce development.
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Sec. 7. Online Business Registry (OBR). - Within a period of one (1) year from
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the effectivity of this Act, the Bureau shall, in coordination with the Department of
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Information and Communications Technology (DICT), establish, maintain, and
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manage an Online Business Registry (OBR) which shall provide consumers access to
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data and information of e-marketplaces, e-retailers, online merchants, and such other
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digital platforms engaged in the sale of goods, services, and digital products for


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purposes of verifying their existence, confirming their identity, and other such relevant
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or needed information.
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Sec. 8. Regulatory Jurisdiction of the DTI. - For purposes of this Act, the DTI
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shall exercise primary regulatory jurisdiction over e-marketplaces, e-retailers, online
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merchants, and other digital platforms that sell or allow the sale or exchange of goods,
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services or digital products, and are purposely availing of the Philippine market.
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Sec. 9. Authority to Issue Take-Down Order. — Whenever the Bureau finds, by
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its own initiative or upon petition of a consumer or other concerned party, that the
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online sale of goods, services or digital products is violative of this Act, the "Consumer
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Act of the Phiiippined', or any other related laws, the DTI Secretary, in order to abate
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any further violations, shall have the power to:
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(a) Impose an order, as a form of penalty, directing that the violative online
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product listing, webpage, business page, application, social media post,
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profile, website or when applicable, any platform of the online merchant
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or e-retailer related to the illegal product, be taken down, or the same
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be made inaccessible in the Philippines, whether temporarily or
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permanently; and
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(b) Issue an advisory that no entity shall process any payments made to any
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violating entity to ensure that the latter shall be rendered commercially
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inoperative.
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Provided that, the DTI Secretary may immediately issue a provisional take-
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down order to prevent grave and irreparable injury to the public, when the following
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conditions are present:
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(a) When the DTI Secretary finds that a good, service or digital product is
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imminently injurious, unsafe, or dangerous; or
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(b) When the seller under investigation has been previously penalized under
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this section.
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Whenever the DTI Secretary orders the immediate take-down, recall, ban, or
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seizure of an illegal product from public online sale or distribution, the seller,
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distributor, manufacturer, or producer thereof shall be given an opportunity to be
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heard within forty-eight (48) hours from the issuance of such order.


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The take-down order, whether imposed as a penalty or provisionally granted,
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shall be directed against the e-retailer, online merchant, or the owner or operator of
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the e-marketplace or digital platform. Copies of the order shall likewise be served on
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entities whose cooperation would be required for its enforcement such as but not
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limited to the duly registered internet service provider involved, related payment
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gateways, and other government agencies.
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The DTI Secretary may revoke the take down order after hearing the
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explanation submitted by the seller, distributor, manufacturer, or producer; in which
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case the order revoking the take down order shall be served on the entities mentioned
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and in the same manner stated in the preceding paragraphs.
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Sec. 10. Referral of Complaints. - The Bureau shall refer any complaint it
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receives involving violation of other laws committed in the course of an online or e-
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commerce transaction to the appropriate regulatory authority for action. The Bureau
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shall track the complaints or referrals made to other authorities and coordinate with
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them to ensure that matters are duly resolved in accordance with Republic Act No.
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11032, otherwise known as the "Ease of Doing Business and Efficient Government
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Service Delivery Act of 2018".
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Sec. 11. Obligations of E-Marketplaces and other Digital Platforms.-
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(a) E-Marketplaces and e-commerce digital platforms shall ensure that their
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e-commerce transactions shall:
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(i) Be clearly identifiable as an e-commerce transaction;
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(ii) Identify the person or persons on whose behalf the e-commerce
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transaction is made; and
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(iii) Identify any promotional offers including discounts, premiums,
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gifts, and any promotional game or competition, and ensure that
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any condition to qualify for them are easily accessible, and clearly
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set forth.
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(b) E-Marketplaces and e-commerce digital platforms shall require all online
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merchants to submit the following, prior to listing with their platforms:
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(i) Name of the online merchant accompanied by at least two (2)
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valid government identification cards;
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(ii) Geographic address where the online merchant is located;


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(iii) Contact details of the online merchant which must include a
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mobile or landline number and a valid e-mail address; and
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(Iv) In instances when the online merchant exercises a regulated
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profession, the online merchant shall be required to submit details
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of membership in any professional body or similar relevant
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institution with which the online merchant is registered or
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otherwise is a member of.
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Except for the government identification cards mentioned under
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Section ll(b)(i), the information required under this paragraph shall be
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published or posted on the e-commerce platforms for transparency.
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(c) E-Marketplaces and e-commerce digital platforms are mandated to
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maintain a list of all online merchants registered under their platform,
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which shall be regularly verified. This list shall be submitted to the
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Bureau and updated every six (6) months.
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(d) E-Marketplaces and e-commerce digital platforms shall not allow the sale
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of regulated goods such as, but not limited to, chemicals, food, and
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drugs without verifying the online merchant's compliance with regulatory
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permits and licenses, sale procedures and limitations, and other relevant
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conditions for the sale as may be imposed 
by any law or local
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government regulation.
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Sec. 12. Obligations of E-Retaiiers and Online Merchants. - An e-retailer or
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online merchant of goods, services or digital products, as defined under this Act, shall
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exercise the following responsibilities:
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(a) Ensure that the goods are received by the online consumer:
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(i) In the same condition, type, quantity, and quality as described
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and stated and, in applicable circumstances, possess the
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functionality, compatibility, interoperability, and other features
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required by the sales contract, fit for the purpose for which it was
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intended by its nature;
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(ii) In the same condition, type, quantity and quality of a sample,
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picture, or model of the goods shown by the e-retailer or online
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merchant upon request of the online consumer, or of additional


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descriptions or specifications provided by the e*retailer or online 
merchant upon inquiries made by the oniine consumer; and 
(iii) It must also be fit for the particular purpose for which the online 
consumer requires them, as communicated to the e-retailer or 
online merchant at the time of the perfection of the contract, and 
which the e-retailer or online merchant has accepted;
(b) 
All the goods shall:
(i) 
Be delivered together widi its accessories including all other 
packaging, installation inclusions, any user manual or other 
instructions as advertised or as described, if applicable, with 
relevant information stated in the packaging, printed or written 
in Filipino and/or English; and
(ii) 
Possess qualities and performance capabilities including 
functionality, compatibility, and interoperability that are 
standard and normal in goods of the same type which the 
consumer may expect given its nature and considering any 
public statement or testimonial made by or on behalf of the e- 
retailer, online merchant, or other persons in earlier links of the 
chain of transactions, including the producer, unless the e- 
retailer or online merchant shows that:
1. The e-retailer or online merchant was not, and 
could not have been, reasonably aware of the 
statement in question;
By the time of conclusion of the contract, the 
statement had already been corrected; or 
The decision to buy the goods could not have been 
influenced by the statement.
(c) 
Where the e-retailer or online merchant is a digital product provider, it 
shall ensure that the digital product has the qualities and performance 
features, in relation to functionality, compatibility, interoperability, 
accessibility, continuity, and security, which are standard and normal for 
a digital product of the same type as advertised or described.
2.
3.


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(d) Where the contract provides that the digital product is to be supplied or
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made accessible to the online consumer over a period of time, the e-
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retailer or online merchant may modify the digital product beyond what
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is necessary for its maintenance, if the following conditions are met:
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(i) 
The contract allows, and provides a valid reason for, such a
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modification;
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(ii) 
Such a modification is made without additional cost to the
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consumer; and
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(iii) The online consumer is informed in a clear and comprehensible
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manner of the modification.
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(e) Where the transaction involves a digital platform that offers a
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performance of a service, the e-retailer or online merchant shall ensure
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the completion of the same in accordance with the contract and as
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advertised.
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(f) An e-retailer or an online merchant that operates its own digital platform
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shall publish on its homepage the following:
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(i) 
Name of the e-retailer or online merchant;
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(ii) 
Geographic address where the e-retaller or online merchant is
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located; and
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(iii) Contact details of the e-retailer or online merchant which must
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include a mobile or landline number and a valid e-mail address
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to ensure direct and efficient communication with consumers.
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This shall be submitted to the Bureau and must be accompanied by
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at least two (2) government identification cards as valid proof of identity.
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(g) Where the e-retailer or online merchant is an online delivery service
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platform, it shall require its consumers to register by showing valid proof
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of identity, and an e-mail address or mobile phone number.
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(h) E-retailers or online merchants shall issue paper or electronic invoices or
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receipts for all sales. An electronic invoice or receipt shall have the same
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legal effect as a paper invoice or receipt.
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Any agreement between the e-retailer or online merchant and the online
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consumer is valid only if, at the time of the conclusion of the contract, the online
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consumer has knowledge of the specific condition of the goods, services or digital
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products and has expressly accepted such condition.
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Sec. 13. Rights and Obligations of Online Consumers. -
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(a) When the online merchant is liable to the consumer because of a lack of
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conformity with the contract, the consumer may pursue any of the
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following remedies:
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(I) A repair or replacement of the goods or digital product whidi
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must be completed within a reasonable time and without any
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significant inconvenience to the consumer, taking Into account
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the nature and the purpose for which the consumer acquired
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such;
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(ii) A proportionate reduction of the price if the consumer chooses
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to keep the good or digital product despite the lack of
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conformity with the contract, or the termination of the contract
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with restitution of the price, in the following instances:
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1. 
When 
repair or replacement is impossible or
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unlawful;
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2. 
The online merchant has not completed repair or
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replacement within a reasonable time;
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3. 
When repair or replacement may cause significant
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inconvenience to the consumer; or
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When the online merchant has declared, or it is
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equally clear from the circumstances, that the online
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merchant may not bring the goods or digital product
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in conformity with tie contract within a reasonable
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time;
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(iii) When applicable, the consumer is entitled to withhold the
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payment of any outstanding part of the purchase price until
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the online merchant has brought the goods or digital product
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in conformity with the contract;
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(b)
(c)
(iv) 
The consumer is not entitled to a remedy to the extent that 
the consumer has contributed to any ambiguity or lack of 
conformity with the contract or its effects;
(v) 
When the online merchant remedies the lack of conformity 
with the contract by replacement, the online merchant is 
entitled to the return of the replaced goods or digital products 
at the online merchant's expense, unless otherwise agreed 
upon by tJie parties;
(vi) 
When the consumer had installed the goods or digital 
products in a manner consistent with their nature and 
purpose, before the lack of conformity with the contract 
became apparent, the costs for the removal of the non­
conforming goods or digital products, the installation of the 
replacement and all associated costs shall be for the account 
of the online merchant;
(vii) 
In case of goods or digital products tfiat do not conform witii 
the contract, the consumer is not liable to pay for the use of 
the non-conforming goods or digital products prior to its 
replacement;
(viii) The consumer may exercise the choice in the alternative 
between repair or replacement of the purchased good or 
digital product, unless such choice is impossible in which case 
the consumer may choose to terminate the contract and 
return the item, and the online merchant shall refund the full 
amount paid by the consumer.
Consumers of online delivery service platforms may hold delivery carriers 
liable for damages if the latter fail to exercise due diligence and 
reasonable care over the goods transported by them.
To protect the rights of delivery carriers, it shall be unlawful for 
consumers to:
(i) Cancel confirmed orders for the delivery of food or grocery 
items when the said items have already been paid for by, or
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is already in the possession of the online delivery partner or
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delivery service, or is otherwise in transit to the consumer
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unless:
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1. 
The consumer uses credit card services as a means
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for the payment of the service and the payment will
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still be credited notwithstanding the cancellation;
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2. 
The consumer remits the reimbursement and
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payment to the online delivery partner as a pre-
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condition for the cancellation of the order; or
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3. 
The delivery of goods will be or was delayed for at
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least one (1) hour from the expected time of arrival
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due to the fault or negligence of the online delivery
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partner or delivery service.
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(ii) 
Use the personal information of another person such as, but
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not limited to, name, address, and contact number when
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registering in online delivery service platforms;
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(iii) 
Place an order under the name of another person, unless the
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latter consented to the same, or placing an order using a
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fictitious name and/or address; or
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(iv) 
Unreasonably shame, demean, embarrass, or humiliate online
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delivery partners.
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Sec. 14. to Terminate the Contract - If the goods or digital products
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delivered do not conform to the contract, the consumer may exercise the right to
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terminate the contract by giving notice to the online merchant. Where the lack of
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conformity relates to only some of the goods or digital products delivered under the
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contract, the consumer may terminate the contract only in relation to the non-
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conforming goods or digital products and any such accessory acquired as an adjunct
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to the same.
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When the consumer terminates a contract as a whole or in relation to some of
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the non-conforming goods or digital products delivered:
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(a) The online merchant shall reimburse to the consumer the price paid not
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later than fourteen (14) days from receipt of the notice and without
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undue delay whatsoever;
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(b) Upon receipt of the reimbursement from the online merchant, the
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consumer shall return, at the online merchant's expense, the goods or
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digital products not later than fourteen (14) days from the receipt of the
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reimbursement and without undue delay whatsoever, provided that the
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online merchant may waive this requirement at any time;
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(c) When the goods or digital products cannot be returned because of
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destruction or loss, the consumer shall pay the monetary value which
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the non-conforming goods or digital products would have had at the
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date when the return was to be made had they been kept by the
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consumer without destruction or loss until that date, unless the
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destruction or loss has been caused by a lack of conformity of the goods
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or digital products with the contract; and
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(d) The consumer shall pay for a decrease in the value of the goods or digital
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products only to the extent that the decrease in value exceeds
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depreciation through regular use. The payment for decrease in value
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shall not exceed the price paid for the goods or digital products.
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Sec. 15. Damages. - The online merchant is liable for damages to the consumer
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due to the lack of conformity with the contract of the goods or digital products:
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Provided, that such becomes apparent within six (6) months from receipt of the said
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goods or digitai product.
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No damages may be recovered from this Act after the lapse of two (2) years
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from the time the consumer receives the goods or digital products.
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Sec. 16. Online Dispute Resolution. - The DTI shall develop an Online Dispute
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Resolution (ODR) platform which is a single point of entry for parties to e-commerce
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transactions that are seeking out-of-court resolution of disputes when the platforms
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or merchants fail to resolve or assist consumers with their concerns.
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(a) The ODR shall be an interactive website accessible electronically and
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free of charge. The DTI, through the Bureau, shall be responsible for its
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operation, including its maintenance, funding, and data security. The
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ODR platform must be user-friendly, easily accessible, and data privacy
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compliant.
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(b) The DTI shall establish a network of ODR contact points from different
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government agencies involved in consumer complaints as specified in
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Republic Act No. 7394, otherwise known as the " Consumer Act of the
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Philippine^, including the Department of Agriculture (DA), Department
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of Tourism (DOT), and the Department of Health (DOH), among others.
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The Intellectual Property Office of the Philippines (IPO) shall also be part
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of the ODR network.
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(c) Each agency shall have a designated ODR contact point whose name
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and contact information are to be submitted to the DTI. The head of the
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agency shall confer responsibility to the respective ODR contact points
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to ensure that timely and competent support is provided to the resolution
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of complaints and disputes submitted through the ODR platform.
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(d) The ODR platform shall have the following functions:
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(I) 
Provide an electronic form where alternative dispute
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resolution entities shall transmit the information;
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(ii) 
Provide a feedback system that will allow parties to express
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their views on the efficiency of the ODR platform and on the
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response of the entity handling their dispute; and
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(iii) 
Make available to the public, general information on
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alternative dispute resolution as a means of out-of-court
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dispute resolution and the entities which are competent to
24 
deal with such disputes.
25 
(e) The DTI shall ensure that the information on the website is accurate and
26 
up to date.
27 
(f) Online e-commerce platforms and online merchants shall provide on
28 
their websites an electronic link to the DTI-ODR platform on their
29 
homepage.
30 
Sec. 17. Liability. - An e-marketplace or e-commerce digital platform shall be
31 
solidarily liable with its listed online merchant, after due notice and hearing, under the
32 
following circumstances:
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(a) 
If it feils to provide a mechanism for consumers to dispute, be refunded, 
or validly cancel orders. For this purpose, refunds to cash-paying 
customers should also be in cash;
(b) 
When the online e-commerce platform fails to properly resolve disputes, 
refunds, or valid cancellation of orders of consumers within a reasonable 
time;
(c) 
If it knows or should have known that the goods, services or digital 
products sold are illegal, do not comply with existing laws, or otherwise 
infringe on intellectual property rights;
(d) 
If it fails to take necessary measures to prevent or curtail the sale or 
distribution of the products which are illegal, do not comply with existing 
laws, or otherwise infringe on intellectual property rights within a 
reasonable period.
Liability shall not attach to the e-marketplace or e-commerce 
digital platform in instances when the illegality or infringing nature of the 
goods, services or digital products advertised, offered for sale, or sold 
through e-marketplace or e-commerce digital platform is not apparent, 
provided that:
(i) 
The online e-commerce platform offers a simple and 
straightforward procedure for consumers, rights-holders, or 
online merchants to report the existence of illegal or infringing 
goods, services or digital products in the platform;
(ii) 
Consumers, rights-holders, and online merchants are properly 
informed on the policy implementing such procedure;
(iii) 
Any report of illegal or infringing goods, services or digital 
products shall be expeditiously acted upon through 
investigations, suspensions, and take-down measures, if 
necessary, by the platform;
(e) 
If the online e-commerce platform fails to comply with the requirements 
of this Act involving the collection, publication, and submission of online 
merchant information; and
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(f) If the e-commerce platform operator fails, after notice, to act
2 
expeditiously to remove, or disable access to, goods, services or digital
3 
products appearing on their platform that they know or should have
4 
known to be non-compliant with law, or otherwise infringe on intellectual
5 
property rights.
6 
Sec. 18. E-commerce Philippine Trustmark. - To provide assurance of safety
7 
and security in transactions over the internet, an e-commerce Philippine Trustmark
8 
shall be developed for online merchants.
9 
(a) A Trustmark and Trustmark Portal shall be created which shall be
10 
administered and managed by the DTI.
11 
(b) A Trustmark on the website of an online merchant signifies that the
12 
company is committed to guarantee honesty, fairness, and integrity in
13 
dealing with its customers, and is committed to refrain from engaging in
14 
any illegal, fraudulent, unethical, or unfair business practices.
15 
(c) In case of a complaint involving the purchase of their products or
16 
services, online merchants with the Trustmark shall give consumers the
17 
option of filing claims through the Trustmark portal, 
if the online
18 
merchant's customer care service has not been able to resolve the issue.
19 
(d) 
The Trustmark shall be linked to the DTI's online dispute resolution.
20 
(e) 
The Trustmark shall be considered an official document for purposes of
21 
the crime of falsification as defined under the Revised Penal Code and
22 
other related laws. Any E-marketplace, e-retailer, online merchant, or e-
23 
commerce digital platform that is found guilty of falsifying or forging the
24 
E-commerce Philippine Trustmark, shall be subjected to a take-down
25 
order in accordance with Section 9 of this Act.
26 
Sec. 19. Implementing Agencies, Rules, and Regulations. - Within sixty (60)
27 
days from the promulgation of this Act, the necessary rules and regulations shall be
28 
formulated and issued by the DTI, in consultation with the DICT, IPO, DOH, the Food
29 
and Drug Administration (FDA), and other relevant government agencies necessary
30 
for the proper implementation of this Act.
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Sec. 20. Jurisdiction of Other Agencies. - The agencies mentioned in Section
2 
19 of this Act shall continue to exercise the powers and duties provided to them under
3 
existing laws, unless repealed or modified accordingly.
4 
Sec. 21. Penalties. -
5 
(a) Any e-marketplace, e-retailer, online merchant or e-commerce digital
6 
platform that is found guilty of any deceptive, unfair or unconscionable
7 
sales act or practice as provided for under Republic Act No. 7394 or the
8 
"Consumer Act of the Philippine^' done through the internet, shall be
9 
subjected to a take-down order in accordance with Section 9 of this Act.
10 
It shall also be punished with a fine of not less than Fifty Thousand Pesos
11 
(PhP50,000.00) but not more than Five Hundred Thousand Pesos
12 
(PhP500,000.00), or an imprisonment of not less than five (5) months
13 
but not more than (1) year, or both, upon the discretion of the court.
14 
(b) Any e-marketplace, e-retailer, online merchant or e-commerce digital
15 
platform that sells or allows the sale of illegal, or imminently injurious,
16 
unsafe or dangerous goods, services or digital products shall be subject
17 
to a take-down order in accordance with Section 9 of this Act. It shall
18 
also be punished with:
19 
(i) 
Imprisonment of one (1) year to three (3) years plus a fine
20 
ranging from Fifty Thousand Pesos (PhP50,000.00) to One
21 
Hundred Fifty Thousand pesos (PhPlSO,000.00) for the first
22 
offense.
23 
(ii) 
Imprisonment of three (3) years and one (1) day to six (6)
24 
years plus a fine ranging from One Hundred Fifty Thousand
25 
Pesos (PhPlSO,000.00) to Five Hundred Thousand Pesos
26 
(PhP500,000.00) for the second offense.
27 
(iii) 
Imprisonment of six (6) years and one (1) day to nine (9)
28 
years plus a fine ranging from Five Hundred Thousand Pesos
29 
(PhP500,000.00) to One Million Five Hundred Thousand Pesos
30 
(PhPl,500,000.00) for the third and subsequent offenses.
31 
(c) Any e-retaiier or online merchant who shall willfully or unreasonably
32 
refuse to provide the remedies under Section 13 (a), shall be subjected
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to a take-down order in accordance with Section 9 of this Act, and be
2 
punished with a fine not less than One Hundred 
Thousand Pesos
3 
(PhP100,000.00), but not more than Three Hundred Thousand Pesos
4 
(PhP300,000.00), in addition to the payment of the actual value of the
5 
goods or digital products involved.
6 
(d) Any person who shall violate Section 13 (c) of this Act, shall be punished
7 
with a penalty of arresto mayor or a fine not exceeding One Hundred
8 
Thousand Pesos (PhP100,000), without prejudice to any other available
9 
remedies under existing laws.
10 
In case any violation of this Act is committed by a partnership, corporation or
11 
any juridical entity, the President, the General Manager, and other officers, employees
12 
and agents, who shall consent to, or shall knowingly tolerate such violation shall be
13 
criminally liable.
14 
Sec. 22. Appropriations. - The amount of Fifty Million Pesos
15 
(PhPSO,000,000.00) for the initial operation of the Bureau is hereby appropriated out
16 
of any funds in the National Treasury not otherwise appropriated. Thereafter, such
17 
sum as may be necessary for the continued implementation of this Act shall be
18 
included in the annual General Appropriations Act.
19 
Sec. 23. Separability Clause. - Should any provision or part of this Act be
20 
declared unconstitutional or invalid, the other provisions and parts hereof, insofar as
21 
they are separable from the invalid ones, shall remain in full force and effect.
22 
Sec. 24. Repealing Clause. - All laws, decrees, orders, issuances, rules and
23 
regulations or parts thereof which are inconsistent with this Act are hereby repealed
24 
or modified accordingly.
25 
Sec. 25. Effectivlty Clause. - This Act shall take effect fifteen (15) days after its
26 
publication in the Official Gazette or in at least two (2) newspapers of general
27 
circulation.
28 
Approved,
19