A'/~' A
NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
First Regular Session 
)
SENATE 
S. B. No. 1478
ik. j senate
of tljf jfe(frftnrj>
*22 NOV “8 A 9 32
RECEIVED Bv,
Introduced by SENATOR JOEL VILLANUEVA
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
EXPLANATORY NOTE
Restrictions in mobility and economic activities due to the COVID-19 pandemic have 
allowed the digital economy to flourish. According to the Philippine Statistics Authority 
(PSA), the digital economy1 in 2021 amounted to Phpl .87 trillion, contributing 9.6 percent 
to the Philippines’ Gross Domestic Product (GDP). This is a significant increase of 7.8% 
from the PhP1.73 trillion recorded in 2020.2 In addition, according to the PSA, the digital 
economy employed 5.01 million Filipinos in 2020, eventually reaching 5.59 million in 
2021, representing an increase of 11.6% year-on-year.3
Meanwhile, Google and Temasek’s 2022 e-Conomy SEA Report shows that the 
digital decade in the Philippines continues its upward trend at 20% year-on-year to reach 
USD20 billion in Gross Merchandise Value (GMV) in 2022, compared to USD16 billion in 
2021. E-commerce is projected to propel the growth of the country’s digital economy to 
USD35 billion by 2025 and USD100-150 billion by 2030.4
In order to leverage internet transactions to their full extent, regulatory reforms must 
be put in place to create a digital business environment that is conducive and inclusive. 
This necessitates minimizing the inherent risks of the digital world that tend to exploit 
consumers and sellers alike.
This proposed measure seeks to harness the value and potential of digital 
transactions in accelerating our economic growth, increasing productivity, and creating 
more jobs for Filipinos. It shall ensure sustainable and fair e-commerce business 
practices through transparent and appropriate information disclosure, secured online 
transactions, the maintenance and protection of data privacy rights, the promotion of
1 
The digital economy is composed of digital transactions covering Digital-enabling infrastructure. E-commerce, and Digital 
media/content.
2 
Philippine Statistics Authority (PSA). Country’s Digital Transactions Reached PhP 1.87 Trillion in 2021, with 9.6 Percent 
Contribution to the Gross Domestic Product. Published on 26 October 2022. Available at https://psa.aov.oh/press- 
releases/id/168236 (Accessed on November 3, 2022).
3 
Op. cit., PSA
4 
Google. e-Conomy SEA 2022: Philippines Report. Available at 
https://services.gooqle.com/fh/files/niisc/philippines e conomv sea 2022 report.pdf (Accessed on November 3, 2022).


innovation, competition and use of fair advertising practices, and an emphasis on the 
paramount importance of product safety. Further, it seeks to put in place effective 
mechanisms for the resolution of any and all disputes involving e-commerce, including 
alternative dispute resolution methods.
Towards these ends, the E-commerce Bureau under the Department of Trade and 
Industry is hereby created to formulate policies, plans, and programs to ensure the robust 
and dynamic development of e-commerce; serve as a virtual one-stop shop tasked to 
receive and address consumer complaints on unresolved internet transactions between 
parties; and implement, monitor, and ensure compliance of all stakeholders to the 
provisions of this proposed measure, among others.
Considering the foregoing, the immediate passage of this measure is earnestly 
sought.
SENATOR JOEL VILLANUEVAjy


NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
First Regular Session 
)
Senate
of tijf gsrartnrp
*22 NOV-8 A 9 32
SENATE
Senate Bill No. 1478
RtCEIVtD BV.
Introduced by SENATOR JOEL VILLANUEVA
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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:
SECTION 1. Short Title. - This Act shall be known as the “Internet Transactions
Act."
SEC. 2. Declaration of Policy. - It is the policy of the State to promote the growth 
of electronic commerce (e-commerce) in the country by building mutual trust between 
online sellers 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 e-commerce 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 sustainable and fair e-commerce business practices through transparent and 
appropriate information disclosure, secured online transactions, the maintenance and 
protection of data privacy rights, the promotion of innovation, competition and use of fair 
advertising practices, and an emphasis on the paramount importance of product safety. 
Likewise, the State shall provide meaningful access to effective mechanisms for the 
resolution of any and all disputes involving e-commerce, including alternative dispute 
resolution methods.
SEC. 3. Definition of Terms. - As used in this Act:
(a) 
Compatibility refers to the ability of the digital product to function with hardware or 
software with which digital products of the same type are normally used, without the 
need for any conversion;
(b) 
Consumer-to-consumer Transactions (C2Cs) refer to isolated transactions of an 
individual or group of individuals, done for personal, family, or household purposes, 
and not done in the ordinary course of business of any of the parties to the 
transaction;


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(c) 
Goods refer to tangible products which are primarily for personal, family, household, 
or agricultural purposes which include, but are not limited, to food, drugs, cosmetics, 
and devises:
(d) 
Delivery Carrier refers to any natural or juridical person engaged in the business of 
providing personal delivery services of food, goods, documents, or any other item 
from one person to another for compensation;
(e) 
Devices refer to equipment or mechanisms designed to serve a special purpose or 
perform a special function;
(f) 
Digital Platforms refer to internet intermediaries or businesses such as, but not 
limited, to e-marketplaces, online delivery enterprises, transportation booking, 
tourism booking, entertainment website and services, music products and services, 
social media, advertising, education and learning products, health websites and 
applications, labor services, among others, that match, connect, or facilitate 
interactions and transactions by and between any two or more parties to enable 
them to sell, exchange, share, or transact in any convenient manner, goods, 
services, and digital products;
(g) 
Digital Products refer to goods and services produced and supplied in digital form, 
such as, but not limited, to video, audio, applications, digital 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 one’s 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, ora prospective purchaser, lessor, or recipient, of good and digital 
products sold, exchanged, leased, or transacted over the internet;
(n) 
Online Delivery Partner refers 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 other item, 
contracted through a digital platform which may be an application, website, 
webpage, social media account, or any similar means, operated by an online 
delivery service platform;
(p) 
Online Delivery Service Platform refers to any natural or juridical person engaged 
in providing online delivery service for a fee through any digital platform; and
(q) 
Online Merchant refers to any natural or juridical person selling or manufacturing, 
or otherwise offers for sale or manufacture, any goods or digital products in the 
ordinary course of business, either through an e-marketplace, social media, website, 
application, or via any digital platform over the internet.
SEC. 4. Scope and Coverage. - This Act shall apply to the sale or exchange of 
goods, services, or digital products in the course of trade or business whether between 
businesses, households, individuals, and other public or private organizations, conducted 
over the internet. Consumer-to-consumer internet transactions, and transactions 
involving financial products and services covered under Republic Act No. 11765 or the 
“Financial Products and Services Consumer Protection Act,” shall not be covered under 
this Act.
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 e-commerce.
SEC. 5. E-commerce Bureau. - To ensure the attainment of the objectives of this 
Act and to promote the growth of e-commerce, the E-Commerce Division created through 
Department of Trade and Industry (DTI) Department Order No. 09-16 in accordance with 
Section 29 of Republic Act No. 8792 or the “Electronic Commerce Act of 2000,” is hereby 
abolished, and an E-commerce Bureau under the DTI shall be created to perform the 
following functions:
(a) 
Implement, monitor, and ensure compliance of the provisions of this Act;
(b) 
Mandate entities engaged in e-commerce to register with the Online Business 
Registry;
(c) 
Formulate policies, plans, and programs to ensure the robust and dynamic 
development of e-commerce;
(d) 
Identify regulatory gaps affecting the e-commerce sector that are not sufficiently 
addressed by this Act or existing laws or regulations, and recommend appropriate 
executive or legislative measures that foster the growth of the sector;
(e) 
Act as a virtual one-stop shop tasked to receive and address consumer complaints 
on unresolved internet transactions between parties, facilitate the speedy resolution 
of consumer complaints by the respective government agency having jurisdiction 
over the same, and track complaints referred to or initiated by it motu proprio to 
ensure the speedy and appropriate action by the agency to which such matters 
pertain or otherwise have been referred to;
(f) 
Coordinate with, or petition, whenever appropriate, any entity, government agency, 
or instrumentality to act on any matter related to e-commerce consumer complaints;
(g) 
Monitor internet market behavior, consult with stakeholders and concerned 
agencies to better understand e-commerce transactions, and prepare and conduct 
periodic studies on the same; and


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(h) Collate with the various departments of the national government and the local 
government units (LGUs) in the implementation of projects and programs promoting 
e-commerce, including information and education, as well as in ensuring a policy 
regime that is proactive;
SEC. 6. Composition of the Bureau. - The Bureau shall be headed by a Director 
who must have sufficient knowledge and background in e-commerce and online 
transactions, and all the laws and processes related thereto. The Director shall be 
assisted by three (3) Assistant Directors: for policy and administration, for enforcement, 
and for operations.
The Director and all Assistant Directors shall be appointed by the President, upon 
the recommendation of the DTI Secretary, and must be career executive officers with at 
least five (5) years of government service, and such other relevant experience in e- 
commerce development.
The DTI Secretary shall determine the organizational structure and staffing pattern 
of the Bureau, subject to the approval of the Department of Budget and Management 
(DBM) Secretary.
SEC. 7. Online Business Registry (OBR). - Within a period of one (1) year from 
the effectivity of this Act, the Bureau shall, in coordination with the Department of 
Information and Communications Technology (DICT), establish, maintain, and manage 
an Online Business Registry (OBR) which shall provide consumers access to data and 
information of e-marketplaces, e-retailers online merchants, and such other digital 
platforms engaged in the sale of goods, services, and digital products for purposes of 
verifying their existence, confirming their identity, and other such relevant or needed 
information.
SEC. 8. Regulatory Jurisdiction of the DTI. - For purposes of this Act, the DTI 
shall exercise primary regulatory jurisdiction over e-marketplaces, e-retailers, online 
merchants, and other digital platforms that sell or allow the sale or exchange of goods, 
services, or digital products, and are purposely availing of the Philippine market.
SEC. 9. Authority to Issue Take-Down Order. - Whenever the Bureau finds, by 
its own initiative or upon petition of a consumer or other concerned party, that the online 
sale of goods, services, or digital products is violative of this Act, the provisions of 
Republic Act No. 7394, or the “Consumer Act of the Philippines,” or any other related 
laws, the DTI Secretary, in order to abate any further violations, shall have the power to;
(a) 
Impose an order, as a form of penalty, directing that the violative online product 
listing, webpage, business page, application, social media post, profile, website, or 
when applicable, any platform of the online merchant or e-retailer related to the 
illegal product, betaken down, or the same be made inaccessible in the Philippines, 
whether temporarily or permanently; and
(b) 
Issue an advisory that no entity shall process any payments made to any violating 
entity to ensure that the latter shall be rendered commercially inoperative.
Provided, that the DTI Secretary may immediately issue a provisional take-down 
order to prevent grave and irreparable injury to the public, when the following conditions 
are present:
(a) When the DTI Secretary finds that a good, service, or digital product is imminently 
injurious, unsafe, or dangerous; or


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(b) When the seller under investigation has been previously penalized under this
Section.
Wheneverthe DTI Secretary orders the immediate take-down, recall, ban, or seizure 
of an illegal product from public online sale or distribution, the seller, distributor, 
manufacturer, or producer thereof shall be given an opportunity to be heard within forty- 
eight (48) hours from the issuance of such order. For this purpose, the DTI shall 
promulgate the necessary rules and regulations defining illegal products, including videos 
or other digital products that are in violation of Republic Act No. 9775, othenwise known 
as the “Anti-Child Pornography Act of 200,” and Republic Act No. 9995, otherwise known 
as the “Anti-Photo and Video Voyeurism Act of 2009,” and other similar products that 
appeal to prurient interest in accordance with relevant laws and jurisprudence.
The take-down order, whether imposed as a penalty or provisionally granted, shall 
be directed against the e-retailer, online merchant, or the owner or operator of the e- 
marketplace or digital platform. Copies of the order shall likewise be served on entities 
whose cooperation is necessary for its enforcement, such as, but not limited, to the duly 
registered internet service provider involved, related payment gateways, and other 
government agencies.
The DTI Secretary may revoke the take-down order after hearing the explanation 
submitted by the seller, distributor, manufacturer, or producer; in which case, the order 
revoking the take-down order shall be served on the entities mentioned and in the same 
manner stated in the preceding paragraphs.
SEC. 10. Referral of Complaints. - The Bureau shall refer any complaint it 
received involving violation of other laws committed in the course of an online or e- 
commerce transaction to the appropriate regulatory authority for action. The Bureau shall 
track the complaints or referrals made to other authorities and coordinate with them to 
ensure that matters are duly resolved in accordance with Republic Act No. 11032, or the 
“Ease of Doing Business and Efficient Government Service Delivery Act of 2018.”
SEC. 11. Obligations of E-Marketplaces and other Digital Platforms. -
(a) 
E-Marketplaces and e-commerce digital platforms shall ensure that their e-
commerce transactions:
(1) 
Are clearly identifiable as an e-commerce transaction;
(2) 
Identify the person or persons on whose behalf the e-commerce transaction is 
made; and
(3) 
Identify any promotional offers, including discounts, premiums, gifts, and any 
promotional game or competition, and ensure that any condition to qualify for 
them are easily accessible, and clearly set forth.
(b) 
E-Marketplaces and e-commerce digital platforms shall require all online merchants
to submit the following, prior to listing with their platforms:
(1) 
Name of the online merchant accompanied by at least two (2) valid 
government identification cards or registration documents;
(2) 
Geographic address where the online merchant is located;
(3) 
Contact details of the online merchant which must include a mobile or landline 
number and a valid e-mail address; and


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(4) In instances when the online merchant exercises a regulated profession, the 
online merchant shall be required to submit details of membership in any 
professional body or similar relevant institution with which the online merchant 
is registered or otherwise is a member of.
Except for the government identification cards or registration documents 
mentioned under Section 11(b)(1), the information required under this 
paragraph shall be published or posted on the e-commerce platforms for 
transparency.
(c) 
E-Marketplaces and e-commerce digital platforms shall maintain a list of all online 
merchants registered under their platform, which shall be regularly verified. This list 
shall be submitted to the Bureau and updated every six (6) months.
(d) 
E-Marketplaces and e-commerce digital platforms shall not allow the sale of 
regulated goods, such as, but not limited, to chemicals, food, and drugs without 
verifying the online merchant’s compliance with regulatory permits and licenses, 
sale procedures and limitations, and other relevant conditions for the sale as may 
be imposed by any law, rule or regulation, whether national or local. Upon its 
discovery or non-compliance by an online merchant registered with its platform, e- 
marketplaces and e-commerce digital platforms shall report such fact to the Bureau 
within fifteen (15) days from discovery thereof.
(e) 
E-Marketplace and e-commerce digital platforms shall submit to the DTI their 
registration documents such as articles of incorporation issued by the Philippine 
Securities and Exchange Commission or counterpart foreign agencies and/or 
appropriate registration documents with the Bureau of Internal Revenue.
SEC. 12. Obligations of E-Retailers and Online Merchants. - An e-retailer or
online merchant of goods, services, or digital products, as defined under this Act, shall
exercise the following responsibilities:
(a) 
Ensure that the goods are received by the online consumer:
(1) 
In the same condition, type, quantity, and quality as described and stated and, 
in applicable circumstances, possess the functionality, compatibility, 
interoperability, and other features required by the sales contract, fit for the 
purpose for which it was intended by its nature;
(2) 
In the same condition, type, quantity, and quality of a sample, picture, or model 
of the goods shown by the e-retailer or online merchant upon request of the 
online consumer, or of additional descriptions or specification provided by the 
e-retailer or online merchant upon inquiries made by the online consumer; and
(3) 
Fit 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:
(1) 
Be delivered together with 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
(2) 
Possess qualities and performance capabilities including functionality, 
compatibility, and interoperability that are standard and normal in goods of the


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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:
i. 
The e-retailer or online merchant was not, and could not have been, 
reasonably aware of the statement in question;
ii. 
By the time on conclusion of the contract, the statement had already 
been corrected; or
iii. 
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.
(d) 
Where the contract provides that the digital product is to be supplied or made 
accessible to the online consumer over a period of time, the e-retailer or online 
merchant may modify the digital product beyond what is necessary for its 
maintenance, 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 online consumer is informed in a clear and comprehensible manner of the 
modification.
(e) 
Where the transaction involves a digital platform that offers a performance of a 
service, the e-retailer or online merchant shall ensure the completion of the same, 
in accordance with the contract and as advertised.
(f) 
An e-retailer or an online merchant that operates its own digital platform shall publish 
on its homepage the following:
(1) Name of the e-retailer or online merchant;
(2) 
Geographic address where the e-retailer or online merchant is located; and
(3) 
Contact details of the e-retailer or online merchant, which must include a 
mobile or landline number and a valid e-mail address to ensure direct and 
efficient communication with consumers.
The foregoing shall be submitted to the Bureau and must be 
accompanied by at least two (2) government identification cards or registration 
documents as valid proof of identity.
(g) 
Where the e-retailer or online merchant is an online delivery service platform, it shall 
require its consumers to register by showing valid proof 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 receipts 
for all sales. An electronic invoice or receipt shall have the same legal effect as a 
paper invoice or receipt.
(i) 
E-retailers and online merchants shall submit to the DTI their registration documents 
such as articles of incorporation issued by the Philippine Securities and Exchange 
Commission or counterpart foreign agencies and/or appropriate registration 
documents with the Bureau of Internal Revenue.
Any agreement between the e-retailer or online merchant and the online consumer 
is valid only if, at the time of the conclusion of the contract, the online consumer has 
knowledge of the specific condition of the goods, sen/ices, or digital products and has 
expressly accepted such condition.
SEC. 13. Rights and Obligations of Online Consumers. -
(a) When the online merchant is liable to the consumer because of a lack of conformity 
with the contract, the consumer may pursue any of the following remedies:
(1) 
A repair or replacement of the goods or digital product which must be 
completed within a reasonable time and without any significant inconvenience 
to the consumer, taking into account the nature and the purpose for which the 
consumer acquired such;
(2) 
A proportionate reduction of the price if the consumer chooses to keep the 
good or digital product despite the lack of conformity with the contract, or the 
termination of the contract with the restitution of the price, in the following 
instances:
i. 
When the repair or replacement is impossible or unlawful;
ii. 
The online merchant has not completed repair or replacement within a 
reasonable time;
iii. 
When repair or replacement may cause significant inconvenience to the 
consumer; or
iv. 
When the online merchant has declared, or it is equally clear from the 
circumstances, that the online merchant may not bring the goods or 
digital product in conformity with the contract within a reasonable time;
(3) 
When applicable, the consumer is entitled to withhold the payment of any 
outstanding part of the purchase price until the online merchant has brought 
the goods or digital product in conformity with the contract.
(4) 
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.
(5) 
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 the parties.
(6) 
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.


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(7) 
In case of goods or digital products that do not conform with the contract, the 
consumer is not liable to pay for the use of the non-conforming goods or digital 
products prior to its replacement.
(8) 
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.
(b) 
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.
(c) 
To protect the rights of delivery carriers, it shall be unlawful for consumers to:
(1) 
Cancel confirmed orders for the delivery of food or grocery items when 
the said items have already been paid for by, or is already in the 
possession of the online delivery partner or delivery service, or is 
otherwise in transit to the consumer unless:
i. 
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;
ii. 
The consumer remits the reimbursement and payment to the online 
delivery partner as a precondition for the cancellation of the order; 
or
iii. 
The delivery of goods 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 online delivery partner or delivery service.
(2) 
Use the personal information of another person, such as, but not limited 
to, name, address, and contact number when registering in online 
delivery service platforms;
(3) 
Place an order under the name of another person, unless the latter 
consented to the same, or placing an order using a fictitious name and/or 
address; or
(4) 
Unreasonably shame, demean, embarrass, or humiliate online delivery 
partners.
SEC. 14. Right to Terminate the Contract. - If the goods or digital products 
delivered do not conform to the specifications as provided under 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, but in no case not more 
than 50% of the value of the goods or digital products delivered under the contract, the 
consumer may terminate the contract only in relation to the non-conforming goods or 
digital products, and any such accessory acquired as an adjunct to the same.
When the consumer terminates the contract as a whole or in relation to some of the 
non-conforming goods or digital products delivered:
(a) The online merchant shall reimburse to the consumer the price paid not later than 
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(b) 
Upon receipt of the reimbursement from the online merchant, the consumer shall 
return, at the online merchant’s expense, the food or digital products not later than 
fourteen (14) days from receipt of the reimbursement and without undue delay 
whatsoever: Provided, That the online merchant may waive this requirement at any 
time;
(c) 
When the goods or digital products cannot be returned because of destruction or 
loss, the consumer shall pay the monetary value which the non-conforming goods 
or digital products would have had at the date when the return was to be made had 
they 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 of the goods or 
digital products with the contract; and
(d) 
The consumer shall pay for a decrease in the value of the goods or digital products 
only to the extent that the decrease in value exceeds depreciation through regular 
use. In all cases, the payment for decrease in value shall not exceed the price paid 
for the goods or digital products.
SEC. 15. Damages. - The online merchant is liable for damages to the consumer 
due to lack of conformity with the contract for the sale of the goods or digital products: 
Provided, that such becomes apparent within six (6) months from receipt of the said goods 
or digital product.
No damages may be recovered from this Act after the lapse of two (2) years from 
the time the consumer receives the goods or digital products.
SEC. 16. Online Dispute Resolution. - The DTI shall develop an Online Dispute 
Resolution (ODR) platform, which shall be a single point of entry for parties to e- 
commerce transactions that are seeking out-of-court resolution of disputes when the 
platforms or merchants fail to resolve or assist consumers with their concerns.
(a) 
The ODR shall be an interactive website accessible electronically and free of 
charge. The DTI, through the Bureau, shall be responsible for its operation, including 
its maintenance, updating, funding, and data security. The ODR platform must be 
user-friendly and easily accessible. It shall also ensure compliance with the 
provisions and requirements of Republic Act No. , and compliant with Republic Act 
No. 10173, or the “Data Privacy Act of 2012.”
(b) 
The DTI shall establish a network of ODR contact points from different government 
agencies involved in consumer complaints as specified in the Consumer Act of the 
Philippines, including the Department of Agriculture (DA), Department of Tourism 
(DOT), and the Department of Health (DOH), among others. The Intellectual 
Property Office of the Philippines (IPO) shall also be part of the ODR network.
(c) 
Each agency shall have a designated ODR contact point whose name and contact 
information are to be submitted to the DTI. The head of the agency shall confer 
responsibility to the respective ODR contact points to ensure that timely and 
competent support is provided to the resolution of complaints and disputes 
submitted through the ODR platform.
(d) 
The ODR platform shall have the following functions:
(1) Provide an electronic form where parties may submit their complaints or 
disputes for resolution;
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(2) 
Provide a feedback system that will allow parties to express their views on the 
efficiency of the ODR platform and on the response of the entity handling their 
dispute; and
(3) 
Make available to the public, general information on alternative dispute 
resolution as a means of out-of-court dispute resolution and the entities which 
are competent to deal with such disputes.
(e) 
The DTI shall ensure that the information on the website is accurate, up to date, and 
accessible.
(f) 
Online e-commerce platforms and online merchants shall provide on their websites 
an electronic link to the DTI-ODR platform on their homepage.
SEC. 17. Liability. - An e-marketplace or e-commerce digital platform shall be
solidarity liable with its listed online merchant, after due notice and hearing, under the
following circumstances:
(a) 
If it fails to provide an accessible and responsive 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 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;
(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:
(1) 
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;
(2) 
Consumers, rights-holders, and online merchants are properly informed 
on the policy implementing such procedure;
(3) 
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;
(4) 
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
(5) 
If the e-commerce platform operator fails, after notice, to act expeditiously 
to remove, or disable access to, goods, services, or digital products 
appearing on their platform that they know or should have known to be
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non-compliant with law, or otherwise infringe on intellectual property 
rights.
SEC. 18. E-commerce Philippine Trustmark. - To provide assurance of safety 
and security in transactions over the internet, an e-commerce Philippine Trustmark shall 
be developed for online merchants.
(a) 
A Trustmark and Trustmark Portal shall be created which shall be administered and 
managed by the DTI.
(b) 
A Trustmark on the website of an online merchant signifies that the company is 
committed to guarantee honesty, fairness, and integrity in dealing with its 
customers, and is committed to refrain from engaging in any illegal, fraudulent, 
unethical, or unfair business practices.
(c) 
In case of a complaint involving the purchase of their products or services, online 
merchants with the Trustmark shall give consumers the option of filing claims 
through the Trustmark portal, if the online merchant’s customer care service has not 
been able to resolve the issue.
(d) 
The Trustmark shall be linked to the DTI’s online dispute resolution.
(e) 
The Trustmark shall be considered an official document for purposes of the crime of 
falsification as defined under the Revised Penal Code and other related laws. Any 
e-marketplace, e-retailer, online merchant, or e-commerce digital platform that is 
found guilty of falsifying or forging the E-commerce Philippine Trustmark, shall be 
subjected to a take-down order in accordance with Section 9 of this Act.
SEC. 19. Implementing Agencies, Rules, and Regulations. - Within sixty (60) 
days from the promulgation of this Act, the DTI, in consultation with the Department of 
Information and Communications Technology (DICT), IPO, Department of Health (DOH), 
and other relevant government agencies, and upon proper consultation with stakeholders, 
shall issue the rules and regulations for the effective implementation of this Act.
SEC. 20. Jurisdiction of other Agencies. - The agencies mentioned in Section 19 
of this Act shall continue to exercise the powers and duties provided to them under 
existing laws, unless repealed or modified accordingly.
SEC. 21. Penalties. -
(a) 
Any e-marketplace, e-retailer, online merchant, or e-commerce digital platform that 
is found guilty of any deceptive, unfair, or unconscionable sales act or practice as 
provided under the Consumer Act of the Philippines, done through the internet, shall 
be subjected to a take-down order in accordance with Section 9 of this Act. It shall 
also be punished with a fine of not less than Fifty Thousand Pesos (PhP50,000.00) 
but not more than Five Hundred Thousand Pesos (PhP500,000.00), or an 
imprisonment of not less than five (5) months but not more than one (1) year, or 
both, upon the discretion of the court.
(b) 
Any e-marketplace, e-retailer, online merchant, or e-commerce digital platform that 
sells or allows the sale of illegal, or imminently injurious, unsafe, or dangerous 
goods, services, or digital products shall be subject to a take-down order in 
accordance with Section 9 of this Act. It shall also be punished with:
(1) Imprisonment of one (1) year to three (3) years, plus a fine ranging from Fifty 
Thousand Pesos (PhP50,000.00) to One Hundred Fifty Thousand Pesos 
(PhPI 50,000.00) for the first offense;
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(2) 
Imprisonment of three (3) years and one (1) day to six (6) years, plus a fine 
ranging from One Hundred Fifty Thousand Pesos (PhPI 50,000.00) to Five 
Hundred Thousand Pesos (PhP500,000.00) for the second offense;
(3) 
Imprisonment of six (6) years and one (1) day to nine (9) years, plus a fine 
ranging from Five Hundred Thousand Pesos (PhP500,000.00) to One Million 
Five Hundred Thousand Pesos (PhPI ,500,000.00) for the third and 
subsequent offenses;
(c) 
Any e-retailer or online merchant \who shall willfully or unreasonably refuse to 
provide the remedies under Section 13(a) of this Act, shall be subjected to a 
take-down order in accordance with Section 9 of this Act, and be punished with 
a fine of not less than One Hundred Thousand Pesos (PhPI 00,000.00) but not 
more than Three Hundred Thousand Pesos (PhP300,000.00) in addition to the 
payment of the actual value of the goods or digital products involved;
(d) 
Any person who shall violate Section 13(c) of this Act shall be punished with a 
penalty of arresto mayor or a fine not exceeding One Hundred Thousand 
Pesos (PhPI 00,000.00), without prejudice to any other available remedies 
under existing laws.
In case any violation of this Act is committed by a partnership, corporation, or any 
juridical entity, the President, General Manager and responsible officers who consented 
to, or knowingly tolerated such violation, shall be criminally liable.
SEC. 22. Appropriations. - The amount of Fifty Million Pesos (PhP50,000,000.00) 
for the initial operation of the Bureau is hereby appropriated out of any funds in the 
National Treasury not otherwise appropriated. Thereafter, such sum as may be necessary 
for the continued implementation of this Act shall be included in the annual General 
Appropriations Act.
SEC. 23. Separability Clause. - If, for any reason, any part, section, or provision 
of this Act is held invalid or unconstitutional, the remaining provisions not affected shall 
continue to be in full force and effect.
SEC. 24. Repealing Clause. - All laws, decrees, executive orders, proclamations, 
rules and regulations, and other issuances, or parts thereof which are inconsistent with 
the provisions of this Act are hereby repealed, amended, or modified accordingly.
SEC. 25. Effectivity. - This Act shall take effect fifteen (15) days after its publication 
in the Official Gazette or in at least two (2) newspapers of general circulation.
Approved,
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