NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE 
S. No. 1341
of llir fepf ft irji
*3? SEP 21 P5 21
Introduced by Senator Loren B. Legarda
AN ACT
PROVIDING PROTECTION TO CONSUMERS AND MERCHANTS 
ENGAGED IN INTERNET TRANSACTIONS, CREATING FOR THIS 
PURPOSE THE E-COMMERCE BUREAU, APPROPRIATING FUNDS 
THEREFOR, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The Philippines is the fastest-growing market in the Southeast Asia region.1 In 
2020, e-commerce contributed PHP 599 billion, or 3.4%, to the country's gross 
domestic product (GDP). In 2021, its contribution reached PHP 1.1 trillion, exceeding 
the government's target of PHP 850 billion,2 largely contributed by 73 miUion online 
active users.3 This year, the government's goal is to increase e-commerce revenue to 
PHP 1.2 trilhon, or 5.5% of GDP.
Especially now, as we adjust to the new normal, the majority of Fihpinos have 
come to depend on technology and digital coimections in most aspects of their lives, 
whether for work, education, healthcare, commercial transactions, or even daily social 
interactions. The nation needs to capitalize on how the pandemic has grown its e- 
commerce sector. That is why the Department of Trade and Industry (DTI) intends to
1 
https://services gooale.com/fh/Files/misc/philippines e conomv sea 2021 report.pdf
2 
https://www.pna. gov.ph/articles/1129015
3 
https://www.trade.gov/countrv-commercial-guides/philippines-ecommerce


take e-commerce in the country a step further by increasing the number of e- 
commerce companies from 500,000 in 2020 to 750,000 by 2021, and 1 million by 2022.4
As our economy recovers from the pandemic, it is vital that we take advantage 
of the country's fast-growing e-commerce to boost our economic growth. However, 
the adoption of e-commerce has led to a rise in customer complaints. Building trust is 
now our challenge.
This bill seeks to rise to this challenge by creating an environment founded on 
trust among consumers and merchants, and ultimately achieving sustainable growth. 
The proposed measure aims to establish mechanisms of redress and grievance that 
must be implemented by the public and private sectors if e-commerce is to prosper.
For our nation's e-commerce to be trusted, we must also promote values and 
ethics in all of our citizens, including customers and business owners alike.
In view of the foregoing, immediate approval of this bill is earnestly sought.
OREN LEGARDA
https://www.manilatimes.net/2022/07/06/news/robust-growth-seen-for-e-commerce/1849954


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
d( tiir
** SEP 21 P5 21
SENATE 
S. No. 1341
mvitiK
Introduced by Senator Loren B. Legarda
AN ACT
PROVIDING PROTECTION TO 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 House of Representatives of the Republic of the Philippines in 
Congress assembled:
Section. 1. Short Title. - This Act shall be known as the "Internet Transactions Act 
of2022."
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 growth of the digital economy 
and the need to ensure that aU goods and services transacted digitally are in 
accordance with specifications, reliable, secure, and accessible to all consumers for the 
purpose of increasing the productivity and efficiency of businesses. To that end, the 
State shall ensure long-term and equitable e-commerce business practices through 
transparent and appropriate information disclosure, the preservation and protection 
of data privacy rights, and a focus on the critical importance of product safety. 
Likewise, the State shall provide meaningful access to effective mechanisms for the 
resolution of disputes involving e-commerce, including alternative dispute resolution 
methods.
Sec. 3. Definition of Terms. - As used in this Act:


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
(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" refer to isolated transactions of an 
individual or group of individuals with another 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;
(c) “Goods" refer to tangible products which are primarily for personal, 
family, household, or agricultural purposes, such as but not limited to, 
food, drugs, cosmetics, and devices;
(d) A "Delivery Carrie/' refers to any natural or jiu-idical 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" refers to equipment or mechanism designed to serve a special 
purpose or perform a special function;
(f) "Digital Platforms" refers to internet intermediaries or businesses, such 
as but not limited to, e-marketplaces, online dehvery enterprises, 
entertainment websites and services, music products and services, social 
media, advertising, education, and learning products, health websites 
and apphcations, and labor services, among others, that match, connect, 
or facilitate interactions and transactions by and between any two or 
more parties to enable them to seU, exchange, share, or transact in any 
convenient manner, goods, services, and digital products;
(g) "Digital Products" refer to goods and services produced and suppUed in 
digital form, such as but not limited to, video, audio, apphcations, 
digital games, and any and aU other software that allows the consumer 
to create, process, download, store, or access digital content, or allows 
the sharing of the same, or any interaction with digital content provided 
by other users of the service;


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
(h) "E-commerce Philippine Trustmark" refers to the mark approved by the E- 
commerce Bureau that represents the legitimacy and verified status of 
an online merchant and provides consumer protection in online or e- 
commerce transactions, as well as accountability in the event of 
consumer complaints;
(i) "E-commerce or Online Transaction" refers to the 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, and 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 their own website or any 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 prospective piurchaser, lessor, or 
recipient of goods and digital products sold, exchanged, leased, or 
transacted over the internet;
(n) "Online Delivery Partner" refers to a delivery carrier that performs 
dehvery services through an online delivery service platform under 
contract with a digital platform or an e-marketplace;
(o) "Online Delivery Service" refers to the dehvery of food, parcels, or any 
item, contracted through a digital platform, which may be an 
apphcation, website, webpage, social media accoimt, or similar means 
operated by an online dehvery service platform;


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
(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 spiling or 
manufacturing, or otherwise offering for sale or manufacturing, 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 conducted over 
the internet, whether between businesses, households, individuals, or other public or 
private organizations. Consumer-to-consumer internet transactions shall not be 
covered under this Act.
Sec. 5. Extra-Territorial Application. - A person engaging in e-commerce who 
purposefully avails of the Philippine market shall be deemed as doing business in the 
Philippines and be subject to applicable Philippine laws and regulations, including 
this Act. One who purposely avails of the Philippine market without establishing any 
real or legal presence in the Philippines shall be required to notify the e-commerce 
Bureau created under Section 7 of this Act for inclusion in the Online Business 
Registry established imder Section 11 of this Act, or may designate a resident agent 
who shall be authorized to receive on their behalf notices or processes in any legal 
proceeding in the Philippines. The accessibility of goods and services to consumers in 
the Philippines shall be considered in ascertaining whether one engaged in e- 
commerce is piuposefuUy availing the Philippine market.
Sec. 6. Equal Treatment of Online and Offline Commercial Activities. - Unless 
otherwise specified, this Act shall be construed to ensure that those who engage in e- 
commerce may not enjoy any benefit that is more favorable, nor be placed at a 
disadvantage, in relation to other enterprises that offer goods and services offline in 
the Philippines.
Sec. 7. E-commerce Bureau. - 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,"


1 
is hereby abolished, and an E-commerce Bureau under DTI shall be created to perform
2 
the following functions:
3 
(a) Implement, monitor, and ensure compliance with the provisions of this
4 
Act;
5 
(b) Build trust between consumers and sellers by mandating entities
6 
engaged in e-commerce to register with the Online Business Registry;
7 
(c) Formulate poUcies, plans, and programs to ensure the robust and
8 
dynamic development of e-commerce;
9 
(d) Identify regulatory gaps affecting the e-commerce sector that are not
10 
sufficiently addressed by this Act or by existing laws or regulations, and
11 
recommend appropriate executive or legislative measures that foster the
12 
growth of the sector;
13 
(e) Act as a virtual one-stopshop tasked with receiving and addressing
14 
consumer complaints on unresolved internet transactions between
15 
parties; facilitating the speedy resolution of consmner complaints by the
16 
respective government agency having jurisdiction over the same; and
17 
tracking complaints referred to or initiated by it mo hi proprio to ensure
18 
that the agency to which such matters pertain or otherwise have been
19 
referred to takes prompt and appropriate action;
20 
(f) Coordinate with, or petition whenever appropriate, any entity,
21 
government agency, or instrumentality to act on any matter related to e-
22 
commerce consumer complaints;
23 
(g) Monitor internet market behavior, consult with stakeholders and
24 
concerned agencies to better understand e-commerce transactions, and
25 
prepare and conduct periodic studies on the same; and
26 
(h) Collaborate with the various departments of the national government
27 
and the local government units (LGUs) in the implementation of projects
28 
and programs promoting e-commerce, including information and
29 
education, as weU as in ensuring a policy regime that is proactive.
30 
In the exercise of the above-stated functions, the Bureau, in coordination with
31 
other government agencies, may convene public consultations or inter-agency


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
meetings to ensure multi-stakeholder input in the development of e-commerce 
policies.
Government agencies and instrumentalities involved in the maintenance and 
development of the internet infrastructure of the Philippines, such as the Department 
of Information and Communications Technology (DICT) and the National 
Telecommimications Commission (NTC), shall cooperate with the Bureau on issues 
within their respective regulatory jurisdiction that affect the conduct of e-commerce.
Sec. 8. 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 aU the laws and processes related thereto. Three (3) Assistant 
Directors will assist the Director with poUcy and administration, enforcement, and 
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 service 
officers with at least five (5) years of government service and relevant experience in e- 
commerce development.
Sec. 9. Subpoena. - In the exercise of its powers under this Act, the Director of 
the Bm-eau shall have the power to issue summons, subpoena ad testificandum, and 
subpoena duces tecum to alleged violators or witnesses to compel their attendance and 
the production of dociunents in investigations or proceedings before the Bureau.
The failure to comply with a subpoena ad testificandum or subpoena duces tecum 
shall authorize the filing of a case for indirect contempt under the Rules of Court with 
the Regional Trial Court (RTC). A certification dtdy issued by the Bureau that a 
respondent to the subpoena ad testificandum or subpoena duces tecum refuses to comply 
with the same, despite due notice, shall be sufficient evidence to authorize the RTC to 
dte the respondent with contempt. The RTC shall likewise have the authority to issue 
any such order or relief, including imprisonment, in order to compel comphance with 
the subpoena ad testificandum or subpoena duces tecum. The RTC may, in addition, also 
issue a subpoena ad testificandum or subpoena duces tecum addressed to the respondents 
identical to the one subject of the complaint.
Sec. 10. Authority to Promulgate Rules and Regulations. - As the focal authority of 
the National Government for the development of pohdes and strategies for the


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
growth of e-commerce, the Bureau shall have the authority to promulgate rules and 
regulations covering areas or activities concerning e-commerce and to impose fines to 
compel compliance with such rules. The grant of this rule-making authority to the 
Bureau shall be ancillary to any duly constituted regulatory jurisdiction granted or 
that may be granted to other government agencies by law, including Executive Order 
No. 292, series of 1987, instituting the "Administrative Code of 1987," Republic Act 
No. 7394, otherwise known as the "Consumer Act of the Philippines," Republic Act 
No. 7653, as amended, otherwise known as "The New Central Bank Act," Republic 
Act No. 8293, as amended, otherwise known as the "Intellectual Property Code of the 
Philippines," Republic Act No. 8799, otherwise known as the "Securities Regulation 
Code," Republic Act No. 9239, otherwise known as the "Optical Media Act of 2003," 
Republic Act No. 9593, otherwise known as the "Toiuism Act of 2009," RepubUc Act 
No. 10173, otherwise known as the ""Data Privacy Act of 2012," Republic Act No. 
10667, otherwise known as the "Philippine Competition Act," Repubhc Act No. 11127, 
otherwise known as " The National Payment Systems Act," and Republic Act No. 
11232, otherwise known as the "Revised Corporation Code".
The Bureau shall defer the exercise of rule-making power to the above-listed 
government agencies conferred by law with regulatory jurisdictions over e-commerce 
providers or platforms unless the other agency declines to exercise its jurisdiction or 
does not act in a timely manner.
Sec. 11. Online Business Registry (OBR). - Within a period of one (1) year from 
the effectivity of this Act, the Bureau shall, in coordination with the DICT, establish, 
maintain, and manage an Online Business Registry (OBR) which shall provide 
consmners access to data and information of e-marketplaces, e-retailers, online 
merchants, and other digital platforms engaged in the sale of goods, services, and 
digital products for purposes of verifying their existence, confirming their identity, 
and other relevant or needed information.
Sec. 12. Regulatory Jurisdiction of the Department of Trade and Industry. - For the 
purposes of this Act, the DTI shall have primary regulatory authority 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 intentionally 
targeting the Philippine market.


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
Sec. 13. 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 
"Consumer Act of the Phihppines," or other related laws, the DTI Secretary, in order 
to abate 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, appUcation, social media post, 
profile, website, or, when applicable, any platform of the online 
merchant or e-retailer related to the illegal product be taken down, or 
the same be made inaccessible in the Philippines, whether temporarily 
or permanently; and
(b) Issue an advisory that no entity shall process 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 mjiuy to the pubUc, 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
(b) When the seller under investigation has been previously penalized 
under this Section.
Whenever the DU Secretary orders the immediate take-down, recall, ban, or 
seiztu-e 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.
The take-down order shall be directed against the e-retailer, online merchant, 
owner, or operator of the e-marketplace or digital platform, whether imposed as a 
penalty or granted provisionally. Copies of the order shall be served on entities whose 
cooperation would be required for its enforcement, such as but not limited to the duly 
registered internet service provider involved, related payment gateways, and other 
government agencies.


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
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. 14. Cease and Desist Order. - The DTI Secretary, upon due notice and 
hearing, shall have the power to issue an order directing a website, webpage, online 
application, social media account, or other similar platform operating to tire grave and 
irreparable prejudice of a consumer or a rights holder, to desist from marketing or 
offering goods or services that are accessible in the Philippines, and directing that no 
payments shall be made to any entity which is marketing or offering such goods or 
services in violation of this Act, the Consumer Act of the Philippines, or any other 
related trade or consumer laws.
The cease and desist order shall remain in effect for a maximum of thirty (30) 
days unless otherwise extended or made permanent by a judicial order or decision.
Sec. 15. Referral of Complaints. - The Bureau shall refer any complaint it receives 
involving violations 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, 
otherwise known as the "Ease of Doing Business and Efficient Government Service 
Delivery Act of 2018."
Sec. 16. Obligations of E-Marketplaces and other Digital Platforms. -
(a) E-marketplaces and e-commerce digital platforms shall ensure that their 
e-commerce transactions shall:
(i) 
Be clearly identifiable as an e-commerce transaction;
(ii) 
Identify the person or persons on whose behalf the e-commerce 
transaction is made; and
(ui) 
Identify promotional offers including discounts, premiiuns, gifts,
and any promotional game or competition, and ensure that any 
condition to qualify for them are easily accessible, and clearly set 
forth.


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
(b) E-marketplaces and e-commerce digital platforms shall require all 
online merchants to submit the following, prior to listing with their 
platforms:
(i) 
Name of the online merchant accompanied by at least two (2) 
vahd government identification cards;
(ii) 
Geographic address where the online merchant is located;
(iii) 
Contact details of the online merchant which must include a 
mobile or landline number and a valid e-mail address; and
(iv) 
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 mentioned under 
Section 16(b) (i), the information required imder this paragraph shall be 
published or posted on the e-commerce platforms for transparency.
(c) E-marketplaces and e-commerce digital platforms are mandated to 
maintain a list of aU 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 or 
local government regulation.
Sec. 17. 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:
(i) In the same condition, type, quantity, and quahty as described 
and stated and, in appUcable circmnstances, possess the
10


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
functionality, compatibility, interoperability, and other features 
required by the sales contract, fit for the purpose for which it was 
intended by its nature;
(ii) 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 specifications provided by the e-retailer or online 
merchant upon inquiries made by the online consumer; and
(iii) It must 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:
(i) 
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 the 
relevant information stated in the packaging, printed, or written 
m 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 
pubUc 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;
(2) By the time of conclusion of the contract, the statement 
had already been corrected; or
11


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
(3) 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 suppUed 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:
(i) 
The contract allows, and provides a valid reason for, such a 
modification;
(ii) 
Such a modification is made without additional cost to the 
consumer; and
(iii) 
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-retaOer or an online merchant that operates its own digital 
platform shall publish on its homepage the following:
(i) 
Name of the e-retailer or online merchant;
(ii) 
Geographic address where the e-retailer or online merchant is 
located; and
(iii) 
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. 
This shall be submitted to the Bureau and must be accompanied
by at least two (2) government identification cards as valid proof of 
identity.
12


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
(g) Where the e-retailer or online merchant is an online dehvery service 
platform, it shall require its consumers to register by showing valid 
proof of identity, and an e-mail address or mobile phone number.
(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.
Any agreement between the e-retailer or online merchant and the online 
consumer is vaHd only if, at the time of the conclusion of the contract, the online 
consumer has knowledge of the specific condition of the goods, services, or digital 
products and has expressly accepted such condition.
Sec. 18. Rights and Obligations of Online Consumers. -
(a) When the online merchant is hable to the consmner because of a lack of 
conformity with the contract, the consumer may pursue any of the 
following remedies:
(i) 
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;
(ii) 
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 
restitution of the price, in the following instances:
(1) When repair or replacement is impossible or xmlawful;
(2) The online merchant has not completed repair or 
replacement within a reasonable time;
(3) When repair or replacement may cause significant 
inconvenience to the consumer; or
(4) 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;
13


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
(iii) 
When applicable, the consumer is entitled to withhold 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;
(iv) 
The consxuner 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 
retmn of the replaced goods or digital products at the online 
merchant's expense, unless otherwise agreed upon by the parties;
(vi) 
When the consmner 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 that do not conform with the 
contract, the consumer is not hable to pay for the use of the non- 
conforming goods or digital products prior to their replacement; 
or
(viii) The consumer may exercise the choice in the alternative between 
repair or replacement of the purchased good or digital product 
imless such choice is impossible in which case the consmner may 
choose to terminate the contract and return the item, and the 
online merchant shall refund the fuU amount paid by the 
consumer.
(b) Consumers of online delivery service platforms may hold delivery 
carriers liable for damages if the latter fails 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 
consmners to:
14


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
(i) 
Cancel confirmed orders for the delivery of food or grocery items 
when the said items have already been paid for by, or are already 
in the possession of the online delivery partner or delivery 
service or are otherwise in transit to the consumer unless:
(1) The consumer uses credit card services as a means for 
the payment of the service and the payment will still be 
credited notwithstanding the cancellation;
(2) The consumer remits the reimbursement and payment 
to the online delivery partner as a pre-condition for the 
cancellation of the order; or
(3) 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.
(ii) 
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;
(iii) 
Place an order imder the name of another person, unless the latter 
consented to the same, or placing an order using a fictitious name 
and/ or address; or
(iv) 
Unreasonably shame, demean, embarrass, or hiuniliate online 
delivery partners.
Sec. 19. Right to Terminate the Contract. - If the goods or digital products 
delivered do not conform to the contract, the consumer may exercise the right to 
terminate the contract by giving notice to the online merchant. Where the lack of 
conformity relates to only some of the goods or digital products delivered imder 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 a contract as a whole or in relation to 
some of the non-conforming goods or digital products delivered:
15


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
(a) The online merchant shall reimburse the consumer the price paid not 
later than fourteen (14) days from receipt of the notice and without 
undue delay whatsoever;
(b) Upon receipt of the reimbursement from the online merchant, the 
consumer shall return, at the orUine merchant's expense, the goods or 
digital products not later than fourteen (14) days from the 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 consiuner 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 
consiuner 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. The payment for the decrease in value 
shall not exceed the price paid for the goods or digital products.
Sec. 20. Damages. - The online merchant is liable for damages to the consumer 
due to the lack of conformity with the contract 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. 21. Online Dispute Resolution. - The DTI shall develop an Online Dispute 
Resolution (ODR) platform which is 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, funding, and data security. The
16


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
ODR platform must be user-friendly, easily accessible, and data privacy 
compliant.
(b) The DTI shall establish a network of ODR contact points from different 
government agencies involved in consumer complaints as specified in 
Republic Act No. 7394, otherwise known as 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:
(i) 
Provide an electronic form where alternative dispute resolution 
entities shall transmit the information;
(ii) 
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
(iii) 
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 and 
up to date.
(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. 22. Liability. - An e-marketplace or e-commerce digital platform shall be 
solidarily liable to its listed online merchant, after due notice and hearing, under the 
following circumstances:
17


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
(a) If it fails to provide a mechaiusm 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 on the platform;
(ii) 
Consumers, rights-holders, and online merchants are properly 
informed on the policy implementing such procedure; and
(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
(f) If the e-commerce platform operator fails, after notice, to act 
expeditiously to remove, or disable access to, goods, services or digital
18


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
products appearing on their platform that they know or should have 
known to be non-compliant with law, or otherwise infringe on 
intellectual property rights.
Sec. 23. Digital Payments. - E-commerce platform operators and online 
merchants shall issue the appropriate paper or electronic invoices or receipts for all 
sales in accordance with relevant internal revenue laws and regulations. An electronic 
invoice or receipt shall have the same legal effect as a physical invoice or receipt.
The DTI, through the Bureau, shall, in coordination with the Bangko Sentral ng 
Pilipinas (BSP), the BIR, the Bureau of Customs (BOC), the Department of Justice 
(DOJ), the Philippine National Police (PNP), the DICT, and the NTC, issue rules and 
regulations to modernize and streamline the regulatory framework and encourage the 
adoption of electronic payment systems by the citizenry. The DTI shall also develop 
guidelines to protect merchants and consumers covering the various digital payment 
solutions.
Sec. 24. 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 DU.
(b) A Trustmark on the website of an online merchant signifies that the 
company is committed to guaranteeing 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
19


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
E-commerce Philippine Trustmark, shall be subjected to a take-down order 
in accordance with Section 13 of this Act.
Sec. 25. Implementing Rules and Regulations. - Within sixty (60) days from the 
promulgation of this Act, the necessary rules and regulations shall be formulated and 
issued by the DTI, in consultation with the DICT, IPO, DOH, the Food and Drug 
Admmistration (FDA), and other relevant government agencies necessary for the 
proper implementation of this Act.
Sec. 26. Jurisdiction of Other Agencies. - The agencies mentioned in Section 25 of 
this Act shall continue to exercise the powers and duties provided to them under 
existing laws, unless repealed or modified accordingly.
Sec. 27. Penalties. -
(a) Any e-marketplace, e-retailer, online merchant or e-commerce digital 
platform that is foimd guilty of any deceptive, unfair or imconscionable 
sales act or practice as provided for under Republic Act No. 7394, or the 
"Consmner Act of the Phihppines," done through the internet, shall be 
subjected to a take-down order in accordance with Section 13 of this Act. 
It shall also be punished with a fine of not less than Fifty Thousand Pesos 
(Php 50,000.00) but not more than Five Flimdred Thousand Pesos (Php 
500,000.00), or an imprisonment of not less than five (5) months but not 
more than (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 13 of this Act. It shall 
also be punished with:
(i) 
Imprisonment of one (1) year to three (3) years plus a fine ranging 
from Fifty Thousand Pesos (Php 50,000.00) to One Hundred Fifty 
Thousand pesos (Php 150,000.00) for the first offense.
(ii) 
Imprisonment of three (3) years and one (1) day to six (6) years 
plus a fine ranging from One Hundred Fifty Thousand Pesos 
(Php 150,000.00) to Five Hundred Thousand Pesos (Php 
500,000.00) for the second offense.
20


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
(iii) Imprisonment of six (6) years and one (1) day to nine (9) years 
plus a fine ranging from Five Hundred Thousand Pesos (Php 
500,000.00) to One Million Five Hundred Thousand Pesos (Php 
1,500,000.00) for the third and subsequent offenses.
(c) Any e-retailer or online merchant who shall willfully or imreasonably 
refuse to provide the remedies under Section 18(a), shall be subjected to 
a take-down order in accordance with Section 13 of this Act, and be 
punished with a fine not less than One Hundred Thousand Pesos (Php 
100,000.00), but not more than Three Himdred Thousand Pesos (Php 
300,000.00), in addition to the payment of the actual value of the goods 
or digital products involved.
(d) Any person who shall violate Section 18(c) of this Act, shall be punished 
with a penalty of arresto mayor or a fine not exceeding One Hundred 
Thousand Pesos (Php 100,000.00), 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, the General Manager, and other officers, 
employees, and agents, who shall consent to, or shall knowingly tolerate such 
violation shall be criminally liable.
Sec. 28. Oversight Committee. - There is hereby created a Congressional 
Oversight Committee, hereinafter referred to as the Internet Transactions Act 
Congressional Oversight Committee, to be composed of five (5) members from the 
Senate, which shall include the Chairpersons of the Senate Committees on Trade, 
Commerce and Entrepreneurship, Science and Technology, and Finance, and five (5) 
members from the House of Representatives, which shall include the Chairpersons of 
the House of Representatives Committees on Trade and Industry, Information and 
Communications Technology, and Appropriations. The Internet Transactions Act 
Congressional Oversight Committee shall be jointly chaired by the Chairpersons of 
the Senate Committee on Trade and Commerce and the House of Representatives 
Committee on Trade and Industry. It shall meet at least every quarter of the first two 
years and every semester for the third year after the approval of this Act to review the 
implementation of this Act, evaluate the Bureau on its functions as the lead agency.
21


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28 
29
determine any inherent weaknesses in the law, and recommend the necessary 
remedial legislation or executive measures: Provided, That the Internet Transactions 
Act Congressional Oversight Committee shall cease to exist after five (5) years upon 
the effectivity of this Act.
The Secretariat of the Internet Transactions Act Congressional Oversight 
Committee shall be drawn from the existing personnel of the Senate and House of 
Representatives Committees comprising the Internet Transactions Act Congressional 
Oversight Committee.
Sec. 29. Transitory Provisions. - To ensure the continued implementation of 
programs to promote e-commerce, the current E-commerce Division shall continue to 
exercise its functions until such time that the organizational structure and personnel 
of the Bureau have been determined and approved.
All affected officers and personnel of the E-commerce Division shall be 
absorbed by the Bureau without demotion in rank or diminution of salaries, benefits, 
and other privileges.
Sec. 30. Appropriations. - The amount of Fifty Million Pesos (Php 50,000,000.00) 
for the initial operation of the Bureau is hereby appropriated out of 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. 31. Separability Clause. - Should any provision or part of this Act be 
declared unconstitutional or invalid, the other provisions and parts hereof, insofar as 
they are separable from the invalid ones, shall remain in full force and effect.
Sec. 32. Repealing Clause. - All laws, decrees, executive orders, rules and 
regulations, issuances, or parts thereof inconsistent with the provisions of this Act are 
hereby repealed, amended, or modified accordingly.
Sec. 33. Ejfectivity Clause. - This Act shall take effect fifteen (15) days after its 
complete publication either in the Official Gazette or in at least two (2) newspapers of 
general circulation.
Approved,
22