Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____________ 
Introduced by 
HON. CHRISTOPHERSON “COCO” M. YAP 
AN ACT 
PROVIDING PROTECTION TO CONSUMERS AND MERCHANTS 
ENGAGED IN INTERNET TRANSACTIONS, CREATING FOR THE 
PURPOSE 
THE 
ELECTRONIC 
COMMERCE 
BUREAU, 
AND 
APPROPRIATING FUNDS THEREFOR 
EXPLANATORY NOTE 
Section 4 of Article II of the 1987 Constitution states, “The prime duty of the 
Government is to serve and protect the people.”  
In line with the above constitutional mandate, Republic Act No 7394 or The Consumer 
Act of the Philippines was enacted “to protect the interest of the consumer, promote his 
general welfare and to establish standards of conduct for business and industry.” 
In the last year of the 20th Century, Republic Act No. 8792, or The Electronic 
Commerce Act of 2000, was enacted to facilitate domestic and international 
transactions through electronic mediums and technology. This extended consumer 
protection provided for in RA 7394 to “transactions covered by or using electronic data 
messages or electronic documents. 
It has been more than twenty years since the enactment of The Electronic Commerce 
Act. The commercial, digital, and cultural landscape has rapidly changed with e-
August 11, 2022
4:57 pm
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commerce technology becoming increasingly ubiquitous along with smart gadgets with 
near constant connectivity to the internet. Buyers enjoy the variety, speed, convenience, 
and economy online merchants offer. At the same time, sellers benefit from the low 
barrier to entry and operating costs that e-commerce brings. 
 
As with any other technology that disrupts the way humans go about their lives, the 
rapid evolution of commerce in the digital age created gaps in the law. These gaps 
engender a lack of trust among consumers and merchants of goods and services and 
hesitancy to participate in eCommerce in the country by investors seeking more concrete 
policies that protect their businesses. 
 
This proposed measure seeks to address the lacuna legis by providing both consumer 
and merchant protection as they engage in commercial activities, whether business-to-
business or business-to-consumer, through the internet or other electronic means such 
as but not limited to: 
1. Internet retail of consumer goods and services. 
2. Online travel services. 
3. Online media providers. 
4. Ride-hailing services. 
5. Digital financial services. 
 
In addition, it ensures that competition between online and offline commercial activities 
is respected by providing no benefit or disadvantage to one form of commerce upon the 
other.  
 
Likewise, it creates an eCommerce Bureau under the Department of Trade and industry 
which shall have authority over activities conducted over the internet which are not 
regulated. It shall be a central authority that consumers and merchants may approach. 
It shall lead in developing an online alternative dispute resolution platform for both. 
The Bureau is also mandated to establish, manage, and maintain a Registry of Online 
Business, a list of sole proprietorships, one-person corporations, partnerships, and 
corporations, authorized to conduct business over the internet. 


Furthermore, it prescribes a code of conduct for all businesses engaging in eCommerce. 
It stipulates the obligations of the eCommerce platform, operators, service providers, 
and consumers. It also specifies the responsibilities of online merchants who are 
expected to act responsibly to build trust in internet transactions and to protect and 
uphold the interest of consumers at all times.  
Online platforms are no longer excused from fraudulent merchants’ acts as they are held 
solidarity liable for their acts should they fail to do their due diligence before admitting 
them to the platform. 
A version of this bill was approved on Third Reading and transmitted to the Senate 
during the 18th Congress. This representation is refiling this bill in recognition of the 
paramount need for an eCommerce policy that is more attuned to the needs of the time. 
Thus, approval of this bill is earnestly sought. 
CHRISTOPHERSON “COCO” M. YAP 
Representative, Second District of Southern Leyte 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____________ 
Introduced by 
HON. CHRISTOPHERSON “COCO” M. YAP 
AN ACT 
PROVIDING PROTECTION TO CONSUMERS AND MERCHANTS 
ENGAGED IN INTERNET TRANSACTIONS, CREATING FOR THE 
PURPOSE THE ELECTRONIC COMMERCE BUREAU, AND 
APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
CHAPTER I 
1 
GENERAL PROVISIONS 
2 
3 
SECTION 1.  Short Title. -  This Act shall be known as the “Internet Transactions Act.” 
4 
5 
SEC. 2. 
Declaration of Policy. – It is the policy of the State to promote and 
6 
maintain a robust electronic commerce (eCommerce) environment in the 
7 
country by building trust between online merchants and consumers. The 
8 
State recognizes the value and potential of the digital economy to increase 
9 
competition and improve productivity, thus the need to establish secure 
10 
and reliable eCommerce platforms where goods and services are 
11 
transacted online with appropriate transparency and utmost efficiency to 
12 
3564


encourage the creation of new products, services, business models and 
13 
processes. Towards these ends, the State shall ensure an effective 
14 
regulation of commercial activities through the internet or electronic 
15 
means to ensure that consumer rights and data privacy are protected, 
16 
innovation is encouraged, fair advertising practices and competition are 
17 
promoted, online transactions are secured, intellectual property rights are 
18 
respected, and where product standards and safety are observed. 
19 
20 
SEC. 3. 
Definition of Terms. – As used in this Act:  
21 
a) Business-to-business transaction refers to internet transactions
22 
conducted over marketplaces that facilitate business-to-business
23 
electronic sales of new and used merchandise using the internet;
24 
25 
b) Business-to-consumer transaction refers to the process of selling
26 
products and services by businesses to consumers who are end-
27 
users, generally for a profit;
28 
29 
c) Compatibility refers to the ability of the digital content or digital
30 
service to function with hardware or software with which digital
31 
content or digital services of the same type are normally used,
32 
without the need to convert the digital content or digital. service;
33 
34 
d) Consumer refers to a person who is a purchaser, lessee, recipient
35 
or prospective purchaser, lessor or recipient of consumer
36 
products, services, credit, technology, advertising or promotion,
37 
and other items in eCommerce;
38 
39 
e) Consumer-to-consumer transactions (C2CJ) refer to one-off, petty, or
40 
occasional low­value transactions of an individual or group of
41 
individuals to another that are not made in the ordinary course
42 
of business of any party to the transaction;
43 


44 
f)
Digital content refers to data that are produced and supplied in
45 
electronic form;
46 
47 
g) Digital service refers to a service that allows the consumer to
48 
create, process, store, or access data in electronic form or allows
49 
the sharing of or any other interaction with data in electronic
50 
form uploaded or created by the consumer or other users of that
51 
service;
52 
53 
h) Digital financial services refer to services of a financial nature that are
54 
made available to the public through the internet, including
55 
banking services, insurance, and insurance-related services,
56 
payment and money transmission services, including remittance
57 
services, online lending se1Tices, online investment services, and
58 
other similar or related services;
59 
60 
i)
Electronic commerce or eCommerce refers to the production,
61 
distribution, marketing, sale, or delivery of goods and services by
62 
electronic means;
63 
64 
j)
eCommerce platform operator refers to a natural or juridical person
65 
that solicits the purchase of goods and services through digital
66 
platforms and marketplaces whose business is to connect
67 
consumers 
and 
online 
merchants, 
facilitating sales 
of
68 
products, goods or services through the internet with the
69 
presence and use of monetary transactions. These shall include
70 
social media websites and any other similar platforms in so far
71 
that it is used for business;
72 
73 
k) Functionality refers to the ability of the digital content or digital
74 
service to perform its functions according to its purpose;
75 


76 
l)
Good, refer to physically or digitally produced items over which
77 
ownership rights may be established and whose economic
78 
ownership may be passed from one;
79 
80 
m) Internet access and service provider refer to an entity that provides
81 
households, businesses, and government access to the internet
82 
through the physical transport infrastructure;
83 
84 
n) Internet retailing of consumer goods refers to engaging in any
85 
eCommerce activity other than online travel services, online media,
86 
ride hailing services, and digital financial services;
87 
88 
o) Internet transaction refers to the sale or purchase of goods or
89 
services, whether between businesses, households, individuals,
90 
governments, and other public or private organizations,
91 
conducted over the internet. At least one point of these
92 
transactions is conducted over the internet but the payment and
93 
ultimate delivery of the goods or services may be conducted on
94 
or offline;
95 
96 
p) Interoperability(y refers to the ability of the digital content or digital
97 
service to function with hardware or software different from
98 
those with which digital content or digital services of the same
99 
type are normally used;
100 
101 
q) Online merchant refers to a natural or juridical person, regardless
102 
of location, that directly sells, manufactures goods, or offers for
103 
sale, any good or service, either individually or through a
104 
platform, in the ordinary course of business, over the internet,
105 
through a website, an online marketplace, a social media
106 
website or application or through other similar means;
107 


 
108 
r) Online media refers to digital media products or services 
109 
pertaining to advertising, gaming, subscription music, and video 
110 
on demand, available through an online platform, application, 
111 
website, webpage, social media account, or other similar 
112 
platforms  operated  by  the  provider,  regardless  of whether  
113 
the  provider  is authorized to engage in eCommerce; 
114 
 
115 
s) Online travel services refer 
to services 
that facilitate 
the 
116 
reservation, 
purchase 
or 
discounting 
of 
flights, 
hotel 
117 
accommodations, and vacation rental spaces, through an online 
118 
platform, application, website, webpage, social media account, 
119 
or other similar platform operated by the provider, regardless 
120 
of whether the provider is authorized to engage in eCommerce 
121 
in the Philippines; 
122 
 
123 
t) Price refers to money or a digital representation of value that is due 
124 
in exchange for the supply of goods, services, digital content, or 
125 
digital service; 
126 
 
127 
u) Producer refers to the manufacturer or importer of goods, or any 
128 
person purporting to be a manufacturer who places its name, 
129 
trademark, or other distinctive sign on goods; 
130 
 
131 
v) Repair refers to bringing defective goods into conformity with the 
132 
contract; 
133 
 
134 
w) Ride hailing service refers to the delivery of food, goods or other 
135 
merchandise, or of personal transport services, contracted 
136 
through an online platform, application, website, webpage, 
137 
social media account, or other similar platform operated by the 
138 
provider, regardless of whether the provider is authorized to 
139 


engage in eCommerce in the Philippines; 
140 
 
141 
x) Ride hailing service partner refers to third-parties who offer their 
142 
services to transport or deliver food, parcels or any other item, 
143 
on behalf of ride hailing service providers; and 
144 
 
145 
y) Ride hailing service provider refers to those, who in the ordinary 
146 
course of trade or business, provide for or facilitate ride hailing 
147 
services;  
148 
 
149 
SEC. 4.  
Scope and Coverage. – Unless otherwise specified, this Act shall apply to 
150 
any stage of all business-to-business and business-to-consumer 
151 
eCommerce and internet transactions including those related to the 
152 
following activities: 
153 
 
154 
a) Internet retail of consumer goods and services 
155 
b) Online travel services  
156 
c) Online media providers 
157 
d) Ride hailing services; and 
158 
e) Digital financial service 
159 
Consumer-to-consumer transactions shall be exempt from the operation 
160 
of this Act, without prejudice to the application of other laws. Unless 
161 
expressly specified, nothing in this Act shall be construed as to diminish 
162 
or deprive the regulatory jurisdiction conferred by law upon other 
163 
government agencies with respect to regulated services that fall within the 
164 
scope of eCommerce. 
165 
 
166 
SEC. 5.  
Extra-territorial Application. – A person engaging in eCommerce who 
167 
purposefully availed of the Philippine market shall be deemed as doing 
168 
business in the Philippines and be subject to applicable Philippine laws 
169 
and regulations, including this Act. One who purposely avails of the 
170 
Philippine market without establishing any real or legal presence in the 
171 


Philippines shall be required to notify the eCommerce Bureau created 
172 
under Section 7 of this Act for inclusion in the Registry of Online Business 
173 
established under Section 11 of this Act or may designate a resident agent 
174 
who shall be authorized to receive on their behalf notices or processes in 
175 
any legal proceeding in the Philippines. The accessibility of goods and 
176 
services to consumers in the Philippines shall be considered in ascertaining 
177 
whether one engaged in eCommerce is purposefully availing the Philippine 
178 
market. 
179 
 
180 
SEC. 6.  
Equal Treatment of Online and Offline Commercial Activities. – Unless 
181 
otherwise specified, this Act shall be construed to ensure that those who 
182 
engage in eCommerce may not enjoy any benefit that is more favorable, 
183 
nor be placed at a disadvantage, in relation to other enterprises that offer 
184 
goods and services offline in the Philippines. 
185 
 
186 
 
187 
CHAPTER 2 
188 
ECOMMERCE BUREAU 
189 
 
190 
SEC. 7.  
Creation of the eCommerce Bureau. – To ensure the attainment of the 
191 
objectives of this Act and promote the growth of eCommerce, there is 
192 
hereby created an eCommerce Bureau under the Department of Trade and 
193 
Industry (DTI), hereinafter referred to as the Bureau, which shall be 
194 
organized within six (6) months after the effectivity of this Act. The 
195 
Bureau shall have the following powers and functions: 
196 
 
197 
a) Implement, monitor, and ensure strict compliance by eCommerce 
198 
stakeholders of the provisions of this Act; 
199 
 
200 
b) Build trust between consumers and sellers by requiring eCommerce 
201 
platform operators, online merchants, or any other entity who engages 
202 
in eCommerce to register their business with the Bureau; 
203 


 
204 
c) Formulate policies, plans and programs to ensure the robust and 
205 
dynamic development of eCommerce; 
206 
 
207 
d) Identify regulatory gaps affecting the eCommerce sector that are not 
208 
sufficiently addressed by this Act or by existing laws or regulations, 
209 
and recommend appropriate executive or legislative measures, 
210 
including those that can be undertaken by the DTI on its own, that 
211 
fosters the growth of the sector; 
212 
 
213 
e) Act as a virtual central unit tasked to receive and address consumer 
214 
complaints on internet transactions, facilitate the speedy resolution of 
215 
consumer complaints by the respective government agency which has 
216 
jurisdiction over it, and track complaints referred to or initiated by it 
217 
to ensure the speedy and appropriate action by the agency to which 
218 
such matters have been referred to; 
219 
 
220 
f) Coordinate with, compel or petition whenever appropriate, any entity, 
221 
government agency or instrumentality to take action on any matter 
222 
that may impede eCommerce; 
223 
 
224 
g) Investigate, motu proprio, and file the appropriate cases for violations 
225 
of any provision of this Act; 
226 
 
227 
h) Intervene or participate, in a manner as may be appropriate, in cases 
228 
initiated or pending with other regulatory agencies involving 
229 
eCommerce or violations of any provision of this Act; 
230 
 
231 
i) Monitor internet transactions and undertake consultation with 
232 
stakeholders and affected agencies for the purpose of understanding 
233 
market behavior in order to update policies relevant to online 
234 
transactions; 
235 


 
236 
j) Monitor the compliance of other government agencies or 
237 
instrumentalities on their compliance to the provisions of this Act and 
238 
the eCommerce roadmap; 
239 
 
240 
k) Collect, compile, analyze, abstract, and publish eCommerce data for 
241 
policy formulation and program development; 
242 
 
243 
l) Prepare and conduct periodic studies on eCommerce; 
244 
 
245 
m) Collaborate with departments of the National Government including 
246 
local government units and government-owned or controlled 
247 
corporations in implementing programs to promote eCommerce, 
248 
including information, education, and campaign, as well as in ensuring 
249 
a policy regime that is proactive; and 
250 
 
251 
n) Ensure that those who engage in eCommerce may not enjoy any 
252 
benefit that is more favorable, nor be placed at a disadvantage, in 
253 
relation to other enterprises that offer goods and services offline in the 
254 
Philippines. 
255 
 
256 
In the exercise of the above-stated functions, the Bureau, in coordination 
257 
with other government agencies, may convene public consultations or 
258 
inter-agency meetings to ensure multi-stakeholder input in the 
259 
development of eCommerce policies. 
260 
 
261 
Government agencies and instrumentalities involved in the maintenance 
262 
and development of the internet infrastructure of the Philippines, such as 
263 
the Department of Information and Communications Technology (DICT) 
264 
and the National Telecommunications Commission (NTC), shall 
265 
cooperate with the Bureau on issues within their respective regulatory 
266 
jurisdiction that affect the conduct of eCommerce. 
267 


 
268 
SEC. 8.  
Composition of the Bureau. – The Bureau shall be headed by a Director 
269 
to be appointed by the President of the Philippines, as recommended by 
270 
the Secretary of Trade and Industry. 
271 
  
272 
The Director shall oversee the day-to-day operations of the Bureau and 
273 
shall be assisted by three (3) Assistant Directors each for policy and 
274 
administration, enforcement, and operations. 
275 
 
276 
The Secretary of Trade and Industry shall determine the organizational 
277 
structure and staffing pattern of the Bureau, subject to the approval of the 
278 
Secretary of Budget and Management. 
279 
 
280 
SEC. 9.  
Subpoena. – In the exercise of its powers under this Act, the Director of 
281 
the Bureau shall have the power to issue summons, subpoena ad 
282 
testificandum and subpoena duces tecum to alleged violators or witnesses 
283 
to compel their attendance and the production of documents in 
284 
investigations or proceedings before the Bureau. 
285 
 
286 
The failure to comply with a subpoena ad testificandum or subpoena 
287 
duces tecum shall authorize the filing of a case for indirect contempt under 
288 
the Rules of Court with the Regional Trial Court. A certification duly 
289 
issued by the Bureau that a respondent to the subpoena ad testificandum 
290 
or subpoena duces tecum refuses to comply with the same, despite due 
291 
notice, shall be sufficient evidence to authorize the Regional Trial Court 
292 
to cite the respondent with contempt. The Regional Trial Court shall 
293 
likewise have the authority to issue any such order or relief, including 
294 
imprisonment, in order to compel compliance with the subpoena ad 
295 
testificandum or subpoena duces tecum. The Regional Trial Court may, 
296 
in addition, also issue a subpoena ad testificandum or subpoena duces 
297 
tecum addressed to the respondents identical to the one subject of the 
298 
complaint. 
299 


 
300 
SEC. 10.  
Authority to Promulgate Rules and Regulations. – As the focal authority 
301 
of the National Government for the development of policies and strategies 
302 
towards the growth of eCommerce, the Bureau shall have the authority to 
303 
promulgate rules and regulations covering areas or activities concerning 
304 
eCommerce and to impose fines to compel compliance with such rules. 
305 
The grant of this rule-making authority to the Bureau shall be ancillary to 
306 
any duly constituted regulatory jurisdiction granted or that may be 
307 
granted to other government agencies by law, including Executive Order 
308 
No. 292, series of 1987, instituting the "Administrative Code of 1987", 
309 
Republic Act No. 7394, otherwise known as the "Consumer Act of the 
310 
Philippines", Republic Act No. 7653, as amended, otherwise known as 
311 
"The New Central Bank Act", Republic Act No. 8293, as amended, 
312 
otherwise known as the "Intellectual Property Code of the Philippines", 
313 
Republic Act No. 8799, otherwise known as the "Securities Regulation 
314 
Code", Republic Act No. 9239, otherwise known as the "Optical Media 
315 
Act of 2003", Republic Act No. 9593, otherwise known as the "Tourism 
316 
Act of 2009", Republic Act No. 10173, otherwise known as the ""Data 
317 
Privacy Act of 2012", Republic Act No. 10667, otherwise known as the 
318 
"Philippine Competition Act", Republic Act No. 11127, otherwise known 
319 
as " The National Payment Systems Act", and Republic Act No. 11232, 
320 
otherwise known as the "Revised Corporation Code". 
321 
 
322 
The Bureau shall defer the exercise of rule-making power to the above-
323 
listed government agencies conferred by law with regulatory jurisdictions 
324 
over eCommerce providers or platforms unless the other agency declines 
325 
to exercise its jurisdiction or does not act within a timely manner. 
326 
 
327 
SEC. 11.  
Registry of Online Business (ROB). – Within a period of one (1) year from 
328 
the effectivity of this Act, the Bureau shall, in coordination with the DICT, 
329 
establish, manage and maintain a ROB which shall provide consumers 
330 
access to data and information of registered online business entities for 
331 


purposes of verifying the validity, existence of and other relevant 
332 
information pertaining to business entities. 
333 
 
334 
The DICT, in consultation with the DTI, the National Privacy 
335 
Commission (NPC), the Philippine Competition Commission (PCC) and 
336 
other concerned agencies, shall issue the rules and regulations to govern 
337 
the development, management, operation, and maintenance of the ROB. 
338 
 
339 
 
340 
CHAPTER 3 
341 
SUPERVISION OF ECOMMERCE 
342 
 
343 
SEC. 12.  
Authority to Issue Take Down Order. – The Secretary of Trade and 
344 
Industry, upon due notice and hearing regarding violations of this Act, the 
345 
Consumer Act of the Philippines, or any other related trade or consumer 
346 
laws, operating to the grave and irreparable prejudice of a consumer or a 
347 
rights holder, shall have the power to issue an order directing that a 
348 
website, webpage, online application, social media account, or other 
349 
similar platform, be taken down, made inaccessible in the Philippines, or 
350 
that no entity shall process any payment to any of those entities, or 
351 
otherwise be rendered commercially inoperative, in order to abate any 
352 
further violations. 
353 
 
354 
The said provisional takedown order shall be directed against the owner 
355 
or operator of the website, webpage, online application, social media 
356 
account, as well as duly registered internet service provider, as well as 
357 
payment gateways or channels. Copies of the order shall likewise be served 
358 
on other government agencies whose cooperation would be required for 
359 
the enforcement of the same. 
360 
 
361 
The order shall remain in effect for a maximum period of thirty (30) days 
362 
unless otherwise extended or made permanent by a judicial order or 
363 


decision. 
364 
 
365 
SEC. 13.  
Cease and Desist Order. – The Secretary of Trade and Industry, upon due 
366 
notice and hearing, shall have the power to issue an order directing a 
367 
website, webpage, online application, social media account, or other 
368 
similar platform operating to the grave and irreparable prejudice of a 
369 
consumer or a rights holder, to desist from marketing or offering goods 
370 
or services that are accessible in the Philippines, and directing that no 
371 
payments shall be made to any entity which is marketing or offering such 
372 
goods or services in violation of this Act, the Consumer Act of the 
373 
Philippines, or any other related trade or consumer laws. The cease and 
374 
desist order shall remain in effect for a maximum of thirty (30) days unless 
375 
otherwise extended or made permanent by a judicial order or decision. 
376 
 
377 
SEC. 14.  
Referral of Complaints. – The Bureau shall refer any complaint it receives 
378 
involving violation of other laws committed in the course of eCommerce 
379 
activities to the appropriate regulatory authority for action. If the 
380 
complaint or violation pertains to the violation of the provisions of 
381 
Republic Act No. 10175, otherwise known as the "Cybercrime Prevention 
382 
Act of 2012", the matter shall be referred to the Department of Justice 
383 
(DOJ) for appropriate investigation. In cases where appropriate, the DTI 
384 
may itself initiates the formal complaint with the appropriate regulatory 
385 
authority or the DOJ. The Bureau shall track any such complaint or 
386 
referral made to other authorities and coordinate with them to ensure that 
387 
the said matters are duly resolved within a reasonable period. 
388 
  
389 
SEC. 15.  
Qualifications to Engage in eCommerce. – The following are presumed 
390 
legally authorized to engage in eCommerce in the Philippines in the 
391 
ordinary course of their trade or business: 
392 
 
393 
a) An individual who is duly licensed to do business as a single-proprietor 
394 
with the DTI; 
395 


 
396 
b) A juridical entity that is duly registered with the Securities and 
397 
Exchange Commission (SEC), whether as a corporation, a one-person 
398 
corporation, or as a partnership;  
399 
 
400 
c) A cooperative that is duly licensed by the Cooperative Development 
401 
Authority (CDA); 
402 
 
403 
d) A foreign corporation that is duly licensed by the SEC to transact 
404 
business in the Philippines; and 
405 
 
406 
e) A non-resident foreign individual or juridical entity who has complied 
407 
with Section 5 of this Act. A resident of the Philippines who engages, 
408 
abets, or aids in unauthorized eCommerce activities in the ordinary 
409 
course of trade or business shall be subject to any appropriate penalty 
410 
as may be provided by law and shall in the same manner as the party 
411 
engaged in such unauthorized eCommerce activities. 
412 
 
413 
A person who is authorized to engage in eCommerce in the Philippines 
414 
and who facilitates the sale of a digital product or service by one who is 
415 
not so authorized is deemed primarily liable for any obligation, damage, 
416 
or fine, that may arise from the transaction or from the digital product. 
417 
 
418 
A non-resident of the Philippines who engages in eCommerce by 
419 
purposefully availing of the Philippine market may not evade legal liability 
420 
in the Philippines by virtue of non- residency or non-registration and shall 
421 
be subject to the same obligations and liabilities arising from any 
422 
transaction as those who are authorized to engage in eCommerce in the 
423 
Philippines. 
424 
 
425 
SEC. 16.  
Business Registration. – 
426 
 
427 


a) To encourage the formation of business enterprises, the growth and 
428 
integrated development of the eCommerce market, and protection of 
429 
online consumers, all individuals engaged in eCommerce shall register 
430 
as a business either as a sole proprietor, one-person corporation, 
431 
partnership, corporation, or cooperatives. 
432 
 
433 
b) Consistent with Republic Act No. 11032, otherwise known as the 
434 
"Ease of Doing Business and Efficient Government Service Delivery 
435 
Act of 2018," all national government agencies and local government 
436 
units (LGUs) shall make available online registration of business 
437 
permits and licenses particularly for those engaged in eCommerce. 
438 
 
439 
c) The SEC, LGUs, and the CDA shall submit to the Bureau an annual 
440 
list of registered enterprises for monitoring and for purposes of 
441 
maintaining a database of online merchants and eCommerce platform 
442 
operators. 
443 
  
444 
CHAPTER 4 
445 
CONSUMER RIGHTS AND OBLIGATIONS 
446 
INVOLVING INTERNET TRANSACTIONS 
447 
 
448 
SEC. 17.  
Code of Conduct. – To build trust in internet transactions and to protect 
449 
and uphold the interest of consumers at all times, all businesses engaged 
450 
in eCommerce are expected to act responsibly, consistent with the 
451 
following principles: 
452 
 
453 
a) Consumers shall be treated with honesty, integrity, and fairness at all 
454 
times; 
455 
 
456 
b) The rights of consumers shall be applied equally; 
457 
 
458 
c) Business entities shall refrain from engaging in illegal, fraudulent, 
459 


unethical, or unfair business practices that harm consumers and shall 
460 
comply with applicable laws and regulations, especially the protection 
461 
of intellectual property rights; 
462 
 
463 
d) Accurate information about goods and services marketed and sold 
464 
online to Philippine consumers shall be given and made available to 
465 
consumers; 
466 
 
467 
e) Goods and services sold online must conform to Philippine regulatory 
468 
standards; 
469 
 
470 
f) The safety of goods and services marketed or sold online must not be 
471 
compromised and products that have been recalled in the offline retail 
472 
market must not be marketed or sold online; 
473 
 
474 
g) Goods and services must be easily accessible, accurately described, and 
475 
promoted through fair advertising and marketing practices; 
476 
 
477 
h) Consumers must be given the correct and complete information about 
478 
costs through a sales invoice or an official receipt detailing the 
479 
particular costs of the goods or services purchased, including shipping 
480 
or delivery charges. Hidden charges or additional costs such as 
481 
customs duties or currency conversion charges must be avoided; 
482 
 
483 
i) The tracking of deliveries must be provided as part of services of online 
484 
merchants or eCommerce platform operators and goods purchased 
485 
must be delivered within the promised time and described condition to 
486 
the address provided by the consumer; 
487 
 
488 
j) A cancellation option must be provided wherein consumers are given 
489 
the opportunity to review their online purchases before finally 
490 
confirming their purchase or withdrawing from a confirmed 
491 


transaction in appropriate circumstances; 
492 
 
493 
k) Consumer complaints must be dealt with through fair, easy, 
494 
transparent and equitable mechanisms for consumer redress. If 
495 
warranted, compensation, refund, repair, and replacement should be 
496 
provided to the consumer; 
497 
 
498 
l) Data privacy laws and regulations, including Republic Act No. 10173, 
499 
otherwise known as the "Data Privacy Act of 2012," and other similar 
500 
laws and regulations shall be strictly complied with; 
501 
 
502 
m) The safety and security of online payments and sensitive data shall be 
503 
safeguarded through the use of secure technology and protocols 
504 
including those evidenced by visible trust certificates or  any 
505 
appropriate similar certification as may emerge in the future; 
506 
 
507 
n) The transmission of unsolicited commercial email or bulk email, 
508 
except those subject to the control and discretion of the consumer 
509 
through readily accessible configurations that allow the consumer to 
510 
choose whether they wish to receive or opt-out from commercial 
511 
messages by email or electronic means, must be avoided; 
512 
 
513 
o) The production of fake online reviews or spreading wrong information 
514 
about competitors is improper and must be avoided; 
515 
 
516 
p) Consumers must be educated about the risks of transacting through 
517 
the internet and shall be provided competent and professional advice; 
518 
and 
519 
 
520 
q) Competing fairly with other businesses and adherence to competition 
521 
principles and all applicable competition laws and regulations, 
522 
including Republic Act No. 10667, otherwise known as the 
523 


"Philippine Competition Act", shall ensure the robust development of 
524 
eCommerce and the economy. 
525 
 
526 
Whenever appropriate, the DTI shall issue rules and regulations 
527 
corresponding to international trends, developments and best practices 
528 
that it may adopt and implement. 
529 
 
530 
SEC. 18. 
Obligations of eCommerce Platform Operators. – eCommerce platform 
531 
operators shall have the following obligations: 
532 
 
533 
a) Ensure that any commercial communication shall: 
534 
 
535 
1) Be clearly identifiable as a commercial communication; 
536 
2) Clearly identify the person on whose behalf the commercial 
537 
communication is made; 
538 
3) Clearly identify any promotional offer including any discount, 
539 
premium, or gift, and ensure that any condition which must be met 
540 
to qualify for it is easily accessible, and presented clearly and 
541 
unambiguously; and 
542 
4) Clearly identify any promotional competition or game and ensure 
543 
that any condition for participation is easily accessible and 
544 
presented clearly and unambiguously; 
545 
 
546 
b) Require all online merchants, prior to the commencement of online 
547 
transactions to submit the following to eCommerce platform 
548 
operators: 
549 
 
550 
1) Name of the online merchant; 
551 
2) Registration documents of the online merchant from the 
552 
appropriate LGU, the DTI or SEC, and the Bureau of Internal 
553 
Revenue (BIR); 
554 
3) Geographic address at which the online merchant may be served 
555 


summons or any other judicial processes in its name and behalf; 
556 
4) Contact details of the online merchant, such as a mobile or landline 
557 
number, and a valid electronic mail address, which makes it 
558 
possible to immediately and easily contact and communicate with 
559 
the online merchant in a direct and effective manner; and 
560 
5) Details of any professional body or similar institution with which 
561 
the online merchant is registered, in instances when the online 
562 
merchant exercises a regulated profession; 
563 
 
564 
c) Maintain a file of all online merchants registered under their platform 
565 
containing the information provided by online merchants in paragraph 
566 
(b) of this Section; 
567 
 
568 
d) Publish at a conspicuous part on their website, webpage, social media 
569 
account, or other similar platform, the following general information: 
570 
 
571 
1) Name of the online merchant; 
572 
2) Registration documents of the online merchant from the 
573 
appropriate LGU, the DTI or SEC, and the BIR; 
574 
3) Geographic address at which the online merchant may be served 
575 
summons or any other judicial processes in its name and behalf; 
576 
4) Contact details of the online merchant, a mobile or landline 
577 
number, or a valid electronic mail address, which makes it possible 
578 
to immediately and easily contact and communicate with the online 
579 
merchant and communicate in a direct and effective manner unless 
580 
the eCommerce online platform establishes means to facilitate 
581 
communication between online merchants and consumers; and 
582 
5) Details of any professional body or similar institution with which 
583 
the online merchant is registered, in instances when the online 
584 
merchant exercises a regulated profession; 
585 
 
586 
e) Submit to the Bureau a list of all online merchants registered under 
587 


their platform. When an eCommerce platform operator discovers that 
588 
an onboarded online merchant has not obtained registration 
589 
documents from the relevant regulatory agency, it shall report such 
590 
fact to the Bureau within fifteen (15) days from discovery thereof. 
591 
 
592 
f) Cooperate with regulators, in accordance with existing laws and 
593 
regulations, any investigation, or resolution of consumer complaints. 
594 
 
595 
SEC. 19.  
Internet Transactions Involving Consumers. – An online merchant of 
596 
goods shall exercise the following responsibilities: 
597 
 
598 
a) Deliver or cause the delivery of goods to the consumer, ensuring that 
599 
the following are complied with: 
600 
 
601 
1. The goods are of the description, type, quantity, and quality, and 
602 
possess the functionality, compatibility, interoperability and other 
603 
features, as required by the sales contract. The online merchant 
604 
must show a digital sample or model of the goods to the consumer 
605 
and the goods possess the quality of and correspond to the 
606 
description of the sample or model; possess the qualities and 
607 
performance features, including in relation to functionality, 
608 
compatibility, interoperability, accessibility, continuity, and 
609 
security, normal for digital content or digital services of the same 
610 
type and of which the consumer may reasonably expect; fit for any 
611 
particular purpose for which the consumer requires them and 
612 
which the consumer made known to the online merchant at the 
613 
time of the conclusion of the contract, and which the online 
614 
merchant has accepted; and possess the qualities and performance 
615 
capabilities indicated in any pre-contractual statement which forms 
616 
an integral part of the contract. 
617 
2. All goods shall: 
618 
 
619 


i) Be delivered along with the accessories including packaging, 
620 
installation instructions or other instruction as the consumer 
621 
may expect to receive; and 
622 
ii) Possess qualities and performance capabilities which are 
623 
normal in goods of the same type and which the consumer may 
624 
expect given the nature of the goods and taking into account 
625 
any public statement made by or on behalf of the online 
626 
merchant or other persons in earlier links of the chain of 
627 
transactions, including the producer, unless the online 
628 
merchant shows that: the online merchant was not, and could 
629 
not reasonably have been aware of the statement in question; 
630 
by the time of conclusion of the contract, the statement had 
631 
been corrected; or the decision to buy the goods could not have 
632 
been influenced by the statement. 
633 
 
634 
b) Be liable for any lack of conformity with the contract which exists at 
635 
the time when: 
636 
1) The consumer or a person acting on behalf of the consumer has 
637 
acquired the physical possession of the goods, or when the goods 
638 
are handed over to the carrier chosen by the consumer, and that 
639 
carrier was not proffered by the online merchant or where the 
640 
online merchant proposes no means of carriage; 
641 
2) The goods have been installed by the online merchant or under the 
642 
online merchant's responsibility. The time at which the installation 
643 
has been completed shall be considered the time when the 
644 
consumer acquires physical possession of the goods; 
645 
3) The goods have been installed by the consumer in accordance with 
646 
the online merchant's installation instructions. The expiration of a 
647 
reasonable period for installation, which shall not be more than 
648 
thirty (30) days, shall be considered the time when the consumer 
649 
acquires the physical possession of the goods. 
650 
4) The goods are incorrectly installed. Any lack of conformity 
651 


resulting from the correct installation is regarded as lack of 
652 
conformity with the contract of the goods if: 
653 
  
654 
i) The goods were installed by the online merchant or under the 
655 
online merchant's responsibility; and 
656 
ii) The goods, intended to be installed by the consumer, were 
657 
installed by the consumer and the correct installation was due 
658 
to a shortcoming in the installation instructions. 
659 
 
660 
c) Where the contract provides that the digital content or digital service 
661 
is to be supplied or made accessible to the consumer over a period of 
662 
time, the online merchant may modify the digital content or digital 
663 
service beyond what is necessary to maintain the digital content or 
664 
digital service in conformity with the contract, if the following 
665 
conditions are met: 
666 
 
667 
1) The contract allows, and provides a valid reason for, such a 
668 
modification; 
669 
2) Such a modification is made without additional cost to the 
670 
consumer; and 
671 
3) The consumer is informed by a clear and comprehensible manner 
672 
of the modification. 
673 
 
674 
d) Where the online merchant operates its own website, webpage, social 
675 
media account, or any other similar platform, it shall publish on its 
676 
homepage the following: 
677 
 
678 
1) Name of the online merchant; 
679 
2) Registration documents of the online the appropriate LGU, the DTI 
680 
or SEC, the BIR, and other appropriate regulatory authorities; 
681 
3) Geographic address at which the online merchant may be served 
682 
summons or any other judicial processes in its name and behalf; 
683 


4) Contact details of the online merchant, a mobile or landline 
684 
number, and a valid electronic mail address, which makes it 
685 
possible to immediately and easily contact and communicate with 
686 
the online merchant and communicate in a direct and effective 
687 
manner; and 
688 
5) Details of any professional body or similar institution with which 
689 
the online merchant is registered, in instances when the online 
690 
merchant exercises a regulated profession. 
691 
 
692 
Any agreement is valid only if, at the time of the conclusion of the 
693 
contract, the consumer has knowledge of the specific condition of the 
694 
goods and the consumer has expressly accepted this specific condition  
695 
when concluding the contract. 
696 
 
697 
SEC. 20.  
Right to Redress by Online Merchants. – Where the online merchant is 
698 
liable to the consumer because of a lack of conformity with the contract 
699 
resulting from an act or omission by a person in earlier links of the chain 
700 
of transactions, the online merchant is entitled to pursue remedies against 
701 
the person or persons liable in the chain of transactions. The person 
702 
against whom the online merchant may pursue remedies and the relevant 
703 
actions and conditions to exercise must be in accordance with the 
704 
following: 
705 
 
706 
a) Repairs must be completed and replacements delivered within a 
707 
reasonable time and without any significant inconvenience to the 
708 
consumer, taking into account the nature of the goods and the purpose 
709 
for which the consumer acquired the goods; 
710 
b) A proportionate reduction of the price or the termination of the 
711 
contract, including restitution of the price, in the following instances: 
712 
 
713 
1. A repair or replacement is impossible or unlawful; 
714 
2. The online merchant has not completed repair or replacement 
715 


within a reasonable time; 
716 
3. A repair or replacement may cause significant inconvenience to the 
717 
consumer; or 
718 
4. The online merchant has declared, or it is equally clear from the 
719 
circumstances that the online merchant may not deliver the goods 
720 
in conformity with the contract within a reasonable time; 
721 
 
722 
c) The consumer is entitled to withhold the payment of any outstanding 
723 
part of the price, until the online merchant has brought the goods into 
724 
conformity with the contract; 
725 
d) The consumer is not entitled to a remedy to the extent that the 
726 
consumer has contributed to the lack of conformity with the contract 
727 
or its effects; 
728 
e) Where the online merchant remedies the lack of conformity with the 
729 
contract by replacement, the online merchant may take back the 
730 
replaced goods at the online merchant's expense unless the parties have 
731 
agreed otherwise after the lack of conformity with the contract has 
732 
been brought to the online merchant's attention by the consumer; 
733 
f) Where the consumer had installed the goods in a manner consistent 
734 
with their nature and purpose, before the lack of conformity with the 
735 
contract became apparent, the cost for the removal of the 
736 
non•conforming goods and the installation of replacement goods, and 
737 
all associated costs shall be for the account of the online merchant; 
738 
g) In case of goods that do not conform to the contract, the consumer is 
739 
not liable to pay for using the non-conforming goods prior to its 
740 
replacement; 
741 
h) The consumer may choose between repair and replacement unless the 
742 
option chosen is impossible, unlawful or, imposes costs upon the 
743 
online merchant that is disproportionate, taking into account all 
744 
circumstances, including: 
745 
 
746 
1) The value of the goods, if the goods conformed to the contract; 
747 


2) The significance of the lack of conformity with the contract; and 
748 
3) Whether the alternative remedy may be completed without 
749 
significant inconvenience to the consumer. 
750 
 
751 
The reduction of price should be proportional to the decrease in the value 
752 
of the goods which were received by the consumer compared to the value 
753 
of the goods if it were in conformity with the contract. 
754 
 
755 
SEC. 21.  
Obligations of Ride Hailing Service Providers. – Ride hailing service 
756 
providers shall require its consumers to register by showing valid proof of 
757 
identity, email address or cellular phone number. Ride hailing service 
758 
providers shall make the identity of its providers and support staff 
759 
available to the rider at all times. 
760 
 
761 
SEC. 22.  
Obligations of Consumers of Ride Hailing Services. – It shall be unlawful 
762 
for consumers of ride hailing services to: 
763 
 
764 
a) Cancel confirmed orders for the delivery of food or grocery items when 
765 
the said items have already been paid by or is already in the possession 
766 
of the Ride Hailing Service Partner or is otherwise in transit to the 
767 
consumer unless: 
768 
 
769 
1) The consumer uses credit card services as a means for the payment 
770 
of the service and the payment will still be credited notwithstanding 
771 
the cancellation; 
772 
2) The consumer remits the reimbursement and payment to the ride 
773 
hailing service partner as a pre-condition for the cancellation of the 
774 
order; or 
775 
3) The delivery of ordered food or grocery items will be or was 
776 
delayed for at least one (1) hour from the expected time of arrival 
777 
due to the fault or negligence of the ride hailing service partner. 
778 
 
779 


b) Unreasonably shame, demean, embarrass, or humiliate ride hailing 
780 
service partners. The consumer may invoke as a defense of good faith, 
781 
a well-founded belief that the ride hailing service partner had 
782 
committed a crime or caused civil injury towards the consumer. 
783 
 
784 
SEC. 23.  
Right to Terminate the Contract. – If the goods delivered do not conform 
785 
to the contract, the consumer may exercise the right to terminate the 
786 
contract by giving notice to the online merchant. Where the lack of 
787 
conformity relates to only some of the goods delivered under the contract, 
788 
the consumer may terminate the contract only in relation to the non- 
789 
conforming good and any other goods which was acquired as an accessory 
790 
to it. 
791 
 
792 
Where the consumer terminates a contract as a whole or in relation to 
793 
some of the goods delivered: 
794 
 
795 
a) The online merchant shall reimburse to the consumer the price paid 
796 
without undue delay and in any event not later than fourteen (14) days 
797 
from receipt of the notice; 
798 
b) Upon receipt of the reimbursement from the online merchant, the 
799 
consumer shall return, at the online merchant's expense, the goods 
800 
without undue delay and in any event not later than fourteen (14) days 
801 
from the receipt of the reimbursement; 
802 
c) Where the goods cannot be returned because of destruction or loss 
803 
caused by the negligence of the consumer, the consumer shall pay to 
804 
the online merchant the monetary value which the non-conforming 
805 
goods would have had at the date when the return was to be made if 
806 
they had been kept by the consumer without destruction or loss until 
807 
that date, unless the destruction or loss has been caused by a lack of 
808 
conformity with the goods with the contract, within fourteen (14) days 
809 
from receipt of reimbursement; and 
810 
d) The consumer shall pay for a decrease in the value of the goods only 
811 


to the extent that the decrease in value exceeds depreciation through 
812 
regular use. The payment for decrease in value shall not exceed the 
813 
price paid for the goods. 
814 
 
815 
SEC. 24.  
Damages. – The online merchant is liable for damages to the consumer 
816 
due to the lack of conformity with the contract of the goods. The 
817 
consumer may claim damages within two (2) years from the relevant time 
818 
of establishing conformity. 
819 
 
820 
No damages may be recovered by virtue of this Act after the lapse of four 
821 
(4) years from the time the conformity has been established. 
822 
 
823 
SEC. 25.  
Online Dispute Resolution. – The DTI shall develop an online dispute 
824 
resolution (ODR) platform which is a single point of entry for consumers, 
825 
online merchants, and eCommerce platform operators seeking out-of-
826 
court resolution of disputes. Where an eCommerce platform operator does 
827 
not have an internal dispute resolution mechanism, all complaints through 
828 
an ODR against an eCommerce platform operator shall be accompanied 
829 
by proof that internal dispute resolutions were exhausted. 
830 
 
831 
a) The ODR shall be an interactive website which may be accessed 
832 
electronically and free of charge. The DTI, through the Bureau, shall 
833 
be responsible for its operation, including its maintenance, funding 
834 
and data security. The ODR platform must be user-friendly and must 
835 
adopt the twin principles of “privacy by design” and “design for all”, 
836 
where the privacy of its users is respected, and the ODR platform is 
837 
accessible and usable by all users. 
838 
 
839 
b) The DTI shall establish a network of ODR contact points from, among 
840 
others, the agencies involved in consumer complaints specified in 
841 
Republic Act No. 7394, otherwise known as the “Consumer Act of the 
842 
Philippines,” which includes the Fair Trade Enforcement Bureau 
843 


(FTEB) of the DTI, the Department of Agriculture (DA), the 
844 
Department of Tourism (DOT), and the Department of Health 
845 
(DOH). The NPC and the Intellectual Property Office of the 
846 
Philippines (IPOPHIL) shall also form part of the ODR network. 
847 
 
848 
c) Each agency shall designate one ODR contact point and communicate 
849 
its name and contact details to the DTI. The head of agency shall 
850 
confer responsibility to the ODR contact points in ensuring that timely 
851 
and competent support is provided to the resolution of disputes 
852 
relating to complaints submitted through the ODR platform. 
853 
 
854 
d) The ODR platform shall have the following functions: 
855 
 
856 
1) Provide an electronic form by means of which alternative dispute 
857 
resolution (ADR) entities shall transmit the information; 
858 
2) Provide a feedback system that allows the parties to express their 
859 
views on the functioning of the ODR platform and on the ADR 
860 
entity which handles their dispute; and 
861 
3) Make publicly available general information on ADR as a means 
862 
of out-of-court dispute resolution and information on ADR entities 
863 
that are competent to deal with disputes. 
864 
  
865 
e) The DTI shall ensure that the information in the website is accurate, 
866 
up to date and provided in a clear, understandable and accessible way. 
867 
 
868 
f) Government and private sector entities which provide ADR services 
869 
which are competent to deal with disputes shall be registered 
870 
electronically with the ODR platform. 
871 
 
872 
g) Digital platforms and online retailers shall provide on their websites 
873 
an electronic link to the DTI ODR platform on their homepage. That 
874 
link shall be easily accessible to consumers. 
875 


 
876 
h) The DTI, in consultation with other concerned agencies, shall issue the 
877 
implementing rules and regulations on the development, management, 
878 
operations, and maintenance of the ODR platform. 
879 
 
880 
SEC. 26.  
Limited Liability of eCommerce Platform Operators. – 
881 
 
882 
a) eCommerce platform operators shall be solidarily liable with an online 
883 
merchant to the consumer only to the extent of civil damages suffered 
884 
by the consumer as a direct result of the transaction, without prejudice 
885 
to liabilities that may incur under the next succeeding paragraph or the 
886 
provisions of other existing laws. 
887 
b) eCommerce platform operators shall, for civil or administrative 
888 
indemnity, be held liable with  an  online merchant  only under  the 
889 
following instances: 
890 
 
891 
1) If the eCommerce platform operator fails to exercise ordinary 
892 
diligence in complying with its obligations under Section 18 hereof, 
893 
resulting to loss or damage to the consumer; 
894 
2) If the identity of the online merchant and the eCommerce platform 
895 
operator are the same; 
896 
3) If the eCommerce platform operator fails, after notice, to act 
897 
expeditiously to remove, or disable access to goods or services 
898 
appearing on their platform that they know or should have known 
899 
to be not compliant with law, or otherwise infringes on intellectual 
900 
property rights; 
901 
4) If the eCommerce platform operator permits an online merchant, 
902 
not otherwise authorized to do business in the Philippines, to offer 
903 
its goods and services for sale, resulting in loss or damage to the 
904 
consumer. 
905 
 
906 
c) eCommerce platform operators shall not be held liable under the 
907 


following instances: 
908 
 
909 
1) The eCommerce platform operator relied on the accuracy, 
910 
authenticity, and veracity of an online merchant's representations, 
911 
warranties or submitted registration documents, even if such 
912 
information or documents are later proved to be inaccurate, false 
913 
or untrue: Provided, That, the eCommerce platform operators are 
914 
able to show evidence of good faith and that reasonable efforts 
915 
were exerted to ascertain the accuracy and reliability of the 
916 
documents or information submitted by such online merchant. 
917 
2) The eCommerce platform operator relied on the representations, 
918 
warranties, or submissions of an online merchant stating that it is 
919 
duly organized, valid, and existing under the laws of the Philippines 
920 
or under the laws of its respective jurisdictions to engage in 
921 
eCommerce, or has obtained all necessary licenses, permits or 
922 
approvals required for the sale of goods and services, or that said 
923 
goods and services conform to applicable laws, rules and 
924 
regulations. 
925 
 
926 
SEC. 27.  
Digital Payments. – ECommerce platform operators and online 
927 
merchants shall issue the appropriate paper or electronic invoices or 
928 
receipts for all sales in accordance with relevant internal revenue laws and 
929 
regulations. An electronic invoice or receipt shall have the same legal effect 
930 
as a physical invoice or receipt. 
931 
 
932 
The DTI, through the Bureau, shall, in coordination with the Bangko 
933 
Sentral ng Pilipinas (BSP), the BIR, the Bureau of Customs (BOC), the 
934 
DOJ, the Philippine National Police, the DICT, and the NTC, issue rules 
935 
and regulations to modernize and streamline the regulatory framework 
936 
and encourage the adoption of electronic payment systems by the 
937 
citizenry. The DTI shall also develop guidelines to protect merchants and 
938 
consumers covering the various digital payment solutions. 
939 


 
940 
SEC. 28.  
Enforcement of Rights and Remedies. – Without prejudice to existing 
941 
remedies provided under other laws, the enforcement of the rights and 
942 
remedies established under this Chapter shall be through the following 
943 
means: 
944 
 
945 
a) If involving complaints by a consumer where no damages are sought, 
946 
the complaint shall be treated as a consumer complaint with the DTI 
947 
pursuant to Title V, Chapter III of Republic Act No. 7394, otherwise 
948 
known as the "Consumer Act of the Philippines"; 
949 
b) If involving a claim for damages, the injured party shall seek recovery 
950 
by filing a civil action with the appropriate trial court. 
951 
 
952 
 
953 
CHAPTER 5 
954 
ELECTRONIC COMMERCE PHILIPPINE TRUSTMARK 
955 
 
956 
SEC. 29.  
ECommerce Philippine Trustmark. – To provide assurance of safety and 
957 
security in internet transactions, the DTI shall lead the development of an 
958 
eCommerce Philippine Trustmark hereinafter referred to as the 
959 
"Trustmark", which may be established and operated by an industry-led 
960 
private sector governance body. The DTI shall periodically assess the 
961 
effectiveness of the industry-led Trustmark in promoting to the public 
962 
reliable and trustworthy eCommerce services, and may opt to assume 
963 
operational control over the Trust mark if it determines that the industry-
964 
led private sector effort cannot sufficiently achieve the goals of the Trust 
965 
mark. 
966 
 
967 
 
968 
CHAPTER 5 
969 
FINAL PROVISIONS 
970 
 
971 


SEC. 30.  
Penalties. – 
972 
  
973 
a) Online merchants who fail to register either as a sole proprietor, one-
974 
person corporation, partnership, corporation, or cooperative, shall be 
975 
punished with a fine equivalent to one hundred percent (100%) of the 
976 
amount of the digital goods offered or sold based on the market price 
977 
as determined by the Bureau, including confiscation of the goods as 
978 
advertised; 
979 
b) eCommerce platform operators and online merchants found guilty of 
980 
violating Section 18, or Section 19 (d) of this Act shall be punished 
981 
with a fine not less than Five hundred thousand pesos (PhP500,000.00) 
982 
but not more than Five million pesos (PhP 5,000,000.00) or the 
983 
revocation of their licenses, or both, at the discretion of the courts. 
984 
c) Ride hailing service providers found guilty of violating Section 21 of 
985 
this Act Shall be punished with a fine of up to Five hundred thousand 
986 
pesos (PhP 500,000.00) or the revocation of their licenses, or both, at 
987 
the discretion of the courts. 
988 
d) Consumers found guilty of violating Section 22 (a) of this Act shall be 
989 
punished with a fine of up to Fifty thousand pesos (PhP 50,000.00) 
990 
plus one hundred percent (100%) of the amount advanced by the ride 
991 
hailing service partner, or both, at the discretion of the courts. 
992 
e) Consumers found guilty of violating Section 22 (b) and Section 23 
993 
(b)of this Act shall be punished with a fine of up to Fifty thousand 
994 
pesos (PhP 50,000.00), at the discretion of the courts. 
995 
 
996 
The application of these penalties shall be without prejudice to the liability 
997 
of the offending party under other laws or regulations. 
998 
 
999 
SEC. 31.  
Oversight Committee. – There is hereby created a Congressional 
1000 
Oversight Committee, hereinafter referred to as the Internet Transactions 
1001 
Act Congressional Oversight Committee, to be composed of five (5) 
1002 
members from the Senate, which shall include the Chairpersons of the 
1003 


Senate Committees on Trade, Commerce and Entrepreneurship, Science 
1004 
and Technology, and Finance, and five (5) members from the House of 
1005 
Representatives, which shall include the Chairpersons of the House of 
1006 
Representatives Committees on Trade and Industry, ICT, and 
1007 
Appropriations. The Internet Transactions Act Congressional Oversight 
1008 
Committee shall be jointly chaired by the Chairpersons of the Senate 
1009 
Committee on Trade and Commerce and the House of Representatives 
1010 
Committee on Trade and Industry. It shall meet at least every quarter of 
1011 
the first two years and every semester for the third year after the approval 
1012 
of this Act to review the implementation of this Act, evaluate the Bureau 
1013 
on its functions as the lead agency, determine any inherent weaknesses in 
1014 
the law, and recommend the necessary remedial legislation or executive 
1015 
measures: Provided, That the Internet Transactions Act Congressional 
1016 
Oversight Committee shall cease to exist after five (5) years upon the 
1017 
effectivity of this Act. 21 The Secretariat of the Internet Transactions Act 
1018 
Congressional Oversight Committee shall be drawn from the existing 
1019 
personnel of the Senate and House of Representatives Committees 
1020 
comprising the Internet Transactions Act Congressional Oversight 
1021 
Committee. 
1022 
 
1023 
SEC. 32. 
 Implementing Rules and Regulations. – The Secretary of Trade and 
1024 
Industry shall, in consultation with the DICT, the BSP, the DOT, the Land 
1025 
Transportation Franchising and Regulatory Board (LTFRB), the Optical 
1026 
Media Board (OMB), the IPOPHIL, and other relevant government 
1027 
agencies and stakeholders, develop and issue the implementing rules and 
1028 
regulations of this Act. 
1029 
  
1030 
SEC. 33.  
Transitory Provisions. – To ensure the continued implementation of 
1031 
programs to promote eCommerce, the current eCommerce Division shall 
1032 
continue to exercise its functions until such time that the organizational 
1033 
structure and personnel of the Bureau have been determined and 
1034 
approved. 
1035 


 
1036 
All affected officers and personnel of the eCommerce Division shall be 
1037 
absorbed by the Bureau without demotion in rank or diminution of 
1038 
salaries, benefits and other privileges. 
1039 
 
1040 
SEC. 34.  
Appropriations. – The amount necessary to carry out the provisions of 
1041 
this Act shall be included in the annual General Appropriations Act. 
1042 
 
1043 
SEC. 35.  
Separability Clause. – If any provision or part of this Act is declared 
1044 
invalid or unconstitutional, such declaration shall not affect the validity 
1045 
of the remaining provisions of this Act. 
1046 
 
1047 
SEC. 36.  
Repealing Clause. – All laws, rules, and regulations, presidential decrees, 
1048 
letters of instruction, and other presidential issuances which are 
1049 
incompatible or inconsistent with the provisions of this Act are hereby 
1050 
repealed, amended, or modified accordingly. 
1051 
 
1052 
SEC. 37.  
Effectivity. – This Act shall take effect fifteen (15) days after its 
1053 
publication in the Official Gazette or in at least one (1) newspaper of 
1054 
general circulation. It shall also be published online through the Official 
1055 
Gazette Online (www.officialgazette.gov.ph) and on the website of the 
1056 
DTI (www.dti.gov.ph). 
1057 
 
1058 
Approved, 
1059 
 
1060 
 
1061