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E-COMMERCE LAW IN THE PHILIPPINES
E-commerce Law in the Philippines
What is E-Commerce? 
 E-commerce (electronic-commerce) 
refers to business over the Internet. 
Web sites such as Amazon.com, 
Buy.com, and eBay are all 
e-commerce sites.
Business-to-Consumer (B2C) 
Business-to-Consumer (B2C) 
Business-to-Consumer (B2C) 
 business transactions between 
companies, business-to-consumer 
models are those that sell products 
or services directly to personal-use 
customers 
 connects, communicates and 
conducts business transactions with 
consumers most often via the 
Internet 
 larger than just online retailing; it 
includes online banking, travel 
services, online auctions, and health 
and real estate sites. 
http://smallbusiness.chron.com/explain-business-consumer-model-2258.html
Business-to-Business (B2B) 
 A type of commerce 
transaction that exists 
between businesses, such 
as those involving a 
manufacturer and 
wholesaler, or a 
wholesaler and a retailer 
 conducted between 
companies, rather than 
between a company and 
individual consumers 
http://www.investopedia.com/terms/b/btob.asp
REPUBLIC ACT NO. 8792 OF PHILIPPINES 
ELECTRONIC COMMERCE ACT OF 2000 
by the Senate and House of Representatives of the 
Republic of the Philippines 
An act providing for the recognition and use of 
electronic commercial and non-commercial 
transactions and documents, penalties for unlawful 
use thereof and for other purposes .
Definition in General 
Electronic Commerce is defined as the process of 
buying and selling goods electronically by consumers 
and from company to company through computerized 
business transactions. The Organization for Electronic 
Cooperation and Development defines it as 
commercial transactions based on electronic 
transmission of data over communication networks 
such as the Internet. Although the definition of 
electronic commerce is strictly confined to 
commercial undertakings, RA8792 is made applicable 
to both
Objectives 
 provide a secure legal framework 
and environment for electronic 
commerce. 
 protect the integrity of electronic 
documents and electronic 
signatures as well as its 
transmission and communication 
so as to build and ensure the 
trust and reliance of the public 
on electronic transactions.
Authors 
Sen. Ramon Magsaysay Jr., Reps. Leandro 
Verceles,Jr. and Marcial Punzalan, Jr. Co-Authors 
of the Act who filed electronic commerce bills 
were Sen. Juan Flavier, and Blas Ople and Reps. 
Harry Angping, Roilo Golez and Dante Liban. Other 
co-authors include Sen. Vicente Sotto III, Franklin 
Drilon, Fran-cisco Tatad, Raul Roco, Aquilino 
Pimentel Jr., Miriam Defesor-Santiago and Reps. 
HerminioTeves, Magtanggol Guinigundo, Rolando 
Sarmiento, Orlando Fua, JoeySalceda, Oscar 
Moreno, and Ignacio Bunye.
Definition of Terms
a. “Addressee” 
 a person who is intended by the 
originator to receive the electronic 
data message or electronic 
document. 
b. “Computer” 
 any device or apparatus which, by 
electronic, electro-mechanical or 
magnetic impulse, or by other means 
is capable of receiving, recording, 
transmitting, storing, processing, 
retrieving, or producing information, 
data, figures, symbols or other modes 
of written expression according to 
mathematical and logical rules or of 
performing any one or more of those 
functions. 
c. “Electronic Data Message” 
 information generated, sent, 
received or stored by electronic, 
optical or similar means.
d.“Information and Communication 
System” 
 a system intended for and capable of 
generating, sending, receiving, 
storing or otherwise processing 
electronic data messages or 
electronic documents and includes 
the computer system or other similar 
device by or in which data is 
recorded or stored and any 
procedures related to the recording 
or storage of electronic data 
message or electronic document.
e. “Electronic Signature” 
 any distinctive mark, 
characteristic and/or sound in 
electronic form, representing the 
identity of a person and attached 
to or logically associated with the 
electronic data message or 
electronic document or any 
methodology or procedures 
employed or adopted by a 
person and executed or 
adopted by such person with the 
intention of authenticating or 
approving an electronic data 
message or electronic document.
f. “Electronic Document” 
 information or the representation 
of information, data, figures, 
symbols or other modes of written 
expression, described or however 
represented, by which a right is 
established or an obligation 
extinguished, or by which a fact 
may be proved and affirmed, 
which is received, recorded, 
transmitted, stored, processed, 
retrieved or produced 
electronically. 
g. “Electronic Key” 
 a secret code which secures 
and defends sensitive 
information that crosses over 
public channels into a form 
decipherable only with a 
matching electronic key.
h. “Intermediary” 
 a person who in behalf of another 
person and with respect to a 
particular electronic document sends, 
receives and/or stores or provides 
other services in respect of that 
electronic document. 
i. “Originator” 
 a person by whom, or on whose 
behalf, the electronic document 
purports to have been created, 
generated and/or sent . The term 
does not include a person acting 
as an intermediary with respect 
to that electronic document.
j. “Service Provider” 
 a provider of : 
(i) On-line services or network 
access, or the operator of facilities 
therefore, including entities offering the 
transmission, routing, or providing of 
connections for online communications, 
digital or otherwise, between or among 
points specified by a user, of electronic 
documents of the user’s choosing; or (ii) 
The necessary technical means by 
which electronic documents of an 
originator may be stored and made 
accessible to a designated or 
undesignated third party; Such service 
providers shall have no authority to modify 
or alter the content of the electronic data 
message or electronic document received 
or to make any entry therein on behalf of 
the originator, addressee or any third party 
unless specifically authorized to do so, 
and who shall retain the electronic 
document in accordance with the specific 
request or as necessary for the purpose of 
performing the services it was engaged to 
perform.
Salient Features of 
Republic Act 8792
1. It gives legal 
recognition of 
electronic data 
messages, electronic 
documents, and 
electronic signatures. 
(section 6 to 13) 
Sec. 6. Legal Recognition of Data Messages. 
SEC. 13. Retention of Electronic Data 
Message and Electronic Document. 
Section 7. Legal Recognition of Electronic documents 
Section 8. Legal Recognition of Electronic Signatures 
Section 9. Presumption Relating to Electronic Signatures 
Section 10. Original Documents. 
Section 11. Authentication of Electronic Data 
Messages and Electronic Documents 
Section 12. Admissibility and 
Evidential Weight of Electronic 
Data Message or electronic 
document.
2. Allows the 
formation of 
contracts in 
electronic form. 
(section 16) 
SEC. 16. Formation and Validity of 
Electronic Contracts. 
3. Makes banking 
transactions done 
through ATM switching 
networks absolute 
once consummated. 
(section 16)
4. Parties are given 
the right to choose 
the type and level 
of security methods 
that suit their 
needs. (section 24) 
SEC. 24. Choice of Security Methods.
5. Provides the mandate for the 
electronic implementation of 
transport documents to facilitate 
carriage of goods. This includes 
documents such as, but not limited 
to, multi-modal, airport, road, 
rail, inland waterway, courier, post 
receipts, transport documents 
issued by freight forwarders, 
marine/ocean bill of lading, non-negotiable 
seaway bill, charter 
party bill of lading. (section 25 and 
26) 
SEC. 25. Actions Related to 
Contracts of Carriage of 
Goods. 
SEC. 26. Transport 
Documents.
6. Mandates the 
government to have 
the capability to do e-commerce 
within 2 
years or before June 
19, 2002. (section 27) 
SEC. 27. Government Use of 
Electronic Data Messages, Electronic 
Documents and 
Electronic Signatures.
7. Mandates RPWeb to be implemented. 
RPWeb is a strategy that intends to 
connect all government offices to the 
Internet and provide universal access to 
the general public. The Department of 
Transportation and Communications, 
National Telecommunications 
Commission, and National Computer 
Center will come up with policies and 
rules that shall lead to substantial 
reduction of costs of telecommunication 
and Internet facilities to ensure the 
implementation of RPWeb. (section 28) 
SEC. 28. RPWEB To 
Promote the Use Of 
Electronic Documents and 
Electronic Data 
Messages In Government 
and to the General Public.
8. Made cable, 
broadcast, and wireless 
physical infrastructure 
within the activity of 
telecommunications. 
(section 28) 
SEC. 28. RPWEB To Promote the 
Use Of Electronic Documents and 
Electronic Data 
Messages In Government and to 
the General Public.
9. Empowers the Department of 
Trade and Industry to supervise 
the development of e-commerce 
in the country. It can 
also come up with policies and 
regulations, when needed, to 
facilitate the growth of e-commerce. 
(section 29) 
SEC. 29. Authority of the Department of Trade and 
Industry and Participating Entities.
10. Provided 
guidelines as to 
when a service 
provider can be 
liable. (section 
30) 
SEC. 30. Extent of Liability of a Service Provider.
11. Authorities and parties 
with the legal right can only 
gain access to electronic 
documents, electronic data 
messages, and electronic 
signatures. For confidentiality 
purposes, it shall not share or 
convey to any other person. 
SEC. 31. Lawful Access. (section 31 and 32) 
SEC. 32. Obligation of Confidentiality.
12. Hacking or cracking, 
refers to unauthorized 
access including the 
introduction of computer 
viruses, is punishable by a 
fine from 100 thousand to 
maximum commensurating 
to the damage. With 
imprisonment from 6 
months to 3 years. (section 
33) 
SEC. 33. Penalties.
13. Piracy through the 
use of 
telecommunication 
networks, such as the 
Internet, that infringes 
intellectual property 
rights is punishable. 
The penalties are the 
same as hacking. 
(section 33) 
SEC. 33. Penalties.
14. All existing laws such 
as the Consumer Act of the 
Philippines also applies to 
e-commerce transactions. 
(section 33 
SEC. 33. Penalties.
E-commerce Law in the Philippines
RHODORA 
RELATA 
PREPARED 
BY 
ALITA D. 
FUASO 
MAY FUTO 
NANCY 
BALMES
http://www.techterms.com/definition/ecommerce 
https://www.youtube.com/watch?v=AhgtoQIfuQ4 
http://www.fotosearch.com/BCD112/wdwo07/ 
http://digitalfilipino.com/salient-features-of-republic-act- 
8792-the-e-commerce-law/ 
REFERENCES: 
http://thehackernews.com/2014/05/anonymous-philippines- 
hacks-hundreds-of.html 
http://www.chanrobles.com/philippinecommercelaw.ht 
m#.U_XQ-vmSxBk

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E-commerce Law in the Philippines

  • 1. E-COMMERCE LAW IN THE PHILIPPINES
  • 3. What is E-Commerce?  E-commerce (electronic-commerce) refers to business over the Internet. Web sites such as Amazon.com, Buy.com, and eBay are all e-commerce sites.
  • 4. Business-to-Consumer (B2C) Business-to-Consumer (B2C) Business-to-Consumer (B2C)  business transactions between companies, business-to-consumer models are those that sell products or services directly to personal-use customers  connects, communicates and conducts business transactions with consumers most often via the Internet  larger than just online retailing; it includes online banking, travel services, online auctions, and health and real estate sites. http://smallbusiness.chron.com/explain-business-consumer-model-2258.html
  • 5. Business-to-Business (B2B)  A type of commerce transaction that exists between businesses, such as those involving a manufacturer and wholesaler, or a wholesaler and a retailer  conducted between companies, rather than between a company and individual consumers http://www.investopedia.com/terms/b/btob.asp
  • 6. REPUBLIC ACT NO. 8792 OF PHILIPPINES ELECTRONIC COMMERCE ACT OF 2000 by the Senate and House of Representatives of the Republic of the Philippines An act providing for the recognition and use of electronic commercial and non-commercial transactions and documents, penalties for unlawful use thereof and for other purposes .
  • 7. Definition in General Electronic Commerce is defined as the process of buying and selling goods electronically by consumers and from company to company through computerized business transactions. The Organization for Electronic Cooperation and Development defines it as commercial transactions based on electronic transmission of data over communication networks such as the Internet. Although the definition of electronic commerce is strictly confined to commercial undertakings, RA8792 is made applicable to both
  • 8. Objectives  provide a secure legal framework and environment for electronic commerce.  protect the integrity of electronic documents and electronic signatures as well as its transmission and communication so as to build and ensure the trust and reliance of the public on electronic transactions.
  • 9. Authors Sen. Ramon Magsaysay Jr., Reps. Leandro Verceles,Jr. and Marcial Punzalan, Jr. Co-Authors of the Act who filed electronic commerce bills were Sen. Juan Flavier, and Blas Ople and Reps. Harry Angping, Roilo Golez and Dante Liban. Other co-authors include Sen. Vicente Sotto III, Franklin Drilon, Fran-cisco Tatad, Raul Roco, Aquilino Pimentel Jr., Miriam Defesor-Santiago and Reps. HerminioTeves, Magtanggol Guinigundo, Rolando Sarmiento, Orlando Fua, JoeySalceda, Oscar Moreno, and Ignacio Bunye.
  • 11. a. “Addressee”  a person who is intended by the originator to receive the electronic data message or electronic document. b. “Computer”  any device or apparatus which, by electronic, electro-mechanical or magnetic impulse, or by other means is capable of receiving, recording, transmitting, storing, processing, retrieving, or producing information, data, figures, symbols or other modes of written expression according to mathematical and logical rules or of performing any one or more of those functions. c. “Electronic Data Message”  information generated, sent, received or stored by electronic, optical or similar means.
  • 12. d.“Information and Communication System”  a system intended for and capable of generating, sending, receiving, storing or otherwise processing electronic data messages or electronic documents and includes the computer system or other similar device by or in which data is recorded or stored and any procedures related to the recording or storage of electronic data message or electronic document.
  • 13. e. “Electronic Signature”  any distinctive mark, characteristic and/or sound in electronic form, representing the identity of a person and attached to or logically associated with the electronic data message or electronic document or any methodology or procedures employed or adopted by a person and executed or adopted by such person with the intention of authenticating or approving an electronic data message or electronic document.
  • 14. f. “Electronic Document”  information or the representation of information, data, figures, symbols or other modes of written expression, described or however represented, by which a right is established or an obligation extinguished, or by which a fact may be proved and affirmed, which is received, recorded, transmitted, stored, processed, retrieved or produced electronically. g. “Electronic Key”  a secret code which secures and defends sensitive information that crosses over public channels into a form decipherable only with a matching electronic key.
  • 15. h. “Intermediary”  a person who in behalf of another person and with respect to a particular electronic document sends, receives and/or stores or provides other services in respect of that electronic document. i. “Originator”  a person by whom, or on whose behalf, the electronic document purports to have been created, generated and/or sent . The term does not include a person acting as an intermediary with respect to that electronic document.
  • 16. j. “Service Provider”  a provider of : (i) On-line services or network access, or the operator of facilities therefore, including entities offering the transmission, routing, or providing of connections for online communications, digital or otherwise, between or among points specified by a user, of electronic documents of the user’s choosing; or (ii) The necessary technical means by which electronic documents of an originator may be stored and made accessible to a designated or undesignated third party; Such service providers shall have no authority to modify or alter the content of the electronic data message or electronic document received or to make any entry therein on behalf of the originator, addressee or any third party unless specifically authorized to do so, and who shall retain the electronic document in accordance with the specific request or as necessary for the purpose of performing the services it was engaged to perform.
  • 17. Salient Features of Republic Act 8792
  • 18. 1. It gives legal recognition of electronic data messages, electronic documents, and electronic signatures. (section 6 to 13) Sec. 6. Legal Recognition of Data Messages. SEC. 13. Retention of Electronic Data Message and Electronic Document. Section 7. Legal Recognition of Electronic documents Section 8. Legal Recognition of Electronic Signatures Section 9. Presumption Relating to Electronic Signatures Section 10. Original Documents. Section 11. Authentication of Electronic Data Messages and Electronic Documents Section 12. Admissibility and Evidential Weight of Electronic Data Message or electronic document.
  • 19. 2. Allows the formation of contracts in electronic form. (section 16) SEC. 16. Formation and Validity of Electronic Contracts. 3. Makes banking transactions done through ATM switching networks absolute once consummated. (section 16)
  • 20. 4. Parties are given the right to choose the type and level of security methods that suit their needs. (section 24) SEC. 24. Choice of Security Methods.
  • 21. 5. Provides the mandate for the electronic implementation of transport documents to facilitate carriage of goods. This includes documents such as, but not limited to, multi-modal, airport, road, rail, inland waterway, courier, post receipts, transport documents issued by freight forwarders, marine/ocean bill of lading, non-negotiable seaway bill, charter party bill of lading. (section 25 and 26) SEC. 25. Actions Related to Contracts of Carriage of Goods. SEC. 26. Transport Documents.
  • 22. 6. Mandates the government to have the capability to do e-commerce within 2 years or before June 19, 2002. (section 27) SEC. 27. Government Use of Electronic Data Messages, Electronic Documents and Electronic Signatures.
  • 23. 7. Mandates RPWeb to be implemented. RPWeb is a strategy that intends to connect all government offices to the Internet and provide universal access to the general public. The Department of Transportation and Communications, National Telecommunications Commission, and National Computer Center will come up with policies and rules that shall lead to substantial reduction of costs of telecommunication and Internet facilities to ensure the implementation of RPWeb. (section 28) SEC. 28. RPWEB To Promote the Use Of Electronic Documents and Electronic Data Messages In Government and to the General Public.
  • 24. 8. Made cable, broadcast, and wireless physical infrastructure within the activity of telecommunications. (section 28) SEC. 28. RPWEB To Promote the Use Of Electronic Documents and Electronic Data Messages In Government and to the General Public.
  • 25. 9. Empowers the Department of Trade and Industry to supervise the development of e-commerce in the country. It can also come up with policies and regulations, when needed, to facilitate the growth of e-commerce. (section 29) SEC. 29. Authority of the Department of Trade and Industry and Participating Entities.
  • 26. 10. Provided guidelines as to when a service provider can be liable. (section 30) SEC. 30. Extent of Liability of a Service Provider.
  • 27. 11. Authorities and parties with the legal right can only gain access to electronic documents, electronic data messages, and electronic signatures. For confidentiality purposes, it shall not share or convey to any other person. SEC. 31. Lawful Access. (section 31 and 32) SEC. 32. Obligation of Confidentiality.
  • 28. 12. Hacking or cracking, refers to unauthorized access including the introduction of computer viruses, is punishable by a fine from 100 thousand to maximum commensurating to the damage. With imprisonment from 6 months to 3 years. (section 33) SEC. 33. Penalties.
  • 29. 13. Piracy through the use of telecommunication networks, such as the Internet, that infringes intellectual property rights is punishable. The penalties are the same as hacking. (section 33) SEC. 33. Penalties.
  • 30. 14. All existing laws such as the Consumer Act of the Philippines also applies to e-commerce transactions. (section 33 SEC. 33. Penalties.
  • 32. RHODORA RELATA PREPARED BY ALITA D. FUASO MAY FUTO NANCY BALMES
  • 33. http://www.techterms.com/definition/ecommerce https://www.youtube.com/watch?v=AhgtoQIfuQ4 http://www.fotosearch.com/BCD112/wdwo07/ http://digitalfilipino.com/salient-features-of-republic-act- 8792-the-e-commerce-law/ REFERENCES: http://thehackernews.com/2014/05/anonymous-philippines- hacks-hundreds-of.html http://www.chanrobles.com/philippinecommercelaw.ht m#.U_XQ-vmSxBk