E- COMMERCE ACT

REPUBLIC ACT NO. 8792

“ AN ACT PROVIDING FOR THE RECOGNITION AND USE OF ELECTRONIC COMMERCIAL AND NON-COMMERCIAL TRANSACTIONS AND
DOCUMENTS, PENALTUES FOR UNLAWFUL USE THEREOF, AND OTHER PURPOSES.
any procedures related to the recording or
storage of electronic data message or
Objective: E-commerce Act aims: Definition of Terms:
electronic document.
1. Facilitate domestic and Addressee - a person who is intended by
Originator - a person by whom, or on whose
international dealings, the originator to receive the electronic data
behalf, the electronic document purports to
transactions, arrangements, message or electronic document, but does
have been created, generated and/or sent.
agreements, contracts and not include a person acting as an
The term does not include a person acting as
exchanges and storage of intermediary with respect to that electronic
an intermediary with respect to that
information through the utilization data message or electronic document.
electronic document.
of electronic, optical & similar
Computer - any device or apparatus singly
medium, mode, instrumentality & Intermediary - a person who on behalf of
or interconnected which, by electronic,
technology; another person and with respect to a
electro-mechanical, optical and/or
2. Recognize the authenticity and particular electronic data message or
magnetic impulse, or other means with the
reliability of electronic data electronic document sends, receives
same function, can receive, record, transmit,
messages or electronic documents and/or stores or provides other services in
store, process, correlate, analyze, project,
related to such activities; and respect of that electronic data message or
retrieve and/or produce information, data,
3. Promote the universal use of electronic document.
text, graphics, figures, voice, video, symbols
electronic transactions in the
or other modes of expression or perform any Service provider – a provider of:
government and by the general
one or more of these functions.
public. i. Online services or network
Electronic data message - information access, or the operator of
Sphere of Application: This Act shall apply
generated, sent, received or stored by facilities therefor, including
to any kind of electronic data message and
electronic, optical or similar means. entities offering the
electronic document used in the context of
transmission, routing, or
commercial and non-commercial activities Information and Communication System
providing of connections for
to include domestic and international - a system for generating, sending,
online communications, digital
dealings, transactions, arrangements, receiving, storing or otherwise processing
or otherwise, between or among
agreements, contracts and exchanges and electronic documents and includes the
points specified by a user, of
storage of information. computer system or other similar device by
or in which data is recorded or stored and

BY: EG CACHAPERO
 E- COMMERCE ACT
REPUBLIC ACT NO. 8792
“ AN ACT PROVIDING FOR THE RECOGNITION AND USE OF ELECTRONIC COMMERCIAL AND NON-COMMERCIAL TRANSACTIONS AND
DOCUMENTS, PENALTUES FOR UNLAWFUL USE THEREOF, AND OTHER PURPOSES.
electronic documents of the the electronic data message or electronic validity or enforceability solely on the
user’s choosing; or document or any methodology or ground that it is in the form of an electronic
ii. The necessary technical means procedures employed or adopted by a data message purporting to give rise to such
by which electronic documents person and executed or adopted by such legal effect, or that it is merely incorporated
of an originator may be stored person with the intention of authenticating or by reference in that electronic data message.
and made accessible to a approving an electronic data message or
Legal Recognition of Electronic
designated or undesignated third electronic document.
Documents: Electronic documents shall
party.
Electronic key - a secret code which have the legal effect, validity or
Such providers shall: secures and defends sensitive enforceability as any other document or
information that crosses over public legal writing, and:
a. Have no authority to:
channels into a form decipherable only with
i. Modify or alter the content a. Where the law requires a document
a matching electronic key.
of the electronic document to be in writing, that requirement is
received or Electronic document - information or the met by an electronic document if
ii. make any entry therein on representation of information, data, figures, the said electronic document
behalf of the originator, symbols or other modes of written maintains its integrity and
addressee or any third party expression, described or however reliability and can be
unless specifically represented, by which a right is established authenticated so as to be usable for
authorized to do so or an obligation extinguished, or by which subsequent reference, in that:
iii. Retain the electronic a fact may be proved and affirmed, which 1. The electronic document has
document in accordance is received, recorded, transmitted, stored, remained complete and
with the specific request or processed, retrieved or produced unaltered, apart from the
as necessary for the purpose electronically. addition of any endorsement and
of performing the services it any authorized change, or any
LEGAL RECOGNITION OF ELECTRONIC
was engaged to perform. change which arises in the
DATA MESSAGES AND ELECTRONIC
normal course of
Electronic signature - any distinctive mark, DOCUMENTS
communication, storage and
characteristic and/or sound in electronic
Legal Recognition of Electronic Data display; and
form, representing the identity of a person
Message: Information shall not be denied
and attached to or logically associated with

BY: EG CACHAPERO
 E- COMMERCE ACT
REPUBLIC ACT NO. 8792
“ AN ACT PROVIDING FOR THE RECOGNITION AND USE OF ELECTRONIC COMMERCIAL AND NON-COMMERCIAL TRANSACTIONS AND
DOCUMENTS, PENALTUES FOR UNLAWFUL USE THEREOF, AND OTHER PURPOSES.
2. The electronic document is For evidentiary purposes, an electronic ii. Said method is reliable and
reliable in the light of the document shall be the functional appropriate for the purpose for
purpose for which it was equivalent of a written document under which the electronic document
generated and in the light of all existing laws. was generated or
relevant circumstances. communicated, in the light of all
This Act does not modify any statutory rule
b. Paragraph (a) applies whether the circumstances, including any
relating to the admissibility of electronic
requirement therein is in the form of relevant agreement;
data messages or electronic documents,
an obligation or whether the law iii. It is necessary for the party
except the rules relating to authentication
simply provides consequences for sought to be bound, in order to
and best evidence.
the document not being presented proceed further with the
or retained in its original form. Legal Recognition of Electronic transaction, to have executed or
c. Where the law requires that a Signatures: An electronic signature on the provided the electronic
document be presented or retained electronic document shall be equivalent to signature; and
in its original form, that requirement the signature of a person on a written iv. The other party is authorized
is met by an electronic document document if: and enabled to verify the
if: electronic signature and to
1. There exist a reliable assurance as A. the signature is an electronic make the decision to proceed
to the integrity of the document from signature and with the transaction
the time when it was first generated B. proved by showing that a authenticated by the same.
in its final form; and prescribed procedure, not alterable
by the parties interested in the PRESUMPTION RELATING TO
2. That document is capable of being
electronic document, existed under ELECTRONIC SIGNATURES
displayed to the person to whom it is
to be presented: Provided, That no which:
In any proceedings involving an
provision of this Act shall apply to i. A method is used to identify the
electronic signature, it shall be
vary any and all requirements of party sought to be bound and to
presumed that:
existing laws on formalities required indicate said party’s access to
in the execution of documents for the electronic document a. electronic signature is the
their validity. necessary for his consent or signature of the person to whom it
approval through the electronic correlates; and
signature;

BY: EG CACHAPERO
 E- COMMERCE ACT
REPUBLIC ACT NO. 8792
“ AN ACT PROVIDING FOR THE RECOGNITION AND USE OF ELECTRONIC COMMERCIAL AND NON-COMMERCIAL TRANSACTIONS AND
DOCUMENTS, PENALTUES FOR UNLAWFUL USE THEREOF, AND OTHER PURPOSES.
b. electronic signature was affixed by 2. Paragraph (1) applies whether the by demonstrating, substantiating and
that person with the intention of requirement therein is in the form of an validating a claimed identity of a user,
signing or approving the electronic obligation or whether the law simply device, or another entity in an information or
document unless the person relying provides consequences for the communication system, among other ways,
on the electronically signed information not being presented or as follows:
electronic document knows or has retained in its original form.
a. The electronic signature shall be
notice of defects in or unreliability 3. For the purposes of subparagraph (a) of
authenticated by proof that a letter,
of the signature or reliance on the paragraph (1):
character, number or other symbol in
electronic signature is not a. the criteria for assessing integrity
electronic form representing the
reasonable under the shall be whether the information has
persons named in and attached to or
circumstances. remained complete and unaltered,
logically associated with an
apart from the addition of any
ORIGINAL DOCUMENTS electronic data message, electronic
endorsement and any change which
document, or that the appropriate
1. Where the law requires information to arises in the normal course of
methodology or security procedures,
be presented or retained in its original communication, storage and
when applicable, were employed or
form, that requirement is met by an display; and
adopted by a person and executed or
electronic data message or electronic b. the standard of reliability required
adopted by such person, with the
document if: shall be assessed in the light of the
intention of authenticating or
a. the integrity of the information from the purpose for which the information
approving an electronic data
time when it was first generated in its was generated and in the light of all
message or electronic document;
final form, as an electronic data the relevant circumstances.
b. The electronic data message or
message or electronic document is
AUTHENTICATION OF ELECTRONIC DATA electronic document shall be
shown by evidence aliunde or
MESSAGES AND ELECTRONIC authenticated by proof that an
otherwise; and
DOCUMENTS appropriate security procedure,
b. where it is required that information be
when applicable was adopted and
presented, that the information is Until the Supreme Court by appropriate rules
employed for the purpose of verifying
capable of being displayed to the shall have so provided, electronic
the originator of an electronic data
person to whom it is to be presented. documents, electronic data messages and
message or electronic document, or
electronic signatures, shall be authenticated
detecting error or alteration in the

BY: EG CACHAPERO
 E- COMMERCE ACT
REPUBLIC ACT NO. 8792
“ AN ACT PROVIDING FOR THE RECOGNITION AND USE OF ELECTRONIC COMMERCIAL AND NON-COMMERCIAL TRANSACTIONS AND
DOCUMENTS, PENALTUES FOR UNLAWFUL USE THEREOF, AND OTHER PURPOSES.
communication, content or storage evidence to the contrary, the integrity of the ADMISSIBILITY AND EVIDENTIAL WEIGHT
of an electronic document or information and communication system in OF ELECTRONIC DATA MESSAGES OR
electronic data message from a which an electronic data message or ELECTRONIC DOCUMENTS
specific point, which, using electronic document is recorded or stored
In any legal proceedings, nothing in the
algorithm or codes, identifying words may be established in any legal proceeding:
application of the rules on evidence shall
or numbers, encryptions, answers
a. By evidence that at all material times deny the admissibility of an electronic data
back or acknowledgment
the information and communication message or electronic document in
procedures, or similar security
system or other similar device was evidence:
devices.
operating in a manner that did not
a. On the sole ground that it is in
The Supreme Court may adopt such other affect the integrity of the electronic
electronic form; or
authentication procedures, including the data message or electronic
b. On the ground that it is not in the
use of electronic notarization systems as document, and there are no other
standard written form, and the
necessary and advisable, as well as the reasonable grounds to doubt the
electronic data message or
certificate of authentication on printed or integrity of the information and
electronic document meeting, and
hard copies of the electronic documents or communication system;
complying with the requirements
electronic data messages by electronic b. By showing that the electronic data
under Sections 6 or 7 hereof shall be
notaries, service providers and other duly message or electronic document
the best evidence of the agreement
recognized or appointed certification was recorded or stored by a party to
and transaction contained therein.
authorities. the proceedings who is adverse in
interest to the party using it; or In assessing the evidential weight of an
Burden of Proof: The person seeking to
c. By showing that the electronic data electronic data message or electronic
introduce an electronic data message or
message or electronic document document:
electronic document in any legal proceeding
was recorded or stored in the usual
has the burden of proving its authenticity by a. reliability of the manner in which it
and ordinary course of business by a
evidence capable of supporting a finding that was generated, stored or
person who is not a party to the
the electronic data message or electronic communicated
proceedings and who did not act
document is what the person claims it to be. b. reliability of the manner in which its
under the control of the party using
the record. originator was identified
Integrity of the Information &
c. other relevant factor
Communication System: In the absence of

BY: EG CACHAPERO
 E- COMMERCE ACT
REPUBLIC ACT NO. 8792
“ AN ACT PROVIDING FOR THE RECOGNITION AND USE OF ELECTRONIC COMMERCIAL AND NON-COMMERCIAL TRANSACTIONS AND
DOCUMENTS, PENALTUES FOR UNLAWFUL USE THEREOF, AND OTHER PURPOSES.
Retention of Electronic Data Message or subparagraphs (i), (ii) and (iii) of
Electronic Document: Notwithstanding any paragraph (a) are met.
COMMUNICATION OF ELECTRONIC DATA
provision of law, rule or regulation to the
Proof by Affidavit: The matters referred on MESSAGES OR ELECTRONIC DOCUMENTS
contrary:
admissibility and on the presumption of
Formation and Validity of Electronic
a. The requirement in any provision of integrity, may be presumed to have been
Contracts:
law that certain documents be established by an affidavit given to the best
retained in their original form is of the deponent’s knowledge subject to the 1. Except as otherwise agreed by the
satisfied by retaining them in the rights of parties in interest as defined in the parties, an offer, the acceptance of
form of an electronic data message cross-examination. an offer and such other elements
or electronic document which — required under existing laws for the
Cross-Examination:
i. Remains accessible so as to be formation of contracts may be
usable for subsequent reference; 1. A deponent of an affidavit referred to expressed in, demonstrated and
ii. Is retained in the format in which in Section 14 that has been proved by means of electronic data
it was generated, sent or introduced in evidence may be messages or electronic documents
received, or in a format which cross-examined as of right by a party and no contract shall be denied
can be demonstrated to to the proceedings who is adverse in validity or enforceability on the sole
accurately represent the interest to the party who has ground that it is in the form of an
electronic data message or introduced the affidavit or has electronic data message or
electronic document generated, caused the affidavit to be electronic document, or that any or
sent or received; introduced. all of the elements required under
iii. Enables the identification of its 2. Any party to the proceedings has the existing laws for the formation of the
originator and addressee, as well right to cross-examine a person who contracts is expressed,
as the determination of the date is not a party to the proceedings and demonstrated and proved by means
and the time it was sent or who did not act under the control of of electronic data messages or
received. the party using the record proving electronic documents.
b. The requirement referred to in that the electronic data message or 2. Electronic transactions made
paragraph (a) is satisfied by using the electronic document was recorded through networking among banks, or
services of a third party, provided or stored in the usual and ordinary linkages thereof with other entities or
that the conditions set forth in course of business. networks, and vice versa, shall be

BY: EG CACHAPERO
 E- COMMERCE ACT
REPUBLIC ACT NO. 8792
“ AN ACT PROVIDING FOR THE RECOGNITION AND USE OF ELECTRONIC COMMERCIAL AND NON-COMMERCIAL TRANSACTIONS AND
DOCUMENTS, PENALTUES FOR UNLAWFUL USE THEREOF, AND OTHER PURPOSES.
deemed consummated upon the 2. As between the originator and the relationship with the originator or
actual dispensing of cash or the addressee, an electronic data with any agent of the originator
debit of one account and the message or electronic document is enabled that person to gain
corresponding credit to another, deemed to be that of the originator if access to a method used by the
whether such transaction is initiated it was sent: originator to identify electronic
by the depositor or by an authorized a. by a person who had the authority to data messages or electronic
collecting party: Provided, That the act on behalf of the originator with documents as his own.
obligation of one bank, entity, or respect to that electronic data
person similarly situated to another message or electronic document; or Error on Electronic Data Message or
arising therefrom shall be b. by an information system Electronic Document. — The addressee is
considered absolute and shall not be programmed by, or on behalf of the entitled to regard the electronic data
subjected to the process of originator to operate automatically. message or electronic document received as
preference of credits. 3. As between the originator and the that which the originator intended to send,
addressee, an addressee is entitled and to act on that assumption, unless the
Recognition by Parties of Electronic Data
to regard an electronic data message addressee knew or should have known, had
Message or Electronic Document: As
or electronic document as being that the addressee exercised reasonable care or
between the originator and the addressee of
of the originator, and to act on that used the appropriate procedure:
an electronic data message or electronic
assumption, if:
document, a declaration of will or other a. That the transmission resulted in any
a. ) in order to ascertain whether the
statement shall not be denied legal effect, error therein or in the electronic data
electronic data message or
validity or enforceability solely on the ground message or electronic document
electronic document was that of the
that it is in the form of an electronic data when the electronic data message or
originator, the addressee properly
message or electronic document. electronic document enters the
applied a procedure previously
designated information system, or
Attribution of Electronic Data Message agreed to by the originator for that
b. That electronic data message or
purpose; or
1. An electronic data message or electronic document is sent to an
electronic document is that of the b. the electronic data message or information system which is not so
originator if it was sent by the electronic document as received designated by the addressee for the
originator himself. by the addressee resulted from purpose.
the actions of a person whose

BY: EG CACHAPERO
 E- COMMERCE ACT
REPUBLIC ACT NO. 8792
“ AN ACT PROVIDING FOR THE RECOGNITION AND USE OF ELECTRONIC COMMERCIAL AND NON-COMMERCIAL TRANSACTIONS AND
DOCUMENTS, PENALTUES FOR UNLAWFUL USE THEREOF, AND OTHER PURPOSES.
Agreement on Acknowledgment of 2. No statement as to addressee has designated an
Receipt of Electronic Data Messages or effect/significance – originator gave information system for the purpose
Electronic Documents: notice stating that no of receiving electronic data
acknowledgment has been received messages or electronic documents,
General rule: No acknowledgement of
and specifying a reasonable time by receipt occurs at the time when the
receipts is necessary.
which acknowledgment is to be electronic data message or
Exceptions: received, and no acknowledgment is electronic document enters the
received within such reasonable designated information system
1. If the parties agreed time. b. Upon retrieval by the addressee:
2. Originator requested in the EDM/ED i. There is designated
Time of Dispatch of Electronic Data
Modes of acknowledgment when required: information system, but the
Messages or Electronic Documents.
originator and the addressee
1. Agreement as to particular method – General rule: the dispatch of an electronic are both participants in the
to be followed data message or electronic document designated information
2. No agreement as to particular occurs when it enters an information system system;
method: outside the control of the originator or of the ii. The EDM/ED enters and
a. Any communication by the person who sent the electronic data information system of the
addressee message or electronic document on behalf addressee that is not
b. Any conduct of the addressee of the originator. designated information
sufficient to indicate the receipt system;
to the originator Exceptions: Unless otherwise agreed. c. Upon entry in the information
Instances when the originator can regard Time of Receipt of Electronic Data Messages system of the addressee- parties
non-receipt since there was no or Electronic Documents. - Unless otherwise did not designate an information
acknowledgment: agreed between the originator and the system.
addressee, the time of receipt of an Place of Dispatch and Receipt of Electronic
1. When the originator stated the effect electronic data message or electronic
or significance acknowledgment, or Data Message or Electronic
document is as follows: Documents: Unless otherwise agreed
the ED is CONDITIONAL upon
receipt. a. Upon entry in the designated between the originator and the addressee,
information system - If the

BY: EG CACHAPERO
 E- COMMERCE ACT
REPUBLIC ACT NO. 8792
“ AN ACT PROVIDING FOR THE RECOGNITION AND USE OF ELECTRONIC COMMERCIAL AND NON-COMMERCIAL TRANSACTIONS AND
DOCUMENTS, PENALTUES FOR UNLAWFUL USE THEREOF, AND OTHER PURPOSES.
an electronic data message or electronic agencies, parties to any electronic
document is deemed to be: transaction shall be free to:

A. dispatched at the place where the A. type and level of electronic data
originator has its place of business message or electronic document
B. received at the place where the security needed
addressee has its place of business. B. select and use or implement
appropriate technological methods
For the purpose hereof —
that suit their needs.
a. If the originator or the addressee has
more than one place of business, the
place of business is that which has
the closest relationship to the
underlying transaction or, where
there is no underlying transaction,
the principal place of business.
b. If the originator or the addressee
does not have a place of business,
reference is to be made to its
habitual residence; or
c. The “usual place of residence” in
relation to a body corporate, means
the place where it is incorporated or
otherwise legally constituted.

Choice of Security Methods. — Subject to

applicable laws and/or rules and guidelines
promulgated by the Department of Trade and
Industry with other appropriate government

BY: EG CACHAPERO