RA 8792 - Electronic Commerce Act

Objective:
- Facilitate domestic and international dealings or transactions through utilization of
electronic , optical and similar medium, mode, instrumentality and technology,
- Recognize the authenticity and reliability of electronic data messages or electronic
documents related to such activities; and
- Promote the universal use of electronic transactions in the government and by the
general public.

Sphere of application:
- Any kind of electronic data message and document used in the context of commercial
and non-commercial activities to include domestic and international transactions.

Definition of Terms:
a. Computer - any device or apparatus singly or interconnected which, by electronic,
electro-mechanical, optical and/or magnetic impulse, or other means with the same
function, can receive, record, transmit, store, and/or process information, data, text,
graphics, voice, video or other modes of expression.
b. Originator - person by whom, or on whose behalf, the electronic document purports to
have been created, generated and/or sent. It does not include a person acting as
intermediary with respect to that electronic document.
c. Addressee - person who is intended by the originator to receive electronic data
messages or documents. It does not include a person acting as an intermediary with
respect to that electronic data message or document.
d. Intermediary - person who on behalf of another person and with respect to a particular
electronic document sends, receives and/or stores, provides other services in respect of
that electronic data message or document.
e. Service provider - provider of:
○ Online services or network access or the operator of facilities 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
○ Necessary technical term by which electronic documents of an originator may be
stored and made accessible to designated or undesignated 3rd party.
○ Such provider shall:
■ Have no authority to:
● Modify or alter the content of electronic documents received or
● To make an entry on behalf of the originator, addressee or any 3rd
party unless specifically authorized to do so,
■ 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.
f. Electronic data message - information generated, sent, received or stored by electronic,
optical or similar means.
 g. Electronic signature - any distinctive mark representing the identity of a person and
attached to or logically associated with the electronic data message or document
adopted by a person and executed by such person with the purpose of authenticating or
approving an electronic data message or document.
h. Electronic document - information or the representation of information or data, 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.

Legal Recognition of Electronic Data Messages

- Information shall not be denied validity or enforceability solely because it is in the form or
electronic data message purporting to give rise to such legal effect, or that it is merely
incorporated by reference in that electronic data message

Legal Recognition of Electronic Documents

- Shall have legal effect, validity or enforceability as any other document or legal writing,
and:
○ Where the law requires a document to be in writing, that requirement is met by an
electronic document if:
■ It maintains its integrity and reliability and
■ Can be authenticated so as usable for subsequent reference, in that:
● an electronic document remained complete and unaltered, apart
from addition of any endorsement and any authorized change, or
change which arises in the normal course of communication,
storage and display; and
● an electronic document is reliable in the light of the purpose for
which it was generated and in the light of all relevant
circumstances.
○ Paragraph (a) applies whether the requirement is in the form of an obligation or
whether the law simply provides consequences for the document not being
presented or retained in its original form.
○ Where the law requires that a document be presented or retained in its original
form, that requirement is met by an electronic document if:
■ There exists a reliable assurance as to the integrity of the document from
the time when it was first generated in its final form; and
■ That document is capable of being displayed to the person to whom it is
to be presented: Provided, that no provision of this act shall apply vary
any and all requirements of existing laws on formalities required in the
execution of documents for their validity.
- For evidentiary purposes, an electronic document is a functional equivalent of a written
document under existing laws.
- The act does not modify any statutory rule relating to admissibility of electronic data
messages or documents, except the rules relating to authentication and best evidence.
Legal Recognition of Electronic Signatures
- Shall be equivalent to the signature of a person on a written document if:
○ The signature is an electronic signature and
○ Proved by showing that a prescribed procedure, not alterable by the parties
interested in the electronic document, existes under which-
■ A method is used to identify the party sought to be bound;
■ Said method is reliable and appropriate for the purpose;
■ It is necessary for the party sought to be bound; and
■ The other party is authorized to verify the electronic signature.

Presumption Relating to Electronic Signatures

- In any proceedings involving an electronic signature, it shall be presumed that:
○ Electronic signature is the signature of the person to whom it correlates; and
○ Electronic signature was affixed by that person with the intention of signing or
approving the electronic document, unless:
■ The person relying on the electronically designed electronic document
knows or has notice of defects in or unreliability of the signature or
■ Reliance on the electronic signature is not reasonable under the
circumstances.
■ Rebuttable presumption - may be contradicted or overruled by other
evidence.

Authentication of Electronic Data Messages and Documents

Rule 5: Authentication of Electronic Documents
- Section 1: Burden of proving authenticity - a person seeking to introduce an electronic
document has the burden of proving its authenticity.
- Section 2: Manner of authentication - its authenticity must be proved by any of the
following:
○ By evidence that it had been digitally signed;
○ By evidence that other appropriate security procedures or devices as authorized
by Supreme Court or by law were applied to the document; or
○ By other evidence showing integrity and reliability to the satisfaction of the judge.
Rule 6: Electronic Signatures
- Section 2: Authentication of electronic signatures - may be authenticated in any of the
following manner:
○ Method or process was utilized to establish a digital signature and verify the
same;
○ By other means provided by law;
○ By any other means satisfactory to the judge

Admissibility and Evidential Weight of Electronic Data Messages and Documents

- Nothing in the application of the rules on evidence shall deny the admissibility of an
electronic data message or document in evidence:
● On the sole ground that it is in electronic form; or
 ● On the ground that it is not in the standard written form.

Recognition by Parties of Electronic Data Messages and Documents

- Between originator and addressee of an electronic data message or document, a
declaration of will or other statement shall not be denied legal effect, validity or
enforceability solely on the ground that it is in the form of an electronic data message or
document.

Attribution of Electronic Data Message

- Electronic data message or document is that of the originator:
○ If it was sent by the originator himself.
○ As between the originator and the addressee, an electronic data message or
document is deemed to be that of the originator if it was sent:
■ By a person who had the authority to act on behalf of the originator; or
■ By an information system programmed by, or on behalf of the originator to
operate automatically.
- As between the originator and addressee, an addressee is entitled to regard and
electronic data message or document as being that of the originator, and to act on that
assumption, if:
○ In order to ascertain whether the electronic data message or document was that
of the originator, the addressee properly applied a procedure previously agreed
to by the originator for that purpose; or
○ Electronic data message or document as received by the addressee resulted
from the actions of a person whose relationship with the originator or with any
agent of the originator enabled that person to gain access to a method used by
the originator to identify electronic data message or documents as his own.
○ Above rules does not apply:
■ As of the time when the addressee has both received notice from the
originator that the electronic data message or document is not that of the
originator, and has reasonable time to act accordingly; or
■ In a case within paragraph (2) sub-paragraph (b), at any time when
addressee knew or should have known, had it exercised reasonable care
or used any agreement procedure, that the electronic data message or
document was not that of the originator.
■ The transmission resulted in any error in the electronic data message or
document as received.
- Addressee is entitled to regard each electronic data message or document received as a
separate electronic data message or document and to act on that assumption. Except:
○ To the extent that it duplicates another electronic data message or document and
○ The addressee knew or should have known, had it exercised reasonable care or
used any agreed procedure, that the electronic data message or document was a
duplicate.
Acknowledgement of Receipt of Electronic Data Messages and Documents
- General rule: no acknowledgement of receipt is necessary.
- Exceptions:
○ Parties agrees
○ Originator requested in the electronic data messages and documents
- Modes of acknowledgement when required:
○ Agreement as to particular method
○ No agreement:
■ Any communication by the addressee
■ Any conduct of addressee sufficient to indicate the receipt to the
originator
- Instances when the originator can regard non-receipt since there was no
acknowledgement:
○ Originator stated the effect and significance of acknowledgement or electronic
document is conditional upon receipt
○ No statement as to effect/significance - originator gave notice stating that no
acknowledgement has been received and specifying a reasonable time by which
acknowledgement is to be received, and no acknowledgement is received within
such reasonable time.

Time of Dispatch of Electronic Data Messages and Documents

- General rule: dispatch occurs when it enters an information system outside the control of
the originator or the person who sent it.
- Exception: Unless otherwise agreed.

Time of Receipt of Electronic Data Messages and Documents

● Unless otherwise agreed, time of receipt is:
○ Upon entry in the designated information system
○ Upon retrieval by the addressee:
■ If both parties are both participants in the designated information system
■ If it is sent to an undesignated information system
○ Upon entry in the information system of addressee - parties did not designate the
information system.

Place of Dispatch and Receipt of Electronic Data Messages and Documents

- Unless otherwise agreed:
○ Dispatched at the place where the originator has its place of business and
○ Received at the place where the addressee has its place of business
- These rules shall apply even if either of the parties had used a laptop to transmit or
receive.
- This rule shall also apply to determine the tax situs of such transaction.
- If either party has more than one place of business, the place of business is that which
has the closest relationship to the underlying transaction, or the principal place of
business.
 - If there is no place of business, reference is to be made to its habitual residence; or
- The usual place of residence where it is incorporated or otherwise legally constituted.

Choice of Security Methods

- Parties to any electronic transaction shall be free:
○ To determine the type of level security needed, and
○ To select and use or implement appropriate technological methods that suit their
needs.

Actions Related to Contract of Carriage of Goods

- Applies to any action in connection with a contract of carriage of goods, including but not
limited to:
○ [a] Furnishing the marks, number, quantity or weight of goods;
○ Stating or declaring the nature or values of goods;
○ Issuing a receipt for goods;
○ Confirming that goods have been loaded;
○ [b] Notifying a person of terms and conditions of the contract;
○ Giving instructions to a carrier;
○ [c] claiming delivery of goods;
○ Authorizing release of goods;
○ Giving notice of loss of, or damage to goods;
○ [d] giving any other notice of statement in connection with the performance of the
contract;
○ [e] undertaking to deliver goods to a named person or a person authorized to
claim delivery;
○ [f] granting, acquiring, renouncing, surrendering, transferring or negotiating rights
in goods;
○ [g] acquiring or transferring rights and obligations under a contract.

Transport Documents
- When the law requires that a contract of carriage of goods be in writing, the requirement
is met if action is carried out by using one or more data messages or documents.
- Paragraph (1) applies whether requirement is in the form of obligation or whether law
simply provides consequences for failing to use a paper document.
- If a right is granted, or obligation is to be acquired by, and if the law requires that in order
to effect, the right must be conveyed to that person by the transfer, or use of, a paper
document, that requirement is met if the right or obligation conveyed by using one or
more electronic data message or document.
- Standard and reliability required shall be assessed in the light of the purpose and in the
light of all the circumstances.
- Whether one or more data messages are used to effect any action in subparagraphs f
and g of section 25, no paper document used to effect such action is valid unless use of
electronic data message or document is terminated and replaced by the use of paper
 documents. Paper documents shall contain a statement of such termination.
Replacement of electronics by paper does not affect the rights of parties involved.
- If rule of law is applicable to a contract of carriage of goods which is evidenced by a
paper document, rule shall not be inapplicable to such contract of carriage of goods
which is evidenced by one or more electronic documents.

Electronic Transactions in the Government

- Government Use of Electronic Data Messages, Documents and Signatures:
Notwithstanding any law to the contrary, within 2 years from the date of effectivity of the
Act, all departments, bureaus, offices and agencies of the government, as well as
government-owned and -controlled corporations, that pursuant to law require or accept
the filing of documents, require the documents be created, or retained and/or submitted,
issue permits, licenses or certificates of registration or approval, or provide for the
method and manner of payment of settlement of fees and other obligations to the
government, shall-
○ Accept the creation, filing or retention of such documents in the form of electronic
data message or documents;
○ Issue permits, licenses, or approval in the form of electronic data message or
documents;
○ Require and/or accept payments, and issue receipts for such payments, through
systems using electronic data message or documents;
○ Transact the government business and/or perform governmental functions using
electronic data message or documents, and for the purpose, are authorized to
adopt and promulgate, after appropriate public hearing and with due publication
in newspapers of general circulation, the appropriate rules and regulations, or
guidelines.

Description of Unlawful Acts and Penalties

- Hacking or crackling
○ Unauthorized access into or interference in a computer system/server or
information and communication system.
○ Any access in order to corrupt, alter, steal or destroy using a computer, without
knowledge and consent of the owner, which includes the introduction of computer
viruses and the like, resulting in the corruption and destruction of electronic data
messages or documents
■ Fine, 100,000 - damage incurred
■ Imprisonment, 6 months - 3 years
- Piracy
○ Unauthorized copying, reproduction or distribution of electronic signature or
copyrighted works including legally protected sound recording or phonograms or
information material on protected works, through the use of telecommunication
networks, such as, but not limited to, the internet, in a manner that infringes
intellectual property rights.
■ Fine, 100,000 - damage incurred
■ Imprisonment, 6 months - 3 years
- Violations of the Consumer Act of the Philippines RA 7394 and other relevant to
pertinent laws through transaction covered by or using electronic data messages or
documents
○ Penalties provided in those laws
● Other violations of the provisions of the E-Commerce Act
○ Fine, maximum of 100,000
○ Imprisonment, maximum of 6 years