E-commerce Law in the Philippines

E-COMMERCE LAW IN THE PHILIPPINES

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.

What is E-Commerce?

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,

c. “Electronic Data Message” information generated, sent,

received or stored by electronic, optical or similar means.

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.

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 documentsSection 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.

SEC. 16. Formation and Validity of Electronic Contracts.

2. Allows the formation of contracts in

electronic form. (section 16)

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 andElectronic 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 DataMessages 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 DataMessages 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. (section 31 and 32)

SEC. 31. Lawful Access.

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.

PREPARED BY

RHODORA

RELATA

ALITA D. FUASO

MAY FUTO

NANCY BALMES

http://www.fotosearch.com/BCD112/wdwo07/

http://www.techterms.com/definition/ecommerce

https://www.youtube.com/watch?v=AhgtoQIfuQ4

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.htm#.U_XQ-vmSxBk