E-Commerce Act of 2000 (RA 8792) PDF

E-Commerce Group 3 Act of 2000 (RA 8792) Legal Framework for Digital Transactions in the Philippines Introduction The E-Commerce Act of 2000 (RA 8792), also known as the "Electronic Commerce Act," aims to facilitate domestic and international transactions through the use of electronic,...

E-Commerce Group 3 Act of 2000 (RA 8792) Legal Framework for Digital Transactions in the Philippines Introduction The E-Commerce Act of 2000 (RA 8792), also known as the "Electronic Commerce Act," aims to facilitate domestic and international transactions through the use of electronic, optical, and similar mediums. It recognizes the authenticity and reliability of electronic documents and promotes the universal use of electronic transactions in the government and general public  PART I : CHAPTER ELECTRONIC 1 COMMERCE IN GENERAL SEC. 4. SPHERE OF APPLICATION. This Act shall apply to any kind of data message and electronic document used in the context of commercial and non-commercial activities to include domestic and international dealings, transactions, arrangements, agreements, contracts and exchanges and storage of information. SEC. 5. DEFINITION OF TERMS. a) Addressee: The person intended to receive an electronic message or document, excluding intermediaries. b) Computer: Any device capable of handling information electronically or by other means. c) Electronic Data Message: Information generated, sent, or stored electronically. d) Information and Communication System: A system designed to process electronic data, including computers and related procedures. SEC. 5. DEFINITION OF TERMS. e) Electronic Signature: A mark or sound in electronic form that identifies and authenticates the sender of an electronic message. f) Electronic Document: A digital form of information that establishes rights, extinguishes obligations, or proves facts. g) Electronic Key: A secret code securing sensitive information transmitted over public channels. h) Intermediary: A person who sends, receives, or stores electronic documents on behalf of another. i) Originator: The person who creates or sends an electronic document, excluding intermediaries. j) Service Provider: A provider of online services or technical means for storing and transmitting electronic documents, without  CHAPTER II : LEGAL RECOGNITION OF ELECTRONIC WRITING OR DOCUMENT AND DATA MESSAGES  SEC. 6. LEGAL RECOGNITION OF DATA MESSAGES Information shall not be denied legal effect, validity or enforceability solely on the grounds that it is in the data message purporting to give rise to such legal effect, or that it is merely referred to in that electronic data message. SEC. 7. LEGAL RECOGNITION OF ELECTRONIC DOCUMENTS Electronic documents shall have the legal effect, validity or enforceability as any other document or legal writing SEC. 8. LEGAL RECOGNITION OF ELECTRONIC SIGNATURES An electronic signature on the electronic document shall be equivalent to the signature of a person on a written document if that signature is proved by showing that a prescribed procedure, not alterable by the parties interested in the electronic document SEC. 9. PRESUMPTION RELATING TO ELECTRONIC SIGNATURES In any proceeding involving an electronic signature, it shall be presumed that a) The electronic signature is the signature of the person to whom it correlates; and b) The electronic signature was affixed by that person with the intention of signing or approving the electronic document unless the person relying on the electronically signed 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. SEC. 10. ORIGINAL DOCUMENTS Where the law requires information to be presented or retained in its original form, that requirement is met by an electronic data message or electronic document SEC. 11. AUTHENTICATION OF ELECTRONIC DATA MESSAGES AND ELECTRONIC DOCUMENTS Until the Supreme Court by appropriate rules shall have so provided, electronic documents, electronic data messages and electronic signatures, shall be authenticated by demonstrating, substantiating and validating a claimed identity of a user, device, or another entity in an information or communication system, among other ways SEC. 12. ADMISSIBILITY AND EVIDENTIAL WEIGHT OF ELECTRONIC DATA MESSAGE AND ELECTRONIC DOCUMENTS In any legal proceedings, nothing in the application of the rules on evidence shall deny the admissibility of an electronic data message or electronic document in evidence SEC. 13. RETENTION OF ELECTRONIC DATA MESSAGE AND ELECTRONIC DOCUMENT Notwithstanding any provision of law, rule or regulation to the contrary (a) The requirement in any provision of law that certain documents be retained in their original form is satisfied by retaining them in the form of an electronic data message or electronic document which - i. Remains accessible so as to be usable for subsequent reference; ii. Is retained in the format in which it was generated, sent or received, or in a format which can be demonstrated to accurately represent the electronic data message or electronic document generated, sent or received; iii. Enables the identification of its originator and addressee, as well as the determination of the date and the time it was sent or received. (b) The requirement referred to in paragraph (a) is satisfied by using the services of a third party, provided that the conditions set forth in subparagraphs (i), (ii) and (iii) of paragraph (a) are met. SEC. 14. PROOF BY AFFIDAVIT The matters referred to in Section 12, on admissibility and Section 9, on the presumption of integrity, may be presumed to have been established by an affidavit given to the best of the deponent's knowledge subject to the rights of parties in interest as defined in the following section. SEC. 15. CROSS-EXAMINATION A deponent of an affidavit referred to in Section 14 that has been introduced in evidence may be cross-examined as of right by a party to the proceedings who is adverse in interest to the party who has introduced the affidavit or has caused the affidavit to be introduced. (2) Any party to the proceedings has the right to cross-examine a person referred to in Section 11, paragraph 4, sub- paragraph c. CHAPTER III : COMMUNICATION OF ELECTRONIC DATA MESSAGES AND ELECTRONIC DOCUMENTS SEC. 16. FORMATION AND VALIDITY OF ELECTRONIC CONTRACTS(1) Except as otherwise agreed by the parties, an offer, the acceptance of an offer and such other elements required under existing laws for the formation of contracts may be expressed in, demonstrated and proved by means of electronic data message or electronic documents and no contract shall be denied validity or enforceability on the sole ground that it is in the form of an electronic data message or electronic document, or that any or all of the elements required under existing laws for the formation of the contracts is expressed, demonstrated and proved by means of electronic documents. (2) Electronic transactions made through networking among banks, or linkages thereof with other entities or networks, and vice versa, shall be deemed consummated upon the actual dispensing of cash or the debit of one account and the corresponding credit to another, whether such transaction is initiated by the depositor or by an authorized collecting party: Provided, that the obligation of one bank, entity, or person similarly situated to another arising therefrom shall be considered absolute and shall not be subjected to the process of preference of credits. SEC. 17. RECOGNITION BY PARTIES OF ELECTRONIC DATA MESSAGE OR ELECTRONIC DOCUMENT As between the originator and the addressee of an electronic data message or electronic 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. SEC. 18. ATTRIBUTION OF ELECTRONIC DATA SEC. 19. ERROR ON ELECTRONIC DATA MESSAGE OR ELECTRONIC DOCUMENT The addressee is entitled to regard the electronic data message or electronic document received as that which the originator intended to send, and to act on that assumption, unless the addressee knew or should have known, had the addressee exercised reasonable care or used the appropriate procedure SEC. 20. AGREEMENT ON ACKNOWLEDGMENT OF RECEIPT OF ELECTRONIC DATA MESSAGES OR ELECTRONIC DOCUMENTS The following rules shall apply where, on or before sending an electronic data message or electronic document, the originator and the addressee have agreed, or in that electronic document or electronic data message, the originator has requested, that receipt of the electronic document or electronic data message be acknowledged SEC. 21. TIME OF DISPATCH OF ELECTRONIC DATA MESSAGES OR ELECTRONIC DOCUMENTS Unless otherwise agreed between the originator and the addressee, the dispatch of an electronic data message or electronic document occurs when it enters an information system outside the control of the originator or of the person who sent the electronic data message or electronic document on behalf of the originator. SEC. 22. TIME OF RECEIPT OF ELECTRONIC DATA MESSAGES OR ELECTRONIC DOCUMENTS Unless otherwise agreed between the originator and the addressee, the time of receipt of an electronic data message or electronic document SEC. 23. PLACE OF DISPATCH AND RECEIPT OF ELECTRONIC DATA MESSAGES OR ELECTRONIC DOCUMENTS Unless otherwise agreed between the originator and the addressee, an electronic data message or electronic document is deemed to be 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. This rule shall apply even if the originator or addressee had used a laptop or other portable device to transmit or receive his electronic data message or electronic document. This rule shall also apply to determine the tax situs of such transaction. SEC. 24. 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 agencies, parties to any electronic transaction shall be free to determine the type and level of electronic data message and electronic document security needed, and to select and use or implement appropriate technological methods that suit their needs. PA  ELECTRONIC COMMERCE IN SPECIFIC AREAS SEC. 25. ACTIONS RELATED TO CONTRACTS OF CARRIAGE OF GOODS Without derogating from the provisions of part two of this law, this chapter applies to any action in connection with, or in pursuance of, a contract of carriage of goods SEC. 26. TRANSPORT Actions that require writing or paper documents can DOCUMENTS be fulfi lled using electronic data messages or electronic documents. This applies regardless of whether the law mandates the action or simply assigns consequences for failing to use a paper document. If a right or obligation must be transferred to one person using a paper document, this can be done electronically, provided the message is unique.  ELECTRONIC COMMERCE IN SPECIFIC AREAS CONTINUATION OF SEC. 26. TRANSPORT DOCUMENTS The reliability of electronic transfers must be evaluated based on the purpose and circumstances, including relevant agreements. Paper documents cannot replace electronic messages unless electronic use is offi cially terminated, and such termination must be stated. The switch does not aff ect the parties' rights or obligations. Legal rules applicable to contracts involving paper documents also apply to those involving electronic documents.  ELECTRONIC TRANSACTIONS IN GOVERNMENT SEC. 27. GOVERNMENT USE OF ELECTRONIC DATA MESSAGES, ELECTRONIC DOCUMENTS AND ELECTRONIC SIGNATURES Notwithstanding any law to the contrary, within two (2) years from the date of the eff ectivity of this Act, all departments, bureaus, offi ces and agencies of the government, as well as all government? owned and-controlled corporations, that pursuant to law require or accept the fi ling of documents, require that documents be created, or retained and/or submitted, issue permits, licenses or certifi cates of registration or approval, or provide for the method and manner of payment or settlement of fees and other obligations to the government SEC. 28. RPWEB TO PROMOTE THE USE OF ELECTRONIC DOCUMENTS AND ELECTRONIC DATA MESSAGES IN GOVERNMENT AND TO THE GENERAL Within PUBLIC two (2) years from the effectivity of this Act, there shall be installed an electronic online network in accordance with Administrative Order 332 and House of Representatives Resolution 890, otherwise known as RPWEB, to implement Part IV of this Act to facilitate the open, speedy and efficient electronic online transmission, conveyance and use of electronic data messages or electronic documents amongst all government departments, agencies, bureaus, offices down to the division level and to the regional and provincial offices as practicable as possible, government owned and controlled corporations, local government units, other public instrumentalities, universities, colleges and other schools, and universal access to the general public. SEC. 29. AUTHORITY OF THE DEPARTMENT OF TRADE AND INDUSTRY AND PARTICIPATING ENTITIES The Department of Trade and Industry (DTI) shall direct and supervise the promotion and development of electronic commerce in the country with relevant government agencies, without prejudice to the provisions of Republic Act. 7653 (Charter of Bangko Sentral ng Pilipinas) and Republic Act No. 337 (General Banking Act), as amended.  FINAL PROVISIONS SEC. 30. EXTENT OF LIABILITY OF A SERVICE PROVIDER Except as otherwise provided in this Section, no person or party shall be subject to any civil or criminal liability in respect to the electronic data message or electronic document for which the person or party acting as a service provider as defi ned in Section 5 merely provides access if such liability is founded SEC. 31. LAWFUL AccessACCESS to an electronic fi le, or an electronic signature of an electronic data message or electronic document shall only be authorized and enforced in favor of the individual or entity having a legal right to the possession or the use of the plaintext, electronic signature or fi le and solely for the authorized purposes. The electronic key for identity or integrity shall not be made available to any person or party without the consent of the individual or entity in lawful possession of that electronic key. SEC. 32. OBLIGATION OF CONFIDENTIALITY Except for the purposes authorized under this Act, any person who obtained access to any electronic key, electronic data message, or electronic document, book, register, correspondence, information, or other material pursuant to any powers conferred under this Act, shall not convey to or share the same with any other person. SEC. 33. PENALTIES a) Hacking/Cracking: Unauthorized access to or interference with computer systems to corrupt, steal, alter, or destroy data without the owner's consent. This includes spreading viruses. Penalties: a fine of at least ₱100,000 and imprisonment for 6 months to 3 years. b) Piracy: Unauthorized copying, distribution, or broadcasting of protected works (e.g., copyrighted material, electronic signatures) via networks like the internet. Penalties: a minimum fine of ₱100,000 and imprisonment for 6 months to 3 years. c) Consumer Law Violations: Violations of the Consumer Act (RA 7394) and similar laws through electronic transactions will carry the same penalties as specified in those laws. d) Other Violations: Other infractions of the act will also be penalized. SEC. 34. IMPLEMENTING RULES AND REGULATIONS The DTI, Department of Budget and Management and the Bangko Sentral ng Pilipinas are hereby empowered to enforce the provisions of this Act and issue implementing rules and regulations necessary, in coordination with the Department of Transportation and Communications, National Telecommunications Commission, National Computer Center, National Information Technology Council, Commission on Audit, other concerned agencies and the private sector, to implement this Act within sixty (60) days after its approval. SEC. 35. OVERSIGHT COMMITTEE There shall be a Congressional Oversight Committee composed of the Committees on Trade and Industry/Commerce, Science and Technology, Finance and Appropriations of both the Senate and House of Representatives, which shall meet at least every quarter of the first two years and every semester for the third year after the approval of this Act to oversee its implementation. The DTI, DBM, Bangko Sentral ng Pilipinas, and other government agencies as may be determined by the Congressional Committee shall provide a quarterly performance report of their actions taken in the implementation of this Act for the first three (3) years. SEC. 36. APPROPRIATIONS The amount necessary to carry out the provisions of Secs 27 and 28 of this Act shall be charged against any available funds and/or savings under the General Appropriations Act of 2000 in the first year of effectivity of this Act. Thereafter, the funds needed for the continued implementation shall be included in the annual General Appropriations Act SEC. 37. STATUTORY INTERPRETATION. Unless otherwise expressly provided for, the interpretation of this Act shall give due regard to its international origin and the need to promote uniformity in its application and the observance of good faith in international trade relations. The generally accepted principles of international law and convention on electronic commerce shall likewise be considered SEC. 38. VARIATION BY AGREEMENT As between parties involved in generating, sending, receiving, storing or otherwise processing electronic data message or electronic document, any provision of this Act may be varied by agreement between and among them. SEC. 39. RECIPROCITY All benefits, privileges, advantages or statutory rules established under this Act, including those involving practice of profession, shall be enjoyed only by parties whose country of origin grants the same benefits and privileges or advantages to Filipino citizens. SEC. 40. SEPARABILITY CLAUSE The provisions of this Act are hereby declared separable and in the event of any such provision is declared unconstitutional, the other provisions, which are not affected, shall remain in force and effect SEC. 41. REPEALING CLAUSE All other laws, decrees, rules and regulations or parts thereof which are inconsistent with the provisions of this Act are hereby repealed, amended or modified accordingly SEC. 42. EFFECTIVITY This Act shall take effect immediately after its publication in the Official Gazette or in at least two (2) national newspapers of general circulation Examples of E-Commerce Act of 2000 (RA 8792) PHISHING Investment Scams Fraudulently obtaining personal information Offering fake investment schemes online, (e.g., passwords, credit card details) via fake promising high returns with no actual profit. emails or websites. Online Payment Auction Scams Scammers take payments for non-existent Fraud Manipulating bids or selling fake items on products or services and disappear without auction platforms without delivering the delivering. goods. Fake Online Stores Setting up bogus websites to sell items that don’t exist or are counterfeit. THANK YOU!