REPUBLIC ACT NO.

8792 medium, mode, instrumentality and technology to

recognize the authenticity and reliability of
AN ACT PROVIDING FOR THE RECOGNITION electronic data messages or electronic documents
AND USE OF ELECTRONIC related to such activities and to promote the
COMMERCIAL AND NON-COMMERCIAL universal use of electronic transactions in the
TRANSACTIONS, PENALTIES government and by the general public.
FOR UNLAWFUL USE THEREOF, AND OTHER
PURPOSES SECTION 4(4). Sphere of Application. — This Act
shall apply to any kind of electronic data message
PART I and electronic document used in the context of
commercial and non-commercial activities to
Short Title and Declaration of Policy include domestic and international dealings,
transactions, arrangements, agreements, contracts
SECTION 1. Short Title. — This Act shall be known and exchanges and storage of information.
and cited as the “Electronic Commerce Act.”
SECTION 5(5). Definition of Terms. — For the
SECTION 2(2). Declaration of Policy. — The State purposes of this Act, the following terms are
recognizes the vital role of information and defined, as follows:
communications technology (ICT) in nation-
building; the need to create an information-friendly (a) “Addressee” refers to a person who is intended
environment which supports and ensures the by the originator to receive the electronic data
availability, diversity and affordability of ICT message or electronic document, but does not
products and services; the primary responsibility of include a person acting as an intermediary with
the private sector in contributing investments and respect to that electronic data message or
services in ICT; the need to develop, with electronic document.
appropriate training programs and institutional
policy changes, human resources for the (b) “Computer” refers to any device or apparatus
information age, a labor force skilled in the use of singly or interconnected which, by electronic,
ICT and a population capable of operating and electro-mechanical, optical and/or magnetic
utilizing electronic appliances and computers; its impulse, or other means with the same function,
obligation to facilitate the transfer and promotion of can receive, record, transmit, store, process,
technology; to ensure network security, connectivity correlate, analyze, project, retrieve and/or produce
and neutrality of technology for the national benefit; information, data, text, graphics, figures, voice,
and the need to marshal, organize and deploy video, symbols or other modes of expression or
national information infrastructures, comprising in perform any one or more of these functions.
both communications network and strategic
information services, including their interconnection (c) “Electronic data message” refers to information
to the global information networks, with the generated, sent, received or stored by electronic,
necessary and appropriate legal, financial, optical or similar means.
diplomatic and technical framework, systems and
facilities. (d) “Information and Communication System” refers
to a system for generating, sending, receiving,
PART II storing or otherwise processing electronic data
messages or electronic documents and includes
Electronic Commerce in General the computer system or other similar device by or in
which data is recorded or stored and any
CHAPTER I procedures related to the recording or storage of
electronic data message or electronic document.
General Provisions
(e) “Electronic signature” refers to any distinctive
SECTION 3(3). Objective. — This Act aims to mark, characteristic and/or sound in electronic
facilitate domestic and international dealings, form, representing the identity of a person and
transactions, arrangements, agreements, contracts attached to or logically associated with the
and exchanges and storage of information through electronic data message or electronic document or
the utilization of electronic, optical and similar any methodology or procedures employed or
adopted by a person and executed or adopted by
such person with the intention of authenticating or CHAPTER II
approving an electronic data message or electronic
document. Legal Recognition of Electronic Data Messages
and Electronic Documents
(f) “Electronic document” refers to information or
the representation of information, data, figures, SECTION 6(6). Legal Recognition of Electronic
symbols or other modes of written expression, Data Message. — Information shall not be denied
described or however represented, by which a right validity or enforceability solely on the ground that it
is established or an obligation extinguished, or by is in the form of an electronic data message
which a fact may be proved and affirmed, which is purporting to give rise to such legal effect, or that it
received, recorded, transmitted, stored, processed, is merely incorporated by reference in that
retrieved or produced electronically. electronic data message.

(g) “Electronic key” refers to a secret code which SECTION 7(7). Legal Recognition of Electronic
secures and defends sensitive information that Documents. — Electronic documents shall have the
crosses over public channels into a form legal effect, validity or enforceability as any other
decipherable only with a matching electronic key. document or legal writing, and —

(h) “Intermediary” refers to a person who in behalf (a) Where the law requires a document to be in
of another person and with respect to a particular writing, that requirement is met by an electronic
electronic data message or electronic document document if the said electronic document maintains
sends, receives and/or stores or provides other its integrity and reliability and can be authenticated
services in respect of that electronic data message so as to be usable for subsequent reference, in that
or electronic document. —

(i) “Originator” refers to a person by whom, or on (i) The electronic document has remained complete
whose behalf, the electronic document purports to and unaltered, apart from the addition of any
have been created, generated and/or sent. The endorsement and any authorized change, or any
term does not include a person acting as an change which arises in the normal course of
intermediary with respect to that electronic communication, storage and display; and
document.
(ii) The electronic document is reliable in the light of
(j) “Service provider” refers to a provider of — the purpose for which it was generated and in the
light of all relevant circumstances.
i) Online services or network access, or the
operator of facilities therefor, including entities (b) Paragraph (a) applies whether the requirement
offering the transmission, routing, or providing of therein is in the form of an obligation or whether the
connections for online communications, digital or law simply provides consequences for the
otherwise, between or among points specified by a document not being presented or retained in its
user, of electronic documents of the user’s original form.
choosing; or
(c) Where the law requires that a document be
ii) The necessary technical means by which presented or retained in its original form, that
electronic documents of an originator may be requirement is met by an electronic document if —
stored and made accessible to a designated or
undesignated third party. i) There exist a reliable assurance as to the integrity
of the document from the time when it was first
Such service providers shall have no authority to generated in its final form; and
modify or alter the content of the electronic
document received or to make any entry therein on ii) That document is capable of being displayed to
behalf of the originator, addressee or any third the person to whom it is to be
party unless specifically authorized to do so, and presented: Provided, That no provision of this Act
who shall retain the electronic document in shall apply to vary any and all requirements of
accordance with the specific request or as existing laws on formalities required in the
necessary for the purpose of performing the execution of documents for their validity.
services it was engaged to perform.
For evidentiary purposes, an electronic document or retained in its original form, that requirement is
shall be the functional equivalent of a written met by an electronic data message or electronic
document under existing laws. document if:

This Act does not modify any statutory rule relating (a) the integrity of the information from the time
to the admissibility of electronic data messages or when it was first generated in its final form, as an
electronic documents, except the rules relating to electronic data message or electronic document is
authentication and best evidence. shown by evidence aliunde or otherwise; and

SECTION 8(8). Legal Recognition of Electronic (b) where it is required that information be
Signatures. — An electronic signature on the presented, that the information is capable of being
electronic document shall be equivalent to the displayed to the person to whom it is to be
signature of a person on a written document if the presented.
signature is an electronic signature and proved by
showing that a prescribed procedure, not alterable (2) Paragraph (1) applies whether the requirement
by the parties interested in the electronic document, therein is in the form of an obligation or whether the
existed under which — law simply provides consequences for the
information not being presented or retained in its
a.) A method is used to identify the party sought to original form.
be bound and to indicate said party’s access to the
electronic document necessary for his consent or (3) For the purposes of subparagraph (a) of
approval through the electronic signature; paragraph (1):

b.) Said method is reliable and appropriate for the (a) the criteria for assessing integrity shall be
purpose for which the electronic document was whether the information has remained complete
generated or communicated, in the light of all and unaltered, apart from the addition of any
circumstances, including any relevant agreement; endorsement and any change which arises in the
normal course of communication, storage and
c.) It is necessary for the party sought to be bound, display; and
in order to proceed further with the transaction, to
have executed or provided the electronic signature; (b) the standard of reliability required shall be
and assessed in the light of the purpose for which the
information was generated and in the light of all the
d.) The other party is authorized and enabled to relevant circumstances.
verify the electronic signature and to make the
decision to proceed with the transaction SECTION 11(11). Authentication of Electronic Data
authenticated by the same. Messages and Electronic Documents. — Until the
Supreme Court by appropriate rules shall have so
SECTION 9(9). Presumption Relating to Electronic provided, electronic documents, electronic data
Signatures. — In any proceedings involving an messages and electronic signatures, shall be
electronic signature, it shall be presumed that, authenticated by demonstrating, substantiating and
validating a claimed identity of a user, device, or
a.) The electronic signature is the signature of the another entity in an information or communication
person to whom it correlates; and system, among other ways, as follows:

b.) The electronic signature was affixed by that (a) The electronic signature shall be authenticated
person with the intention of signing or approving the by proof that a letter, character, number or other
electronic document unless the person relying on symbol in electronic form representing the persons
the electronically signed electronic document named in and attached to or logically associated
knows or has notice of defects in or unreliability of with an electronic data message, electronic
the signature or reliance on the electronic signature document, or that the appropriate methodology or
is not reasonable under the circumstances. security procedures, when applicable, were
employed or adopted by a person and executed or
SECTION 10(10). Original Documents. — (1) adopted by such person, with the intention of
Where the law requires information to be presented authenticating or approving an electronic data
message or electronic document;
(b) The electronic data message or electronic SECTION 12(12). Admissibility and Evidential
document shall be authenticated by proof that an Weight of Electronic Data Messages or Electronic
appropriate security procedure, when applicable Documents. — In any legal proceedings, nothing in
was adopted and employed for the purpose of the application of the rules on evidence shall deny
verifying the originator of an electronic data the admissibility of an electronic data message or
message or electronic document, or detecting error electronic document in evidence —
or alteration in the communication, content or
storage of an electronic document or electronic a. On the sole ground that it is in electronic form; or
data message from a specific point, which, using
algorithm or codes, identifying words or numbers, b. On the ground that it is not in the standard
encryptions, answers back or acknowledgment written form, and the electronic data message or
procedures, or similar security devices. electronic document meeting, and complying with
the requirements under Sections 6 or 7 hereof shall
The Supreme Court may adopt such other be the best evidence of the agreement and
authentication procedures, including the use of transaction contained therein.
electronic notarization systems as necessary and
advisable, as well as the certificate of In assessing the evidential weight of an electronic
authentication on printed or hard copies of the data message or electronic document, the reliability
electronic documents or electronic data messages of the manner in which it was generated, stored or
by electronic notaries, service providers and other communicated, the reliability of the manner in
duly recognized or appointed certification which its originator was identified, and other
authorities. relevant factor shall be given due regard.

The person seeking to introduce an electronic data SECTION 13(13). Retention of Electronic Data
message or electronic document in any legal Message or Electronic Document. —
proceeding has the burden of proving its Notwithstanding any provision of law, rule or
authenticity by evidence capable of supporting a regulation to the contrary —
finding that the electronic data message or
electronic document is what the person claims it to (a) The requirement in any provision of law that
be. certain documents be retained in their original form
is satisfied by retaining them in the form of an
In the absence of evidence to the contrary, the electronic data message or electronic document
integrity of the information and communication which —
system in which an electronic data message or
electronic document is recorded or stored may be i. Remains accessible so as to be usable for
established in any legal proceeding — subsequent reference;

(a) By evidence that at all material times the ii. Is retained in the format in which it was
information and communication system or other generated, sent or received, or in a format which
similar device was operating in a manner that did can be demonstrated to accurately represent the
not affect the integrity of the electronic data electronic data message or electronic document
message or electronic document, and there are no generated, sent or received;
other reasonable grounds to doubt the integrity of
the information and communication system; iii. Enables the identification of its originator and
addressee, as well as the determination of the date
(b) By showing that the electronic data message or and the time it was sent or received.
electronic document was recorded or stored by a
party to the proceedings who is adverse in interest (b) The requirement referred to in paragraph (a) is
to the party using it; or satisfied by using the services of a third party,
provided that the conditions set forth in
(c) By showing that the electronic data message or subparagraphs (i), (ii) and (iii) of paragraph (a) are
electronic document was recorded or stored in the met.
usual and ordinary course of business by a person
who is not a party to the proceedings and who did SECTION 14(14). Proof by Affidavit. — The matters
not act under the control of the party using the referred to in Section 12, on admissibility and
record.
Section 9, on the presumption of integrity, may be electronic document, a declaration of will or other
presumed to have been established by an affidavit statement shall not be denied legal effect, validity
given to the best of the deponent’s knowledge or enforceability solely on the ground that it is in the
subject to the rights of parties in interest as defined form of an electronic data message or electronic
in the following section. document.

SECTION 15(15). Cross-Examination. — (1) A SECTION 18(18). Attribution of Electronic Data

deponent of an affidavit referred to in Section 14 Message. — (1) An electronic data message or
that has been introduced in evidence may be cross- electronic document is that of the originator if it was
examined as of right by a party to the proceedings sent by the originator himself.
who is adverse in interest to the party who has
introduced the affidavit or has caused the affidavit (2) As between the originator and the addressee,
to be introduced. an electronic data message or electronic document
is deemed to be that of the originator if it was sent:
(2) Any party to the proceedings has the right to
cross-examine a person referred to in Section 11, (a) by a person who had the authority to act on
paragraph 4, sub-paragraph c. behalf of the originator with respect to that
electronic data message or electronic document; or
CHAPTER III
(b) by an information system programmed by, or on
Communication of Electronic Data Messages or behalf of the originator to operate automatically.
Electronic Documents
(3) As between the originator and the addressee,
SECTION 16(16). Formation and Validity of an addressee is entitled to regard an electronic
Electronic Contracts. — (1) Except as otherwise data message or electronic document as being that
agreed by the parties, an offer, the acceptance of of the originator, and to act on that assumption, if:
an offer and such other elements required under
existing laws for the formation of contracts may be (a) in order to ascertain whether the electronic data
expressed in, demonstrated and proved by means message or electronic document was that of the
of electronic data messages or electronic originator, the addressee properly applied a
documents and no contract shall be denied validity procedure previously agreed to by the originator for
or enforceability on the sole ground that it is in the that purpose; or
form of an electronic data message or electronic
document, or that any or all of the elements (b) the electronic data message or electronic
required under existing laws for the formation of the document as received by the addressee resulted
contracts is expressed, demonstrated and proved from the actions of a person whose relationship
by means of electronic data messages or electronic with the originator or with any agent of the
documents. originator enabled that person to gain access to a
method used by the originator to identify electronic
(2) Electronic transactions made through data messages or electronic documents as his
networking among banks, or linkages thereof with own.
other entities or networks, and vice versa, shall be
deemed consummated upon the actual dispensing (4) Paragraph (3) does not apply:
of cash or the debit of one account and the
corresponding credit to another, whether such (a) as of the time when the addressee has both
transaction is initiated by the depositor or by an received notice from the originator that the
authorized collecting party: Provided, That the electronic data message or electronic document is
obligation of one bank, entity, or person similarly not that of the originator, and has reasonable time
situated to another arising therefrom shall be to act accordingly; or
considered absolute and shall not be subjected to
the process of preference of credits. (b) in a case within paragraph (3) sub-paragraph
(b), at any time when the addressee knew or
SECTION 17(17). Recognition by Parties of should have known, had it exercised reasonable
Electronic Data Message or Electronic care or used any agreed procedure, that the
Document. — As between the originator and the
addressee of an electronic data message or
electronic data message or electronic document document or electronic data message, the
was not that of the originator. originator has requested, that receipt of the
electronic document or electronic data message be
(5) Where an electronic data message or electronic acknowledged:
document is that of the originator or is deemed to
be that of the originator, or the addressee is entitled a.) Where the originator has not agreed with the
to act on that assumption, then, as between the addressee that the acknowledgment be given in a
originator and the addressee, the addressee is particular form or by a particular method, an
entitled to regard the electronic data message or acknowledgment may be given by or through any
electronic document as received as being what the communication by the addressee, automated or
originator intended to send, and to act on that otherwise, or any conduct of the addressee,
assumption. The addressee is not so entitled when sufficient to indicate to the originator that the
it knew or should have known, had it exercised electronic data message or electronic document
reasonable care or used any agreed procedure, has been received.
that the transmission resulted in any error in the
electronic data message or electronic document as b.) Where the originator has stated that the effect or
received. significance of the electronic data message or
electronic document is conditional on receipt of the
(6) The addressee is entitled to regard each acknowledgment thereof, the electronic data
electronic data message or electronic document message or electronic document is treated as
received as a separate electronic data message or though it has never been sent, until the
electronic document and to act on that assumption, acknowledgment is received.
except to the extent that it duplicates another
electronic data message or electronic document c.) Where the originator has not stated that the
and the addressee knew or should have known, effect or significance of the electronic data
had it exercised reasonable care or used any message or electronic document is conditional on
agreed procedure, that the electronic data message receipt of the acknowledgment, and the
or electronic document was a duplicate. acknowledgment has not been received by the
originator within the time specified or agreed or, if
SECTION 19(19). Error on Electronic Data no time has been specified or agreed, within a
Message or Electronic Document. — The reasonable time, the originator may give notice to
addressee is entitled to regard the electronic data the addressee stating that no acknowledgment has
message or electronic document received as that been received and specifying a reasonable time by
which the originator intended to send, and to act on which the acknowledgment must be received; and if
that assumption, unless the addressee knew or the acknowledgment is not received within the time
should have known, had the addressee exercised specified in subparagraph (c), the originator may,
reasonable care or used the appropriate procedure upon notice to the addressee, treat the electronic
— data message or electronic document as though it
had never been sent, or exercise any other rights it
(a) That the transmission resulted in any error may have.
therein or in the electronic data message or
electronic document when the electronic data SECTION 21(20). Time of Dispatch of Electronic
message or electronic document enters the Data Messages or Electronic Documents. —
designated information system, or Unless otherwise agreed between the originator
and the addressee, the dispatch of an electronic
(b) That electronic data message or electronic data message or electronic document occurs when
document is sent to an information system which is it enters an information system outside the control
not so designated by the addressee for the of the originator or of the person who sent the
purpose. electronic data message or electronic document on
behalf of the originator.
SECTION 20. Agreement on Acknowledgment of
Receipt of Electronic Data Messages or Electronic SECTION 22(21). Time of Receipt of Electronic
Documents. — The following rules shall apply Data Messages or Electronic Documents. —
where, on or before sending an electronic data Unless otherwise agreed between the originator
message or electronic document, the originator and and the addressee, the time of receipt of an
the addressee have agreed, or in that electronic
electronic data message or electronic document is b. If the originator or the addressee does not have
as follows: a place of business, reference is to be made to its
habitual residence; or
(a.) If the addressee has designated an information
system for the purpose of receiving electronic data c. The “usual place of residence” in relation to a
messages or electronic documents, receipt occurs body corporate, means the place where it is
at the time when the electronic data message or incorporated or otherwise legally constituted.
electronic document enters the designated
information system: Provided, however, That if the SECTION 24(23). Choice of Security Methods. —
originator and the addressee are both participants Subject to applicable laws and/or rules and
in the designated information system, receipt guidelines promulgated by the Department of Trade
occurs at the time when the electronic data and Industry with other appropriate government
message or electronic document is retrieved by the agencies, parties to any electronic transaction shall
addressee. be free to determine the type and level of electronic
data message or electronic document security
(b.) If the electronic data message or electronic needed, and to select and use or implement
document is sent to an information system of the appropriate technological methods that suit their
addressee that is not the designated information needs.
system, receipt occurs at the time when the
electronic data message or electronic document is PART III
retrieved by the addressee;
Electronic Commerce in Carriage of Goods
(c.) If the addressee has not designated an
information system, receipt occurs when the SECTION 25(24). Actions Related to Contracts of
electronic data message or electronic document Carriage of Goods. — Without derogating from the
enters an information system of the addressee. provisions of Part Two of this Act, this Chapter
applies to any action in connection with, or in
These rules apply notwithstanding that the place pursuance of, a contract of carriage of goods,
where the information system is located may be including but not limited to:
different from the place where the electronic data
message or electronic document is deemed to be (a) (i) furnishing the marks, number, quantity or
received. weight of goods;
(ii) stating or declaring the nature or value of goods;
SECTION 23(22). Place of Dispatch and Receipt of (iii) issuing a receipt for goods;
Electronic Data Message or Electronic (iv) confirming that goods have been loaded;
Documents. — Unless otherwise agreed between
the originator and the addressee, an electronic data (b) (i) notifying a person of terms and conditions of
message or electronic document is deemed to be the contract;
dispatched at the place where the originator has its (ii) giving instructions to a carrier;
place of business and received at the place where
the addressee has its place of business. This rule (c) (i) claiming delivery of goods;
shall apply even if the originator or addressee had (ii) authorizing release of goods;
used a laptop other portable device to transmit or (iii) giving notice of loss of, or damage to goods;
receive his electronic data message or electronic
document. This rule shall also apply to determine (d) giving any other notice or statement in
the tax situs of such transaction. connection with the performance of the contract;
For the purpose hereof — (e) undertaking to deliver goods to a named person
or a person authorized to claim delivery;
a. If the originator or the addressee has more than
one place of business, the place of business is that (f) granting, acquiring, renouncing, surrendering,
which has the closest relationship to the underlying transferring or negotiating rights in goods;
transaction or, where there is no underlying
transaction, the principal place of business.
(g) acquiring or transferring rights and obligations
under the contract.
SECTION 26(25). Transport Documents. — (1) PART IV
Subject to paragraph (3), where the law requires
that any action referred to in Section 25 be carried Electronic Transactions in Government
out in writing or by using a paper document, that
requirement is met if the action is carried out by SECTION 27(26). Government Use of Electronic
using one or more electronic data messages or Data Messages, Electronic Documents and
electronic documents. Electronic Signatures. — Notwithstanding any law
to the contrary, within two (2) years from the date of
(2) Paragraph (1) applies whether the requirement the effectivity of this Act, all departments, bureaus,
therein is in the form of an obligation or whether the offices and agencies of the government, as well as
law simply provides consequences for failing either all government-owned and -controlled corporations,
to carry out the action in writing or to use a paper that pursuant to law require or accept the filing of
document. documents, require that documents be created, or
retained and/or submitted, issue permits, licenses
(3) If a right is to be granted to, or an obligation is to or certificates of registration or approval, or provide
be acquired by, one person and no other person, for the method and manner of payment or
and if the law requires that, in order to effect this, settlement of fees and other obligations to the
the right or obligation must be conveyed to that government, shall —
person by the transfer, or use of, a paper
document, that requirement is met if the right or (a) accept the creation, filing or retention of such
obligation is conveyed by using one or more documents in the form or electronic data messages
electronic data messages or electronic or electronic documents;
documents: Provided, That a reliable method is
used to render such electronic data messages or (b) issue permits, licenses, or approval in the form
electronic documents unique. of electronic data messages or electronic
documents;
(4) For the purposes of paragraph (3), the standard
of reliability required shall be assessed in the light (c) require and/or accept payments, and issue
of the purpose for which the right or obligation was receipts acknowledging such payments, through
conveyed and in the light of all the circumstances, systems using electronic data messages or
including any relevant agreement. electronic documents; or

(5) Where one or more electronic data messages or (d) transact the government business and/or
electronic documents are used to effect any action perform governmental functions using electronic
in subparagraphs (f) and (g) of Section 25, no data messages or electronic documents, and for
paper document used to effect any such action is the purpose, are authorized to adopt and
valid unless the use of electronic data message or promulgate, after appropriate public hearing and
electronic document has been terminated and with due publication in newspapers of general
replaced by the use of paper documents. A paper circulation, the appropriate rules, regulations, or
document issued in these circumstances shall guidelines, to among others, specify —
contain a statement of such termination. The
replacement of electronic data messages or 1) the manner and format in which such electronic
electronic documents by paper documents shall not data messages or electronic documents shall be
affect the rights or obligations of the parties filed, created, retained or issued;
involved.
2) where and when such electronic data messages
(6) If a rule of law is compulsorily applicable to a or electronic documents have to be signed, the use
contract of carriage of goods which is in, or is of an electronic signature, the type of electronic
evidenced by, a paper document, that rule shall not signature required;
be inapplicable to such a contract of carriage of
goods which is evidenced by one or more 3) the format of an electronic data message or
electronic data messages or electronic documents electronic document and the manner the electronic
by reason of the fact that the contract is evidenced signature shall be affixed to the electronic data
by such electronic data message or electronic message or electronic document;
documents instead of by a paper document.
4) the control processes and procedures as substantial reduction of costs of including, but not
appropriate to ensure adequate integrity, security limited to, lease lines, land, satellite and dial-up
and confidentiality of electronic data messages or telephone access, cheap broadband and wireless
electronic documents or records or payments; accessibility by government departments, agencies,
bureaus, offices, government-owned and controlled
5) other attributes required of electronic data corporations, local government units, other public
messages or electronic documents or payments; instrumentalities and the general public, to include
and the establishment of a government website portal
and a domestic internet exchange system to
6) the full or limited use of the documents and facilitate strategic access to government and
papers for compliance with the government amongst agencies thereof and the general public
requirements: Provided, That this Act shall by itself and for the speedier flow of locally generated
mandate any department of the government, organ internet traffic within the Philippines.
of state or statutory corporation to accept or issue
any document in the form of electronic data The physical infrastructure of cable and wireless
messages or electronic documents upon the system for cable TV and broadcast excluding
adoption, promulgation and publication of the programming and content and the management
appropriate rules, regulations, or guidelines. thereof shall be considered as within the activity of
telecommunications for the purpose of electronic
SECTION 28(27). RPWEB to Promote the Use of commerce and to maximize the convergence of ICT
Electronic Documents or Electronic Data Messages in the installation of the GII.
in Government and to the General Public. — Within
two (2) years from the effectivity of this Act, there SECTION 29(28). Authority of the Department of
shall be installed an electronic online network in Trade and Industry and Participating Entities. —
accordance with Administrative Order 332 and The Department of Trade and Industry (DTI) shall
House of Representatives Resolution 890, direct and supervise the promotion and
otherwise known as RPWEB, to implement Part IV development of electronic commerce in the country
of this Act to facilitate the open, speedy and with relevant government agencies, without
efficient electronic online transmission, conveyance prejudice to the provisions of Republic Act 7653
and use of electronic data messages or electronic (Charter of Bangko Sentral ng Pilipinas) and
documents amongst all government departments, Republic Act No. 337, (General Banking Act) as
agencies, bureaus, offices down to the division amended.
level and to the regional and provincial offices as
practicable as possible, government-owned and Among others, the DTI is empowered to
controlled corporations, local government units, promulgate rules and regulations, as well as
other public instrumentalities, universities, colleges provide quality standards or issue certifications, as
and other schools, and universal access to the the case may be, and perform such other functions
general public. as may be necessary for the implementation of this
Act in the area of electronic commerce to include,
The RPWEB network shall serve as initial platform but not limited to, the installation of an online public
of the government information infrastructure (GII) to information and quality and price monitoring system
facilitate the electronic online transmission and for goods and services aimed in protecting the
conveyance of government services to evolve and interests of the consuming public availing of the
improve by better technologies or kinds of advantages of this Act.
electronic online wide area networks utilizing, but
not limited to, fiber optic, satellite, wireless and PART V
other broadband telecommunication mediums or
modes. Final Provisions

To facilitate the rapid development of the GII, the SECTION 30(29). Extent of Liability of a Service
Department of Transportation and Provider. — Except as otherwise provided in this
Communications, National Telecommunications Section, no person or party shall be subject to any
Commission and the National Computer Center are civil or criminal liability in respect of the electronic
hereby directed to aggressively promote and data message or electronic document for which the
implement a policy environment and regulatory or person or party acting as a service provider as
non-regulatory framework that shall lead to the
defined in Section 5, merely provides access if purposes. The electronic key for identity or integrity
such liability is founded on — shall not be made available to any person or party
without the consent of the individual or entity in
a.) The obligations and liabilities of the parties lawful possession of that electronic key.
under the electronic data message or electronic
document; SECTION 32(31). Obligation of Confidentiality. —
Except for the purposes authorized under this Act,
b.) The making, publication, dissemination or any person who obtained access to any electronic
distribution of such material or any statement made key, electronic data message or electronic
in such material, including possible infringement of document, book, register, correspondence,
any right subsisting in or in relation to such information, or other material pursuant to any
material: Provided, That powers conferred under this Act, shall not convey
to or share the same with any other person.
i. The service provider does not have actual
knowledge, or is not aware of the facts or SECTION 33. Penalties. — The following Acts shall
circumstances from which it is apparent, that the be penalized by fine and/or imprisonment, as
making, publication, dissemination or distribution of follows:
such material is unlawful or infringes any rights
subsisting in or in relation to such material; a)(32) Hacking or cracking which refers to
unauthorized access into or interference in a
ii. The service provider does not knowingly receive computer system/server or information and
a financial benefit directly attributable to the communication system; or any access in order to
unlawful or infringing activity; and corrupt, alter, steal, or destroy using a computer or
other similar information and communication
iii. The service provider does not directly commit devices, without the knowledge and consent of the
any infringement or other unlawful act and does not owner of the computer or information and
induce or cause another person or party to commit communication system, including the introduction of
any infringement or other unlawful act and/or does computer viruses and the like, resulting in the
not benefit financially from the infringing activity or corruption, destruction, alteration, theft or loss of
unlawful act of another person or party: Provided, electronic data messages or electronic documents
further, That nothing in this Section shall affect — shall be punished by a minimum fine of One
hundred thousand pesos (P100,000.00) and a
a) Any obligation founded on contract; maximum commensurate to the damage incurred
and a mandatory imprisonment of six (6) months to
b) The obligation of a service provider as such three (3) years;
under a licensing or other regulatory regime
established under written law; or b)(33) Piracy or the unauthorized copying,
reproduction, dissemination, distribution,
c) Any obligation imposed under any written law; importation, use, removal, alteration, substitution,
modification, storage, uploading, downloading,
communication, making available to the public, or
d) The civil liability of any party to the extent that
broadcasting of protected material, electronic
such liability forms the basis for injunctive relief
signature or copyrighted works including legally
issued by a court under any law requiring that the
protected sound recordings or phonograms or
service provider take or refrain from actions
information material on protected works, through
necessary to remove, block or deny access to any
the use of telecommunication networks, such as,
material, or to preserve evidence of a violation of
but not limited to, the internet, in a manner that
law.
infringes intellectual property rights shall be
punished by a minimum fine of One hundred
SECTION 31(30). Lawful Access. — Access to an thousand pesos (P100,000.00) and a maximum
electronic file, or an electronic signature of an commensurate to the damage incurred and a
electronic data message or electronic document mandatory imprisonment of six (6) months to three
shall only be authorized and enforced in favor of (3) years;
the individual or entity having a legal right to the
possession or the use of the plaintext, electronic
c)(34) Violations of the Consumer Act or Republic
signature or file and solely for the authorized
Act No. 7394 and other relevant or pertinent laws
through transactions covered by or using electronic international origin and the need to promote
data messages or electronic documents, shall be uniformity in its application and the observance of
penalized with the same penalties as provided in good faith in international trade relations. The
those laws; generally accepted principles of international law
and convention on electronic commerce shall
d)(35) Other violations of the provisions of this Act, likewise be considered.
shall be penalized with a maximum penalty of One
million pesos (P1,000,000.00) or six (6) years SECTION 38(39). Variation by Agreement. — As
imprisonment. between parties involved in generating, sending,
receiving, storing or otherwise processing
SECTION 34(36). Implementing Rules and electronic data message or electronic document,
Regulations. — The DTI, Department of Budget any provision of this Act may be varied by
and Management and the Bangko Sentral ng agreement between and among them.
Pilipinas are hereby empowered to enforce the
provisions of this Act and issue implementing rules SECTION 39(40). Reciprocity. — All benefits,
and regulations necessary, in coordination with the privileges, advantages or statutory rules
Department of Transportation and established under this Act, including those involving
Communications, National Telecommunications practice of profession, shall be enjoyed only by
Commission, National Computer Center, National parties whose country of origin grants the same
Information Technology Council, Commission on benefits and privileges or advantages to Filipino
Audit, other concerned agencies and the private citizens.
sector, to implement this Act within sixty (60) days
after its approval. SECTION 40. Separability Clause. — The
provisions of this Act are hereby declared
Failure to issue rules and regulations shall not in separable and in the event of any such provision is
any manner affect the executory nature of the declared unconstitutional, the other provisions to
provisions of this Act. remain in force and effect.

SECTION 35(37). Oversight Committee. — There SECTION 41. Repealing Clause. — All other laws,
shall be a Congressional Oversight Committee decrees, rules and regulations or parts thereof
composed of the Committees on Trade and which are inconsistent with the provisions of this
Industry/Commerce, Science and Technology, Act are hereby repealed, amended or modified
Finance and Appropriations of both the Senate and accordingly.
House of Representatives, which shall meet at
least every quarter of the first two years and every SECTION 42. Effectivity. — This Act shall take
semester for the third year after the approval of this effect immediately after its publication in the Official
Act to oversee its implementation. The DTI, DBM, Gazette or in at least two (2) newspapers of
Bangko Sentral ng Pilipinas, and other government general circulation.
agencies as may be determined by the
Congressional Committee shall provide a quarterly Approved: June 14, 2000
performance report of their actions taken in the
implementation of this Act for the first three (3) Published in Malaya and Philippine Post on June
years. 19, 2000. Published in the Official Gazette, Vol. 96
No. 48, page 7675 on November 27, 2000.
SECTION 36. Appropriations. — The amount
necessary to carry out the provisions of Sections 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.

SECTION 37(38). Statutory Interpretation. —

Unless otherwise expressly provided for, the
interpretation of this Act shall give due regard to its