Thesis - 10 (Conclusion Recommendation)

CONCLUSION
Indeed, Article 24 of the New Civil Code provides that “[in]all contractual, property or other relations, when
one of the parties is at a disadvantage on account of his moral dependence, ignorance, indigence, mental
weakness, tender age, or other handicap, the courts must be vigilant for his protection”
1. Airbnb does not fall under the following categories, thus do not have the corresponding
relationships with the Airbnb hosts:
 agent
 real estate broker
 insurer
 joint venture/partner
 employer
2. Airbnb is an Internet Service Provider.
 Throughout the proponent’s research, it was found that there is likewise inconsistency and
ambiguity in the definition of an Internet Service Provider (ISP) under the existing laws in
Philippines.
o This legal issue can be a separate matter altogether and may be a proper subject matter
of another thorough study.
 But for purposes of this Thesis, the proponent makes a stand that Airbnb, as an online platforms
falls under the definition of ISPs.
3. Airbnb is an Online Intermediary
4. Airbnb-Host Relationship is
5. Host-Guest Relationship is akin to Lodging Operator-Guest
RECOMMENDATION
A. For Airbnb Classification
1. Consider amending Electronic Commerce Act to include Online Platforms and Online
intermediaries
 incorporate provisions that would govern online platforms and online intermediaries
 define online platforms and online intermediaries
 clarify if online platforms fall under the definition Internet Service Provider
2. Delegate the making of Rules and Regulations to DOT and DTI
 DOT
o Look at how hotels, lodging operators get permit
o Department of Tourism Registration
o Local Government Accreditation
o Building Code Compliance
o Fire Permit
o Homeowners’ Association Permit
o Period
o Insurance
o Taxes
 DTI
o Section 29. Authority of the Department of Trade and Industry and Participating
Entities. - The Department of Trade and Industry (DTI) shall direct 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.
Among others, the DTI is empowered to promulgate rules and regulations, as well as
provide quality standards or issue certifications, as the case may be, and perform such
other functions as may be necessary for the implementation of this Act in the area of
electronic commerce to include, but shall not limited to, the installation of an online public
information and quality and price monitoring system for goods and services aimed in
protecting the interests of the consuming public availing of the advantages of this Act.
3. Amend E-Commerce Act or Make a Law Attaching Liability to Airbnb
Section 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 of the electronic data message or
electronic document for which the person or party acting as a service provider as defined in Section 5
merely provides access if such liability is founded on -
(a) The obligations and liabilities of the parties under the electronic data message or electronic
document;
(b) The making, publication, dissemination or distribution of such material or any statement made
in such material, including possible infringement of any right subsisting in or in relation to such
material. Provided, That:
i. The service provider does not have actual knowledge, or is not aware of the facts or
circumstances from which it is apparent, that the making, publication, dissemination or
distribution of such material is unlawful or infringes any rights subsisting in or in relation
to such material;
ii The service provider does not knowingly receive a financial benefit directly attributable
to the unlawful or infringing activity; and
iii. The service provider does not directly commit any infringement or other unlawful act
and does not induce or cause another person or party to commit any infringement or
other unlawful act and/or does not benefit financially from the infringing activity or
unlawful act or another person or party; Provider, further, That nothing in this Section
shall affect -
(a) Any obligation founded on contract;
(b) The obligation of a service provider as such under a licensing or other regulatory regime
established under written law; or
(c) Any obligation imposed under any written law;
(d) The civil liability of any party to the extent that such liability forms the basis for injunctive relief
issued by a court under any law requiring that the service provider take or refrain from actions
necessary to remove, block or deny access to any material, or to preserve evidence of a violation
of law.
B. For Hosts:
1. Liable under the following:
 (c) Violations of the Consumer Act of Republic Act No. 7394 and other relevant to pertinent laws
through transaction covered by or using electronic data messages or electronic documents, shall
be penalized with the same penalties as provided in those laws;
 Violations of Warranties as a Lessor
http://www.doh.gov.ph/sites/default/files/publications/Chapter_14_Hotels_Motels_and_Apartments_Lodgi
ng_Boarding_or_Tenement_Houses_and_Condomiums.pdf
http://www.chanrobles.com/presidentialdecrees/presidentialdecreeno1463.html#.WVrqLf-GPoA
http://accreditationonline.tourism.gov.ph/Downloadables/Standards/1992%20Rules%20and%20Regulatio
ns%20to%20Govern%20the%20Accreditation%20of%20Hotels,%20Tourist%20Inns,%20Motels,%20Apa
rtels,%20Resorts,%20Pension%20Houses%20and%20Other%20Accommodation%20Establishments.pdf
 Using social responsibility as a basis to motivate alternative accommodations companies could

be more effective than traditional government regulations because sharing economy companies
do not fit neatly into preexisting categories of regulation, which indicates that an alternative
solution may be necessary.
 Share Better, an association united in opposition to Airbnb’s presence in the sharing economy,
claims that “Airbnb enables tenants to break the law and potentially violate their leases, . . . and it
219
poses serious public safety concerns for Airbnb guests, hosts and their neighbors.”
 Specifically, Onefinestay, which operates in 130 countries, compared to Airbnb’s 190 countries,
238
utilizes localized task forces to review and photograph each listing on its site. Onefinestay
239
also meets guests upon arrival to provide them with keys to their alternative accommodation.
 Amend the E-Commerce Act of 2000

o so CPG can have a law to enforce
o to address insufficiency in the regulation of marketplaces
o insufficiency in the current framework of the laws resulted in the violation of the
consumer’s right to protection against trade malpractices.

Thesis - 10 (Conclusion Recommendation)

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CONCLUSION

2. Airbnb is an Internet Service Provider.

3. Airbnb is an Online Intermediary

5. Host-Guest Relationship is akin to Lodging Operator-Guest

A. For Airbnb Classification

2. Delegate the making of Rules and Regulations to DOT and DTI

3. Amend E-Commerce Act or Make a Law Attaching Liability to Airbnb

(a) Any obligation founded on contract;

(c) Any obligation imposed under any written law;

1. Liable under the following:

 Using social responsibility as a basis to motivate alternative accommodations companies could

 Amend the E-Commerce Act of 2000

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