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
REPUBLIC ACT NO. 8792 
Republic Act 8792, was signed into
law last June 14, 2000. It is a landmark
legislation in the history of the
Philippines. Not only has this bill
made the country a legitimate player
in the global marketplace. The
Philippine Internet community has
played a major role in pushing for its
passage. The law took effect last June
19, 2000 TREY 2
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  Salient features of Republic Act 8792:
1. It gives legal recognition of electronic data messages, electronic
documents, and electronic signatures.
2. Allows the formation of contracts in electronic form.
3. Makes banking transactions done through ATM switching
networks absolute once consummated.
4. Parties are given the right to choose the type and level of security
methods that suit their needs.
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, TREY
non-
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  Salient features of Republic Act 8792:
6. Mandates the government to have the capability to do e-
commerce within 2 years or before June 19, 2002.
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.
8. Made cable, broadcast, and wireless physical infrastructure within
the activity of telecommunications.
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  Salient features of Republic Act 8792:
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.
10. Provided guidelines as to when a service provider can be liable.
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.
12. Hacking or cracking, refers to unauthorized access including the
introduction of computer viruses, is punishable by a fine from 100
thousand to maximum commensurate to damage. With
imprisonment from 6 months to 3 years. TREY 5
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  Salient features of Republic Act 8792:
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.
14. All existing laws such as the Consumer Act of the Philippines
also applies to e-commerce transactions.

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 1 It gives legal recognition of electronic data
messages, electronic documents, and electronic
signatures.

Section 6. Legal Recognition of Electronic 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.
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 1 It gives legal recognition of electronic data
messages, electronic documents, and electronic
signatures.

Section 7. Legal Recognition of Electronic Documents - Electronic documents shall have

the legal effect, validity or enforceability as any other document or legal writing, and -
(a) Where the law requires a document to be in writing, that requirement is met by an
electronic document if the said electronic document maintains its integrity and reliability
and can be authenticated so as to be usable for subsequent reference, in that -
i. The electronic document has remained complete and unaltered, apart from the
addition of any endorsement and any authorized change, or any change which arises in
the normal course of communication, storage and display; and
ii. The electronic document is reliable in the light of the purpose for which it was
generated and in the light of all relevant circumstances.
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 1 It gives legal recognition of electronic data
messages, electronic documents, and electronic
signatures.

(b) Paragraph (a) applies whether the requirement therein 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 from.
(c) Where the law requires that a document be presented or retained in its
original form, that requirement is met by an electronic document if -
i. 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
ii. 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 to vary any and all
requirements of existing laws on formalities required in the execution of
documents for their validity. TREY 9
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 1 It gives legal recognition of electronic data
messages, electronic documents, and electronic
signatures.

For evidentiary purposes, an electronic document

shall be the functional equivalent of a written
document under existing laws.
This Act does not modify any statutory rule relating
to admissibility of electronic data massages or
electronic documents, except the rules relating to
authentication and best evidence. TREY
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 1 It gives legal recognition of electronic data
messages, electronic documents, and electronic
signatures.

Section 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, existed under which -
(a) A method is used to identify the party sought to be bound and to indicate said party's access to
the electronic document necessary for his consent or approval through the electronic signature;
(b) Said method is reliable and appropriate for the purpose for which the electronic document was
generated or communicated, in the light of all circumstances, including any relevant agreement;
(c) It is necessary for the party sought to be bound, in or order to proceed further with the
transaction, to have executed or provided the electronic signature; and
(d) The other party is authorized and enabled to verify the electronic signature and to make the
decision to proceed with the transaction authenticated by the same.
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 1 It gives legal recognition of electronic data
messages, electronic documents, and electronic
signatures.

Section 9. Presumption Relating to Electronic Signatures - In any proceedings

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 noticed of defects in or
unreliability of the signature or reliance on the electronic signature is not
reasonable under the circumstances.

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 1 It gives legal recognition of electronic data
messages, electronic documents, and electronic
signatures.

Section 10. Original Documents. -

(1) 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 if;
(a) the integrity of the information from the time when it was first
generated in its final form, as an electronic data message or electronic
document is shown by evidence aliunde or otherwise; and
(b) where it is required that information be resented, that the information is
capable of being displayed to the person to whom it is to be presented.
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 1 It gives legal recognition of electronic data
messages, electronic documents, and electronic
signatures.

(2) Paragraph (1) applies whether the requirement therein is in the form of an
obligation or whether the law simply provides consequences for the information
not being presented or retained in its original form.
(3) For the purpose of subparagraph (a) of paragraph (1):
(a) the criteria for assessing integrity shall be whether the information has
remained complete and unaltered, apart from the addition of any endorsement
and any change which arises in the normal course of communication, storage and
display ; and
(b) the standard of reliability required shall be assessed in the light of
purposed for which the information was generated and in the light of all the
relevant circumstances. TREY 14
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 1 It gives legal recognition of electronic data
messages, electronic documents, and electronic
signatures.

Section 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 is an information or communication system, among other ways, as
follows;
(a) The electronic signature shall be authenticated by proof than a letter , character,
number or other symbol in electronic form representing the persons named in and
attached to or logically associated with an electronic data message, electronic
document, or that the appropriate methodology or security procedures, when
applicable, were employed or adopted by such person, with the intention of
TREY
authenticating or approving in an electronic data message or electronic document;
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 1 It gives legal recognition of electronic data
messages, electronic documents, and electronic
signatures.

(b) The electronic data message or electronic document shall be

authenticated by proof that an appropriate security procedure, when
applicable was adopted and employed for the purpose of verifying the
originator of an electronic data message and/or electronic document,
or detecting error or alteration in the communication, content or
storage of an electronic document or electronic data message from a
specific point, which, using algorithm or codes, identifying words or
numbers, encryptions, answers back or acknowledgement procedures,
or similar security devices. TREY
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 1 It gives legal recognition of electronic data
messages, electronic documents, and electronic
signatures.

The supreme court may adopt such other authentication procedures, including
the use of electronic notarization systems as necessary and advisable, as well
as the certificate of authentication on printed or hard copies of the electronic
document or electronic data messages by electronic notaries, service
providers and other duly recognized or appointed certification authorities.

The person seeking to introduce an electronic data message or electronic

document in any legal proceeding has the burden of proving its authenticity by
evidence capable of supporting a finding that the electronic data message or
electronic document is what the person claims it be. TREY
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 1 It gives legal recognition of electronic data
messages, electronic documents, and electronic
signatures.

In the absence of evidence to the contrary, the integrity of the information and
communication system in which an electronic data message or electronic document is
recorded or stored may be established in any legal proceeding -
a.) By evidence that at all material times the information and communication system or
other similar device was operating in a manner that did not affect the integrity of the
electronic data message and/or electronic document, and there are no other reasonable
grounds to doubt the integrity of the information and communication system,
b.) By showing that the electronic data message and/or electronic document was recorded
or stored by a party to the proceedings who is adverse in interest to the party using it; or
c.) By showing that the electronic data message and/or electronic document was recorded
or stored in the usual and ordinary course of business by a person who is not a party to the
proceedings and who did not act under the control of the party using the record.TREY
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 1 It gives legal recognition of electronic data
messages, electronic documents, and electronic
signatures.

Section 12. Admissibility and Evidential Weight of Electronic Data Message or Electronic
Document. - 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 -

(a) On the sole ground that it is in electronic form; or

(b) On the ground that it is not in the standard written form, and the electronic data
message or electronic document meeting, and complying with the requirements under
Sections 6 or 7 hereof shall be the best evidence of the agreement and transaction
contained therein.
TREY
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 1 It gives legal recognition of electronic data
messages, electronic documents, and electronic
signatures.

In assessing the evidential weight of an electronic

data message or electronic document, the reliability
of the manner in which it was generated, stored or
communicated, the reliability of the manner in which
its originator was identified, and other relevant
factors shall be given due regard.
TREY
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 1 It gives legal recognition of electronic data
messages, electronic documents, and electronic
signatures.

Section 13. Retention of Electronic Data Message or 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. TREY
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 1 It gives legal recognition of electronic data
messages, electronic documents, and electronic
signatures.

(b) The requirement referred to in paragraph (a)

is satisfied by using the services of a third party,
provided that the conditions set fourth in
subparagraph s (i), (ii) and (iii) of paragraph (a)
are met.
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 2 Allows the formation of contracts in
electronic form.
Section 16. Formation of 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 messages 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 contracts is
expressed, demonstrated and proved by means of electronic data messages
or electronic documents. TREY
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 2 Allows the formation of contracts in
electronic form.

(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. TREY
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 3 Makes banking transactions done through
ATM switching networks absolute once
consummated.
Section 16. Formation of 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 messages 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 contracts is
expressed, demonstrated and proved by means of electronic data messages
or electronic documents. TREY
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 3 Makes banking transactions done through
ATM switching networks absolute once
consummated.
(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. TREY
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 4
Parties are given the right to choose the
type and level of security methods that
suit their needs.

Section 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 of level of
electronic data message and electronic document security
needed, and to select and use or implement appropriate
technological methods that suit their need. TREY
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 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. 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, including but not limited to:
(a) (i) furnishing the marks, number, quantity or weight of goods;
(ii) stating or declaring the nature or value of goods;
(iii) issuing a receipt for goods;
(iv) confirming that goods have been loaded;
(b) (i) notifying a person of terms and conditions of the contract;
(ii) giving instructions to a carrier; TREY
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 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.

(c) (i) claiming delivery of goods;

(ii) authorizing release of goods;
(iii) giving notice of loss of, or damage to goods;
(d) giving any other notice or 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 the contract.
TREY
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 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 26. Transport Documents. –

(1) Where the law requires that any action referred to contract of carriage of
goods be carried out in writing or by using a paper document, that
requirement is met if the action is carried out by using one or more data
messages or electronic documents.

(2) Paragraph (1) applies whether the requirement there in is in the form of
an obligation or whether the law simply provides consequences for failing
either to carry out the action in writing or to use a paper document.
TREY
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 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.

(3) If a right is to be granted to, or an obligation is to be acquired by, one

person and no person, and if the law requires that, in order to effect this, the
right or obligation must be conveyed to that person by the transfer, or use
of, a paper document, that requirement is met if the right or obligation is
conveyed by using one or more electronic data messages or electronic
documents unique;
(4) For the purposes of paragraph (3), the standard of reliability required
shall be assessed in the light of the purpose for which the right or obligation
was conveyed and in the light of all the circumstances, including any relevant
agreement. TREY
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 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.

(5) Where 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 any such action is valid unless the
use of electronic data message or electronic document has been terminated and replaced
by the used of paper documents. A paper document issued in these circumstances shall
contain a statement of such termination. The replacement of the electronic data
messages or electronic documents by paper documents shall not affect the rights or
obligation of the parties involved.
(6) If a rule of laws is compulsorily applicable to a contract of carriage of goods which is in,
or is evidenced by, a paper document, that rule shall not be inapplicable to such a contract
of carriage of goods which is evidenced by one or more electronic data messages or
electronic documents by reason of the fact that the contract is evidenced by such
electronic data messages or electronic documents instead of by a paper document. TREY
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 6
Mandates the government to have the
capability to do e-commerce within 2 years or
before June 19, 2002.

Section 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 effectivity of this Act, all
departments, bureaus, offices and agencies of the government, as well as all
government-owned and -controlled corporations, that pursuant to law
require or accept the filling of documents, require that 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 or settlement of fees and other obligations to the government,
shall - TREY
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 6
Mandates the government to have the
capability to do e-commerce within 2 years or
before June 19, 2002.

(a) accept the creation, filing or retention of such documents in the form of electronic
data messages or electronic documents;
(b) issue permits, licenses, or approval in the form of electronic data messages or
electronic documents;
(c) require and/or accept payments, and issue receipts acknowledging such payments,
through systems using electronic data messages or electronic documents; or
(d) transact the government business and/or perform governmental functions using
electronic data messages or electronic 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, regulations, or
guidelines, to, among others, specify - TREY
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 6
Mandates the government to have the
capability to do e-commerce within 2 years or
before June 19, 2002.

1) the manner and format in which such electronic data messages

or electronic documents shall be filed, created, retained or issued;
2) where and when such electronic data messages or electronic
documents have to signed, the use of an electronic signature, the
type of electronic signature required;
3) the format of an electronic data message or electronic
document and the manner the electronic signature shall be affixed
to the electronic data message or electronic document
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 6
Mandates the government to have the
capability to do e-commerce within 2 years or
before June 19, 2002.

4) the control processes and procedures as appropriate to ensure adequate

integrity, security and confidentiality of electronic data messages or electronic
documents or records of payments;
5) other attributes required to electronic data messages or electronic documents
or payments; and
6) the full or limited use of the documents and papers for compliance with the
government requirements: Provided, that this Act shall be itself mandate any
department of the government, organ of state or statutory corporation to accept
or issue any document in the form of electronic data messages or electronic
documents upon the adoption, promulgation and publication of the appropriate
rules, regulations or guidelines. TREY
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 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. RPWEB To Promote the Use of Electronic Documents or Electronic Data Messages
In Government and to the General Public. - Within 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.
TREY
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 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.

The RPWEB network shall serve as initial platform of the

government information infrastructure (GII) to facilitate the
electronic online transmission and conveyance of
government services to evolve and improve by better
technologies or kinds and electronic online wide area
networks utilizing, but not limited to, fiber optic, satellite,
wireless and other broadband telecommunication mediums
or modes. TREY
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 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.

To facilitate the rapid development of the GII, the Department of Transportation and
Communications, National Telecommunications Commission and the National Computer
Center are hereby directed to aggressively promote and implement a policy environment
and regulatory framework that shall lead to the substantial reduction of costs of
including, but not limited to, lease lines, land, satellite and dial-up telephone access, cheap
broadband and wireless accessibility by government departments, agencies, bureaus,
offices, government owned and controlled corporations, local government units, other
public instrumentalities and the general public, to include the establishment of a
government website portal and a domestic internal exchange system to facilitate
strategic access to government and amongst agencies thereof and the general public and
for the speedier flow of locally generated internal traffic within the Philippines.
TREY
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 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.

The physical infrastructure of cable and wireless system for

cable TV and broadcast excluding programming content
and the management thereof shall be considered as within
the activity of telecommunications for the purpose of
electronic commerce and to maximize the convergence of
ICT in the installation of the GII.

TREY
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 8
Made cable, broadcast, and wireless physical
infrastructure within the activity of
telecommunications.

Section 28. RPWEB To Promote the Use of Electronic Documents or Electronic Data

Messages In Government and to the General Public. - Within 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. TREY
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 8
Made cable, broadcast, and wireless physical
infrastructure within the activity of
telecommunications.

The RPWEB network shall serve as initial platform of the

government information infrastructure (GII) to facilitate the
electronic online transmission and conveyance of
government services to evolve and improve by better
technologies or kinds and electronic online wide area
networks utilizing, but not limited to, fiber optic, satellite,
wireless and other broadband telecommunication mediums
or modes. TREY
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 8
Made cable, broadcast, and wireless physical
infrastructure within the activity of
telecommunications.

To facilitate the rapid development of the GII, the Department of Transportation and
Communications, National Telecommunications Commission and the National
Computer Center are hereby directed to aggressively promote and implement a policy
environment and regulatory framework that shall lead to the substantial reduction of
costs of including, but not limited to, lease lines, land, satellite and dial-up telephone
access, cheap broadband and wireless accessibility by government departments,
agencies, bureaus, offices, government owned and controlled corporations, local
government units, other public instrumentalities and the general public, to include the
establishment of a government website portal and a domestic internal exchange
system to facilitate strategic access to government and amongst agencies thereof and
the general public and for the speedier flow of locally generated internal traffic
TREYwithin
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 8
Made cable, broadcast, and wireless physical
infrastructure within the activity of
telecommunications.

The physical infrastructure of cable and wireless system for

cable TV and broadcast excluding programming content
and the management thereof shall be considered as within
the activity of telecommunications for the purpose of
electronic commerce and to maximize the convergence of
ICT in the installation of the GII.

TREY
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 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. 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.
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 10 Provided guidelines as to when a service
provider can be liable.

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; TREY
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 10 Provided guidelines as to when a service
provider can be liable.

(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 - TREY
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 10 Provided guidelines as to when a service
provider can be liable.

(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. TREY
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 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. Lawful Access. - Access to an electronic file, 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 plaintext, electronic signature or file or 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
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 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 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.
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 Piracy through the use of telecommunication
12 networks, such as the Internet, that infringes
intellectual property rights is punishable. The
penalties are the same as hacking.
(b) Piracy or the unauthorized copying, reproduction, dissemination, or
distribution, importation, use, removal, alteration, substitution, modification,
storage, uploading, downloading, communication, making available to the public,
or broadcasting of protected material, electronic signature or copyrighted works
including legally protected sound recordings 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 shall be punished by a minimum fine of one hundred thousand
pesos (P 100,000.00) and a maximum commensurate to the damage incurred and a
mandatory imprisonment of six (6) months to three (3) years;
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 All existing laws such as the Consumer Act
13 of the Philippines also applies to e-
commerce transactions.

(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;
(d) Other violations of the provisions of this Act, shall be
penalized with a maximum penalty of one million pesos
(P 1,000,000.00) or six (6) years imprisonment. TREY
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