E-cOMMERCE ACT of 2000

RA 8792 (ECA)
(Approved June 14, 2000)

An Act Providing For The Recognition And

Use Of Electronic Commercial And Non-
Commercial Transactions And Documents5,
Penalties For Unlawful Use Thereof And For
Other Purposes.
The Philippine e-commerce act is based on UNCITRAL (United Nations
mission on International Trade Law) Model Law on Electronic
Commerce

Table of Specifications (TOS)

1. General provisions
2. Legal recognition and communication of
electronic data messages and electronic
documents
3. Electronic commerce in carriage of goods
and electronictransactions in government

Not part of the original Special Laws covered, incorporated in May 2019
CPALE

Background
People vs. Judge Burgos, 200 SCRA 67 (1991)

Facts: Nine private respondents were charged with violation of Anti-

Subversion Act (RA No. 1700) by the Office of the City Prosecutor of Cebu.
During the bail in the RTC, Branch 17 of Cebu City, Judge Burgos denied
the prosecution's request for its witness, Computer Programmer Eulogio
Llego to print in open court the materials encoded in _the diskettes that|
were seized from private, respondents. The denial of the request was
anchored on the ground that the diskettes were in the possession of the
prosecution since thestart of the hearing, and that as admitted by the
prosecution witness himself, their contents could be manipulated or
altered.

Issue:WON the contents of the diskette can be printed and be admissible as

evidence.

HELD: We, therefore hold that the printing out of data (if any) encoded in the
diskettes should be allowed. Indeed, the presumption that official duty
has been regularly performed prevails, in the absence of any evidence to
the contrary
 Background
IBM Philippines vs. NLRC, 305 SCRA 592 (1999)

Facts: Private respondent Angel Israel was terminated from

employment by IBM for habitual tardiness and absenteeism after
sixteen (16) years of service. An illegal termination case was filed
against IBM on the ground that he was not given opportunity to be
heard. IBM countered that numerous e-mail messages regarding
his tardiness and absenteeism were sent by his supervisor and that
these messages constituted sufficient notice of the charges against
him.
Issue: WON the e-mail messages can be used as evidence?
Held: The computer print-outs, which constitute the only evidence of
petitioners, afford no assurance of their authenticity because they
are unsigned. Even if the computer print-outs were admissible, they
would not suffice to show that private respondent's dismissal was
justified.

Background
NBI-Sky Internet vs. Reonel R. Ramones, I.s. No.
2000-918

Facts: E-mail love letter which activated itself to the

addressees in the mailing list stored in the computer
system which spread rapidly across the internet
worldwide and consequently cause the e-mail computer
servers to crash under heavy load resulting to the
erasures of the existing files in the infected computer
system. Damage estimated US10 Billion.
Issue: WON the private respondent can be held liable?
HELD: Nullum Crimen, Nulum Poena Sine Lege

Objectives and Sphere of Applications

E-Commerce Act
 Objective (Sec. 3)
This Act aims to facilitate domestic and
international dealings, transactions,
arrangements, agreements, contracts and
exchanges and storage of information through
the utilization of electronic, optical and similar
medium, mode, instrumentality and
technology to recognize the authenticity and
reliability of
of electronic data messagesS or
electronic documents related to such activities
and to promote the universal use of electronic
transaction in the government and by the
general public.

Simply put -

t o provide a secure legal framework and

environment for electronic commerce.
to protect the integrity of electronic
documents and electronic signatures as well
as its transmission and communication so as
to build and ensure the trust and reliance of
the public on electronic transactions.

Sphere of Application (Sec. 4)

This Act shall apply to any kind of electronicdata

message and electronic document used in the
Context of commercial and non-commercial
activities to include domestic and
international
arrangements,
dealingS,
transactions,
agreements, and
contracts
and
exchanges and storage of information. (Sec. 4)

E-commerce is not limited to the internet, it can be any

other medium that is electronic in nature, it could be
Wired or wireless even.
Definition of Terms (Sec. 5)

E-Commerce(electronic commerce)
commercial transactions based
on electronic transmission, of
data Over Communication
networks Such as internet
(OECD).
is defined as the. Process of
buying. and, selling goods
electronically by consumers and
from Company to.Company
through.computerized business
transactions.
any transaction conducted over
thé Internet or through Internet
access,. CompriSIng the sale,
lease, license, offeY or deliverý
delivery
OT.property, goods, serviceS or
information, whether or not for
Consideration, and includes the
provision of Internet access.

Electronic data message* refers to

information generated, sent, received or
stored by electronic, optical, and similar
means. [Sec. 5 (c)]
Electronic data message* - refers to information
generated, sent, received or stored by electronic,
optical, and similar means. [Sec. 5 (c)]
Accordingly, a facsimile transmission cannot be considered
as electronic evidence. It is not the functional equivalent of
an original under the Best Evidence Rule and is not
admissible as electronic evidence. When congress drafted
the law, it excluded the earlier forms of technology like
telegraph, telex, and telecopy (except computer-generated
faxes) when the law defined electronic data message. (MCC
Industrial Sales Corp. vs. Ssangyong Corp. [2007).
Definition of Terms (Sec. 5)

Electronic document
refers to information or
the representation of
information, data, figures,
symbol_ or other modes
of written expresSIon,
describeed or however
represented, by which a
right is established or an
obligation, extinguishd,
or by which a fact may be
provedd and aftirmed,
which is receiveq,
recorded, transmitteq,
stored, processed,
retrieved or prodycd
electronically. [Sèc. 5 (f)]
Electronic signature refers to any distinctive mark,
characteristic and/or sound in electronic form, representing
the identity of a person and attached to or logically
associated with the electronic data message or electronic
document or any methodology or procedures employed or
adopted by a person and
executed or adopted by
such person with the
intention of authenticating
or approving an electronic
data message or electronic
document.

Electronic key - refers to

a secret code which
secures and defends
sensitive information
that cross over public
channels into a form
decipherable only
with a matching8
electronic key.
 Definition of Terms (Sec. 5)
Computer any device or apparatus which by
electronic, electro-mechanical or magnetic impulse
or by other means xxx XXX
Information and Communication System a
system intended for and capable of generating,
sending, receiving, storing or otherwise processing
electronic data messages or electronic documents
and includes the computer system or other similar
device by or in which data is recorded or stored and
any procedure related to the recording or storage of
electronic data message or electronic document.

Originator refers to a person by whom, or on whose

behalf, the electronic document purports to have been
created, generated and/or sent. The term does not
include a person acting as an intermediary with respect
to that electronic document.
Addressee -a person who is intended by the originator
to receive_the electronic data message or electronic
document.

Intermediary refers to a person who in behaf of another

person and with respect to a particular electronic document
sends, receives and/or stores provides other services in
respect of that electronic data message or electronic
document.
 Definition of Terms (Sec. 5)
Service provider refers to a
provider of -
ii. The necessary technical
i. On-line services or means by which electronic
network access or the documents of an originator may
operator of facilities be stored and made accessible
to designated or undesignated
therefor, including entities
offering the transmission, third party.
routing, or providing of Reach26lobe
3ELLERSEAVIers
connections for online
communications, digital or amazon Flipkart
otherwise, between or
among points specified by
a user, of electronic
documents of the user's
choosing; or
paytm Craftsvilla

Such service providers shall have no authority to

modify or alter the content of the electronic data
message or electronic document received or to
make any entry therein on behalf of the originator,
addressee or any third party unless specifically
authorized to do so, and who shall retain the
electronic document in accordance with the specific
request or as necessary for the purpose of
performing the services it was engaged to perform.

Legal Effects
E-Commerce Act

Essential Features

It gives legal recognition of electronic (1)

data messages, (2) electronic documents,
and (3) electronic signatures.
Legal Recognition of Electronic Data Messages (Sec. 6)
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.

This provision refers to two things: (1) the electronic

data itself, and/or another that has been (2) merely
incorporated by reference to it. There are many
messages whereby the original refers to another datà
message.

Legal Recognition of Electronic Documents (Sec. 7)

Electronic documents shall have the

legal effect, validity or enforceability
as any other document or legal writing.

Legal Recognition of Electronic Documents (Sec. 7)

Where the law requires a document to be in writing, that
requirement is met by an electronic document

1. if the said electronic document maintains its integrity and

reliability; and
2 It 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.
Legal Recognition of Electronic Documents(Sec. 7)
Where the law requires that a document be presented
or retained inits original form, the requirement is met 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.

Legal Recognition of Electronic Signatures (Sec. 8)

An electronic signature on the electronic documents shall be equivalent
tothe signature of a person on a written document-
1. if the signature is an electronic signature; and
2. 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;
c) It is necessary for the party sought to be bound, in 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.

Presumption Relating to Electronic Signatures

The electronic signature is the signature of the

person to whom it correlates.
The electronic was affixed by that person with
the intention of signing or approving the
electronic document.
 Admissibility As Evidence (Sec. 10)
The new law now expressly provides that for
evidentiary purposes, an electronic document shall be
the functional equivalent of a written document
under existing laws.

Under this principle of "functional equivalent" any

electronic data message, document or signature,
which is the functional equivalent of a written
document or original signature, it is now clearly
admissible as evidence. The operative words for
admissibility are "integrity", "reliability" and "can be
authenticated."
Where the law requires information to be presented or retained in its
original form, that requirement is met IF:
) 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 presented, that the
information is capable of being displayed to the person to whomn it
is to be presented.
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; &
Standard of reliability required shall be assessed in the light
of the purpose for which the information was generated and in
the light of all the relevant circumstances.
Authentication of E- Data Messages and E-Documents (Sec. 11)
Before any private electronic document offered as authentic
is received in evidence, its authenticity must be proved by
any of the following means:
(1) By evidence that it had been digitally signed by the
person purported to have signed the same;
(2) By evidence that other appropriate security procedures
or devices as may be authorized by the Supreme Court or
by law for authentication of electronic documents were
applied to the document; or
(3) By other evidence showing its integrity and reliability to
the satisfaction of the judge. (Sec 2, Rules on Electronic
Evidence)
 Retention of Electronic Data Messages (Sec. 13)

Under this law, the retention of documents in its

original form is satistied by retaining them in the
form of an electronic data message or electronic
document as long as the criteria of accessibility,
integrity, and identification of person and time is
assured.
The person required to retain the forms may also do
it by using the services of a third party.
The requirements in Section 9 on integrity, and
Section 12 on admissibility may be established by
affidavit.
Essential Features

It allows the formation of contracts

in electronic form.
Basic Legal Effect

The legal recognition of e-documents as binding,

actionable, and evidentially documents at par
with any other written documents. It raises the
status of electronic documents to the same
status as paper documents thereby giving legal
recognition to electronic data messages,
electronic documents, and electronic signatures.
Electronic Contracts (Sec. 16)
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
documents.

No contract shall be denied validity or

enforceability on the sole ground that it is in the
form of an electronic document.
 Electronic Contracts
When and where meetings of minds or contract
have been reached
Section 20 on the agreement on acknowledgment
of receipt of electronic data messages)
Section 21 on the time of dispatch f electronic data
messages), Section 22 - on time of receipt of
electronic data messages),
Section 23 on place of dispatch and receipt of
electronic data messages
Section 24 autonomy of parties-to-a-transaction. in
the choice of type or level of security for their own
purposes

Essential Featurees

Provides the mandate for the

electronic implementation of
of
transport documents to facilitate
carriage of goods

Carriage of Goods / Transport Documents

It 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, courie, post receipts, transport
documents issued by freight forwarders,
marine/ocean bill of lading, non-negotiable
seaway bill, charter party bill of lading (Secs.
25 and 26)
 Carriage of Goods (sSec. 26)

Where the law requires that any action (in

connection with a 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 electronic
data or electronic documents.

Thus, electronic messages or electronic documents may

be used as "functional equivalents" of written or paper
documents in connection with the following instances:
furnishing the marks, number, quantity or weight
of goods;
stating or declaring the nature or value of goods;
issuinga receipt for goods;
confirming that goods have been loaded;
notifying a person of terms and conditions of the
contract;
giving instructions to a carrier;
claiming delivery of goods;

Thus, electronic messages or electronic documents may be

used as "functional equivalents" of written or paper
documents in connection with the following instances:
authorizing release of goods;
giving notice of loss, or damage to goods;
giving any other notice or statement in connection with
the performance of the contract;
undertaking to deliver goods to a named person or a
person authorized to claim delivery;
granting, acquiring, renouncing surrendering,
transferring or negotiating rights in goods; or
acquiring or transferring rights and obligations under
the contract.
 Essential Features

Mandates the government to have the

capability to do e-commerce within 2
years or before June 19, 2002

Mandates RPWeb to be implemented.

Electronic Transactions In Government (Sec. 27)

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,
must accept/use electronic data messages,
electronic documents and electronic signatures.

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,
 Electronic Transactions in Government

I t 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. (Sec. 28)
I t made cable, broadcast, and wireless physical
infrastructure within the activity o f
telecommunications.
I t empowers the Department of Trade and
Industry to supervise the development of e
commerce in the country. (Sec. 29)

Other Salient Features

I t makes banking transactions done through

ATM switching networks absolute once
consummated. (Sec. 16)

Parties are given the right to choose the type

and level of security methods that suit their
needs (Sec. 24)
I t provided the guidelines as to when a service
provider can be liable. (Sec. 30)
All existing laws such as the Consumer Act of
the Philippines also applies to e-commerce
transactions. (Sec. 33)
Obligation of Confidentiality
Authorities and parties with the legal right can
only gain access to electronic documents,
electronic data messages, and electronic data
messages, and electronic signatures. For
confidentiality purposes, it shall not share or
convey to any other person. (Secs. 31 and 32)
Section 31 says that access to an electronic file,
signature or document shall be limited only to
thosethat are authorized to possess and use it.
Section 32 obliges those who obtain access to an
electronic key, signature or document not to convey
or share the same with another.
These two sections recognizes the privacy and
personal nature of the key by obliging those who
gets to possess it not to share it with others.

Acts Criminalized/ Punishable

E-Commerce Act

Acts Criminalized
Hacking or Cracking refers to the unauthorized
access into or interference in a computer system
server or information and communication system; or
any access in order to corrupt, alter, seal, or destroy
using a computer or other similar information and
communication devices, without the knowledge and
consent of the owner of the computer or information
and Ccommunications system, includingg the
thee
introduction of computer viruses and the like, resulting
in the corruption, destruction, alteration, theft or loss
of electronic data messages or electronic document.
(Sec. 48)

Piracy or the unauthorized copying, reproduction,

dissemination, 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.
Simplified
Hacking or cracking refers to the unauthorized access
including the introduction of computer viruses, is
punishable by a fine shall be punished by a minimum fine of
One Hundred Thousand pesos (P100,000.00) and a
maximum commensurate to the damage incurred and a
mandatory imprisonment of six (6) months to three (3)
years.
Piracy through the use of telecommunication networks,
such as the Internet, that infringes intellectual property
right. The penalties are the same as hacking.

Requirements for Adopting Fair Marketing

and Advertising Policies (DTI)
Retailers, seller, distributors, suppliers or manufacturers engaged
in electronic commerce with the consumers shall:
1. Refrain from engaging in any false, deceptive and and
misleading advertisement prohibited under the provisions of
Title l, Chapter Vi of the Consumer Act of the Philippines
and its IRR; and
2. Comply with the advertising and promotion requirements
therein, and other advertising and promotion guidelines
issued by the respective departments in compliance with
other relevant laws.

Requirements for Online Disclosure of Information

(DTI)
A. Information about the Retailers, Sellers,
Distributors, Suppliers or Manufacturers
B. DTI/SEC registration
C. Name of the owner of proprietor
D. Principal address
E. Website, email address
F. Any local or foreign registration/license numbers
G. Contact details
H. Representative agent in the Philippines
 Requirements for Online Disclosure of Information
(DTI)
Information about Consumer Transaction
- terms and conditions and costs of consumer transaction

Opportunity of the consumer to review the terms and conditions

Clear and complete text of the terms and conditions
Include the price tag and applicable currency
Any restrictions, limitations or conditions of purchase
Payment mechanism
Terms of delivery, safety and health warning
Details about the termination, return, exchange, cancellation and
refunds
Warranties and guidelines

Related Laws

R.A. 8484 or the Access Devices Regulation

Act (ATM and credit card fraud)
RA 10173 or the Data Privacy Law
RA 7394 or Consumer Laws
RA 8293 or Intellectual Property Law
J
Summary
1. It gives validity and legal recognition to electronic
documents, electronic signatures and electronic
transactions.
2. It facilitates the admission of electronic documents
and electronic signature as evidence in cases of
disputes.
3. It outlaws and penalizes unauthorized access to
information and interference in communications
systems (i.e., hacking, introduction of viruses and the
like)
4. It calls upon government to formulate and institute
programs that are not only supportive of e-commerce
but would actually get the government online.