E-Commerce Act

The purpose of the e-commerce act is to:

1. facilitate domestic and international dealings, transactions, arrangements,

contracts and exchanges, and storage of information, through the
utilization of electronic, optical and similar medium, mode, instrumentality
and technology.

2. Recognize the authenticity and reliability of electronic data messages or

electronic documents; and

3. Promote the universal use of electronic transactions in the government and

by the general public.

Electronic Data Message

- Refers to information generated, sent, received or stored by electronic, optical or
similar means.

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.

(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.

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 messages or electronic documents,
except the rules relating to authentication and best evidence.

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.

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

The E – Commerce Act now expressly provides that for evidentiary

purposes, an E-document shall be the functional equivalent of a written
document under existing laws. Under this principle of functional
equivalent, any E-data message, document or signature, which is the
functional equivalent of a written document or original signature, is now
clearly admissible as evidence. The operative words for admissibility are
“integrity”, “reliability, and “can be authenticated.” (Section 10 and 11)

In the case of Garvida vs. Sales, Jr., the Supreme Court found inadmissible in
evidence the filing of pleadings through fax machines. It is provided that . . . . “a
facsimile transmission is not considered as electronic evidence under the Electronic
Commerce Act.”

In the case of MCC Industrial Sales Corporation vs. Ssangyong Corporation,

the same ruling was reiterated and the Supreme Court said: “We, therefore, conclude
that the terms “electronic data message and “electronic document,” as defined under
the Electronic Commerce Act of 2000, do not include a facsimile transmission.
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.

Legal Recognition of 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 signature is
not reasonable under the circumstances. (R.A. No. 8792, Sec. 9)

Admissibility and Evidential Weight of Electronic Data Message or

Electronic Document

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.

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. (R.A. No. 8792, Sec. 12)

Formation of Contracts in Electronic Form 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.

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. (R.A. No. 8792, Sec.
16)

As between the originator and the addressee of an electronic data message or

electronic document, a declaration of will or other statement shall not be denied legal
effect, validity or enforceability solely on the ground that it is in the form of an
electronic data message. (R.A. No. 8792, Sec. 17)

Obligation of Confidentiality

Except for the purposes authorized under this Act, any person who obtained access
to any electronic key, electronic data message, or electronic document, book, register,
correspondence, information, or other material pursuant to any powers conferred
under this Act, shall NOT convey to or share the same with any other person. (Sec.
32, R.A. 8792)

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. (R.A. No.
8792, Sec. 24)

Electronic Commerce in Carriage of Goods

Actions Related to Contracts of Carriage of Goods

(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;

(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.

(R.A. No. 8792, Sec. 25)
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.

(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.

(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. (R.A. No. 8792, Sec. 26)

When a Service Provider Can Be Liable Under the Act

"Service provider" refers to a provider of -

(i) On-line services or network access or the operator of facilities therefor,

including including entities offering the transmission, routing, or providing of
connections for online communications, digital or otherwise, between or among points
specified by a user, of electronic documents of the user's choosing; or

(ii) The necessary technical means by which electronic documents of an

originator may be stored and made accessible to designated or undesignated third
party.

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. (R.A. No. 8792, Sec. 501)
Liability of Service Provider

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 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
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;

Provided, 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. (R.A. No. 8792, Sec. 30)

Rules ON ELECTRONIC EVIDENCE

Scope and Coverage

The Rules on Electronic Evidence (REE) shall apply whenever an electronic document
or electronic data message as defined in these rules is offered or used in evidence.

These Rules shall apply to all civil actions and proceedings, as well as quasi-judicial
and administrative cases.
Applicability to Criminal Actions

As to the admissibility of the text messages, the RTC admitted them in

conformity with the Court's earlier Resolution applying the Rules on Electronic
Evidence to criminal actions. (People v. Enojas, G.R. No. 204894, 2014)

Electronic Document - information or the representation of information, data,

figures, symbols or other modes of written expression, described or however
represented, by which a right is established or an obligation extinguished, or by which
a fact may be proved and affirmed, which is received, recorded, transmitted, stored,
processed, retrieved or produced electronically.

It includes digitally signed documents and any print-out or output, readable

by sight or other means, which accurately reflects the electronic data message or
electronic document. (REE, Rule 2, Sec. 1(h))

Electronic Data Message information generated, sent, received or stored by

electronic, optical or similar means. (REE, Rule 2, Sec. 1(g))

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. (MCC v. Ssangyong, G.R. No. 170633, 2007)
Note: For purposes of these Rules, the term "electronic document" may be used
interchangeably with electronic data message". (REE, Rule 2, Sec 1(h)

Electronic evidence as functional equivalent of paper based documents -

Whenever a rule of evidence refers to the term writing, document, record, instrument,
memorandum or any other form of writing, such term shall be deemed to include an
electronic document as defined in these Rules. (REE, Rule 3, Sec. 1)

Probative Value of Electronic Documents or Evidentiary Weight; Method of

Proof Admissibility

An electronic document is admissible in evidence if:

1. It complies with the rules on admissibility prescribed by the Rules of Court

and related laws; and
2. It is authenticated in the manner prescribed by these
Rules. (REE, Rule 3, Sec. 2)

Note the definition of a Document under the New Rules on Evidence

B. DOCUMENTARY EVIDENCE

Sec. 2. Documentary evidence. - Documents as evidence consist of writings,

recordings, photographs or any material containing letters, words, sounds,
numbers, figures, symbols, or their equivalent, or other modes of written
expression offered as proof of their contents. Photographs include still
pictures, drawings, stored images, x-ray films, motion pictures or videos.
(2a)
Best Evidence Rule Under the REE

An electronic document shall be regarded as the equivalent of an original document

under the Best Evidence Rule if it is a printout or output readable by sight or other
means, shown to reflect the data accurately. (REE, Rule 4, Sec. 1)

When copies or duplicates of a document shall be regarded as original::

1. It is in two or more copies executed at or about the same time with identical
contents; or
2. It is a counterpart produced by the same impression as the original, or from
the same matrix, or by mechanical or electronic re- recording, or by
chemical reproduction, or by other equivalent techniques which accurately
reproduces the original
Such copies or duplicates shall be regarded as the equivalent of the original.
(REE, Rule 4, Sec. 2)

Note: Notwithstanding the foregoing, copies or duplicates shall not be

admissible to the same extent as the original if: (REE, Rule 4, Sec. 2)

Note also that under the New Rules on Evidence

Sec. 4. Original of document. –

(a) An "original" of a document is the document itself or any

counterpart intended to have the same effect by a person
executing or issuing it. An "original" of a photograph
includes the negative or any print therefrom. If data is
stored in a computer or similar device, any printout or
other output readable by sight or other means, shown to
reflect the data accurately, is an "original."

(b) A "duplicate" is a counterpart produced by the same

impression as the original, or from the same matrix, or by
means of photography, including enlargements and
miniatures, or by mechanical or electronic re-recording, or
by chemical reproduction, or by other equivalent
techniques which accurately reproduce the original.

(c) A duplicate is admissible to the same extent as an

original unless (1) a genuine question is raised as to the
authenticity of the original, or (2) in the circumstances, it
is unjust or inequitable to admit the duplicate in lieu of the
original. ( 4a)

2. Secondary Evidence

Sec. 5. When original document is unavailable. - When the

original document has been lost or destroyed, or cannot be
produced in court, the offeror, upon proof of its execution or
existence and the cause of its unavailability without bad
faith on his or her part, may prove its contents by a copy,
or by recital of its contents in some authentic document, or
by the testimony of witnesses in the order stated. (Sa)
Factors in Determining Evidentiary Weight of Electronic Evidence (REE,
Rule 7, Sec. 1 and 2)

In assessing the evidentiary weight of an electronic document, the following

factors may be considered: (REE, Rule 7, Sec. 1)

1. The reliability of the manner or method in which it was generated, stored or

communicated, including but not limited to input and output procedures, controls,
tests and checks for accuracy and reliability of the electronic data message or
document, in the light of all the circumstances as well as any relevant agreement;

2. The reliability of the manner in which its originator was identified;

3. The integrity of the information and communication system in which it is

recorded or stored, including but not limited to the hardware and computer programs
or software used as well as programming errors;

4. The familiarity of the witness or the person who made the entry with the
communication and information system;

5. The nature and quality of the information which went into the
communication and information system upon which the electronic data message or
electronic document was based; or

6. Other factors which the court may consider as affecting the accuracy or
integrity of the electronic document or electronic data message.

In any dispute involving the integrity of the information and communication

system in which an electronic document or electronic data message is recorded or
stored, the court may consider, among others, the following factors: (REE, Rule 7,
Sec. 2)

1. Whether the information and communication system or other similar device was
operated in a manner that did not affect the integrity of the electronic document, and
there are no other reasonable grounds to doubt the integrity of the information and
communication system;

2. Whether the electronic document was recorded or stored by a party to the

proceedings with interest adverse to that of the party using it; or

3. Whether the 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 it.

Method of Proof

Affidavit Evidence All matters relating to the admissibility and evidentiary weight of
an electronic document may be established by an affidavit stating facts of:

a. direct personal knowledge of the affiant; or based on authentic records

b. The affidavit must affirmatively show the competence of the affiant to testify
on the matters contained therein. (REE, Rule 9, Sec. 1)
Cross-Examination of Deponent - The affiant shall be made to affirm the contents
of the affidavit in open court and may be cross-examined as a matter of right by the
adverse party. (REE, Rule 9, Sec. 2)

Examination of Witness

Electronic Testimony - After summarily hearing the parties pursuant to Rule 9 of

these Rules, the court may authorize the presentation of testimonial evidence by
electronic means. Before so authorizing, the court shall determine the necessity for
such presentation and prescribe terms and conditions as may be necessary under the
circumstances, including the protection of the rights of the parties and witnesses
concerned. (REE, Rule 10, Sec. 1)

Transcript of electronic testimony - When examination of a witness is done

electronically, the entire proceedings, including the questions and answers, shall be
transcribed by a stenographer, stenotypist or other recorder authorized for the
purpose, who shall certify as correct the transcript done by him. The transcript should
reflect the fact that the proceedings, either in whole or in part, had been electronically
recorded. (REE, Rule 10, Sec. 2)

Authentication of Electronic Documents And Electronic Signatures

Burden of proving authenticity

The person seeking to introduce an electronic document in any legal proceeding

has the burden of proving its authenticity in the manner provided in this Rule. (REE,
Rule 5, Sec. 1)

Manner of authentication
Before any private electronic document offered as authentic is received in evidence,
its authenticity must be proved by any of the following means: (REE, Rule 5, Sec. 2)

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.

Proof of electronically notarized document

A document electronically notarized in accordance with the rules promulgated

by the Supreme Court shall be considered as a public document and proved as a
notarial document under the Rules of Court. (REE, Rule 5, Sec. 3)

Authentication of Electronic Signature

An electronic signature or a digital signature authenticated in the manner

prescribed hereunder is admissible in evidence as the functional equivalent of the
signature of a person on a written document. (REE, Rule 6, Sec. 1)
 An electronic signature may be authenticated in any of the following manner:
(REE, Rule 6, Sec. 2)

1. By evidence that a method or process was utilized to

establish a digital signature and verify the same;

2. By any other means provided by law; or;

3. By any other means satisfactory to the judge as establishing the genuineness

of the electronic signature.

Business Records As Exception To The Hearsay

A memorandum, report, record or data compilation of acts, events, conditions,

opinions, or diagnoses, made by electronic, optical or other similar means is an
exception to the hearsay rule provided that the following are shown by the testimony
of the custodian or other qualified witness:

1. That it was made at or near the time of or from transmission or supply of

information;

2. That it was made by a person with knowledge thereof;

3. That it was kept in the regular course or conduct of a business activity; and

4. That such was the regular practice to make the memorandum, repoit, record,
or data compilation by electronic, optical or similar means

This exception (to the hearsay rule) may be overcome by evidence of the
untrustworthiness of the source of information or the method or
circumstances of the preparation, transmission or storage thereof. (REE,
Rule 8, Sec. 2)

Audio, Photographic, Video and Ephemeral Evidence

Ephemeral Electronic Communication refers to telephone conversations, text

messages, chatroom sessions, streaming audio, streaming video, and other electronic
forms of communication the evidence of which is not recorded or retained. (REE, Rule
2, Sec. 1(k))

Text messages have been classified as "ephemeral electronic communication" under

Section 1(k), Rule 2 of the Rules on Electronic Evidence, and "shall be proven by the
testimony of a person who was a party to the same or has personal knowledge
thereof." (Vidallon-Magtolis v. Salud, A.M. No. CA-05- 20-P, 2005)

Admissibility (REE, Rule 11, Section 1 and 2)

Audio, photographic and video evidence of events, acts or transactions shall be

admissible provided: (REE, Rule 11, Sec. 1)

1. It shall be shown, presented or displayed to the court; and

 2. It shall be identified, explained or authenticated by the person who made
the recording or by some other person competent to testify on the accuracy thereof
Ephemeral electronic communications Ephemeral evidence shall be proven by the
testimony of a person who was a party to the same or has personal knowledge thereof.
In the absence or unavailability of such witnesses, other competent evidence may be
admitted.

A recording of the telephone conversation or ephemeral electronic

communication shall be covered by the immediately preceding section.

Note: If the foregoing communications are recorded or embodied in an

electronic document, then the provisions of Rule 5 on authentication of
electronic documents shall apply. (REE, Rule 11, Sec. 2)