QuestionsQuestions (Republic Act No. 8792)
Its short title is the “Electronic Commerce Act.” The State policy recognizes the vital role of ICT in nation-building, the need for an information-friendly environment, the private sector’s primary responsibility in ICT investment/services, development of ICT-skilled human resources, technology transfer, and ensuring network security, connectivity, and neutrality, among others.
To facilitate domestic and international dealings and transactions using electronic/optical/similar media, recognizing the authenticity and reliability of electronic data messages/documents, and promoting universal use of electronic transactions in government and by the public.
It applies to any electronic data message and electronic document used in commercial and non-commercial activities, including domestic and international transactions, agreements, contracts, exchanges, and storage of information.
“Electronic data message” is information generated, sent, received, or stored by electronic/optical/similar means; “Electronic document” is information/representation of information that establishes a right, extinguishes an obligation, or helps prove a fact, and is received/recorded/transmitted/stored/processed electronically; “Electronic signature” is a distinctive mark/characteristic/sound in electronic form representing identity of a person and logically attached to/associated with an electronic document, or a methodology/procedure executed with the intention to authenticate or approve.
No. Section 6 provides that validity/enforceability cannot be denied solely due to electronic data message form. Section 16 similarly states that contracts involving offer/acceptance and other elements may be expressed/proved by electronic documents and cannot be denied validity/enforceability solely because they are electronic.
It must maintain integrity and reliability and be authenticated for subsequent reference: (1) it remains complete and unaltered, except for authorized changes/endorsements or changes arising normally in communication/storage/display; and (2) it is reliable in light of the purpose and relevant circumstances.
Compliance is met if there is reliable assurance as to integrity from the time the information was first generated in final form, and the document can be displayed to the person to whom it is to be presented. Section 10 further clarifies integrity and reliability assessment criteria.
For evidentiary purposes, an electronic document shall be the functional equivalent of a written document under existing laws (subject to rules on authentication/best evidence).
A prescribed procedure (not alterable by parties) existed under which: (1) it identifies the party and indicates access for consent/approval; (2) the method is reliable/appropriate for the purpose in light of circumstances/agreements; (3) the signing party needed to execute/provide the electronic signature to proceed; and (4) the other party can verify the electronic signature and decided to proceed based on that verification.
It is presumed that (1) the electronic signature is the signature of the person to whom it correlates, and (2) it was affixed with intention to sign/approve unless the person relying knows of defects/unreliability or reliance is not reasonable under the circumstances.
By demonstrating and validating a claimed identity of user/device/entity in an information system, including proof of: (1) use of methodology/security procedures representing the named person and intended to authenticate/approve (for signatures); and (2) adoption/employment of appropriate security procedures for verifying origin or detecting error/alteration (for data messages/documents). The proponent has the burden to prove authenticity.
They are admissible in legal proceedings even if in electronic form or not in standard written form, provided they meet Sections 6 or 7; they can be the best evidence of the agreement/transaction. Evidential weight depends on reliability of generation/storage/communication, reliability of originator identification, and other relevant factors.
Dispatch occurs when the message enters an information system outside the control of the originator/sender. Receipt depends on designated systems: if the addressee designated a system, receipt is when it enters that designated system; if both are participants and receipt is by retrieval, receipt is when retrieved; if sent to a non-designated system, receipt is when retrieved; if addressee did not designate, receipt is when it enters the addressee’s information system.
Dispatch is deemed at the originator’s place of business; receipt at the addressee’s place of business, even if using a laptop/portable device. This rule also helps determine the tax situs of the transaction.
A service provider who merely provides access generally is not subject to civil/criminal liability based on the electronic content, provided certain conditions are met: no actual knowledge or awareness of unlawfulness, no knowing financial benefit from unlawful activity, and no direct infringement/other unlawful act or inducement/assistance and no financial benefit from another’s unlawful act—without affecting contractual or other statutory obligations and court injunctive relief duties.
It penalizes: (1) hacking/cracking/interference resulting in corruption/destruction/alteration/theft/loss (minimum fine P100,000 and mandatory imprisonment 6 months to 3 years); (2) piracy/unauthorized exploitation of protected material and copyrighted works online infringing IP rights (same minimum fine and imprisonment range); (3) violations related to consumer/RA 7394 and other relevant laws via electronic transactions (same penalties as those laws); and (4) other violations of the Act (maximum fine P1,000,000 or 6 years imprisonment).