Law Summary
Objective
- Facilitates domestic and international electronic dealings and transactions.
- Recognizes authenticity and reliability of electronic messages and documents.
- Promotes the universal use of electronic transactions in government and among the public.
Scope of Application
- Applies to all electronic data messages and documents in commercial and non-commercial activities.
- Covers domestic and international dealings, agreements, storage, and exchanges.
Definitions
- Defines key terms including addressee, computer, electronic data message, information and communications system, electronic signature, electronic document, electronic key, intermediary, originator, and service provider.
- Clarifies roles and technological aspects related to electronic transactions.
Legal Recognition of Electronic Data Messages and Documents
- Validity and enforceability shall not be denied solely because information is electronic.
- Electronic documents have the same legal effect as paper documents if integrity, reliability, and authenticity are maintained.
- Electronic signatures are equivalent to handwritten signatures if proven reliable by prescribed procedures.
Presumptions on Electronic Signatures
- Presumes that an electronic signature correlates with the person and was affixed intentionally unless proven otherwise or reliance is unreasonable.
Original Documents and Authentication
- Electronic documents meet original form requirements if integrity from generation is evidenced.
- Authentication is by proving the identity of users, devices, or entities via various means, pending Supreme Court rules.
- The burden of authenticity lies with the person introducing the electronic document in legal proceedings.
Admissibility and Evidential Weight
- Electronic documents are admissible regardless of being electronic.
- Best evidence rules apply when electronic data messages meet legal requirements.
- Reliability in generation, storage, and origin identification affects evidential weight.
Retention of Electronic Records
- Electronic retention satisfies original form requirements if usable, accurately formatted, and identifiable by origin and time.
- Use of third-party services is permitted if conditions are met.
Proof and Cross-Examination
- Affidavits may establish admissibility and presumption of integrity.
- Adverse parties have a right to cross-examine deponents.
Formation and Validity of Electronic Contracts
- Offers, acceptances, and contracts may be expressed and proved electronically.
- Electronic contracts are valid regardless of form.
- Bank transactions via electronic networks are consummated upon actual cash dispensing or account debit/credit.
Recognition of Electronic Data Messages by Parties
- Declarations of will shall not be denied effect solely because they are electronic.
Attribution and Error Concerning Electronic Messages
- Messages are attributed to originators if sent by them or their authorized agents or programmed systems.
- Addressee may assume authenticity unless notice of error or unreliability is given or known.
Acknowledgment of Receipt
- Rules govern acknowledgment where agreed or requested.
- Conditional effect upon acknowledgment receipt may apply.
- Failure to receive acknowledgment may lead the originator to treat the message as never sent.
Dispatch and Receipt Timing
- Dispatch occurs when message enters system outside originator control unless agreed otherwise.
- Receipt occurs when entering designated or retrieved from information systems.
Place of Dispatch and Receipt
- Place of business or habitual residence determines place of dispatch and receipt.
- Applies for tax situs and other legal considerations.
Choice of Security Methods
- Parties are free to decide type and level of security methods subject to laws and regulations.
Electronic Commerce in Carriage of Goods
- Electronic acts related to carriage contracts (marking, delivery claims, notices) are valid.
- Electronic transport documents meet writing requirements.
- Paper documents are invalid once electronic documents replace them unless otherwise stated.
Electronic Transactions in Government
- Government agencies must accept, create, and retain electronic documents and signatures within two years.
- Authorizes promulgation of rules specifying format, signature use, security, confidentiality, and payment methods.
RPWEB and Government Information Infrastructure
- Establishes electronic online government network (RPWEB) for transmitting electronic documents.
- Directs cost reduction policies for internet and communication services to government and the public.
Authority of the Department of Trade and Industry
- DTI supervises promotion and development of electronic commerce.
- Empowered to issue rules and certifications and to install public monitoring systems.
Extent of Liability of Service Providers
- Service providers are not liable for electronic messages they merely transmit or store if unaware of unlawful content and do not financially benefit.
- Does not affect contractual obligations or legal duties under licensing and court orders.
Lawful Access and Confidentiality Obligations
- Access to electronic files or signatures only authorized for lawful possession.
- Electronic keys shall not be disclosed without consent.
- Confidentiality is mandated for persons accessing electronic data under this Act.
Penal Provisions
- Hacking and unauthorized system access punishable by fines and imprisonment.
- Piracy and copyright infringement via electronic means similarly punishable.
- Consumer protection violations and other breaches subject to penalties including imprisonment and fines.
Implementing Rules and Oversight
- DTI, DBM, and BSP empowered to enforce and issue implementing rules.
- Congressional Oversight Committee to monitor implementation.
Appropriations and Effectivity
- Funds allocated from the General Appropriations Act for implementation.
- Act effective upon publication.
Interpretation, Variation, Reciprocity, Severability, and Repeal
- Interpretation to align with international conventions and promote uniformity.
- Provisions may be varied by agreement among parties.
- Benefits extended reciprocally where other countries grant the same.
- Invalid provisions do not affect remainder of the Act.
- Inconsistent laws repealed or amended accordingly.