PART I

Short Title and Policy

Section 1: Short Title

● This Act is officially known as the “Electronic Commerce Act of 2000”.

Section 2: Policy Declaration

● The State acknowledges the essential role of Information and Communications

Technology (ICT) in national development and commits to:
○ Creating an ICT-friendly environment that ensures availability, variety, and
affordable access to ICT products and services.
○ Encouraging private-sector investments in telecommunications and ICT services.
○ Developing skilled human resources and a workforce proficient in ICT tools.
○ Facilitating the transfer of technology and ensuring network security, connectivity,
and technology neutrality.
○ Developing national information infrastructures that connect to global networks,
with the necessary legal, financial, diplomatic, and technical support.

PART II

Electronic Commerce in General

Section 3: Objective

● The purpose of this Act is to promote electronic means for domestic and international
transactions, agreements, and the storage of information. It seeks to:
○ Recognize the authenticity and reliability of electronic documents.
○ Encourage the use of electronic transactions by the government and the public.

Section 4: Scope of Application

● This Act applies to all data messages and electronic documents, covering both
commercial and non-commercial activities. This includes domestic and international
dealings, agreements, and the storage of information.

Section 5: Definitions

Chapter I

1. Addressee
 ○ An addressee is a person intended by the originator to receive an electronic
message or document.
○ Example: If a company emails an invoice to a client, the client is the addressee.
2. Computer
○ A computer is any device that can store, process, or retrieve information through
electronic or magnetic impulses.
○ Example: Laptops, desktops, and smartphones used for creating or sending
documents are considered computers.
3. Electronic Data Message
○ This term refers to information generated, sent, received, or stored by electronic
or optical means.
○ Example: A confirmation email for an online purchase is an electronic data
message.
4. Information and Communication System
○ An information and communication system is a setup for creating, sending,
receiving, or processing electronic messages or documents, including the
computers and procedures used.
○ Example: A company’s IT system that manages online orders and customer
emails.
5. Electronic Signature
○ An electronic signature is any unique mark, symbol, or sound used to verify a
person’s identity in electronic documents.
○ Example: An email reply with a typed name, a scanned handwritten signature, or
a click-to-sign option on a contract.
6. Electronic Document
○ An electronic document represents information, such as data, numbers, or
symbols, that establish a right or obligation and is processed electronically.
○ Example: A digital contract file signed and stored as proof of agreement between
two parties.
7. Electronic Key
○ An electronic key is a code securing sensitive information, making it readable
only with a matching key.
○ Example: Encryption keys used in secure online banking transactions.
8. Intermediary
○ An intermediary is a person or service that sends, receives, or stores an
electronic document on behalf of another.
○ Example: Cloud storage providers that store documents but don’t alter them.
9. Originator
○ An originator is a person who creates or sends an electronic document, excluding
intermediaries.
○ Example: The sender of an email with a signed digital contract attached is the
originator of that document.
10. Service Provider
 ○ A service provider offers online or network services for transmitting, routing, or
storing electronic documents.
○ Types:
■ Type i: Providers that enable the transmission or connection of electronic
documents.
■ Example: An internet service provider (ISP) like PLDT in the Philippines.
■ Type ii: Providers that store electronic documents for the originator’s
specified recipients.
■ Example: A file-hosting service like Google Drive.
○ Restrictions: Service providers are not permitted to change the content of an
electronic document unless specifically authorized. They must retain documents
according to client requests or service requirements.

CHAPTER II: LEGAL RECOGNITION OF ELECTRONIC WRITING OR DOCUMENTS AND

DATA MESSAGES

Section 6. Legal Recognition of Data Messages

● Data messages are recognized as legally valid and enforceable forms of information.
● Example: An email containing terms for a business deal has the same legal power as a
paper document with those terms.

Section 7. Legal Recognition of Electronic Documents

● Electronic documents hold the same legal value as traditional written documents,
provided they meet certain standards:
○ (a) Integrity and Reliability of Writing: An electronic document can fulfill a legal
requirement for "writing" if it:
■ Remains complete and unaltered, except for minor changes, like
endorsements, or any changes resulting from regular storage and display
processes.
■ Is reliable for its intended purpose based on all relevant conditions.
■ Example: A digitally stored contract that is unchanged since its original
creation, except for digital endorsements, can be used as proof in a legal
case.
○ (b) Requirement Scope: These conditions apply whether the law requires a
document to be “in writing” or simply outlines the effects of not keeping it in its
original form.
○ (c) Original Form Requirement: If the law requires a document to be in its
original form, an electronic version satisfies this requirement if:
■ There’s dependable assurance that the document has remained intact
since it was created.
■ The document can be displayed to those who need to see it.
 ■ Example: An electronically signed mortgage agreement saved without
alterations since its creation qualifies as an “original document” for legal
use.
● Evidentiary Equivalence: An electronic document is treated like a written document for
evidence purposes.
● No Change to Admissibility Rules: This law doesn’t change existing rules on
accepting data messages in court but specifies how to authenticate them as evidence.

Section 8. Legal Recognition of Electronic Signatures

● An electronic signature has the same legal value as a handwritten signature if it meets
required standards:
○ (a) Identity and Consent: It must show the identity of the person signing and
their access to the document.
○ (b) Reliability and Appropriateness: The signing method must be reliable for
the document’s purpose, considering all relevant factors.
○ (c) Required Signature: The person must add the signature as a necessary step
in completing the transaction.
○ (d) Verification: The recipient can verify the signature and proceed with the
transaction.
○ Example: A customer signing a loan agreement online by entering a secure
password and clicking “I Agree” meets these requirements if the bank has
measures to confirm the customer’s identity and the reliability of the signing
process.

Section 9. Presumption Relating to Electronic Signatures

● In legal proceedings, an electronic signature is assumed to:

○ (a) Belong to the person it’s linked to.
○ (b) Have been intentionally used to sign or approve the document.
○ Example: A digital signature on an employment contract is presumed valid unless
there is evidence of issues, such as a known problem with the signing process or
security of the electronic signature.

Section 10. Original Documents

● An electronic document or data message fulfills the “original form” requirement if:
○ (1) It shows reliable integrity since its final version.
○ (a) Integrity is determined by whether the document remains complete and
unaltered except for permitted changes.
○ (b) The reliability standard depends on the document's purpose and
circumstances.
○ Example: A secure online invoice that hasn’t been edited, except for necessary
system changes, can be presented in court as an “original” record.
Section 11. Authentication of Electronic Data Messages and Documents

● Authentication means confirming the identity of the document’s originator or signatory,

which may include:
○ (a) Authenticating a signature by proving it’s attached to the person named or by
using a reliable verification process.
○ (b) Authenticating a document by proving a reliable security procedure was used,
such as encryption or code checks, to detect unauthorized changes.
○ Example: A company verifies that a supplier’s electronic signature on a purchase
order is authentic by confirming it matches the stored digital signature on file.
● Authentication by Supreme Court: The Supreme Court can add new authentication
methods, including electronic notarization, to certify the authenticity of documents.

Section 12. Admissibility and Evidential Weight of Electronic Messages and Documents

● Electronic documents are admissible in court and considered strong evidence if they
meet requirements of Sections 6 and 7.
○ Example: An online rental agreement complying with Sections 6 and 7 serves as
the best evidence of the terms agreed upon.

Section 13. Retention of Electronic Messages and Documents

● Electronic documents satisfy laws requiring “original form” retention if:

○ (a) They’re accessible for future reference, kept in the same format as received,
and show the sender, recipient, date, and time.
○ (b) A third party can also retain the documents if they meet these conditions.
○ Example: An archived email of a business proposal that can be retrieved and
read later satisfies record-keeping requirements.

Section 14. Proof by Affidavit

● The validity and integrity of an electronic document can be established through an

affidavit, which is a sworn statement confirming authenticity.

Section 15. Cross-Examination

● (1) Anyone who submits an affidavit as evidence can be cross-examined by an opposing

party.
● (2) This also applies to individuals involved in authenticating the electronic document.
○ Example: In a legal dispute, a party challenging the authenticity of an electronic
contract can question the person who signed an affidavit asserting the contract's
integrity.
CHAPTER III - COMMUNICATION OF ELECTRONIC DATA MESSAGES AND ELECTRONIC
DOCUMENTS

Sec. 16. Formation and Validity of Electronic Contracts

1. Contract Formation Using Electronic Data

An offer, acceptance, or other elements needed to form a contract can be demonstrated
through electronic data messages or documents. A contract will not be considered
invalid just because it exists electronically.
Example: If Person A offers to sell an item through an email, and Person B responds
with an acceptance, this electronic exchange can form a valid contract.
2. Electronic Banking Transactions
Transactions between banks or linked systems, like those involving cash withdrawals or
transfers, are completed when the money is dispensed or transferred to another
account. Such obligations are final and cannot be retracted based on priority claims by
other creditors.
Example: If you withdraw cash from an ATM, that transaction is legally binding and can't
be reversed just because another bank creditor claims priority.

Sec. 17. Recognition by Parties of Electronic Data Message or Electronic Document

Between the sender and receiver, a statement or declaration will not lose its legal force solely
because it was sent as an electronic data message.
Example: If an individual promises a payment through an electronic invoice, it is legally valid,
even if only in electronic form.

Sec. 18. Attribution of Electronic Data Messages

1. Attributing a Message to the Sender

An electronic message is considered to be from the sender if they personally sent it.
2. Delegated Sending
The message also counts as the sender's if it was sent by someone authorized or by an
automated system set up by the sender.
Example: A manager's automated email response is considered their own message
because the system sends it on their behalf.
3. Assumption of Origin
The recipient can assume the message is from the sender if they used an agreed
verification process, or if the message was accessed through someone authorized by
the sender.
 Example: A company’s client can rely on an automated email confirmation if it follows
the agreed security protocols.
4. Exceptions to Attribution
The recipient should not assume the message is from the sender if they’ve been notified
otherwise or if they notice irregularities, like unusual sender details.

Sec. 19. Error on Electronic Data Message or Electronic Document

The receiver can treat an electronic message as accurate unless they knew, or should have
known by using reasonable care, that there was an error in the document when it was received.
Example: If a customer receives an email with a quoted price, they can assume it's correct
unless they see an error notice or something looks suspicious.

Sec. 20. Agreement on Acknowledgment of Receipt of Electronic Data Messages

1. Methods of Acknowledgment
If no specific method is agreed, any form of communication or conduct indicating receipt
is sufficient.
Example: An auto-reply email or text response can serve as acknowledgment of receipt.
2. Conditional Acknowledgment
If the sender requires acknowledgment for a document to take effect, it is as if the
document was not sent until the acknowledgment is received.
Example: An e-contract only becomes valid once the recipient confirms receipt if that’s
part of the terms.
3. No Acknowledgment
If there’s no acknowledgment within an agreed or reasonable time, the sender may notify
the recipient and set a new deadline. If acknowledgment is still not received, the sender
may disregard the message.
Example: If a sender expects a contract confirmation and doesn’t receive it within a
week, they can notify the recipient and give them extra time to respond. If no response
arrives, the sender can treat it as if the contract wasn’t sent.

Sec. 21. Time of Dispatch of Electronic Data Messages

An electronic message is considered dispatched when it leaves the sender’s control and enters
an outside information system.
Example: An email is considered sent when it leaves your server and reaches the internet,
even if the recipient hasn't opened it yet.
Sec. 22. Time of Receipt of Electronic Data Messages

1. Designated Systems
If the recipient designated a system, receipt happens when the message enters it.
Example: If a customer designates their work email for order confirmations, the
message is received once it reaches that inbox.
2. Non-designated Systems
If no specific system is chosen, the message is received upon entry to any of the
recipient's systems.

Sec. 23. Place of Dispatch and Receipt of Electronic Data Messages

Unless stated otherwise, the message is dispatched from the sender’s business location and
received at the recipient’s business location. This rule applies even if portable devices, like
laptops, are used.
Example: If a company in Manila sends a document to a client in Cebu, the dispatch location is
Manila, and the receipt location is Cebu.

1. Multiple Business Locations

If there are multiple business locations, the location most relevant to the transaction
applies.
2. Residence Rule
If no business location exists, it defaults to the sender’s or recipient’s residence.

Sec. 24. Choice of Security Methods

Parties are free to choose and use the level of security needed for their electronic transactions,
as long as they comply with applicable laws or guidelines.
Example: Two businesses may agree to use encrypted emails to ensure secure document
exchanges.

PART III - ELECTRONIC COMMERCE IN SPECIFIC AREAS

CHAPTER I - CARRIAGE OF GOODS

Sec. 25. Actions Related to Contracts of Carriage of Goods

This chapter applies to actions connected to contracts for transporting goods. These actions
include, but are not limited to:

1. Information About Goods

Actions such as:
○ Providing details like marks, number, quantity, or weight of goods,
○ Declaring the type or value of goods,
○ Issuing a receipt for the goods,
○ Confirming goods have been loaded.
Example: A shipping company provides an electronic document listing the
weight and quantity of packages for a client. This record is part of the contract for
carrying goods.
2. Terms and Instructions
Actions such as:
○ Notifying someone of contract terms and conditions,
○ Giving specific instructions to the carrier about transporting goods.
Example: A seller emails a shipping company with specific instructions to keep
the goods at a certain temperature.
3. Delivery and Claims
Actions such as:
○ Requesting delivery of goods,
○ Authorizing someone to release goods,
○ Giving notice about any lost or damaged goods.
Example: If a client claims a shipment was damaged, they can electronically
notify the carrier as part of their contract.
4. Other Notifications
Any other notices or statements about fulfilling the contract.
Example: An email updating the delivery schedule due to weather issues would fall
under this section.
5. Delivery Commitment
Promising to deliver goods to a specified person or authorized recipient.
Example: A supplier sends an electronic confirmation that the goods will only be
delivered to the recipient named in the contract.
6. Transfer of Rights in Goods
Actions like:
○ Transferring or negotiating rights in the goods.
Example: An importer electronically transfers ownership of goods to a buyer.
7. Rights and Obligations in Contracts
Transferring or receiving rights and obligations under the contract.
Example: A company selling goods may electronically assign its delivery obligations to a
third-party carrier.

Sec. 26. Transport Documents

 1. Electronic Compliance
When a law requires any contract-related action for transporting goods to be in writing or
documented on paper, this requirement is fulfilled if done through electronic data
messages or documents.
Example: Instead of issuing a physical receipt, a carrier can send an electronic receipt
confirming that the goods have been loaded onto a vessel.
2. Obligations or Legal Consequences
This applies regardless of whether writing is mandatory or there are consequences for
not using a paper document.
Example: If regulations state that delivery must be documented in writing, an electronic
message verifying delivery meets this requirement.
3. Exclusive Rights or Obligations
If a right is granted solely to a specific person and the law mandates a paper document
for transferring this right, the requirement is satisfied by using a unique electronic
document or data message.
Example: A carrier grants exclusive delivery rights to one party using a secure, unique
electronic document rather than paper.
4. Reliability Standard
The reliability of electronic documents must match the intended purpose and
circumstances, including any agreements.
Example: When transferring ownership of valuable goods, the electronic document used
must be secure and reliably identify the parties involved.
5. Termination of Electronic Documents
If electronic documents are replaced by paper documents, any prior paper documents
are invalid unless there is an official termination of electronic communication, and this
termination is noted on the new paper document. Changing from electronic to paper
does not alter the rights or obligations.
Example: If a shipper decides to switch from electronic to paper records, the paper
document must state that electronic communication has been terminated.
6. Mandatory Legal Rules for Paper Documents
If a legal rule applies to paper contracts for the carriage of goods, this rule will still apply
to contracts documented electronically.
Example: If a law requires certain protections for paper contracts, these protections also
apply if the contract is documented electronically.

PART IV - ELECTRONIC TRANSACTIONS IN GOVERNMENT

Sec. 27. Government Use of Electronic Data Messages, Electronic Documents, and
Electronic Signatures
Despite any other laws, within two (2) years of this Act becoming effective, all government
agencies, departments, and government-owned or controlled corporations that require the
following actions:

1. Filing, Creating, or Retaining Documents

Government agencies that require or accept the filing or creation of documents must
allow for electronic data messages or documents.
Example: If a person applies for a business permit, they can file the required forms
electronically rather than submitting physical copies.
2. Issuing Permits, Licenses, or Certificates
Permits, licenses, and approvals can be issued electronically.
Example: Instead of a physical copy, an electronic business license is issued, which is
sent via email to the applicant.
3. Payments and Receipts
The government can accept payments electronically and issue electronic receipts.
Example: When paying fees for a building permit, a business can use online payment
methods and receive an electronic receipt.
4. Electronic Transactions and Functions
Government agencies are authorized to conduct business and perform duties
electronically. They may establish rules, regulations, or guidelines after public hearings
and publication, detailing:
○ The manner and format for creating, filing, or retaining electronic documents.
○ Use of electronic signatures, specifying when and what type is required.
○ Procedures to ensure integrity, security, and confidentiality of electronic records
and payments.
○ Any limitations on the use of electronic documents for government compliance.
Example: The Bureau of Internal Revenue (BIR) may establish guidelines on
how taxpayers should file returns electronically, including the format and security
measures for submitting these files online.

Sec. 28. RPWEB to Promote the Use of Electronic Documents and Data Messages in
Government and to the Public

Within two (2) years, an online network known as RPWEB will be established to support this
Act. It will enable efficient electronic document transmission between government offices and
provide public access to government services. The RPWEB network will connect various levels
of government (departments, agencies, local government units) and be accessible to the public.

Purpose and Infrastructure

The RPWEB network will:
 1. Serve as a Platform for Government Information Infrastructure (GII)
This infrastructure aims to make government services available electronically, improving
as technology advances.
2. Utilize Advanced Telecommunications Systems
RPWEB will use various technologies, such as fiber optics, satellites, and wireless
networks, to ensure wide and accessible coverage.
Example: Citizens in remote areas may access government services online using
satellite connections.
3. Reduce Internet Access Costs
The Department of Transportation and Communications, the National
Telecommunications Commission, and the National Computer Center will work to lower
internet access costs for government and the public.
Example: This includes making broadband and wireless access more affordable, so
citizens and government offices can more easily connect online.
4. Establish a Government Portal and Domestic Internet Exchange System
The RPWEB network will include a government website portal and a system to improve
local internet traffic. This will enhance public access to government services and
communication between agencies.
Example: The government portal will centralize access to various services like filing
taxes, renewing licenses, or applying for permits.

Sec. 29. Authority of the Department of Trade and Industry and Participating Entities

The Department of Trade and Industry (DTI) will oversee the promotion and development of
electronic commerce in the Philippines, in collaboration with relevant agencies. However, this
does not affect the authority of the Bangko Sentral ng Pilipinas (Central Bank) and banking
regulations.

Powers of the DTI

1. Regulation and Quality Standards

The DTI may create rules, regulations, and quality standards to implement this Act,
including:
○ Certification processes and standards for electronic commerce.
○ Installation of an online public information and quality and price monitoring
system for goods and services.
Example: If a company wants to sell products online, the DTI might issue
certifications verifying that the products meet quality standards.
2. Protecting Consumer Interests
The DTI will work to protect consumers who take advantage of electronic commerce
benefits, ensuring fair pricing and quality for goods and services purchased online.
Example: An online tool on the DTI website may allow consumers to compare prices for
products and services from different vendors.
PART V - FINAL PROVISIONS

Sec. 30. Extent of Liability of a Service Provider

No service provider is liable for content in an electronic data message or document they merely
provide access to unless:

1. Contractual Obligations
Any existing agreements or contracts will still apply.
Example: If a service provider has a contract with a client to ensure certain security
measures, they are liable if they fail to uphold these measures.
2. Knowledge of Unlawful Content
If the provider is unaware of illegal content or does not financially benefit from unlawful
activities, they are not liable.
Example: An internet provider is not responsible if someone uses their network to share
pirated content, as long as the provider did not know or benefit from it.
3. Compliance with Laws
If any written law imposes obligations, they remain in force.
Example: If there is a law requiring service providers to remove harmful content when
notified, the provider must comply.
4. Court-Ordered Actions
If a court issues an order requiring the provider to block access or remove content, they
must comply.
Example: If a court orders a provider to block access to pirated content, they are legally
required to do so.

Sec. 31. Lawful Access

Access to electronic files, signatures, or messages must be authorized and only granted to
those with a legal right to use them. Electronic keys (used for identity verification) cannot be
shared without the consent of the authorized user.
Example: A person’s digital signature for a document cannot be used by another person unless
they are given explicit permission.

Sec. 32. Obligation of Confidentiality

Anyone with access to electronic data (like electronic keys, messages, or documents) must
keep this information confidential and only use it for the purposes authorized by this Act.
Example: If an employee has access to a company’s encrypted data for a project, they cannot
share this information with anyone outside the authorized team.
Sec. 33. Penalties
The following acts are punishable by fines and/or imprisonment:

1. Hacking (Unauthorized Access)

Unauthorized access or interference with a computer system is punishable by a fine
starting at PHP 100,000 and imprisonment for six (6) months to three (3) years.
Example: If someone hacks into a government database to steal information, they could
face this penalty.
2. Piracy (Unauthorized Copying or Distribution)
Copying or distributing copyrighted materials without permission is punishable by a
similar fine and imprisonment.
Example: If a person uploads copyrighted movies to a public website without
permission, they are liable.
3. Consumer Act Violations
Violations of laws, such as Republic Act No. 7394, committed through electronic means,
are punishable by the penalties in those laws.
Example: A business that falsely advertises products online could face penalties under
the Consumer Act.
4. Other Violations
Violations not specified here are punishable by a maximum fine of PHP 1,000,000 or up
to six (6) years of imprisonment.
Example: Falsifying electronic records in a government system could result in these
penalties.

Sec. 34. Implementing Rules and Regulations

The DTI, DBM, and Bangko Sentral ng Pilipinas (Central Bank) will enforce this Act and issue
any necessary regulations. They will coordinate with other agencies to implement these rules
within sixty (60) days of this Act’s approval.

Sec. 35. Oversight Committee

A Congressional Oversight Committee, consisting of members from various Senate and House
Committees, will monitor the Act’s implementation. This committee will receive quarterly reports
from the DTI, DBM, and other agencies on their actions for the first three (3) years.

Sec. 36. Appropriations

Funds to carry out Sections 27 and 28 of this Act will come from the General Appropriations Act
of 2000 for the first year, with ongoing funding included in the annual appropriations.
Sec. 37. Statutory Interpretation
The interpretation of this Act should promote uniformity with international standards and support
good faith in international trade. Principles of international law and e-commerce conventions
should also be considered.

Sec. 38. Variation by Agreement

Parties involved in the use, storage, or handling of electronic messages or documents may
agree to vary the provisions of this Act among themselves.
Example: Businesses engaged in e-commerce may create specific agreements on how
electronic documents are handled.

Sec. 39. Reciprocity

Only parties whose home countries grant similar benefits to Filipino citizens will enjoy the
benefits and privileges under this Act.

Sec. 40. Separability Clause

If any part of this Act is declared unconstitutional, the remaining provisions will still be in effect.

Sec. 41. Repealing Clause

All other laws or parts of laws that are inconsistent with this Act are amended, modified, or
repealed accordingly.

Sec. 42. Effectivity

This Act will take effect immediately after its publication in the Official Gazette or in at least two
(2) national newspapers.