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Chapter 12
E-COMMERCE ACT
e&>
REPUBLIC ACT NO. $792
«sani ACTPROVIDING FOR THE RECOGNITION AND USE OF
LECTRONIC COMMERCIAL AND NON-COMMERCIAL
,NSACTIONS AND DOCUMENTS, PENALTIES FOR UNLAWFUL
m ‘USE THEREOF, AND OTHER PURPOSES"
jfRODUCTION
ype The E-Commerce Act (Act) aims
tin faslitate_domestic_and_international dealings, transactions,
amangements, agreements, contracts and exchanges and storage of
information through the utilization of electronic, optical and similar
‘dium, mode, instrumentality and technology,
ACT
2 ‘orecognize the authenticity and reliability of electronic data messages
srelecronic documents related to such activities and
3 b promote the universal use of elect saci
‘remment and by the general public.
{her of Application: The Act shall apply to any kind of electronic
ent used in the context of commercial and non-commercial activities
‘kindle domestic and international dealings, transactions, arrangements,
‘sssvens contracts and exchanges andl storage of information,
Nation of Te
ms: For the purposes ofthe Act, the following terms are
Seed, as follox iia: w
vga ‘fers to any device or apparatus singly or interconnected
oe ys etonic, electro-mechanica, optical and/or magneticimpulee, ot
'SRs with the same function, can receive, record, transmit, store,
545 36mg | gat
pros cols aa, projets reve, ar pau | Hue any ent then on shal fe nat adden
Sim et pis gue, Tle, eo mb er ling |, OME py urn spec outna ee
eeprom pevform anyone more thes fanctiong, may] ne elec dOCUMER In Actas withthe specie ut
1] ery or the purpose of erormingthesernes
“tnformation and Communications. System™ refers jg 1» Meese 8 apa
gener sdng csing storing. oF thee pg My | gs
documents and inhies the computer system o others
inch data ecard and any prea
oy
recording o storage of electronic document.
:
svi signature’ refers to any distinctive mark, characteristic andlor
telecon frm, representing the identity of» person and atached
ally associated with the electronic data message or eletenic
oat heron any methodology oF procedures employed or adopted by a
sear executed of adopted by such person with the inention of
sereatng OF approving an electronic data message or electronic
pose
“Originator refers to person by whom, oF on Whose Behl.
document purports to have been created, generated sndigs
does not inchde a person ating as an intermediary win ete
electronic document. "pet
“Adresse” festa person who is intended by th rg
th econ data mesnge or etre document bu ene
Peron atngs artterrelary with respect otha ce
tronic data ma
or electronic data document. bend
toni Key” refers fo a sere code which secures and defends sensitive
domalon that rossover public channels int form decpherable only
tieematching electronic key.
ltermediary” refers to person who on Behalf of another pesen mia
respect to a particular electronic document sends, receives andi
provides other services in respect of that electronic date nesap |
electronic document.
‘uectonie document” refers to information or the representation of
siceation, data, figures, symbols or other modes of written expression,
seabed or however represented, by which a right is established, or an
‘iption extinguished, or by which a fact may be prove and affirmed,
Mick is receive, recorded, transmitted, stored, processed, retrieved or
ced electronically.
“Service provider refers toa provider of
1 Online services or network accessor the operator of faites Se
including entities offering the transmission, routing, or pov
connection for online communications, digital or these ete
among point spciied by a user, of electronic document fe
choosing oF
2 The necessary technical means by which electron dune ®
cvigiator may be stored and made accesible to éeigatl*
undesignated third party.
UGAL RECOGNITION OF ELECTRONIC DATA
MESSAGES AND ELECTRONIC DOCUMENTS.
SSSAGES AND ELECTRONIC DOCUMENTS
EL Eegntion of Electronic Data Messages: Information shall nat be
salty or enforceability solely onthe ground tat itis in the form
{stoic data message purporting to give ist such egal elect, o that
‘sy incorporated by reference in that electronic data message
‘Such service providers shall
Have no authority to:
4. modify or alter the content of the electronic documest
precio
347 548EG,
LEGAL RECOGNITION OF FLECTRONICDocuMtsts iene
Fletroniedocuentsalhav the legal effet liye ng ite ceconi dna a 2% ea by te
any other document or legal writing, ancl rea, | pts existed under which-
a. Where the lave requires document to be inswriting thy t|
met by an electronic document if the sai electronic ge,
IP antains its integrity and reliability ana cath
{kan Be authenticated 3095 to be usable for sub
that: =e ey
1) The cetronic document has remained com
change, of any change which arses inthe none
communication, storage and display; and <
‘Theclectronie documents reliable nthe igh of he
which twas generated and in the light og ge?
Sieumstances Now
8 Paragraph applies whether the requirement thecn sn ef,
an obligation or whether the law simply provides consequanarnt
document not being presented or retained in its original rom.
Where the Ta equtes thet «docsment be presented or wea
xiginal form, that requirements mel by a electronic decemere
i there exits a reliable assurance a8 tothe ints of doce
from the te when it was Sst generated in it fal orm an
41 That documents eapable of being displayed tthe pes nthe
its to be presented: Provided, That no provision he ha
apply tovary any and all requirements of exiting lawson mie
requited in the execution of document fo heir ality.
e
For evidentiary purposes, an electronic document shall be the fase!
equivalent of a written document under existing laws
The Act does not modify any statutory any statutory re at
admissibility of electronic data massages or electronic document
the rules eating to authentication and bes evidence.
Legal Recognition of Electro
mic Signatures: An electronic sigs
electronic document shall be equivalent tothe signature of 359°!
WRITTEN DOCUMENT if:
a thesignature san electronic signature and
9
4. Sjetronic document was fenerated or commie
ne iyo used 10 deny the pony ape oe bet
A mete oid party's acces the latonc Secret
sedtonsent oF approval through theeletroncsignanse
‘gmat is liable and appropriate forte ppc for whieh
ted, inthe light
tr drcumstances,incuding ary relevant agremens .
srisnecessary forthe arty sought tobe bound, inorder to proceed
farther with the transaction to have executed or provided the
‘Garon signature; and
iy Te other party i authorized and enable to verity the electronic
signature and to make the decision to proceed with the wansaction
Juthentcated by the same,
yypTioN RELATING 70 ELECTRONIC SIGNATURES
vay proceedings involving an electrone signature it shall be presumed
Pye Sectronic signature is the signature of the person to whom it
conlates: and
4 Te electroni signature was affixed by that person withthe intention
oisigning or approving the electronic document unless
the person relying on the clectronically designed electronic
document knows or has natice of defects in or unreliability ofthe
signature or
1 reliance on the electronic signature is not reasonable under the
itcumstances,
Suciat Documents
1 Wher the law requires information tobe presented or retained in its
ORIGINAL FORM, that requirement is met
'essageor electronic document if
yy an electronic data
the Integrity of the information from the time when it was first
Benerte in its final form, as an electronic document i shown by
{vidence aliunde or otherwise; and
‘where otherwise itis required that information be presented, that the
information is capable of being displayed to the person to whom it
istobe presented,
550Ean,
sagaph apts whether te requiem therin i
Fae chic thea simply Provides ene eh
msionnrag prc dn pa
Fact purpose of sbparagraph (of pargraph ()
1 emed complet ad tale, spa a SN,
any endorsement and any change which arses in the nag
we Stimmeno, storage ond cplays ond |” "ge
thestandard fab requ shal be astesedg
pon rich he information was genet san hy
ithe relevant circumstances me
AUTHENTICATION _OF ELECTRONIC AM
ELECTRON ENTS: “ASE
Until the Supreme Court by appropriate rules shall have ap
clectonie documents, electronic data messages and clvten
Shall be authenticated by demonstrating, substa
claimed identity of a user, device, or another entity
communication system, among other ways, as follows,
4 The eleczone signatures shall be authenticated by prot tt ing
character, number or other symbol in electronic form repreentan
persons named in and attached to or logically assoste! wake
electronic data message, electronic document, or thatthe appoget
methodology or security procedures, when applicable, were ay!
‘or adopted by such person, with the intention of authentitag
approving in an electronic data message o electronic document
The clectronic data message or electronic document shil
authenticated by proof that an appropriate security procedure wit
applicable was adopted and employed for the purpose of
i: verifying the originator ofan electronic data message or dst
document, ot
detecting error or alteration in the communication, cnt
storage of an electronic document or electronic data mesa!
specitie point, which, using algorithms or codes, identifying
oF numbers, encryptions, answers back or acknowl
rocedures, or similar security devices.
nea
mh
oe
Tht
The Supreme Court may adopt such other authentication PO
including the use of electronic notarization systems as nec?
551
peor evs
wR gswel asthe cette of auhenationon pa
_ysttetsNedacuments or elecroniedata mesg
ese and le duly recs a ap
-
ities
oti
ne eeeoae ee
Proof: The per 8 luce an electronic data message
seta cuter in any legal proceding hs hebandecct ores
Pasty endence capable of poring finding den reese
ia incre doctent What epee ae
bec
of the Information and Communication System: a the absence of
a be rar the integrity ofthe information and communication
ie which an electronic data message or electronic document to
‘ret ufor stored may be established in any eg proceeding —
‘evidence that
2» Pall material times the information and communication system or
caer similar device was operating in a manner that didnot affect,
the integrity ofthe electronic data message or electronic document,
and
there ate no other reasonable grounds to doubt the integrity ofthe
information and communication system,
5 showing thatthe electronic data message or electronic document was
recorded or stored by a party to the proceedings who is adverse in
interest tothe party using it; or
By showing thatthe electronic data message or electronic document was
"worded or stored in the usual and ordinary course of business by a
Feson whois not a party tothe proceedings and who did not act under
‘be contol of the party using the record,
ADMISSIBILITY AND EVIDENTIAL WEIGHT OF ELECTRONIC DATA
LLECTRONIC DocuMENT
‘yg roredings, nating nthe apltion of he ues onedence
deny the admiablty ofan electron data message o lecnie
nl inerdence
One ste ground ha
ted or hard copies
ectronie notaries,
ined certification
{in electronic form; or
cage 8tOund that it is not in the standard written form, and the
aon data message or electronic document meeting, and complying
"WY the requirements under Legal Recognition of Electronic Data
52"ny,
shal ‘
erate,
nic Documents mentioned above,
Messages and Electronic Doct
aiidere ofthe agreement and transaction contained
Inassessing the evidential weight f an electronic data meses
‘document, the fllowing shall be given due regard: oy
the rity of the manner in Whi HC Wa8 generate
communicated, on
heeft mania wich rao dag,
© ter rtevant factor lg
Retention of Electronic Date Message or Eetong
Natithonding any provson fa rl regulation os eee
te manent any provton of nw tt ee ee
rtsined inthe orginal fom os
ich
tf
Sentoring
ely reser
Bene sete
i. Remains acessible 502s tobe usable for subseque,
4i, Is retained in the format in which it was generated,
‘rina format which ean be demonstrated to accura
clectronic data message or electronic document
received;
i. Enables the identification ofits originator:
the determination ofthe date and the time it was sentor earn
'b. The requirement referred to in paragraph (a) is salistied by aye
services of a third party, provided that the conditions at long
subparagraphs (1), 2) and (3) of paragraph (a) are met,
and addressee, aby
Proof by Affidavit: The matters referred on admissibility and os
integrity, may be presumed to have been establshal lye
affidavit given tothe best ofthe deponent’s knowledge subject tole
of partis in interest as defined in the cross-examination provided elev
ross - Examination:
1. Adsponent ofan alfidavit refered to above that hasbeen
evidence may be crossexamined as_of right by a pst’ ®
Droceedings who is adverse in interest to the party who has it
‘efit or has caused the afdaittobeintoduceds y
% Any paty tothe proceedings has the right to eross exami»
rho is not party to the proceedings and who did no 3c
‘control of the party using the record proving thatthe ele®®
553
ort
(gags icon dOCUMEDI WA crdeortoredin the usual and
Soyo
um ECTRONIC DATA Messacts on
iow of Validity of Electronic Contract:
ws
fps otherwise agreed by the parties, ) an offer, 2) the acceptance
1 Bet eeand G) such other elements required under ening es oy
Sotormati may be expressed in, demonstrated and proved
rans of electronic data messages or electronic documents and ro
esl be denied validity or enforceability on the soe recur ee
oan frm ofan electronic data message or clectenc deument oe
‘ary or all of the clements required under existing ln fo the
‘inaton of contacts expressed, demonstrated and proved by nears
‘Theeronc data messages or electronic document
Sewonic transactions made though networking among banks, or
nage thereof with ther entities onetwors, and vice vera
1 sal be deemed consummated upon the actual dispensing of cash
erthe debit of one account andthe corresponding ered to another,
wether such transaction js intated by the depositor or bya
tutored collecting prt.
‘The obligation of one bank, entity, or person similarly situated to
nother arising therefrom shall considered absolute and shall not be
subjected to the process of preference of credits.
opin by Parties of Electronic Data Mesag 7 Fectoncdacment:
he orgintarand te addressee oan tole das meses
‘earic documen a decnain of wil or eher sateen chal no be
etic val reabliycly onthe ground tat tit
"om ofan electronic data message rector donumet
Sedation of lectroic Data Message:
"Be econic Data Mestage or Haconi Document is that of the
ett :
‘twas sent bythe originator hime
* As betveen the originator and the addressee, an electronic data
att28e or electronic documentis deemed tobe that ofthe originator
iit was sent
554"ong
who had the authority to act a
a wothatelectroniedata menses
Crigiator wih respect data message
document; oF
bya e Programmed by,
yo ernest bag
2 ase eng a i 9 rg
wr aletonic data message or electronic docums
raat spar and aston that assumption it "tags
sie oner to ascertain whether the electronic dat
dletronic document was that of the originate, Ss
properly applied 4 procedure previously agreed yt
Originator for that purpose; or ms
b theelectonicdata message o electronic documenta rey
‘are rented fom the actions ofa pemon nies
with the originator or with any agent of the originator seen?
electronic data message or electronic documents ashveee
The above doss not apply:
4. asofthe tine when the addressee as both received note fens
‘originator that the electronic data message or electronic osm,
not that of the originator, and has reasonable tine
accordingly; or
fi. ina case within paragraph (2) sub-paragraph (a nye
the addressee knew or should have known, had it oxi
reasonable are of used any agreed procedure, thatthe elena
‘message or electronic document was not that ofthe oigiut
{i That the transmission resulted in any error in the eco dt
‘message or electronic document as received.
The addressee is entitled to regard each electronic data meats
clectronie document received as a separate electronic data mest
‘lectronic document and to act on that assumption
Except et
‘To the extent that it duplicates another electronic dats ™
electronic document and os
b. The addressee knew or should have known, had i &
reasonable care or used any agreed procedure, thatthe ©
data message or electronic document was a duplicate.
555
on
she een
i! ch the eignator intended to send ano ston tat
so
» ja messane
. jnformati
LN
1 Data Message or Electronic Document:
_etctro tment: The addressee is
zo Beettaed the electronic data message or electronic docenent
the addressee knew or should have known, had the
* feised reasonable care or used the appropriate procedure —
transmission resulted in any error therein or in the electronic
the
b 1 electronic document enters the designated information
spit Chronic data message or electronic document is sent to an
jon system which is not so designated by the addressee for the
spose
sement_of Receipt of Electronic Data Message or Electronic
ponent
arn tule: No acknowledgment of receipt is necessary
snes
1 Bie parties agree to it
1 Originator quested in the EDM/ED
is ofacknoledgement when required
1 Ageement as to particular method ~ to be followed
2 Noagreement as to particular method:
4 Any communication by the addressee
1. Any conduct ofthe addressee suficient to indicate the receipt to the
criginator
‘nies when the originator con regard non-receipt since there was no
{aiedgment:
the originat
iginator stated the effect or significance of
sSsewledgment or the ED is CONDITIONAL upon receipt
Nestlementastoeffet/sigifiance originator gave note tating that
pantotledgement has been received and specifying a reasonable time
ich acknowledgement is to be received, and no acknowledgement
‘ceived within such reasonable time.
556Com,
Fe aiema Secoen Dae Meeps 6a
neo Disa of te Mente oF tr
Genet fates dpa of om let ala mesg “Dn,
se uco anintceaon ora
‘sqitigun ant pon wo sone oe
sn ont ah gto
Except: when otherwise agreed upon.
Time of Resipt of Hectronie Data Messages or Electron
Unies otherwise agreed between the originator and the ma
fxn ofan cectronic data message o electronic dacamene
4 ry in the designated info
designated an formation sytem forthe purpose roy
data messages or electronic documents "Seen,
. eval the adresse
i Thereisa designated information sytem, bu bw
addressee are both paripant in
srstems
i The electronic mess
Infomation system of
information stems
« y infonnation system of
id not designate an information sytem
ia
We oF electronic document een g
the address that is not the deus
The pig
‘These rules apply notwithstanding that the place where the inaia
system is located may be different from the place where the deceit
‘message or electronic document is deemed to be received.
Place of Dispatch and Receipt of Electronic Data Messages or Het
Documents: Unless otherwise agreed between the orgies! ©
addressee an electronic data message ot electronic document is deat”
be:
1. ispatched at the place where the originator has it ple fe
and
2. received at the place where the addressee has its place of busines
ts abet
Ts rae shall apply even ifthe rginator or adresse had ws)
oer portable device to transmit or received hs electronic 8 ™
357
preview
sc document TRE TU shal ss poy to determine he toe sas
otto
“
sate Tem ginator oF adresse has more than one place of business is
whos thease slatonship othe ondetyng arson
ot Wipre iso underiying transaction the puinipsinin ne ne
na gator oF the adresse dacs nt have Sto oe ee,
Trim ce ito be made to its habitual residences or
cot oual place of esi dence” in cation toa body corporate meanethe
«Me where its incorporated or thers legal conta
of Seeity Methods: Subject to appicabe laws and for rules and
Le eye Dak a ak
arses toany electronic transaction salle fe
‘ pgummne the type of level of electronic data message or electronic
* ewment security needed, and
» Togsleandus orimplement appropriate technological methods that
sattheir need.
i
ELECTRONIC COMMERCE IN CARRIAGE OF
Goons
‘Wo Relate to Contracts of Carlage of Goods applies any salon
roto wth, on pursuance of, contrat of cariage af goods including
‘nctiite to
* rising the mark, number, quantity or weigh of goods
‘at or declaring the ntute or vale of goo
Gisung a receipt for goods;
{cofrming tha goods have been loaded
{eating a person of terms and conditions ofthe contac:
(9 ving instructions toa carrer
{ching detivery of goods,
‘euthorizng release of goods
UEP notice of los of or damage to goods
EBARY ther notice or statement in connection with the performance
eran
‘cain da
' to deliver goods toa named person or a person authorized
livery;
558Conn
Mey,
renouncing, surrendering, 4,
7 a
granting, acquiring
in good
negotiating rights in
transferring rights and obligations under .
15 acquiring or transferring rg 8 Me he cag
rma Docu santo
here requires that ny action refered a conte,
goods be cid ut in writing oF By using a paper gpg
Fequroment is mt f the action is cared out by tag MON
tectonic data mesages or electronic documents, SE ert
Te aboe apples whe the resumen heen ney
bition or whether the lw simpy provides consequat
cierto cary out the ation in wring oto use a pape ees
2. li(@asghtis tobe pated 6,7) an obligation hese
cos pero rn eon ad ifthe a requires ees
th the gt or elgtion must be conveyed to tar
tnd oso pape dowment hat onenny eaes
or obligation is conveyed by using one or more electronic dan ct
orckectonidocumets: Prt hat areale methodist
such electronic data mesages or electronic documents ga,
For the purposes of above, the standard of reliability eguied sat
assessed in the ight ofthe purpose for which the right orsguasns
‘conveyed and inthe light of ll he cicumstancesincludingat ree
agreement.
3. Where one or more electronic data messages or electron docunesie
used to effect any action in subparagraph (?) and (g) ofthe abot
Related to Contracts of Carriage of Goods), no paper docu eet
effect any such action is valid unless the use of electronic data et
or electronic document has been terminated and replaced by the seid
Paper documents. A paper document issued in these sixomsss
shall contain a statement of such termination. The replacement
electronic data messages or electronic documents by paper docs
shall not affect the rights or obligation of the partis involved.
4 Ifa mule of lw is compulsorily applicable toa contact of a=
00% which isin, or is evidenced by a paper dacument ti 2
at be inapplicable to such a contract of carriage of ems
‘evidenced by one or more electronic data messages oF ay
documents by reason ofthe fact that the contract is evident
559
ee
aie
ret onic dla MESSAGE OF eecronic documents insted of by a paper
“en
ONIC TRANSACTIONS IN GovERNMENT
cai Use of Eleclronic Data Messages, Electronic Documents and
a signature: Notwithstanding any lw tothe entasy tng ts
si the date ofthe effectivity ofthe Ac all departmente bereses,
agencies of the government, as well as all goverment ovmed acl
rao tht pursant ww rele
sn hinge
ra emoer rete egntcon ops
Md oad maseet ct payment orate
egret sal
cpa cnaen inngecimeleastant erscuwie boon
* Getronic data messages or electronic documents;
Spablteenla trannies ae
i Forest document
Sa mianemennaiie neice
roca icaghtpiene wing cecercdsh ome ese
=
t, tnsttiatjreceet ipa lieutenants
ap shinehs hie smo @ seains Attiocaeens ete
pene shied to adap and prong ae spo
rie ting and wih dae pubes in Seopapre of eee
Graton thr appropiate dey reunion e udcinos taco
thers, specify —
1 he manner and format in which such een data mesageso
store document calle fe, rene rend or anes
2 whet ard when such elecni at mengen or tone
dicomenishave signe, he use aneonigatre te pe
Stern sgntre egies
the fomat ofan lcront data esag or eacronic document anid
the manne the sleone signature sl baled ot cet
Aas meget ocuent
{he control processes and procedures appropriate toensure adequate
integrity, security and confidentiality of electronic data messages or
‘lectronic ‘documents or records of payments;
560EConing
ied to electronic data messagy sion of a service provider as such under a licensing or other
regime established under written law,
i
gst gion imposed under any writen law;
‘yeni of any party othe exert tat such abit forms the
or attributes requit org.
* SS cmenteand *
scum cof the dOcaent and paper,
5 men orem Pvt Ta My
i aay epee ofthe govern, eA,
a a aon oop nay acme agh
Stctrnc data mesngeso electron docimet iene
pronation an pbleton teapot ys
guidelines.
OBLIGATIONS UNDER THE E-COMMERcE. Act
sre ot
lief issued by a court under any aw requiring that
je provider take or refrain from action necessary to remove,
ec ny 2
erfaeny acess t0 any material orto preserveevidence of violation
a
tse Nc ce tx ctr ete fn
i scoala can tea age
cfd Me use of plaintext, electronic signature ov ile o solely forthe
vorized PUTPOSES: ‘The electronic key for identity or integrity shall not be
ije available to any person or party without the consent of the individual
a Pe
Extent of Liability ofa Service Provider:
GENERAL RULE: No person or party shall be subjecttoanyevio
Tablity in respect ofthe electronic data message or electronic nea
eich the parton or party cing aS a service Provider, meni reed
access if such lability is founded on, Te elnatiael ergo emma e we |
secre Act, any person who obtained access to any electronic key,
ficrnie data message or electronic document, book, register,
Sroponéence, information, or other material pursuant to any powers
tered under the Act, shall nt convey toorshare the same withany other
pom.
INCLUDING: The making, publication, dissemination or distin y
such material or any statement made in stich material, including pt
inftingement of any right subsisting in or in elation to ai
‘material. Provided, That:
1. Taeservice provider does not have actual knowledge, ors otawand
the facts or circumstances from which itis apparent, that the my
publication, dissemination or distribution of each material isunlave
infringes any rights subsisting in or in relation to such materia
2. The service provider does not knowingly receive a financial tao
Uhl Acts and Penalties: The following acts, shall be penalized by fine
‘ir imprisonment, as follows:
tara Description Penalty
directly attributable tothe unlawful orinfingingactviyiaml | | a. Fine | Imprisonment
3. Theservce provider doesnot directly commit any inringent "| Thang Gnauthorized_access into or [Min] 6 months to 3
unlawful act and does not cause another person or patytooee | x” | ineeference. in a computer | P100.000 | years
Jovsting_ | systemy/server or information
‘and communication system; or | Mac =
any access in order to corrupt, | damage
alter, steal, or destroy using a | incurred
infringement or other unlawful act and/or does not benefit fi
fom the infringing activity or unlawful at or another person
EXCEPTIONS: ico
1 The obligations and liabilities of the parties under the esse computer or other similar
‘message or electronic document information and
communication devices,
2. Any obligation founded on contract;
Lwithout the knowledge and
561 saaalawfal
‘Description
Act
Tonsent of the owner of the
Computer or information and
Communications system,
feuding the introduction of
computer viruses and the like,
fesuting in the corruption,
Gestruction, alteration, theft or
toss of electronic data
messages lectronic
documents,
Pinaey
the unauthorized copying,
reproduction, dissemination,
fF distribution, importation,
‘use, removal, alteration,
substitution, modification,
storage, uploading,
downloading, communication,
‘making available tothe public,
or broadcasting of protected
material, electronic signature
for copyrighted works
including legally protected,
sound recording 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
Min
100.000
Max =
damage
incurred
Description poate
Imprisonment
Fine
Gaia messages or electronic
documents
violations of the
provisions of the E-Commerce
Act
Max
1,000,000
‘Max~ 6 years
interpretation: Unless otherwise expressly provided for, the
am ofthe E-Commerce Act shall give du regard t
. P4000,000, Robin is entitled to regard each electronic document
"ecived as separate electronic document.
© 73000,000, Duplicates of electronic documents are only given one
Yalfofits intended eectivity
568ECan sr evionet
* yEs TO MULTIPLE CHOICE Questions
me
4d. No liability. The apparent duplication of the o
ectrone
invalidates all that has been received. do,
18, theaddresse and the originator are both porticipans in
information sen tenet eeaptof decree ete | &
2 Upon nt inthe designated formation same pee | |
Upmmsending bythe ergnator S
© Upmmacnowedgment feet by the addressee Me
4 Upmsctivaly the addressee “
A
14, Andon contact os ofservces wa ented oy us
tno Patikina resident Morkna with prin ee
In Quezon City wile Bob sa resident of Pag with eb |
business in Mandaluyong, While Patrick was on vacaee tf | §
Bob sent a contract of sale to Patrick. Patric, through he sce |
sme
opened the document at Cebu iy. Whee oe EP
sale received? eoreg
2 Nerina
8. Quezon city
© Pasig
& Cabucuy
15. Statement 1: Where the law requires that any action referred oemins
‘of carriage of goods be catried out in writing or by using spy
document, that requirement is met if the action is caved oat byw,
‘one or more electronic data messages or electronic documents.
Statement 2: Parties to any electronic transaction shall be ine
determine the type of level of electronic data message ot elem
document security needed,
Only Statement 1 is true.
. Only Statement 2is true
© Both statements are true.
4. Both statements are not true.
569 370D,
10 Mig
[SE
DATA
PRIVAGY ACT
sm
ares
ye
Chapter 13
DATA PRIvAcy AcT
C&S
periNITION OF TERMS
all refer to the Nat
ynal Privacy Commission created by virtue
o
ibis Act
sent of the data subject refers to any freely given, specific, informed
Shoton of will, whereby the data subject agrees to the collection and
‘sing of personal information about and/or relating to him or her.
Ere shall be evidenced by written electronic or recorded means. It may.
‘anbegiven on behalf of the data subject by an agent specifically authorized
Iytedata subject to do so.
Dt subject refers toan individual whose personal information is processed.
Dict marketing refers to communication by whatever means of any
shetising or marketing material which is directed to particular individuals.
‘ig system refers to any act of information relating to natural o juridical
Fons to the extent tha, although the information is not processed by
‘tifent operating automatically in response to instructions given for that
ite the set is structured, either by reference to individuals or by
net {© cileria relating to individuals in such a way that specific
on relating toa particular person is readily accessible
y
=e and Communications System refers to a system for generating,
craee ceiving, storing o otherwise processing electronic data messages,
cet documents and includes the computer system or other similar
" O which data is recorded, transmitted o stored and any procedure
57Pau sr eviewe"
lat tothe coding trnamison or lorage of cco gf wt
message or eletronic document a
Personal infomation contre fers & P50 oF ogy
sonia te cllecion holding, processing oF use of pers an
including @ person or organization who. inst —
‘organization to collect, hold, process, use, transfer .
information on his or her behalf. The term excludes: “se
1. A person or organization who performs such function ay
ost,
7 ingle mao a
1 He atural and juridical person involved in peconal infomation
1 Teaming including those personal inmates meee
sexs who although not found or estabiched ina Philippines, use
sre tat ae located inthe Philipp
nes, oF those who maintain an
carrench oF agency inthe Philippines ra
another person or organization; and
= jet to the immediately
ing ara
2. An individual who collects, holds, processes og ea
{information in connection with the individual's persgest? Poe apply to:
Nowhere mn | shout any nds wt or wan fer orempayee
+ Sagaverament institution thet relates tothe postion orfuncton tenes
Fenonal information proceso refers to soy natal or jt, | Miki nding
ceaheller map oatonate acy this Act to whom a petonalinggett | The act that the Individual sor was an offeror employee of he
Contller may outsource the procesing af person dae erent insttion,
sujet Sale} he tle, busines address and ofce telephone number of the
individual;
[HLUSTRATION® the Taman Resource Department Teale Gp
}epartment, headed BB]
Executive Vice President for HR, is tasked to collect infrmsta
applicants who may eventually be hired and oin the company sug
to the directives of the Board of Directors. in this case, the EVP fen
the Personal Information Processor because he/she prowess
{information only through the directives of the Boatd of Diretors tlie
being the Personal Information Controller,
‘The classification, salary range and responsibiliies of the postion
bold by the individual; and
‘The name of the individual on a document prepared by the
individual inthe course of employment with the government:
!nlormation about an individual whois or was performing service under
‘ontract for a government institution that relates to the services
Fesformed, including the terms of the contact, and the nanve of the
‘advidual given in the course ofthe performance of those services
5 Isormation relating to any discretionary benefit of a financial nature
‘schas the granting ofa license or permit givenby the government toan
‘ntvidual, including the name ofthe individual and the exact nature of
‘hebenefit;
ILLUSTRATION: a passenger of a bus took a picture of the condi
‘Which she found to be cute, Can the passenger be considered pes
{information controller?
ANSWER: No, Because the processing of personal information (heii
which Bears the face and can Be used to Hen the data
{oe personal afin
‘esonal information processed for jouralistc, artist, Wterary or
‘search purposes; ao
mation necessary in order to carry out the functions of public
thority vehich includes the processing of personal data for the
Feiatmance by the independent, ental monetary authority and lave
ement and regulatory agencies of thelr constitutionally. and
“Story mandated functions.
omProtection Afforded to Journalists and Their Sources: No am
repeal of Republic Act No. 53, which affords the publishers, ei
accredited reporters of any newspaper, magazine or
circulation protection from being compelled to reve
‘ews report or information appearing in said publication which wis dal
inany confidence to such publisher, editor, or reporter.
Extraterritorial Application: The Data Privacy Act applies t
practice engaged in and outside ofthe Philippines by an entity it
1
2
b._ Republic Act No. 6426, otherwise known as the Foreign cy
e Republic Act No. 9510, ot
6. Information necessary for banks and other financial
Dap, wiewer
Pi, e
[Noamendments or repeal tothe following laws: ve
2 Republic Act No. 1405, otherwise known as the Secrecy of,
a a
A
ie “etity carries on business inthe Philipines; and
1 Ta formation mas led rita nity in he
1 ptippines
en
and =
Act therwise known as the Cred, = HeN! |ATIONAL PRIVACY COMMISSION
system Act (CISA);
seit as created to administer and implement the provisions of the
eat and to monitor and ensure compliance ofthe county with
amee_ compliance of personal, information controllers with the
thejursditon ofthe independent central monetary
Sentral ng Pipinasto comply with he CISA and Repu 7
asamende,ehervie known a the Ant Money eA Ne
other applicable: and eh
Fersnal information originally ected frome
siden Sons o this Act
ins a ng] psn Sntitle investigation, fete or che
incloing any applicable data privacy Iws, whichis tee Sement of complaint through the use of alternative dispute resolution
the Philippines. erm]
ec adjudicate, award indemity on matters afecting any personal
lomation, prepare reports on disposition of complaints and resolution
of any investigation it initiates, and, in cases it deems appropriate,
pobize any such report Provided, That in resolving any complaint oF
vestigation (except where amicable settlement is reached by the
yates), the Commission shall act asa collegial body. For this purpose,
the Commission may be given access to personal information that is
sabject of any complaint and to collet the information necessary to
pero ts Functions under this Act
‘nue ceate and desist orders, impose a temporary or permanent ban on
‘beprocesing of personal information, upon finding that
wilbe detrimental t national security and public interest,
Cempel or petition any entity, government agency or instrumentality to
abe by its orders or take action on a matter affecting data privacy;
Newitor the compliance of other government agencies or
imttumentalities on their security and technical measures and
teomimend the necessary action in order to meet minimum standards for
oteton of personal information pursuant to this Act
Grtinate with other government agencies and the private sector on
Sto formulate and implement plans and policies to strengthen the
ion of personal information in the county:
rch a regular basis a guide to all laws relating to data protection;
indat® Sompilation of agency sytem of records and notices, including,
'*and other finding aids;
eco
ser
period of ged
eal the sour =
nates
‘The act, practice or processing relates to personal information|
Philippine citizen or a resident;
‘The entity has a link with the Philippines, andthe entity po=|
personal information in the Philippines or even if the prot?
‘ulside the Philippines as long as itis about Philippine ci
"residents such as, but not limited to, the following
8. contracts entered in the Philippines; |
. A juridical entity unincorporated inthe Philipines but
‘management and contol inthe country; and oe
© An entity that has a branch, agency, office or sbsis PY
Philippines and the parent or afiliate of the Philippine
‘secess to personal information; and
‘The entity has other links inthe Philippines such as, but
ini
575 576Ds
ay
Recommend to the Department of Justice (DO) the 5,
% position of penalties provided under the Act, “Ne Po
10 Review, approve, ret oF EGE MoMton yy
voluntary aed toby Fesonal norma |
Priel That the privacy codes shall adhere tothe ny Smt
«1 shallbe headed by @ Privacy Commiss
. : toner, who shall also act as
pc the Commission.
ow
Commissioner shall enjoy the benefits,
oJ Privileges and
. valent to the rank of Secret
privacy principles embodied in this Act: Provide, gape | Sunt ny.
Privacy codes may include priate dispute resolution Page meniasoner shal be oo
Complaints gars any articpating personal noma
this purpose, the Commision shall consult with me ot.
agenciesin the formulation and administration of privaag ot "Ba,
the standards stout in this Act with respect othe oes
busines activites and busines sectors that said reps Oe
authorized to principally regulate pursuant tothe 7,
Final That the Commision may review such privag ae™ Pa
changes thereto for purposes of complying with the Date Peres" |
1, Pome asistneen mater gang
request of amational or local agency, a private entity or any pene
12, Comment on the implication on data privacy of propund ey
lca statutes, regulations or procedures, issue advisory anand
Snterpret the provisions ofthis Act and other data privacy eee
1B, Propose legislation, amendments or modifications to Phiippslene
privacy or data protection as may be necessary:
14, Ensure proper and effective coordination with data pivay reins
other countries and private accountability agents paris t
{nernational and regional initiatives for data privacy protection
15, Negotiate and contract with other data privacy authors of be
countries for cross-border application and implementation ofp
privacy laws,
16. Assis Philippine companies doing business abroad to respond let?
privacy or data protection laws and regulations; and
17. Generally perform such acts as may be necessary to facilitate erst
enforcement of data privacy protection.
by two @) Deply Privacy
way
Ue Processing Systems and one
eens, one to be responsible for Data
6 le for Policies and Planning
corepons %
etaiteioy the Benefits, privileges and emolsments equivalent to the
ederoecretary.
x
vacancy: The Privacy Commissioner and the two (2)
1 unser salle appolnedby te Pesieaor ees
taro! three (3) yearsand may be reappointed forsnather tren catnes
fn Vacinces inthe Commission shale led in he sane moses
aie eign appointment was made:
(ulations of the Privacy Commissioner:
1 Atleast thirty-five (35) years of age
2 Of good moral character, unquestionable integrity and known probit
and
3. A wecognized expert in the field of information technology and data
privacy.
‘Deputy Privacy Commissioners must be recognized experts in the field
\¢Slomation and communications technology and data privacy.
lowe it g00d faith: The Privacy Commissioner, the Deputy
seisiones, ‘or any person acting on their behalf or under their direction,
opt civilly lable for acts done in good faith in the performance of
es
Confidentiality: The Commission shall ensure at al times the conde
of any personal information that comes to its knowledge ane pasess®} Sovee,
cre ce of she shal be lable for willful or negligent acts done by him
Son gett #e contrary to law, morals, public policy and good customs
nig Or abe acted under orders or instructions of superiors. In case a
“filed against such offical on the subject ofthe performance of his
jon sul
Organizational Structure of the Commission: The Commis =
attached to the Department of Information and Communications
57 578sro
and specified purpose. Personal Data shall be processed by the
cn he PON of he Proce col resonable
cane Moher CaN
. by 0!
The Serctarnt: Mj ofthe members of he Secretaria my sated» Legitimate Purpose: The Procesing of Personal Databy the
for atlas five (6) years in any agency ofthe government that ing | 2 PORN “spall be compatible with a declared and specified purpose
the processing of personal information including, but not ghey | COMP tbe contrary tlw, moral opie
following offices: Social Security System (SSS), Govemme! 4] vi
insparency: The Data Sbject must be
" eof Transparency jectmustbeaware ofthe nature,
Insurance System (GSIS), Land Transportation Office (Li) p,m | § MELE and extent of the Processing of his or her Personal Data by the
Internal Revenue (BIR), Philippine Health Iincurnay cet
parry, including the risks and safeguards involved, the identity of
(Philtleathy, Commission on Elections (COMELEQ), Departmay Com a entities involved in processing his or her Personal Dat, his
Afoies (DFA), Department of Justice (DO), gerorgns as a Data Subject and how these can be exercised. Any
Conporaton Pips we See a communion ng oe Pressing of Fecal
sel be easy t0 access and understand, using cleat and plain
language
oe her dtis, where such performance 18 Taw, he oe «
‘Thmursed bythe Commission for resonable costs otha
PROCESSING OF PERSONAL INFORMATION
GiUSTRATION: A customer wants to apply fora loyalty rewards ard
stomer service representative asks the customer to fill-out a form
‘Fu includes information for biood type and politcal affiliation. Can the
‘Processing refers to any operation or any set of operations perame se
personal information including, but not limited to:
1. Collection, collet such information?
2. Recording, eed
3. Organization, |NSWER: No, because ofthe principle of proportionality. Information
4. Storage, nag to blood type and political affiliation may be considered as going
‘5. Updating Or Modification, ‘tyond the necessary information necessary for the purpose of processing,
6. Retrieval, |shchis his application fora loyalty rewards card
7. Consultation,
ie Use, PERSONAL INFORMATION
9. Consolidation,
aa RSONAL INFORMATION, whether recorded ina materia form or not,
‘the rom which the identity of an individual:
12, Destruction of data, 1 ieapparent,
sn be reasonably and
‘formation, or
then put together with other information would directly and certainly
‘entity an individual
zpos Ie ly ascertained by the entity holding the
General Data Privacy Principles: The processing of PS
shall be allowed, subject to
(0) Compliance with the requirements of the D:
lave allowing disclosure of information to the public and
(2) Adherence tothe following priniples:
ata Privacy At 8
tay
vs: incude wener's Nome, Home address and Phone
ARE ince the Data. Owner's Name
aol
rsa
inciple of ionality: The of
1. Principle of Proportionality: The Processing of Pe
adequate, relevant, suitable, necessary, and not ex
580
579ing neces node respond to maional emergency,
oly wih the requirements of publicorderand safety oro fall
or pubic autor which gen
feta ta forte filmer fits mandate .
ecessng is necessary for the purposes of the legitimate interests
Personal information mst be
1 Calected for specified and legitimate purposes determin
=
Sea nr cy erg,
wy ga ng et
enor oe
to
2 aco yaaa Ber he psn norman orien ene ee
3 Tamm aietcred whe mower puree re poets Sant cep ey
= hich
used the processing of personal information, kept upto dayeyttba | AH yy fundamental rights and freedoms of the dee cates
or compte dat mst be rectife,spplemented egg | ele tomar Pipe eeu
further processing restricted: = Meterty | whit
4 Adquteand notes nln the pups ry
soled and processed ‘eg
5. Ren en oras nga neces oe linet
fr which te data was btn o othe etn oe
Are of gal eins o or egtiate bane
proved by evs and *
6, Keplina form which pritseticaton of dat aes or
than ier fa te purposes ow he das ea
rcsset Pl That penonal fomaton eons
purposes may le prcened for hier, satel St
Forse and in cases laid down inlaw maybe ond oes
Pers: Provider, That adequate magus ae ee
Bi lve authoring epoca
ee caer
=
ri ase ora
fecenrietinenieare
eee
debe
sn NAL INFORMATIO\
"Rss to personal information:
1 Aboot an individual’ ace, ethnic origin, marital status, age, color, and
tegous, philosophical or political afliations:
2 Ateut an individual's health, education, genetic or sexual fe of a
Fon oF to any proceeding for any offense committed or alleged to
hve ben committed by such person, the disposal of such proceedings,
4 {tbesentence of any court in such proceedings
* sued by government agencies peculiar to an individual which
indudes, but not limited to, socal security numbers, previous or current
Path records, licenses o its denial, suspension or evocation, and tax
| mumwand
Bese established by an executive order or an act of Congress tobe
classified
‘
tbe Pesoual formation :LInformation: The processing
i Petsonal information and privileged information shall be
"4: except in the following cass
‘The personal information controller must encure implementation opel
{information processing principles set out herein.
IA FOR LAWFUL PROCESSING OF PERSONAL INFORMA
The processing of personal information shall be permited onl it
stherwise prohibited by law, and when at leat one of the flit
coniltions exists
1. Thedata subject has given his or her consent;
2 The rocesingof pesonal information secetary nd sent
{eitiment of cont wih he dats aj oin oer
the request ofthe data subject prior toenteringintoa coin
3. The processing is necessary for compliance with a legal blip
\which the personal information controller is subject a
4. The processing is necessary to protect vitally important interes
data subject including life and healthy
581 582Dat a
at, rviewe
" ir
1. TedaastcttonsoenbisorRereonsenb seco 4 | tl
Tecnve the peaoaing a
inthe ease of privileged informa FE Fe hE ofthese, even Rough ay
itehangehe en te cate! Pt proceing Mh | (Sepa neeasen POS by casing isan oe
eee the same is provided for by exit sey fF ‘ith existing laws and regulations
2. The presi of F emtting 1 | [™ is
regulations = % (ATION: A cat dealer is asking. a potential buyer fil-out a form
ry encments guarantee the protection
Feral information and the privileged information, at,
te Mheconsent ofthe data subjets snot required by ye
permite proceso serie persona nog Py
eee eccamy t prota the 0s ae i
sensing necessary 1 Pr fe and heath
4% pjetorntherpeon ad hedata sujet inet nga By
Able to express hs or he consent prior tothe processing, "PM
4 Tpeproing is nce achieve the lawl an gon
bjt of pbc omaniations and thei aseciaons yn
Seneca ay tee
_fdemembers ofthese organizations or their associa ee
1 That the censtive personal information is not tone
partes and
«_ Totconset ofthe data subject was obtained prio top
5. Theprocesing secs for purposes of medial eaten ey
uty a medial practioner ofa medical treatment instore oo
Adequate level of protection of personal information isenseeseg
6 Theproesing concems sch personal information as snes
rotecion of awl rights an interests of natural legal posers
court proceedings, ofthe establishment, exercise or deere tI
hin, when provided o government or public authority
uustijudesthe name, creditcard details (as mode
rel payment adress
sensor ob bye Can ec dross es
As tothe name and addres, es, since the poceing of he
secesaty and Is related the flfilment tare ee
|= et or inorder to take stepsat the request ofthe data sabre
goa contra.
ssnte credit card details being sensitive personal information, consent
Jet ist be obtained to lawfully proces the same.
tothe racial origin no, since it violates the principle of proportionality,
fered to tiy | penfthe data subject gives his consent.
sskontract of Personal Information: A personal information controller may
tnkotzact the processing of personal information,
‘he personal information controller shal be responsible for ensuring that
oper safeguards are in place to ensure
|. The confidentiality of the personal information processed,
2 Prevent its use for unauthorized purposes, and generally,
4 Comply with the requirements ofthe Data Privacy Actand other laws for
Processing of personal information.
ILLUSTRATION: A doctor Togs in the symptoms and media]
Prescribed of particular client. Is the doctor allowed to collec and rs
epersonal information processor shall comply with al the requirements of
‘such information? E ind
‘Data Privacy Act and other applicable laws.
ANSWER: Yes. Beeause it woul
performed
fll on the medical exception with
by a medical practitioner.
wu
USTRATION: The employee is being required to provide hs SS
PAGIBIG Phithealh nu ci
reaiecs pret jubersto the employer. Can the employe
[tssion of Privileged Communication: Personal information controllers
Bi invoke the principle of privileged communication over privileged.
‘ation that they lawfully control or process. Subject to existing laws and
lations, any evidence gathered on privileged information s inadmissible.
itsteation: Examples of Personal information (PI), Sensitive Personal
"mation (SPI) or Privileged Information (Privileged):
54information
Gonder
Email adds
cpg’ IP as
Bask acount suber
Home address
Income tx tn
Teton tocked sing nap (©
Gaur eases led agsne the individ
[Disclosures made to an auditor
i date graduated
RIGHTS OF THE DATA SUBJECT
Rights ofthe Data Subject:
1._ Right to Informed Consent ~ The data subject shall be in
personal information pertaining to him or her shall be,
‘ben processed
Formed wee
are being ory
The following information must be provided before
persona information into the processing system, or att
‘opportunity
'% Description of the personal information tobe entered ins fe
system;
the entry fe
the next peach
Purposes for which they are being or are to be processed
Scope and method ofthe personal information processing
‘The recipients or classes of recipients to whom they are or my!
Alisclosed;
Methods wiized for automated acces, ifthe same isallowed
st subject and the extent to which such access is authori
Ze entity and contact details of the personal slot