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Overview of the Electronic Commerce Act

The document discusses Republic Act 8792, also known as the Electronic Commerce Act of the Philippines. Some key points: - The act was passed in 2000 to recognize electronic transactions and signatures as legally valid. It aims to facilitate e-commerce. - It defines important terms like electronic messages, signatures, and documents. It protects these forms of electronic data. - Some important provisions are giving electronic data legal recognition in courts, allowing e-contracts, requiring government e-commerce capabilities, and punishing hacking and piracy. - It also discusses the principles that should guide government policy on e-commerce, like promoting private sector leadership, international harmonization, and skills development.
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0% found this document useful (0 votes)
265 views6 pages

Overview of the Electronic Commerce Act

The document discusses Republic Act 8792, also known as the Electronic Commerce Act of the Philippines. Some key points: - The act was passed in 2000 to recognize electronic transactions and signatures as legally valid. It aims to facilitate e-commerce. - It defines important terms like electronic messages, signatures, and documents. It protects these forms of electronic data. - Some important provisions are giving electronic data legal recognition in courts, allowing e-contracts, requiring government e-commerce capabilities, and punishing hacking and piracy. - It also discusses the principles that should guide government policy on e-commerce, like promoting private sector leadership, international harmonization, and skills development.
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Republic Act 8792 is also known as Electronic Commerce Act was signed into law last June 14,

2000
by President Joseph Ejercito Estrada. The law too effect last June 19,2000

What is Electronic Commerce Act ? An act providing for the recognition and use of electronic
commercial and non commercial, transactions, penalties for unlawful use. Thereof and other
purposes.

What exaclty does means Electronic Commerce Act? Is the buying and selling of goods and
services ,or the transmitting of funds of data over an eletronic network, primarily the internet.

This law protects at:


Electronic Messages- refers to information generated, sent, received, or stored by electronic optical
or similar means

Electronic Signatures- refers to any distinctive mark, characteristic and/or sound in electronic form,
representing the identity of a person and attached to or logically associated with the electronic data
message or electronic document or any methodology or procedures employed or adopted by a
person and executed or adopted by such person with the intention of authenticating or approving an
electronic data message or electronic document

Electronic Documents- ” refers to information or the representation of information, data, figures,


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

What are the salient point of the Republic Act 8792?

1.It gives legal recognition of electronic data messages, electronic document and electronic signatures
as evidence in court.

2.Allows the Formation of contracts in electronic form

3.Povides the mandate for the electonic implementation of transport document to facilitate the
carriage goods.

4.Mandates the government to have capability to do electronic commerce within 2 years June 19,
2002

5.Mandates the RP web implemented.

6.Made cable, broadcast and wireless physical infrastracture within the activity of
telecommunications.

7.Empowers the Department of Trade and Industry to supervise the development of electronic
commerce.

8. Provided guidelines as to when a service provider can be liable.

9. Authorities and parties with the legal right can only gain access to electronic data messages,
electronic documents and electronic signatures

10. Hacking or cracking is punishable by a fine from One Hundred Thousand to maximum
commensurate to damage and with imprisonment from 6 months to 3 years.
11. Piracy through the use of telecommunication networks that infringes intellectual property right is
punishable.

12. All existing law, such as the Consumer Act of the PhILIPPINES , also apply to electronic commerce
transactions.

1. Discuss the Principles?

Section 3. Principles. - Pursuant to the mandate under Section 29 of the Act to direct and supervise
the promotion and development of electronic commerce in the country, the following principles are
hereby adopted as Government policy on electronic commerce:

(a) Role of the Government. - Government intervention, when required, shall promote a stable legal
environment, allow a fair allocation of scarce resources and protect public interest. Such intervention
shall be no more than is essential and should be clear, transparent, objective, non-discriminatory,
proportional, flexible, and technologically neutral. Mechanisms for private sector input and
involvement in policy making shall be promoted and widely used.

(b) Role of the Private Sector. - The development of electronic commerce shall be led primarily by
the private sector in response to market forces. Participation in electronic commerce shall be pursued
through an open and fair competitive market.

(c) International Coordination and Harmonization. - Electronic commerce is global by nature.


Government policies that affect electronic commerce will be internationally coordinated and
compatible and will facilitate interoperability within an international, voluntary and consensus-based
environment for standards setting.

(d) Neutral Tax Treatment. - Transactions conducted using electronic commerce should receive
neutral tax treatment in comparison to transactions using non-electronic means and taxation of
electronic commerce shall be administered in the least burdensome manner.

(e) Protection of Users. - The protection of users, in particular with regard to privacy, confidentiality,
anonymity and content control shall be pursued through policies driven by choice, individual
empowerment, and industry-led solutions. It shall be in accordance with applicable laws. Subject to
such laws, business should make available to consumers and, where appropriate, business users the
means to exercise choice with respect to privacy, confidentiality, content control and, under
appropriate circumstances, anonymity.

(f) Electronic Commerce Awareness. - Government and the private sector will inform society, both
individual consumers and businesses, about the potentials of electronic commerce and its impact on
social and economic structures.

(g) Small and Medium-Sized Enterprises. - Government will provide small and medium-sized
enterprises (SMEs) with information and education relevant to opportunities provided by global
electronic commerce. Government will create an environment that is conducive to private sector
investment in information technologies and encourage capital access for SMEs.

(h) Skills Development. - Government shall enable workers to share in the new and different
employment generated by electronic commerce. In this regard, the Government shall continue to
promote both formal and non-formal skills-development programs.

(i) Government as a Model User. - Government shall utilize new electronic means to deliver core
public services in order to demonstrate the benefits derived therefrom and to promote the use of
such means. In this regard, the Government will be a pioneer in using new technologies. In particular,
the Government Information System Plan (GISP), which is expected to include, but not be limited to,
online public information and cultural resources, databases for health services, web sites at local,
regional and national levels and public libraries and databases, where appropriate, will be
implemented in accordance with the provisions of the Act and RPWEB.

(j) Convergence. - Convergence of technologies is crucial to electronic commerce and will be


supported by appropriate government policies. Government will work closely with business in
preparing for and reacting to changes caused by convergence.

(k) Domain Name System. - The Government supports initiatives to ensure that Internet users will
have a sufficient voice in the governance of the domain name system.

(l) Access to Public Records. - Government shall provide equal and transparent access to public
domain information.

(m) Dispute Mechanisms. - Government encourages the use of self-regulatory extra-judicial dispute
settlement mechanisms such as arbitration and mediation as an effective way of resolving electronic
commerce disputes.

2. Describe the Application?

Section 5. Sphere of Application. - The Act shall apply to any kind of electronic data message and
electronic document used in the context of commercial and non-commercial activities to include
domestic and international dealings, transactions, arrangements, agreements, contracts and
exchanges and storage of information.

3. Discuss the definition of terms?

(a) “Addressee” refers to a person who is intended by the originator to receive the electronic data
message or electronic document, but does not include a person acting as an intermediary with
respect to that electronic data message or electronic document.

(b) “Commercial Activities” shall be given a wide interpretation so as to cover matters arising from all
relationships of a commercial nature, whether contractual or not. The term shall likewise refer to
acts, events, transactions, or dealings occurring between or among parties including, but not limited
to, factoring, investments, leasing, consulting, insurance, and all other services, as well as the
manufacture, processing, purchase, sale, supply, distribution or transacting in any manner, of tangible
and intangible property of all kinds such as commodities, goods, merchandise, financial and banking
products, patents, participations, shares of stock, software, books, works of art and other intellectual
property.

(c) “Computer” refers to any device or apparatus singly or interconnected which, by electronic,
electromechanical, optical and/or magnetic impulse, or other means with the same function, can
receive, record, transmit, store, process, correlate, analyze, project, retrieve and/or produce
information, data, text, graphics, figures, voice, video, symbols or other modes of expression or
perform any one or more of these functions.

(d) “Convergence” refers to technologies moving together towards a common point and elimination
of differences between the provisioning of video, voice and data, using digital and other emerging
technologies; the coming together of two or more disparate disciplines or technologies; the ability of
different network platforms to carry any kind of service; and the coming together of consumer
devices such as, but not limited to, the telephone, television and personal computer.

(e) “Electronic data message” refers to information generated, sent, received or stored by electronic,
optical or similar means, but not limited to, electronic data interchange (EDI), electronic mail,
telegram, telex or telecopy. Throughout these Rules, the term “electronic data message” shall be
equivalent to and be used interchangeably with “electronic document.”
(f) “Information and Communications System” refers to a system for generating, sending, receiving,
storing or otherwise processing electronic data messages or electronic documents and includes the
computer system or other similar device by or in which data is recorded or stored and any procedures
related to the recording or storage of electronic data message or electronic document.

(g) “Electronic signature” refers to any distinctive mark, characteristic and/or sound in electronic
form, representing the identity of a person and attached to or logically associated with the electronic
data message or electronic document or any methodology or procedures employed or adopted by a
person and executed or adopted by such person with the intention of authenticating or approving an
electronic data message or electronic document.

(h) “Electronic document” refers to information or the representation of information, data, figures,
symbols or other modes of written expression, described or however represented, by which a right is
established or an obligation extinguished, or by which a fact may be proved and affirmed, which is
received, recorded, transmitted, stored, processed, retrieved or produced electronically. Throughout
these Rules, the term “electronic document” shall be equivalent to and be used interchangeably with
“electronic data message.”

(i) “Electronic key” refers to a secret code, which secures and defends sensitive information that
crosses over public channels into a form decipherable only by itself or with a matching electronic key.
This term shall include, but not be limited to, keys produced by single key cryptosystems, public key
cryptosystems or any other similar method or process, which may hereafter, be developed.

(j) “Intermediary” refers to a person who in behalf of another person and with respect to a particular
electronic data message or electronic document sends, receives and/or stores or provides other
services in respect of that electronic data message or electronic document. (k) “Non-Commercial
Activities” are those not falling under commercial activities.

(l) “Originator” refers to a person by whom, or on whose behalf, the electronic data message or
electronic document purports to have been created, generated and/or sent. The term does not
include a person acting as an intermediary with respect to that electronic data message or electronic
document.

(m) “Person” means any natural or juridical person including, but not limited to, an individual,
corporation, partnership, joint venture, unincorporated association, trust or other juridical entity, or
any governmental authority.

(n) “Service provider” refers to a provider of -

I. Online services or network access, or the operator of facilities therefor, including entities offering
the transmission, routing, or providing of connections for online communications, digital or
otherwise, between or among points specified by a user, of electronic data message or electronic
documents of the user’s choosing; or

ii. The necessary technical means by which electronic data message or electronic documents of an
originator may be stored and made accessible to a designated or undesignated third party. Such
service providers shall have no authority to modify or alter the content of the electronic data message
or electronic document received or to make any entry therein on behalf of the originator, addressee
or any third party unless specifically authorized to do so, and shall retain the electronic data message
or electronic document in accordance with the specific request or as necessary for the purpose of
performing the services it was engaged to perform.
4. Apply the legal recognition and communication of electronic data messages and electronic
documents?

Section 7. Legal Recognition of Electronic Data Messages and Electronic Documents. - Information
shall not be denied validity or enforceability solely on the ground that it is in the form of an electronic
data message or electronic document, purporting to give rise to such legal effect. Electronic data
messages or electronic documents shall have the legal effect, validity or enforceability as any other
document or legal writing. In particular, subject to the provisions of the Act and these Rules:

(a) A requirement under law that information is in writing is satisfied if the information is in the form
of an electronic data message or electronic document.

(b) A requirement under law for a person to provide information in writing to another person is
satisfied by the provision of the information in an electronic data message or electronic document.

(c) A requirement under law for a person to provide information to another person in a specified
nonelectronic form is satisfied by the provision of the information in an electronic data message or
electronic document if the information is provided in the same or substantially the same form.

(d) Nothing limits the operation of any requirement under law for information to be posted or
displayed in specified manner, time or location; or for any information or document to be
communicated by a specified method unless and until a functional equivalent shall have been
developed, installed, and implemented.

5. Discuss the electronic commerce in carriage foods?

Section 35. Actions Related to Contracts of Carriage of Goods. -

Without derogating from the provisions of Part Two of the Act, this Part of the Rules applies to any
action in connection with, or in pursuance of, a contract of carriage of goods, including but not limited
to:
(a) (i) furnishing the marks, number, quantity or weight of goods;
(ii) stating or declaring the nature or value of goods;
(iii) issuing a receipt for goods; (iv) confirming that goods have been loaded;

(b) (i) notifying a person of terms and conditions of the contract;


(ii) giving instructions to a carrier;

(c) (i) claiming delivery of goods;


(ii) authorizing release of goods;
(iii) giving notices of loss of, or damage to goods;

(d) giving any other notice or statement in connection with the performance of the contract;

(e) undertaking to deliver goods to a named person or a person authorized to claim delivery;

(f) granting, acquiring, renouncing, surrendering, transferring or negotiating rights in goods;

(g) acquiring or transferring rights and obligations under the contract.

6. Explain the electronic transactions in government?

Section 37. Government Use of Electronic Data Messages, Electronic Documents and Electronic
Signatures. - Notwithstanding any law to the contrary, within two (2) years from the date of the
effectivity of the Act, all departments, bureaus, offices and agencies of the government, as well as all
government-owned and-controlled corporations, that pursuant to law require or accept the filing of
documents, require that documents be created, or retained and/or submitted, issue permits, licenses
or certificates of registration or approval, or provide for the method and manner of payment or
settlement of fees and other obligations to the government, shall:
(a) accept the creation, filing or retention of such documents in the form of electronic data messages
or electronic documents;

(b) issue permits, licenses, or approval in the form of electronic data messages or electronic
documents;

(c) require and/or accept payments, and issue receipts acknowledging such payments, through
systems using electronic data messages or electronic documents; or

(d) transact the government business and/or perform governmental functions using electronic data
messages or electronic documents, and for the purpose, are authorized to adopt and promulgate,
after appropriate public hearing and with due publication in newspapers of general circulation, the
appropriate rules, regulations, or guidelines, to, among others, specify:

(1) the manner and format in which such electronic data messages or electronic documents shall be
filed, created, retained or issued;

(2) where and when such electronic data messages or electronic documents have to be signed, the
use of a electronic signature, the type of electronic signature required;

(3) the format of an electronic data message or electronic document and the manner the electronic
signature shall be affixed to the electronic data message or electronic document;

(4) the control processes and procedures as appropriate to ensure adequate integrity, security and
confidentiality of electronic data messages or electronic documents or records or payments;

(5) other attributes required of electronic data messages or electronic documents or payments; and
(6) the full or limited use of the documents and papers for compliance with the government
requirements;

References:

https://www.mondaq.com/CorporateCommercial-Law/9200/Electronic-Commerce-Act-Republic-Act-
No-8792

https://ecommerce.dti.gov.ph/wp-content/uploads/2020/11/IRR-of-RA-8792-E-Commerce-Act-of-
2000.pdf

https://www.electronicink.com/what-is-e-commerce-law-in-the-philippines/

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