LAW — ECOMMERCE ACT OF 200 This law applies to all electronic data and documents, whether used for

This law applies to all electronic data and documents, whether used for business or personal matters,
including contracts, messages, or stored info. It covers both local and international use.

📘 Real-Life Legal Example:

💡 AN ACT PROVIDING FOR THE RECOGNITION AND USE OF ELECTRONIC COMMERCIAL AND NON-
COMMERCIAL TRANSACTIONS AND DOCUMENTS, PENALTIES FOR UNLAWFUL USE THEREOF AND
You email your landlord agreeing to renew your lease, and they reply confirming. This email exchange can be
covered under the law as a valid agreement, even if not printed.
FOR OTHER PURPOSES
✅ Key Points Summary:
Applies to all electronic data and messages.
SECTION 2: DECLARATION OF POLICY Covers both business and personal transactions.
This section outlines the government’s goals and commitments regarding electronic commerce. The Encompasses local and international activities.
government:

1. Understands how important technology (ICT) is for the country's growth.

SECTION 5: DEFINITION OF TERMS
2. Wants to create an environment that makes ICT products and services affordable and available to all.
a) Addressee
💬 The person intended to receive the electronic message.
3. Encourages the private sector to invest in and develop ICT services.

4. Aims to train people so they can use computers and other tech tools effectively.

5. Is responsible for ensuring safe and secure networks, and promoting equal access to technology.
📘 Example: If Ana sends a job offer to Juan via email, Juan is the addressee. But the email server that forwarded
the message is not.
6. Plans to develop the country’s information infrastructure (like internet networks), and link it with global
networks using proper laws and systems. b) Computer

📘 💬 Any device that processes and handles data — like desktops, smartphones, tablets, etc.
Real-Life Legal Example:
Imagine the government runs a program to train farmers in rural areas on how to use mobile apps for selling their
📘 Example: Sending an invoice from your laptop or mobile counts as using a "computer."
crops. This falls under their obligation to create a tech-friendly population and infrastructure, as stated in this c) Electronic Data Message
policy.
💬 Any kind of information sent, received, or stored digitally — like an email or WhatsApp message.
✅ Key Points Summary: 📘 Example: A customer service reply via email confirming an order is a valid electronic data message.
The state values ICT for nation-building.
d) Information and Communication System
It promotes access, training, private investment, and national infrastructure.
💬 Any system (like a server or database) used to handle electronic documents or messages.
It commits to ensuring tech is secure, affordable, and widely used. 📘 Example: An online banking system is an information system managing digital transactions.
e) Electronic Signature
PART II — ELECTRONIC COMMERCE IN GENERAL: 💬 Any digital sign, mark, or process that shows someone approves a document.
📘 Example: Clicking “I accept” on a digital loan contract or typing your name with consent qualifies.
CHAPTER I f) Electronic Document

SECTION 3: OBJECTIVE 💬 Any info stored or shared digitally that proves a right, obligation, or fact.
The goal of this law is to make electronic transactions (like emails, online contracts, digital signatures)
📘 Example: A scanned will stored online is considered an electronic document.
legally valid. g) Electronic Key
It supports doing business and keeping records electronically, both locally and internationally, and encourages 💬 A secret digital code used to keep data secure.
the public and government to go digital.
📘 Example: When lawyers encrypt confidential case files before sending, they use electronic keys.
📘 Real-Life Legal Example: h) Intermediary
A local business owner emails a signed contract to a supplier overseas. That contract is legally valid under this
💬 A person or system that sends or receives data on someone else’s behalf.
📘 Example: A cloud storage service that holds your tax documents for you is an intermediary.
law, just like a printed, signed version would be.

✅ Key Points Summary: i) Originator

Encourages digital transactions and storage.
💬 The person who creates or sends an electronic document.
Ensures electronic documents are legally valid.

Applies to both domestic and international dealings.

📘 Example: If your accountant prepares and emails your tax return, they’re the originator.
j) Service Provider
SECTION 4: SPHERE OF APPLICATION 💬 A company or person that provides online services like web hosting, email, or data storage.
LAW — ECOMMERCE ACT OF 200 1 LAW — ECOMMERCE ACT OF 200 2
 📘 Example: Dropbox or Gmail is a service provider. They can store your documents but can’t alter them unless 4. The other party can verify it.
you allow it.

✅ Key Points Summary: 📘 Real-Life Legal Example:

If someone signs a digital loan contract using a secure app (like DocuSign), and the system tracks who signed it,
Defines key players and tools in e-commerce: sender, receiver, intermediaries, systems, etc. it’s legally valid like a handwritten signature.

Clarifies what qualifies as an electronic document, signature, and secure transmission.

Emphasizes trust and integrity in digital communication.

✅ Key Points Summary:
E-signatures are legally valid if secure, verifiable, and clearly show intent to agree.

Both parties should be able to verify the identity of the signer.

CHAPTER II — LEGAL RECOGNITION OF ELECTRONIC

WRITING, DOCUMENTS, AND DATA MESSAGES SECTION 9: Presumption Relating to Electronic Signatures
In legal cases, an electronic signature is assumed to be valid — meaning:

SECTION 6: Legal Recognition of Electronic Data Messages 1. It’s presumed to belong to the person who used it.

Just because a message is in digital form (like an email or online form), doesn’t mean it has less legal value. It 2. It’s assumed the person meant to sign or approve the document.
cannot be rejected in court or in official dealings just because it's not on paper. This stands unless someone can prove otherwise or if it’s unreasonable to trust the signature due to

📘 Real-Life Legal Example: suspicious circumstances.

If a company confirms a customer’s payment via email, that email is legally valid proof of the transaction. The
customer can use it in court if there's a dispute about the payment.
📘 Real-Life Legal Example:
A digital contract signed with a secure ID by a client will be presumed valid in court, unless the other party proves

✅ Key Points Summary: the ID was stolen or faked.

Electronic data messages have the same legal effect as paper-based information. ✅ Key Points Summary:
Courts and institutions must recognize them as valid. Courts presume electronic signatures are valid.

The burden of proof is on the party challenging the signature.

SECTION 7: Legal Recognition of Electronic Documents
Electronic documents are just as valid and legal as paper documents, as long as they: SECTION 10: Original Documents
Stay unaltered (except for minor authorized changes). If the law requires a document to be kept or shown in its original form, an electronic version is enough — as
long as:
Are reliable and can be authenticated (proven to be real).
Its content hasn’t been changed.
Can be shown or accessed again later if needed.
It can be displayed or reproduced when needed.
Even if the law usually requires a document to be on paper or in "original form," a valid electronic version is
enough, if it's complete and secure. The law allows digital records to count as originals if they're complete and reliable.

⚠️ However, this law doesn’t override other laws that require strict formalities, like 📘 Real-Life Legal Example:
notarized real estate deeds. An insurance company that stores signed policies digitally doesn't need paper copies, as long as those records

📘 Real-Life Legal Example:

are accurate, complete, and readable when needed.

A digital lease agreement signed and emailed between a landlord and tenant is valid as long as it’s stored securely
✅ Key Points Summary:
and hasn’t been tampered with. Electronic documents can fulfill legal requirements for "original" documents.

✅ Key Points Summary: Must remain unaltered and be accessible for later use.

Electronic documents are equivalent to written ones.

SECTION 11: Authentication of Electronic Data Messages and Electronic
They must be complete, unaltered, and reliable.
Documents
Exceptions apply to documents needing specific legal formalities (like notarization).
Before an electronic document or signature can be used in court, its authenticity must be proven. This can
be done by:
SECTION 8: Legal Recognition of Electronic Signatures Showing a secure method was used to sign or send it (like encrypted systems or digital IDs).
An electronic signature (like typing your name, clicking “I accept,” or using a stylus) is just as valid as a Verifying it came from the right person.
handwritten signature if it meets certain conditions:
Demonstrating the system storing it was reliable and tamper-free.
1. It clearly identifies the person who signed.
Until the Supreme Court sets specific rules, any reliable method of proof is acceptable, like logs, audit trails,
2. It shows the signer had access to the document and approved it. or encryption records.
3. It uses a secure and reliable method.

LAW — ECOMMERCE ACT OF 200 3 LAW — ECOMMERCE ACT OF 200 4

 📘 Real-Life Legal Example: How the document was created, sent, or stored.
A lawyer presents a digital invoice and supports it with server logs showing it was created and sent using the That the person believes it to be authentic and reliable.
company’s secure billing software. The court accepts it as valid.
This is a simpler way to introduce digital evidence without needing a live witness immediately.

✅ Key Points Summary: 📘 Real-Life Legal Example:

Electronic documents must be authenticated before being accepted in court.
A bank submits an affidavit from its IT officer explaining how a customer's digital loan application was received
Proof includes signature verification, secure systems, or neutral party records. and stored securely. This supports the document’s authenticity in a loan fraud case.

The system storing or sending the file must be shown to be trustworthy.

✅ Key Points Summary:
Electronic documents can be introduced in court using an affidavit.
SECTION 12: Admissibility and Evidential Weight of Electronic Data
The affidavit must describe the method of creation, transmission, or storage.
Messages or Documents
Electronic messages and documents can be used as evidence in court, even if they’re not on paper.
SECTION 15: Cross-Examination
Their weight or strength as evidence depends on:
Anyone who submits an affidavit (like the one in Section 14) can be cross-examined in court by the opposing
How reliably they were created. party. Also, any person who stored or recorded the electronic document (as referred to in Section 11) can be
How securely they were stored. cross-examined, especially if:

How clearly the sender can be identified. They're connected to one side of the case.

If they meet these standards (like those in Sections 6 & 7), they’re accepted as the best form of evidence. Their credibility or neutrality is in question.

📘 Real-Life Legal Example: This ensures fairness and gives both sides the chance to challenge the evidence.

An online store defends itself using email correspondence and payment logs to prove a customer agreed to the 📘 Real-Life Legal Example:
terms. The court evaluates these as valid evidence. In a legal battle over a digital land sale agreement, the buyer challenges the affidavit of the seller’s IT staff about

✅ Key Points Summary: how the document was signed and stored. The buyer's lawyer cross-examines the staff in court.

Electronic data and documents are admissible in court. ✅ Key Points Summary:
Their reliability and secure handling affect their evidentiary value. Affiants (those who sign affidavits) can be cross-examined in court.

People who stored or handled digital documents can also be questioned.

✅DOCUMENTS
SECTION 13: Retention of Electronic Documents
Even if the law says certain documents must be kept in original form, storing them electronically is okay if: OVERALL SUMMARY OF CHAPTER II: LEGAL RECOGNITION OF E-
1. They can be opened or viewed later.

2. They are kept in the original format or an accurate copy. Topic Layman Summary

3. You can identify who sent/received it and when. Electronic Data Messages (Sec Messages in digital form cannot be rejected just
6) because they’re not printed.
You can even let a third-party service (like Google Drive or a document management system) store it for you,
These are legally valid if unchanged, reliable, and
as long as these conditions are met. Electronic Documents (Sec 7)
accessible.

📘 Real-Life Legal Example: Electronic Signatures (Sec 8)

E-signatures are equal to handwritten ones if they
can identify the signer and were securely made.
A company uses a cloud system to store employee contracts. They are time-stamped, unchanged, and show who
Courts assume e-signatures are valid unless proven
signed them. This fulfills the law's retention requirement. Signature Presumption (Sec 9)
otherwise.

✅ Key Points Summary: Original Documents (Sec 10)

Electronic versions can meet legal "original"
requirements if complete and displayable.
Electronic storage meets legal retention rules if documents are: E-documents and signatures must be proven
Authentication (Sec 11)
Accessible authentic using secure systems or evidence.

E-documents are accepted in court. Their weight

Unchanged Admissibility (Sec 12)
depends on reliability and secure handling.
Identifiable by sender and time You can store required documents electronically if
Retention (Sec 13)
Third-party services can store them, under those conditions. they're accessible, accurate, and traceable.

Proof by Affidavit (Sec 14) Affidavits can be used to introduce digital evidence.

Parties can question the affidavit signer or person

SECTION 14: Proof by Affidavit Cross-Examination (Sec 15)
handling the digital file in court.
If someone wants to use an electronic document or data message in court, they can support it by submitting a
written sworn statement (affidavit). This affidavit explains:

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 CHAPTER III — Communication of Electronic Data Messages Section 20. Acknowledgement of Receipt
or Electronic Documents This deals with how and when a sender knows a message was received.
a. Unless otherwise agreed, any reasonable action (even automated confirmation) counts as a receipt.
Section 16. Formation and Validity of Electronic Contracts b. If the sender says the contract only matters after receipt is acknowledged, then it’s not valid until the
1. Electronic contracts are just as valid as paper ones. Whether you’re sending a business proposal via email or recipient confirms.
signing up for an online store’s terms and conditions, it counts. The law doesn't discriminate between digital c. If no time is agreed for confirmation and none is received, the sender can cancel the message after giving a
and paper. warning and waiting a reasonable time.

2. Bank transactions done electronically are binding. If money is transferred electronically between banks or
Real-Life Example:
platforms, it is as valid as handing over physical cash. Once it goes through, neither party can back out just
because it was done digitally. A seller sends you an invoice and says they’ll ship only after confirmation. If you don’t reply, they can cancel
the order.
Real-Life Example:
You buy a product from an online store and click "I agree" to their terms. That’s a valid contract. Section 21. Time of Dispatch
You transfer funds via an e-wallet app. Once the transfer is confirmed, both the sender and recipient must A message is considered “sent” when it leaves your system and enters someone else’s — like hitting "send"
honor it — even if no paper document was exchanged. on your email.

Real-Life Example:
Section 17. Recognition by Parties of Electronic Data Message or Electronic
Document If you send a return request by email at 11:59 p.m., it counts as sent on that date even if the seller opens it the
next morning.
Digital communications, like emails or online forms, are legally valid between the sender and receiver. You
can’t deny their legality just because they weren’t printed on paper.
Section 22. Time of Receipt
Real-Life Example: This defines when a message is “received,” depending on where it’s sent:
An online seller sends a return policy through email. You can’t say it’s invalid because it wasn’t mailed on
a. If it goes to the designated system (e.g., seller’s support email), it’s received when it gets there.
paper.
b. If it goes to the wrong system (e.g., a general mailbox), it counts only when they read it.
c. If there’s no designated system, it counts when it reaches any of their systems.
Section 18. Attribution of Electronic Data Message
This section explains when an electronic message is legally considered to come from the sender. Real-Life Example:
1. If the sender typed and sent the message themselves, it’s theirs. If a buyer sends a complaint to the designated customer service email, it's valid upon arrival — not when
someone opens it.
2. If someone else (authorized) sends it on their behalf, or a system sends it automatically (e.g., auto-generated
receipts), it still counts as coming from the sender.

3. If the recipient used a method (like login credentials or verification codes) agreed upon with the sender to Section 23. Place of Dispatch and Receipt
check the authenticity, the message is valid. The location of the sender and receiver matters — not the device used.
4. But, if the recipient is notified or should have known the message was fake (e.g., phishing), then they can’t a. If you have multiple business locations, the one most involved in the transaction counts.
claim it was valid.
b. No business address? Use the usual place of residence.
5. The recipient can assume what they received is exactly what the sender intended — unless there’s evidence c. For companies, the place of registration is used.
of error.
This also helps determine where the taxes apply.
6. Each message is considered separate unless it's clearly a duplicate.
Real-Life Example:
Real-Life Example:
A seller in Cebu uses a mobile phone in Manila to send a receipt. It’s still considered sent from Cebu for legal
A customer gets a purchase confirmation email. Even if it’s auto-generated, it's legally valid. and tax purposes.
If a hacker sends a fake invoice, but the recipient knows it looks suspicious and ignores warning signs, they
can't later claim they believed it was real.
Section 24. Choice of Security Methods
Businesses are free to choose how secure their messages and documents are — like using encryption, digital
Section 19. Error in Electronic Data Message or Document signatures, or verification codes — as long as it complies with applicable laws.
If the message received is not what was intended due to a system or input error, the recipient shouldn’t rely on
it — especially if they could have detected the mistake with reasonable care. Real-Life Example:
An online store can use a simple email confirmation or a more complex two-factor authentication. It’s up to
Real-Life Example: them.

✅ Summary of Key Points (Chapter III)

An online store lists a ₱50,000 laptop for ₱500 by mistake. If the buyer notices the error but buys it anyway,
they can’t insist the store honor it. The law favors what was intended, not what was mistakenly sent.

LAW — ECOMMERCE ACT OF 200 7 LAW — ECOMMERCE ACT OF 200 8

 Topic Key Points Section 26. Transport Documents
Validity of Contracts E-contracts are fully valid and enforceable. This section explains how legal rules requiring paper documents can be fulfilled with electronic equivalents,
A message is considered sent by a person or system if under certain conditions.
Attribution
properly authorized.
1. Paper requirements can be replaced by electronic methods. If the law says something must be in writing
Mistakes in transmission don’t count if they’re obvious
Error Handling (like a waybill), you can use emails or digital files instead.
or should’ve been detected.

Receipt Receipts may be confirmed by any clear method

2. This applies whether it’s mandatory or simply the standard practice to use paper.
Acknowledgment unless otherwise agreed. 3. Exclusive rights (like title or ownership) that require a paper document to be transferred can now be done via
Dispatch & Receipt A message is sent when it leaves your system and a unique electronic document (must be secure and traceable).
Time received when it enters the receiver’s.
4. Reliability matters. The more important the document (e.g., it transfers ownership), the more secure and
Legal “sending” and “receiving” happens at your
Location reliable the system should be.
business location, not wherever your device is.
5. If you start using electronic documents and later switch back to paper, that’s allowed — but the switch must
You choose your own security level and method for
Security be clearly stated in the paper version.
digital transactions.
6. Laws applying to paper contracts also apply to electronic ones — no loopholes just because you used digital.

PART III — ELECTRONIC COMMERCE IN SPECIFIC AREAS

Real-Life Situations:
E-commerce warehousing: A dropshipping business emails a cargo receipt to the buyer — that’s legally valid.
CHAPTER I: CARRIAGE OF GOODS Freight forwarding: A logistics company sends digital bills of lading and digitally confirms delivery to customs.
This chapter covers how digital methods (like email or online systems) can be used in logistics, especially in Blockchain shipping apps: Ownership of goods is tracked and transferred securely using blockchain-based
contracts related to shipping or transporting goods. It explains when electronic data messages (EDMs) or smart contracts. As long as the system is reliable, this is valid under the law.
electronic documents (EDs) are legally acceptable replacements for paper-based transactions.

Section 25. Actions Related to Contracts of Carriage of Goods

✅ Summary of Key Points (Chapter I: Carriage of Goods)
Topic Key Points
This section lists all the actions in a shipping contract that can be done electronically — meaning, they don’t
need to be in paper form to be legally recognized. Electronic documents are legally equivalent to paper
Paper vs. Electronic
ones for all aspects of shipping.
Covered Actions (in simple terms and with examples): Electronic messages/documents can be used to declare
Legal Actions Allowed value, issue receipts, claim deliveries, report loss, and
(a) Providing shipping details:
more.
(i) Giving marks, numbers, weight — Example: A seller emails the courier that the shipment has 10 boxes Ownership and obligations in goods can be transferred
weighing 50kg. Transferring Rights
digitally, if the system is reliable.

(ii) Declaring value/nature — Example: Online store provides product value electronically to insure goods You can switch from digital back to paper, but you must
Switching Formats
during transport. clearly state the change.

Electronic and paper contracts are treated the same

(iii) Issuing receipt — Example: You get a digital delivery receipt from the courier. Legal Equality
under the law.
(iv) Confirming loading — Example: Seller updates the customer through the system that the goods are now
with the carrier.

(b) Managing terms and instructions: PART IV — ELECTRONIC TRANSACTIONS IN GOVERNMENT

(i) Notifying contract terms — Example: Terms of delivery emailed to a client. This part ensures that government agencies can accept, process, and issue documents and payments
electronically, just like private businesses. It promotes transparency, convenience, and modernization in public
(ii) Giving instructions to carrier — Example: Customer emails courier to reroute delivery.
services.
(c) Delivery-related:

(i) Claiming delivery — Example: Customer shows an email as proof when picking up goods. Section (Unnamed, Appears After Chapter I)
(ii) Authorizing release — Example: A store emails the warehouse to release goods to a customer. Government agencies can legally:
(iii) Reporting damage/loss — Example: Buyer sends digital notice of broken item upon receipt. 1. Accept digital documents for creation, filing, or storage.
(d) Giving other relevant notices — Like delay alerts via app notification. For example, an online business can submit SEC forms or DTI registrations electronically.
(e) Committing to deliver to someone — Example: Seller agrees in writing (email) to ship only to the buyer or 2. Issue digital permits, licenses, or approvals.
someone they authorize.
You might receive your business permit or FDA approval as a PDF with a QR code instead of a printed
(f) Transferring rights in goods — Example: Ownership of goods is digitally transferred using blockchain records.
copy.
(g) Transferring obligations under the contract — Like changing delivery responsibilities to another party through
3. Accept payments and issue digital receipts.
a signed online form.

LAW — ECOMMERCE ACT OF 200 9 LAW — ECOMMERCE ACT OF 200 10

 You can pay taxes, registration fees, or penalties online via e-wallets or bank transfers and receive digital This part of the law ties everything together by addressing liabilities, confidentiality, penalties, enforcement,
receipts. and how the law should be interpreted or adapted.

4. Conduct official government business electronically.

This includes processing applications, sending notifications, or even issuing e-notarized documents. Section 30. Extent of Liability of a Service Provider
Agencies are authorized to publish rules and standards for: A service provider (like an ISP, cloud storage, e-commerce platform, etc.) is not automatically liable for
unlawful or harmful content/data just because they host or transmit it — unless they:
How documents are formatted and submitted online.
1. Know it’s illegal or infringing but do nothing about it.
How digital signatures should be used.
2. Profit directly from that illegal activity.
What level of encryption or security should be applied.
3. Directly commit, help, or encourage the illegal act.

Real-Life E-Commerce Example: However, service providers are still responsible for:

You run a small online business. Instead of visiting DTI or the City Hall, you: Contracts they enter into directly.

Register your business via an online portal. Their duties under licensing or regulation (like an ISP under NTC).

Upload digital IDs. Obeying any court order (e.g., blocking access to illegal content).

Pay the registration fee using GCash or a bank transfer.

Real-Life E-Commerce Example:
Receive a downloadable official business certificate and official receipt via email.
Shopee isn’t liable if someone sells counterfeit goods on its platform — unless:

They knew about it and ignored it.

Section 29. Authority of the Department of Trade and Industry (DTI) and
Participating Entities They made money directly from it (e.g., promoted the item).

DTI leads and coordinates the promotion and development of e-commerce in the Philippines, alongside They refused to remove it after being warned.
relevant government agencies.

The DTI is empowered to: Section 31. Lawful Access

Create rules and guidelines for electronic commerce. You can’t access someone else’s electronic documents, files, or digital signatures unless you have a legal
right to do so (like a warrant or written permission).
Set quality standards and issue certifications to help ensure consumers are protected.

Install and maintain online systems to monitor product prices and quality in e-commerce platforms.
Example:
Collaborate with agencies like Bangko Sentral ng Pilipinas (BSP) and the Department of Budget and
A tax agent can’t read a seller’s encrypted sales reports without permission or a court order.
Management (DBM).

Real-Life Example: Section 32. Obligation of Confidentiality

DTI launches a website that tracks average market prices of goods in Lazada, Shopee, and other e-commerce Anyone who gets access to confidential digital information under this law must keep it private, unless the law
platforms. says otherwise.

It issues a certification to an online seller as a “DTI Accredited Online Business” for meeting quality and
customer service standards. Real-Life Example:

✅ Summary of Key Points (Part IV: Government Transactions)

A cybersecurity officer helping DTI investigate a hacking case can’t leak screenshots, passwords, or user
data to friends or social media.

Topic Key Points

Section 33. Penalties
Government Government can legally handle applications, permits,
Transactions payments, and official actions electronically.
Different violations have specific fines and jail time:

Digital versions of permits, licenses, and receipts are 1. Hacking/Cracking (unauthorized access or destruction of data):
Legal Documents
valid.
Fine: ₱100,000+
Agencies can collect payments through electronic
Payments Jail: 6 months to 3 years
means.

The DTI leads efforts to regulate, promote, and protect 2. Piracy (unauthorized copying/distribution of copyrighted digital content):
DTI Authority
digital commerce in the country.
Fine: ₱100,000+
The DTI can monitor product quality/prices and
Consumer Protection Jail: 6 months to 3 years
enforce standards online.
3. Consumer Law Violations (under R.A. 7394 or other laws using e-commerce):

PART V — FINAL PROVISIONS Penalties same as those in the original laws.

4. Other Violations of This Act:

LAW — ECOMMERCE ACT OF 200 11 LAW — ECOMMERCE ACT OF 200 12

 Fine: Up to ₱1,000,000

Jail: Up to 6 years

Real-Life Examples:
A fraudster hacks into a payment gateway to steal credit card info → 3 years in jail.

An online seller distributes pirated eBooks → fined and imprisoned.

A business fakes a digital permit → faces up to ₱1M fine or jail time.

Section 34. Implementing Rules and Regulations

Government agencies like DTI, BSP, DBM, NTC, etc., must write and publish the specific rules to enforce this
law. Even if they delay, the law is still enforceable.

Section 37. Statutory Interpretation

The law must be interpreted:

With global standards in mind.

In line with international best practices.

Promoting uniformity and good faith in global digital trade.

Section 38. Variation by Agreement

Parties involved in electronic transactions can agree to modify how the law applies to them — as long as it’s
legal.

Example:
A buyer and seller agree that disputes will be resolved by video call arbitration instead of formal court —
allowed under this clause.

Section 39. Reciprocity

Foreign companies or professionals can only enjoy the law’s benefits if their countries allow the same rights
to Filipinos.

✅ Summary of Key Points (Part V: Final Provisions)

Topic Key Points

Service Provider Hosts (like Lazada or Globe) aren’t liable unless they’re
Liability complicit in illegal acts.

Only legal access to files, digital signatures, or data is

Access & Privacy
allowed. Confidentiality is required.

Includes hacking, piracy, consumer law violations —

Criminal Offenses
penalties include fines and jail time.

Agencies must implement rules; law is effective even

Law Enforcement
before rules are published.

Interpretation The law should align with global digital trade principles.

Party Flexibility Parties can customize how they comply with this law.

Foreigners only get benefits if Filipinos get the same in

Reciprocity
their country.

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