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Code of Conduct.
SEC. 18. Code of Conduct. - The DTI, in consultation with relevant government agencies, shall provide a Code of Conduct for all businesses engaged in e-commerce consistent with international trends, developments, standards, and best practices and when necessary, issue guidelines, rules and regulations including voluntary and binding co-regulation mechanisms considering their role, size, and impact in internet transactions.
Obligations of Online Consumers.
SEC. 19. Obligations of Online Consumers. - The online consumer shall exercise ordinary diligence in any internet transaction. If the transaction includes the delivery of the purchased goods, the online consumer shall not cancel confirmed orders when the said items have already been paid for by, or the goods are perishable in nature and are already in the possession of a third-party delivery service, or otherwise in transit to the online consumer unless: (a) The online consumer uses electronic or digital payment and authorized the crediting of the amount despite cancellation; (b) The online consumer reimburses third-party delivery service as a pre-condition for the cancellation of the order; (c) The transaction allows cancellation for a fee; or (d) The parties agree otherwise.
Remedies of Online Consumers.
SEC. 20. Remedies of Online Consumers. - In case of defect, malfunction, or loss without the fault of the online consumer, or failure to conform with warranty or any liability of the online merchant or e-retailer arising from the contract, the online consumer shall have the right to pursue repair, replacement, refund or other remedies provided under Republic Act No. 7394 or any existing relevant laws. When the online consumer avails replacement or refund as a remedy, the online merchant is entitled to the return of the original goods delivered, without any cost to the online consumer, within a reasonable period from the receipt thereof, unless otherwise agreed upon by the parties. In case the refund is already paid, but the goods cannot be returned due to the fault of the online consumer, the amount received shall be immediately reimbursed to the online merchant or e-retailer subject to proportionate reduction in price, if appropriate.
Obligations of E-marketplaces.
SEC. 21. Obligations of E-marketplaces. - Except as otherwise provided in this Act, e-marketplace shall: (a) Ensure that the internet transactions on their platform: (1) Are clearly identifiable as an e-commerce transaction; (2) Identify the person or persons on whose behalf the e-commerce transaction is made; and (3) Identify any promotional offer including any discount, premium, of gift, and that conditions required to qualify for it are accessible, clear, and unambiguous. (b) Require, s far as practicable, all online merchants, whether foreign or Filipino, to submit the following, prior to listing with their platforms: (1) Name of the online merchant accompanied by at least one (1) valid government identification for individuals or business registration documents for juridical entities; (2) Geographic address where the online merchant is located; (3) Contact details of the online merchant which must include a mobile or landline number and a valid e-mail address; and (4) In instances when the services offered by an online merchant is connected with the exercise of a regulated profession, the details of membership in any professional body or similar relevant institution with which the online merchant is registered or otherwise is a member of. Except for the government identification cards or registration documents mentioned under Section 21(b)(1) and the contact details of the online merchant as required under Section 21(b)(3), the information required under this paragraph shall be published or posted on the e-marketplace or digital platform for transparency, unless the e-marketplace or digital platform established means to facilitate communication between online merchants and online consumers or provides a link to the OBD on their platform. (c) Maintain a list of all online merchants registered under their platform, containing the information provided in Section 21(b). The list shall be updated and verified regularly. An e-marketplace shall be required to provide specific information upon the issuance of a subpoena by competent authority pursuant to an investigation based on a sworn complaint, stating that the e-marketplace or e-retailer is being used in the commission of a crime or that it was utilized as a means to commit a malicious, fraudulent, or unlawful act, and that the complaint is unable to ascertain the identity of the perpetrator. (d) Take the necessary precautions to protect the data privacy of consumers, at all times, in accordance with Republic Act No. 10173 or the "Data Privacy Act of 2012", and comply with the minimum information security standards set by the Bureau, NPC, and other issuances of relevant government agencies. Digital platforms and e-marketplaces shall be covered by the provisions of Republic Act No. 10173 and issuances by the NPC. (e) Prohibit the sale of regulated goods unless they provide the necessary permits and license information, and contractually obligating their compliance with sale procedures and limitations, and other relevant conditions for the sale as may be imposed by any law or local government regulation. (f) Provide an effective and responsive redress mechanism for online consumers and online merchants to report a user or information posted on the platform that are deemed in violation of relevant laws. (g) Require all online merchants to clearly indicate the following in their product offers online, regardless of the nature of the goods and services: (1) Name and brand of the goods or services; (2) Price; (3) Description; and (4) Condition. In performing their obligations under this section, e-marketplace and other digital platforms are required to observe ordinary diligence. Failure to do so will subject them to penalties under Section 29 of this Act.
SEC. 22. Obligations of Other Digital Platforms That Do Not Retain Oversight Over the Consumption of the Transaction. - Other digital platforms that do not retain oversight over the consummation of the transaction shall have the following obligations: (a) Enable consumers to distinguish between commercial and non-commercial or private accounts; (b) Prohibit the sale and advertisement of regulated good unless they provide the necessary permits and license information, and contractually obligating their compliance with sale procedures and limitations, and other relevant conditions for the sale as may be imposed by any law or local government regulation; (c) Require online merchants to indicate the following in their product offers online, regardless of the nature of the goods and services: (1) Name and brand of the goods or services; (2) Price; (3) Description; (4) Condition; and (5) Contact information of the online merchant; (d) provide an effective and responsive redress mechanism for online consumers and online merchants to report a user or information posted on the platform that are deemed in violation of relevant laws; (e) Maintain, as far as practicable, an updated list of accounts that make use of the platform for e-commerce. The platform shall be required to provide specific information upon the issuance of a subpoena by competent authority pursuant to an investigation based on a sworn complaint, stating that the platform covered under this section is being used in the commission of a crime or that it was utilized as a means to commit a malicious, fraudulent, or unlawful act, and that the complaint is unable to ascertain the identity of the perpetrator; and (f) Take necessary precautions to protect the data privacy of consumers, at all times, in accordance with Republic Act No. 10173 and comply with the minimum information security standards set by the Bureau, NPC, and other issuances of relevant government agencies. Digital platforms and e-marketplaces shall be covered by the provisions of Republic Act No. 10173 and issuances by the NPC. In performing their obligations, platforms covered under this section are required to observe ordinary diligence. Failure to do so will subject them to penalties under Section 29 of this Act.
Obligations of E-retailers and Online Merchants.
SEC. 23. Obligations of E-retailers and Online Merchants. - An e-retailer or online merchant of digital or non-digital goods and services shall exercise the following responsibilities: (a) Indicate the price of goods and services offered consistent with Article 81 of Republic Act No. 7394; (b) Ensure that the goods are received by the online consumer: (1) In the same condition, type, quantity, and quality as described and stated and, in applicable circumstances possess the functionality, compatibility, interoperability, and fitness for the purpose for which they were intended; (2) In the same condition, type, quantity, and quality of a sample, picture, or model of the goods shown by the e-retailer or online merchant upon request of the online consumer, or of additional descriptions or specifications provided by the e-retailer or online merchant upon inquiries made by the online consumer; and (3) It must also be fit the particular purpose for which the online consumer requires them, as communicated to the e-retailer or online merchant at the time of the perfection of the contract, and which the e-retailer or online merchant has accepted; (c) All the goods shall: (1) Be delivered together with its accessories, including all other packaging, installation inclusions, any user manual, or other instructions as advertised or described, if applicable, with the relevant information stated in the packaging, printed or written in Filipino and/or English; and (2) Possess qualities and performance capabilities, including functionality, compatibility, and interoperability, that are standard and normal in goods of the same type, which the online consumer may expect given its nature and considering any public statement or testimonial made by or on behalf of the e-retailer, online merchant, or other persons in earlier links of the chain of transactions, including the producer, unless the e-retailer or online merchant shows that: (i) The e-retailer or online merchant was not, and could not have been, reasonably aware of the statement in question; (ii) By the time of the conclusion of the contract, the statement had already been corrected; or (iii) The decision to buy the goods could not have been influenced by the statement. (d) Where the e-retailer or online merchant is a digital goods or services provider, it shall ensure that the digital goods or services have the qualities and performance features, in relation to functionality, compatibility, interoperability, accessibility, continuity, and security, which are standard and normal for digital goods or services of the same type as advertised or described. (e) Where the transaction involves a digital platform that offers a performance of a service, the e-retailer or online merchant shall ensure the completion of the same in accordance with the contract and as advertised. (f) An e-retailer shall: (1) Publish on its homepage the following: (i) Its corporate and trade or business name, as may be appropriate; (ii) Address of the physical shop or place of business; (iii) Contact details of the e-retailer, which must include a mobile or landline number and a valid e-mail address to ensure direct and efficient communication with online consumers; and (iv) In instances when the service offered by an e-retailer is connected with the exercise of a regulated profession, the details of membership in any professional body or similar relevant institution with which the e-retailer is registered or otherwise is a member of. The foregoing shall be submitted to the Bureau and must be accompanied by at least one (10 government identification card or registration document as valid proof of identity. (2) Take the necessary precautions to protect the data privacy of consumers, at all times, in accordance with Republic Act No. 10173, and comply with the minimum information security standards set by the Bureau, NPC, and other issuances of relevant government agencies. E-retailers and online merchants shall be covered by the provisions of Republic Act No. 10173 and issuances by the NPC. (g) Where the e-retailer or online merchant is engaged in delivery service, it shall have the right to require its online consumers to provide at least a valid e-mail address or mobile phone number before entering into a transaction, (h) E-retailers or online merchants shall issue paper or electronic invoices or receipts for all sales. (i) E-retailers shall have in place an accessible and efficient redress mechanism for handling complaints from their clients.
Internal Redress Mechanism.
SEC. 24. Internal Redress Mechanism. - An aggrieved party shall avail of the internal redress mechanism of the digital platform, e-marketplace or e-retailer prior to the filing of a complaint before any court or appropriate government agency, or resorting to alternative dispute resolution. Such mechanism is deemed exhausted if the complaint remains unresolved after seven (7) calendar days from filing thereof.
Primary Liability of E-retailers or Online Merchants.
SEC. 25. Primary Liability of E-retailers or Online Merchants. - The e-retailer or online merchant shall be primarily liable for indemnifying the online consumer in civil actions or administrative complaints arising from the internet transaction, without prejudice to the imposition of other penalties as may be appropriate under Section 29 of this Act and other laws. The liability of the e-marketplace or digital platform shall be treated as one and the same as the online merchant upon a finding that both are the same entity.
Subsidiary Liability of E-marketplace or Digital Platforms.
SEC. 26. Subsidiary Liability of E-marketplace or Digital Platforms. - The e-marketplace or digital platform that facilitated the internet transaction subject to a civil action or administrative complaint shall be subsidiary liable to the online consumer if any of the following circumstances are present: (a) The digital platform or e-marketplace failed to exercise ordinary diligence in complying with its obligations under Sections 21 and 22 hereof, resulting in loss or damage to the online consumer; or (b) If the digital platform or e-marketplace failed, after notice, to act expeditiously in removing or disabling access to goods or services that either infringe on another's intellectual property rights or is subject to a takedown order by an appropriate government agency; or (c) If the online merchant has no legal presence in the Philippines and the digital platforms or e-marketplace failed to provide the contact details thereof despite notice. The subsidiary liability of digital platforms or e-marketplace shall be limited only to the extent of damages suffered by the online consumer as a direct result of the transaction, without prejudice to other liabilities that may be incurred under this Act or other laws. Digital platforms or e-marketplaces shall not be held liable for their reliance in good faith on an online merchant's representations, warrantless, or submitted registration documents regardless if such information or documents are later proved to be inaccurate, false, or untrue: Provided, That the digital platform or e-marketplace must show evidence of good faith and that reasonable effort was exerted to ascertain and maintain the accuracy, authenticity and veracity of the documents or information submitted.
Solidary Liability of E-marketplace or Digital Platform.
SEC. 27. Solidary Liability of E-marketplace or Digital Platform. - The e-marketplaces or digital platforms shall be solidarily liable if it fails, after notice, to act expeditiously to remove, or disable access to goods or services appearing on its platform that are prohibited by law, imminently injurious, unsafe, or dangerous. Liability under this section shall be without prejudice to the imposition of appropriate penalties under Section 29 of this Act or other laws.
Provisions on this page are reproduced verbatim from official open data. See the attribution line.
Source: Official Gazette of the Republic of the Philippines — Philippine laws are public documents (works of the government).