E-COMMERCE: it's principes and backgrounds

law principles

1. E-COMMERCE Prepared by: BSLM-3A (Group 3)

2. TOPICS TO BE DISCUSSED What is E-Commerce? History of E-Commerce What is R.A 8792? History of R.A 8792 Purpose of R.A 8792 Objectives of R.A 8792 Underlying Principles of R.A 8792 Salient Features of R.A 8792 Issues/Concerns of the Act Future of E-Commerce in the Philippines Government Policies relating the Act

3. What is E-Commerce? Process of buying and selling goods electronically Encompasses other activities including online auctions, internet banking, payment gateways, and online ticketing

4. History of E-Commerce 1994- first E-commerce transaction signalled to the world that the “internet is open” for ecommerce transactions Mid 1990s- rise of Amazon and Alibaba

5. What is R.A 8792? Also known as E-Commerce Law of 2000 4th country in South East Asia that legislated a law on e-commerce. Patterned after the “UNCITRAL Model Law on Electronic Commerce” adopted by the United Nations Commission on International Trade Law (UNICITRAL) in 1996. Enactment came in response to the global devastation brought about by the ILOVEYOU virus Defined Philippine policy on electronic transactions to enable the country’s players and consumers to actively participate in electronic trade

6. History of R.A 8792 July 14, 2000 – signed into law by former President Joseph E. Estrada - corollary Implementing Rules and Regulations, drafted by the DTI, DBM, and BSP Based on Senate Bill no. 1902 and House Bill no. 9971 (Model Law on Electric Commerce)

7. Purpose of R.A 8792 To promote consumers welfare Promoting both Filipino and foreign investors to engage in an efficient and competitive retail trade practice that could facilitate in bringing down the prices Enables to higher the quality of goods and better services Wider choices that empower Filipino consumers

8. Objectives of R.A 8792 provide a secure legal framework and environment for electronic commerce protect the integrity of electronic documents and electronic signatures as well as its transmission and communication so as to build and ensure the trust and reliance of the public on electronic transactions

9. Underlying Principles of R.A 8792 The ECA is grounded on the functional equivalent approach ECA is technologically neutral

10. Salient Features of R.A 8792 ECA defined important terms such as computer, electronic data message, electronic signature, and electronic document It gave legal recognition to electronic data messages, electronic documents, and electronic signatures Provided guidelines for retention and storage of documents in electronic form It allowed the use of such electronic writings and signatures in both commercial and non-commercial transactions, thereby giving legal effect and validity to these electronic transactions Provided the mandate for the electronic implementation of transport documents to facilitate carriage of goods

11. Salient Features of R.A 8792 Allowed the formation of contracts in electronic form. (Section 16) Made banking transactions done through ATM switching networks absolute once consummated. (Section 16) Parties were given the right to choose the type and level of security methods that suit their needs. (Section 16) Mandated the government to have the capability to do e-commerce within 2years from effectivity of the law or before June 19, 2002. (Section 27) Mandated RPWeb to be implemented.(Section 28) Made cable, broadcast, and wireless physical infrastructure within the activity of telecommunications. (Section 28)

12. Salient Features of R.A 8792 Empowered the DTI to supervise the development of e-commerce in the country and to come up with policies and regulations to facilitate the growth of e-commerce.(Section 29) Provided guidelines as to when a service provider can be held liable. (Section 30) Authorities and parties with the legal right can only gain access to electronic documents, electronic data messages, and electronic signatures for confidentiality purposes and shall not share or convey these to any other person. (Sections 31 and 32) Hacking or cracking (unauthorized access)including the introduction of computer viruses became punishable by a fine from P100k to the maximum commensurate to the damage with imprisonment from 6 months to 3 years. (Section 33)

13. Salient Features of R.A 8792 Piracy through the use of telecommunication networks, such as the Internet, that infringes intellectual property rights became punishable. The penalties are the same as hacking. (Section 33) All existing laws such as the Consumer Act of the Philippines shall also apply to e-commerce transactions. (Section 33)

14. Issues/Concerns of the Act Electronic documents face the issue of their admissibility as evidence In the field of taxation, with regard to online purchase of goods between individuals indifferent States, where is the tax situs of the transaction? Problems on venue and jurisdiction Violation of privacy and security Issues on intellectual property rights Issues on other cybercrimes

15. Future of E-Commerce in the Philippines The ECA is a significant first step in developing the Philippine legal system It would be foolish to think that the passage of the ECA would resolve all those issues There are other major legal issues concerning electronic commerce which have been intentionally left out of the ECA The ECA is not a cure-all, but it simply laid the foundation for electronic transactions in the country

16. Government Policies relating to the Act Financing for Information Technology Build-Up(SME-FIT) DTI Administrative Order #8: Prescribing Guidelines for the Protection of Personal Data in Information and Communication Systems in the Private Sector Bangko Sentral ng Pilipinas Circular No. 542:Consumer Protection for Electronic Banking

17. Government Policies relating to the Act DTI-DOF Joint Administrative Order #2:Guidelines Implementing R.A. 8792 on Electronic Payment and Collection System (EPCS) in Government Executive Order No. 810: Institutionalizing the Certification Scheme for Digital Signatures and Directing Application of Digital Signatures in E-Government Services Insurance Commission Circular Letter 2014-47: Guidelines on Electronic Commerce of Insurance Products