LITE B (MODULE 5 - ELECTRONIC COMMERCE ACT)

Commerce

Activity of buying and selling of goods or services among two or more parties

Traditional Commerce

Process of buying and selling of goods in person

E Commerce

Process of buying and selling of goods or services using an electronic medium such as the Internet

1979: Michael Aldrich

h invented electronic shopping (he is also considered as founder or inventor of eCommerce). This was done by connecting a transaction-processing computer with a modified TV through a telephone connection

E Commerce Mode of Payment

• Credit / Debit cards

• Pre-paid cards

• E wallet

• Mobile Banking

• Digital Banking

B2B (Business to Business)

the companies are doing business with each other (manufacturers, wholesalers, retailers etc.)

B2C (Business to Consumer)

the company will sell their goods and/or services directly to the consumer. The consumer can browse their websites and look at products, pictures, read reviews. Then they place their order and the company ships the goods directly to them.

C2C (Consumer to Consumer)

where the consumers are in direct contact with each other, no company is involved. It helps people sell their personal goods and assets directly to an interested party. Usually, goods traded are cars, bikes, electronics etc.

C2B (Consumer to Business)

the reverse of B2C, the consumer provides a good or some service to the company. Ex. an IT freelancer who demos and sells his software to a company

Growth of E-Commerce Market in the Philippines

• Cross-border selling still being fairly free loosely regulated

• No significant barriers to entry

• Low import taxes

• Country’s openness for foreign brands

Republic Act No. 8792

An Act Providing For The Recognition and Use of Electronic Commercial and Non-Commercial Transactions, Penalties for Unlawful Use Thereof, and Other Purposes, also known as the "Electronic Commerce Act.”

R.A. 8792

signed into law by Former President Joseph E. Estrada on June 14, 2000

Salient features of Republic Act 8792

It gives legal recognition of electronic data messages, electronic documents, and electronic signatures.

Electronic data message

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

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.

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.

Salient features of Republic Act 8792

Allows the formation of contracts in electronic form. Ex. SPA (Sales and Purchase Agreement

Salient features of Republic Act 8792

Makes banking transactions done through ATM switching networks absolute once consummated.

Salient features of Republic Act 8792

Parties are given the right to choose the type and level of security methods that suit their needs

Salient features of Republic Act 8792

Provides the mandate for the electronic implementation of transport documents to facilitate carriage of goods. This includes documents such as, but not limited to, multi-modal, airport, road, rail, inland waterway, courier, post receipts, transport documents issued by freight forwarders, marine/ocean bill of lading, non-negotiable seaway bill, charter party bill of lading.

Salient features of Republic Act 8792

Mandates the government to have the capability to do e commerce within 2 years or before June 19, 2002.

Salient features of Republic Act 8792

Mandates RPWeb to be implemented. RPWeb is a strategy that intends to connect all government offices to the Internet and provide universal access to the general public. The Department of Transportation and Communications (DOTC), National Telecommunications Commission (NTC), and National Computer Center (NCC) will come up with policies and rules that shall lead to substantial reduction of costs of telecommunication and Internet facilities to ensure the implementation of RPWeb.

Salient features of Republic Act 8792

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

Salient features of Republic Act 8792

Empowers the Department of Trade and Industry (DTI) to supervise the development of e-commerce in the country. It can also come up with policies and regulations, when needed, to facilitate the growth of e commerce.

Salient features of Republic Act 8792

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

Salient features of Republic Act 8792

Authorities and parties with the legal right can only gain access to electronic documents, electronic data messages, and electronic signatures. For confidentiality purposes, it shall not share or convey to any other person.

Salient features of Republic Act 8792

Hacking or cracking, refers to unauthorized access including the introduction of computer viruses (resulting in the corruption, destruction, alteration, theft or loss of electronic data messages or electronic documents) , is punishable by a fine from 100 thousand (P100,000.00) to maximum commensurate to the damage. With imprisonment from 6 months to 3 years.

Salient features of Republic Act 8792

Piracy (or the unauthorized copying, reproduction, dissemination, or distribution, importation, use, removal, alteration, substitution, modification, storage, uploading, downloading, communication, making available to the public, or broadcasting of protected material, electronic signature or copyrighted works including legally protected sound recordings or phonograms or information material on protected works) through the use of telecommunication networks, such as the Internet, that infringes intellectual property rights is punishable. The penalties are the same as hacking.

Salient features of Republic Act 8792

All existing laws such as the Consumer Act of the Philippines (RA 7394) also applies to e commerce transactions.