E-COMMERCE ACT [R.A. 8792]

Objective 1 of E-Commerce Act?

To facilitate domestic/international transactions using electronic means.

Objective 2 of E-Commerce Act?

To recognize authenticity and reliability of electronic documents.

Objective 3 of E-Commerce Act?

To promote universal use of electronic transactions in government.

To what activities does the E-Commerce Act apply?

Any electronic document in commercial and non-commercial activities.

"Computer" refers to?

A device that receives, records, transmits, stores, and processes information electronically.

"Information and Communications System" refers to?

A system for generating, sending, receiving, or storing electronic documents and data.

"Originator" is the person who?

Created, generated, and/or sent the electronic document.

"Addressee" is the person who?

Is intended by the originator to receive the electronic document.

"Intermediary" is a person who?

Sends, receives, and/or stores an electronic document on behalf of another.

"Electronic data message" is?

Information generated, sent, received or stored by electronic/optical means.

"Electronic document" is?

Information that establishes a right, extinguishes an obligation, or proves a fact.

"Electronic signature" is?

A mark, characteristic, or sound in electronic form representing a person's identity.

"Electronic key" is?

A secret code that secures sensitive information crossing public channels.

Service provider may NOT modify or alter content unless?

Specifically authorized to do so by the originator or addressee.

When is a document in writing requirement met by electronic document?

If it maintains integrity and reliability AND can be authenticated.

When is a document in original form requirement met by electronic document?

If there is reliable assurance of integrity from when it was first generated.

For evidentiary purposes, an electronic document is the functional equivalent of what?

A written document under existing laws.

The Act does not modify rules on admissibility, except for?

Rules on authentication and best evidence.

What makes an electronic signature equivalent to a signature on a written document?

The signature is electronic AND proven by prescribed reliable procedure.

What is presumed about an electronic signature in proceedings?

It is the signature of the person it correlates to and was affixed intentionally.

When is original form met by an electronic data message?

If integrity is shown by evidence aliunde and it is capable of being displayed.

Who has the burden of proving an electronic document's authenticity?

The person seeking to introduce the electronic document in court.

How are electronic signatures authenticated?

By proof that the person used appropriate methodology with intention of authenticating/approving.

How are electronic documents authenticated?

By proof that appropriate security procedure was adopted to verify originator or detect error.

What can establish the integrity of the Information and Communication System (ICS)?

Evidence that the ICS was operating in a manner that did not affect integrity.

What is another way to establish ICS integrity?

Showing the document was stored by an adverse party to the proceedings.

Why can't an electronic document be denied admissibility in court?

Solely because it is in electronic form or not in standard written form.

What is the best evidence of an electronic agreement/transaction?

The electronic data message/document that meets legal recognition rules.

Factor 1 in assessing evidential weight of an electronic document?

Reliability of the manner it was generated, stored, or communicated.

Factor 2 in assessing evidential weight of an electronic document?

Reliability of the manner its originator was identified.

How is law requiring documents be retained in "original form" satisfied?

By retaining an electronic document that remains accessible and usable.

What is required for electronic retention (Format)?

Retained in original format or one that accurately represents the original.

What is required for electronic retention (Identity/Time)?

Must enable identification of originator/addressee and time sent/received.

How is retention requirement met using a third party?

By using a third party service provided all retention conditions are met.

What is presumed established by an affidavit regarding admissibility?

Matters on admissibility and presumption of integrity.

Who can cross-examine a deponent of an affidavit?

A party adverse in interest to the party who introduced the affidavit.

Can electronic data be used to form a contract?

Yes, offer, acceptance, and elements can be expressed electronically.

When are bank-to-bank electronic transactions deemed consummated?

Upon actual dispensing of cash or debit/credit of accounts.

When is an electronic document deemed that of the originator (by a person)?

If sent by a person who had authority to act on the originator's behalf.

When is an electronic document deemed that of the originator (by a system)?

If sent by an information system programmed by or on behalf of the originator.

When is an addressee entitled to rely on an electronic document's attribution?

If the addressee properly applied an agreed-upon procedure for verification.

What can prevent the addressee from relying on a document's attribution?

If the addressee received notice that the document is not from the originator.

When is an electronic document regarded as a duplicate (Exception to Addressee Reliance)?

When it duplicates another and the addressee knew or should have known.

Is an acknowledgment of receipt of an electronic document generally necessary?

No, unless parties agree or the originator requests it.

When does the dispatch of an electronic data message occur (General Rule)?

When it enters an information system outside the originator's control.

When is an electronic data message received if a designated system exists?

Upon entry into the designated information system.

When is an electronic data message received if no designated system exists?

Upon entry into the information system of the addressee.

Where is an electronic document deemed dispatched?

At the place where the originator has its place of business.

Where is an electronic document deemed received?

At the place where the addressee has its place of business.

What is the place of business if an originator/addressee has more than one?

The place with the closest relationship to the underlying transaction.

When must an electronic document be unique in carriage of goods?

If used to convey a right or obligation meant for one person only.

Is a paper document valid if electronic documents were previously used in carriage?

No, unless the electronic use was terminated and replaced by paper.

Does the use of electronic documents make compulsory carriage law inapplicable?

No, that rule still applies even if the contract is electronic.

Deadline for Gov't agencies to adopt electronic transactions?

Within two (2) years from the date of the effectivity of the Act.

What must Gov't agencies accept electronically?

The creation, filing or retention of electronic data messages or documents.

What must Gov't agencies issue electronically?

Permits, licenses, or approval in the form of electronic data messages.

What must Gov't agencies accept electronically (Payments)?

Payments, and issue receipt acknowledging payments, electronically.

What must Gov't agencies promulgate to specify electronic use?

Appropriate rules, regulations, or guidelines after public hearing.

What must Gov't rules specify regarding security?

Control processes for adequate integrity, security and confidentiality.

General Rule on Service Provider Liability?

No civil or criminal liability for merely providing access to material.

Condition 1 for Service Provider (No Liability)?

Does not have actual knowledge that the material is unlawful or infringes rights.

Condition 2 for Service Provider (No Liability)?

Does not knowingly receive a financial benefit from the unlawful activity.

Exception to Service Provider Liability (Written Law)?

Any obligation imposed under any written law or regulatory regime.

Exception to Service Provider Liability (Court Order)?

Civil liability forming the basis for injunctive relief issued by a court.

Who is authorized access to an electronic file?

The individual or entity having a legal right to the possession or the use.

Can an electronic key be shared?

Not without the consent of the individual or entity in lawful possession.

Obligation of Confidentiality on accessed information?

Shall not convey to or share the same with any other person.

Unlawful Act: Hacking/cracking?

Unauthorized access into a computer system to corrupt, alter, steal, or destroy.

Penalty for Hacking/cracking (Imprisonment)?

6 months to 3 years.

Penalty for Hacking/cracking (Fine)?

Min P100,000 or max damage incurred.

Unlawful Act: Piracy?

Unauthorized copying/distribution of protected material through networks (internet).

Penalty for Piracy (Imprisonment)?

6 months to 3 years.

Penalty for Piracy (Fine)?

Min P100,000 or max damage incurred.

Penalty for other violations of the E-Commerce Act?

Max P1,000,000 fine or Max 6 years imprisonment.

Interpretation of the Act: Factor 1?

Due regard to its international origin.

Interpretation of the Act: Factor 2?

Need to promote uniformity and observance of good faith in trade.

Reciprocity Principle?

Benefits enjoyed only by parties whose country grants same benefits to Filipinos.