Internet Transaction Bill, where are you? (Sabong News)

Another proposed law in consumer protection on internet transaction may end up in the 18 Congress as a pending bill. The House approved on final and third reading it’s version  of the Internet Transaction  Act or HB 7805 on November 20, 2020. The Senate is yet to commence the second reading of its version SB 2489. I obtained a copy of the approved version of the House bill and the bill synopsis which  are partly reprinted here and edited for  space requirements. The HB 7805 synopsis are as follows: OBJECTIVES: KEY PROVISIONS: •     Prescribes a code of conduct for all businesses engaged in e-commerce. •     Covers any stage of all business-to-business and business-to-consumer e-commerce and internet transactions including those related to the following activities: (a)   Internet retail of consumer goods and services; (b)   Online travel services; (c)    Online media providers; (d)   Ride hailing services; and (e)   Digital financial services. •     Exempts consumer-to-consumer transactions from the operation of this Act, without prejudice to the application of other laws . •     Provides foreign entities doing business in the Philippines with three (3) options: (1) they can set up a domestic corporation or branch office in the Philippines; (2) they can appoint a resident agent; or (3) they can notify and submit its contact details to the proposed E-commerce Bureau. •     Ensures that competition between online and offline commercial activities is respected. •       Creates an  E -Commerce Bureau under the Department of Trade & Industry (DTI) which shall have authority over activities conducted over the internet which are currently not regulated. •     Establish, manage and maintain a Registry of Online Business (ROB) which shall provide consumers access to data and information of registered online business entities for purposes of verifying the validity, existence of and other relevant information pertaining to business entities. •     Specifies the limited liability of online platforms, as follows: (a)   Online platforms shall be solitarily liable with an online merchant to the consumer only to the extent of civil damages suffered by the consumer as a direct result of the transaction. (b)   Online platforms shall be liable for civil and administrative indemnity with online merchants only under the following instances: (1) fails to exercise ordinary diligence; (2) fails to remove goods or services not compliant with law; (3) permits an online merchant not authorized to do business in the Philippines. (c)    Online platforms shall not be held liable under the following instances: (1) relied on the authenticity of an online merchant’s representations, warranties or registration documents even if such information are later proved to be false, provided that the online operator is able to show evidence  of good faith; (2) relied on the representations, warranties or submissions of an online merchant stating that it is valid under the laws of the Philippines or conform to applicable laws, rules and regulations. •     Stipulates the obligations of both ride hailing service providers and consumers of ride hailing services. •     Directs the DTI to lead in the establishment of an industry-led E-commerceTrustmark to provide assurance of safety and security in internet transactions. •     Authorizes the Secretary of Trade and Industry to issue a provisional order directing a website, webpage, online application, social media account, and other similar platform found in violation of this Act, the Consumer Act of the Philippines, or any other related trade or consumer laws be taken down, made inaccessible in the Philippines, that no entity shall process any payment to any of those entities, or otherwise be rendered commercially inoperative, in order to abate any further violations. •     Penalizes online merchants who fail to register either as a sole proprietor, one-person corporation, partnership, corporation, or cooperative with a fine equivalent to one hundred percent (100%) of the amount of the digital goods offered or sold based on the market price as determined by the E Commerce Bureau, including confiscation of the goods as advertised. •     Penalizes consumers found guilty of breaking the law with a fine of up to Fifty Thousand Pesos (P50,000.00), while erring platform operators and online merchants shall be fined from Five Hundred Thousand Pesos (P500,000.00) to Five Million Pesos (P5,000,000.00) or their licenses shall be revoked, at the discretion of the courts. Consumers are hopeful that the 18 Congress  complete and enact the proposed internet transaction for the President’ s approval, lest this Congress will go on record as a failure to promote and enhance consumer protection . Atty. Vic Dimagiba , AB, LLB, LLM President , Laban Konsyumer Inc. Email at