Philippine Business & Compliance

What is E-Commerce Act?

Short answer

The Electronic Commerce Act of 2000 (Republic Act 8792) is the Philippine law that gives electronic documents, data messages and electronic signatures the same legal recognition as their paper equivalents. It establishes that a record is not invalid simply because it exists in electronic form, and it penalises unauthorised access to computer systems.

Also called: RA 8792, Electronic Commerce Act of 2000

The Act predates most of what people now mean by e-commerce, and it is better understood as an enabling law than as a rulebook for online selling. Its work is removing a category of objection: that a contract agreed by email, an invoice stored as a file, or a record kept only in a database cannot be relied on because nothing was printed and signed by hand.

Two consequences follow for anyone running an online business. Electronic records can be relied on as evidence where their integrity and origin can be shown, which is why audit trails, timestamps and access logs matter more than they look. And the provisions on unauthorised access mean a security failure is not purely a commercial matter. Rules on online selling itself come from consumer protection legislation and later e-commerce law rather than from this Act.

Common questions

Is a contract agreed over email legally binding in the Philippines?

Electronic documents and signatures carry legal recognition under the E-Commerce Act, so an agreement is not void simply for being electronic. Whether a particular exchange forms a binding contract still depends on ordinary contract law and on the document type, since some instruments carry extra formalities. This is general information, and anything material is worth confirming with counsel.

Related terms

Electronic Signature & Digital Signature

An electronic signature is any mark, sound or process in electronic form that identifies a signatory and indicates their approval of a document.

Consumer Act of the Philippines (RA 7394)

The Consumer Act of the Philippines (Republic Act 7394) is the country’s principal consumer protection law.

Data Privacy Act of 2012 (RA 10173)

The Data Privacy Act of 2012 (Republic Act 10173) is the Philippine law governing how organisations collect, store, use and share personal information.

Payment Gateway

A payment gateway is the service that carries a customer’s payment details from a checkout to the institutions that authorise and settle the money — card networks, banks, e-wallets.

Reading definitions because you are scoping a project? Skip ahead and just ask.