meljun cortes e commerce law

8/10/2019 MELJUN CORTES E Commerce Law

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Phi lipp ine E-Commerce Law

Social & Ethical Dimens ions of

E-Commerce

Status and Trends in E-Commerce

MELJUN CORTES


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Republic Act No. 8792 - Electronic Commerce Act of 2000

AN ACT PROVIDING FOR THE RECOGNITION AND USE OF ELECTRONIC COMMERCIAL

AND NON -COMMERCIAL TRANSACTIONS AND DOCUMENTS, PENALTIES FORUNLAWFUL USE THEREOF AND FOR OTHER PURPOSES.

Objective:

To facilitate domestic and international dealings, transactions, arrangements,

agreements, contracts and exchanges and storage of information through the utilization

of electronic, optical and similar medium, mode, instrumentality and technology to

recognize the authenticity and reliability of electronic documents related to such

activities and to promote the universal use of electronic transaction in the government

and general public.

Sphere of Application:This Act shall apply to any kind of data message and electronic document used in the

context of commercial and non-commercial activities to include domestic and

international dealings, transactions, arrangements, agreements, contracts and

exchanges and storage of information.


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Essentially, the law provides:

Allows the formation of contracts in electronic form.

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

their needs.

Time of Dispatch of Electronic Data Messages or Electronic Documents. Unless

otherwise agreed between the originator and the addressee, the dispatch of anelectronic data message or electronic document occurs when

a. It enters an information system outside the control of the originator or of the

person who sent the electronic data message or electronic document on behalf

of the originator.

Time of Receipt of Electronic Data Messages or Electronic Documents. - Unlessotherwise agreed between the originator and the addressee, the time of receipt of

an electronic data message or electronic document is as follows:


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a. If the addressee has designated an information system for the purpose of receivingelectronic data message or electronic document, receipt occurs at the time

when the electronic data message or electronic document enters the

designated information system: Provided, however, that if the originator and the

addressee are both participants in the designated information system, receipt

occurs at the time when the electronic data message or electronic document is

retrieved by the addressee.

b. If the electronic data message or electronic document is sent to an information

system of the addressee that is not the designated information system, receipt

occurs at the time when the electronic data message or electronic document is

retrieved by the addressee;

c. If the addressee has not designated an information system, receipt occurs when the

electronic data message or electronic document enters an information system of

the addressee.


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Provide guidelines on place of dispatch and receipt of electronic data messages or

electronic documents.

Unless otherwise agreed between the originator and the addressee, an

electronic data message or electronic document is deemed to be dispatched at

a. Place where the originator has its place of business and received

b. At the place where the addressee has its place of business. This rule shall alsoapply to determine the tax situs of such transaction.

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.


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Mandates the government to have the capability to do e-commerce within 2 years

or before June 19, 2002.

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, NationalTelecommunications Commission, and National Computer Center 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.

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

telecommunications to be subject to electronic commerce law.


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Empowers the Department of Trade and Industry to supervise the development of

e-commerce in the country. It can also come up with policies and regulations, whenneeded, to facilitate the growth of e-commerce but without prejudice to the

provisions of Republic Act. 7653 (Charter of Bangko Sentral ng Pilipinas) and

Republic Act No. 337 (General Banking Act), as amended.

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

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.

Hacking or cracking, refers to unauthorized access including the introductionof computer viruses, is punishable by a fine from 100 thousand to maximum

commensurating to the damage. With imprisonment from 6 months to 3

years.


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Piracy through the use of telecommunication networks, such as the Internet,

that infringes intellectual property rights is punishable. The penalties are thesame as hacking.

All existing laws such as the Consumer Act of the Philippines also applies to e-

commerce transactions.

Anyone who uses the Internet, computer, cellular phone, and other IT- enableddevices has the duty to know RA8792.

DTIDepartment Administrative Order No. 08

Prescribing guidelines for the protection of personal data in information and

communication systems in the private sector.

Objective and Sphere of Application

1. To encourage and provide support to private entities top adopt privacy policies for

the protection of personal data in information and communication system in the

private sector.


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BSP CIRCULAR NO. 542, Series of 2006

BSP CIRCULAR NO. 542, Series of 2006

3. E-Banking Risk Management and Internal Control

* Information Security Program

* Information Security Measures

* Authentication

* Account Origination and Customer Verification* Monitoring and Reporting of E-banking Transactions

4. Consumer Awareness Program

5. Disclosure and Business Availability

6. Complaint Resolution


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Social and Ethical Dimension of E-Commerce

Strengths/Benefits- Inexpensive, ultra-reliable connectivity

- New markets

- Open

- Not controlled by any single authority

- Reliable

- Electronic mail

- Web banking and shopping- Global connectivity

- Research for doing ones job


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Weaknesses- Not controlled by anybody

- No privacy

- Duplication is easy

- Dont know whos on the other end of the line

- Global: how do you enforce laws? Whose laws?

Location and time


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Many organizations may not perceived or have not yetconsidered the new enormous risks that e-commerce

presents to the business community, to the government and

to the public in general.

The increased reliance on information and communication

technologies and the heightened interconnectivity among

organizations create widespread theft, fraud, destruction,

and other forms of exploitation by offenders both inside and

outside the organizations.


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Computer crimes can be damaging to reputation, morale andthe very existence of the organization. Threats to business

include the following:

Financial Loss Legal repercussions

Loss of credibility and competitive edge

Blackmail

Loss of confidentiality

Sabotage


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External ThreatsHackers

Fraudsters

New technologies and products

Internal Threats

Lack of or inadequate policies

Network and system vulnerabilities

Poorly designed systems

Lack of user awareness and training

Loose or inadequate controls


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How customers will buy and how business will sell change. The

convergence of TV, net, wireless telephone across interactive fast real timebroadband networks is the click-stream.

Talking, thinking, sensing products are coming. Biometrics, GPS, always-on

internet devices, and connected cars. Every products will be online,

chatting and sensing us.

Security will be an increased risk factor in 2007. From hackers to identity

thieves, to terrorist and criminals. Business needs to invest in deeper

innovations in security and take it seriously. More sophisticated and

complex fraud, theft and terror attacks will threaten modern society. The

future of security as a product will be mission-critical to the organization.

Source: The 2007 Global Trends Report Top Ten forecasts every business needs to

prepare for now by Dr. James Canton


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E-Commerce Fraud Statistics

In 2005, around 1,500 Visa Card accounts in the Philippines

were compromised by hacking.

The 2005 National Consumers League Internet Scams FraudTrend Report disclosed that a total loss of about US$14

million was suffered by Americans using various modes of

payment.


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E-Commerce Fraud Statistics

Methods of Payment Reported by Consumers for Internet-Related

Fraud Complaints (January to December 2005)

19%

3%

10%

38%

12%1%

17%

Bank Account Debit

Cash Advance

Checks

Credit Cards

Money Order

Telephone BillWire Transfer