e defenders ra8792

8/3/2019 E Defenders RA8792

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The birth of RA 8792 also known as

“The E-commerce Law of the

Philippines”

The need for an E-commerce law was not foreseen byour legislators until in 2000 when Onel de Guzmanunleashed one of the most dangerous computer virusin the digital world. The "I LOVE YOU" virus was in aform of email with an attachment that once opened, iterases or blurs the graphics and data. The estimateddamaged was about $5.5-$10 billion worldwide.Unfortunately, the charges against de Guzman weredismissed as there was no law yet to address and topenalize him for what he had done.



Synopsis of E-Commerce Law

The state duly recognizes the importance of information andcommunication technology in nation-building thussupporting its development as stated in the Declaration of Policy, Part 1 section 2.

Part 2 of the law properly defined the terms relevant to E-commerce to avoid confusion in any legal proceeding.

Acknowledging the validity or legality of electronic writing ordocuments, data messages and electronic signature/s asmentioned in Chapter II from section 6-13.

Contracts by means of electronic data messages andelectronic documents are considered legal and valid based onthe provisions of the said law in Chapter III from sections 16-24. This includes electronic transactions made throughnetworking among banks.

Aside from recognizing electronic documents and electronicmessages as valid and legal, the law also ensures adaptableactions related to contracts of carriage of goods as found in

Part III from section 25-26.



Synopsis….

This law promotes the government use of electronicdata messages, electronic documents and electronicsignature by implementing RPWEB. The RPWEB is anAdministrative Order No 332 signed by then Pres. Fidel

V. Ramos in November 7, 1997 "Directing AllGovernment Agencies and Instrumentalities IncludingLocal Government Units to Undertake ElectronicInterconnection through the Internet..." Moreover, ithas given authority to the Department of Trade and

Industry to “promulgate rules and regulations, as wellas provide quality standards or issuecertifications....and perform such other functions asmay be necessary for the implementation of this Act inthe area of electronic commerce..."



Synopsis….

Part V or the Final Provisions tackles several issues and asfollows: 1. what is the extent of liability of a ServiceProvider? 2. When is an access considered lawful andobligation of confidentiality with regard to electronic datamessages and electronic documents? And 3. Acts which areconsidered unlawful such as (a) hacking or cracking whichis punishable by a minimum fine of one hundred thousandpesos (P100000) and a maximum commensurate to thedamage done and imprisonment of six (6) months to three(3) years. (b) piracy or the unauthorized copying orreproduction of protected material or copyrighted works

shall be fined a minimum of one hundred thousand pesos(P100000) and imprisonment ranging from six (6) months tothree (3) years (c) Violations of the Consumer Act orRepublic Act No. 7394 which are punishable with the samepenalties as in A and B.



Case Study

The internet is a convergence of different servers fromalmost all countries in the world. Millions of transactions are happening almost every minute

between business to business, business to consumer,business to government and government togovernment. It is quite alarming that a lot of cybercrimes and related acts are still happening overthe internet here in our country even after the

implementation of the e-commerce law. This isbecause of the rapidly growing number of internetusers and the convenience of doing onlinetransactions instead of the traditional way (that is bygoing to the business establishment).



Case Study….

The case of a Dutch national who sued a real estate developerin Baguio for failing to deliver the title of a condominiumproperty he purchased via the internet is just one of the manyviolations of the said law.

In 2007, Ronald Groenhart saw the appealing website of SJCCorporation which claimed that they were developing a 24-storey condominium unit named as Park Avenue in Baguio.Soon there were many exchange of emails and inquiries andfinally after Mr. Groenhart thought the corporation waslegitimate, he purchased the property.

Electronic documents were sent to him which include the co-development contract, price list, payment plans, paymentmethods, and statement of account. Upon receiving thedocuments, he instructed his bank to make a deposit of P100,000 as reservation fee to the said corporation.



Case Study…

A month later, he instructed his bank to make thepayment of P2.48 million to the same account number of SJC corporation which the company confirmed theyreceived it in November. Before that, Mr. Groenhart, sentthe signed documents but the company didn't return to

him a copy of the contract.

When he didn't receive the documents, he inquired withthe Housing Land Use and Regulatory Board (HLURB) andrevealed to him that SJC never had any permit or licenseto develop or to sell real estate properties. Mr. Groenhart’s

life savings was taken by a group of professionalswindlers.

This prompted him to press charges against the officersof SJC corporation for swindling, estafa and violation of

the e-commerce law at the Baguio City prosecutor's office.



Under the E-commerce Law…

Are all the exchanges of emailsbetween Mr. Groenhart & SJCconsidered valid document?

Yes. "Electronic documents shallhave the legal effect, validity orenforceability as any other

document or legal writing... Theelectronic document is reliable inthe light of the purpose for which it was generated and in the light of allthe relevant circumstances."Chapter 2, section 7.

Are the electronic signatures of theSJC officers admissible?

Yes. Chapter 2, sections 9 states:"(a) The electronic signature is the

signature of the person to whom itcorrelates and (b) The electronicsignature was affixed by that person with the intention of signing orapproving the electronic document..“

The payments made by Mr.Groenhart were done electronically.Can these be considered asevidence?

Yes. "Electronic transactions madethrough networking among banks,or linkages thereof with otherentities or networks and vice versa,shall be deemed consummated uponthe actual dispensing of cash or the

debit of one account and thecorresponding credit to another,



Under the E-commerce

Law…

(continuation…)

whether such transaction isinitiated by the depositor or by anauthorized collecting party..“ Chapter 3, section 16 paragraph 2.

SJC is accountable for notcomplying with the contract of agreement under Part III Chapter1- Carriage of Goods section 25 (e)undertaking to deliver goods to anamed person or a person and (g)acquiring or transferring rightsand obligations under thecontract.

If convicted, what will be the

penalties of SJC officers?"Violations of the Consumer Act orRepublic Act No. 7394 and otherrelevant or pertinent laws throughtransactions covered by or usingelectronic data messages or

electronic documents, shall bepenalized with the same penaltiesas provided in those laws....Otherviolations of the provisions of thisAct, shall be penalized with amaximum penalty of one millionpesos (P1,000,000) or 6 (six) years

imprisonment." Part V, section 33paragraphs (c) and (d).

Warrant of arrest were issued to the

officers of SJC corporation and thecase is still on going at the Regional

Trial Court of Baguio City.



Conclusion

The case of Mr. Groenhart against SJC corporation is justone of the many crimes committed using the internet.Although there is an existing law to combat cybercrimeand to protect netizen, it seems that cybercriminals aregetting more aggressive by being more creative. They areable to escape the authorities because RA 8792 doesn’t cover other crimes that can be committed in cyberspacelike child pornography, computer-related forgery andcomputer-related fraud. A need to revise the law is

necessary to meet the challenges of controllingtransnational cybercrime and to respond to the growingdemand for e-commerce.



conclusion…

Aside from revising the law, government agencies needget their act together through the followingrecommendations:

1. Increase the awareness of the public about the dangersof cybercrime by becoming responsible and ethical usersof computers and information system.

2. Setting up networking sites where the public can reportcybercrime incidents.

3. Upgrading the facilities and continuous training for law

enforcers (including judges and prosecutors) who deal with cybercrime.

4. Constantly coordinating with internationalorganizations to address problems that emanated fromother countries.



References:

• http://abernales.com/8792irr.htm

• http://www.baguiomidlandcourier.com.ph/archiveview.asp?mode=%20archives/2010/october/10-10-2010/bus3.txt

•

http://www.chanrobles.com/republicactno8792.htm• http://www.digitalfilipino.com/salient-features-of-republic-act-8792-the-e-commerce-

law

• http://www.dilg.gov.ph/PDF_File/issuances/republic_acts/RA_8792.PDF

• http://www.dlsu.edu.ph/research/centers/cberd/pdf/bus_focus/Phil_Laws_for_ECommerce.PD

• http://michaeldizon.wordpress.com/2008/12/02/guide-to-the-philippine-electronic-

commerce-act/• http://www.philstar.com/Article.aspx?articleId=620047&publicationSubCategoryId=67

• http://soriano-ph.com/wp-content/uploads/article/e-commerce.pdf

• http://www.templateswise.com/detail/link-189.html" title="Justice Gavel PowerPoint Template" target="_blank

• http://www.theparkavenuescam.com/

• http://www.theparkavenuescam.com/images/warrant_of_arrest.jpg

• http://www.unafei.or.jp/english/pdf/RS_No79/No79_12PA_Sosa.pdf

• http://www.wpclipart.com/money/bag_of_money.png.html

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