Lawmaker seeks to regulate online commerce

MANILA, Philippines  - A partylist legislator has proposed a bill seeking to protect online consumers and businesses from internet scams.

Alay Buhay Rep. Wes Gatchalian filed House Bill 2535, noting the need to address concerns on state regulations on the industry.

He said the online commerce in the Philippine is still in an infant stage which makes it very vulnerable to monetary scams.

Under the bill,  to be known as "Consumers and Merchants Online Protection Act of the Philippines," before the consumer is bound by an online contract, or any corresponding offer, the service provider shall provide the consumer with information on the description of the goods or services being offered; the goods or products conform to product standards; the identity of the third party seller, service provider, geographical address to which the consumer may address any complaints and the total price of the goods or services inclusive of taxes in a clear and comprehensible manner.

The service provider shall also provide the consumer with a copy of a signed contract or the confirmation of the contract through an electronic document as provided under the Electronic Commerce Act within a reasonable time.

The service provider shall also seek the express consent of the consumer before it charges or attempt to charge any consumer's credit card, debit card, bank account or other financial account for any goods or services sold in a transaction online through the Internet.

The bill also provides the consumer the right to cancel a payment where fraudulent methods have been made. It provides prohibition on data-pass used to facilitate certain deceptive internet sales transactions and negative option marketing.

The Department of Trade and Industry is mandated to promulgate the rules and regulation to implement the provisions of this Act, the bill said.

Violators shall be penalized with 2 years imprisonment and a fine of P20,000 or both.

"The bill is certainly not a perfect one, other areas and concerns might not have been addressed but we cannot afford not to bring order to our lives and this bill is an effort to craft a law that will foster a smooth functioning social order on online commerce and trading," Gatchalian said.

He said the Internet has brought with it many forms of businesses and new forms of marketing such as the e-commerce and the online shopping.

Gatchalian noted that online shopping in the country is on the uptrend, citing research firm Nielsen's estimates that there are at least 33.6 million Internet users and is still growing.