E Defenders Report on RA 8792 : The Electronic Commerce Act of 2000

Ignorantia legis neminem excusat. (Ignorance of the Law Excuses No One.)

Prepared by: Belen Constantino-David Miguel Villareal

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 by our legislators until in 2000 when Onel de Guzman unleashed one of the most dangerous computer virus in the digital world. The "I LOVE YOU" virus was in a form of email with an attachment that once opened, it erases or blurs the graphics and data. The estimated damaged was about $5.5-$10 billion worldwide. Unfortunately, the charges against de Guzman were dismissed as there was no law yet to address and to penalize him for what he had done.

The birth of RA 8792.

This event made our lawmakers realized the need for a new law that would cover both electronic commerce and cybercrimes and on June 14, 2000 the Republic Act 8792 also known as "Electronic Commerce Act of 2000" was enacted. This law was in accordance with the United Nations Commission on International Trade Law or UNCITRAL Model Law on Electronic Commerce in 1996. The purpose of this Model Law is to serve as a guide or pattern for countries in adopting new policies in response to the evolving behavior of commerce brought about by the digital age. With the RA 8792, this placed our country among those nations who recognized the necessity of having such law to address immediate problems or concern that come the growth of E-commerce.

Synopsis of E-Commerce Law

The state duly recognizes the importance of information and communication technology in nation-building thus supporting its development as stated in the Declaration of Policy, Part 1 section 2. Part 2 of the law properly defined the terms relevant to Ecommerce to avoid confusion in any legal proceeding. Acknowledging the validity or legality of electronic writing or documents, data messages and electronic signature/s as mentioned in Chapter II from section 6-13. Contracts by means of electronic data messages and electronic documents are considered legal and valid based on the provisions of the said law in Chapter III from sections 1624. This includes electronic transactions made through networking among banks. Aside from recognizing electronic documents and electronic messages as valid and legal, the law also ensures adaptable actions related to contracts of carriage of goods as found in Part III from section 25-26.

Synopsis.

This law promotes the government use of electronic data messages, electronic documents and electronic signature by implementing RPWEB. The RPWEB is an Administrative Order No 332 signed by then Pres. Fidel V. Ramos in November 7, 1997 "Directing All Government Agencies and Instrumentalities Including Local Government Units to Undertake Electronic Interconnection through the Internet..." Moreover, it has given authority to the Department of Trade and Industry to promulgate rules and regulations, as well as provide quality standards or issue certifications....and perform such other functions as may be necessary for the implementation of this Act in the area of electronic commerce..."

Synopsis.
Part V or the Final Provisions tackles several issues and as follows: 1. what is the extent of liability of a Service Provider? 2. When is an access considered lawful and obligation of confidentiality with regard to electronic data messages and electronic documents? And 3. Acts which are considered unlawful such as (a) hacking or cracking which is punishable by a minimum fine of one hundred thousand pesos (P100000) and a maximum commensurate to the damage done and imprisonment of six (6) months to three (3) years. (b) piracy or the unauthorized copying or reproduction of protected material or copyrighted works shall be fined a minimum of one hundred thousand pesos (P100000) and imprisonment ranging from six (6) months to three (3) years (c) Violations of the Consumer Act or Republic Act No. 7394 which are punishable with the same penalties as in A and B.

Case Study

The internet is a convergence of different servers from almost 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 to government. It is quite alarming that a lot of cybercrimes and related acts are still happening over the internet here in our country even after the implementation of the e-commerce law. This is because of the rapidly growing number of internet users and the convenience of doing online transactions instead of the traditional way (that is by going to the business establishment).

Case Study.
The case of a Dutch national who sued a real estate developer in Baguio for failing to deliver the title of a condominium property he purchased via the internet is just one of the many violations of the said law. In 2007, Ronald Groenhart saw the appealing website of SJC Corporation which claimed that they were developing a 24storey condominium unit named as Park Avenue in Baguio. Soon there were many exchange of emails and inquiries and finally after Mr. Groenhart thought the corporation was legitimate, he purchased the property. Electronic documents were sent to him which include the codevelopment contract, price list, payment plans, payment methods, and statement of account. Upon receiving the documents, 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 the payment of P2.48 million to the same account number of SJC corporation which the company confirmed they received it in November. Before that, Mr. Groenhart, sent the signed documents but the company didn't return to him a copy of the contract. When he didn't receive the documents, he inquired with the Housing Land Use and Regulatory Board (HLURB) and revealed to him that SJC never had any permit or license to develop or to sell real estate properties. Mr. Groenharts life savings was taken by a group of professional swindlers. This prompted him to press charges against the officers of SJC corporation for swindling, estafa and violation of the e-commerce law at the Baguio City prosecutor's office.

Under the E-commerce Law

signature of the person to whom it correlates and (b) The electronic signature was affixed by that person with the intention of signing or approving the electronic document..

Are all the exchanges of emails between Mr. Groenhart & SJC considered valid document? Yes. "Electronic documents shall have the legal effect, validity or enforceability as any other document or legal writing... The electronic document is reliable in the light of the purpose for which it was generated and in the light of all the relevant circumstances." Chapter 2, section 7. Are the electronic signatures of the SJC officers admissible? Yes. Chapter 2, sections 9 states: "(a) The electronic signature is the

The payments made by Mr. Groenhart were done electronically. Can these be considered as evidence? Yes. "Electronic transactions made through networking among banks, or linkages thereof with other entities or networks and vice versa, shall be deemed consummated upon the actual dispensing of cash or the debit of one account and the corresponding credit to another,

(continuation) whether such transaction is initiated by the depositor or by an authorized collecting party.. Chapter 3, section 16 paragraph 2. SJC is accountable for not complying with the contract of agreement under Part III Chapter 1- Carriage of Goods section 25 (e) undertaking to deliver goods to a named person or a person and (g) acquiring or transferring rights and obligations under the contract. If convicted, what will be the penalties of SJC officers? "Violations of the Consumer Act or Republic Act No. 7394 and other relevant or pertinent laws through transactions covered by or using electronic data messages or

Under the E-commerce Law

electronic documents, shall be penalized with the same penalties as provided in those laws....Other violations of the provisions of this Act, shall be penalized with a maximum penalty of one million pesos (P1,000,000) or 6 (six) years imprisonment." Part V, section 33 paragraphs (c) and (d).

Warrant of arrest were issued to the officers of SJC corporation and the case is still on going at the Regional Trial Court of Baguio City.

Conclusion

The case of Mr. Groenhart against SJC corporation is just one of the many crimes committed using the internet. Although there is an existing law to combat cybercrime and to protect netizen, it seems that cybercriminals are getting more aggressive by being more creative. They are able to escape the authorities because RA 8792 doesnt cover other crimes that can be committed in cyberspace like child pornography, computer-related forgery and computer-related fraud. A need to revise the law is necessary to meet the challenges of controlling transnational cybercrime and to respond to the growing demand for e-commerce.

conclusion
Aside from revising the law, government agencies need get their act together through the following recommendations: Increase the awareness of the public about the dangers of cybercrime by becoming responsible and ethical users of computers and information system. Setting up networking sites where the public can report cybercrime incidents. Upgrading the facilities and continuous training for law enforcers (including judges and prosecutors) who deal with cybercrime. Constantly coordinating with international organizations to address problems that emanated from other countries.

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