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Attorneys of the Philippines Legal News

Welcome to our legal news pages. Here is where we provide updates about what's happening in Philippines legal news, and publish helpful articles and tips for Pinoys researching legal matters.

A Step-by-Step Guide to Opening a Corporate Bank Account in the Philippines

A corporate bank account is an important tool for businesses to manage their finances, pay employees and suppliers, and receive payments from customers. It also helps to establish credibility and professionalism.

The process of opening a corporate bank account can be intimidating, but it is essential to have one to manage the business effectively. This guide provides a step-by-step overview of the account opening process and offers tips on how to maintain the account properly.

The purpose of this guide is to help business owners understand the requirements and process of opening a corporate bank account and to provide advice on how to maintain the account in good standing.

Preparing for Account Opening

Businesses need to choose the right type of account based on their needs. A checking account is ideal for managing day-to-day transactions, while a savings account is suitable for storing cash reserves. Other types of accounts include merchant services accounts for accepting credit card payments or loans for financing business operations.

Before applying for a corporate bank account, gather all the necessary documents. These may include:

  1. Proposed Articles of Incorporation - This document outlines the business's purpose, structure, and ownership.

  2. Proposed By-Laws - This document specifies how the business will be governed and the rights and responsibilities of shareholders and directors.

  3. Treasurer in Trust IDs - These are identification cards that prove the treasurer's identity.

  4. Treasurer in Trust Affidavit - This document attests that the treasurer will use the funds in the bank account solely for the business's benefit.

  5. Bank Account Forms such as specimen signature cards - These forms collect information about the business, including its legal name, address, and authorized signatories.

  6. Choose a bank - Research and compare banks to find the one that meets the business's needs. Consider factors such as fees, interest rates, services offered, and reputation.

Submitting Requirements

Submit requirements to the Securities and Exchange Commission (SEC) - For corporations, the SEC requires the submission of the Articles of Incorporation and By-Laws. The business needs to register with the SEC to obtain its SEC registration number.

Submit requirements to the chosen bank - Once the necessary documents are complete, submit them to the chosen bank. The bank will review the documents and request additional information, if necessary.

Wait for confirmation and account activation - The bank will review the documents and confirm if the account has been approved. Once approved, the bank will issue a welcome kit containing the account number, terms and conditions, and other relevant information.

Account Activation

Visit the bank to activate the account - Once the account is approved, visit the bank to activate it. Bring a valid ID and other documents that the bank may require, such as a business permit or business registration.

Submit additional requirements, if any - The bank may require additional documents or information, such as identification cards, to activate the account.

Set up online banking, if available - The bank may offer online banking services. If available, set up online banking to manage the account more efficiently. Online banking allows businesses to access their accounts and manage their finances from anywhere at any time.

Maintaining the Account

Maintain the minimum balance - The bank may require a minimum balance to keep the account open. Make sure to keep the account's minimum balance to avoid penalties or account closure.

Keep track of transactions and bank statements - Regularly monitor the account and keep track of transactions and bank statements to avoid errors or fraudulent activities. Review bank statements promptly and report any discrepancies to the bank immediately.

Update account information, if necessary - If there are any changes to the business's information, such as a change in address or authorized signatories, notify the bank promptly to update the account information.

Conclusion

In conclusion, opening a corporate bank account in the Philippines is easy and straightforward. All you need to do is provide the necessary documents, choose the right bank and make sure you follow all their regulations and open the account! With that done, you'll be well on your way to taking advantage of all the benefits that come with having a corporate bank account.

Export and Import Regulations: Navigating Trade Laws in the Philippines for Businesses

International trade plays a significant role in the economy of the Philippines. As a country with a thriving trade industry, it is essential for businesses engaged in importation and exportation to understand and comply with the trade laws and regulations set by the government. Failing to do so can result in delays, fines, and even legal repercussions, which can negatively impact the operations and reputation of your business. In this blog, we will discuss the key points to consider when navigating export and import regulations in the Philippines, to ensure smooth operations for your business.

Export and import regulations are crucial aspects of international trade in the Philippines. These regulations are put in place by the government to control the flow of goods in and out of the country, protect local industries, ensure compliance with international agreements, and safeguard public health, safety, and national security. It is imperative for businesses engaged in international trade to understand the importance of complying with these regulations to avoid any potential legal and operational issues.

Familiarize Yourself with the Philippine Tariff and Customs Code

The Philippine Tariff and Customs Code (PTCC) is the primary law that governs the importation and exportation of goods in the Philippines. It outlines the rules, procedures, and requirements for customs clearance, valuation, and classification of goods. It also provides information on customs duties, taxes, and other charges that may apply to imported or exported goods.

It is crucial for businesses to familiarize themselves with the PTCC to understand the legal framework and requirements for importing and exporting goods in the Philippines. This includes knowing the proper procedures for customs clearance, documentation, and valuation of goods, as well as understanding the customs duties, taxes, and charges that may apply to different types of goods.

Determine the Classification of Your Goods

Goods are classified according to the Harmonized System (HS), which is an internationally recognized system for goods classification. The HS is used by most countries, including the Philippines, to determine the tariff rates, taxes, and other charges that apply to imported or exported goods.

Proper classification of goods according to the HS is crucial, as it determines the applicable customs duties, taxes, and other charges. Incorrect classification can result in overpayment or underpayment of duties and taxes, which can lead to delays, fines, and penalties. It is essential to accurately classify your goods according to the HS to ensure compliance with customs regulations and avoid any potential legal and financial issues.

Obtain Necessary Permits and Licenses

Certain goods require permits or licenses from relevant government agencies in the Philippines before they can be imported or exported. Examples of goods that require permits or licenses include firearms, hazardous chemicals, agricultural products, and pharmaceuticals.

It is essential to determine if your goods require any permits or licenses and obtain them before engaging in import or export activities. Failure to obtain the necessary permits or licenses can result in delays, confiscation of goods, fines, and penalties. It is crucial to understand the specific requirements and processes for obtaining permits or licenses for your goods and ensure compliance with the regulations set by the relevant government agencies.

Comply with Customs Procedures

Complying with customs procedures is critical for businesses engaged in international trade in the Philippines. Customs procedures include the submission of proper documentation, accurate valuation of goods, and adherence to clearance procedures.

Proper documentation is necessary to provide accurate and complete information about the goods being imported or exported, such as invoices, packing lists, and shipping documents. An accurate valuation of goods is essential to determine the customs duties, taxes, and other charges that apply to the goods. Adherence to clearance procedures, such as filing the necessary forms and payment of duties and taxes, is crucial to ensure the timely release of goods from customs.

Failure to comply with customs procedures can result in delays, fines, confiscation of goods, and even legal actions. It is essential to have a thorough understanding of the customs procedures in the Philippines and ensure that all necessary documentation and procedures are followed accurately and in a timely manner to avoid any potential issues.

Stay Updated with Trade Policies and Regulations

Trade policies and regulations are subject to change, and it is crucial for businesses engaged in international trade in the Philippines to stay updated with the latest developments. Relevant government agencies, such as the Bureau of Customs, Department of Trade and Industry, and Department of Agriculture, regularly issue updates on customs regulations, tariff rates, and other trade policies.

It is important to regularly check for updates and stay informed about any changes in trade policies and regulations that may affect your business operations. This includes changes in tariff rates, import or export restrictions, documentation requirements, and other trade-related matters. Staying updated with trade policies and regulations can help you ensure compliance and avoid any potential penalties or delays in your import or export activities.

Consider Free Trade Agreements (FTAs)

The Philippines has signed several Free Trade Agreements (FTAs) with other countries and regions, such as ASEAN (Association of Southeast Asian Nations), Japan, China, South Korea, and the European Union. FTAs aim to promote trade and economic cooperation between countries by reducing or eliminating tariffs, quotas, and other trade barriers.

As a business engaged in international trade, it is important to understand the requirements and benefits of FTAs. This includes understanding the rules of origin, preferential tariff rates, and other provisions of the FTAs that may apply to your goods. Taking advantage of FTAs can provide your business with cost savings, increased competitiveness, and access to new markets.

Seek Professional Assistance

Navigating export and import regulations in the Philippines can be complex and challenging, especially for businesses without prior experience or expertise in international trade. Hiring a customs broker or trade consultant can provide valuable assistance in ensuring compliance with trade laws and regulations.

Customs brokers are licensed professionals who are knowledgeable about customs procedures, documentation requirements, tariff rates, and other trade-related matters. They can assist you in preparing and submitting accurate documentation, complying with customs procedures, and navigating the complexities of import and export regulations. Trade consultants can provide expert advice on trade policies, FTAs, permits and licenses, and other trade-related matters.

Seeking professional assistance when needed can help businesses avoid costly mistakes, delays, and penalties, and ensure smooth operations in international trade activities.

Final Thoughts

In conclusion, understanding and complying with export and import regulations in the Philippines are crucial for businesses engaged in international trade. Familiarizing yourself with the Philippine Tariff and Customs Code, determining the classification of your goods, obtaining necessary permits and licenses, complying with customs procedures, staying updated with trade policies and regulations, considering FTAs, and seeking professional assistance when needed are key points to consider.

Compliance with export and import regulations can help businesses avoid delays, fines, confiscation of goods, and legal actions, and ensure smooth operations in international trade activities. It is important to stay informed, be proactive, and seek professional assistance when needed to ensure compliance with trade laws and regulations in the Philippines and achieve success in your international trade endeavors.

Starting a Business in Manila, Philippines? Here's Your Step-by-Step Guide to DTI Business Registration

If you're planning to start a business in Manila, Philippines, one of the essential steps to take is to register with the Department of Trade and Industry (DTI). DTI Business Registration is necessary to establish your business legally and enjoy various benefits such as access to government programs and services. In this guide, we'll walk you through the step-by-step process of registering your business with DTI.

Understanding DTI Business Registration

DTI Business Registration is the process of securing a business name and registering your business with the DTI. The DTI is responsible for registering all types of businesses, including sole proprietorships, partnerships, and corporations, in the Philippines.

When you register your business with DTI, you'll get a Certificate of Business Name Registration. This certificate serves as proof that you're authorized to use your business name and operate your business in the Philippines.

Step-by-Step Guide to DTI Business Registration

A. Pre-registration

  1. Conduct a Business Name Search

Before you register your business, you need to make sure that your desired business name is available. You can check the availability of your proposed business name by visiting the DTI website or any DTI office. You can also conduct a name search using the Business Name Registration System (BNRS) online portal.

  1. Reserve Your Business Name

Once you've confirmed that your desired business name is available, you can proceed to reserve it. You can reserve your business name for up to 30 days by filling out the Business Name Registration Form and paying the reservation fee.

  1. Prepare Your Documentary Requirements

To register your business with DTI, you'll need to prepare the following documentary requirements:

  • Two copies of the duly accomplished Business Name Registration Form
  • Valid government-issued ID
  • Proof of payment of registration fee
  • Proof of payment of documentary stamp tax (if applicable)

B. Registration Proper

  1. Fill out the DTI Business Name Registration Form

Once you've reserved your business name and prepared the documentary requirements, you can now proceed to fill out the DTI Business Name Registration Form. Make sure to fill out the form accurately and completely.

  1. Submit Your Documentary Requirements

After filling out the form, you need to submit your documentary requirements to the DTI office where you reserved your business name. The DTI will review your documents, and if everything is in order, they'll issue your Certificate of Business Name Registration.

  1. Pay the Registration Fee

The registration fee for DTI Business Registration varies depending on the type of business structure you're registering. For sole proprietorships, the fee is PHP 200. For partnerships and corporations, the fee is PHP 500. You can pay the fee at any authorized payment center or online payment platform.

C. Post-registration

  1. Attend the DTI Business Name Registration Certificate Presentation

Once you've paid the registration fee, you'll need to attend the DTI Business Name Registration Certificate Presentation. During this presentation, you'll receive your Certificate of Business Name Registration and other important documents.

  1. Secure Additional Business Permits and Licenses

Depending on the nature of your business, you may need to secure additional permits and licenses from other government agencies such as the Bureau of Internal Revenue (BIR), the Securities and Exchange Commission (SEC), and the Department of Labor and Employment (DOLE).

Other Considerations

Aside from DTI Business Registration, there are other important factors to consider when starting a business in Manila, such as taxes, permits, and licenses. It's essential to do your research and seek the advice of professionals to ensure that you comply with all legal requirements and regulations.

Pay the registration fee

Once you have filled out the application form and gathered all the necessary documents, you can now proceed to paying the registration fee. The fee varies depending on the nature and size of your business. As of writing, the registration fee for a single proprietorship is PHP 1,000.00, while for partnerships and corporations, it ranges from PHP 2,000.00 to PHP 4,000.00.

You can pay the fee at the DTI office or through their online payment system. If you choose to pay online, you can use any of the following payment methods:

  • Credit card (Mastercard or Visa)
  • Debit card (Bancnet)
  • Over-the-counter payment (through partner banks)

After payment, you will be given a payment confirmation receipt. Keep this as proof of payment for your business registration.

Receive your business name registration certificate

Once you have completed all the requirements and paid the necessary fees, you can expect to receive your business name registration certificate from DTI within 2-3 working days. You can either personally pick it up at the DTI office or have it delivered to your registered address.

The certificate will contain important details about your business, such as your business name, address, and registration number. You can now use this certificate to apply for other permits and licenses necessary for your business operations.

Starting a business in Manila can be a challenging yet rewarding experience. With the help of this step-by-step guide to DTI business registration, you can ensure that your business is properly registered and compliant with the law. Good luck on your entrepreneurial journey!

Completing the DTI Business Registration Form

Once you have prepared all the necessary documents, it’s time to fill out the DTI Business Registration Form. Here are the steps:

  1. Go to the DTI website and click on the “Business Name Registration” tab.
  2. Fill out the online form with your personal and business information.
  3. Choose your preferred business name and provide alternatives in case your first choice is already taken.
  4. Indicate the nature of your business.
  5. Provide the address of your business and the names of your business partners, if applicable.
  6. Upload the required documents.
  7. Review and submit your application.

Conclusion

Starting a business in Manila, Philippines may seem daunting at first, but the DTI Business Registration process is straightforward and easy to follow. By following these steps and completing the necessary requirements, you can register your business with the DTI and start your entrepreneurial journey. Good luck!

Overview of Foreign Business Ownership in the Philippines

The Philippines has become one of the fastest-growing economies in Asia over the past few years. With a stable political climate and a growing consumer market, the country has attracted many foreign investors who are looking to expand their business operations in the region. However, foreign business ownership in the Philippines is subject to certain restrictions and limitations.

Foreign business ownership refers to the investment or ownership of a business by individuals or entities from another country. In the Philippines, foreign business ownership is essential to the country's economic growth and development. The inflow of foreign investments brings in new capital, technology, and expertise, creating employment opportunities and spurring economic activity.

In this blog, we will provide an overview of foreign business ownership in the Philippines, including its importance, laws, restricted industries, setting up a foreign-owned business, benefits, challenges, and risks.

Foreign Investment Act of 1991

The Foreign Investment Act of 1991 is the primary law governing foreign business ownership in the Philippines. The law was enacted to promote foreign investment and protect the rights of foreign investors. It aims to attract foreign investments that will help stimulate economic growth and development.

The law provides for the following features and objectives:

  • Encourage foreign investment in areas that will promote the country's economic development.
  • Ensure that foreign investors receive fair treatment and are protected from discrimination.
  • Promote technology transfer and employment generation.
  • Encourage the participation of Filipino citizens in the ownership, management, and operation of industries and enterprises.
  • Ensure that the entry of foreign investments will not be contrary to national security or public morals.

Despite the government's efforts to attract foreign investments, the law imposes certain restrictions and limitations on foreign ownership.

Restricted Industries and Sectors

The following industries and sectors are subject to foreign ownership restrictions in the Philippines:

  • Mass media (except recording)
  • Retail trade enterprises with a paid-up capital of less than US$2.5 million
  • Cooperatives
  • Small-scale mining
  • Private security agencies
  • Utilization of marine resources in archipelagic waters, territorial sea, and exclusive economic zone
  • Ownership of private lands
  • Educational institutions

The reason for these restrictions is to protect the interests of Filipino citizens and ensure that they have control over strategic industries and sectors. However, foreign investors can still participate in these industries through joint ventures or partnerships with Filipino citizens or corporations.

Key Requirements for Setting Up a Foreign-Owned Business in the Philippines

The process of setting up a foreign-owned business in the Philippines involves the following steps:

  1. Register with the Securities and Exchange Commission (SEC)
  2. Obtain necessary permits and licenses from the relevant government agencies
  3. Register with the Bureau of Internal Revenue (BIR) and obtain a Tax Identification Number (TIN)
  4. Apply for business permits and licenses from the local government units (LGUs)
  5. Comply with labor laws and regulations
  6. Open a bank account and deposit the minimum capital required by law

Foreign investors must also comply with the following key requirements and documents

  • Foreign Investment Application Form (FIA)
  • Proof of inward remittance of investment
  • Articles of Incorporation and By-laws
  • Bank Certificate of Deposit
  • Treasurer's Affidavit
  • Tax Clearance Certificate

Foreign Business Ownership Benefits

Foreign business ownership in the Philippines is beneficial to both foreign investors and the country's economy. The government offers incentives and benefits to attract foreign investors, such as tax holidays, exemptions, and reduced tax rates. These incentives aim to create a favorable business environment for foreign investors and promote economic growth.

Foreign business ownership also has a positive impact on the Philippine economy. It generates employment opportunities, promotes technology transfer, and fosters the growth of local industries and businesses. Foreign investments also contribute to the country's GDP, increase export capacity, and improve the balance of payments.

Challenges and Risks

Despite the benefits of foreign business ownership in the Philippines, foreign investors may face challenges and risks. Some of these challenges and risks include:

  • Bureaucratic red tape and delays in obtaining necessary permits and licenses
  • Inconsistent implementation of laws and regulations
  • Corruption and political instability
  • Inadequate infrastructure
  • Cultural and language barriers
  • Market competition and saturation

To mitigate these challenges and risks, foreign investors can partner with local firms, seek the assistance of professional advisers, and conduct due diligence on their prospective investments.

Conclusion

In conclusion, the Philippines is a great place to set up a business. It's important to understand the local culture and regulations, but once you do, you can take advantage of the low cost of setting up a business, the friendliness of Filipinos, and the cost-efficiency of having access to skilled labor.

No matter what type of business you might be looking to start in the Philippines, there are plenty of resources to help you get it done faster and easier than ever before. With the right knowledge and support system in place, anyone with an entrepreneurial spirit can make their mark in the beautiful nation that is The Philippines!

Starting a Business in the Philippines: Registering Your Business Name with DTI

Do you want to start a business in the Philippines but don't know where to begin? Are you feeling overwhelmed by all the steps and legal requirements necessary to get started? Don't panic - I was in your shoes once upon a time!

Getting your business name registered with DTI (Department of Trade and Industry) is one of the first steps of setting up a business legally. Doing so can ensure that no other entity has registered the same or similar name, helping you avoid possible legal issues down the line.

In this article, I'll be walking you through step-by-step how to go about registering your company name with DTI in the Philippines.

Understanding the DTI Business Name Registration Process

When registering your business with DTI, you will need to provide a business name (BN) that is distinct from your own name.

Research the availability of your chosen business name on DTI's website to confirm whether it can be used.

Register through DTI's Business Name Registration System, if your desired business name is available. Make sure to note the reference code given for future use of BNRS.

Complete your online registration form and then follow the instructions. Payment for the registration fee must be made within 7 calendar days from the application date, and can be paid via GCash, Credit/Debit Card, or through a eWallet such as oayMaya.

Registration fee:

Territorial Scope Fee
Barangay P200
City/Municipality P500
Regional P1,000

Once you have made payment, your Business Name will be registered. To download your certificate, go to Transaction Inquiry, read and agree to the Terms and Conditions, then enter the reference code from the registration form.

Choosing the Right Business Name

When registering your business name with the Department of Trade and Industry (DTI), it is important to choose a name that reflects the purpose and nature of your business. There are a few tips you should consider when selecting an appropriate name for your company.

First, try to pick a unique and memorable name that is easy to pronounce. The goal is for your customers to associate the name with your products or services, so it should be distinctive and catchy.

Secondly, double-check if the desired name has already been taken by another entity in the Philippines. You don’t want any confusion or potential legal issues down the road associated with trademark infringement!

Finally, make sure that all words used in the company name do not violate any existing prohibitions within Philippine law such as using certain words in the company's registered title or using offensive words or expressions. Additionally, avoid selecting names too similar to those of existing organizations or businesses as this may also bring about possible legal issues.

Overall, due diligence is key when selecting a business name and will best serve prospective business owners for success when registering their venture with DTI.

Common Mistakes to Avoid During DTI Registration

Common errors made during the registration process include not filling out all the required information, not providing proof of business address, typos or errors in spelling or abbreviations, and submitting too many or too few documents.

To avoid potential delays with your registration, double-check all the information you submit. Make sure you include up-to-date contact information such as email and phone number and that all spelling is correct. Also make sure to attach any documents necessary for the registration process as well as an accurate listing of what documents were attached to your application. Following these tips can help ensure a smooth and hassle-free registration process with DTI!

Conclusion: Register you Business Name with the DTI Now!

In conclusion, registering your business name with the DTI is a necessary and important step for any business. Not only does it make your business official, but it also protects you from potential legal issues that could arise in the future. Once you've gone through the process and have your business name approved, you're ready to start tapping into all of the amazing opportunities that entrepreneurship in the Philippines has to offer! Good luck!

E-Commerce and Online Business Law in the Philippines: Legal Compliance for Digital Entrepreneurs

In recent years, the Philippines has seen significant growth in e-commerce and online business activities. With the increasing popularity of online shopping and digital entrepreneurship, it is crucial for digital entrepreneurs to understand and comply with the legal requirements and regulations governing e-commerce and online business in the country. Failure to do so can result in legal liabilities, fines, and penalties that can adversely impact the success and reputation of your business.

Business Registration

One of the first steps in establishing an e-commerce or online business in the Philippines is to register your business name with the Department of Trade and Industry (DTI) or the Securities and Exchange Commission (SEC) for corporations. Registering your business name helps establish your brand identity and protects it from being used by others. Additionally, depending on the nature of your business, you may need to obtain permits and licenses from local government units (LGUs) or other relevant government agencies, such as the Food and Drug Administration (FDA) for food-related products or the National Telecommunications Commission (NTC) for telecommunications services.

Consumer Protection

Protecting the rights and interests of consumers is of utmost importance in e-commerce and online business. The Philippine Consumer Act applies to e-commerce businesses and sets forth the obligations of sellers in providing clear and accurate product descriptions, pricing, and terms of sale. This includes providing accurate information about the features, specifications, and conditions of the products or services being offered, as well as the total price, including taxes, shipping fees, and other charges. It is also essential to comply with data privacy laws, such as the Data Privacy Act of 2012, in handling customer personal information securely, including obtaining proper consent for data collection and use and implementing appropriate security measures to protect against data breaches.

Intellectual Property Rights (IPR)

Respecting the intellectual property rights (IPR) of others is crucial in e-commerce and online business. This includes trademarks, copyrights, and patents. It is essential to conduct thorough research to ensure that your business name, logo, or products do not infringe on the IPR of others. Additionally, registering your own trademarks or copyrights can help protect your brand and content from being copied or used without permission by others, and give you the right to take legal action against infringers.

Cybersecurity and Data Privacy

Cybersecurity and data privacy are critical aspects of e-commerce and online business. Complying with the Data Privacy Act of 2012 is necessary for collecting, using, and processing personal information of customers. This includes obtaining proper consent for data collection, implementing appropriate security measures to protect against data breaches, and ensuring that personal information is used only for the purpose for which it was collected. It is also important to regularly update and patch software and systems to protect against cybersecurity threats, such as hacking, malware, and data breaches.

Taxation

As with any business, e-commerce and online business in the Philippines are subject to taxation. It is important to register for the appropriate taxes, such as the Value Added Tax (VAT) or Percentage Tax, and comply with the tax filing and payment requirements of the Bureau of Internal Revenue (BIR). This includes keeping accurate records of sales, expenses, and other financial transactions related to your e-commerce or online business and filing regular tax returns on time. Failure to comply with tax requirements can result in penalties, fines, and legal liabilities.

Electronic Commerce Act

The Republic Act 8792 or The Electronic Commerce Act of 2000 is a key law that governs e-commerce in the Philippines. It provides legal recognition to electronic documents, signatures, and contracts, and sets forth the rights and responsibilities of parties engaged in e-commerce transactions. It also establishes the legal framework for electronic transactions, including online payments, electronic records, and electronic signatures

Dispute Resolution

Dispute resolution is an important aspect of e-commerce and online business. It is crucial to have clear and fair policies in place for handling customer complaints, returns, refunds, and other disputes that may arise in the course of your business operations. It is advisable to have clear terms and conditions, refund and return policies, and dispute resolution procedures on your website or online platform to manage customer expectations and avoid potential legal disputes. In the case of legal disputes, alternative dispute resolution mechanisms, such as mediation or arbitration, can be utilized to resolve the issues efficiently and cost-effectively.

Advertising and Marketing

Advertising and marketing play a significant role in e-commerce and online business. However, it is crucial to comply with advertising and marketing laws and regulations in the Philippines. This includes adhering to the Fair Trade Commission's rules on deceptive advertising, the Anti-Red Tape Act, and other relevant laws. It is important to ensure that your advertising and marketing practices are truthful, accurate, and not misleading to avoid legal liabilities and penalties.

Logistics and Shipping

Logistics and shipping are critical aspects of e-commerce and online business, and it is essential to comply with the laws and regulations related to transportation, customs, and trade. This includes obtaining the necessary permits, licenses, and clearances for shipping and transportation of goods, complying with customs regulations, and ensuring that your shipping practices are in line with local laws and regulations. It is also important to have clear shipping policies, including delivery times, shipping fees, and return or refund policies, to manage customer expectations and avoid potential disputes.

Conclusion

In conclusion, starting and operating an e-commerce or online business in the Philippines requires compliance with various legal requirements and regulations. From business registration to consumer protection, IPR, cybersecurity, taxation, electronic commerce, dispute resolution, advertising, marketing, and logistics, there are numerous legal considerations that digital entrepreneurs need to be aware of and adhere to. Failure to comply with these legal requirements can result in legal liabilities, fines, and penalties, which can adversely affect the success and reputation of your business.

Therefore, it is crucial to understand and comply with the legal landscape of e-commerce and online business in the Philippines to ensure smooth and lawful operations of your business. Seeking legal advice from qualified professionals is recommended to ensure compliance with all applicable laws and regulations. Remember, legal compliance is essential for the long-term success and sustainability of your e-commerce or online business in the Philippines.

Fake Products-You Get What You Pay For

Have you ever wondered why the oft-repeated statement "quality comes at a price" still rings true? While there are affordable products made of good quality materials, there are fake products sold in stores that look like the exact replica of its original counterpart. If you are not a keen buyer, you will mistake these fake products for real ones. 

Fake beauty cosmetics are very popular these days. Why shell out thousands of pesos when you can buy them for less? However, fake products have not gone through stringent inspections. Hence, they do not meet consumer product standards. What happens when we use counterfeit or fake products?

Fake cosmetics contain harsh chemicals. When applied to the skin, they can cause irritation or sometimes, more serious damage. Most of which even have lead content, known to be harmful to the body when ingested. Sure, not everyone can afford branded products, but there are still cheaper and safer alternatives. Going local not only saves you money but gives you greater peace of mind as well because you are aware you are using products that have passed the quality and safety standards.

Under Republic Act No. 7394 or the Consumer Act of the Philippines, counterfeit product refers to "any consumer product which, or the container or labeling of which, without authorization, bears the trademark, trade name, or other identifying mark, imprint, or device, or any likeness thereof, of a consumer product manufacturer, processor, packer, distributor, other than the person or persons who in fact manufactured, processed, packed or distributed such product and which thereby falsely purports or is represented to be the product of, or to have been packed or distributed by such consumer product manufacturer, processor, packer, or distributor."

Under Article 10 of the said Act, "whenever the departments find, by their own initiative or by petition of a consumer, that a consumer product is found to be injurious, unsafe or dangerous, it shall, after due notice and hearing, make the appropriate order for its recall, prohibition or seizure from public sale or distribution: Provided, That, in the sound discretion of the department it may declare a consumer product to be imminently injurious, unsafe or dangerous, and order is immediate recall, ban or seizure from public sale or distribution, in which case, the seller, distributor, manufacturer or producer thereof shall be afforded a hearing within forty-eight (48) hours from such order.

The ban on the sale and distribution of a consumer product adjudged injurious, unsafe or dangerous, or imminently injurious, unsafe or dangerous under the preceding paragraph shall stay in force until such time that its safety can be assured or measures to ensure its safety have been established."

What Is A Foreign Investments Act?

Foreign investments provide an economic boon, but investing in the Philippines proved to be a challenge because of the laws and processes involved. In 2015 alone, the country's economy has increased by 6.5%, and most of which are due to foreign investments. However, if you are a foreigner venturing into setting up a business in the Philippines, the process is not going to be easy. From endless paperwork to accomplishing BIR registration, the corporate law is, without a doubt, complicated.

Foreign investors and entrepreneurs have to be aware that there are government restrictions involved in foreign equity. This has been specified under Republic Act No. 7042 otherwise known as the Foreign Investments Act of 1991 (FIA). The act has been amended by Republic Act No. 8179. The Act provides a detailed explanation of the limitations on foreign equity.

REPUBLIC ACT NO. 8179 - AN ACT TO FURTHER LIBERALIZE FOREIGN INVESTMENTS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7042, AND FOR OTHER PURPOSES

Sec. 2. Sec. 7 of Republic Act No. 7042 is hereby amended to read as follows:

Sec. 7. Foreign Investments in Domestic Market Enterprises. – Non-Philippine nationals may own up to one hundred percent (100%) of domestic market enterprises unless foreign ownership therein is prohibited or limited by the Constitution and existing law or the Foreign Investment Negative List under Sec. 8 hereof.

Sec. 3. Sec. 8 of the Foreign Investments Act of 1991 is hereby amended to read as follows:

Sec. 8. List of Investment Areas Reserved to Philippine Nationals (Foreign Investment Negative List). – The Foreign Investment Negative List shall have two (2) component lists: A and B:

a) List A shall enumerate the areas of activities reserved to Philippine nationals by mandate of the Constitution and specific laws.

b) List B shall contain the areas of activities and enterprises regulated pursuant to law:

1) which are defense-related activities, requiring prior clearance and authorization from Department of National Defense (DND) to engage in such activity, such as the manufacture, repair, storage and/or distribution of firearms, ammunition, lethal weapons, military ordinances, explosives, pyrotechnics and similar materials, unless such manufacturing on repair activity is specifically authorized, with a substantial export component, to a non-Philippine national by the Secretary of National Defense; or

2) which have implications on public health and morals, such as the manufacture and distribution of dangerous drugs, all forms of gambling, nightclubs, bars, beer houses, dance halls, sauna and steam bathhouses and massage clinics.

Small and medium-sized domestic market enterprises with paid-in equity capital less than the equivalent of Two hundred thousand US dollars (US$200,000.00), are reserved to Philippine nationals: provided, that if (1) they involve advanced technology, or (2) they employ at least fifty (50) direct employees, then a minimum paid-in capital of One hundred thousand US dollars (US$100,000.00) shall be allowed to non-Philippine nationals.

Amendments to List B may be made upon recommendation of the Secretary of National Defense, or the Secretary of Health, or the Secretary of Education, Culture and Sports, indorsed by the NEDA, or upon recommendation motu propio, of NEDA, approved by the President, and promulgated by a Presidential Proclamation.

The Transitory Foreign Investment Negative List established in Section 15 hereof shall be replaced at the end of the transitory period by the first Regular Negative List to be formulated and recommended by NEDA, following the process and criteria, provided in Sections 8 and 9 of this Act. The first Regular Negative Lists shall be published not later than sixty (60) days before the end of the transitory period provided in said section and shall become immediately effective at the end of the transitory period. Subsequent Foreign Investment Negative Lists shall become effective fifteen (15) days after publication in a newspaper of general circulation in the Philippines: provided, however, that each Foreign Investment Negative List shall be prospective in operation and shall in no way affect foreign investment existing on the date of its publication.

Amendments to List B after promulgation and publication of the first Regular Foreign Investment Negative List at the end of the transitory period shall not be made more often than once every two (2) years.

Sec. 4. The Foreign Investments Act is further amended by inserting a new section designated as Sec. 9 to read as follows:

Sec. 9. Investment Rights of Former Natural-born Filipinos. – For purposes of this Act, former natural born citizens of the Philippines shall have the same investment rights of a Philippine citizen in Cooperatives under Republic Act No. 6938. Rural Banks under Republic Act No. 7353, Thrift Banks and Private Development Banks under Republic Act No. 7906, and Financing Companies under Republic Act No. 5980. These rights shall not extend to activities reserved by the Constitution, including (1) the exercise of profession, (2) in defense related activities under Sec. 8 (b) hereof, unless specifically authorized by the Secretary of National Defense, and (3) activities covered by Republic Act No. 1180 (Retail Trade Act), Republic Act No. 5487 (Security Agency Act). Republic Act No. 7076 (Small Scale Mining Act). Republic Act No. 3018, as amended (Rice and Corn Industry Act), and P.D. 449 (Cockpits Operation and Management).

Sec. 5. The Foreign Investments Act is further amended by inserting a new section designated as Section 10 to read as follows:

Sec. 10. Other Rights of Natural Born Citizen Pursuant to the Provisions of Article XII, Sec. 8 of the Constitution. – Any natural born citizen who has the legal capacity to enter into a contract under Philippine laws may be a transferee of a private land up to a maximum area of five thousand (5,000) square meters in the case of urban land or three (3) hectares in the case of rural land to be used by him for business or other purposes. In the case of married couples, one of them may avail of the privilege herein granted: provided, that if both shall avail of the same, the total area acquired shall not exceed the maximum herein fixed.

In case the transferee already owns urban or rural land for business or other purposes, he shall still be entitled to be a transferee of additional urban or rural land for business or other purposes which when added to those already owned by him shall not exceed the maximum areas herein authorized.

A transferee under this Act may acquire not more than two (2) lots which should be situated in different municipalities or cities anywhere in the Philippines: provided, that the total land area thereof shall not exceed five thousand (5,000) hectares in the case of rural land for use by him for business or other purposes. A transferee who has already acquired urban land shall be disqualified from acquiring rural land area and vice versa.

Sec. 6. The National Economic and Development Authority, in consultation with the Board of Investments, the Department of Trade and Industry and Securities and Exchange Commission, shall prepare and issue the necessary primer and other information campaign materials regarding the Foreign Investments Act and the amendments introduced thereto, with copies of said materials furnished all the Philippine embassies, consulates and other diplomatic offices abroad and disseminated to Filipino nationals, former natural-born Filipino citizens, and foreign investors, within sixty days after the effectivity hereof. 

Sec. 7. The NEDA is hereby directed to make the necessary amendments to the implementing rules and regulations of Republic Act No. 7042 in order to reflect the changes embodied in this Act.

Sec. 8. Sections 9 and 10 of Republic Act No. 7042 and all references thereto in said law are hereby repealed or modified accordingly. All other laws, rules and regulations and/or parts thereof inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

Sec. 9. If any part or section of this Act is declared unconstitutional for any reason whatsoever, such declarant shall not in any way affect the other parts or sections of this Act.

Sec. 10. This Act shall take effect fifteen (15) days after publication in two (2) newspapers of general circulation in the Philippines.

The Philippine Competition Act

Republic Act No. 10667 or the Philippine Competition Act provides policy of the Philippines for protecting and promoting competitive market. The Act believes that competition is intended to:

-encourage private investments;

-promote entrepreneurial spirit;

-enhance resource productivity; and

-facilitate technology development and transfer.

Sec. 5. Philippine Competition Commission. – To implement the national competition policy and attain the objectives and purposes of this Act, an independent quasi-judicial body is hereby created, which shall be known as the Philippine Competition Commission (PCC), hereinafter referred to as the Commission, and which shall be organized within sixty (60) days after the effectivity of this Act. Upon establishment of the Commission, Executive Order No. 45 designating the Department of Justice as the Competition Authority is hereby amended. The Office for Competition (OFC) under the Office of the Secretary of Justice shall however be retained, with its powers and functions modified pursuant to Section 13 of this Chapter.

The Commission shall be an attached agency to the Office of the President.

Sec. 6. Composition of the Commission. – The Commission shall be composed of a Chairperson and four (4) Commissioners. The Chairperson and the Commissioners shall be citizens and residents of the Philippines, of good moral character, of recognized probity and independence and must have distinguished themselves professionally in public, civic or academic service in any of the following fields: economics, law, finance, commerce or engineering. They must have been in the active practice of their professions for at least ten (10) years, and must not have been candidates for any elective national or local office in the immediately preceding elections, whether regular or special: Provided,That at least one (1) shall be a member of the Philippine Bar with at least ten (10) years of experience in the active practice of law, and at least one (1) shall be an economist. The Chairperson and the Commissioners who shall have the rank equivalent of cabinet secretary and undersecretary, respectively, shall be appointed by the President.

Sec. 7. Term of Office. – The term of office of the Chairperson and the Commissioners shall be seven (7) years without reappointment. Of the first set of appointees, the Chairperson shall hold office for seven (7) years and of the first four (4) Commissioners, two (2) shall hold office for a term of seven (7) years and two (2) for a term of five (5) years. In case a vacancy occurs before the expiration of the term of office, the appointment to such vacancy shall only be for the unexpired term of the predecessor.

The Chairperson and the Commissioners shall enjoy security of tenure and shall not be suspended or removed from office except for just cause as provided by law.

Sec. 8. Prohibitions and Disqualifications. – The Commissioners shall not, during their tenure, hold any other office or employment. They shall not, during their tenure, directly or indirectly practice any profession, except in a teaching capacity, participate in any business, or be financially interested in any contract with, or any franchise, or special privileges granted by the government or any subdivision, agency, or instrumentality thereof, including government-owned and -controlled corporations or their subsidiaries. They shall strictly avoid conflict of interest in the conduct of their office. They shall not be qualified to run for any office in the election immediately succeeding their cessation from office: Provided, That the election mentioned hereof is not a Barangay election or a Sangguniang Kabataan election. Provided, they shall not be allowed to personally appear or practice as counsel or agent on any matter pending before the Commission for two (2) years following their cessation from office.

No spouse or relative by consanguinity or affinity within the fourth civil degree of any of the Commissioners, the Chairperson and the Executive Director of the Commission may appear as counsel nor agent on any matter pending before the Commission or transact business directly or indirectly therein during incumbency and within two (2) years from cessation of office.

Sec. 9. Compensation and Other Emoluments for Members and Personnel of the Commission.— The compensation and other emoluments for the members and personnel of the Commission shall be exempted from the coverage of Republic Act No. 6758, otherwise known as the “Salary Standardization Act”. For this purpose, the salaries and other emoluments of the Chairperson, the Commissioners, and personnel of the Commission shall be set based on an objective classification system, taking into consideration the importance and responsibilities attached to the respective positions, and shall be submitted to the President of the Philippines for his approval.

Sec. 10. Quorum. – Three (3) members of the Commission shall constitute a quorum and the affirmative vote of three (3) members shall be necessary for the adoption of any rule, ruling, order, resolution, decision or other acts of the Commission.

Sec. 11. Staff. – The Commission shall appoint, fix the compensation, and determine the status, qualifications, and duties of an adequate staff, which shall include an Executive Director of the Commission. The Executive Director shall be appointed by the Commission and shall have relevant experience in any of the fields of law, economics, commerce, management, finance or engineering for at least ten (10) years. The members of the technical staff, except those performing purely clerical functions, shall possess at least a Bachelor’s Degree in any of the following lines of specialization: economics, law, finance, commerce, engineering, accounting, or management.

Sec. 12. Powers and Functions. — The Commission shall have original and primary jurisdiction over the enforcement and implementation of the provisions of this Act, and its implementing rules and regulations. The Commission shall exercise the following powers and functions:

(a) Conduct inquiry, investigate, and hear and decide on cases involving any violation of this Act and other existing competition laws motu proprio or upon receipt of a verified complaint from an interested party or upon referral by the concerned regulatory agency, and institute the appropriate civil or criminal proceedings;

(b) Review proposed mergers and acquisitions, determine thresholds for notification, determine the requirements and procedures for notification, and upon exercise of its powers to review, prohibit mergers and acquisitions that will substantially prevent, restrict, or lessen competition in the relevant market;

(c) Monitor and undertake consultation with stakeholders and affected agencies for the purpose of understanding market behavior;

(d) Upon finding, based on substantial evidence, that an entity has entered into an anti-competitive agreement or has abused its dominant position after due notice and hearing, stop or redress the same, by applying remedies, such as, but not limited to, issuance of injunctions, requirement of divestment, and disgorgement of excess profits under such reasonable parameters that shall be prescribed by the rules and regulations implementing this Act;

(e) Conduct administrative proceedings, impose sanctions, fines or penalties for any noncompliance with or breach of this Act and its implementing rules and regulations (IRR) and punish for contempt;

(f) Issue subpoena duces tecum and subpoena ad testificandum to require the production of books, records, or other documents or data which relate to any matter relevant to the investigation and personal appearance before the Commission, summon witnesses, administer oaths, and issue interim orders such as show cause orders and cease and desist orders after due notice and hearing in accordance with the rules and regulations implementing this Act;

(g) Upon order of the court, undertake inspections of business premises and other offices, land and vehicles, as used by the entity, where it reasonably suspects that relevant books, tax records, or other documents which relate to any matter relevant to the investigation are kept, in order to prevent the removal, concealment, tampering with, or destruction of the books, records, or other documents;

(h) Issue adjustment or divestiture orders including orders for corporate reorganization or divestment in the manner and under such terms and conditions as may be prescribed in the rules and regulations implementing this Act. Adjustment or divestiture orders, which are structural remedies, should only be imposed:

(1) Where there is no equally effective behavioral remedy; or

(2) Where any equally effective behavioral remedy would be more burdensome for the enterprise concerned than the structural remedy. Changes to the structure of an enterprise as it existed before the infringement was committed would only be proportionate to the substantial risk of a lasting or repeated infringement that derives from the very structure of the enterprise;

(i) Deputize any and all enforcement agencies of the government or enlist the aid and support of any private institution, corporation, entity or association, in the implementation of its powers and functions;

(j) Monitor compliance by the person or entities concerned with the cease and desist order or consent judgment;

(k) Issue advisory opinions and guidelines on competition matters for the effective enforcement of this Act and submit annual and special reports to Congress, including proposed legislation for the regulation of commerce, trade, or industry;

(l) Monitor and analyze the practice of competition in markets that affect the Philippine economy; implement and oversee measures to promote transparency and accountability; and ensure that prohibitions and requirements of competition laws are adhered to;

(m) Conduct, publish, and disseminate studies and reports on anti-competitive conduct and agreements to inform and guide the industry and consumers;

(n) Intervene or participate in administrative and regulatory proceedings requiring consideration of the provisions of this Act that are initiated by government agencies such as the Securities and Exchange Commission, the Energy Regulatory Commission and the National Telecommunications Commission;

(o) Assist the National Economic and Development Authority, in consultation with relevant agencies and sectors, in the preparation and formulation of a national competition policy;

(p) Act as the official representative of the Philippine government in international competition matters;

(q) Promote capacity building and the sharing of best practices with other competition-related bodies;

(r) Advocate pro-competitive policies of the government by:

(1) Reviewing economic and administrative regulations, motu proprio or upon request, as to whether or not they adversely affect relevant market competition, and advising the concerned agencies against such regulations; and

(2) Advising the Executive Branch on the competitive implications of government actions, policies and programs; and

(s) Charging reasonable fees to defray the administrative cost of the services rendered.

Sec. 13. Office for Competition (OFC), Powers and Functions. — The OFC under the Department of Justice (DOJ-OFC) shall only conduct preliminary investigation and undertake prosecution of all criminal offenses arising under this Act and other competition-related laws in accordance with Section 31 of Chapter VI of this Act. The OFC shall be reorganized and allocated resources as may be required therefor to effectively pursue such mandate.

CHAPTER III

PROHIBITED ACTS

Sec. 14. Anti-Competitive Agreements. –

(a) The following agreements, between or among competitors, are per se prohibited:

(1) Restricting competition as to price, or components thereof, or other terms of trade;

(2) Fixing price at an auction or in any form of bidding including cover bidding, bid suppression, bid rotation and market allocation and other analogous practices of bid manipulation;

(b) The following agreements, between or among competitors which have the object or effect of substantially preventing, restricting or lessening competition shall be prohibited:

(1) Setting or controlling production, markets, technical development, or investment;

(2) Dividing or sharing the market, whether by volume of sales or purchases, territory, type of goods or services, buyers or sellers or any other means;

(c) Agreements other than those specified in (a) and (b) of this section which have the object or effect of substantially preventing, restricting or lessening competition shall also be prohibited:Provided, Those which contribute to improving the production or distribution of goods and services or to promoting technical or economic progress, while allowing consumers a fair share of the resulting benefits, may not necessarily be deemed a violation of this Act.

An entity that controls, is controlled by, or is under common control with another entity or entities, have common economic interests, and are not otherwise able to decide or act independently of each other, shall not be considered competitors for purposes of this section.

SEC. 15. Abuse of Dominant Position. – It shall be prohibited for one or more entities to abuse their dominant position by engaging in conduct that would substantially prevent, restrict or lessen competition:

(a) Selling goods or services below cost with the object of driving competition out of the relevant market: Provided, That in the Commission’s evaluation of this fact, it shall consider whether the entity or entities have no such object and the price established was in good faith to meet or compete with the lower price of a competitor in the same market selling the same or comparable product or service of like quality;

(b) Imposing barriers to entry or committing acts that prevent competitors from growing within the market in an anti-competitive manner except those that develop in the market as a result of or arising from a superior product or process, business acumen, or legal rights or laws;

(c) Making a transaction subject to acceptance by the other parties of other obligations which, by their nature or according to commercial usage, have no connection with the transaction;

(d) Setting prices or other terms or conditions that discriminate unreasonably between customers or sellers of the same goods or services, where such customers or sellers are contemporaneously trading on similar terms and conditions, where the effect may be to lessen competition substantially:Provided, That the following shall be considered permissible price differentials:

(1) Socialized pricing for the less fortunate sector of the economy;

(2) Price differential which reasonably or approximately reflect differences in the cost of manufacture, sale, or delivery resulting from differing methods, technical conditions, or quantities in which the goods or services are sold or delivered to the buyers or sellers;

(3) Price differential or terms of sale offered in response to the competitive price of payments, services or changes in the facilities furnished by a competitor; and

(4) Price changes in response to changing market conditions, marketability of goods or services, or volume;

(e) Imposing restrictions on the lease or contract for sale or trade of goods or services concerning where, to whom, or in what forms goods or services may be sold or traded, such as fixing prices, giving preferential discounts or rebate upon such price, or imposing conditions not to deal with competing entities, where the object or effect of the restrictions is to prevent, restrict or lessen competition substantially: Provided, That nothing contained in this Act shall prohibit or render unlawful:

(1) Permissible franchising, licensing, exclusive merchandising or exclusive distributorship agreements such as those which give each party the right to unilaterally terminate the agreement; or

(2) Agreements protecting intellectual property rights, confidential information, or trade secrets;

(f) Making supply of particular goods or services dependent upon the purchase of other goods or services from the supplier which have no direct connection with the main goods or services to be supplied;

(g) Directly or indirectly imposing unfairly low purchase prices for the goods or services of, among others, marginalized agricultural producers, fisherfolk, micro-, small-, medium-scale enterprises, and other marginalized service providers and producers;

(h) Directly or indirectly imposing unfair purchase or selling price on their competitors, customers, suppliers or consumers, provided that prices that develop in the market as a result of or due to a superior product or process, business acumen or legal rights or laws shall not be considered unfair prices; and

(i) Limiting production, markets or technical development to the prejudice of consumers, provided that limitations that develop in the market as a result of or due to a superior product or process, business acumen or legal rights or laws shall not be a violation of this Act:

Provided, That nothing in this Act shall be construed or interpreted as a prohibition on having a dominant position in a relevant market or on acquiring, maintaining and increasing market share through legitimate means that do not substantially prevent, restrict or lessen competition:

Provided, further, That any conduct which contributes to improving production or distribution of goods or services within the relevant market, or promoting technical and economic progress while allowing consumers a fair share of the resulting benefit may not necessarily be considered an abuse of dominant position:

Provided, finally, That the foregoing shall not constrain the Commission or the relevant regulator from pursuing measures that would promote fair competition or more competition as provided in this Act.

Useful Laws For Online Businesses

Aside from brick and mortar stores, many entrepreneurs are now venturing into online businesses for global exposure and wider public reach. Unfortunately, not all online transactions are successful. This is why there are laws, rules and regulations that govern online businesses. These laws protect consumers and business owners to ensure a smooth and problem-free transaction. 

1. Republic Act No. 8792 or Electronic Commerce Act of 2000

This Act aims 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.

2. Executive No. 810, s.2009 Institutionalizing The Certification Scheme For Digital Signatures And Directing The Application Of Digital Signatures In E-Government Services

The Rules on Electronic Evidence issued by the Supreme Court in 2001 in accordance with the provisions of the Electronic Commerce Act, defines digital signature as “an electronic signature consisting of a transformation of an electronic document or an electronic data message using an asymmetric or public cryptosystem such that a person having the initial untransformed electronic document and the signer’s public key can accurately determine: (i) whether the transformation was created using the private key that corresponds to the signer’s public key; and (ii) whether the initial electronic document had been altered after the transformation was made.

3. Executive Order No. 482, s.2005 or Creating The National Single Window Task Force For Cargo Clearance

SEC. 4. Functions of the Steering Committee. The Steering Committee shall be responsible for the following:

a. Setting of policy guidelines for the creation and operation of the NSW and the ASEAN Single Window (ASW) thereafter;

b. Crafting of financial schemes and strategies to finance the activities and projects under the NSW from its inception up to its operations to ensure sustainability; and

c. Ensuring the effective and efficient implementation of the NSW and ASW thereafter.

4. Executive Order No. 334, s. 2004 or Abolishing The Information Technology And Electronic Commerce Council And Transferring Its Budget, Assets, Personnel, Programs And Projects To The Commission on Information And Communications Technology

The Commission on Information and Communications Technology (CICT), created pursuant to Executive Order No. 269 dated 12 January 2004, functions as the primary policy, planning, coordinating, implementing, regulating, and administrative entity for ICT of the Executive Branch of the Government;

It is desirable to centralize all ICT and ICT-related programs and projects, functions and initiatives in one government agency;

The government recognizes that the development of ICT will have a higher chance of success and sustainability if it is private sector-led, market-based and government-enabled; and

There is a need for close coordination between the government and the private sector for the promotion and continued growth and development of ICT in the country.

5. Republic Act No. 9184 or The Government Procurement Reform Act

This 2016 Revised Implementing Rules and Regulations, hereinafter called the IRR, is promulgated pursuant to Section 75 of Republic Act No. (R.A.) 9184, otherwise known as the “Government Procurement Reform Act,” for the purpose of prescribing the necessary rules and regulations for the modernization, standardization, and regulation of the procurement activities of the Government of the Philippines (GoP).

Foreign Telcos Interested In The Philippine Market

Globe Telecom and PLDT are the two internet service providers dominating the Philippine market. If you check their social media pages,  you will see that both providers are not spared from the raves and rants of consumers, hoping to get faster connection and better customer service. The plea has fallen on deaf ears for decades. Unless you subscribe for a more expensive plan, you will not get a decent connection. However,  upgrading your plan does not guarantee stable connection either. 

The government eyes foreign telcos such as Telstra and China Telecommunications as part of the solution to the problem. Presently, the government allocates P77.9 billion for the National Broadband Project. Although no official statement from foreign telcos has been released, President Duterte believes that a third telco player can provide consumer better mobile and internet service. 

The case on allowing third player is still pending on Supreme Court. At the moment the consumers have one privilege to enjoy which is free public internet access program as mandated by Republic Act No. 10929. 

Section 3 of the said Act states that:

a) No fees shall be collected from users to connect to the public internet access points;

b) The free internet service provided shall be separate from the internet service used for backend computer systems and programs, databases, and/or management and information systems in government offices; Provided, that the shared use of infrastructure shall not be prohibited; and

c)Technical solutions that may limit or restrict access shall only be employed when there is clear and present technical risk or breach that cannot be remedied through ordinary technical solutions: Provided, that technical solutions that can likewise maintain or promote ease of access shall be prioritized and pursued. 

Philippine Lemon Law: A Law For Defective Products

There are instances when the motor vehicle you purchase does not meet your expectations. With the Philippine Lemon Law, motor vehicles that are deemed defective will be covered. A motor vehicle refers to any four-wheeled road vehicle such as vans, Sports Utility Vehicle (SUVs), sedans, station wagons, Asian Utility Vehicles (AUVs) and more. However, it is also important to note that motorcycles are not covered by the law. 

Although the law protects motor vehicles, only brand new motor vehicles that are purchased in the Philippines are protected by the Lemon Law. Brand-New means it is built or constructed from new parts, it is covered by an express warranty by the manufacturer and never been registered or sold with the Department of Transportation and Communications (DOTC). Here are the details of the Lemon Law:

Section 4. Coverage. – This Act shall cover brand new motor vehicles purchased in the Philippines reported by a consumer to be in nonconformity with the vehicle’s manufacturer or distributor’s standards or specifications within twelve (12) months from the date of .original delivery to the consumer, or up to twenty thousand (20,000) kilometers of operation after such delivery, whichever comes first. The following causes of nonconformity shall be excluded:

(a) Noncompliance by the consumer of the obligations under the warranty;

(b) Modifications not authorized by the manufacturer, distributor, authorized dealer or retailer;

(c) Abuse or neglect of the brand new motor vehicle; and

(d) Damage to the vehicle due to accident or force majeure.

Section 5. Repair Attempts. – At any time within the Lemon Law rights period, and after at least four (4) separate repair attempts by the same manufacturer, distributor, authorized dealer or retailer for the same complaint, and the nonconformity issue remains unresolved, the consumer may invoke his or her rights under this Act.

The repair may include replacement of parts components, or assemblies.

Section 6. Notice of Availment of Lemon Law Rights. – Before availing of any remedy under this Act and subject to compliance with the provisions of Section 5 hereof, the consumer shall, in writing, notify the manufacturer, distributor, authorized dealer or retailer of the unresolved complaint, and the consumer’s intention to invoke his or her rights under this Act within the Lemon Law rights period.

The warranty booklet issued by the manufacturer, distributor, authorized dealer or retailer shall clearly state the manner and form of such notice to constitute a valid and legal notice to the manufacturer, distributor, authorized dealer or retailer. It shall also clearly state the responsibility of the consumer under this section.

Section 7. Availment of Lemon Law Rights. – Subsequent to filing the notice of availment referred to in the preceding section, the consumer shall bring the vehicle to the manufacturer, distributor, authorized dealer or retailer from where the vehicle was purchased for a final attempt to address the complaint of the consumer to his or her satisfaction.

It shall be the duty of the manufacturer, distributor, authorized dealer or retailer, upon receipt of the motor vehicle and the notice of nonconformity required under Section 6 hereof, to attend to the complaints of the consumer including, as may be necessary, making the repairs and undertaking such actions to make the vehicle conform to the standards or specifications of the manufacturer, distributor, authorized dealer or retailer for such vehicle.

In case the nonconformity issue remains unresolved despite the manufacturer, distributor, authorized dealer or retailer’s efforts to repair the vehicle, pursuant to the consumer’s availment of his or her Lemon Law rights, the consumer may file a complaint before the DTI as provided for under this Act: Provided, however, That if the vehicle is not returned for repair, based on the same complaint, within thirty (30) calendar days from the date of notice of release of the motor vehicle to the consumer following this repair attempt within the Lemon Law rights period, the repair is deemedsuccessful: Provided, finally, That, in the event that the nonconformity issue still exists or persists after the thirty (30)-day period but still within the Lemon Law rights period, the consumer may be allowed to avail of the same remedies under Sections 5 and 6 hereof.

To compensate for the non-usage of the vehicle while under repair and during the period of availment of the Lemon Law rights, the consumer shall be provided a reasonable daily transportation allowance, an amount which covers the transportation of the consumer from his or her residence to his or her regular workplace or destination and vice versa, equivalent to air-conditioned taxi fare, as evidenced by official receipt, or in such amount to be agreed upon by the parties, or a service vehicle at the option of the manufacturer, distributor, authorized dealer or retailer. Any disagreement on this matter shall be resolved by the DTI. 

Nothing herein shall be construed to limit or impair the rights and remedies of a consumer under any other law. 

Section 8. Remedies for Dispute Resolution. – The DTI shall exercise exclusive and original jurisdiction over disputes arising from the provisions of this Act. All disputes arising from the provisions of this Act shall be settled by the DTI in accordance with the following dispute resolution mechanisms:

(a) Mediation

(1) The principles of negotiation, conciliation and mediation towards amicable settlement between the manufacturer, distributor, authorized dealer or retailer and the consumer shall be strictly observed;

(2) In the course of its dispute resolution efforts, the DTI shall endeavor to independently establish the validity of the consumer’s outstanding complaint. The DTI shall likewise retain the services of other government agencies or qualified independent private entities in the ascertainment of the validity of the consumer’s complaint. Any cost incurred in establishing the validity of the consumer’s complaint shall be bornejointly by the consumer and the manufacturer, distributor, authorized dealer or retailer;

(3) The complaint shall be deemed valid if it is independently established that the motor vehicle does not conform to the standards or specifications set by the manufacturer, distributor, authorized dealer or retailer;

(4) Upon failure of the negotiation or mediation between the manufacturer, distributor, authorized, dealer or retailer and the consumer, the parties shall execute a certificate attesting to such failure; and

(5) At any time during the dispute resolution period, the manufacturer, distributor, authorized dealer or retailer and the consumer shall be encouraged to settle amicably. All disputes that have been submitted for mediation shall be settled not later than ten (10) working days from the date of filing of the complaint with the DTI.

(b) Arbitration

In the event there is a failure to settle the complaint during the mediation proceedings, both parties may voluntarily decide to undertake arbitration proceedings.

(c) Adjudication

(1) In the event that both parties do not undertake arbitration proceedings, at least one of the parties may commence adjudication proceedings, administered by the DTI. The DTI shall rely on the qualified independent findings as to conformity to standards and specifications established herein. In no case shall adjudication proceedings exceed twenty (20) working days;

(2) In case a finding of nonconformity is arrived at, the DTI shall rule in favor of the consumer and direct the manufacturer, distributor, authorized dealer or retailer to grant either of the following remedies to the consumer:

(i) Replace the motor vehicle with a similar or comparable motor vehicle in terms of specifications and values, subject to availability; or

(ii) Accept the return of the motor vehicle and pay the consumer the purchase price plus the collateral charges.

In case the consumer decides to purchase another vehicle with a higher value and specifications from the same manufacturer, distributor, authorized dealer or retailer, the consumer shall pay the difference in cost.

In both cases of replacement and repurchase, the reasonable allowance for use, as defined in this Act, shall be deducted in determining the value of the nonconforming motor vehicle; and

(3) In case a nonconformity of the motor vehicle is not found by the DTI, it shall rule in favor of the manufacturer, distributor, .authorized dealer or retailer, and direct the consumer to reimburse the manufacturer, distributor, authorized dealer or retailer the costs incurred by the latter in validating the consumer’s complaints.

An appeal may be taken from a final judgment or order of the Adjudication Officer which completely disposes of the case within fifteen (15) days from receipt thereof. The appeal shall be taken by filing a Memorandum of Appeal with the Secretary of the DTI, with Notice of Appeal to the Adjudication Officer, and with a copy duly furnished the adverse party or parties on any of the following grounds:

(i) Grave abuse of discretion;

(ii) The decision/order is in excess of jurisdiction or authority of the Adjudication Officer; and

(iii) The decision/order is not supported by the evidence or there is serious error in the findings of facts.

The Secretary of the DTI shall decide on the appeal within thirty (30) days from receipt thereof. A party seeking further appeal from the decision of the Secretary of the DTI may file a case for certiorari to the Court of Appeals under Section 4, Rule 65 of the Revised Rules of Court.

Issuing Bouncing Checks: What Are Your Legal Liabilities

An individual can be held legally liable for the crime of estafa for issuing bouncing checks. Estafa and bouncing checks law have similarities, but they also have their own distinctions. It is essential to know both concepts as they will help you determine which one to file when a crime is committed. Batas Pambansa BLG. 22 defines law on issuance of a check without sufficient funds. 

BATAS PAMBANSA BLG. 22

AN ACT PENALIZING THE MAKING OR DRAWING AND ISSUANCE OF A CHECK WITHOUT SUFFICIENT FUNDS OR CREDIT AND FOR OTHER PURPOSES.

Section 1. Checks without sufficient funds. - Any person who makes or draws and issues any check to apply on account or for value, knowing at the time of issue that he does not have sufficient funds in or credit with the drawee bank for the payment of such check in full upon its presentment, which check is subsequently dishonored by the drawee bank for insufficiency of funds or credit or would have been dishonored for the same reason had not the drawer, without any valid reason, ordered the bank to stop payment, shall be punished by imprisonment of not less than thirty days but not more than one (1) year or by a fine of not less than but not more than double the amount of the check which fine shall in no case exceed Two Hundred Thousand Pesos, or both such fine and imprisonment at the discretion of the court. chan robles virtual law library 

The same penalty shall be imposed upon any person who, having sufficient funds in or credit with the drawee bank when he makes or draws and issues a check, shall fail to keep sufficient funds or to maintain a credit to cover the full amount of the check if presented within a period of ninety (90) days from the date appearing thereon, for which reason it is dishonored by the drawee bank. 

Where the check is drawn by a corporation, company or entity, the person or persons who actually signed the check in behalf of such drawer shall be liable under this Act. 

Sec. 2. Evidence of knowledge of insufficient funds. - The making, drawing and issuance of a check payment of which is refused by the drawee because of insufficient funds in or credit with such bank, when presented within ninety (90) days from the date of the check, shall be prima facie evidence of knowledge of such insufficiency of funds or credit unless such maker or drawer pays the holder thereof the amount due thereon, or makes arrangements for payment in full by the drawee of such check within (5) banking days after receiving notice that such check has not been paid by the drawee.

Sec. 3. Duty of drawee; rules of evidence. - It shall be the duty of the drawee of any check, when refusing to pay the same to the holder thereof upon presentment, to cause to be written, printed, or stamped in plain language thereon, or attached thereto, the reason for drawee's dishonor or refusal to pay the same: Provided, That where there are no sufficient funds in or credit with such drawee bank, such fact shall always be explicitly stated in the notice of dishonor or refusal.  In all prosecutions under this Act, the introduction in evidence of any unpaid and dishonored check, having the drawee's refusal to pay stamped or written thereon or attached thereto, with the reason therefor as aforesaid, shall be prima facie evidence of the making or issuance of said check, and the due presentment to the drawee for payment and the dishonor thereof, and that the same was properly dishonored for the reason written, stamped or attached by the drawee on such dishonored check. 

Notwithstanding receipt of an order to stop payment, the drawee shall state in the notice that there were no sufficient funds in or credit with such bank for the payment in full of such check, if such be the fact. 

Sec. 4. Credit construed. - The word "credit" as used herein shall be construed to mean an arrangement or understanding with the bank for the payment of such check. 

Sec. 5. Liability under the Revised Penal Code. - Prosecution under this Act shall be without prejudice to any liability for violation of any provision of the Revised Penal Code. 

Is A Contractor Necessary For Building A House?

You might have surely heard about horror stories involving house owners and contractors because of expectations that were not met. There are also cases when owners bypass hiring contractors and builders and they end up getting unsatisfactory results. Building a home, without a doubt is no joke because it involves spending your hard-earned money. While you are eager to build your dream home, there are other people who are going to make promises and just break them in the end. You may have already thought about building your dream house on your own. After all, the Internet can guide you in the right direction on the materials you need to buy and the requirements you need to comply. 

However, if you want to gain greater peace of mind, you need to consider hiring a building contractor. The reason is simple: These companies or individuals know the ins and outs of construction including the processes and products that will be used. For first-time customers, the process will always be filled with apprehension. This is why, it pays to do your homework so you can be sure that there is a trusted person responsible for the documentation, design and even day-to-day management of the construction process. 

The Advantage of Hiring a Contractor:

Contractors have substantial experience to ensure that costly mistakes and pitfalls are avoided in every construction project. For sure, just like anybody else, you cannot afford to lose a large chunk of money because the contractor neglected the project. Contractors' license is at stake. This is the reason they need to adhere to building codes and local ordinances. In the event your house catches fire, they are the ones who will face any complaint. Contractors have tried and tested strategies and methodologies so each construction project is delivered at faster time and lower cost. When you choose a reliable contractor, you will no longer have to take care of supervising the project yourself. 

Things to Consider When Hiring a Contractor:

1. Track Record-always check the contractor's track record so you will know whether or not they have successfully completed projects. Contractors will agree to tour you around projects, which have already been completed. These projects will help you decide whether or not the contractor can be trusted. 

2. Service Cost- the cost of service of most contractors will not be too apart from each other and they will usually provide you a price proposal that is lower than their competitors. Keep in mind that if the rate is too good to be true, it probably is. Make sure the price not too low as you might run the risk of getting your project at an unacceptable state or condition.

Truth in Lending Act

No matter how hard you try to make ends meet, there are times when cashflow becomes limited and if you have no one to turn to, lending firms are going to extend a helping hand by assisting you with your financial needs. Most creditors are considered as a breath of fresh air to people who are in need of instant cash. Once approved, the money becomes available within 24 hours and will be repaid on installment basis. 

Although creditors provide financial assistance, borrowers are often in confusion upon finding out that there are finance charges incurred on top of the amount borrowed. This is why creditors or lenders have to educate debtors or borrowers on the terms and conditions. 

The Republic Act No. 3765 provides detailed information of this policy:

Section 4. Any creditor shall furnish to each person to whom credit is extended, prior to the consummation of the transaction, a clear statement in writing setting forth, to the extent applicable and in accordance with rules and regulations prescribed by the Board, the following information:

(1) the cash price or delivered price of the property or service to be acquired;

(2) the amounts, if any, to be credited as down payment and/or trade-in;

(3) the difference between the amounts set forth under clauses (1) and (2);

(4) the charges, individually itemized, which are paid or to be paid by such person in connection with the transaction but which are not incident to the extension of credit;

(5) the total amount to be financed;

(6) the finance charge expressed in terms of pesos and centavos; and

(7) the percentage that the finance bears to the total amount to be financed expressed as a simple annual rate on the outstanding unpaid balance of the obligation.

Section 5. The Board shall prescribe such rules and regulations as may be necessary or proper in carrying out the provisions of this Act. Any rule or regulation prescribed hereunder may contain such classifications and differentiations as in the judgment of the Board are necessary or proper to effectuate the purposes of this Act or to prevent circumvention or evasion, or to facilitate the enforcement of this Act, or any rule or regulation issued thereunder.

Section 6. (a) Any creditor who in connection with any credit transaction fails to disclose to any person any information in violation of this Act or any regulation issued thereunder shall be liable to such person in the amount of P100 or in an amount equal to twice the finance charged required by such creditor in connection with such transaction, whichever is the greater, except that such liability shall not exceed P2,000 on any credit transaction. Action to recover such penalty may be brought by such person within one year from the date of the occurrence of the violation, in any court of competent jurisdiction. In any action under this subsection in which any person is entitled to a recovery, the creditor shall be liable for reasonable attorney's fees and court costs as determined by the court.

(b) Except as specified in subsection (a) of this section, nothing contained in this Act or any regulation contained in this Act or any regulation thereunder shall affect the validity or enforceability of any contract or transactions.

(c) Any person who willfully violates any provision of this Act or any regulation issued thereunder shall be fined by not less than P1,00 or more than P5,000 or imprisonment for not less than 6 months, nor more than one year or both.

(d) No punishment or penalty provided by this Act shall apply to the Philippine Government or any agency or any political subdivision thereof.

(e) A final judgment hereafter rendered in any criminal proceeding under this Act to the effect that a defendant has willfully violated this Act shall be prima facie evidence against such defendant in an action or proceeding brought by any other party against such defendant under this Act as to all matters respecting which said judgment would be an estoppel as between the parties thereto. 

8 New Philippine Laws: Part 4 of 8 No Shortchanging Act

Whenever you go to a 'sari-sari' store or a business establishment and the owner or cashier is short of change, they will either give you a candy or tell you that they owe you a few cents. Most buyers do not bother to demand for the exact change. After all, the amount is less than a peso. Although this is a common and acceptable act to people running a business in the Philippines, enacting a bill into a law, which requires establishments to provide exact change will render this practice a violation. 

The law ensures that providing exact change to customers becomes a legal responsibility. Business owners should prepare peso coins to complete the buyer's change. Reasoning that you do not have a few cents to complete the change will no longer be an acceptable excuse. 

In fact, it is much better to provide excess change that give customers less than what you owe them. If you used to consider giving candies as an acceptable option for the lack of loose coins or bills, the law will prohibit this act. Customers are also encouraged to demand for exact change.

Republic Act No. 10909

Sec. 3. Definition of Terms. - For the purpose o this Act, the following terms shall mean:

a)Business establishment - any person, natural or juridical, whether single proprietorship, partnership or corporation, including a government-owned and -controlled corporation or a government entity exercising its proprietary functions, engaged in, or doing business in the Philippines, either in selling goods or providing services;

b) Change - the excess in the payment given by a consumer for goods and services purchased or received from a business establishment;

c) Consumer - a natural person who purchases goods or services in cash;

d) Goods - all types of tangible property that could be bought and sold, and the possession of which could be transferred in whole or in part, temporarily or permanently. 

e) Gross sales - the total invoice value of sales, before deducting for customer discount, allowances and returns;

f) Insufficient change - a change that is less than what is due the consumers;

g) Price - tag any device written, printed, affixed or attached to a good, or displayed in a consumer retail or service establishment for the purpose of indicating the retail price per unit or services;

h) Services - all types of commercial activities which enable the supply, access to, consumption or use of goods, intellectual property or other services; and 

i) Shortchange - the act of giving insufficient or no change to a consumer who purchased a product or service. 

Sec. 6. Penalties. - Any violation of this Act as determined by the DTI under Section 5 hereof shall be punished as follows: for the first offense, a violator shall be fined five hundred pesos (P500.00) or three percent (3%) of the gross sales of the business establishment on the day of the violation, whichever is higher; for the second offense, a violator shall be fined five thousand pesos (P5,000.00) or five percent (5%) of the gross sales whichever is higher; for the third offense, a violator shall be fined fifteen thousand pesos (P15,000.00) or seven percent (7%) of the gross sales of the business establishment on the day of the violation, whichever is higher, and the license to operate of the business establishment shall be suspended for three (3) months; and for the fourth offense, a violator shall be fined twenty-five thousand pesos (P25,000) or ten percent (10%) of the gross sales of the business establishment on the day of the violation, whichever is higher, and the license to operate of the business establishment shall be revoked. 

Philippine Legal Forms: Rent-To-Own Contract

There are many deterrents to purchasing your dream home and one of which is the difficulty of resources that will provide financial assistance. Without a doubt, if you are cash strapped, your options are limited and sometimes, your dream of buying the home you want, has to take a backseat. 

These days, rent-to-own is an option many potential buyers would like to explore because it provides you two options: rent a home or purchase it during your rental period. It differs from traditional financing because the owner is the one offering financing to buyers. Just like any agreement between buyers and sellers, a contract will be secured to make sure that both parties have understood what they have entered into. 

RENT TO OWN CONTRACT

 

This Contract of Lease with Option to Purchase (Rent-to-Own Contract) made and executed this ____of __________ 20___ Manila, Philippines by and between.

 

__________________________________, Filipino, of legal age, single/married to, with post address at ________________________, hereinafter referred to as the LESSOR/SELLER. 

 

-AND –

 

            __________________________________, Filipino, of legal age, single/married to, with postal address __________________________, hereinafter referred to as the LESSEE/BUYER.

 

WITNESSETH:

 

             THAT, for and in consideration of the payment of rent and the faithful compliance by the LESSEE/BUYER of all the stipulations and covenants hereinafter contained, the LESSOR/SELLER has agreed to lease unto the LESSE /BUYER the premises located at _______________________________, City of Manila under the following terms and conditions.

 

  1. PURPOSE: That the premises hereby leased shall be used exclusively by the LESSE/BUYER for residential purposes only and shall not be diverted to other uses. It is hereby expressly agreed upon that if at any time the premises are used for other purposes, the LESSOR/SELLER shall have the right to rescind this contract without prejudice to its other rights under the law.

  2. TERM: The term of this non–renewable lease is for ______________ months from _____________________ to ________________ inclusive.

  3. RENTAL RATE: The monthly rate for the leased premises shall be in PESOS:  ______________________ [_______________], Philippine currency. All rental payments shall be made payable to ______________________.

  4. DEPOSIT: That the LESSEE/BUYER shall deposit with the LESSOR/SELLER upon signing of this contract and prior to move in an amount equal to ten percent (10%) of the selling price or the sum of PESOS: _____________________________________________________, Philippine currency.

  5. RENTAL PAYMENT: The LESSE/BUYER shall issue, likewise, upon signing of this contract and prior to move in, Thirty (30) post-dated checks to cover monthly rental for the months of _________________ to __________________, each check dated on the _____ day of each month.

  6. DEFAULT IN PAYMENT: In case of default by the LESSEE/BUYER in the payment of the rent, such as when the checks are dishonored, the LESSOR/SELLER, at its option may terminate this contract and eject the LESSEE/BUYER as hereinafter provided. However, the LESSE/BUYER is given seven (7) days grace period within which to settle the account from date rental payment is due. Granting an extension to the aforesaid grace period may not be deemed as a waiver of LESSOR/SELLER right to terminate this contract and eject the LESSE/BUYER but in the event the LESSOR/SELLER so opts to grant a written request for extension, a penalty equivalent to three (3%) percent per month of the rental due, with a fraction of a month considered as one month shall be charged and assessed for delayed payments.

  7. SUB–LEASE: The LESSEE/BUYER shall not directly or indirectly sublet, allow or permit the leased premises to be occupied in whole or in part by any person, form or corporation; neither shall the LESSEE/BUYER assign its rights hereunder to any other person or entity and no right of interest thereto or therein shall be conferred on or vested in anyone by the LESSEE/BUYER without LESSOR/SELLER’s written approval.

  8. LESSE’S VISITORS, etc…: In case of damage to leased premises attributable to the LESSEE/BUYER, agents and/or visitors, repair of the same shall be for the account of the LESSEE/BUYER without prejudice to LESSOR/SELLER’s availment of any other right under the law.

  9. POWER, WATER CONSUMPTION & ASSOCIATION DUES:  Power, water and association dues shall be for the account of the LESSEE/BUYER.

  10. OTHER PUBLIC UTILITIES: The LESSEE/BUYER shall pay for its telephone, cable and electrical services and other public services and utilities.

  11. REPAIR AND MAINTENANCE: The LESSOR/SELLER shall deliver the leased as is where is. The LESSEE/BUYER hereby expressly acknowledges that the leased as is where is. The LESSE/BUYER hereby agrees and binds itself to undertake at its exclusive expense all minor and major repairs as may be required to maintain the leased premises in good state of repair, any provisions of law, present or future, or any stipulation in this agreement to the contrary notwithstanding.

  12. IMPROVEMENTS, ALTERATIONS AND RENOVATIONS: The LESSEE/BUYER shall not make any improvements, alternations and renovations in the leased premises without prior written consent of both the Association and the LESSOR/SELLER. It is understood that all permanent improvements shall be owned by the LESSOR/SELLER and may not be removed without the express and written consent of the LESSOR/SELLER.

  13. INJURY OR DAMAGE: The LESSEE/BUYER hereby assumes full responsibility for any damage which may be caused to the person or property of third person/s while remaining either casually or on business in any part of the premises leased. LESSEE/BUYER further binds itself to hold the LESSOR/SELLER harmless and free from any claim for such injury or damage. Provided, however, that the LESSOR/SELLER shall make necessary actions to correct said deficiencies to ensure that premises are in good and tenantable condition.

  14. DISTURBANCE OF POSSESSION: Disturbance or discontinuance of possession of the LESSEE/BUYER due to “force majeure” shall confer nor right of any kind to the LESSEE/BUYER as against the LESSOR/SELLER, by reason of inconvenience, annoyance or injury to business arising out of the necessity of repairing any portion of the leased premises.

  15. GOVERNMENT REGULATIONS: The LESSEE/BUYER, shall, at its own expense and risks, comply with all the laws, ordinances, regulations and orders of any agency of the government, national or local, affection or pertaining to the leased premises and to any effects or articles which said LESSEE/BUYER may have in its possession therein.

  16. ABANDONMENT OF PREMISES: Should the LESSEE/BUYER abandon the leased premises for a period of THIRTY (30) DAYS or vacate the premises before expiration of this Contract of Lease without notifying the LESSOR/SELLER and check payment for the current month is dishonored, the LESSOR/SELLER’S may immediately re-enter the leased premises and this lease shall thereon be automatically terminated.

  17. BREACH OF CONDITIONS: In case of breach by the LESSEE/BUYER of any of the conditions and covenants of this lease as herein stipulated, the LESSOR/SELLER at its option, may forthwith terminate and cancel this lease and the LESSEE/BUYER shall be liable for any and all damages as a result of such default and termination. Forfeiture of whatever rental desists and advances shall apply in case the LESSEE/BUYER violates any of the provisions in the contract. Forfeiture shall likewise apply should the LESSEE/BUYER fails to exercise his option to purchase after the expiration of this contract.

  18. NON-WAIVER OF LESSOR’S RIGHT: Failure of the LESSOR/SELLER to enforce strict performance by the LESSEE/BUYER of any of the terms, conditions and covenants of this agreement shall not be construed as waiver of any right or remedy that the LESSOR/SELLER’S may have, nor shall it be deemed as a waiver of any subsequent breach of the terms, conditions, and covenants contained therein. No waiver by the LESSOR/SELLER of its rights hereunder shall be deemed to have been made unless expressed in writing and signed by the LESSOR/SELLER.

  19. EXPIRATION OR CANCELLATION OF LEASE: At the expiration of the term of this lease or cancellation thereof, as herein provided, the LESSEE/BUYER will promptly deliver to the LESSOR/SELLER the leased premises with all corresponding keys and in as good and tenantable condition as the same is now, ordinary wear and tear excepted, devoid of all occupants, movable furniture, articles and effects of any kind.  Non-compliance with the terms of this clause by the LESSEE/BUYER will give the LESSOR/SELLER the right, at latter’s option, to refuse to accept the delivery of the premises and to compel the LESSEE/BUYER to pay therefrom at the same rate as herein provided plus an additional sum equal to Twenty Five (25%) percent thereof as penalty until the LESSEE/BUYER shall have complied with terms hereof. The same penalty shall, likewise, be imposed in case the LESSEE/BUYER shall refuse to leave the leased premises after the expiration of this Contract of Lease or the termination for any reason whatsoever.

  20. OPTION TO PURCHASE: For good & valuable consideration, the receipt whereof is hereby acknowledge from the LESSEE/BUYER.  The LESSOR/SELLER hereby extends an option to the LESSEE/BUYER to purchase for the amount of PESOS: ___________________________________________ [P __________________] of Lease on the 18th month or the period from 1st to _____ of __________, _______. The LESSEE/BUYER, at his/her/its exclusive option, conditioned on faithful compliance with all payments and undertakings contained herein, may convey his/her/its decision to avail of option to purchase in writing to the LESSOR/SELLER who thereafter shall credit all rental payments up to the __________ (___) month and the initial deposit stated above to down payment.

  21. BALANCE AFTER THIS LEASE AGREEMENT: If LESSEE/BUYER complied with all terms and conditions stated above, inclusive of payment of realty taxes, power, water and association dues, the outstanding balance of the LESSEE/BUYER shall be 70% of the Total Selling Price amount equivalent to PESOS: _____________________________________ [P_____________], Philippine currency. The LESSEE/BUYER hereby agrees to execute the Deed of Absolute Sale upon payment in full of the TOTAL PURCHASE PRICE. Failure of the LESSEE/BUYER to exercise his/its right to purchase within the period of 30 months from the execution of this contract shall mean forfeiture and abandonment of his right to purchase. In such case, all payment made during the term of this lease are considered rentals.

  22. TRANSFER EXPENSES: Documentary stamp tax, capital gain tax, registration fees, transfer tax, and other necessary expenses connected with the execution and registration of the sale shall be for the account of and paid by the LESSEE/BUYER.

  23. TAXES, UTILITIES AND OTHER ASSOCIATION IMPOSITIONS: For the duration of this lease, LESSEE/BUYER shall pay the Realty Taxes. However, should the LESSEE/BUYER not exercise the option to purchase, LESSOR/SELLER shall reimburse the LESSEE/BUYER of all the taxes, exclusive of penalties for delayed payments, if any, it had paid as well as the start-up fund of the Homeowners Association.

  24. JUDICIAL RELIEF AND PENALTY: Should any one of the parties herein be compelled to seek judicial relief against the other, the losing parties shall pay an amount equivalent to One Hundred Percent (100%) of the amount claimed in the compliant as attorney’s fees which shall in no case be less than P 100,000.00 pesos in addition to other cost and damages which the said party may be entitled to under the law, to recover from the other party. Provisions of penal character in this Contract of Lease shall be considered as cumulative to the relief granted by this section.

  25. RIGHTS AND INTERESTS: The rights and interests of the LESSOR/SELLER subject under this instrument shall be fully assignable by the LESSOR/SELLER subject only to previous written notice thereof to the LESSEE/BUYER.

  26. FORFEITURE OF DEPOSIT: Forfeiture of whatever rental deposit and advances shall apply to any of the following:

a. When the LESSEE/BUYER is in default in payment for three (3) months. In such a case, the LESSOR/SELLER shall have the right to prohibit entry of the LESSEE/BUYER, visitors, guests and his employees in the premises and the right to   padlock the leased premises until indebted is satisfied;

 

            b. When LESSEE/BUYER pre-terminates lease with or without cause;

            c. When LESSEE/BUYER violates any of the provisions of this contract; and

            d. When the LESSEE/BUYER fails to exercise his/her option to purchase.

27. PENAL PROVISION: The parties agree that all covenant and agreements herein contained shall be deemed conditions as well as covenants that if default or breach be made of any such covenants and conditions, then this lease may be terminated and cancelled and the party in breach shall be liable for any and all damages, actual and consequential, resulting from such breach or termination; provided however, that no default shall be declared under this lease unless the party in default has given written notice to cure such default within thirty (30) days. In the event of violation of this contract, other than the non-payment of rentals, the party in breach must immediately take remedial steps to cure the breach not later than thirty (30) days.

28. RIGHT OF ENTRY: LESSOR/SELLER or its authorized agent/s shall, after giving due notice to the LESSEE/BUYER, have the right to enter the premises in the presence of the LESSEE/BUYER or its representative at any reasonable hour to examine the same or to make repairs therein or for the operation of regular maintenance of the building or for any other lawful purpose which it may deem necessary.

This RENT TO OWN CONTRACT (CONTRACT OF LEASE WITH OPTION TO PURCHASE) shall be valid and binding, between the parties, their successors-in-interest and assigns. No amendment of the terms of the instrument shall be effective unless in writing and signed by the parties therein.

 

            IN WITNESS WHEROF, parties herein have affixed their signatures on the date and place first above written.

 

__________________________                           _______________________

[Name]                                                       [Name]

LESSOR/SELLER                                       LESSEE/BUYER

 

 SIGNED IN THE PRESENCE OF:

 

__________________________                           _______________________

 ACKNOWLEDGEMENT

 

Republic of the Philippines)

_________________________) S.S

                        BEFORE ME, a Notary Public, this   _____ day of ____________, 20___ personally appeared the following to witness:

 

       NAME                        CTC No.            DATE ISSUED        PLACE ISSUED 

 

-------------------------------       ---------------      ---------------------      ---------------------

-------------------------------       ---------------      ---------------------      --------------------- 

Known to me to be the same persons who have executed the foregoing, instrument and acknowledged to me that the same is of their own free will and voluntary act and deed as well as of the corporation herein represented.

 

This instrument consisting of ______ (__) pages, including the page on which this acknowledgement is written, has been signed on the left margin of each page and every page thereof by the parties and their instrumental witnesses and sealed with my notarial seal.

 

IN WITNESS WHEREOF, I have hereunto set my hand, the day, year and place above written.

 

Doc. No.  ______:

Page No.  ______:

Book No. ______:

Series No 20___.

Philippine Legal Forms: Lease Contract

In real estate, lease contract is considered as the most important legal form because it legally binds two or more parties often referred to as the landlord and tenant. The lease contract contains rental agreement, which specifies the tenant's right to live and the landlord's right to retain ownership. The contract protects both parties. For instance, if a tenant decides to move, a letter of cancellation must be provided to the landlord one month in advance to give ample time to find new occupants. 

 

LEASE CONTRACT

 

 

KNOW ALL MEN BY THESE PRESENTS:

 

This CONTRACT OF LEASE is made and executed at the City of _____, this day of _______________, 20__, by and between:

 

        (NAME OF LESSOR), of legal age, single/married to (Name of spouse if any),   Filipino, and with residence and postal address at (Address), hereinafter referred to as the LESSOR.

 

-AND-

 

        (NAME OF LESSEE), Filipino and with residence and postal address at (Address), hereinafter referred to as the LESSEE.

 

WITNESSETH; That

 

WHEREAS, the LESSOR is the owner of THE LEASED PREMISES, a residential property situated at (Address of property to be leased);

 

WHEREAS, the LESSOR agrees to lease-out the property to the LESSEE and the LESSEE is willing to lease the same;

 

NOW THEREFORE, for and in consideration of the foregoing premises, the LESSOR leases unto the LESSEE and the LESSEE hereby accepts from the LESSOR the LEASED premises, subject to the following: 

 

TERMS AND CONDITIONS

 

1. PURPOSES:   That premises hereby leased shall be used exclusively by the LESSEE for residential purposes only and shall not be diverted to other uses. It is hereby expressly agreed that if at any time the premises are used for other purposes, the LESSOR shall have the right to rescind this contract without prejudice to its other rights under the law.

 

2. TERM:  This term of lease is for ONE (1) YEAR. from (Date) to (Date) inclusive. Upon its expiration, this lease may be renewed under such terms and conditions as my be mutually agreed upon by both parties,  written notice of intention to renew the lease shall be served to the LESSOR not later than seven (7) days prior to the expiry date of the period herein agreed upon.

 

3. RENTAL RATE:   The monthly rental rate for the leased premises shall be in PESOS: AMOUNT IN WORDS (P 00,000.00), Philippine Currency. All rental payments shall be payable to the LESSOR.

 

4. DEPOSIT:   That the LESSEE shall deposit to the LESSOR upon signing of this contract and prior to move-in an amount equivalent to the rent for THREE (3) MONTHS or the sum of  PESOS: AMOUNT IN WORDS (P 00,000.00), Philippine Currency.  wherein the two (2) months deposit shall be applied as rent for the 11th and 12th months and the remaining one (1) month deposit shall answer partially for damages and any other obligations, for utilities such as Water, Electricity, CATV, Telephone, Association Dues or resulting from violation(s) of any of the provision of this contract.

 

5. DEFAULT PAYMENT:  In case of default by the LESSEE in the payment of the rent, such as when the checks are dishonored, the LESSOR at its option may terminate this contract and eject the LESSEE. The LESSOR has the right to padlock the premises when the LESSEE is in default of payment for One (1) month and may forfeit whatever rental deposit or advances have been given by the LESSEE.

 

6. SUB-LEASE:   The LESSEE shall not directly or indirectly sublet, allow or permit the leased premises to be occupied in whole or in part by any person, form or corporation, neither shall the LESSEE assign its rights hereunder to any other person or entity and no right of interest thereto or therein shall be conferred on or vested in anyone by the LESSEE without the LESSOR'S written approval.

7. PUBLIC UTILITIES:   The LESSEE shall pay for its telephone, electric, cable TV, water, Internet, association dues and other public services and utilities during the duration of the lease. 

8. FORCE MAJEURE:   If whole or any part of the leased premises shall be destroyed or damaged by fire, flood, lightning, typhoon, earthquake, storm, riot or any other unforeseen disabling cause of acts of God, as to render the leased premises during the term substantially unfit for use and occupation of the LESSEE, then this lease contract may be terminated without compensation by the LESSOR or by the LESSEE by notice in writing to the other.

9. LESSOR'S RIGHT OF ENTRY:   The LESSOR or its authorized agent shall after giving due notice to the LESSEE shall have the right to enter the premises in the presence of the LESSEE or its representative at any reasonable hour to examine the same or make repairs therein or for the operation and maintenance of the building or to exhibit the leased premises to prospective LESSEE, or for any other lawful purposes which it may deem necessary.

10. EXPIRATION OF LEASE:   At the expiration of the term of this lease or cancellation thereof, as herein provided, the LESSEE will promptly deliver to the LESSOR the leased premises with all corresponding keys and in as good and tenable condition as the same is now, ordinary wear and tear expected devoid of all occupants, movable furniture, articles and effects of any kind. Non-compliance with the terms of this clause by the LESSEE will give the LESSOR the right, at the latter's option, to refuse to accept the delivery of the premises and compel the LESSEE to pay rent therefrom at the same rate plus Twenty Five (25) % thereof as penalty until the LESSEE shall have complied with the terms hereof.  The same penalty shall be imposed in case the LESSEE fails to leave the premises after the expiration of this Contract of Lease or termination for any reason whatsoever.

11. JUDICIAL RELIEF:   Should any one of the parties herein be compelled to seek judicial relief against the other, the losing party shall pay an amount of One Hundred (100) % of the amount clamed in the complaint as attorney's fees which shall in no case be less than P50,000.00 pesos in addition to other cost and damages which the said party may be entitled to under the law.

 

12. This CONTRACT OF LEASE shall be valid and binding between the parties, their successors-in-interest and assigns.

 

IN WITNESS WHEREOF,  parties herein affixed their signatures on the date and place above written.

 

 

 

(Name of Lessor)                               (Name of Lessee)

LESSOR                                                LESSEE

 

Signed in the presence of:

 

 

_____________________________                  ______________________________

 

ACKNOWLEDGEMENT

 

Republic of the Philippines)

_________________________) S.S

 

BEFORE ME, personally appeared:

 

   Name                                 CTC Number             Date/Place Issued

 

(Name of Lessor)                     10000000           February 24, 20__ / Cavite City

(Name of Lessee)                     10000000           January 07, 20__ / Makati

 

Known to me and to me known to be the same persons who executed the foregoing instrument and acknowledged to me that the same is their free and voluntary act and deed.

 

This instrument consisting of ____ page/s, including the page on which this acknowledgement is written, has been signed on each and every page thereof by the concerned parties and their witnesses, and and sealed with my notarial seal.

 

WITNESS MY HAND AND SEAL, on the date and place first above written.

                                                                    

                                                                                                                                                         

Notary Public

 

Doc. No.______;

Page No. ______;

Book No.______;

Series of 20___.

Philippine Legal Forms:Chattel Mortgage

Chattel Mortgage refers to a contract by virtue, which involves recording the personal property in the Chattel Mortgage Register as security for the performance of an obligation. The Chattel Mortgage can either be a formal contract or an accessory contract. It is required if the debtor has to retain the property. 

Act No. 1508

Sec. 3. Chattel mortgage defined. — A chattel mortgage is a conditional sale of personal property as security for the payment of a debt, or the performance of some other obligation specified therein, the condition being that the sale shall be void upon the seller paying to the purchaser a sum of money or doing some other act named. If the condition is performed according to its terms the mortgage and sale immediately become void, and the mortgagee is thereby divested of his title.

Sec. 4. Validity. — A chattel mortgage shall not be valid against any person except the mortgagor, his executors or administrators, unless the possession of the property is delivered to and retained by the mortgagee or unless the mortgage is recorded in the office of the register of deeds of the province in which the mortgagor resides at the time of making the same, or, if he resides without the Philippine Islands, in the province in which the property is situated: Provided, however, That if the property is situated in a different province from that in which the mortgagor resides, the mortgage shall be recorded in the office of the register of deeds of both the province in which the mortgagor resides and that in which the property is situated, and for the purposes of this Act the city of Manila shall be deemed to be a province.

Sec. 5. Form. — A chattel mortgage shall be deemed to be sufficient when made substantially in accordance with the following form, and shall be signed by the person or persons executing the same, in the presence of two witnesses, who shall sign the mortgage as witnesses to the execution thereof, and each mortgagor and mortgagee, or, in the absence of the mortgagee, his agent or attorney, shall make and subscribe an affidavit in substance as hereinafter set forth, which affidavit, signed by the parties to the mortgage as above stated, and the certificate of the oath signed by the authority administering the same, shall be appended to such mortgage and recorded therewith.

 

CHATTEL MORTGAGE

 

 

"This mortgage made this ____ day of ______19____ by _______________, a resident of the municipality of ______________, Province of ____________, Philippine Islands mortgagor, to ____________, a resident of the municipality of ___________, Province of ______________, Philippine Islands, mortgagee, witnesseth:

 

"That the said mortgagor hereby conveys and mortgages to the said mortgagee all of the following-described personal property situated in the municipality of ______________, Province of ____________ and now in the possession of said mortgagor, to wit:

 

(Here insert specific description of the property mortgaged.)

 

"This mortgage is given as security for the payment to the said ______, mortgagee, of promissory notes for the sum of ____________ pesos, with (or without, as the case may be) interest thereon at the rate of ___________ per centum per annum, according to the terms of __________, certain promissory notes, dated _________, and in the words and figures following (here insert copy of the note or notes secured).

 

"(If the mortgage is given for the performance of some other obligation aside from the payment of promissory notes, describe correctly but concisely the obligation to be performed.)

 

"The conditions of this obligation are such that if the mortgagor, his heirs, executors, or administrators shall well and truly perform the full obligation (or obligations) above stated according to the terms thereof, then this obligation shall be null and void.

 

"Executed at the municipality of _________, in the Province of ________, this _____ day of 19_____

 

____________________

(Signature of mortgagor.)

 

"In the presence of

 

"_________________

"_________________

(Two witnesses sign here.)

 

FORM OF OATH.

"We severally swear that the foregoing mortgage is made for the purpose of securing the obligation specified in the conditions thereof, and for no other purpose, and that the same is a just and valid obligation, and one not entered into for the purpose of fraud."

 

FORM OF CERTIFICATE OF OATH.

"At ___________, in the Province of _________, personally appeared ____________, the parties who signed the foregoing affidavit and made oath to the truth thereof before me.

 

"_____________________________"

(Notary public, justice of the peace, 1 or other officer, as the case may be.)

Two Women Nabbed For Extorting Money From A Food Manufacturing Company

The social media has been an avenue for various complaints because it reaches the wider public. For sure, you have already seen people sharing posts about a missing person, crime suspect, bad customer service and whatnot. While social media is a huge help to those who have genuine concerns, people who want to simply take advantage of the situation also use it as a way to extort money. 

In Mandaue City, Cebu two women, Aldara Pinero and Sistene Pinero were nabbed for extorting P735,000 from Sunpride Foods Inc. One of the suspects uploaded a video in Facebook claiming that they bought a can of rotten corned beef. The viral video showed that the corned beef contained worms. It would have been believable, had the authorities failed to investigate. 

The video was viewed 735,000 times equivalent to the money they demanded. Henry Dy, general operations of Sunpride Foods Inc, advised the two women to send a message to their customer service number so their complaints can be addressed properly. 

However, they wanted a meeting and payment in exchange for taking down the video. After thorough investigation, it has been found that their claims were not true. Dy said their canned meat products undergo a sterilization process and corned beef is heated at up to 270 degrees Fahrenheit to ensure bacteria are destroyed. He also added that if the meat has worms, the can would have emitted foul odor. The two women have violated Republic Act No. 10175 or the Cyber Crime Law. 

Cybercrimes

Section 4. Cybercrime Offenses. – The following acts constitute the offense of core cybercrime punishable under the Act:

A. Offenses against the confidentiality, integrity and availability of computer data and systems shall be punished with imprisonment of prision mayor or a fine of at least Two Hundred Thousand Pesos (P200,000.00) up to a maximum amount commensurate to the damage incurred, or both, except with respect to number 5 herein:

Illegal Access – The access to the whole or any part of a computer system without right.

Illegal Interception – The interception made by technical means and without right, of any non-public transmission of computer data to, from, or within a computer system, including electromagnetic emissions from a computer system carrying such computer data: Provided, however, That it shall not be unlawful for an officer, employee, or agent of a service provider, whose facilities are used in the transmission of communications, to intercept, disclose or use that communication in the normal course of employment, while engaged in any activity that is necessary to the rendition of service or to the protection of the rights or property of the service provider, except that the latter shall not utilize service observing or random monitoring other than for purposes of mechanical or service control quality checks.

Data Interference – The intentional or reckless alteration, damaging, deletion or deterioration of computer data, electronic document or electronic data message, without right, including the introduction or transmission of viruses.

System Interference – The intentional alteration, or reckless hindering or interference with the functioning of a computer or computer network by inputting, transmitting, damaging, deleting, deteriorating, altering or suppressing computer data or program, electronic document or electronic data message, without right or authority, including the introduction or transmission of viruses.

Misuse of Devices, which shall be punished with imprisonment of prision mayor, or a fine of not more than Five Hundred Thousand Pesos (P500,000.00), or both, is committed through any of the following acts:

a. The use, production, sale, procurement, importation, distribution or otherwise making available, intentionally and without right, of any of the following:

i. A device, including a computer program, designed or adapted primarily for the purpose of committing any of the offenses under this rules; or

ii. A computer password, access code, or similar data by which the whole or any part of a computer system is capable of being accessed with the intent that it be used for the purpose of committing any of the offenses under this rules.

b. The possession of an item referred to in subparagraphs 5(a)(i) or (ii) above, with the intent to use said devices for the purpose of committing any of the offenses under this section.

Provided, That no criminal liability shall attach when the use, production, sale, procurement, importation, distribution, otherwise making available, or possession of computer devices or data referred to in this section is for the authorized testing of a computer system.

If any of the punishable acts enumerated in Section 4(A) is committed against critical infrastructure, the penalty of reclusion temporal, or a fine of at least Five Hundred Thousand Pesos (P500,000.00) up to maximum amount commensurate to the damage incurred, or both shall be imposed.

B. Computer-related Offenses, which shall be punished with imprisonment of prision mayor, or a fine of at least Two Hundred Thousand Pesos (P200,000.00) up to a maximum amount commensurate to the damage incurred, or both, are as follows:

1. Computer-related Forgery –

a. The input, alteration or deletion of any computer data without right, resulting in inauthentic data, with the intent that it be considered or acted upon for legal purposes as if it were authentic, regardless whether or not the data is directly readable and intelligible; or

b. The act of knowingly using computer data, which is the product of computer-related forgery as defined herein, for the purpose of perpetuating a fraudulent or dishonest design.

2. Computer-related Fraud – The unauthorized “Input, alteration or deletion of computer data or program, or interference in the functioning of a computer system, causing damage thereby with fraudulent intent: Provided, That if no damage has yet been caused, the penalty imposable shall be one (1) degree lower.

3. Computer-related Identity Theft – The intentional acquisition, use, misuse, transfer, possession, alteration or deletion of identifying information belonging to another, whether natural or juridical, without right: Provided, That if no damage has yet been caused, the penalty imposable shall be one (1) degree lower.

C. Content-related Offenses:

1. Any person found guilty of Child Pornography shall be punished in accordance with the penalties set forth in Republic Act No. 9775 or the “Anti-Child Pornography Act of 2009”: Provided, That the penalty to be imposed shall be one (1) degree higher than that provided for in Republic Act No. 9775 if committed through a computer system.



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