2. What is E-Commerce?
E-Commerce or Electronic Commerce, is trading in
products or services using computer networks, such as the
Internet.
Sample of Electronic Commerce are:
mobile commerce,
electronic funds transfer,
supply chain management,
Internet marketing,
online transaction processing,
electronic data interchange (EDI),
inventory management systems, and automated data
collection systems.
3.
4. E-commerce vs. E-business
E-commerce - any form of business transaction in
which the parties interact electronically rather than by
physical exchanges or direct physical contact.
E-Business – “technology is used to enhance one’s
business”
-The transformation of an organization’s
processes to deliver additional customer value through
the application of technologies, philosophies and
computing paradigm of the new economy.”
5.
6.
7. E-commerce businesses usually employ some or all of
the following practices:
• Provide Etail or virtual storefront on websites with
online catalogs, sometimes gathered into a "virtual
mall"
• Buy or sell on websites or online marketplaces.
• Gather and use demographic data through web
contacts and social media.
• Use electronic data interchange, the business-to-
business exchange of data.
• Reach prospective and established customers by e-
mail or fax
• Use business-to-business buying and selling.
• Provide secure business transactions
8. Advantage
1. Convenience
2. Wide Selection of items
3. Operational Cost Saving
4. 24/7 operation
5. Price comparison
6. Access to Global Market
Disadvantage
1. Limited customer service
2. No instant gratification
3. No ability to touch and see a product
4. Lack of sufficient system security and reliability
5. lack of trust
Advantage and Disadvantage of E-Commerce
9. Different type of e-commerce
Business to Business
(B2B) / Inter organizational
Business to Customer
(B2C) / Intra organizational
Business to Government
(B2G)
Customer to Customer
(C2C) / Retail ecommerce
M-Commerce (Mobile)
10. Business to Business (B2B)
-B2B defines as a ecommerce
between business. About 80% of
e-commerce is this type.
Example: Intel sell processor to Dell
Business to Customer (B2C)
-B2C is a commerce between company and
customer / end user, involves information and
purchasing physical products over electronics
network.
PinoyDelikasi.com, Load.com.ph, RegaloService
.com, Lazada, OkayOkay.com,Lenddo.com.ph,
Shopinas, Island Rose, Heartland
Malls, Chikka.com, Cashsense, Metro Deal
Example: Dell selling me a complete set of
laptop
11. Business to Government (B2G)
-Commerce between company and public sector.
Example: Business pay taxes, file reports, sell good and
services for Government Agencies.
Customer to Customer (C2C)
-Commerce between private individual and customer.
Popular sites in this regard
includes Facebook, Sulit.com.ph, AyosDito.ph, eBay, OL
X, Tipic PC, PinoyExchange, among others.
Example: Josh buying iphone 5 to Gino thru OLX.
Mobile Commerce
- Buying and selling good thru wireless network.
- Example: Mobile ticketing, Mobile Banking and
Information Services
12. Most common type of online business transaction in the
Philippines:
1. Online shopping or online retailing – This is a form of electronic
commerce whereby consumers directly buy goods or services from a seller
over the internet without an intermediary service.
2. Online intermediary service – An intermediary is a third party that
offers intermediation services between two trading parties. The
intermediary acts as a conduit for goods or services offered by a supplier
to a consumer, and receives commission therefor.
3. Online advertisement / classified ads – Online advertising is a form
of promotion that uses the internet to deliver marketing messages to
attract customers.
4. Online auction – These are auctions conducted through the internet via
an online service provider that specifically hosts such auctions. Through
this service, the seller sells the product or service to the person who bids
the highest price.
14. Major Legal and Ethical Issues in
Electronic Commerce
Privacy
Intellectual Property
Free Speech
Taxation
Computer Crimes
Consumer Protection
15. E-Commerce Law of the Philippines. (R.A
8792)
Brief History
Signed into law on June 14, 2000
Approved by former President Joseph Estrada
IRR draft by DTI, DBM and BSP
Based on Senate Bill 1902 and House Bill 9971
Patterned from United Nation Commission on International Trade
Law (UNCITRAL) Model law on electronic commerce
IRR was published July 2000 composed of the following:
A. DTI Secretary (Mar Roxas)
B. DMB Secretary (Benjamin Diokno)
C. Governor of Bangko Sentral (Rafael Buenaventura)
16. the ECA is made up of major five parts.
1. The first part deals with the information and objectives.
2. The second part deals with electronic commerce in
general,
3. the third part focuses on electronic commerce in
specific areas (in this case e-commerce in the carriage
of goods).
4. Fourth parts, e-commerce on government transaction.
5. Last part deals with final provision of the law.
E-Commerce Law of the Philippines. (R.A
8792)
17. Objectives:
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.
(stated at section 3)
E-Commerce Law of the Philippines. (R.A
8792)
18. Application:
apply to any kind of data message and electronic
document used in the context of commercial and
non-commercial activities to include domestic and
international dealings, transactions, arrangements,
agreements, contracts and exchanges and storage
of information.
(stated at Section 4)
E-Commerce Law of the Philippines. (R.A
8792)
19. Features:
A. the Act defines important terms such as computer, electronic data
message, electronic signature, and electronic document. (stated
section 5)
Section 6 of IRR defines the following:
1. “electronic data messages” as referring to information generated,
sent, received or stored by electronic, optical or similar means, but
not limited to, electronic data interchange (EDI), electronic mail,
telegram, telex or telecopy.
20. 2. “ Electronics Document” information or the representation of
information, data, figures, symbols or other modes of written
expression, described or however represented, by which a right is
established or an obligation extinguished, or by which a fact may be
proved and affirmed, which is received, recorded, transmitted,
stored, processed, retrieved or produced electronically.
3. “electronic signature.” refers to .any distinctive mark,
characteristic and/or sound in electronic form, representing the
identity of a person and attached to or logically associated with the
electronic data message or electronic document or any
methodology or procedures employed or adopted by a person and
executed or adopted by such person with the intention of
authenticating or approving an electronic data message or
electronic document.
21. B. it gives legal recognition to electronic data messages,
signatures, and documents; and in so doing, it puts electronic data
messages and digital signatures on the same legal status as paper-
based documents and manually executed signatures.
This means that an electronic document would be sufficient in
compliance with the requirements in some laws that the act,
transaction, event or agreement be in writing for its validity and/or
enforceability.
(section 6-12)
E-Commerce Law of the Philippines. (R.A
8792)
22. Section 10 IRR
Where the law requires a document to be in writing, or obliges the
parties to conform to a writing, or provides consequences in the
event information is not presented or retained in its original form, an
electronic document or electronic data message will be sufficient if
the latter:
(a) maintains its integrity and reliability; and
(b) can be authenticated so as to be usable for subsequent
reference, in that:
(i) It has remained complete and unaltered, apart from the
addition of any endorsement and any authorized change, or any
change which arises in the normal course of communication,
storage and display; and
(ii) It is reliable in the light of the purpose for which it was
generated and in the light of all relevant circumstances.
23. C. Its define actions in connection with a contract of carriage of
goods and transport of document . (Section 25-26)
D. it lays down the State policy to promote the universal use of
electronic transactions in the government and by the general pubic.
(section 27-29)
E. it allows the use of such electronic writings and signatures in both
commercial and non-commercial transactions, thereby giving legal
effect and validity to these electronic transactions.
F. it sets forth the responsibility and liability of service providers.
(section 30)
E-Commerce Law of the Philippines. (R.A
8792)
24. G. the Department of Trade and Industry is made
the lead agency which is given the authority to
direct and supervise the promotion and
development of electronic commerce in the
country.
(Section 29 and Section 2 of IRR)
H. it criminalizes and penalizes hacking and
“electronic” piracy.
(section 33)
E-Commerce Law of the Philippines. (R.A
8792)
25. Penalties:
1. Hacking or cracking – minimum
fine of P100,000 and damage with
imprisonment of 6months to 3
years.
2. Piracy - minimum fine of P100,000
and damage with imprisonment of
6months to 3 years.
3. Other violations of the provisions of
this Act, shall be penalized with a
maximum penalty of one million
pesos (P1,000,000.00) or six (6)
years imprisonment.
E-Commerce Law of the Philippines. (R.A
8792)
26. Issues and Problem:
1. electronic documents face the issue of their admissibility as
evidence.
2. in the field of taxation,
3. there are problems in venue and jurisdiction.
4. together with the technological development come more
advanced and less detectable ways of violating the privacy and
security of others.
5. there are serious issues in intellectual property rights such as,
“Does one’s right to a trade name also include the exclusive right
to use it as a domain name?”
6. there is the problem of cybercrime.
E-Commerce Law
of the Philippines.
(R.A 8792)
27. Other Laws / Dept. memo related to e-commerce
Cybercrime Act of 2012 (RA 10175)
Revenue Memorandum Circular No. 55-2013
(This intends to govern how individuals and businesses should handle their
sales and taxes accordingly.)
DTI Department Administrative Order No. 8 – “Prescribing Guidelines
for the Protection of Personal Data in Information and
Communications System in the Private Sector”
DTI-DOH-DA Joint Department Administrative Order (JDAO) No.
1, entitled Rules and Regulations for Consumer Protection in a
Transaction Covered by the Consumer Act of the Philippines
The JDAO aims to protect consumers doing online transactions, specifically
on the purchase of products and services pursuant to the Consumer Act of
the Philippines.
33. Consumer Spending
According to the Organization for
Economic Cooperation and
Development (OECD), middle class
consumers in the Asia-Pacific region
accounted for 28 percent of the
global middle class in 2009, and are
projected to account for more than
50 percent by 2020. Spending by
these middle class consumers
accounted for 23 percent of total
global spending in 2009, and is
predicted to reach more than 40
percent by 2020. In comparison,
North America and Europe
accounted for 64 percent of the
global middle class and 54 percent
of spending in 2009—these
numbers are projected to fall to 46
and 32 percent, respectively, by
2020.
34.
35. • Next 10 years projection:
1. online retail will gain even more importance. Logistics will
play a key role:
it provides companies important competitive advantages,
such as deliveries within a few hours on the day of ordering.
flexible receiving and return times as well as resilient
logistics.
value-added concepts in emerging countries.
2. Mobile Shopping
3. Rapid use of social media for marketing and promotion
36. FDI Rules and Regulations in E-Commerce
FDI (Foreign Direct Investment) is defined as cross-border investment by
a resident entity in one economy with the objective of obtaining a lasting
interest in an enterprise resident in another economy.
