Section 26Sec./Art. 26

Subsidiary Liability of E-marketplace or Digital Platforms. - The e-marketplace or digital platform that facilitated the internet transaction subject to a civil action or administrative complaint shall be subsidiary liable to the online consumer if any of the following circumstances are present:

(a) The digital platform or e-marketplace failed to exercise ordinary diligence in complying with its obligations under Sections 21 and 22 hereof, resulting in loss or damage to the online consumer; or

(b) If the digital platform or e-marketplace failed, after notice, to act expeditiously in removing or disabling access to goods or services that either infringe on another's intellectual property rights or is subject to a takedown order by an appropriate government agency; or

(c) If the online merchant has no legal presence in the Philippines and the digital platforms or e-marketplace failed to provide the contact details thereof despite notice.

The subsidiary liability of digital platforms or e-marketplace shall be limited only to the extent of damages suffered by the online consumer as a direct result of the transaction, without prejudice to other liabilities that may be incurred under this Act or other laws.

Digital platforms or e-marketplaces shall not be held liable for their reliance in good faith on an online merchant's representations, warrantless, or submitted registration documents regardless if such information or documents are later proved to be inaccurate, false, or untrue: Provided, That the digital platform or e-marketplace must show evidence of good faith and that reasonable effort was exerted to ascertain and maintain the accuracy, authenticity and veracity of the documents or information submitted.