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SEVENTEENTH CONGRESS:
OF THE REPUBLIC OF THE PHILIPPINES
First Regular Section

ey:
HOUSE OF REPRESENTATIVES.

House Bill No. 2872

T
ATION UNIT
NOE X SERVICE

Introduced by Representative Vietor A. Yap

EXPLANATORY NOTE

On 02 June 2009, Senate President Enrile gave a privilege speech decrying the
sudden and unexplained deductions made against his pre-paid load. As a result of the
Senate investigation, it was found that Telephone Companies (Telcos) and so-called
Value Added Service providers were “bilking” ordinary consumers through
unregulated pre-paid load practices. Resultantly, there was a revision of rules and the
issuance of memorandum circular from the National Telecommunications Commission
ordering the Telcos to extend the shelf-life of prepaid load.

NTC Memorandum Circular (MC) 03-07-2009 imposes a minimum validity
period for load credits of prepaid subscribers. Generally prepaid loads of higher value
have longer validity periods. Prepaid load is convenient as it allows subscribers to
spend on credits suited to their needs. The ongoing load validity issue has become
even more relevant today, as prepaid load is no longer used for only calling and
texting, but also for internet browsing and social networking. Removing the validity
period of prepaid load would benefit the millions of network subscribers.

It is the intent of this bill entitled the “Prepaid Load Protection Act of 2016” to
remove the expiration period presently imposed on the validity of prepaid call and text
cards. This will redound to the public weal and provide our people with greater value
for their money.

In view of the foregoing, the immediate passage of this bill is urgently sought.

VICTOR A. YAP
Representative, 2nd District of Tarlac


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SEVENTEENTH CONGRESS. )
OF THE REPUBLIC OF THE PHILIPPI )
First Regular Section )

HOUSE OF REPRESENTATIVES.

2872

House Bill No.

Introduced by Representative Victor A. Yap

AN ACT
PROHIBITING TELECOMMUNICATION COMPANIES FROM IMPOSING AN
EXPIRATION PERIOD ON THE VALIDITY OF PREPAID CALL AND TEXT CARDS
AND THE FORFEITURE OF LOAD CREDITS THEREOF

Be it enacted by the Senate and House of Representatives in Congress assembled:

SECTION 1. Title. — This Act shall be known as the “"Prepaid Load Protection Act of
2016",

SECTION 2. Declaration of Policy. — it is hereby declared the policy of the State to protect
the interest of the consumer, promote his general welfare and to establish standards of conduct for
business and industry. Towards this end, the State shall implement measures to achieve among others,

the protection of consumers against deceptive, unfair and unconscionable sales act and practices.

SECTION 3. Definition of Terms. ~ For the purpose of this Act, the term:

a) Load credits shall refer to the monetary value or the consumable amount loaded to a mobile or
landline phone via prepaid cards or electronic transfers that enable a consumer to use
telecommunication services.

b) Prepaid shall refer to the type of mobile or landline phone account that requires its owners to
purchase load credits before services are used.

©) Prepaid call and text card shall refer to a card with corresponding peso value that has to be

purchased to enable a subscriber to use telecommunication services,

SECTION 4. Prohibited Acts. - The following shall constitute prohibited acts of any

telecommunication company providing prepaid services and are hereby declared to be unlawful:

a) Imposition of an expiration period on the validity of unused prepaid call and text cards;
b) Forfeiture of load credits stored on an active prepaid phone account via prepaid call and text

card or electronic transfer; and

©) Refusal to give a refund to any prepaid subscriber whose load credits were forfeited without

any valid cause.


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SECTION 5. Penal Provision. - Any director, officer, employee or agent of a

telecommunication company providing prepaid services who shall

jolate any of the acts mentioned
under Section 4 hereof, shall, upon conviction, be subject to the penalty of a fine of not less than One
hundred thousand pesos (P100,000.00) but not to exceed One million pesos (P1,000,000.00) or
imprisonment of not less than two (2) years but not more than six (6) years, or both, upon the discretion

of the court.

If the violation was committed by or in the interest of a juridical person duly licensed to engage
in business in the Philippines, the following penalty shall be imposed
a) First offense -a fine of Five hundred thousand pesos (P500,000.00):
b) Second offense - suspension of license to engage in business for a period of thirty (30) days;
and

©) Third offense - immediate revocation of license to engage in business.

SECTION 6. Information Dissemination. - The Philippine Information Agency (PIA) in
coordination with the National Telecommunications Commission (NTC) shall ensure the proper and
adequate information dissemination of the contents and benefits of this Act to the general public

especially to its intended beneficiaries.

SECTION 7. Implement

rules and regulations to implement the provisions of this Act within ninety (90) days after its effectivity.

g Rules and Regulation. - The NTC shall formulate the necessary

The rules and regulations issued pursuant to this Act shall take effect fifteen (15) days after its

publication in a newspaper of general circulation.

SECTION 8. Separability Clause. - If any of the provision of this Act is declared invalid,

the remainder of this Act or any provisions not affected thereby shall remain in force and effect.

SECTION 9. Repealing Clause. - All laws, decrees, ordinances, rules and regulations,
administrative or executive orders, and other presidential issuances inconsistent with this Act, are

hereby repealed, amended or modified accordingly

SECTION 10. Effectivity. - This Act shall take effect fifteen (15) days after its publication in
the Offi

Gazette 01

at least two (2) newspapers of general circulation.

Approved,