Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 7523

Introduced by Representative MICHAEL L. ROMERO

EXPLANATORY NOTE

A Postpaid Subscription typically requires two essential components in order
to make the post-usage framework viable:

1. Credit history/Contractual commitment: This is the basis on which the
service provider is able to trust the customer/subscriber with paying
their bill when it is due and for the former to have a legal recourse in
case of non-payment.

2. Service tenure: All postpaid providers require customers/subscribers to
sign long term (6 to 30 months) contracts committing to use of the
service.

3. Failure to complete the term would make the customer liable for early
termination fees and other processing fees.

The Statement of Account (SOA) itself is an important component of the
services which acts as an envoy of the service provider and serves an
evidence of the service itself.

This House Bill seeks to foster the protection and interests of the consumer,
promote general welfare and to establish fair standards of conduct for all
business and industry.

Towards this end, the State shall implement measures to achieve these noble
objectives.


Thus, the early passage of this bill is earnestly requested.

MIC} . ROMERO Ph.D.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

523

th
HOUSE BILL NO. -

Introduced by Representative MICHAEL L. ROMERO

AN ACT

PROHIBITING ALL TELECOMMUNICATIONS COMPANY (SERVICE
PROVIDER) TO CHARGE AND COLLECT PRE-TERMINATION FEES
AND OTHER ADMINISTRATIVE-PROCESSING FEES TO
SUBSCRIBERS WHOSE POSTPAID SUBSCRIPTION WERE PRE-
TERMINATED DUE TO ACTS OF TAMPERING, SABOTAGE AND
ALL OTHER FRAUDULENT SCHEMES, TO FOSTER CONSUMER
PROTECTION UNDER THE DURATION OF ITS SERVICE
CONTRACT, PROVIDING PENALTIES AND SANCTIONS, AND FOR
OTHER PURPOSES

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

SECTION 1. DECLARATION OF POLICY - it is hereby declared a
policy of the state to:

a. Promote and rationalize the interests of the consumers;

b. Foster the general welfare and create justifiable standards of
protocol for all business and industries;

€. Protect against all forms of deception, unfair and unethical
practices and schemes;

d. Facilitate the proper implementation of the rights of the consumer;

and


e. Hasten the imposition of all existing policies and guidelines of the
RA7394 (Consumer act of the Philippines).

SECTION 2. PROHIBITING THE COLLECTION OF PRE-
TERMINATION CHARGES AND OTHER ADMINISTRATIVE FEES:

a. All telecommunications company / service provider shall be
prohibited from charging and collecting pre-termination fees and
other administrative-processing fees to all subscribers whose
postpaid subscription were pre-terminated due to acts of
tampering, sabotage and all other fraudulent schemes;

b. This prohibition shall apply to all postpaid subscriptions under a
service contract, regardless of the duration of its contract;

c. This prohibition shall apply regardless of the tenure of the contract
consummated by the subscriber; and

d. Termination shall be executed and effective immediately; upon the
justification and acknowledgement of the tampering, sabotage

and all other fraudulent schemes.

SECTION 3. PENALTIES AND SANCTIONS:
For every violation of this act; or for very failure to comply with;

The Telecommunications company/Service provider shall pay a fine of not
less than Two hundred thousand pesos (200,000.00) for the first offense; a
fine of not less than Five hundred thousand pesos (500,000.00) for the
second offense.

In case of subsequent offenses;

The penalty shall be a fine of not less than One million pesos (P1,000,000.00),

and revocation of the franchise to operate.


SECTION 4. TRANSITORY PROVISION - Existing industries, businesses
and offices affected by the implementation of this Act shall be given
six (6) months transitory period from the effectivity of the IRR or such
other period as may be determined, to comply with the requirements
of this Act.

SECTION 5. IMPLEMENTING RULES AND REGULATIONS - The
departments and agencies charged, to be led by the Bureau of
Communication Services (BCS) of the PCOO, Department of Trade and
Industry (DTI), Department of Information and Communications
Technology (DICT) and the National Telecommunication Commission
(NTC) with carrying out the provisions of this Act, shall within sixty (60)
days after the effectivity of this Act, formulate the necessary rules and
regulations for its effective implementation.

SECTION 6. REPEALING CLAUSE - All laws, decrees, executive
orders, rules and regulations, or parts thereof inconsistent with the

provisions of this Act are hereby repealed or modified accordingly.

SECTION 7. SEPARABILITY CLAUSE - If, for any reason, any section
or provision of this Act is held unconstitutional or invalid, the other

sections or provisions hereof shall not be affected thereby.

SECTION 8. EFFECTIVITY CLAUSE - This Act shall take effect after
fifteen (15) days from its publication in the Official Gazette or in at least
two (2) national newspapers of general circulation whichever comes
earlier.

Approved,