OUSE W REPRESENTATIVES

RECEIVED
pare: _ OSL 2016
a 7
Republic of the Philippines | in 7
HOUSE OF REPRESENTATIVI sa
Quezon City
REGISTRATION UNIT

SEVENTEENTH CONGRESS! BiLLS AND INDEX SERVICE
First Regular Session—§ $<

House ait no. 1100

Introduced by Rep. Winston “Winnie” Castelo

EXPLANATORY NOTE

In light of public advisory issued by the Department of Justice, it now behooves Congress to
impose stronger regulatory sanctions against telecommunication giants whose promises of
Unlimited internet offers are not actually delivered and thus violate existing laws requiring truth in
advertising and consistency in the provision of the service.

What the telecommunication giants that dominate the whole telecommunications service sector
actually do is a ‘deceptive business practice’ which apparently imposes only a fine of at least
P§00.00 but not more than P10,000.00 or imprisonment of at least five months to at most one
year or both.

It shall constitute a faulty argument on the part of the telecommunication companies when in
offering unlimited internet service, they however invoke ‘fair usage policy’ (FUP) which simply
means that the user or the subscriber does not really enjoy true and real unlimited internet
service. This ‘fair usage policy’ on unlimited internet service is deemed inconsistent_with the
provisions of the Consumer Act of the Philippines and thus this misleading trade practice and
advertisements must be addressed through the imposition of highef penalties or fines, hence
the proposed measure.

The immediate passage of this measure will redound to thé true beneft of few milions bt
subscribers using the services of the giant telecommunicatior{ companies, hence its passag¢ is
deemed urgent.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

{
HOUSE BILL NO. i

Introduced by Rep. Winston “Winnie” Castelo

AN ACT
IMPOSING HIGHER FINE OR PENALTY AGAINST TELECOMMUNICATION COMPANIES
INVOLVED IN MISLEADING OR DECEPTIVE TRADE AND/OR BUSINESS PRACTICE AND
ADVERTISEMENTS AND FOR OTHER PURPOSES:

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

SECTION 1. This Act shall be known as the ‘Internet Subscribers Protection Act of
6."

SEC. 2. The fine of at least P50,000.00 to not more than P1,000,000.00 or the penalty
of at least 4 years to not more than 6 years imprisonment shall be imposed upon a
telecommunication company or internet service provider and/or its CEO/president that shall be
found violating the implied provisions under the Consumer Act of the Philippines and the Truth
in Advertising.

SEC. 3. When a telecommunication internet service fails to deliver on its promise for
unlimited interet service by invoking a ‘fair usage policy,’ this being tantamount to an
inconsistency in its offer, promise, and/or advertisement, the subscribers are deemed effectively
short-changed and prevented the full enjoyment of the desired/preferred service they paid for.

SEC. 4. The National Telecommunications Commission shall henceforth issue
appropriate rules, regulations, issuances and guidelines to carry out the intent of this Act.

SEC. 5. This Act shall take effect thirty (30) days upon its publication in the Official
Gazette and in at least three (3) newspapers of general circulation.

Approved,