THIRTEENTH CONGRESS OF THE REPUBLIC) 
'as Ai;' 10 ph:ii'i 
OF THE PHILIPPINES 
1 
tv-, 
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First Regular Session 
) 
Introduced by Senator Miriam Defensor Santiago 
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EXPLANATORY NOTE 
The Constitution, Article 16, Section 9, provides: 
The State shall protect consumers from trade malpractices and from 
substandard or hazardous products. 
Telemarketing is a recent innovation. Telemarketing means a plan, program, 
which is conducted to induce purchase of goods or services by significant use of 
telephones. It differs from other sales activities in that in can be carried out 
direct contact. 
Because of its unique character, many consumers are victimized by several forms of 
Thus, Congress should enact legislation that will offer 
telemarketing deception and abuse. 
consumers necessary protection from telemarketing deception (including fraud) and abuse. 
The purpose of this bill is to strengthen the authority of the Department of Trade and 
Industry regarding fraud committed in connection with sales made with a telephone. 


THIRTEENTH CONGRESS OF THE REPIJBLIC) 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
S E N A  
k\.i:t6”,E\i/ED S‘! :.- 
I- 
S.B. No. 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
TO STRENGTHEN THE AUTHORITY OF THE DEPARTMENT OF TRADE AND 
INDUSTRY REGARDING FRAUD COMMITTED IN CONNECTION WITH SALES MADE 
WITH A TELEPHONE 
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Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Shovt Title. - This Act shall be lcnown as the “Consumer Protection 
Telemarlceting Act.” 
SECTION 2. Definition. - For purposes of this Act, the term “telemarketin ” means a 
plan, program, or campaign which is conducted to induce purchases of goods or s‘ervices by 
significant use of one (1) or more telephones. The term does not include the solicitation of sales 
through the mailing of a catalog which - 
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(1) contains a written description or illustration of the goods or services offered 
for sale: 
(2) includes the business address of the seller; 
(3) includes multiple pages of written material or illustrations; and 
(4) has been issued not less frequently than once a year, where the person making 
the solicitation does not solicit customers by telephone but only receives calls initiated by 
customers in response to the catalog and during those calls takes orders only without 
further solicitation. 
SECTION 3. Telemarketing Rule. ’- 
(1) IN GENERAL - 


(A)The Department of Trade and Industry shall prescribe rules prohibiting 
deceptive (including fraudulent) marketing activities and other abusive 
telemarketing activities. 
(B) The Department shall include in such rules respecting deceptive 
telemarlteting activities - 
(i) a definition of deceptive telemarketing activities; and 
(ii) criteria that are symptomatic of deceptive telemarketing as 
distinguished from ordinary telemarketing business practices. 
(C) The Department shall include in such rules respecting other abusive 
telemarketing activities a requirement that telemarketers may not undertake a 
pattern of unsolicited telephone calls which the reasonable consumer would 
consider coercive or abusive of such consumer’s right to privacy. In prescribing 
the rules described in this paragraph, the Department shall consider - 
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(i) including a requirement that goods or services offered by 
telemarketing be shipped or provided within a specified period and that if 
the goods or services are not shipped or provided within suc period, a 
refknd be required, and 
(ii) including, where practicable, authority for a person ho orders 
a good or service through telemarketing to cancel the order within a 
specified period. 
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(2) RULE-MAKING - The Department shall prescribe the rules under subsection 
(1) within two hundred seventy (270) days after the date of enactment of this Act. 
SECTION 4. Action by Private Persons. - Any person adversely affected by any pattern 
or practice of telemarketing which violates any rule of the Department under section (3) or an 
unauthorized person acting on such person’s behalf may, within three (3) years after discovery of 
the violation, bring a civil action against a person who has engaged or is engaging in such pattern 
or practice of telemarketing. Such an action may be brought to enjoin such telemarketing, to 


enforce compliance with any rule of the Department under Section 3, to obtain dam 
obtain such further and other relief as the court may deem appropriate. 
SECTION 5. Sepambility Clause. - If any provision or part thereof, is held invalid or 
unconstitutional, the remainder of the law of the provision not otherwise affected shall remain 
valid and subsisting. 
SECTION 6. Repealing Clause. - Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule or regulation contrary to, or inconsistent 
with, the provisions of this Act is hereby repealed, modified, or amended accordingly. 
SECTION 7. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
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Approved, 
12115 JPS