Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City
EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 5533

Introduced by Hon. John Marvin “Yul Servo” C. Nieto, Hon. Edward Vera Perez
Maceda, Hon. Dale “Along” R. Malapitan, Hon. Eric M. Martinez, and Hon.
Rolando M. Valeriano

EXPLANATORY NOTE

As a manifestation of support to this timely piece of legislation, this representation
respectfully refiles this bill, which has constantly been receiving support from the past
congress.

The prepaid call cards industry in the country has seen a significant growth in
recent years. From being only available in large denominations, prepaid cards and
electronic ioads can now be purchased in smaller values. Despite the various efforts to
ensure that mobile usage is easily accessible in the country, much more needs to be
done.

The proposed measure aims to make the imposition of expiration periods on the
validity of period load and forfeiture of unused credits prohibited acts with corresponding
penaities to ensure that consumers’ money are put to good and maximum use.

In view of the foregoing, the passage of this measure is earnestly sought.
eee TNE AS

Joh ‘in “YAl Servo” C. Nieto
ic M. Martin:

Pharhr


Republic of the Philippines

HOUSE OF REPRESE!

Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. __5593

Introduced by Hon. John Marvin “Yul Servo” C. Nieto, Hon. Edward Vera Perez
Maceda, Hon. Dale “Along” R. Malapitan, Hon. Eric M. Martinez, and Hon.
Rolando M. Valeriano

PROHIBITING TELECO! IMU! IES FROM IMPOSING AN
EXPIRATION PERIO

-APIRATION PERIOD itY OF PREPAID CALL AND TEXT CARDS
AND THE FORFEITURE OF LOAD CREDITS THEREOF

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

SECTION 1. Short Title. This Act shall be known as the “Prepaid Load Protection
Act.”

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.

c) Prepaid Calls hall 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 prepa
call and text card or electronic transfer; and

c) Refusal to give a refund to any prepaid subscriber whose load credits were
forfeited without any valid cause.


SECTION 5. Penal Provision. Any director, officer, employee or agent of a
teiecommunication company providing prepaid services who shall violate 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) 1% Offense — a fine of Five Hundred Thousand Pesos (P500,000.00)

b) 2" Offense - suspension of license to engage in business for a period of thirty
(30)
days; and

Cc) 3" Offense — immediate revocation of license to engage in business.

SECTION 6. Information Dissemination. The Philippine Information Agency
(PIA) in coordination with the National Telecommunication 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. Implementing Rules and Regulations (IRR). The NTC shall
formulate the necessary rules and regulations to implement the provisions of this Act
within ninety (90) days after its effectivity. The rules and reg: nS ed pursuant to
this Act shall take effect fifteen (15) days after its publication in a newspaper of general
circulation.

SECTION 8. Repealing Clause. All laws, rules and regulations or parts thereof
inconsistent with the provisions of this Act are hereby repealed or modify accordingly.

SECTION 9. Separability Clause. If any part, section or provision of this Act
shall be held invalid or unconstitutional, no other part, section or provisions thereof shall
be affected thereby.

SECTION 10. Effectivity. This Act shall take effect fifteen (15) days following the

completion of its publication in the Official Gazette or two (2) newspapers of general
circulation.

Approved,