, , 
• SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
'semlll' 
d}ffl;t. {If Hl{!,j,rHl'tnr~ 
First Regular Session 
) 
'13 
SEP 10 
AJO :42 
SENATE 
Senate Bill No. 
1589 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
Advertising wields an immense influence in our contemporary society. Not 
only is it a communication tool which brings buyers and sellers together but also a 
viable mechanism of control. 
Taking into account the power and impact of 
modern-day advertising, there has to be a foolproof mechanism which shall enable 
the State to ensure truth in advertising, uphold the people's right to know and 
protect them from unfounded and fraudulent claims. 
Republic Act 7394 (The Consumer Act of the Philippines) was enacted 
primarily to protect the consumers against false, deceptive and misleading 
advertisements. Unfortunately, the law fails to address the substantiation and 
documentation of advertising' claims. As a result, the consuming public 
continues to fali prey to the empty words and promises of unscrupulous 
advertisers. 
This bill seeks to improve the quality of advertisements by requiring ali 
advertisers to maintain a file containing the evidence of safety, performance, 
effiCiency, quality and comparative price of the advertised product. Such data 
shall, upon demand, be made available to the public except for trade secrets, 
customer lists or other financial matters which may be considered confidential. 
Furthermore, it seeks to increase the imposable administrative fine to deter 
large-scale perpetrators of deceptive and unethical advertising practices. 
In view of the foregoing, the immediate enactment of the bill is earnestly 
urged. 
OY EJERCITO ESTRADA 
Senator 


SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 15 8 9 
) 
) 
) 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
'13 
SEP 10 Am :42 
AMENDING ARTICLES 116 AND 164 OF REPUBLIC ACT NO. 7394 
OTHERWISE KNOWN AS THE CONSUMER ACT OF THE PHILIPPINES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Article 110 of Republic Act No. 7394 is hereby amended to 
read as follows: 
. "Article 
140. 
False, 
Deceptive 
or Misleading 
Advertisement; -"It shall' be unlawful for any person to 
disseminate or to cause the dissemination of any false, 
deceptive or misleading ·advertisement· by Philippine mail or 
in 
commerce 
by 
print, 
radio, 
television, 
outdoor 
advertisement or other medium for the purpose of including 
or which is likely to induce directly or indirectly the purchase 
of consumer products or services. 
"An advertisement shall be false, deceptive or 
misleading if it is not in conformity with the proviSions of this 
Act or it is misleading in a material respect. In determining 
whether any advertisement is false, deceptive or misleading, 
there shall be taken into account, among other things, not 
only representations made or any combination thereof, but 
also the extent to which the advertisement fails to reveal 
material facts with respect to consequences which may 
result from the use or application of consumer products or 
services to which the advertisement relates under the 
conditions prescribed in said advertisement, or under such 
conditions as are customary or usual. 
"ALL ADVERTISERS SHALL BE REQUIRED, ON 
DEMAND 
BY 
THE 
IMPLEMENTING 
AGENCY 
CONCERNED, .. rOSUBMIT WITH RESPECT TO ANY 
ADVERTISEMENT 
SUCH 
TESTS, 
STUDIES, 
RESEARCHES 
OR 
SURVEYS 
INCLUDING 
TESTIMONIALS AND ENDORSEMENTS THEY HAD IN 
THEIR POSSESSION PRIOR TO THE TIME CLAIMS 
MADE AND WHICH PURPORT TO SUBSTANTIATE ANY 
CLAIMS, STATEMENTS OR REPRESENTATIONS MADE 


IN THE ADVERTISEMENT REGARDING THE SAFETY, 
PERFORMANQE, EFFICACY, QUALITY OR COMPETITIVE 
PRICE OF THE PRODUCT ADVERTISED. 
''THE 
CLAIMS, 
STATEMENTS 
OR 
REPRESENTATIONS 
SUBJECT 
TO 
THE 
ABOVE 
REQUIREMENTS SHALL BE IDENTIFIED IN AN ORDER 
TO FILE SPECIAL REPORT WHICH WILL BE ISSUED TO 
ADVERTISERS 
BY 
THE 
IMPLEMENTING 
AGENCY 
ACTING MOTU PROPIO OR AT THE INSTANCE OF AN 
INTERESTED PARTY. ALL IMPLEMENTING AGENCIES 
SHALL 
BE 
AUTHORIZED 
TO 
COMPEL 
THE 
PRODUCTION OF SAID MATERIALS. 
"EXCEPT FOR TRADE SECRETS, CUSTOMER 
LISTS OR OTHER FINANCIAL DATA WHICH MAYBE 
PRIVILEGED, THE INFORMATION OBTAINED SHALL BE 
MADE AVAILABLE TO THE PUBLIC ON THE BASES OF 
THE FOLLOWING CONSIDERATIONS: 
(A) THAT 
PUBLIC 
DISCLOSURE 
CAN 
ASSIST 
CONSUMERS IN MAKING A RATIONAL CHOICE 
AMONG COMPETING CLAIMS; 
(B)THAT 
THE 
PUBLIC'S 
NEED 
FOR 
USEFUL 
INFORMATION IS NOT BEING MET VOLUNTARILY 
BY ADVERTISERS; 
••• J,. 
"_" '!_' 
(C)THAT RELEASE OF 
REPORTS, 
SUMMARIES, 
INDICES OR OTHER PUBLICATION SHALL ALERT 
THE CONSUMERS, BUSINESSMEN AND PUBLIC 
INTEREST GROUPS TO POSSIBLE VIOLATIONS 
OF THE ACT." 
SEC. 2. Article 164 of Republic Act No. 7394 is hereby amended to read as 
follows: 
"Article 164. Sanctions. - After investigation, any of 
the following administrative penalties may be imposed even 
if not prayed for in the complaint: 
"(a) the issuance of a cease and desist order: 
ProVided, however, that such order shall specify the acts that 
respondent shall cease and desist from and shall require him 
to submit a report of compliance therewith a reasonable 
time; 
. 
. . . 
. 
. 
"(b) the acceptance of a voluntary assurance of 
compliance or discontinuance from the respondent which 
may include any or all of the following terms and conditions: 
1) xxx 
2) xxx 
3) xxx 
4) xxx 
5) xxx 


6) THE IMPOSITION OF ADMINISTRATIVE FINES 
IN SUCH AMOUNTS AS MAY BE DEEMED REASONABLE 
BY THE SECRETARY, WHICH SHALL IN NO CASE BE 
LESS THAN TWENTY THOUSAND (20,000.00) PESOS 
BUT NOT MORE THAN FIVE HUNDRED THOUSAND 
(500,000.00) PESOS DEPENDING ON THE GRAVITY OF 
THE OFFENSE AND AN ADDITIONAL FINE OF NOT 
MORE THAN TEN THOUSAND (10,000.00) PESOS FOR 
EACH DAY OF CONTINUING VIOLATION." 
--------
SEC. 3. Effectivity. - This Act shall take effect fifteen (15) days after its 
complete publication in the Official Gazette or in a newspaper of general 
circulation. 
Approved,