. 
.
,
>
_
,
.
I
 
. ,  i 
THIRTEENTH C0NGF:ESS OF THE ) 
REPUBLIC QF THE 6'?-34LIPPINEES ) 
THIRD REGULAR SCSSIQN 
1 
, .  
- 
, 
. , .  
, 
..~). 
S.B. NO. 
Introduced by Senator ALF 
Many times has this nation been rocked by large-scale 
fraud of endemic proportions, affecting the poor sectors of 
society. 
The number of victims which runs to hundreds and 
even thousands, has obviously been the result of well- 
advertised and effective sales propaganda and other 
promotional shows circulated in newspapers, aired in radio 
stations and televisions and other media for long periods of 
time. 
Meantime, unaware that the promoted products, goods 
or services are not existent or are incapable of being 
performed but are in fact doomed to failure, the hapless 
victims continue to shell out whatever small amounts they 
save hoping that they will in the future achieve or acquire 
the much propagated ventures or plans. 
Enough is enough of the so-called flopping or failed 
pre-need plans, unfinished subdivision or condominiums, 
pyramiding schemes and similar artifices and deceptive 


schemes that k:ad victimized thousands and thousands of 
our countrymer.:. 
It is path;.:tic to note that until now, victims of these 
frauds had fou, Id themselves helpless in bailing themselves 
out from the financial woes wrought by those who have 
enriched theniselves. 
Hence, the bill’s purpose is to stop the propagation of 
false or fraudulent advertising of products, goods and 
services which can not be delivered or performed and save 
our poor people from being victimized by the professional 
charlatans whose obvious motive is to milk their victims. 
Senator 


THIRTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
THIRD REGULAR SESSIBN 
1 
Introduced 
s. LI 
PENALIZI 
E 
1 
Be it enacted by the Senate and the House of 
2 
Representatives 
of 
the 
Philippines 
in 
Congress 
3 
assembled: 
4 
I. False or Fraudulent Advertising, 
5 
Prohibited. - It shall be unlawful for any person, firm or 
6 
corporation to advertise or promote his or its products, 
7 
goods and services, underwrite any obligation, such as, 
8 
pre-need educational, medical or other related services, 
9 
through 
newspapers, 
magazines, 
radio, 
television, 
10 internet or other means accessible to the public view, 
11 such as billboards, flyers, newsletters, leaflets, etc. when 
12 such products, goods, services or pre-need benefits are 
13 inexistent, in whole or in part, or are incapable of being 
14 produced, delivered, performed, paid or discharged, and 
15 which false or fraudulent advertising shall have induced 
16 another to part with his money or valuable consideration 
17 to buy, acquire or avail of such products, goods, services 
18 or pre-need benefits. 


1 
SECTKWJ 2. 
Prima Facie Evidence of False or 
2 Fraudulent Advertising. - The failure or iriability OF such 
3 person, firm or corporation to fully or completely produce, 
4 deliver, perform, pay or discharge the obli at ion, prod ucts, 
5 
goods or services so promoted or advertised, within a 
6 period of ninety (90) days from date af written demand 
7 from the person defrauded shall be prima facie evidence of 
8 a violation of this Act. 
9 
SECTION 3. Liability Under this Act, Distinct from 
10 
other Crimes Committed. - The liability of persons 
11 found violating this Act shall be distinct from and in 
12 addition to the penalties that such person, firm or 
13 corporation shall incur under the Revised Penal Code and 
14 other special laws; 
provided, 
however, 
that the 
15 prosecution for violation of this Act shall proceed 
16 independently and regardless of the status, stage or 
17 result of the prosecution under the Revised Penal Code or 
18 other special laws; provided, further, that no filing fee 
19 shall be imposed for the commencement of the criminal 
20 charge under this Act. 
21 
SECTION 4. Liability, I f  Violator is a Corporation or 
22 Unregistered Entity. - If the violation under this Act is 
23 committed by a corporation, 
partnership or other 
24 unregistered entity, the directors, president, treasurer, 
25 general manager or one performing similar functions and 
26 other corporate officers or persons responsible for such 
27 false or fraudulent advertisement shall be personally 
28 liable for such violation. 


i 
SECT10 
5. Multiple Liability. - Any person found 
2 violating this Act shall be charged arid convicted with as 
3 many counts of such violations as there are victims who 
4 have been defrauded by reason of such false or fraudulent 
advertising. 
5 
SECT10 
. Pendty. - Any person found liable for 
6 violating this Act shall be sentenced to an imprisonment 
7 of not less than one (1) year but not exceeding six (6) 
8 years or a fine of not less than twice the value of the 
9 amount 
defrauded; provided, that in case the person 
1 Q  convicted fails or refuses to pay the fine, he shall suffer 
11 subsidiary imprisonment at the rate of P2QQ per day but 
12 not exceeding six (6) years. 
13 
SECTION 7 .  Effectivity. - This Act shall take effect 
14 fifteen (15) days after publication in a newspaper of 
15 general circulation. 
Approved.