HOUSE FR
Reo

SEVENTEENTH CONGRESS OF THE REPUBLIC ) DATE: 24 AUG 2016
OF THE PHILIPPINES )

sive SOW

First Regular Session )
BY:
HOUSE OF REPRESENTATIVE
HB.No._ 3268 REC'STR TION UNIT
BILLS 3 “EX SERVICE

Introduced by Representative Harry L. Roque Jr.

AN ACT
PROHIBITING CELLULAR MOBILE PHONE PROVIDERS FROM CONVEYING
UNSOUGHT SERVICES THAT ARE AUTOMATICALLY AND INVOLUNTARILY
CHARGED AGAINST THE ACCOUNT OF SUBSCRIBERS, IMPOSING PENALTIES ON
UNLAWFUL ACTS OF THE PROVIDERS

EXPLANATORY NOTE
This bill was originally drafted by the interns of the Summer sa Senado 2005 internship
program, namely: Bernice V. Francisco; Andrew L Ruanto; Eugen Aison T. Soriano; and
Reynard Kayne R. Yeasiano, that:
The Constitution, Article 2, Section 24 provides that:
"The State recognizes the vital role of communication and information in
nation-building,
Furthermore, the Constitution, Article 16, Section 9 provides that:

"The State shall protect the consumers from trade malpractices and from
substandard or hazardous products,"

Republic Act No, 7394, also known as the "Consumer Act of the
Philippines,” provides that:

The State shall promote and encourage fair, honest and equitable relations
among parties in consumer transactions and protect the consumer against
deceptive, unfair and unconscionable sales acts or practices, (Article 48) (Italics

supplied,)


The use of cellular mobile phones has influenced the Filipino lifestyle and has become a
necessity even among the youth. For better or worse, keeping in touch with family, friends, and
business colleagues has become more convenient as cellular mobile phone technology improves
and becomes cheaper.

Along with the rapid increase in cellular mobile phone subscribers, however, there are
increasing complaints about certain unwanted services which include ringing tones, polyphonic
tones, video and picture messages, etc. Specifically, prepaid credit has been deducted
involuntarily due to these unsought services that the cellular mobile phone providers extend to
their subscribers. Evidently, these networks force subscribers to enter into excessively one-sided
transactions or contracts of adhesion.

‘The right of subscribers to decide how they may want to spend their credits should be
affirmed; only they can decide how to get value out of their hard-earned money. This bill seeks
to prohibit cellular mobile phone service providers from conveying or transmitting unsought
services that are automatically and involuntarily charged against the account of subscribers by

imposing penalties on unlawful acts of the said providers.'

(Me

HARRY L. ROQUE JR.

' This bill was originally filed during the Fifteenth Congress, First Regular Session, and refiled by Senator
Miriam Defensor Santiago in the Sixteenth Congress, Third Regular Session


SEVENTEENTH CONGRESS OF THE REPUBLIC +)
OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVE
HB No. 3268 2

Introduced by Representative Harry L. Roque Jr.

AN ACT
PROHIBITING CELLULAR MOBILE PHONE PROVIDERS FROM CONVEYING
UNSOUGHT SERVICES THAT ARE AUTOMATICALLY AND INVOLUNTARILY
CHARGED AGAINST THE ACCOUNT OF SUBSCRIBERS, IMPOSING PENALTIES ON
UNLAWFUL ACTS OF THE PROVIDERS
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 "Unsought Cellular Mobile

Phone Services Act.”

SECTION 2.Declaration of Principle. —The State recognizes the vital role of
telecommunications in economic growth and development. Towards this end, the State shall
implement measures to achieve the following objectives:

a) safeguarding against deceptive, unfair and unconscionable trade acts and practices;

b) provision for information and education to facilitate sound choice and the proper

exercise of rights by the consumer;

¢) provision for adequate rights and means of redress; and

SECTION 3. Definition of Terms. For purposes of this Act, the term:

a) "Account" refers to the financial credit of a subscriber,


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b) "Cellular mobile phone” refers to any wireless telephone that communicates with a
local transmitter using a short-wave analog or digital transmission. This definition includes units
that are capable of relaying and receiving visible and/or audible electronic messages;

©) "NTC" refers to the National Telecommunications Commission;

d) "Postpaid Credit” refers to a conventional method of payment for wireless service
where a subscriber pays for a significant portion of services and usage in arrears, subsequent to
consuming the services;

€) "Prepaid Credit" refers to a method of payment for wireless service that allows a
subscriber to prepay for a set amount of airtime in advance of actual usage;

) "Provider" refers to every cellular mobile phone service provider or any profit- oriented
entity or company that provides wireless telecommunications to its subscribers;

g) "Subscriber" refers to a user of wireless service bought from a provider or a person
who avails the cellular mobile phone services offered by a provider, and

h) "Unsought services" refers to the services which include ringing tones, polyphonic
tones, video and picture messages, etc., that a subscriber did not purchase under his postpaid or

prepaid account but is nonetheless sent or transmitted to him without permission

SECTION 4. Unlawful Acts. - It shall be unlawful for any provider to automatically and
involuntarily charge its subscribers for unsought services that in effect:

a) reduce the prepaid credit of a subscriber; or

'b) increase the postpaid credit of a subscriber. The prohibition of this section shall not
apply to unsought yet free-of-charge services used by any provider to induce its subscribers for

purposes of advertisement, campaign, and promotion.


SECTION 5. Information Campaign. - The NTC shall undertake to implement an
education and awareness campaign to inform the public of the provisions of this Act. It shall

regularly publish a list of the offenders found to have violated any provision of this Act

SECTION 6. Penalties for Unlawful Acts. ~
(a) Jn General. - Not later than three (3) months after the date of enactment of this Act,
the NTC, in coordination with the Department of Trade and Industry (DT1), shall issue rules and
regulations that
i) prohibit any automatic and involuntary charge for unsought services;
ii) impose appropriate sanctions such as suspension of the operation and/or
revocation of the permit to operate of the guilty provider;
iii) impose a penalty of not less than Five Hundred Thousand Pesos (P500,000.00)
but not more than One Million Pesos (P1,000,000.00); and
iv) carry out the provisions of this Act.
(b) Determination of Unlawful Acts. - The NTC, in coordination with the DTI, shall
develop a system that will determine whether any cellular mobile phone service provider

commits any unlawful acts provided in Section 4

SECTION 7. Disposition of Penalties. - All penalties under this Act shall be earmarked
solely and used exclusively for the following:

a) the development and maintenance of a long-term strategic national development plan
for telecommunications; and

'b) the provision of adequate and efficient telecommunications facilities in unserved and

underserved areas.


SECTION 8. Separability Clause. - If any provision, or part hereof, is held invalid or
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain

valid and subsisting.

SECTION 9. 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 10. Effectivity Clause. —This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in two (2) newspapers of general circulation.

Approved,