Republic of the Philippines
Quezon City

!VENTEENTH CONGRESS

First Regular Session

3629

HOUSE BILL NO,

Introduced by Representative Federico S. Sandoval I

EXPLANATORY NOTE

This bill seeks to prohibit the transmission of spam messages or unsolicited commercial or
promotional advertisements through broadcast message service and providing penalties for
violation thereof.

The National Telehealth Center, based in the University of the Philippines, Manila
disclosed that on March 2015, there were already 115 million mobile subscriptions in the
Philippines. This means that in a country of 100 million people, the mobile penetration rate is
a staggering 113%. It is also worth mentioning that since January 2014, there has been a 7%
growth in the number of mobile subscriptions in the country, emphasizing that mobile phone
usage te mains to be the most favoured means of communication among Filipinos

In recent years, the Philippines has been labelled as the “texting capital of the world.”
Although Smart Telecommunications reported a 20% decline in short messaging service
(SMS) volume, user engagement was not actually reduced. Only, Filipino mobile users made
a transition from one form of communication to another, specifically toward internet-based
applications that are available in the virtual market today. This is understandable, since
Filipinos, being highly sociable beings, use their mobile phones to communicate practically
everything and anything to and with their families and friends.

This high level of user engagement in mobile telecommunications in the country today is
seen by many as an opportunity for business growth, with public telecom entities (PTEs) and
content providers using the platform to promote and advertise their goods, services or
investments. The trend is a convenient and efficient tool for the P'TEs and content providers
to maximize their earning potential, However, these messages often come unsolicited,
intrusive and annoying, Worse, prepaid subscribers complain of “disappearing or vanishing
load” after receiving these unsolicited commercial and promotional advertisements, also
known as spam messages.

In 2005, the National Telecommunications Commission (NTC) issued Memorandum
Circular 03-03-2005 which provides rules and regulations on broadcast messaging service.
Although administrative and penal sanctions were imposed, these were not enough to deter



most PTEs and content providers from sending spam messages, which impairs the reliability,
efficiency and optimal use of mobile phone services

Its the belief of this Representation that a law on this matter must be passed in line with
the duty of the State to protect the public welfare. This bill provides measures to effectively
control the delivery of these unsolicited messages, impose sanctions for those who violate,
protect the subscriber’s privacy and identify the National Telecommunications Commission
(NTC) as the authorized lead agency,

In view of the foregoing, approval of this bill is earnestly sought

ERICO S. SANDOVAL IL


Republic of the Philippines
HOUS OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL No,_ 8629

Introduced by Representative Federico S. Sandoval II

AN ACT
PROHIBITING THE TRANSMISSION OF SPAM MESSAGES OR
UNSOLICITED COMMERCIAL AND PROMOTIONAL
ADVERTISEMENTS THROUGH BROADCAST MESSAGING
SERVICE AND PROVIDING PENALTIES FOR VIOLATION
THEREOF

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

“CTION 1. Short Title. — This Act shall be known as the “Anti-Spam Messages
Act.

SEC. 2. Declaration of Policy, ~The State recognizes the vital role of information and
telecommunications in nation-building. Pursuant to this, the State shall protect the rights and
welfare of mobile phone subscribers and the whole telecommunications industry. Towards
this end, the State shall institute measures to promote a safer and more secure environment
for the use of information and communications technologies and to ensure that all mobile
phone subscribers are accorded efficient and reliable telecommunications services

SEC. 3. Definition of Terms, ~ As used in this Act:

4.) Broadcast messaging service refers (0 the system which allows the sending of the
same short messaging service (SMS) or multimedia messaging service (MMS)
message to a large number of mobile phones;

b,) Commercial advertisement refers 10 an advertisement which offers to purchase,
sell, barter or lease any product, goods, service or land, or provide a business,
investment or gaming opportunity;

c.) Content provider refers to an organization that creates and maintains databases
containing information from an information provider;

d.) Multimedia messaging service (MIMS) refers to the service which allows users to
send and receive messages containing images, videos, audio and text;

©.) Opt-in refers to the consent given by the subscriber for inclusion on a specific list

direct marketing through SMS or MMS;



£) Opt-out refers to the subscriber's choice to unsubscribe from future unsolicited
commercial or promotional advertisements and push messages;

g.) Promotional advertisements refers to the advertisements designed to increase
the availability of or promote any product, goods, service, land, business,
investment or gaming opportunity;

h.) Public telecom entity refers (0 any person, firm, partnership or corporation,
government or private, engaged in the provision of telecommunications services
to the public for compensation;

i.) Push messages refers (0 information transmitted to the mobile phone, either
subscribed or unsolicited messages, without a user request and are initiated by
the server of the content provider;

j.) Short messaging service (SMS) refers 10 a service for sending messages (0
mobile phones that use Global System for Mobile Communications in text format,
also known as test messaging; and

k.) Spam message refers 10 any unsolicited and unwanted message sent using
broadcast messaging service aimed as a commercial or promotional
advertisement.

SEC. 4, Prohibition. — It is hereby prohibited for any public telecom entity (PTE) or
content provider operating within the country to send or cause to send to a post-paid or pre-
paid mobile phone any unsolicited and unwanted message using broadcast messaging service
aimed as a commercial or promotional advertisement, also known as spam message, which
includes the following:

a.) A request for consent to send a message for commercial and promotional
advertisements;

b.) Announcement of winning of prizes, raffle draws and request for subscriber action
such as reply through calls or text messages, or requiring other potentially
detrimental actions from subscribers

¢.) Claims or statements in commercial or promotional advertisements that are
untrue, greatly exaggerated, or may not be supported by the advertised product or
service; and

d.) Message that promotes a person as being one who is involved in any of the items
referred to in paragraphs (a), (b) or (c).

SEC. 5. Exemptions, ~The following are exempt from the coverage of this Act:

a.) Messages that facilitate, complete, or confirm a commercial transaction that the

subscriber or recipient previously agreed to enter into with the person or

organization who sent or caused to send the message;

Messages that provide warranty information, product recall information, or safety

or security information about the goods or services used or purchased by the

recipient;

¢.) Messages that inform product updates or upgrades that the recipient is entitled to
receive; and

d.) Messages that provide emergency, distress, public service information, network
advisories and other consumer welfare and protection related advisories.

b.


SEC. 6. Subscriber's Consent. ~ Commercial or promotional advertisements, or push
messages may be sent only to subscribers who have given their prior consent or have
specifically opted-in to receive said messages, without additional cost,

For purposes of this Act, consent means the presence ofa written contract signed by both
the subscriber and the PTE or content provider, as the case may be, indicating that the
subserther opted-in to receive such commercial or promotional advertisements, or push
messages

All commercial or promotional advertisements, or push messages must contain an
accurate description of the message, identity and contact number of the PTE of content
providers who sent or caused to send the message

EC. 7. Opt-Out Mechanism. — PTEs or content providers shall provide a mechanism
for subscribers who have opted-in to opt-out from the broadcast messaging service at
anytime, The opt-out mechanism must enable the subscriber or recipient to indicate, at no
cost, the decision to no longer receive any commercial or promotional advertisement, or push
message from the PTE or content provider

SEC. 8. Subscriber Privacy. — PTEs and content providers are prohibited from retaining
and sharing personal information including names, ages, birthdates, telephone numbers and
other contact information submitted by any subscriber, in connection with or for the purpose
of sending spam messages, without the consent of the subscriber who owns the personal
information,

A subscriber who expressed prior consent pursuant to the preceding paragraph may revoke
such consent at anytime. A PTE or content provider shall comply with the subscriber’s
Tequest or act on the revocation of the consent to disclose personal information and
subscription data within a reasonable period of time, which shall not exceed fifteen (15) days.

SEC, 9. Filing of Complaint. — Complainants may initially file their complaints with the
PTE of content provider, which shall act on all complaints received within fifteen (15) days
from receipt of such complaints

Complaints who are not satisfied with the action of the PTE or content provider may bring
the matter to the National Telecommunications Commission (NTC),

SEC. 10. Authority of National Telecommunications Commission. — ‘The NTC shall,
motu propio, or upon a verified complaint by a subscriber, investigate and impose the
appropriate penalty on the offender for violations of Sections 4, 6, 7 and 8 of this Act.

In violation of Section 4 or 6 of this Act, the offending party shall first be issued an order
to refrain from further sending spam or push messages. Non-compliance with the order to
refrain from further sending spam or push messages shall be a ground for the filing of the
appropriate complaint against the offending party.


SEC. 11. Penalties. — Any person, corporation, partnership, association, agency or other
juridical entity who violates Sections 4, 6, 7 and 8 of this Act and fails to comply with the
directive of the NTC to refrain from further sending spam or push messages shall be imposed
a penalty of not less than Fifty Thousand Pesos (P50,000.00) for each offense committed

If the offender is a corporation, partnership, association, agency or other juridical entity,
the penalty shall be imposed on the officer or officers of the corporation, partnership,
association, agency or other juridical entity who caused the violation

SEC, 12. Implementing Rules and Regulations, — Within sixty (60) days from the
effectivity of this Act, the Secretary of Information and Communications Technology, in
coordination with the Commissioner of the National ‘Telecommunications Commission, shall
promulgate the necessary rules and regulations for the effective implementation of this Act

SEC. 13. Separability Clause. — \f any section or provision of this Act is declared
unconstitutional or invalid, the other sections or provisions which are not affected shall
continue to be in full force and effect.

SEC. 14. Repeating Clause. ~ All laws, decrees, executive orders, proclamations, rules
and regulations and other issuances or part or parts thereof which are inconsistent with the
provisions of this Act are hereby amended or modified accordingly

SEC. 15. Effectivity. — This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.

Approved,