REPRES,

3 S
Cea!

fy” E-Filed
iS RECEIVED zl
= 7)

DATE February 2, 2022
* TIME 3:20pm

S py fei fy
Ke, yy,
Wo inperZ

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

EIGHTEENTH CONGRESS
Third Regular Session

HOUSE BILL NO. 10733

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT
PROVIDING FOR AN OPT-IN MECHANISM FOR TELEPHONE AND MOBILE
SUBSCRIBERS, PROTECTING SUCH SUBSCRIBERS FROM ELECTRONIC
THREATS THROUGH THE MISUSE OF DIGITAL TECHNOLOGY, AND PROVIDING
PENALTIES FOR VIOLATIONS THEREOF

The increasing dependence of people on the Internet because of the constraints brought
by COVID-19 is also seeing a rise in phishing attacks in several platforms such as short
message services, e-mails, and calls.

This bill proposes that all subscribers of telecommunications companies, as a default,
are automatically opted out of receiving unsolicited calls or texts as defined under the Act.
Under its prohibited acts, there shall be a prima facie presumption of a violation of this
Act if the subscriber opted out of receiving any calls or text messages, or when the
subscriber has declined to further give consent to the continuation of the calll or text.

This measure likewise ensures the vigilance by concerned agencies such as the
National Privacy Commission, the National Telecommunications Commission, and the
National Bureau of Investigation to safeguard the data privacy of citizens.

In view of the foregoing, the immediate passage of this bill is earnestly sought.

ae

LUIS RAY! “Lu  F. VILLAFUERTE, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

EIGHTEENTH CONGRESS
Third Regular Session

HOUSE BILL NO. 10733

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT
PROVIDING FOR AN OPT-IN MECHANISM FOR TELEPHONE AND MOBILE
SUBSCRIBERS, PROTECTING SUCH SUBSCRIBERS FROM ELECTRONIC
THREATS THROUGH THE MISUSE OF DIGITAL TECHNOLOGY, AND PROVIDING
PENALTIES FOR VIOLATIONS THEREOF

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

CHAPTER |
TITLE AND DECLARATION OF POLICY

SECTION 1. Short Title. — This Act shall be known as the “Anti-Spam Act.”
SECTION 2. Declaration of Policy. It is hereby declared the policy of the State to:
(a) Protect the fundamental right to privacy of communication while ensuring free flow
of information to promote innovation and growth, guaranteed under the 1987
Constitution of the Republic of the Philippines as well as by Republic Act No.
10173, otherwise known as the “Data Privacy Act of 2012”;
(b) Protect the data privacy of telephone and mobile phone service subscribers;

(c) Provide a standard of conduct for businesses and industries in sending calls and
text messages to subscribers; and

(d) Set as default the opt-in mechanism and provide subscribers the opportunity to
give prior consent before receiving calls and texts inducing the purchase of goods
or services and other forms of solicitation.

CHAPTER II
DEFINITION OF TERMS


SECTION 3. Definition of Terms. — As used in this Act:

(a) Caller or sender refers to any natural person, or in the case of a juridical person,
an employee or agent thereof, who initiates a call or a text message for the
purpose of making a call or text message, whether outbound or unsolicited;

(b) Consent refers to a written contract signed by both the subscriber and the entity
or its authorized representative, indicating that the subscriber opted to receive
such calls or text messages;

(c) Outbound call or text refers to a telephone call or text message initiated by any
caller or sender;

(4) Prize refers to anything offered, or purportedly offered, and given, or purportedly
given, to a subscriber user by chance;

(e) Subscriber/s refer to client/s of telecommunications companies, whether under a
pre-paid or post-paid plan;

(f) Text refers to any message sent via short message service (SMS);

(g) Upseliing refers to soliciting the purchase of goods or services following an initial
transaction during a single telephone call or text message;

(h) Unsolicited call or text or Spam refers to a call or a text message that may be
any one of the following:

(1) Not initiated by the recipient of the call or message containing commercial
promotions or advertisements and did not opt-in to receive the same;

(2) Causes an installation of programs on the subscriber's device without consent;

(3) Contains false or misleading electronic representations redirecting to websites,
chat platforms, etc. and

(4) Triggers the collection of personal information by accessing an electronic
device illegally.

CHAPTER Ill
SUBSCRIBER'S RIGHTS AND
DUTIES AND RESPONSIBILITIES OF A CALLER OR SENDER

SECTION 4. Automatic Opt-Out and Subscriber's Prior Consent. — As a default, all
subscribers are automatically opted out of receiving unsolicited calls or texts as defined
under this Act. Commercial or promotional advertisements may only be sent to a


subscriber who has given prior consent or has specifically opted-in to receive said
messages without additional cost; Provided, That, a subscriber who has given prior
consent or opted in may choose to opt-out any time, likewise without additional cost.

SECTION 5. Requirement for a Caller or Sender. — No person shall make an
unsolicited call or text message unless such person discloses the full name of the caller
or sender, the company, or organization for whose benefit the call or text message is
being made, and the telephone number of a fixed line where such identity can be
established and verified

SECTION 6. Opt-out Mechanism. — All entities shall provide a mechanism for
subscribers to opt-out any time from receiving calls or messages at no cost to the
subscriber. The opt-out mechanism must enable the subscriber or recipient to indicate
the decision not to receive any commercial or promotional advertisement from the entity.

SECTION 7. Filing of Complaint. — Complainants may initially file their complaints with
the entity concerned, which shall act on all complaints received within fifteen (15) days
from receipt.

Complainants who are not satisfied with the action of the entity may bring the matter to
the National Telecommunications Commission.

CHAPTER V
PROHIBITED ACTS, FINES, AND PENALTIES

SECTION 8. Prohibited Acts. — No person, whether natural or juridical, shall make an
unsolicited call or text message, as defined under this Act, to any telephone or mobile
number.

There shall be a prima facie presumption of a violation of this Act if the subscriber opted
out of receiving any calls or text messages, or when the subscriber has declined to
further give consent to the continuation of the call or text, or when the unsolicited call or
text falls within the definition under Sections 3(h)(2), 3(h)(3), and 3(h)(4) of this Act.

The use of an automatic dialer or any electronic device that automatically or randomly
contacts telephone numbers is prohibited.

Any violation of this section shall constitute the crime of unauthorized processing as
defined and penalized under Section 25(a) and 25(b) of the Data Privacy Act of 2012,
without prejudice to a further fine that may be imposed by the Privacy Commission as
provided for in this Act.

SECTION 9. Liability of Caller or Sender. — A caller or sender who commits any
violation under this Act shall be held solely liable. If the caller or sender acted for the
benefit of another person, natural or juridical, and with authority from the latter, they shall
be both held separately liable for the violation. However, if the caller or sender acted for


the benefit of another person, natural or juridical, without authority from the latter, the
former shall be held solely liable.

Any caller or sender who calls or sends a text message to a subscriber in violation of the
provisions of this Act shall be fined for each call or text.

SECTION 10. Third-party Access. — The entity that shall allow access to numbers of
their subscribers to other persons, whether natural or juridical, without the latter's
consent shall be held liable under this Act, without prejudice to liability under the Data
Privacy Act. For the avoidance of doubt, blanket consent shall be prohibited,

SECTION 11. Exceptions. - This Act shall not apply to a caller or sender under the
following circumstances:

(a) In representation of a public agency who is not promoting any of its programs for a
commercial purpose;

(b) Action is undertaken in a personal capacity;

(c) Action is prompted by a necessity to respond to an emergency that threatens life,
health, or safety of any individual;

(d) When the sole purpose of the calll or text is to:

(1) Facilitate, complete, or confirm a transaction that the recipient of the message
has previously agreed to enter with the sender;

(2) Within the specified warranty period, provide warranty information, product
recall information, or safety or security information with respect to a product or
service purchased or used by the recipient of the message;

(3) Deliver goods or services, including product updates or upgrades, that the
recipient of the message is entitled to receive under the terms of the transaction
that the recipient previously agreed to enter with the sender;

(e) When with reference to an ongoing purchase or use by the recipient of goods or
services offered by the sender, the sole purpose of the call or text is to:

(1) Notify a change in its terms or features;
(2) Notify a change in the standing or status of the recipient of the message; or
(8) Provide, at regular periodic intervals, account balance information or other

type of account statement with respect to a subscription, membership, account,
loan, or comparable ongoing commercial relationship;


(f) When its sole purpose is to conduct general market research through surveys,
provided that, with respect to consumer goods and services, no reference shall be
made to any specific brand and in no case shall include any offer for sale of goods
and services;

(g) When sent to an organization other than an individual acting in a personal
capacity, for whatever purpose of the receiving organization; and

(h) When done by duly recognized charities, religious institutions, or educational
institutions which are not considered telemarketers, non-profit organizations, and
other exempt organizations under appropriate rules and regulations.

SECTION 12. Penalties. - Without prejudice to administrative sanctions that may be
imposed by the Privacy Commission, or to civil or criminal liability, any person found to
be in violation of any provision of this Act or its implementing rules and regulations, shall
be imposed the following penalties:

(a) For a juridical person, a fine of not less than Fifty Thousand Pesos (P50,000.00)
nor more than One Hundred Thousand Pesos (P100,000.00) for each violation;
Provided, That its officers directly responsible for the violation shall suffer the
penalty of fine not less than Fifty Thousand Pesos (P50,000.00) but not more than
One Hundred Thousand Pesos (P100,000.00); or

(b) For a natural person, a fine of not less than Fifty Thousand Pesos (P50,000.00)
but not more than One Hundred Thousand Pesos (P100,000.00).

CHAPTER VI
FINAL PROVISIONS

SECTION 13. Oversight and Review. — Within three (3) months from the effectivity of
this Act, and every six (6) months thereafter, the Privacy Commission, the National
Telecommunications Commission, and the National Bureau of Investigation, in
consultation with relevant stakeholders in the private sector, shall each submit reports to
Congress, containing information on the implementation of the provisions of this Act, as
well as other pertinent information, including but not limited to, investigations initiated on
spam and scam calls or messages and status thereof, and technical and industry efforts
undertaken to combat the proliferation of unsolicited calls or text messages.

SECTION 14. Appropriations. — The Privacy Commission shall immediately include in
its programs the implementation of this Act, the initial funding of which shall be charged
against its current year's appropriations. Thereafter, such sums as maybe necessary for
the continued implementation of this Act shall be included in the Annual General
Appropriations Act.

Proceeds from penalties herein imposed shall accrue to the General Fund.


SECTION 15. Implementing Rules and Regulations. — Within ninety (90) days from
the effectivity of this Act, the Privacy Commission, upon consultation with relevant
stakeholders, shall formulate the rules and regulations for the effective implementation of
this Act.

SECTION 16. Separability Clause. — If, for any reason, any section, clause, or term of
this Act is held to be illegal, invalid, or unconstitutional, such parts not affected by such
declaration shall remain in full force and effect.

SECTION 17. Repealing Clause. ~ All laws, presidential decrees, issuances, executive
orders, letters of instruction, rules and regulations inconsistent with the provisions of this
Act are hereby repealed or modified accordingly.

SECTION 18. Effectivity Clause. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or a newspaper of general circulation.

Approved,