FOURTEENTH CONGRESS OF THE 
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First Regular Session 
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REPUBLIC OF THE PHKIPPINES ) 
S E N A T E  
S. NO 
4 - r .  "135 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
EXPLANATORY NOTE 
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 hture 
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 had victimized thousands and thousands of our countrymen. 
It is pathetic to note that until now, victims of these frauds had found themselves helpless 
in bailing themselves out from the financial woes wought by those who have enriched 
themselves. 
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. 
A ~ T O ~ I O  
TONNY" F. TRILLANES rv 
Senator 
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FOURTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHIILIPPlNES ) 
First Regular Session 
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S E N A T E  
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Introduced by Senator Antonio “Sonny” F. Trillanes IV 
AN ACT 
PENALIZING FALSE OR FRAUDULENT ADVERTISING AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in! 
Congress assembled 
SECTION 1. False or Fraudulent Advertising, Prohibited - It shall be unlawful; 
for any person, firm or corporation to advertise or promote his or its products, goods and, 
services, underwrite any obligation, such as, pre-need educational, medical or other 
related services, through newspapers, magazines, radio, television, internet or other, 
means accessible to the public view, such as billboards, flyers, newsletters, leaflets, etc., 
when such products, goods, services or pre-need benefits are inexistent, in whole or  in^ 
part, or are incapable of being produced, delivered, performed, paid or discharged, and; 
which false or fraudulent advertising shall have induced another to part with his money or; 
valuable consideration to buy, acquire or avail of such products, goods, services or pre- 
need benefits. 
SEC. 2. Prima Facie Evidence of False or Fraudulent Advertising. - The failure 
or inability of such person, firm or corporation to fully or completely produce, deliver, 
perform, pay or discharge the obligation, products, goods or services so promoted or 
advertised, within a period of ninety (90) days from date of written demand from the, 
person defrauded shall be prima facie evidence of a violation of this Act. 
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SEC. 3. Liability Under this Act, Distinctfronz other Crimes Committed - The, 
liability of persons found violating this Act shall be distinct from and in addition to thei 
penalties that such person, firm or corporation shall incur under the Revised Penal Code 
and other special laws; provided, however, that the prosecution for violation of this Act( 
shall proceed independently and regardless of the status, stage or result of the prosecution1 
under the Revised Penal Code or other special laws; provided, further, that no filing fee: 
shall be imposed for the commencement of the criminal charge under this Act. 
SEC. 4. Liability, if Violator is a Corporation or Unregistered Entity. - If the 
violation under this Act is committed by a corporation, partnership or other unregistered 
entity, the directors, president, treasurer, general manager or one performing similar 
functions and other corporate officers or persons responsible for such false or fraudulent] 
advertisement shall be personally liable for such violation. 
SEC.5. Multiple Liability. - Any person found violating this Act shall be charged. 
arid convicted with as many counts of such violations as there are victims who have been 
defrauded by reason of such false or fraudulent advertising, 
SEC 6. Penal@. - Any person found liable for violating this Act shall be 
sentenced to an imprisonment of not less than one (1) year but not exceeding six (6) years 
or a fine of not less than twice the value of the amount defrauded; provided, that in case, 
the person convicted fails or refuses to pay the fine, he shall suffer subsidiary 
imprisonment at the rate of P200 per day hut not exceeding six (6) years. 
SEC. 7. Effectivity. - This Act shall take effect fifteen (15) days after publication! 
in a newspaper of general circulation. 
Approved, 
2.