Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO._1352

Introduced by Rep. Precious Hipolito Castelo

EXPLANATORY NOTE

In the light of public advisory by the Department of Justice, it now behooves Congress to
impose stronger regulatory sanctions against telecommunication giants whose promises of
unlimited internet offers are not actually delivered and thus violate existing laws requiring
truth in advertising and consistency in the provision of the service.

What the telecommunication giants that dominate the whole telecommunications service
sector actually do is a ‘deceptive business practice’ which apparently imposes only a fine of
at least P500.00 but not more than P'10,000.00 or imprisonment of at least five months to at
most one year or both.

{t shall constitute a faulty argument on the part of the telecommunication companies when in
offering unlimited internet service, they however invoke ‘fair usage policy’ (FUP) which
simply means that the user or the subscriber does not really enjoy true and real unlimited
internet service. This ‘fair usage policy’ on unlimited internet service is deemed inconsistent
with the provisions of the Consumer Act of the Philippines and thus this misleadi
practice and advertisements must be addressed through the imposi
fines, hence the proposed measure.

The immediate passage of this measure will redound to the true benefit of few mi
subscribers using the services of the giant telecommunication companies, hence its passage
is deemed urgent.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No, 1352

Introduced by Rep. Precious Hipolito Castelo

AN ACT
IMPOSING HIGHER FINE OR PENALTY AGAINST TELECOMMUNICATION
COMPANIES INVOLVED IN MISLEADING OR DECEPTIVE TRADE AND/OR BUSINESS
PRACTICE AND ADVERTISEMENTS AND FOR OTHER PURPOSES

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

SECTION 1. This Act shall be known as the “The Intemet Subscribers Protection
Act.”

SEC. 2. The fine of at least P50,000.00 to not more than P1,000,000.00 or the
Penalty of at least 4 years to not more than 6 years imprisonment shall be imposed upon a
telecommunication company or internet service provider and/or its CEO/president that shall
be found violating the implied provisions under the Consumer Act of the Philippines and the
Truth in Advertising

SEC. 3. When a telecommunication internet service fails to deliver on its promise for
unlimited internet service by invoking a ‘fair usage policy,’ this being tantamount to an
inconsistency in its offer, promise, and/or advertisement, the subscribers are deemed
effectively short-changed and prevented the full enjoyment of the desired/preferred service
they paid for.

SEC. 4, The National Telecommunications Commission shall henceforth issue
appropriate rules, regulations, issuances and guidelines to carry out the intent of this Act.

SEC. 5. This Act shall take effect thirty (30) days upon its publication in the Official
Gazette and in at least three (3) newspapers of general circulation.

Approved,