" 
SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S.No. 1703 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The Constitution"Article 16, Section 9, provides: 
,irtUttl.' 
(lillt;, of t~, ,jffrtt .. ~ 
'13 
SEP 17 P3 :58 
The State shall protect consumers from trade malpractices and from substandard 
or hazardous products. 
Telemarketing is a recent innovation. Telemarketing means a plan, program, or 
campaign, which is conducted to induce purchase of goods or services by significant use of 
telephones. It differs from other sales activities in that in can be carried out by sellers without 
direct contact. 
Due to its unique character, many consumers are victimized by several forms of 
telemarketing deception and abuse. Thus, Congress should enact legislation that will offer 
consumers necessary protection from telemarketing deception (including fraud) and abuse. 
The purpose of this bill is to strengthen the authority of the Department of Trade and 
Industry regarding fraud committed in connection with sales made with a telephone.' 
• This bill was originally filed during the Fourteenth Congress, First Regular Session. 
1 


SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
Sefllltr 
(!llf.;, lI! I\]' jm.b,~ 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 
S£P 17 P 3 :58 
SENATE 
. 
S. No. 
1703 
lU''CEIVED t:.\ : .. _~ 
.. 
Introduced by Senator Miriam Defensor Santiago 
I 
AN ACT 
2 
EMPOWERING THE DEPARTMENT OF TRADE AND INDUSTRY TO REGULATE 
3 
ABUSIVE TELEMARKETING ACTIVITIES 
4 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
5 
SECTION 1. Short Title. - This Act shall be known as the "Consumer Protection 
6 
Telemarketing Act." 
7 
SECTION 2. Definition. - For purposes of this Act, the term "telemarketing" means a 
8 
plan, program, or campaign which is conducted to induce purchases of goods or services by 
9 
significant use of one (1) or more telephones. The term does not include the solicitation of sales 
10 
through the mailing of a Catalog which -
11 
(A) 
contains a written description or illustration of the goods or services offered' for 
12 
sale; 
13 
(B) 
includes the business address of the seller; 
14 
(C) 
includes multiple pages of written material or illustrations; and 
15 
(D) 
has been issued not less frequently than once a year, where the person making the 
16 
solicitation does not solicit customers by telephone but only receives calls initiated by customers 
17 
in response to the catalog and during those calls takes orders only without further solicitation. 
18 
SECTION 3. Telemarketing Rule. -
19 
(A) 
IN GENERAL-
1 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
(B) 
(1) The Department of Trade and Industry shall prescribe rules prohibiting 
deceptive (including fraudulent) marketing activities and other abusive 
telemarketing activities. 
(2) The Department shall include in such rules respecting deceptive 
telemarketing activities -
(a) a definition of deceptive telemarketing activities; and 
(b) criteria that are symptomatic of· deceptive telemarketinK as' 
distinguished from ordinary telemarketing business practices. 
(3) The Department shall include in such rules respecting other abusive 
telemarketing activities a requirement that telemarketers may not undertake a 
pattern of unsolicited telephone calls which the reasonable consumer would 
consider coercive or abusive of such consumer's right to privacy. In prescribing 
the rules described in this paragraph, the Department shall consider -
(a) including a requirement that goods or services offered by telemarketing 
be shipped or provided within a specified period and that if the goods or 
services are not shipped or provided within such period, a refund be 
required, and 
(b) including, where practicable, authority for a person who orders a good 
or service through telemarketing to cancel the order within a specified 
period. 
RULE-MAKING - The Secretary of Trade and Industry shall promulgate the 
22 
rules under section (A) (l) within ninety (90) days after the date of enactment of this Act. . 
23 
SECTION 4. Action by Private Persons. - Any person adversely affected by any pattern 
24 
or practice of telemarketing which violates any rule of the Department under section (3) or an 
25 
unauthorized person acting on such person's behalf may, within three (3) years after discovery 
26 
of the violation, bring a civil action against a person who has engaged or is engaging in such 
27 
pattern or practice of telemarketing. Such an action may be brought to enjoin such telemarketing, 
2 


I 
to enforce compliance with any rule of the Department under section 3, to obtain damages, or to 
2 
obtain such further and other relief as the court may deem appropriate. 
3 
SECTION 5. Separability Clause. - If any provision or part thereof is held invalid or 
4 
unconstitutional, the remainder of the law of the provision not otherwise affected shall remain 
5 
valid and subsisting. 
6 
SECTION 6. Repealing Clause. - Any law, presidential decree or issuance, executive 
7 
order, letter of instruction, administrative order, rule or regulation contrary to or inconsistent 
8 
with the provisions of this Act is hereby repealed, modified, or amended accordingly. 
9 
SECTION 7. EffectiVity Clause. - This Act shall take effect fifteen (15) days after its 
10 
publication in at least two (2) newspapers of general circulation. 
Approved, 
3