THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
Senate Bill No. ___ 
226% 
INTRODUCED BY SEN. MANNY VILLAR 
EXPLANATORY NOTE 
The use of credit card continues to gain widespread acceptance as mode 
of payment in the highly competitive world of business. More and more business 
ingenuously practice the acquisition or purchase of consumer items through the 
credit card to keep abreast or surpass their competitors by way of this marketing 
technique that handled efficiently and honestly, benefits both seller and buyer. 
In the wake of the phenomenal upsurge of credit card as a means of 
marketing, corresponding malpractices and misdeeds in so far as advertising 
therefore also increased. Since there are no applicable laws or regulations that 
pertain to them, credit card advertisements bordering on or are downright false 
fraudulent or misleading invariably emerged. Inexplorably, the gullible and 
unknowing consuming public easily falls prey to credit card terms that unduly 
disadvantage them. 
It is not thus uncommon to see, for example credit card advertisement on 
newspapers or other publication of slimming salons which assure the consumer 
of losing 10 Ibs. In one week when all he or she would really lose is his or her 
money, Many travel agencies derives publicity mileage through exaggerated 
credit card advertisement when all that flies is the consumer's hard earned cash. 
Given this grim specter and in order to protect the consumer against 
misleading credit card advertisement, this bill hopes to plug the necessary 
loopholes deemed to exist in the business. It seeks to safeguard and guarantee 
the consumer against the unscrupulous, mean and underhanded manufacturers, 
producers and their advertising agents or agencies and such other persons, 
natural or juridical, who advertise their goods, products or services through use 
of credit card when there are false, fraudulent, misleading or deceitful. 
The bill, furthermore, seeks to give ample meaning to the constitutional 
mandate more specifically Article XVI Sec. 11 (2) which provides that: 
"The advertising industry is impressed with public 
interest and shall be regulated by law for the protection of 
the consumers and the promotion of the general welfare". 
Accordingly, approval of this bill is requested. 


THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
22G 
Senate Bill No. __ 
INTRODUCED BY SEN. MANNY VILLAR 
AN ACT 
TO REGULATE CREDIT CARD ADVERTISING, PROVIDING PENALTIES FOR 
VIOLATION THEREOF AND FOR OTHER PURPOSES 
Be enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. Short Title. - This Act shall be known as the "Credit Card 
Advertising Law". 
SECTION 2. Declaration of Policy. - It is declared to be the policy of the 
State to protect and secure the interest of the consuming public against false, 
fraudulent or misleading advertisement in the use of credit cards for the 
purchase, acquisition or acquirement of consumer goods, products or services. 
SECTION 3. Definition of Terms. - The terms used in this Act shall have 
the following meanings: 
A. Credit Card - is an instrument that entitles a person to obtain 
credit from a creditor for the acquisition of a consumer good, product or 
service, payment for which may be deferred to staggered depending upon 
the terms or agreement. 
' 
B. Credit Card Advertisement - means any commercial message 
published, circulated or disseminated message published, circulated or 
disseminated in any medium, whether printed or broadcasted or as an 


interior or exterior sign or a window display, of a consumer good, product 
or service meant to be offered on credit installment or multiple payments. 
C. Advertisement - means any paid form of non-personal 
presentation made by an identified sponsor 
D. Advertising Agency - means a service organization which may 
be a single proprietorship, partnership or corporation established and 
operated for the purpose of counseling on, creating, producing and 
implementing advertising programs for and in behalf of advertisers in all 
forms of media to inform, notify and educate consumers on the availability 
and attributes of consumer goods, products and services being offered 
through the use of credit cards., 
E. Consumer - means a natural or juridical person who is a 
purchaser, recipient of any consumer goods, products or services through 
the use of credit card. 
F. Credit - means the right given by a creditor to a debtor to incur 
debt and defer its payment or purchase goods, products or services and 
defer payments thereof. 
G. Open End Credit - means consumer credit extended on an 
account or credit card privilege pursuant to a plan or agreement under 
which (1) the creditor may permit the consumer to make purchase directly 
from the former; (2) the consumer has the privilege of paying the balance 
or remainder in full or in credit or installment; (3) a finance charge may be 
computed by the creditor from time to time. 
H. Finance Charge - represent the amounts or fees to be paid by 
the debtor incident to the availment of credit including interests or 
discount, collection fees, credit investigation fees and other service 
charges. Its total represents the difference between the (1) aggregate 
consideration (downpayment plus installment) on the part of the debtor 
and (2) the sum of the cash price and non-finance charges. 


SECTION 4. Prohibited Acts. - It shall be unlawful for any person to 
advertise or cause the advertisement of any false, fraudulent or misleading 
advertisement on credit card or use thereof through print, radio, television, 
outdoor advertisement or other medium, or by mail, for the purpose of inducing, 
enticing or luring directly or indirectly the consuming public to purchase, buy or 
acquire consumer good, product or service though the use of credit card. 
SECTION 5. Credit Card Advertising. - Advertisements on credit card to 
aid, promote or assist directly or indirectly, extension of consumer creditmmay be 
allowed provided it shall: 
(1) state that a specific amount of credit can be arranged, extended or 
made available and that the creditor usually and customarily arranges, 
extends or make available credit or installment for the period and in 
that amount; or 
(2) state that a specific down payment extending or granting credit or 
installment through the use of credit card will be accepted and that the 
creditor usually and customarily accepts or will accept down payment 
for that amount; or 
(3) set forth any specific terms of an open-end credit plan and likewise 
clearly and conspicuously set forth the disclosure required of the plan 
in the advertisement. Such disclosure shall be as follows: 
a. An explanation of the time period, if any, within which any credit 
extended may be paid without incurring a finance charge; 
b. The method of determining the balance upon which a finance 
charge may be imposed; 
c. The method of determining the amount of the finance charge 
including the determination of any minimum fixed, check service 
transaction, activity of similar charge which is imposed as a 
finance charge. 


SECTION 6. Disclosure. - In any and all credit card advertisements, all 
information which are relevant, pertinent and material to the consumer good, 
product or services being advertised must be fully disclosed so that the 
consumer may readily compare the different credit cards available to him from 
other sources and to avoid the uninformed, misinformed or erroneous use of 
credit. The following, but not strictly limited to, shall be disclosed in a credit card 
advertisement: 
1. The cash price or amount of loankredit as applicable; 
2. The down payment, if any; 
3. The number, amount and due dates or periods of payment schedule to 
repay the indebtedness or credit; and 
4. Rate of finance charge expressed in an annual or applicable 
percentage rates. 
SECTION 7. Credit Card Advertisement may be pulled out, withdrawn or 
recalled from circulation, publication or dissemination. - Advertisement of credit 
cards on consumer goods, products or services deemed false, fraudulent or 
misleading may be pulled out, withdrawn or recalled from circulation, publication 
or dissemination without prejudice to Section 8 of this Act against persons or 
parties responsible therefor. 
SECTION 8. Criminal liability to willful, indiscriminate and knowing 
violation. - Whoever willfully, indiscriminately and knowingly gives false, 
fraudulent or misleading information on consumer good, products or services for 
the purpose of advertising the same through credit card or otherwise fails to 
comply with any or all of the foregoing provisions shall be fined not less than One 
Thousand Pesos (PI ,000.00) nor more than Five Thousand Pesos (P5,OOO.OO) 
or imprisonment not less than six (6) months nor more than two (2) years or both 
at the discretion of the court. 
If the violation of any of the provisions of this Act is committed by a judicial 
person, the penalties provided therein shall be imposed upon the presidents, 


managers, directors, partners, employees or persons therein responsible for the 
offense. If the violation is committed by an alien, he shall be deported after the 
service of the sentence without the need for further proceedings for deportation. 
If the offender is a naturalized Filipino citizen, he shall be automatically divested 
of his Filipino citizenship and, likewise, deported after the service of sentence, 
If the offender is a government official or employee, he shall, in addition to 
the abovementioned penalties, suffer the penalty of perpetual and absolute 
disqualification to hold office. 
SECTION 9. Exception from liability, - No publisher, radio broadcast or 
television license or agency or medium for the dissemination of advertising 
except the manufacturer, packer, distributor or seller of the consumer goods, 
products or services and the advertising agency including media time and space 
agent to which the false, fraudulent or misleading advertisement on credit card 
relates shall be liable by reason of dissemination by him or any false, fraudulent 
or misleading credit card advertisement unless he refused, upon request or 
appropriate authorities, to furnish the same or identity of the manufacturers, 
packer, distributor or seller or advertising agency including media time and space 
agent, who caused the dissemination of such advertisement. 
SECTION I O .  Repealing Clause. - All laws, acts, decrees, orders or 
statutes or parts of laws, acts, decrees, orders or statutes deemed inconsistent 
with the provision of this Act are hereby repealed or modified accordingly. 
SECTION 11. Date of €ffectivity. - This Act shall take effect after its 
publication in at least two (2) newspapers of general circulation. 
Approved,