Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House BLL No,__ 3726

Introduced by HONORABLE EDCEL “GREX” B. LAGMAN

EXPLANATORY NOTE

in the Philippines, at least eighty seven thousand six hundred (87,600)

Filipinos die every year from tobacco-related diseases, or approximately two

hundred forty (240) deaths every day. In 2009, the Philippines was revealed

to have one of the highest smoking populations in the world, ranking 9% for

males and 16th for females. These figures underscore the urgent need to
re effective measures to curb tobacco consumption.

adopt and impleme

The use of strong picture-based health warnings on tobacco packaging,
instead of text-only warnings, has demonstrated greater effectiveness in
reducing the toll of the tobacco epidemic, particularly within vulnerable
is of
literacy.3 Large, clear, visible, and full-color picture-based health warnings on
cigarette packages are an effective means of increasing health knowledge
among smokers and may also help to reduce the disparities in health
knowledge by providing low-income smokers with regular access to health
inform

Article 11 of the World Health Organization Framework Convention on
Tobacco Control (WHO FCTC), the first public health treaty of its kind,
obligates State Parties to implement large, rotating health warnings on all
tobacco product packaging and labeling within three (3) years from its entry
into force. For the Philippines, having signed and ratified the treaty in 2005,
this period of compliance has already lapsed. Thus, national legislation
requiring picture-based health warnings is a crucial step towards upholding
the Philippines’ obligations embodied in the WHO FCTC.

1 Department of Health National Tobacco Control Coordinating Office, data available at <http://www.beat-
tobacco ph/national-tobacco-controt-strategy/introduction/> Last accessed on 14 January 20144 see also
Quimbo SLA, Casorla AA, Miguel-Raquilod M, Medalla FM, Xu X, Chaloupka #). (2022), The Economics of Tohocca
and Tobacco Taxation in the Philippines, Paris: International Union Against Tuberculosis and Lung Disease.

2 American Cancer Society (2009); The Tobacco Atlas, 3rd ed, 23-25,

2 Cantrell, Vallone DM, Thrasher JF, Nagler RH, Felrman SP, et al. (2013), Impact of Tobacco-Related Heath
ing Labels acrass Socloeconomic, Race and Ethnfe Groups: Results from Web-Based

a Randomized Web-Based
Experiment. Available at <http:/ /www plosone.org/artcle/info%43Ado!%2F40.1371962Kjournal pone.0052206>
Last accessed on 14 January 2014.

4 See Riordan, M. (March 2013), “Tobacco Warning Labels: Evidence of Effectiveness," ‘the Campaign for
Tobacco-Free Kids. Available at <htcp://www.cobaccofreekids.org/research/factsheets/pdf/0325.pdt> Last
accessed on 14 January 2014.



The Philippines has a solemn obligation to protect and promote the
right to health, which is intimately linked with the self-preservation and self-
perpetuation of the Filipino people, Article II, Section 15 of the 1987
Philippine Constitution mandates that the State “shall protect and promote
the right to health of the people and instill health consciousness among
them." Hence, the immediate approval of this Bill requiring the placement of
picture-based health warnings on tobacco product labels and packages, as
well as any othi
products, is earnestly sought.

container used in displaying the cigarette or tobacco



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 3726

Introduced by HONORABLE EDCEL “GREX” B. LAGMAN

“AN ACT TO EFFECTIVELY INSTILL HEALTH CONSCIOUSNESS THROUGH
PICTURE-BASED HEALTH WARNINGS
ON TOBACCO PRODUCTS”

Be it 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 Picture-Based
Health Warning Law.”

Section 2. Declaration of Principles, - The State shall protect and
promote the right to health of the people and instill health consciousness
among them.

The State shall protect consumers from trade malpractices and from
substandard and hazardous products.

The State accepts that, as a State Party to the World Health
Organization (WHO) Framework Convention on Tobacco Control (FCTC), a
treaty that reaffirms the right of all people to the highest standards of health,
the Philippines is obliged to inform every person of the health consequences
of tobacco consumption and exposure to tobacco smoke; and to protect public
health policy from the commercial and vested interests of the tobacco,
industry.

‘The State is cognizant of the Philippines’ duty under Article 11 of the
FCTC, which is to adopt and implement by September 2008 effective health
warnings on tobacco products that should describe the h: mful effects of
tobacco use.

‘The State recognizes that based on empirical data, text warnings have
been shown to be insufficient in conveying the dangers of tobacco products,
while graphic or picture-hased health warnings have been shown to be more
effective in conveying the truth about the dangers of consumption of tobacco
and of exposure to tobacco smoke.

Section 3. Purpose. - The purpose of this Act is:


a. To have health warnings that effectively warn of the devastating
effects of tobacco use and exposure to second-hand smoke;

b. To remove signs or terms or any other direct or indirect means on
or in tobacco product packages that create or are likely to create a
false impression about the health effects of tobacco products,
including but not limited to misleading or deceptive descriptors like
“low tar,” “light,” “ultra light,” or “mild;”

¢. To further promote the right to health and information of the
people; and

d, To strengthen the role of the Department of Ilealth in promoting the
right to health and instilling health consciousness among Filipinos.

Section 4. Definition of Terms, -
a, “DOH” refers to the Department of Health.

b. “Insert” means any communication inside an individual package
and/or carton purchased at either wholesale or retail by consumers,
such as a leaflet or brochure.

c. “Onsert” means any communication affixed to the outside of an
individual package and/or carton purchased at either wholesale or
retail by consumers, such as a brochure beneath the outer
cellophane wrapping or glued to the outside of the cigarette
package.

d. “Picture-Based Health Warning” means warning labels that are
composed of a photographic picture warning on health dangers or
other problems related to tobacco use or exposure to tobacco
smoke and an accompanying textual warning that is related to the
picture, as issued by the DOH in accordance with Section 15 of this
Act.

e. “Principal Display Area” means:

1, In the case of a package and carton that has at least two equal
sized sides or surfaces, other than the top and bottom, that may
be displayed or visible under normal or customary conditions of
sale or use, the areas of each of the two largest surfaces;

2. The largest surface of any spherical, cylindrical or conical
container of tobacco products and in the case of a package and
carton that does not have a particular side or surface that is
predominantly displayed or visible under normal or customary
conditions of sale or use, the total surface area of the package;

3. All surfaces or panels, exterior or interior, of any tobacco
product packaging or carton not specified above.


f “Tobacco Product Package” means the packet and package of
tobacco products and any outside packaging and labeling of tobacco
products for sale, distribution, exportation, importation, trade,
exchange, or exhibition, such as, but not limited to, packs, tins,
boxes, pouches, flip-tops, slide and shell packages, cartons,
transparent wrappers, clear packaging, packages containing one
product unit, master cases, or other containers of tobacco products.

g. “Tobacco Products” means products entirely or partly made of leaf
tobacco as raw material, which are manufactured to be used for
smoking, sucking, chewing or snuffing, or by any other means of
consumption. The term also refers to any product, device or
delivery system which contains tobacco or any substance derived
from tobacco, and is intended for smoking or oral or nasal use. It
includes any product, device or delivery system that is designed,
intended or otherwise used as a substitute for any tobacco product
or any product, device or delivery system that resembles the
outward appearance of any tobacco product, whether or not it
delivers nicotine or any other substance derived from tobacco to
the user, such as electronic cigarettes, shisha, waterpipe, and
similar produts, devices or delivery systems.

Section 5. Picture-Based Health Warning. - Ninety (90) days after the
effectivity of this Act, cigarette packages and other tobacco product packages
found in the market including package insert and onserts, and any outside
packaging and labeling, shall bear highly visible full-color “Picture-Based
Health Warnings,” as prescribed, as to all particulars, that shall have two
components: a photographic picture warning and an accompanying textual
warning that is related to the picture.

a. The Picture-Based Health Warnings shall be printed on at least
eight-five percent (85%) of the principal display areas of any
tobacco package; it shall occupy no less than eighty-five percent
(85%) of the front and eighty-five percent (85%) of the back panel
of the packaging, as described in Section 4;

b. It shall be located on the top or upper portions of the said panels or
Principal Display Areas;

c. Nothing shall be printed or applied on a location where itis likely to
obscure or cover, in part or in whole, the Picture-Based Health
Warnings;

d. No part of the warning may be obliterated, obscured, folded,
severed or become unreadable when the tobacco package is opened
or closed or when a wrapper on the package is removed or by any
other legally required markings or by commercial inserts or
onserts;


e. The Picture-Based Health Warning shall be printed in accordance
with guidelines prescribed by the DOH, or in the absence thereof, in
full coloz, with the minimum resolution of 600 dpi using at least 4-
color printing;

f£ A minimum of eight (8) variations of Picture-Based Health
Warnings shall be printed simultaneously and these shall be rotated
periodically, not just for each brand family but also for each brand
within the family for each package size and type, so that at any time
within the twelve (12) month period, when a set of Picture-Based
Health Warnings are scheduled to be rotated, the variations of the
warnings shall appear in the market with proportionate frequency
and equal display of health warnings and messages on retail
packages;

g. In no case shall the Picture-Based Health Warning measure less
than 2475 square millimeters in size regardless of the type of
tobacco package. Furthermore, the shortest side of the health
warning shall measure no less than 55 millimeters;

h, Picture-Based Health Warning specifications:

1, The text warning accompanying the picture shall be
worded in such manner that an ordinary layman will
understand what the picture is about and what are the
ill-effects of smoking on the health of the smoker and
of the people around him;

2. The text warning shall be placed on areas of the
photograph where it will not obscure the picture itself
but will be prominently displayed;

3. The text shall use up to no more than 30% of the entire
area of the Picture-Based Health Warning and shall
appear in clearly legible type and in contrast by
typograph, layout and color, without the use of any
border, frame or any design that will effectively lessen
the size of the textual warning; and

4, The accompanying text shall be printed in English on
the front panel and Filipino on the back panel and
alternately, Filipino on the front panel and English on
the back panel. In the case of other containers where
there is only one (1) external surface area, the
accompanying text will likewise alternately be in
English or Filipino.

Section 6. Side Panel. - In addition to the Picture-Based Health

Warning, cigarette packages, as well as other tobacco product packages found
in the market, shall bear, on one side panel, additional information designed
to promote healthy behavior or to reduce tobacco

se, as issued by the DOH



hep
SESoav Ha wNe

according to Section 15 of this Act, such as, but not limited to, additional
health warnings, hotlines or websites for tobacco-related concerns, or tips on
how to stop smoking, This information shall be prominently displayed and
the text thereto shall appear in clearly legible type and in contrast by
typograph, layout and color, without the use of any border or frame or any
other design that will effectively lessen the size of the additional health
warnings.

Section 7. Descriptors. - Ninety (90) days after the effectivity of this
Act, no cigarette packs or other tobacco product packages shall contain any
term, descriptor, trademark, figurative or any other sign including colors,
images, or numbers, or any other package or product design or feature, that
directly or indirectly create or are likely to create the false impression that a
particular tobacco product is less harmful than any other tobacco product or
brand, or that promote a tobacco product by any means that are false,
misleading, deceptive, or likely to create and erroneous impression about its
characteristics, health effects, hazards or emissions, such as, but not limited
to, “low tar,” ‘light,” “ultra-light,” or “mild,” “extra,” “ultra,” and similar terms
in any language that might mislead consumers, or corresponding symbols or
colors signifying the same.

No cigarette packs or other tobacco product packages shall contain
information that may imply that one variant or brand is safer than the other,
such as, but not limited to, statements indicating that the tobacco product
contains “reduced levels” of contents, substances, and emissions. Figures for
emission yields, such as for tar, nicotine and carbon monoxide, shall be
prohibited, including when used as part of a brand name or trademark

Section 8. Minimum Principal Display Area / Prohibition on Smaller
Packages, ~ ‘To ensure the visibility, prominence, and impact of Picture-Based
Health Warnings, no person or legal entity shall make, fabricate, import, sell
or distribute cigar, cigarette or other tobacco products with packages that
have for its Principal Display Area, a total area of less than 4950 square
millimeters for each of the two largest sides in the case of tobacco packages
described in Section 4(e)(1). For other tobacco packages that fall under
Section 4(e}(2) and 4(c)(3), the minimum size for the principal display area
shall also be 4950 square millimeters.

Section 9. Costs. - All printing costs pertaining to packaging and
labeling shall be shouldered by tobacco manufacturers and/or importers.

Section 10. Prohibition on Sales, - No person or legal entity shall sell
or commercially distribute or display any cigarette or tobacco product
without ensuring that the labels and packages, as well as any other container
used in displaying the cigarette or tobacco products, meet the requirements
under this Act. Manufacturers and distributors of tobacco products shall
ensure the removal from all displays of non-compliant tobacco products
manufactured and distributed by them within one hundred twenty (120)
days from the effectivity of this Act.



50

Section 11. Prohibition on Obstruction of Display. - No person or
legal entity shall obscure or cover in part or in whole the Picture-Based
Health Warning in the selling areas, The Picture-Based Health Warnings shall
be prominently displayed whenever the said packages are commercially

displayed.

Design features that tend to obscure or cover, in part or in whole, the
Picture-Based Health Warning, such as, but not limited to, any features of the
tobacco product package that are designed to change after retail sale, are
likewise prohibited, including, but not limited to:

a. Heat activated inks;

b. Inks or embellishments designed to appear gradually over time,
including on the product itself;

c. Inks that appear fluorescent in certain light, including on the
product itself;

d. Panels designed to be scratched or rubbed to reveal an image or
text;

e. Removable or hidden tabs or panels;

Fold-out tables or panels; and

g. Any other misleading or promotional features or design of the
packaging, labeling, or product.

Section 12, Liability of Manufacturers, Importers, and Distributors.
- Manufacturers, importers, and distributors of tobacco products shall be
directly liable for any violations of the provisions of this Act. In the case of a
business entity or establishment, the chairperson of the Board of Directors,
the owner, president, manager and the corporate officials thereof shall be
directly responsible therefor and shall be made accountable and jointly and
severally liable with the offending entity or establishment. Agents or
representatives of the aforecited manufacturers, importers, and distributors
who commit any violation of the provisions of this Act and its implementing
rules shall be jointly and severally liable with the manufacturers, importers,
and distributors.

Section 13, Liability of Retailers and Sellers, - Retailers and sellers of
tobacco products shall be directly liable for violations of Section 10 and 11 of
this Act. In the case of a business entity or establishment, the chair of the
Board of Directors, the owner, president, manager and the corporate officials
thereof shall be directly responsible and shall be made accountable and
jointly and severally liable with the offending entity or establishment.

Section 14, Penalties for Non Compliance. -
a. The following penalties shall apply to manufacturers, importers,

and distributors of tobacco products as well as_ their
agents /representatives for any violation of this Act:

1. On the first offense, a fine of not less than One Million Pesos (PhP
1,000,000.00) shall be imposed;


2. On the second offense, a fine of not less than Five Million Pesos
(PhP 5,000,000.00) shall be imposed;

3. On the third offense, in addition to a fine of not less than Twenty
Million Pesos (PhP 20,000,000,00) or imprisonment of not less
than one (1) year but not more than five (5) years, or both at the
discretion of the court, the business permits and licenses, in the
case of a business entity or establishment shall be revoked or
cancelled.

If the guilty officer is a foreign national, he shall be deported after
service of sentence and/or payment of applicable fines without need of
further deportation proceedings and shall be forever barred from entering
the Philippines. Filing of the appropriate case may be commenced by the
DOH; the Philippine National Police (PNP); a Prosecutor by himself motu
proprio; or any private citizen.

Each batch of non-compliant tobacco packages, regardless of size, that
are withdrawn from the manufacturing facility, imported into the Philippines
for sale to the market, transferred to other facilities or delivered to the retail
establishments after the compliance date shall constitute one offense, An
additional penalty of One Hundred Thousand Pesos (PhP 100,000.00) per day
shall be made for each day the violation continues after having received the
order from the DOH or other appropriate body, notifying the company of the
infraction.

b. The following penalties shall individually apply to retailers/sellers
of tobacco products as well as their agents/representatives for any
violation of this Act:

1. On the first offense, a fine of not less than Five Thousand Pesos
(PhP 5,000.00) but not more than Ten Thousand Pesos (PhP
10,000.00) shall be imposed;

2. On the second offense, a fine of not less than Ten Thousand
Pesos (PhP 10,000.00) but not more than Twenty Thousand
Pesos (PhP 20,000.00) shalll be imposed;

3. On the third offense, in addition to a fine of not less than Twenty
Thousand Pesos (PhP 20,000.00) or imprisonment of not less
than two (2) months, or both at the discretion of the court, the
business permits and licenses, in the case of a business entity or
establishment shall be revoked or cancelled.

If the guilty officer is a foreign national, he shall be deported after
service of sentence and/or payment of applicable fines without need of
further deportation proceedings and shall be forever barred from entering
the Philippines. Filing of the appropriate case may be commenced by the
DOH; the Philippine National Police (PNP); a Prosecutor by himself motu
proprio; or any private citizen.

Each day that non-compliant tobacco packages are found in the retail
establishments of the retailers after the compliance date shall constitute one
offense. An additional penalty of Five Thousand Pesos (PhP 5,000.00) per day


shall be made for each day the violation continues after having received the
order from the DOH or other appropriate body, notifying the retailers of the
infraction.

Section 15. Picture-Based Health Warning Guidelines. - Thirty (30)
days after the effectivity of this Act, and every year thereafter, or as
frequently as the need arises, the DOH shall issue a template of Picture-Based
Health Warnings to be rotated, as well as guidelines respecting the printing
instructions, specific pictures, design, or content of the information relating to
the Picture-Based Health Warnings, and other information that must appear
in the tobacco product packages. The DOH shall consider the
recommendations of leading non-government organizations that have
established and proven records of dealing with tobacco-related diseases and
deaths; Provided, however, that the absence of recommendations shall not
delay the issuance of the template and guidelines. All Picture-Based Health
Warnings issued shall comply with the specifications above and must always
present the devastating effects of tobacco use and exposure to tobacco smoke.

In light of technological developments in printing quality and package
design, the DOH shall have the authority to provide additional printing
guidelines beyond those specified in Section 5(e), to ensure that picture
warnings remain effective and with impact.

Picture-Based Health Warning regulations issued by the Secretary of
Health upon recommendation of non-government organizations shall be
presumed compliant with the specifications listed above for purposes of
implementation by the tobacco companies. Picture-Based Health Warnings
duly approved by the WHO from other countries, for as long as they meet the
specifications provided for under this Act, may likewise be used.

‘Tobacco manufacturers and importers shall have no more than two (2)
months to comply with any new templates issued.

Section 16. Administrative Power. - Within one (1) year from the
effectivity of this Act, the DOH shall issue Guidelines and Administrative
Sanctions to facilitate the implementation of this Act, but this should, in no
case, delay the implementation of this Act and the deadlines/time frames set
herein.

The DOH, in coordination with the Food and Drug Administration, is
hereby charged with implementing and enforcing the provisions of this Act
and shall:

a. Promulgate rules governing the hearings on alleged violations of
this Act. The hearings shall be summary in nature and shall be
conducted by means of position papers and affidavits. Any decision
must be rendered by the DOH no longer than thirty (30) days from
the date of filing;

b. Impose, after notice and hearing and in accordance with the degree
of the offense and the nature of the business of the offender,

10


administrative fines of up to Twenty Million Pesos (PhP
20,000,00.00), the proceeds of which will be used for health
promotion campaigns on tobacco control of the DOH. Provided, that
manufacturers, importers, and distributors of tobacco products as
mentioned in Section 12 of this Act, shall have a higher penalty
compared to retailers and sellers, as provided in Section 13 of this
Act;

c. Issue other administrative rules and regulations it deems necessary
to effectively implement the provisions of this law, such as but not
limited to, seizure, forfeiture, and destruction of non-compliant
packages as described under this law.

The non-issuance of the Regulations and Administrative Sanctions by
the DOH shall not prevent the coming into force of this Act.

‘The DOH shall have the power to call upon law enforcement agencies,
and the managing authorities in the economic zones for assistance in the
implementation and enforcement of its decisions, orders, rules and
regulations. In addition, the DOH may also deputize, whenever necessary,
local government executives and representatives of the national government
agencies, tobacco control organizations and concerned sectors to help
monitor compliance with and report any violation of this Act.

The filing of an administrative case for the act constituting a violation
of the administrative regulations to be issued by the DOH shall not preclude
the simultaneous or subsequent filing of criminal charges for the same act
constituting a violation under this Act, through criminal proceedings
authorized under Section 14 of this Act. In the same manner, neither shall the
filing of criminal charges preclude the filing of administrative cases.

Section 17. Strict Compliance and Inspections. - Absolutely no
extensions of time to comply with the provisions of this Act shall be granted
to tobacco manufacturers and importers or any other affected party.

For purposes of enforcing the law and ensuring compliance therewith,
the DOH, through FDA or other deputized law enforcement agency, or its
authorized representative, upon presenting appropriate credentials to the
owner, manager, or agent in charge, is authorized:

a. to enter, at reasonable hours, any factory, warehouse or
establishment in which tobacco products are manufactured,
processed, packed or held, for introduction into domestic commerce
or are held after such introduction; or

b. to enter any vehicle being used to transport or hold the tobacco
products in question; and

c. to inspect, in a reasonable manner, such factory, warehouse, or

establishment or vehicle and all pertinent equipment, finished and
unfinished materials, containers and labeling therein.

11


If the officer, employee, or person designated to make any such
inspection of a factory, warehouse or other establishment has obtained any
sample in the course of the inspection, upon completion of the inspection and
prior to leaving the premises, he shall give the owner, manager, or agent-in-
charge a receipt describing the samples obtained.

The DOH shall have the power to punish the refusal of the owner,
manager, agent-in-charge or employee of the factory, warehouse,
establishment, or vehicle who, despite the presentation of appropriate
credentials by the officer or employee designated to conduct the inspection,
refuses the entry of such officer or employee.

Section 18, Citizen Suits. - For purposes of enforcing the provisions of
this Act or its implementing rules and regulations, any citizen may file an
appropriate civil, criminal or administrative action in the proper courts or
administrative body against:

a, Any person or entity who violates or fails to comply with the
provisions of this Act, its implementing rules and regulations,
including the template, guidelines, or other regulations;

b. The DOH and other implementing agencies with respect to rules
and regulations issued inconsistent with this Act; and/or

¢, Any public officer who willfully or grossly neglects the performance
of an act specifically enjoined as a duty by this Act, its implementing
rules and regulations, including the template, guidelines, or other
regulations; or abuses his authority in the performance of his duty;
or, in any manner, improperly performs his duties under this Act or
its implementing rules and regulations including the template,
guidelines, or other regulations.

‘The administrative, civil and criminal actions allowed under this
section shall be alternative and cumulative and shall not preclude any other
person from filing a similar action.

Section 19, Other Obligations of the Tobacco Industry. - Compliance
with the Act shall not remove or diminish any other obligations of tobacco
manufacturers, importers, distributors, retailers, and sellers, including, but
not limited to, obligations to warn and inform consumers about the health
hazards of tobacco use and exposure to tobacco smoke.

Section 20. Separability Clause. - if any clause, provision, paragraph
or part thereof shall be declared unconstitutional or invalid, such judgment
shall not affect, invalidate or impair any other part hereof but such judgment
shall be merely confined to the clause, provision, paragraph or part directly
involved in the controversy in which such judgment has been rendered.

Section 21. Repealing Clause. - All other laws, degrees, executive
order and other administrative issuances and parts hereof which are

12


ards KHRwNe

inconsistent with the provisions of this Act are hereby modified, superseded
or repealed accordingly.

Section 22. Effectivity. - This Act shall take effect fifteen (15) days
following its publication in the Official Gazette or in any major daily
newspaper of national circulation in the Philippines.

Approved,

13