FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
S.B.No. 
600 
Introduced by Senator JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
Advertising wields an immense influence in our contemporary society. Not 
only is it a communication tool which brings buyers and sellers together but also a 
viable mechanism of control. 
Takillg into account the power and impact of 
modern-day advertising, there has to be a foolproof mechanism which shall enable 
the State to ensure truth in advertising, uphold the people's right to know and 
protect them from unfounded and fraudulent claims. 
Republic Act 7394 (The Consumer Act of the Philippines) was enacted 
primarily to protect the consumers against false, deceptive and misleading 
advertisements. Unfortunately, the law fails to address the substantiation and 
documentation of advertising claims. As a result, the consuming public 
continues to fall prey to the empty words and promises of unscrupulous 
advertisers. 
This bill seeks to improve the quality of advertisements by requiring all 
advertisers to maintain a file containing the evidence of safety, performance, 
efficiency, quality and comparative price of the advertised product. Such data 
shall, upon demand, be made available to the public except for trade secrets, 
customer lists or other financial matters which may be considered confidential. 
Furthermore, it seeks to increase the imposable administrative fine to deter 
large-scale perpetrators of deceptive and unethical advertising practices. 
In view of the foregoing, the immediate enactment of the bill is earnestly 
urged. 
NGG Y EJERCITO ESTRADA 
Senator 


FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
Introduced by Senator JINGGOY EJERCITO ESTRADA 
AN ACT 
AMENDING ARTICLES 116 AND 164 OF REPUBLIC ACT NO. 7394 
OTHERWISE KNOWN AS THE CONSUMER ACT OF THE PHIL)PPINES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
lp’ 
SECTlON f ,  Article 110 of Republic Act No. 7394 is hereby amended to 
“Article 140. False, Deceptive or Misleading Advertisement. - It shall 
be unlawful for any person to disseminate or to cause the dissemination of 
any false, deceptive or misleading advertisement by Philippine mail or in 
commerce by print, radio, television, outdoor advertisement or other 
medium for the purpose of including or which is likely to induce directly or 
indirectly the purchase of consumer products or services. 
read as follows: 
An advertisement shall be false, deceptive or misleading if it is not in 
conformity with the provisions of this Act or it is misleading in a material 
respect. In determining whether any advertisement is false, deceptive or 
misleading, there shall be taken into account, among other things, not only 
representations made or any combination thereof, but also the extent to 
which the advertisement fails to reveal material facts with respect to 
consequences which may result from the use or application of consumer 
products or services to which the advertisement relates under the 
conditions prescribed in said advertisement, or under such conditions as 
are customary or usual. 
ALL ADVERTISERS SHALL BE REQUIRED, ON DEMAND BY THE 
IMPLEMENTING AGENCY CONCERNED, TO SUBMIT WITH RESPECT 
TO ANY ADVERTISEMENT SUCH TESTS, STUDIES, RESEARCHES OR 
SURVEYS INCLUDING TESTIMONIALS AND ENDORSEMENTS THEY 
HAD IN THEIR POSSESSION PRIOR TO THE TIME CLAIMS MADE AND 
WHICH PURPORT TO SUBSTANTIATE ANY CLAIMS, STATEMENTS OR 
REPRESENTATIONS MADE IN THE ADVERTISEMENT REGARDING 
THE 
SAFETY, 
PERFORMANCE, 
EFFICACY, 
QUALITY 
OR 
COMPETITIVE PRICE OF THE PRODUCT ADVERTISED. 
THE CLAIMS, STATEMENTS OR REPRESENTATIONS SUBJECT 
TO THE ABOVE REQUIREMENTS SHALL BE IDENTIFIED IN AN ORDER 
TO 
FILE SPECIAL 
REPORT WHICH 
WILL 
BE 
ISSUED TO 


ADVERTISERS BY THE IMPLEMENTING AGENCY ACTING MOTU 
PROPlO OR AT THE INSTANCE OF AN INTERESTED PARTY. ALL 
IMPLEMENTING AGENCIES SHALL BE AUTHORIZED TO COMPEL THE 
PRODUCTION OF SAID MATERIALS. 
EXCEPT FOR TRADE SECRETS, CUSTOMER LISTS OR OTHER 
FINANCIAL DATA WHICH MAYBE PRIVILEGED, THE INFORMATION 
OBTAINED SHALL BE MADE AVAILABLE TO THE PUBLIC ON THE 
BASES OF THE FOLLOWING CONSIDERATIONS: 
(A)THAT PUBLIC DISCLOSURE CAN ASSIST CONSUMERS IN 
MAKING A RATIONAL CHOICE AMONG COMPETING CLAIMS. 
(B)THAT THE PUBLIC'S NEED FOR USEFUL INFORMATION IS 
NOT BEING MET VOLUNTARILY BY ADVERTISERS. 
(C)THAT RELEASE OF REPORTS, SUMMARIES, INDICES OR 
OTHER 
PUBLICATION 
SHALL 
ALERT 
THE 
CONSUMERS, 
BUSINESSMEN AND PUBLIC INTEREST GROUPS TO POSSIBLE 
VIOLATIONS OF THE ACT." 
SECTION 2. Article 164 of Republic Act No. 7394 is hereby amended to 
read as follows: 
"Article 164. Sanctions. - After investigation, any of the following 
administrative penalties may be imposed even if not prayed for in the 
complaint: 
(a) the issuance of a cease and desist order: Provided, however, that 
such order shall specify the acts that respondent shall cease and desist 
from and shall require him to submit a report of compliance therewith a 
reasonable time: 
b) the acceptance of a voluntary assurance of compliance or 
discontinuance from the respondent which may include any or all of the 
following terms and conditions: 
1) xxx 
2) xxx 
3) xxx 
4) xxx 
5) xxx 
6) THE IMPOSITION OF ADMINISTRATIVE FINES IN SUCH 
AMOUNTS AS MAY BE DEEMED REASONABLE BY THE SECRETARY, 
WHICH SHALL IN NO CASE BE LESS THAN TWENTY THOUSAND 
(20,000.00) PESOS BUT NOT MORE THAN FIVE HUNDRED THOUSAND 
(500,000.00) PESOS DEPENDING ON THE GRAVITY OF THE OFFENSE 
AND AN ADDITIONAL FINE OF NOT MORE THAN TEN THOUSAND 
(10,000.00) PESOS FOR EACH DAY OF CONTINUING VIOLATION. 
SECTION. 3. Effectivity. - This Act shall take effect fifteen (15) days after 
its comple te publication in the Official Gazette or in a newspaper of general 
circulation. 
Approved,