FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
8 
AUIi *7? 7 1 ~( 
Second Regular Session 
) 
SENATE 
%No. 2570 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The prepaid calling industry certainly has come a long way. It is one of the 
leading money-makers and stock-market leaders in OUT economy. However, serious 
problems of consumers complaining that they cannot get the value of what they pay for in 
terms of the services offered by prepaid calling companies need to be given attention. 
According to a leading cell-phone consnmer advocacy group, the following are 
the abuses mostly committed by the prepaid calling industry: (1) diminishing load, (2) 
spam messages/unsolicited broadcast messages such as ring tones, promo offers, (3) 
expiration of free text, (4) revising of unlimited text promo and (5) charging for a whole 
minute or a fraction of a minute even if subscriber used a few seconds only and (6) 
setting of expiration dates on prepaid call-text cards. 
The primary objective of this bill is to stem the tide of what is viewed as 
widespread deceptive marketing practices by the prepaid calling card industry. Common 
complaints from consumers of pre-paid calling cards such as deducting from card 
balances, undisclosed or ambiguous service fees and advertising minutes of use that are 
never delivered - would be strictly prohibited. Some of the requirements are very similar 
to existing consumer protection laws and regulations already imposed in other countries. 
This bill will require prepaid telephone calling service providers or prepaid 
telephone calling card distributors to disclose certain information, including the total 
value in dollars or the number of calling minutes, a description of all terms and 


conditions, and the service provider’s name, customer service number, and hours of 
service. This bill will also make it uiilawfitl for any provider or distributor to impose any 
charge or fees not so disclosed or provide fewer minutes than disclosed. 
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FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
8 
hUG 27 P 3 ’ i  1 
Second Regular Session 
1 
SENATE 
S. B. NO. 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
PROTECTING CONSUMERS OF PREPAID CALLING CARDS AND 
PROHIBITING DECEPTIVE PRACTICES IN THE PRE-PAID PHONE CARD 
INDUSTRY 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. This Act may be known as the “Prepaid Calling Card 
Consumer Protection Act of 2008. 
SECTION 2. DeJnitions. 
(a) COMMISSION- The term 
“Commission” means the National 
Telecommunications Commission (NTC). 
(b)FEES- 
1. IN GENERAL- The term “fees” means all charges, fees, taxes, or 
surcharges, including connection, hang-up, service, payphone, and 
maintenance charges, which may be applicable to the use of a prepaid 
telephone calling card or a prepaid telephone calling service used by a 
consumer for calls originating within the Philippines. 
2. EXCLUSION- The term “fees” does not include the applicable per 
unit or per minute rate for the particular destination called by a 
consumer. 
(c) INTERNATIONAL 
PREFERRED 
DESTINATION- 
The 
term 
“international preferred destination” means a specific international 
destination named on a prepaid telephone calling card or on the packaging 
material accompanying a prepaid telephone calling card. 
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(d)PREPAID TELEPHONE CALLING CARD- 
1. IN GENERAL- The terms “prepaid telephone calling card” mean any 
right of use purchased in advance for a sum certain linked to an access 
number and authorization code that enables a consumer to use a 
prepaid telephone calling service. Such rights of use may be embodied 
on a card or other physical object or may be purchased by an 
electronic or telephonic means through which the purchaser obtains 
access numbers and authorization codes that are not physically located 
on a card or other physical object. 
2. EXCLUSION- The terms “prepaid telephone calling card” and “card” 
do not include cards or other rights of use that provide access t o -  
(i) a telecommunications service with respect to which the card 
or other rights of use and the telecommunications service are 
provided for free or at no additional charge as a promotional 
item accompanying a product or service purchased by a 
consumer; or 
(ii) a wireless telecommunications service account with a wireless 
service provider that the purchaser has a preexisting 
relationship with or establishes a carrier-customer relationship 
with 
via 
the 
purchase 
of 
a 
prepaid 
wireless 
telecommunications service handset package. 
(e) PREPAID TELEPHONE CALLING CARD DISTRIBUTOR- 
1. IN GENERAL- The term “prepaid telephone calling card 
distributor” means any entity, corporation, company, association, 
firm, partnership, or person that purchases prepaid telephone 
calling cards or services fkom a prepaid telephone calling card 
distributor or prepaid telephone calling service provider and sells, 
resells, issues, or distributes prepaid telephone calling cards for a 


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fee to one or more distributors of such cards or to one or more 
retail sellers of such cards. 
2, EXCLUSION- The term “prepaid telephone calling card 
distributor” does not include any retail merchants or sellers of 
prepaid telephone calling cards exclusively engaged in point-of- 
sale transactions with end-user customers. 
(f) PREPAID TELEPHONE CALLING SERVICE- 
1. IN GENERAL- The terms “prepaid telephone calling service” and 
“service” mean any telecommunications service, paid for in 
advance by a consumer, that allows a consumer to originate voice 
telephone calls through a local, long distance, or toll-free access 
number and authorization code, whether manually or electronically 
dialed. 
2. EXCLUSION- The terms “prepaid telephone calling service” and 
“service” do not include any service that provides access to a 
wireless telecommunications service account wherein the 
purchaser has a preexisting relationship with the wireless service 
provider or establishes a carrier-customer relationship via the 
purchase of a prepaid wireless telecommunications service handset 
package. 
(g) PREPAID. TELEPHONE CALLING SERVICE PROVIDER- The 
term “prepaid telephone calling service provider” means any entity, 
corporation, company, association, firm, partnership, or person 
providing prepaid telephone calling service to the public using its own, 
or a resold, telecommunications network or voice over Internet 
technology. 
(h) WIRELESS TELECOMMUNICATIONS SERVICE- The term means 
the offering of Wireless Telecommunications for a fee directly to the 
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public, or to such classes of users as to be effectively available directly 
to the public, regardless of the facilities used. 
SECTION 3. Required Disclosures Of Prepaid Telephone Calling Cards Or 
Services. 
(a) Rulemaking- Not later than 180 days after the date of the enactment of this 
Act, the Commission shall prescribe regulations that require every prepaid 
telephone calling service provider and prepaid telephone calling card 
distributor to disclose, with respect to the terms and conditions of a prepaid 
telephone calling card or service provided, sold, resold, issued, or distributed 
by such service provider or distributor, as the case may be, the following: 
1. The number of calling units or minutes of domestic calls provided by such 
card or service at the time of purchase; or the peso value of such card or 
service and the domestic interstate rate per minute provided by such card 
or service at the time of purchase. 
2. The applicable calling unit or per minute rates for all international 
preferred destinations served by such card or service. 
3. The applicable per minute rates for all individual international destinations 
served by such card or service. 
4. That the rates described in paragraph (3) may be obtained through the 
prepaid telephone calling card provider’s toll-free customer service 
number or Inteniet website. 
5. All terms and conditions pertaining to the use of such card or service, 
including the following: 
i. The maximum amount and frequency of all fees. 
ii. Applicable policies relating to refund, recharge, decrement, and 
expiration. 
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iii. Limitations, if any, on the use or period of time for which the 
displayed, promoted, or advertised minutes or rates will be 
available to the customer. 
6. The name and address of such service provider. 
7. A toll-free telephone number to contact the customer service department 
of such service provider and the hours of service of such customer service 
department. 
(b) Clear and Conspicuous Disclosure of Required Information and Language 
Requirements- The regulations prescribed under subsection (a) shall include 
requirements as follows: 
1. CARDS- In the case of a prepaid telephone calling card, the disclosures 
described in subsection (a) (other than paragraph (3) of such subsection) 
shall be printed in plain English or Filipino in a clear and conspicuous 
location on each prepaid telephone calling card or the packaging of such 
card so that such disclosures are plainly visible to a consumer at the point 
of sale. 
2. ONLINE SERVICES- In the case of a prepaid telephone calling service 
that consumers access and purchase via the Internet, the disclosures 
described in subsection (a) (other than paragraph (4) of such subsection) 
shall be displayed in plain English or Filipino in a clear and conspicuous 
location on the Internet site from which the consumer purchases such 
service. 
3. ADVERTISING AND OTHER PROMOTIONAL MATERIAL- The 
disclosures described in subsection (a) (other than paragraph (3) of such 
subsection) shall be printed on any advertising for the prepaid telephone 
calling card or service, including on any signs for display by retail 
merchants, any promotional emails, any Internet site used to promote such 
card or service, and on any other promotional material. 
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(c) Additional Regulations- The Commission may, subject to existing laws and 
regulation, prescribe such other regulations as the Commission determines are 
necessary to protect consumers of prepaid telephone calling cards and 
services. 
SECTION 4. Prohibited Acts. 
(a) Prepaid Telephone Calling Service Provider- It shall be unlawful for any 
prepaid telephone calling service provider to do any of the following: 
1. UNDISCLOSED FEES AND CHARGES- To assess or deduct from 
the balance of a prepaid telephone calling card any fee or other amount 
for use of the prepaid telephone calling service, except-- 
i. the per minute rate or value for each particular destination called by 
the consumer; and 
ii. fees that are disclosed as required by regulations prescribed under 
section 3. 
2. MINUTES AND RATES AS PROMOTED AND ADVERTISED- 
With respect to a prepaid telephone calling card for a service of the 
prepaid telephone calling service provider, to provide fewer minutes 
than the number of minutes promoted or advertised, or to charge a 
higher per minute rate to a specific destination than the per minute rate 
to that specific destination promoted or advertised, on-- 
i. the prepaid telephone calling card; 
ii. any point-of-sale material relating to the card; or 
iii. other advertising related to the card or service. 
3. MINUTES ANNOUNCED, PROMOTED, AND ADVERTISED 
THROUGH VOICE PROMPTS- To provide fewer minutes than the 
number of minutes announced, promoted, or advertised through any 
voice prompt given by the prepaid telephone calling service provider 
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to a consumer at the time the consumer places a call to a dialed 
destination with a prepaid telephone calling card or service. 
4. EXPIRATION- Unless a different expiration date is clearly disclosed 
pursuant to the disclosure requirements of regulations prescribed under 
section 3, to provide, sell, resell, issue, or distribute a prepaid 
telephone calling card or service that expires-- 
i. before the date that is 1 year after the date on which such card or 
service is first used; or 
ii. in the case of a prepaid telephone calling card or service that permits 
a consumer to purchase additional usage minutes or add additional 
value to the card or service, before the date that is 1 year after the 
date on which the consumer last purchased additional usage minutes 
or added additional value to the card or service. 
5. CHARGES FOR UNCONNECTED CALLS- To assess any fee or 
charge for any unconnected telephone call. For purposes of this 
paragraph, a telephone call shall not be considered connected if the 
person placing the call receives a busy signal or if the call is 
unanswered. 
(b) Prepaid Telephone Calling Card Distributor- It shall be unlawful for any 
prepaid telephone calling card distributor to do any of the following: 
1. UNDISCLOSED FEES AND CHARGES- To assess or deduct from 
the balance of a prepaid telephone calling card any fee or other amount 
for use of the prepaid telephone calliig service, except- 
i. the per minute rate or value for each particular destination 
called by the consumer; and 
ii. fees that are disclosed as required by regulations prescribed 
under section 3. 
2. MINUTES AS PROMOTED AND ADVERTISED- To sell, resell, 
issue, or distribute any prepaid telephone calling card that the 


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distributor knows provides fewer minutes than the number of minutes 
promoted or advertised, or a higher per minute rate to a specific 
destination than the per minute rate to that specific destination 
promoted or advertised, on-- 
i. the prepaid telephone calling card; 
ii. any point of sale material relating to the card; or 
iii. other advertising relating to the card or service. 
3. MINUTES ANNOUNCED, PROMOTED, OR ADVERTISED 
THROUGH VOICE PROMPTS- To sell, resell, issue, or distribute a 
prepaid telephone calling card that such distributor knows provides 
fewer minutes than the number of minutes announced, promoted, or 
advertised through any voice prompt given to a consumer at the time 
the consumer places a call to a dialed destination with the prepaid 
telephone calling card or service. 
4. EXPIRATION- Unless a different expiration date is clearly disclosed 
pursuant to the disclosure requirements of regulations prescribed under 
section 3, to provide, sell, resell, issue, or distribute a prepaid 
telephone calling card that expires- 
i. before the date that is 1 year after the date on which such card 
or service is first used; or 
ii. in the case of a prepaid telephone calling card or service that 
permits a consumer to purchase additional usage minutes or 
add additional value to the card or service, before the date that 
is 1 year after the date on which the consumer last purchased 
additional usage minutes or added additional value to the card 
or service. 
(c) Liability- A prepaid telephone calling service provider or a prepaid telephone 
calling card distributor may not avoid liability under this section by stating 
that the displayed, announced, promoted, or advertised minutes, or the per 
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minute rate to a specific destination, are subject to fees or charges, or by 
utilizing other disclaimers or limitations. 
SECTION 5. Penalties. - 
(a) Any person who shall violate any provision of Section 4 of this Act shall upon 
conviction, be subject to a fme of not less than One thousand pesos 
(P1,OOO.OO) 
but not more than Ten thousand pesos (P10,OOO.OO) 
or 
imprisonment of not less than two (2) months but not more than one (1) year, 
or both upon the discretion of the court. 
If the offender is an alien, he shall be deported after service of sentence 
and payment of fine without further deportation proceedings. 
@) In case the offender is a naturalized citizen, he shall, in addition to the penalty 
prescribed herein, suffer the penalty of cancellation of his naturalization 
certificate and its registration in the civil register and immediate deportation 
after service of sentence and payment of fine. 
(c) Any director, officer or agent of a corporation who shall authorize, order or 
perform any of the acts or practices constituting in whole or in part a violation 
of Article 18, and who has knowledge or notice of noncompliance received by 
the corporation from the concerned department, shall be subject to penalties to 
which that corporation may be subject. 
In case the violation is committed by, or in the interest of a foreign juridical 
person duly licensed to engage in business in the Philippines, such license to 
engage in business in the Philippines shall immediately be revoked. 
SECTION 6. Authority ofthe Commission. The Commission shall enforce this 
Act in the same manner and by the same means as though all applicable terms and 
provisions of the Public Telecommunications Policy Act of the Philippines were 
incorporated into and made part hereof. 
The Commission may prescribe regulations to carry out this Act. 
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SECTION 7. Separabilily Clause. - If any provision, or part thereof, is held 
invalid or unconstitutional, the remainder of the law or the provision not otherwise 
affected shall remain valid and subsisting. 
SECTION 8. Repealing Clause. - Any law, presidential decree or issuance, 
executive order, letter of instruction, administrative order, rule or regulation contrary to, 
or inconsistent with the provisions of this Act is hereby repealed, modified or amended 
accordingly. 
SECTION 9. Efecectivity Clause. - This Act shall take effect fifteen (15) days 
after its publication in at least two (2) newspapers of general circulation. 
Approved. 
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