OF 
PIN 
Advertising wields an im 
it a communication tool whic 
mechanism of control. Takin 
advertising, there has to be 
ensure truth in advertising, u 
unfounded and fraudulent claims. 
ntemporary society. Not only is 
r-s together but also a viable 
and impact of modern-day 
ch shall enable the State to 
now, and protect them from 
Republic Act 7394 (Th 
ines) was enacted primarily 
to protect the consumers against 
isleading advertisements. 
Unfortunately, the law fails 
substantiation and documentation of 
advertising claims. As a result, the 
public continue to fall prey to the empty 
words and promises of unscrupulou 
This bill seeks to i 
ements by requiring all 
, performance, efficiency, 
ata shall, upon demand, 
er lists or other financial 
seeks to increase the 
ors of deceptive and 
advertisers to maintain a file 
quality or comparative price 
be made available to the pu 
matters which may be con 
im posa ble administrative 
unethical advertising practices. 
In view of the foreg 
measure is earnestly 
recommended. 
EJERCITO ESTRADA 
I 
Senator 


t.t 
I 
^i' 
1 
$ ., 
I 
-, - 
THIRTEENTH CONGRESS OF THE 
1 
REPUBLIC OF THE PHILIPPINE 
1 
First Regular Session 
1 
SENAT 
Introduced by Senator Jinggoy Ejerrcito Estrada 
AN ACT 
AMENDING ARTICLES 116 AND 164 OF ~
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~
L
ACT NO. 7394 OTHERWISE 
KNOWN AS THE CONSUMER ACT OF THE PHILPPINES 
Be if enacfed by fhe Senafe and fhe House of Representatives of the Philippines in 
Congress assembled: 
SECTION I. 
Article 11 0 of R.A. 7394 is hereby amended to read as follows: 
"Article 140. false, Deceptive or  in^ Adveffisemenf. - 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. 
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 consequenoes 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 


PRIOR TO THE TIME CLAIMS MADE AND W ICH PURPORT TO 
SUBSTANTIATE ANY CLAIMS, STATEMENTS OR ~EP~ESENTATfONS 
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 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 PRIVILEGE, THE INFORMATION OBTAINED SHALL BE 
MADE AVAILABLE TO THE PUBLIC ON THE BASES OF THE FOLLOWING 
CONS ID E RATIONS: 
(A)THAT PUBLIC DISCLOSE 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 R.A. 7394 is hereby amended to read as follows: 
"Article 164. 
. - After investigation, any of the following 
administrative penalties may by 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: 
I) 
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 
VI 0 LATlO N . 
SEC. 3. €#ectivity - This Act shall take effect fifteen (15) days after its 
complete publication in the Official Gazette or in a newspaper of general 
circulation. 
Approved,