Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

[2 DATEMARY 1 maf

2, BY

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EIGHTEENTH CONGRESS
Second Regular Session

Cemvey SS
HOUSE BILL NO. 8826

Introduced by HON. JOY MYRA S. TAMBUNTING

EXPLANATORY NOTE

We currently live in a digital era wherein jobs, businesses, even schools, requires telecom services
and internet services. Considering the importance of this service, this measure seeks to protect
consumers from unauthorized services and charges which consumes load credits of subscribers
without notice. This has been a rampant problem from prepaid subscribers, preventing them from
getting the full value of the load credits they paid for. This measure also prohibits the imposition
of an expiration on the validity of unused load credits and billing subscribers’ accounts for
unauthorized value-added services which has the effect of reducing the prepaid credit or
increasing the postpaid amount due from a subscriber. Under this measure violators shall be
‘subject to a fine ranging from one hundred thousand pesos (P100,000.00) to one million pesos
(P1,000,000.00).

On behalf of the people of Parafiaque City’s Second District, and for the common good of the

Filipino people, the approval of the said measure is earnestly sought.
RAS, 1 (uli

District, Parafiaque City

fee? aes
f fa RECEIVED 2)

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— Pat eS



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No. _8824
Introduced by HON, JOY MYRA S. TAMBUNTING

AN ACT
PROTECTING TELECOMMUNICATION SUBSCRIBERS AGAINST UNAUTHORIZED
SERVICES AND CONSUMPTION OF LOAD CREDITS

Be it enacted by the Senate and the House of Representatives of the Congress of the Philippines
in session assembled:

SECTION 1, Short Title. — This Act shall be known as the “Telecommunication Subscriber's
Protection Act”.

SEC. 2. Declaration of Policy. ~ The State recognizes the vital role of telecommunication in
economic growth and development. Towards this end, the State shall implement measures to
achieve the following objectives:

a) Safeguard telecommunication subscribers against deceptive, unfair and unconscionable
trade acts and practices;

b) Provision for information, and education to facilitate sound choice and the proper exercise
of rights by the consumer; and

©) Provision for adequate rights and means of redress for subscribers.

SEC, 3. Definition of Terms. — As used in this Act, the term:

a) Account refers to the financial credit of a subscriber;

b) Load creait refers to the monetary value or the consumable amount loaded to a mobile or
landline phone via pre-paid cards or electronic transfers that enable a consumer to use
telecommunication or value-added services;

©) Pre-paid refers to the type of mobile or landline phone account that requires its owners
to purchase load credit before services are used;

) Pre-paid call and text card refers to a card with corresponding peso value that has to be
purchased to enable a subscriber to use telecommunication services;

) Unauthorized service refers to a service for which a subscriber did not provide expressed
and informed consent; and


f) Unsought services refers to services which include ringing tones, polyphonic tones, video
and picture messages, etc., that a subscriber did not purchase under his postpaid or
prepaid account but is nonetheless sent or transmitted to him without permission.

SEC. 4. Obligation to Provide an Electronic Receipt. - Every telecommunication company
shall in form its subscribers via text message on the deduction to their load credit for calls, data
and value-added service usage.

SEC. 5. Prohibited Acts. — An entity issuing load credit in exchange for telecommunication or
value-added services shall be liable for any of the following acts:

a) Imposition of an expiration period on the validity of unused load credit;

b) Forfeiture of load credit stored on an active pre-paid phone account via pre-paid call and
text card or electronic transfer;

Refusal to give a refund to any pre-paid subscriber whose load credit was forfeited without
any valid cause;

Enrolling subscribers to unauthorized value-added services without the subscriber's
consent;

Billing subscribers’ accounts for unauthorized value-added services which has the effect
of reducing the prepaid credit or increasing the postpaid amount due from a subscriber;
and

f) Failure to provide electronic receipt as provided under Section 4.

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e)

SEC. 6. Penalties. - Any director, officer, employee or agent of a telecommunication company
providing telecommunication services who shall commit any of the acts under Section 5 hereof,
shall, upon conviction, be subject to the penalty of a fine of not less than One hundred thousand
pesos (P 100,000.00) but not to exceed One million pesos (P 1,000,000.00).

If the violation was committed by or in the interest of a juridical person duly licensed to engage
in business in the Philippines, the following penalty shall be imposed:

a) First Offense — Fine of Five hundred thousand pesos (P 500,000.00);

b) Second Offense — Fine of One million pesos (P 1,000,000.00) and suspension of license
to engage in business for a period of thirty (30) days; and

c) Third Offense — Fine of Two million pesos (P 2,000,000.00) and immediate revocation of
license to engage in business.

SEC. 7. Disposition of Penalties. — All penalties under this Act shall be solely and exclusively
earmarked and used for the following:

a) Development and maintenance of a long-term strategic national development plan for the
telecommunication industry;

b) Providing adequate and efficient telecommunication facilities m unserved and underserved
areas; and

©) Monitoring, reporting and enforcement of compliance with mobile service regulations.


SEC. 8. Information Dissemination. — Every telecommunication company, in coordination
with the National Telecommunications Commission (TC), shall ensure the proper and adequate
information dissemination of the contents and benefits of this Act to the general public, especially
to its intended beneficiaries.

‘SEC. 9. Implementing Rules and Regulations. — Within ninety (90) days from the approval
of this Act, the NTC shall issue the necessary rules and regulations for its effective
implementation.

SEC. 10. Separability Clause, - Should any part of this Act be declared unconstitutional or
invalid, other provisions hereof that are not affected thereby shall continue to be in full force and
effect.

SEC, 11, Repealing clause. ~ All laws, decrees, executive orders, proclamations, rules and
regulations, and issuances, or parts thereof which are inconsistent with the provisions of this Act,
are hereby repealed, amended or modified accordingly.

SEC. 12. Effectivity. — This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in any newspaper of general circulation.

Approved,