HOUSEOF REPRESENTATIVES
RECINED
Republic of the Philippines 10 AUG 2016
HOUSE OF REPRESENTATIVES
Quezon City, Philippines
17™ CONGRESS
First Regular Session
829 ;
HOUSE BILL NO | _. pre NUNIT
sees $5 4A BEX-SERVICE
INTRODUCED BY REP. EMMANUEL A. BILLONES- =

DATE

AN ACT
PENALIZING FALSE OR FRAUDULENT ADVERTISING AND FOR OTHER
PURPOSES

EXPLANATORY NOTE

Many companies whose main aim is profit have resorted to false or fraudulent
advertising. They use misleading information, distort or omit important facts, and
tried to conceal hidden costs just to convince consumers to purchase a product or
acquire service

They make use of the radio, newspapers, televisions, and other media fora to
deceptively promote their products or services.

This type of marketing leads consumers to make uninformed decisions as they are
not wholly told of the truth but are guaranteed of fabulous promises. Promises that
made the consumers believed that all that glitters is gold.

May times in the past, consumers had immensely suffered from deceptive
advertising like the failed pre-need plans, the unfinished subdivisions and
condominiums, the pyramiding and similar deceptive schemes. Today, victims are
still reeling from the effects of financial woes brought about by these fraudsters who
have enriched themselves

Worst, many of them are still out there somewhere hiding or out on bail courtesy of
our Constitution that says they are presumed innocent until proven guilty beyond
reasonable doubt.

Hence, this bill seeks to stop the propagation of false or fraudulent advertising of
products, goods, and services and provides punishment to the culprits whose only
aim is to make profit by way of deception

In view of the foregoing, immediate approval of this bill is earnestly sought

dQ M
Lae SO

Representative
1* District-Capiz


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines
17™ CONGRESS
First Regular Session

2829

HOUSE BILL NO.

INTRODUCED BY REP. EMMANUEL A. BILLONES

AN ACT
PENALIZING FALSE OR FRAUDULENT ADVERTISING AND FOR OTHER
PURPOSES

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

SECTION 1. False or Fraudulent Advertising, Prohibited. — \t shall be
unlawful for any person, firm or corporation to advertise or promote his or its
Products, goods and services, underwrite any obligation, such as pre-need
educational, medical or other related services, through newspapers, magazines,
radio, television, internet or other means accessible to the public view, such as
billboards, flyers, newsletters, leaflets, etc. when such products, goods, services or
Pre-need benefit are inexistent, in whole or in part, or are incapable of being
Produced, delivered, performed, paid or discharged, and which false or fraudulent
advertising shall have induced another to part with his money o valuable
consideration to buy, acquire or avail of such products, goods, services or pre-need
benefits.

SEC. 2. Prima Facie Evidence of False or Fraudulent Advertising. - The
failure or inability of such person, firm or corporation to fully or completely produce,
deliver, perform, pay or discharge the obligation, products, goods or services so
Promoted or advertised, within a period of ninety (90) days from date of written
demand from the person defrauded shall be prima facie evidence of a violation of
this Act

SEC. 3. Liability under this Act, Distinction other Crimes Committed. —
The liability of persons found violating this Act shall be distinct from and in addition to
the penalties that such person, firm or corporation shall incur under the Revised
Penal Code and other special laws: Provided, however, Provided, however, That the
Prosecution for violation of this Act shall proceed independently and regardless of
the status, stage or result of the prosecution under the Revised Penal Code or other
special laws: Provided, further, That no filing fee shall be imposed for the
commencement of the criminal charge under this Act

SEC. 4. Liability, if Violator is a Corporation or Unregistered Entity. — if
the violation under this Act is committed by a corporation, partnership or other
unregistered entity, the directors, president, treasurer, general manager or one
Performing similar functions and other corporate officers or persons responsible for
such false or fraudulent advertisement shall be personally liable for such violation


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines
17™ CONGRESS
First Regular Session

2829

HOUSE BILL NO.

INTRODUCED BY REP. EMMANUEL A. BILLONES

AN ACT
PENALIZING FALSE OR FRAUDULENT ADVERTISING AND FOR OTHER
PURPOSES

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

SECTION 1. False or Fraudulent Advertising, Prohibited. — \t shall be
unlawful for any person, firm or corporation to advertise or promote his or its
products, goods and services, underwrite any obligation, such as pre-need
educational, medical or other related services, through newspapers, magazines,
radio, television, internet or other means accessible to the public view, such as
billboards, flyers, newsletters, leaflets, etc. when such products, goods, services or
Pre-need benefit are inexistent, in whole or in part, or are incapable of being
produced, delivered, performed, paid or discharged, and which false or fraudulent
advertising shall have induced another to part with his money o valuable
consideration to buy, acquire or avail of such products, goods, services or pre-need
benefits.

SEC. 2. Prima Facie Evidence of False or Fraudulent Advertising. - The
failure or inability of such person, firm or corporation to fully or completely produce,
deliver, perform, pay or discharge the obligation, products, goods or services so
promoted or advertised, within a period of ninety (90) days from date of written
demand from the person defrauded shall be prima facie evidence of a violation of
this Act.

SEC. 3. Liability under this Act, Distinction other Crimes Committed. -
The liability of persons found violating this Act shall be distinct from and in addition to
the penalties that such person, firm or corporation shall incur under the Revised
Penal Code and other special laws: Provided, however, Provided, however, That the
prosecution for violation of this Act shall proceed independently and regardless of
the status, stage or result of the prosecution under the Revised Penal Code or other
special laws: Provided, further, That no filing fee shall be imposed for the
commencement of the criminal charge under this Act.

SEC. 4. Liability, if Violator is a Corporation or Unregistered Entity. — If
the violation under this Act is committed by a corporation, partnership or other
unregistered entity, the directors, president, treasurer, general manager or one
performing similar functions and other corporate officers or persons responsible for
Such false or fraudulent advertisement shall be personally liable for such violation.


SEC. 5. Multiple Liability. - Any person found violation this Act shall be
charged and convicted with as many counts of such violations as there are victims
who have been defrauded by reason of such false or fraudulent advertising

SEC. 6. Penalty. - Any person found liable for violating this Act shall be
sentenced to an imprisonment of not less than one (1) year but not exceeding six (6)
years or a fine of not less than twice the value of the amount defrauded: Provided,
That in case the person convicted fails or refuses to pay the fine, he shall suffer
subsidiary imprisonment at the rate of P200 per day but not exceeding six (6) years

SEC. 7. Effectivity. - This Act shall take effect fifteen (15) days after
publication in the Official Gazette and in two (2) newspapers of general circulation.

Approved,