EIGHTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE 
S. No. 7 7 9
■19 ja  25 All -W
REC.. 
_____
Introduced by SENATOR LEILA M. DE LIMA
AN ACI
PROTECTING CONSUMERS AND USERS AGAINST FORCED E-BILLING, 
ADDING FOR THIS PURPOSE A NEW PROVISION AND AMENDING 
CERTAIN PROVISIONS OF REPUBLIC ACI NO. 7394, OTFIERWISE 
KNOWN AS THE CONSUMER ACT OF THE PHILIPPINES, AND 
PROVIDING PENALTIES FOR VIOLATIONS THEREOF
EXPLANATORY NOTE
Article XVI, Section 9 of the 1987 Constitution states that, “[t]he State shall 
protect consumers from trade malpractices and from substandard hazardous 
products.”
Article II of Republic Act No. 7394, otherwise known as the Consumer Act of 
the Philippines, declares that, “[i]t is the policy of the state to protect the interests of 
the consumer, promote his general welfare and to establish standards of conduct for 
business and industry. Towards this end, the State shall implement measures to 
achieve the following objectives;
0?) protection against deceptive, unfair, and unconscionable sales, acts 
and practices
(c) provision of information and education to facilitate sound choice and 
the proper exercise of rights by the consumer; and
(d) provision of adequate rights and means of redress.”
According to a news report, customers who chose to be billed in the traditional 
way are required to pay for the release of their paper bill usually at P50 per month for 
certain telecommunication companies* 1. It was also mentioned that going paperless 
contributes to a greener environment due to the implication that less paper usage
PLOT Home. “PLOT Paperless billing". Retrieved from httDs://Dldthome.com/paDerless-billinq..
1


means less cutting of trees. It was also reported that the Energy Regulatory 
Commission (ERC), which has the mandate to ensure customer choice and penalize 
abuse of market power in the electric industry2 3 4, laid down their e-billing rules stating 
that the Commission aims “to reduce administrative costs caused by traditional 
billing and methods.”, and said rules encompass monthly billing statements and 
other consumer-related bills.3
Going paperless seems to be the answer to the plight of our society in solving 
en\ironmental problems. However, the presentation of the e-billing scheme as a 
leading pro-emironment advocacy is misleading. Certain scientific studies show that 
the paperless campaign contributes to increase in carbon emissions.4 At first glance, 
digital media does give the good impression of it being more sustainable. Using 
electronic gadgets like phones and laptops can be utilized in multiple uses and 
therefore making it a renewable resource. However, one must take into consideration 
that manufacturing of electronic gadgets leaves carbon footprint and further needs 
energy to function. 
This becomes a growing concern as discarded electronics 
continues to become the fastest-growing waste nowadays, especially in de\eloping 
countries.”5
In addition, an article from Environmental LEADER, a leading trade 
publication that publishes energy, environmental and sustainability new's, reported 
that “[i]t is increasingly clear that electronic communication and in particular the 
energy requirements of the increasing worldwide network of servers which are 
necessary to store all the information needed for immediate access, has a significant 
and increasing carbon footprint. Electronic document storage must be recognized as 
delivering efficiency but not sustainability.” It further stated that computers may 
consume up to 50% of household energy requirements in the next 10 years.6 * To back 
this up, according to Greenbiz, “[tjhere is a growing recognition that digital media 
technology uses significant amounts of energ>r from coal-fired power plants making a 
significant contribution to global warming.”^
2 E n e rg y  R e g u la to ry  C o m m is s io n . M a n d a te , M is s io n  a n d  V is io n . R e trie v e d  fro m  h ttp ://w w w .e rc .Q 0 v .p h /C o n te n tP a q e /1 7 .
3 R iv e ra , D a n e s s a . 1 8  J u n e  2 0 1 7 . P h ilip p in e  S ta r. " E R C  is s u e s  e -b illin g  R u le s .". R e trie v e d  fro m  
h ttp s ://w w w .p h ils ta r .c o m /b u s in e s s /2 0 1 7 /0 6 /1 7 /1 7 1 0 9 5 7 /e r c -is s u e s - e -b illin g - r u le s .
4 E n v iro n m e n ta l L e a d e r. 12 A u g u s t 2 0 1 0 . “Online Billing May Not Be as Sustainable as You Think". R e trie v e d  fro m  
h ttp s ://w w w .e n v ir o n m e n ta lle a d e r .e o m /2010/08/o n lin e -b illin a - m a v - n o t-b e -a s - s u s ta in a b le - a s -v o u - th in k /.
5 T h e  G u a rd ia n . “Is digital really greener than paper?". 2 4  F e b ru a ry  2 0 1 4 . R e trie v e d  fro m  
h ttp s ://w w w .th e g u a rd ia n .c o m /s u s ta in a b le -b u s in e s s /d ig ita l-re a lly -g re e n e r-p a p e r-m a rk e tin g
6 Ibid
1 C a rli, D o n . “Going Paperless: Not as Green as You May Think. G re e n B iz ” . 1 4  A p ril 2 0 1 0 . R e trie v e d  fro m  
h ttp s ://w w w .g re e n b iz .e o m /b lo g /2 0 1 0 /0 4 /1 4 /g o in g -p a p e rle s s -n o t-g re e n -a n d -tre e -frie n d ly -y o u -th in k


Analysts opine that “[u]ntil more research has been done on the life-cycle and 
environmental impact of electronics, pitting paper and e-media against each other is 
somewhat futile. It doesn’t need to be an ‘either or’ situation. There is a place for 
both paper and e-media.”8 9
Surveys revealed that consumers still opt to print their bills at home and in 
return defeats again the very purpose of initiating payments through e-billing. 9 With 
the above-mentioned effects of electronic billing, requiring consumers to move from 
paper to electronic billing becomes merely a ploy of the service pro\dders to shift the 
burden of pa>ing the costs of printing and mailing the billing statements to the 
consumers and is not entirely about the preser\ration and conservation of the 
environment as they primarily claim.
The consumers thus have the right to be properly informed of the full details 
of the transaction and for them to be charged a premium cost for this information is 
a violation of this right which can ultimately lead to fraudulent behavior on the part 
of the sellers. There is a need to improve existing legislation, especially R.A. No. 
7394, to strengthen and reinforce its fundamental purposes of shielding the interests 
of the consumers, promoting their general welfare and establishing ethical standards 
of conduct for business and industry.
Approval of this measure is earnestly sought.
IJEILA M. DE LIMA
8 Supra Ibid 6
9 Reibe, Phil. 31 July 2013. TwoSides website. “Most U.S. Consumers Want the Option to receive Paper Bills and Statements." 
Retrieved from httD://www.twosidesna.orQ/US/Most-US-Consumers-Want-the-Option-to-Receive-Paper-Biils-and-Statements.
3


EIGHTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
S. No. 7 7 9
c l :l)c BH’ u  ta ip
•19 JUL 25 All ;09
R E '.c. 
t i . V
Introduced by SENATOR LEILA M. DE LIMA
AN ACT
PROTECTING CONSUMERS AND USERS AGAINST FORCED E-BILLING, 
ADDING FOR THIS PURPOSE A NEW PROVISION AND AMENDING 
CERTAIN PROVISIONS OF REPUBLIC ACT NO. 7394, OTIIERWTSE 
KNOM^N AS THE CONSUMER ACT OF THE PHILIPPINES, AND 
PROVIDING PENALTIES FOR VIOIWTIONS THEREOF
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
1 
Section i. -  A new Article 51-A is hereby inserted in Republic Act No. 7394,
2 
otherwise known as the Consumer Act of the Philippines, to read as follows:
3 
“SEC. 51-A. BILLING STATEMENTS AND OTHER TRANSACTION
4 
DOCUMENTS MAY BE SENT IN PRINTED OR ELECTRONIC
5 
FORM AT THE OPTION OF, AND WITHOUT ANY ADDITIONAL
6 
COST, TO CONSUMERS. THE CONSUMERS’ RIGHT TO SELECT
7 
THE MODE IN WHICH THEY RECEIVE THEIR BILLING
8 
STATEMENTS AND OTHER TRANSACTION DOCUMENTS MAY
9 
NOT BE CONDITIONED ON THE VALUE OF THE PRODUCTS OR
10 
SERVICES PROVIDED IN THE TRANSACTION."
11 
Sec. 2. Repealing Clause. - All laws, executive orders, presidential decrees,
12 
presidential proclamations, letters of implementation, rules and regulations or parts
13 
thereof inconsistent with the provisions of this Act are hereby repealed or modified
14 
accordingly.


1 
Sec. 3. Separability Clause. - If any provision of this Act is declared invalid or
2 
unconstitutional, the provisions not affected thereby shall continue to be in full force
3 
and effect.
4 
Sec. 4. Effectivity. - This Act shall take effect upon its approval fifteen (15)
5 
days following its publication in the Official Gazette or in two (2) newspapers of
6 
general circulation in the Philippines.
Approved,