SEVENTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
Second Regular Session 
)
SENATE
S.B.No. 1518
- i i0ffifp t}[ IIh’ £ '  'ifl.Trji
*17 
JUL26 P2S2
RECLI'i’t'j iil.
INTRODUCED BY: SENATOR EMMANUEL D. PACQUIAO
AN ACT
AMENDING ARTICLES 116 AND 164 OF REPUBLIC ACT NO. 7394 OTHERW ISE 
KNOWN AS THE CONSUMER ACT OF THE PHILIPPINES
EXPLANATORY NOTE
The high level of competition in the market has forced some companies to resort to 
deceptive advertising to attract more customers. In the end, consumers are deceived and 
deprived of factual infonnation needed to make intelligent choices.
Despite the passage of R.A. 7394 or the Consumer Act of the Philippines, the public 
is still not entirely safe from all the false, deceptive and misleading advertisements. Empty 
words and false promises of unscrupulous advertisers and profit-driven companies cause 
damages, not only to the consumers, but to the whole industry as well.
The State must uphold the people’s right to know. The public must at all times be 
protected from any unfounded and fraudulent claims. Hence, this bill seeks to improve the 
advertising industry by requiring all advertisers to maintain a system that allows the public to 
validate the truthfulness of their claims. Moreover, it seeks to increase the imposable 
administrative fines to deter large-scale perpetrators against deceptive and unethical 
advertising practices.
In view of the foregoing, approval of this bill is earnestly sought.
EMMANUE
CQUIAO


SEVENTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE IMHLLPriNES 
)
Second Regular Session 
)
SENATE
S.B. No. 1518
‘ 
of tl'f
*17 
JUL26 P2S2
RECtlVtuti'i;
INTRODUCED BY: SENATOR EMMANUEL D. PACQUIAO
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AN ACT
AMENDING ARTICLES 116 AND 164 OF REPUBLIC ACT NO. 7394 
OTHERWISE KNOWN AS THE CONSUMER ACT OF THE PHILIPPINES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
Section 1. Article 110 of Republic Act No. 7394 is hereby amended to read as follows:
"Article 140. False, Deceptive or Misleading Advertisement: - "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, online advertisements, 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 consequences 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 AND MANUFACTURERS SHALL BE 
REQUIRED TO SUBMIT TO THE SECRETARY OF THE 
DEPARTMENT OF TRADE AND INDUSTRY (DTI), WITH 
RESPECT 
TO 
ANY 
ADVERTISEMENT 
UPON 
THE 
COMPLAINT 
OF 
THE 
CONSUMERS, 
SUCH 
TESTS,
STI DIES, RESEARCHES OR SURVEYS INCLUDING


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TESTIMONIALS AND ENDORSEMENTS THEY HAD IN 
THEIR POSSESSION PRIOR TO THE TIME CLAIMS MADE 
AND WHICH PURPORT TO SUBSTANTIATE ANY CLAIMS, 
STATEMENTS OR REPRESENTATIONS MADE 
IN THE 
ADVERTISEMENT 
REGARDING 
THE 
SAFETY, 
PERFORMANCE, EFFICACY, QUALITY OR COMPETITIVE 
PRICE OF THE PRODUCT ADVERTISED.
"THE CLAIMS, STAl EMENTS 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 PROPIO 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 MAY BE PRIVILEGED, 
THE 
INFORMATION 
OBTAINED 
SHALL 
BE 
MADE 
AVAILABLE TO THE PUBLIC ON THE BASES OF THE 
FOLLOWING CONSIDERATIONS:
(a) 
PUBLIC DISCLOSURE CAN ASSIST CONSUMERS 
IN MAKING A RATIONAL CHOICE AMONG COMPETING 
CLAIMS;
(b) 
THE 
NEED 
OF THE 
PUBLIC 
FOR 
USEFUL 
INFORMATION IS NOT BEING MET VOLUNTARILY BY 
ADVERTISERS;
(c) 
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 Republic Act No. 7394 is hereby amended to read as 
follows:
"Article 164. Sanctions. - After investigation, any of the following 
administrative penalties may be 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 aets that respondent shall cease and desist 
from and shall require him to submit a report of compliance therewith 
within a reasonable time;


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"(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:
1) XXX
2) XXX
3) XXX
4) XXX
5) XXX
6) THE IMPOSITION OF ADMINISTRATIVE FINES IN 
SUCH AMOUNTS AS MAY BE DEEMED REASONABLE 
BY H IE  SECIH::TARY OF THE DEPARTMENT OF 
TRADE AND INDUSTRY, 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 
VIOLATION."
Section 3. Effectivity. This Act shall take effect fifteen (15) days after its publication in two (2) 
national newspapers of general circulation. The publication shall not be later than seven (7) days 
after the approval hereof
Approved,