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FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
8 
JUL -2 KQ :1 Q 
Second Regular Session 
) 
Introduced by Senator Rimon Bong Revilla, Jr. 
EXPLANATORY NOTE 
Article 2 of Republic Act No. 7394, otherwise known as the Consumer Act of the 
Philippines, provides that “it is the policy of the State to protect the interest of the 
consumer, promote his general welfare and to establish standards of conduct for business 
and industry.” 
Advertisement in any form, can educate the public about services available to 
them and the provider of such. However, public should be protected against false and 
misleading advertisement. False advertising is defined in the Merriam-Webster 
dictionary, as the crime or tort of publishing, broadcasting, or otherwise publicly 
distributing an advertisement that contains an untrue, misleading, or deceptive 
representation or statement which was made knowingly or recklessly and with the intent 
to promote the sale of property, goods, or services to the public. 
Hence, the passage of the bill is earnestly sought 


FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
1 
Introduced by Senator Ramon Bong Revilla, Jr. 
AN ACT 
PENALIZING FALSE OR FRAUDULENT ADVERTISING AND FOR OTHER 
PURPOSES 
Be it eiiucted by the Senute und the Home of Representutives of the Philippines in 
Congress ussembled: 
Section 1. Declaration qf Policy - It 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 and to protect the consumers against deceptive, unfair 
and unconscionable sales acts and practices. 
Section 2. False or Fraudulent Advertising, Prohibited - It 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 but not limited to 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 benefits 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 or valuable consideration to buy, acquire or avail of such products, 
goods, services or pre-need benefits. 
Section 3. Prinm Facie Evidence of False or Fraudulent Advertking. - The 
failure or inability of such person, firm or corporation to hlly 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. 
Section 4. Liability under this Act, Distinct from other Crimes Conmitted. - 
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, 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. 
1 


Section 5. Liabi?ity, ifsiolrrtor is n Cuipuratiun 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 oficers or persons responsible for such false or fraudulent 
advertisement shall be personally liable for such violation. 
Section 6. Multiple Liability. - Any person found violating this Act shall be 
charged and convicted with as many counts of such violations as there are victim who 
have been defrauded by reason of such false or fraudulent advertising. 
Section 7. Penalty - Any person found liable for violating this Act shall be 
sentenced to an imprisonment of not less than one (1) year hut 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. 
Section 8. E?fectivity - This Act shall take effect fifteen (15) days after 
publication in a newspaper of general circulation. 
Approved, 
2