The primary laws and regulations that govern advertising practices in the Philippines are:

• the Consumer Act of the Philippines (Republic Act No 7394) (“Consumer Act”);
• the Rules and Regulations Implementing the Consumer Act (Department of Trade and Industry Department Administrative Order No 2, Series of 1993, as amended);
• the Ad Standards Council Code of Ethics and Manual of Procedures; and
• the Guidelines for Online Businesses Reiterating the Laws and Regulations Applicable to Online Businesses and Consumers (Department of Trade and Industry Joint Administrative Order No 22-01, Series of 2022) (the “E-Commerce Guidelines”).

While the Consumer Act provides the primary and overarching legal framework for consumer protection, which includes advertising practices, the Philippine legal framework governing advertising practices is segmented and lacks a codified statute that covers all different types of advertising activities. Congress enacted a number of industry-specific laws to control how particular products are promoted, including:

• the Food and Drug Administration (FDA) Act (Republic Act No 9711) (“FDA Act”);
• the Subdivision and Condominium Buyers’ Protective Decree (Presidential Decree No 957);
• the Public Telecommunications Policy Act of the Philippines (Republic Act No 7925); and
• the Civil Aeronautics Act of the Philippines (Republic Act No 776, as amended).

The Philippine Department of Trade and Industry (DTI), the agency responsible for consumer protection, is the principal regulatory authority tasked with enforcing the laws and regulations governing advertising practices in the Philippines. The scope of authority of the DTI is quite limited, with a focus on penalising unlawful advertising and regulating the conduct of any sales campaigns that are national in character, sponsored, and promoted by manufacturing enterprises. Complaints may be filed before the DTI for violations of the Consumer Act, its Implementing Rules and Regulations, and other trade and industry laws. After investigation, the DTI may impose administrative penalties such as a cease-and-desist order and administrative fines.

Depending on the industry or product, additional sector-specific regulatory organisations may also be in charge of policing advertising. To name a few, the following government agencies also regulate certain aspects of the advertising industry.

• The Philippine Department of Human Settlements and Urban Development regulates advertising of real estate advertisements (Housing and Land Use Regulatory Board (HLURB) Memorandum Circular No 001-15).
• The Philippine National Telecommunications Commission has issued regulations on commercial and promotional advertisements sent to subscribers of public telecom entities (National Telecommunications Commission Memorandum Circular No 03-03-05, as amended).
• The Philippine Civil Aeronautics Board regulates the sale promotions of airlines (Civil Aeronautics Board Resolution No 30).
• The Philippine FDA regulates entities that can sell, advertise, and promote foods, drugs, and medical devices (the FDA Act and its Implementing Rules and Regulations).
• The Philippine Department of Labour and Employment also issues guidelines on the employment of minors in advertisements (Department of Labour and Employment Department Order No 65-04).

The Philippine advertising industry is also largely self-regulated through the Ad Standards Council (ASC), a private organisation. This is the primary body that regulates the Philippine advertising industry through screening of advertisements and resolution of disputes. The ASC is considered a common neutral review body recognised by a tripartite of stakeholders (advertisers, ad agencies and media). See 1.7 Self-Regulatory Authorities.

Complaints may also be filed before the ASC for violation of its Code of Ethics and/or Manual of Procedures. In acting on a complaint, the ASC may:

• send to the advertiser for voluntary action;
• dismiss the complaint with notice to the complainant and advertiser/ad agency; or
• recommend another action, which must follow the ASC procedures.

Under the Consumer Act, a person, association, partnership, or corporation that disseminates or causes the dissemination of any false, deceptive, or misleading advertisement by Philippine mail or in commerce by print, radio, television, outdoor advertisement, or other medium for the purpose of inducing or which is likely to induce, directly or indirectly, the purchase of consumer products or services could be subjected to a fine of not less than PHP500 (approximately USD9) but not more than PHP5,000 (approximately USD90). There are also penal consequences for deceptive advertising (ie, imprisonment of not less than one month but not more than six months, or both, upon the discretion of the court).

In general, “advertising” is defined as the business of conceptualising, presenting, or making available to the public, through any form of mass media, fact, data, or information, about the attributes, features, quality, or availability of consumer products, services, or credit. Advertisements could be in the form of broadcast materials (ads that are shown or aired on television, whether free-to-air, cable or subscription TV, or radio), cinema ads (those airing or exhibition in indoor or outdoor theatres) and print ads (those that are published in broadsheets, tabloids, magazines, journals and other printed publications). Other forms of advertisements are the following.

• Out-of-home (OOH) ads are essentially all types of advertising that intend to reach the consumer while he or she is outside the home, such as billboards.
• Shopper marketing/in-store/collateral materials are those in retail trade, malls, restaurants, hotels, and other public channels such as point-of-sale (POS) or point-of purchase (POP) materials, product demos/spiels, in-store audio-visual broadcast, and similar on-premises materials.
• Internet/digital and mobile ads include, but are not limited to, SMS, MMS, e-blast, opt-in/opt-out, digital video, static ads, and ads on corporate websites.

Generally, there are no pre-approvals required to be obtained from government authorities or other authorities before running advertising.

Government Approvals

Depending on the industry or product, prior approval may be required from certain sector-specific regulatory organisations. To name a few, the following advertisements require prior approval from the relevant government agencies.

Sales promotions

Under the Consumer Act, any person intending to conduct any form or scheme for a sales promotion campaign of a consumer product, service, or credit shall first secure a permit from the DTI at least 30 days before the commencement of the promotion period. “Sales promotion” refers to techniques intended for broad consumer participation, which contain promises of gain such as prizes, in cash or in kind, as reward for the purchase of a product, security, service or winning in a contest, game, tournament, and other similar competitions which involve determination of one or more winners, and which utilise mass media or other widespread media of information. It also means techniques purely intended to increase the sales, patronage, and/or goodwill of a product.

Unless an objection or denial is received within 15 days from filing of the application, the same shall be deemed approved and the promotion campaign or activity may be conducted, provided, that any sales promotion campaign using medical prescriptions or any part thereof or attachment thereto for raffles or a promise of reward shall not be allowed, nor a permit be issued thereof.

Health products

Advertising health products requires authorisation or registration with the FDA. “Health products” refers to food, drugs, cosmetics, devices, biologicals, vaccines, in-vitro diagnostic reagents and household/urban hazardous substances, and/or a combination/derivative thereof. The FDA Act and its implementing rules and regulations prescribe the following guidelines with respect to advertisements of health products.

• No health product that has not been registered or authorised shall be advertised, promoted, or subjected to any marketing activities.
• No claim in the advertisement, promotion and sponsorship, and other marketing activities shall be made other than those contained in the approved label or packaging of the health product, or as duly approved by the FDA.
• No claims, therapeutic or scientific, shall be made that have not been duly approved by the FDA.
• All health products that are permitted to be promoted must specifically state the authority or reference number that approved the same promotional, sponsorship, or marketing activities.

Subdivision and condominium projects

Under HLURB Memorandum Circular No 001-15, advertisements of subdivision and condominium projects shall only be allowed after the issuance of the project’s licence to sell and only after the advertiser has secured a prior approval from the HLURB by filing an application under oath with the Regional Field Office where the project is registered or is to be registered.

ASC Approvals

Certain types of advertisements require pre-approval from the ASC. OOH ads, which include all types of advertising that intend to reach the consumer while he or she is outside the home, are subject to pre-screening because of the nature of the medium, as it is exposed 24/7 to all audience types, including minors. Broadcast materials and cinema ads are likewise subject to pre-screening by the ASC.

Generally, print ads, merchandising, and digital materials are not pre-screened, except if it contains the following theme or classification.

• “Number 1” claims or leadership claims.
• Superiority or exclusivity claims.
• Direct comparison.
• Absolute claims.
• Testimonials that include specific claims regarding product or service performance.
• With sexy tones, skin exposure, potentially controversial/sensitive execution.
• With tones of violence.
• Over-the-counter (OTC) drugs and home remedy products.
• Products, brands, and services covered by the Milk Code of the Philippines (Executive Order No 51).
• Food/health supplement products.
• Alcoholic beverages.
• Airlines and other carriers with promotional fares.

The ASC’s Code of Ethics prescribes the following rules with respect to the use of quotations from famous personalities.

• Quotations of famous personalities, when used in an ad, must indicate the source to serve as qualifier, eg, “a quotation from President X’s first inaugural address, year XXXX”.
• Quotations must not be used to circumvent a prohibited claim.
• The advertiser/ad agency must submit a copy of the quotation source certified by the advertiser’s high-ranking company official. It is also encouraged to secure appropriate permission from relevant parties if it is deemed necessary so as not to violate regulations of the local/international government bodies or institutions protecting intellectual property rights.
• In the event the quotation is copyrighted, or a registered or prior-used trade mark of another company, the advertiser/ad agency must then secure the necessary written consent from the quotation’s copyright or trade mark owner to prevent any violation of intellectual property rights. At all times, the advertiser/ad agency is duty-bound to respect the intellectual property rights of others.

The ASC is the self-regulatory body that governs advertising practices in the Philippines. It is a non-stock, non-profit organisation which aims to promote truth and fairness in advertising through self-regulation of advertising content. The ASC is composed of organisations representing the leading advertisers, creative, and media advertising agencies and media networks, such as the Association of Accredited Advertising Agencies, Internet and Mobile Marketing Association of the Philippines, Kapisanan ng mga Brodkaster ng Pilipinas, Media Specialists Association of the Philippines, Philippine Association of National Advertisers, and United Print Media Group.

The main functions of the ASC are as follows:

• screening of advertisements, with or without advertising claims;
• hearing of disputes on advertisements which pertain to content of the advertisements; and
• resolving disputes on advertisements arising from procedures of the ASC.

The application for approval of advertisements from the ASC involves securing approval for production and approval for the issuance of a clearance for airing/publication/display/posting. Professional screeners review the advertisements and render one of the following decisions:

• Approved for Production;
• Approved with Caution;
• Disapproved;
• Refer to Panel; or
• Incomplete.

Decisions of the professional screener or the Panel (as defined below) may be the subject of an appeal.

Complaints may involve disputes on advertising content and/or procedures related to decisions on advertising content. Complaints and disputes on ads are settled or resolved by a Hearing Panel (“Panel”) composed of five ASC Panelists.

The following complaints involving ad content may be filed with the ASC.

• Complaints by a party-of-interest against an advertisement that has been approved by the ASC and that is already on-air/published/displayed/posted. A “party-of-interest” is one who has a real, actual, material, or substantial interest in the subject of the complaint, or one whose business is directly or indirectly affected by the advertisement. A mere incidental interest in the ad complained about cannot be grounds for filing of complaint. The complaint must clearly pertain to a violation of the ASC Code of Ethics and/or Manual of Procedures.
• Complaints by a party-of-interest against an advertisement that has not gone through the ASC pre-screening process.
• Complaints by a government sector, professional organisation, individual consumer or consumer group, or the public in general.

Disapproval of advertisements by the ASC’s professional screeners may be appealed to an ASC Appeal Panel, composed of three ASC Panelists. Disapproval by a three-person screening panel may be appealed to an ASC Appeal Panel, composed of five ASC Panelists. An appeal on a disapproval by a five-person screening panel is convened only if there is new evidence, and the decision of the five-person Appeal Panel is deemed final and can no longer be appealed.

Complaints that are patently in violation of Philippine laws and/or the ASC Code of Ethics and/or Manual of Procedures and those that are technical or procedural in nature may be elevated to the ASC Technical Committee. The Technical Committee may recommend specific cases, which involve potentially serious implications, widespread sensitivity, or controversy, to the ASC Board of Directors.

Decisions of the ASC, being a self-regulatory private body, are not appealable to court. However, this does not preclude an injured party from resorting to other remedies available under the law, such as a complaint for damages against the ASC, as the case may be.

An individual consumer or consumer group may file a complaint before the ASC for violation of the ASC Code of Ethics and/or Manual of Procedures.

Consumer complaints on advertising materials must be in written form and indicate the consumer’s complete contact details to avoid nuisance complaints. Consumer complainants may be invited to present their case in person to the ASC, especially if such complaints have a widespread, or are of a highly sensitive, nature. In acting on a complaint, the Panel may:

• send to the advertiser for voluntary action;
• dismiss the complaint with notice to the complainant and advertiser/ad agency; or
• recommend another action, which must follow the ASC procedures.       

A consumer may also file a petition or complaint before the DTI for violation of the Consumer Act. The DTI will commence an investigation upon petition or upon letter-complaint from any consumer. Upon a finding by the DTI of a prima facie violation of any provisions of the Consumer Act or any rule or regulation promulgated under its authority, it may commence a formal administrative action against any person who appears responsible.

With the rise of online businesses and electronic commerce (e-commerce), the DTI has issued the E-Commerce Guidelines, which aim to:

• ensure that e-commerce platforms, electronic retailers (e-retailers), and online merchants are properly guided about the rules, regulations, and responsibilities in the conduct of their online business;
• protect consumers against deceptive, unfair, and unconscionable sales acts and practices; and
• ensure that online consumers are informed of their rights and the mechanisms for redress – under the E-Commerce Guidelines, it shall be unlawful for e-commerce platforms, e-marketplaces, and the like, to:
1. disseminate or cause the dissemination of any false, deceptive, or misleading advertisement by mail or in commerce by print, radio, television, outdoor advertisement, or any other medium, for the purpose of inducing or which is likely to induce directly or indirectly the purchase of products or services; or
2. advertise any food, drug, cosmetic, device, or hazardous substance in a manner that is false, misleading, or deceptive, or is likely to create an erroneous impression regarding its character, value, quantity, composition, merit, or safety.

Information on cases or enforcement actions taken by the DTI on deceptive advertising in the past 12 months is not publicly available.

The authors are not aware of any special taste or cultural concerns that advertisers need to keep in mind.

As the Philippine advertising industry is largely self-regulated, it remains relatively unaffected by changes to the political climate or political administration.

An advertisement is considered to be false, deceptive, or misleading if it is not in conformity with the provisions of the Consumer Act or if it is misleading in a material respect.

In determining whether an 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 in light of such representations, or materials 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 advertisements making special claims are subject to regulation under the Consumer Act. Advertising claims are also regulated under the ASC Code of Ethics. The Consumer Act, ASC Code of Ethics, and ASC Manual of Procedures do not specifically regulate implied claims. However, the general principle that it will be unlawful for any person to disseminate or to cause the dissemination of any false, deceptive, or misleading advertisement should still apply to express and implied claims.

Advertising claims for health products are subject to regulation by the FDA. Under the Implementing Rules and Regulations of the FDA Act, no claim in the advertisement, promotion and sponsorship, and other marketing activities shall be made other than those contained in the approved label or packaging of the health product, or as duly approved by the FDA. Moreover, no claims, therapeutic, scientific, or otherwise, shall be made that have not been duly approved by the FDA. See 1.5 Pre-approvals.

Under the Consumer Act, any advertisement making special claims must substantiate such claims and properly use research results, scientific terms, statistics, or quotations.

Advertisements making scientific or statistical claims must indicate in the same advertisement the source of the same and, as much as possible, use local sources and those of independent and competent stature. Where the cited scientific or statistical data used is from foreign sources, the advertiser or the sponsor must make available official copies of such scientific or statistical findings and the manner in which they can be verified.

No research, scientific, or survey findings, discovery, or result may be used in the advertisement of a consumer product or service unless the same has, in fact, a bearing or relation to the product or service being advertised and is supported by current, actual tests, experiments, or surveys conducted using scientifically acceptable methods. Such research, scientific or survey finding, discovery, or result must be presented in its proper context containing all its other material aspects, findings, conclusions, or recommendations accompanying the scientific finding or discovery or survey result, such as but not limited to, its temporary nature, the need for the presence or absence of any element or condition to bring about its result, or its possible adverse effect on certain individuals and/or under certain conditions, or the need for further tests or surveys for verification of such findings, discovery, or result.

Under the Implementing Rules and Regulations of the FDA Act, advertising claims in relation to health products must be approved by the FDA. See 2.2 Regulation of Advertising Claims. The inclusion of unsubstantiated claims on the label or other information materials shall constitute misbranding, which is prohibited under the FDA Act.

The Consumer Act requires demonstrations of product performance in an advertisement, including, but not limited to, laboratory or scientific tests, to be factual and accurate and to be directly relevant as proof of the product benefit to which it purports to relate.

The use or incorporation of a test or demonstration of a product or service property or characteristics must clearly, fairly, factually, and accurately present the test or demonstration confirming the claimed product or service property or characteristic. The test or demonstration presented in advertisements must directly prove the claimed product or service property or characteristics.

Under the Consumer Act and its implementing rules and regulations, professionals or professional organisations giving testimonials as such in any advertisement to promote a product or service must be properly licensed, registered, or accredited, if law, ordinance, or government rules or regulations require them or their members to be so in order to practice their profession, whether they actually practice or not and provided that such product or service is not prohibited by any law, ordinance, or regulation.

Officers, members, representatives, or employees of organisations, firms, or corporations giving testimonials endorsing a product or service as such and identifying their affiliation to such organisation, firm, or corporation must be properly authorised to speak on behalf of the said organisation or corporation.

The ASC Code of Ethics provides the following standards with respect to the use of endorsements and testimonials in advertising.

• Testimonials should relate to the product being advertised.
• Testimonial claims should be genuine and truthful. Fictitious testimonials are not allowed.
• Testimonials should only be used with the written permission of those giving them, unless taken from a published source that must be properly quoted with attribution of the source. The advertiser must substantiate a testimonial by submitting the original written, dated, and signed testimony, duly subscribed and sworn/notarised, supporting the endorsement.
• If the testimony quotes a published source, a copy of the publication must be submitted.
• If the testimony is quoting another person, a written permission should be submitted from the quoted source.
• Testimonials should be categorically stated as a personal experience or opinion of the endorser and should be clearly presented as part of a testimonial statement.
• Testimonials based solely on subjective judgement are allowed provided that they are not presented as statements of fact. When such testimonials include specific claims regarding product or service performance, these claims should be supported with independent evidence on the accuracy of, or consistent with, the actual product or service performance.
• Testimonials must not be used to circumvent:
1. a prohibited claim;
2. the requirement for substantiation other than the testimony itself; or
3. regulations of government bodies pertaining to the use of claims on the product or service.

• Testimonials of professionals or groups of professionals should observe the Code of Ethics of their profession and should not violate regulations of the government bodies or institutions regulating that profession.
• An actual testimonial portrayed by a talent should be supported by a certification allowing the portrayal of the supposed endorser.
• Individual persons endorsing a product or service in advertising and communication materials and who are presented as experts must have demonstrable credentials to substantiate the claimed expertise. His or her endorsement must be supported by an actual exercise of his/her expertise in evaluating the product or service features or characteristics. Such evaluation must be relevant and available to an ordinary consumer’s use of or experience with the product.
• Endorsement by an organisation is deemed as the judgement of a group whose collective experience/expertise outweighs that of an individual member. The advertiser must provide evidence to substantiate that the organisation’s endorsement was reached by a process sufficient to ensure that it reflects the collective judgement of the organisation.
• All advertising materials, whether TV, radio, print, digital, OOH, or POS that use endorsements by any person, celebrity, or non-celebrity, must indicate the name/s of the person/s and their respective line of specialisation.
• No advertising can make any reference to advice received from the ASC or imply endorsement by the ASC.
• Quotations of famous personalities, when used in an ad, must indicate the source to serve as qualifier – eg, “a quotation from President X’s first inaugural address, year XXXX.”
• Quotations must not be used to circumvent a prohibited claim.
• The advertiser or ad agency must submit a copy of the quotation source certified by the advertiser’s high-ranking company official. It is also encouraged to secure appropriate permission from relevant parties if it is deemed necessary so as not to violate regulations of the local/international government bodies or institutions protecting intellectual property rights.
• In the event the quotation is copyrighted, or a registered or prior-used trade mark of another company, the advertiser or ad agency must then secure the necessary written consent from the quotation’s copyright or trade mark owner to prevent any violation of intellectual property rights. At all times, the advertiser or ad agency is duty-bound to respect the intellectual property rights of others.

Philippine laws and regulations do not provide detailed general rules governing the use of disclosures in advertising. However, the Consumer Act penalises an advertiser’s failure to reveal material facts in light of representations made or consequences which may result in the use or application of the advertised products or services.

The ASC Code of Ethics addresses stereotyping in advertising as follows.

• Advertisements must not directly or indirectly disparage, ridicule, criticise, or attack any natural or juridical person, groups of persons, or any sector of society, especially on the basis of gender, social or economic class, religion, ethnicity, race, or nationality.
• Maliciously ridiculing or denigrating religion, culture, customs, and traditions is prohibited.
• References to minority groups should not be stereotypical, malicious, unkind, or hurtful.
• References to religious or political beliefs should not be offensive, belittling, or hurtful, and the use of religious themes should be treated with extreme care.
• Those who have physical or sensory impairment, or intellectually- or mentally-challenged persons, should not be demeaned or ridiculed.
• Advertisements should not directly or indirectly disparage, ridicule, or unfairly attack competitors or non-competitors, competing or non-competing products, or services, including distinguishing features or elements of their advertising campaigns such as specific layout, copy, slogan, visual presentation, music/jingle, or sound effects and other elements.
• Advertisements should not make any presentation that brings advertising into disrepute both as a profession and as a business activity.
• Use of humour to disparage another brand/product or service is not allowed.

The ASC Code of Ethics allows the use of environmental claims, subject to the following guidelines.

• Advertising and/or marketing communication materials should be so framed as not to abuse consumers’ concern for the environment or exploit their possible lack of environmental knowledge.
• Advertising and/or marketing communication materials should not contain any statement or visual treatment likely to mislead consumers in any way about the environmental aspects or advantages of products, or about actions being taken by the advertiser or marketer in favour of the environment.
• Corporate communications may refer to specific products or activities but should not imply without justification that they extend to the whole performance of a company, group, or industry.
• An environmental claim should be relevant to the particular product being promoted and relate only to aspects that already exist or are likely to be realised during the product’s life. It should be clear as to what the claim relates, eg, the product or its packaging. A pre-existing but previously undisclosed aspect should not be presented as new.
• Environmental claims should be up to date and should, where appropriate, be reassessed with regard to relevant developments.
• Vague or non-specific claims of environmental benefit, which may convey a range of meanings to consumers, should be made only if they are valid, without qualification, in all reasonably foreseeable circumstances. If this is not the case, general environmental claims should be qualified.
• In particular, claims such as “environmentally-friendly” or “ecologically safe” (implying that a product or an activity has no negative impact, or only has a positive impact on the environment), should not be used unless reliable, verifiable proof supported by scientific evidence is available.
• As long as there are no definitive, generally accepted methods for measuring sustainability or confirming its accomplishment, no claim to have achieved it should be made.
• Any comparative claim should be specific and the basis for the comparison should be clear. Environmental superiority over competitors will be allowed only when a significant advantage can be demonstrated. Products being compared should meet the same needs and be intended for the same purpose.
• When a claim refers to the reduction of components or elements having an environmental impact, it should be clear what has been reduced. Such claims are justified only if they relate to alternative processes, components, or elements which result in a significant environmental improvement, taking all relevant aspects of the product’s life cycle into account.
• Environmental claims should not be based on the absence of a component, ingredient, feature, or impact that has never been associated with the product category concerned. Conversely, generic features or ingredients, which are common to all or most products in the category concerned, should not be presented as if they were a unique or remarkable characteristic of the product being promoted.
• Claims that a product does not contain a particular ingredient or component, eg, that the product is “X-free”, should be used only when the level of the specified substance does not exceed that of an acknowledged trace contaminant or background level.
• Environmental signs or symbols should be used in advertising/marketing communication materials only when the source/s of such signs or symbols is/are clearly indicated.
• Such signs and symbols should not be used in such a way as to falsely suggest official approval or third-party certification.

The authors understand that “Dark Patterns” refers to a user interface designed or manipulated with the substantial effect of subverting or impairing user autonomy, decision-making, or choice. Philippine laws and regulations do not provide guidance related to “Dark Patterns” in advertising.

The ASC Code of Ethics prescribes the following standards for the protection of children.

• Advertisements and promotional activities for proprietary drugs, medicines, devices, and treatments should not be directed to children.
• Advertisements should not encourage children to take drugs or medicines without the supervision of a responsible adult.
• Advertisements should not encourage reckless, improper, or antisocial behaviour and should not show children in activities that would normally not be allowed by responsible adults for reasons of safety or propriety.
• Advertisements should not undermine children’s enjoyment of present stature.
• Advertisements directed primarily to children should not exploit them, especially their natural credulity.
• Advertisements should not portray children to be indulging in excessive eating or gluttony and excessive drinking of non-alcohol beverages.
• Brand names, logos, or trade marks of alcohol beverages and cigarette and tobacco must not be used on children’s clothing, toys, games, or other materials intended for use primarily by persons under the legal purchase age.
• Advertisements meant for children should not contain indelicate references to infirmities or scenes depicting physical and mental cruelty. In general, advertisements for children should not show irresponsible, violent, or reprehensible acts/practices in a manner that may lead children to interpret or adopt them as normal or acceptable social behaviour.
• Advertisements directed at children must in no way mislead children as to the product’s performance and usefulness.
• Advertisements should not encourage children to purchase products or services to support the existence of the television, radio, or cable television programme.
• Advertisements should encourage active and, if possible, outdoor play versus a sedentary lifestyle amongst children.
• The child’s dignity must be respected at all times. The child should not be demeaned or have his/her innocence exploited.
• Advertising materials should avoid sensationalising, stereotyping, prejudging, or exploiting children with disabilities or children belonging to minority or indigenous groups.
• Advertisements directed at children should not foster violence as a desirable way or a means of resolving conflicts and problems or depict sexual subjects and/or violent actions inappropriate for children.
• Advertisements directed at children must not contain elements that might be physically, mentally, psychologically, or morally harmful to children.
• Advertisements should not depict children performing acts, using language, or attired in a manner that is/are vulgar, obscene, indecent, or inappropriate for children or encourage them to engage in hazardous activities or behaviour.
• Advertisements should promote positive Filipino values, good manners, and right conduct amongst children, such as respect for elders, respect for others, and respect for property of others.
• Advertisements directed at children should not encourage the use of speech and expressions which may hinder the child’s language development.
• Advertisements involving children must comply with all pertinent laws, rules, and regulations.
• Children must not be presented as being in contact with, or demonstrating, a product recognised as potentially dangerous to them. Advertising materials depicting or describing acts that would likely tend to harm children is prohibited.
• No child should be used, directly or indirectly, in advertisements of gambling, gaming institutions, or games of chance.

Further, under the guidelines on the employment of minors in advertisements issued by the Department of Labour and Employment, no child below 18 years of age shall be employed as a model in any advertisement directly or indirectly promoting alcoholic beverages, intoxicating drinks, tobacco and its byproducts, gambling, or any form of violence or pornography.

Philippine laws and regulations do not provide rules related to sponsor identification or branded content.

The ASC regulates the following claims:

• Claims on ingredients.
• Number 1/leadership claims.
• Absolute claims.
• Exclusivity claims.
• Comparative claims.
• Superiority claims.
• Testimonials.
• Quotations from famous personalities.
• Scientific or technical claims.
• Environmental claims.

The foregoing claims are subject to the provisions of the ASC Code of Ethics.

The Consumer Act regulates comparative price advertising. It provides that comparative price advertising by sellers of consumer products or services must conform with the following conditions.

• Where the comparison relates to a former price of the seller, the item compared shall either have been sold at that price within the 90 days immediately preceding the date of the advertisement, or it shall have been offered for sale for at least four weeks during such 90-day period. If the comparison does not relate to an item sold or offered for sale during the 90-day period, the date, time or seasonal period of such sale or offer shall be disclosed in the advertisement.
• Where the comparison relates to a seller’s future price, the future price shall take effect on the date disclosed in the advertisement or within 90 days after the price comparison is stated in the advertisement. The stated future price shall be maintained by the seller for a period of at least four weeks after its effective date. However, compliance thereof may be dispensed with in case of circumstances beyond the seller’s control.
• Where the comparison relates to a competitor’s price, the competitor’s price shall relate to the products or services advertised or sold in the 90-day period and shall be representative of the prices similar products or services are sold for or advertised in the locality where the price comparison was made.

On the other hand, the ASC Code of Ethics provides the following guidelines for comparative advertising.

• A comparison of competitive products or services must provide clear, substantiated, and verifiable bases for any comparative claim favourable to the advertiser.
• An unqualified, sweeping, exclusivity, or superiority claim may be permitted only if proven to be true on all material respects in relation to all products or services whether competitive or non-competitive.
• Indirect or unbranded comparison advertising may be permitted provided it does not use features or elements that may be identified or directly associated with competitive brands such as, but not limited to, symbols, slogans, titles, or statements.
• Competitive claims inviting comparison with a group of products or with other product categories, without identifying any specific brand, may be allowed provided these are adequately substantiated.
• Comparison must not be misleading, disparaging, or exaggerated.
• Comparison versus previous formulation should be supported by technical data from laboratory tests/clinical studies or consumer use tests following accepted research protocol.
• Comparative claims, whether the comparison is with the marketer’s own previous process or product, or with those of a competitor, should be worded in such a way as to make it clear whether the advantage being claimed is absolute or relative.
• Parity claims are allowed provided they are properly qualified and substantiated.
• There is no need to use the qualifier “vs NON-USE”.
• Use of “vs PREVIOUS FORMULATION” is now allowed until change in product formulation is made.
• Use of “SERVING SUGGESTION” as a qualifier is now only required when a presentation of the product is shown with enhancements compared to the actual product such as, but not limited to, addition of vegetables when presenting instant noodles as prepared in a bowl, or showing packaged meat products with additional trimmings.
• Use of “CREATIVE VISUALISATION” is no longer mandatory except when showing product action that is not obvious to the naked eye, such as, but not limited to, molecule or atom action of product ingredients.
• “Before” and “after” situations must reflect truthful and factual comparisons. Comparisons of the “antecedent” situation with the “subsequent” situation must not be exaggerated or misleading.
• Advertisements comparing “before” and “after” situations should cite with prominence the specific time elapsed between the two situations.
• Words such as “new”, “improved”, “introducing”, which connote “newness” or an “improvement” of a product, may be used in advertisements for a period of one year only from the time the new or improved product/service has been introduced in the market, excluding reasonable test market periods.
• Where claimed improvement relates not to the product’s basic utility or function but to one of its other features, such as appearance, fragrance, colour, or packaging, the word “new” or “improved” may be used only if clearly limited to the specific change, eg, “new fresh fragrance” or “new packaging/bottle”.

Direct comparison advertising refers to advertising involving a comparison of the advertiser’s company, product, or service with an identified competitor, product, or service.

Under the ASC Code of Ethics, direct comparison advertising is allowed only in the following product categories:

• automotive vehicles excluding automotive products;
• consumer durables (appliances, audio-visual equipment, and electronic gadgets);
• airlines and shipping lines;
• musical instruments, entertainment devices/equipment; and
• mobile products, eg, cellular handsets, tablets, laptops, and netbooks.

Direct comparison advertising is allowed only in product categories that have clear, definite, and accepted technology benchmarks. In particular:

• product features/attributes being compared should be verifiable, measurable, and/or definable; and
• comparison must be quantitative rather than qualitative.

Direct comparison is limited to products intended for the same purpose or belonging to the same class or category. Subjects of direct comparison must be clearly identified without violating intellectual property rights.

An advertiser can challenge claims made by a competitor by filing a complaint with the ASC.

Complaints may be filed against an advertisement that has been approved by the ASC and that is already on-air, published, displayed, or posted or against an advertisement that has not gone through the Ad ASC pre-screening process.

Such complaints may only be filed by a party-of-interest. A “party-of-interest” is one who has a real, actual, material, or substantial interest in the subject of the complaint, or one whose business is directly or indirectly affected by the advertisement. A mere incidental interest in the ad complained about cannot be a ground for the filing of a complaint. The complaint must clearly pertain to a violation of the ASC Code of Ethics and/or Manual of Procedures.

The authors understand that “ambush marketing” refers to the practice in which a company attempts to advertise and promote its products by associating them with a public event without paying the fees that an exclusive sponsor is required to pay. Philippine laws and regulations do not provide rules related to ambush marketing.

In the Philippines, the E-Commerce Guidelines were issued to regulate the conduct of online businesses, including advertising in online or social media. Particularly, the E-Commerce Guidelines impose upon online business the responsibility to provide easily accessible, complete, and correct information about their goods and services, and adhere to fair advertising and marketing practices.

Further, the E-Commerce Guidelines make it unlawful for e-commerce platforms, e-marketplaces, and the like, to:

• disseminate or to cause the dissemination of any false, deceptive, or misleading advertisement by mail or in commerce by print, radio, television, outdoor advertisement, or any other medium, for the purpose of inducing or which is likely to induce directly or indirectly the purchase of products or services;
• advertise any food, drug, cosmetic, device, or hazardous substance in a manner that is false, misleading, or deceptive, or is likely to create an erroneous impression regarding its character, value, quantity, composition, merit, or safety; and
• advertise any food, drug, cosmetic, device, or hazardous substance, unless such product is duly registered and approved by the concerned department for use in any advertisement.

Further, the Consumer Act also applies to online businesses. Thus, online businesses are prohibited from making any false, deceptive, and misleading advertisement. An advertisement is considered false, deceptive, or misleading if it is not in conformity with the provisions of the Consumer Act or if it is misleading in a material respect.

If the advertiser’s site or social media channel will qualify as e-commerce platforms, e-marketplaces, and the like under the E-Commerce Guidelines, then it may be held liable, as they will be treated as online sellers, merchants, and e-retailers in case of violations implemented by the E-Commerce Guidelines. As such, advertisers have the duty to verify if the goods sold by online sellers or merchants, and e-retailers, in their respective platforms are regulated, prohibited, original, genuine, licensed, or unexpired.

In case of prima facie violation of any pertinent laws or regulations in an online post, the advertiser has the duty to take down such post within a maximum period of three days. Failure to comply will aggravate the offence charged.

There are no special rules under Philippine law that apply to online disclosures and disclosures in social media. However, the Consumer Act penalises an advertiser’s failure to reveal material facts in light of representations made or consequences which may result in the use or application of the advertised products or services.

Furthermore, under the E-Commerce Guidelines, online businesses are required to provide easily accessible, complete, and correct information about their goods and services, and adhere to fair advertising and market practices.

There are currently no rules or regulations that apply to the use of any of the major social media platforms in this jurisdiction.

Currently, House Bill No 543, or the proposed Social Media Regulation and Protection Act, is pending before the Congress. If passed into law, this will provide for the responsibilities of social media companies to provide age restrictions and limitations on the use of social media platforms, provide for notification systems on the parents of a child using the social media platform, prohibit the collection of personal and location information of children, and limit the usage time of social media platforms, among others.

Further, the authors are not aware of any social media platforms that are not permitted to be used in this jurisdiction.

There are no special rules that apply to “native advertising” in the Philippines. Thus, the rules on advertising laid down by the Consumer Act and the E-Commerce Guidelines will apply equally to “native advertising.”

There are no special rules or regulations that apply to the use of influencer campaigns. However, the advertising rules in the Consumer Act and the E-Commerce Guidelines will apply equally to the use of influencer campaigns.

The advertiser may be held liable under the Consumer Act if the content posted by the influencer solicited by the advertiser is false, deceptive, or misleading. See 4.1 Special Rules Applicable to Social Media. However, there are currently no Philippine laws or regulations that impose any duty upon an advertiser to monitor its influencers.

There are no special rules or regulations that apply to the solicitation and use of consumer reviews. However, the E-Commerce Guidelines prohibit online businesses from restricting the ability of consumers to make critical or negative reviews of goods or services.

An advertiser cannot be held liable for consumer reviews, as there are no laws or regulations which impose such liability upon an advertiser. Additionally, an advertiser does not have a duty to monitor consumer reviews.

The Data Privacy Act of 2012 (Republic Act No 10173) (DPA) governs email marketing, as it falls under the definition of direct marketing. Under the DPA, the data subject has the right to be informed of the processing of his/her personal data for direct marketing. The data subject also has the right to object to the processing of his/her personal data for direct marketing.

However, since email marketing is considered direct marketing, the specific and informed consent of the data subject is necessary before an advertiser may send marketing materials to the data subject. If prior consent is not obtained, then this must be obtained as soon as practicable. This rule will not apply if the ads to be given relate to the personal data controller or processor’s own products or services and not to those of third parties, which the data subject has previously availed of, and the information to be processed for the purpose is not sensitive personal information.

Violation of these rules may be penalised by imprisonment of one to three years and a fine of PHP500,000 to PHP2 million.

The DPA also governs inbound and/or outbound telemarketing, as it falls under direct marketing. See 6.1 Email Marketing.

The DPA also governs advertising via text messaging, as it falls under direct marketing. See 6.1 Email Marketing.

Additionally, NTC Memorandum Circular No 03-03-2005-A, 04-07-2009, and 07-08-2018 provide that commercial and promotional advertisements may only be sent to subscribers who have prior consent or have specifically opted-in to receive messages. Subscribers who opted in should also be given the right to opt out from receiving such messages.

“Targeted/interest-based advertising” may fall under “profiling” and “direct marketing” under the DPA. However, profiling and direct marketing are not separately regulated under the DPA. Thus, the pertinent requirement on processing under the DPA will apply equally to targeted/interest-based advertising. See 6.1 Email Marketing.

The rules established by the DPA will similarly apply to collection or use of personal information from children, and the law does not distinguish whether the data collected or used is from adults or children. See 6.1 Email Marketing.

However, a minor cannot validly give consent under Philippine law and the National Privacy Commission (NPC), the Philippine privacy authority, has opined that a minor cannot validly provide consent under the DPA. Thus, consent of the minor’s parent or guardian must first be obtained before processing a minor’s personal information.

There are no other important privacy rules related to advertising in this jurisdiction, as the privacy rules related to advertising are already in the DPA, with its implementing rules and regulations, and corresponding issuances of the NPC.

Advertising of sweepstakes and contests falls under the definition of sales promotion under the Consumer Act. Thus, the Consumer Act also governs the conduct of sweepstakes and contests. See 1.5 Pre-approvals.

The implementing rules and regulations of the Consumer Act refer to “competition”, which is defined as a sales promotion scheme such as quizzes, contests, and tournaments, whereby participants compete in their or their entry’s skill or physical or mental attributes to win the promised prize or reward. Under the implementing rules and regulations, competitions (except beauty contests conducted nationwide) that do not require the purchase, lease, or payment of any consumer product are exempt from the sale promotion permit requirement.

Advertisement of games of chance and/or contests of skill are also governed by the Consumer Act as they fall under the definition of sales promotion. See 1.5 Pre-approvals. However, competitions (except beauty contests conducted nationwide) that do not require the purchase, lease, or payment of any consumer product are exempt from the sale promotion permit requirement. See 7.2 Contests of Skill and Games of Chance.

Under the Consumer Act, a person must first obtain a permit from the concerned department of the DTI at least 30 days before commencing a sales campaign by filing an application with complete supporting documents. However, no permit is needed if the free or reduced-price offers are made via in-store promotions and no advertisements were made for such promotions.

There are no special laws or regulations that apply to automatic renewal/continuous service offers. Thus, the provisions of the Consumer Act will apply equally to automatic renewal/continuous service offers.

In the Philippines, there are currently no rules related to the use of artificial intelligence (AI) in connection with the development of advertising content. However, House Bill No 7396, or the proposed Artificial Intelligence Development and Regulation Act, is currently pending before Congress. This Bill seeks to provide a comprehensive framework for the development and regulation of AI in the Philippines.

In the Philippines, there are currently no special rules related to making claims that a product is developed through the use of AI, is powered by AI, or has AI-related capabilities. However, House Bill No 7396, or the proposed Artificial Intelligence Development and Regulation Act, is currently pending before Congress. This bill seeks to provide a comprehensive framework for the development and regulation of AI in the Philippines.

See 8.1 AI & Advertising Content.

There are no special rules or regulations that apply to the advertising, marketing, or sale of cryptocurrency and/or NFTs. Thus, the Consumer Act and the E-Commerce Guidelines will apply equally to the advertising, marketing, or sale of cryptocurrency and/or NFTs.

However, to the extent that such cryptocurrency and/or NFTs are considered securities under Philippine securities law, the public offering of such cryptocurrency and/or NFTs will be subject to the securities registration requirement under the Securities Regulation Code (Republic Act No 8799) (SRC). In this connection, the SEC has advised that when a virtual currency is likewise analogous to any of the types of securities under the SRC, there is a strong possibility that the said virtual currency is a security under the jurisdiction of the SEC and must be registered and necessary disclosures must be made for the protection of the investing public.

There are no special laws or regulations that apply to advertising within the metaverse. Thus, the Consumer Act and the E-Commerce Guidelines will apply equally to advertising in the metaverse.

There are specific rules/restrictions on the advertising of certain regulated products in the Philippines. These include the following.

Food

The Food and Safety Act of 2013 (Republic Act No 10611) prohibits and penalises the adulterating, misbranding, misrepresentation, and false advertising of any food product which misleads consumers.

Tobacco

The Tobacco Regulation Act (Republic Act No 9211) and its implementing rules prohibit all tobacco advertising on television, cable television, and radio, all cinema and outdoor advertising, and all forms of tobacco advertising in mass media except tobacco advertisements placed inside the premises of POS retail establishments.

Medical Products

The FDA Act and its implementing rules and regulations provide the following rules on advertisement of health products.

• No health product that has not been registered or authorised shall be advertised, promoted, or subjected to any marketing activities.
• No claim in the advertisement, promotion and sponsorship, and other marketing activities shall be made other than those contained in the approved label or packaging of the health product, or as duly approved by the FDA.
• No claims, therapeutic or scientific, shall be made that have not been duly approved by the FDA.
• All health products that are permitted to be promoted must specifically state the authority or reference number that approved the same promotional, sponsorship, or marketing activities.

Alcohol

FDA Circular 2019-006 states that promotional and advertising materials on alcoholic beverages and beverages with alcohol content (regardless of amount) shall clearly state or inform consumers that such beverages contain alcohol, and therefore are not to be promoted and advertised to be sold to and consumed by minors. Further, packaging and labelling materials shall not be appealing to children.

There are no special rules related to the placement of products in entertainment content. Thus, the Consumer Act will apply equally in the placement of products in entertainment content.

There are no other specific rules or restrictions in this jurisdiction that apply to the advertisements of any other category of products or services whose advertising is subject to specific regulation.