Act No. 3740

Act To Penalize Fraudulent Advertising, Mislabeling Or Misbranding Of Any Product, Stock Bond, Etc.

Act No. 3740

By authority of the United States, be it enacted by the Philippine Commission, that:

Section 1. It shall be unlawful for any person, firm or corporation, either as principal or agent, to display, sell, barter, or exchange, or to offer to expose for display, sale, barter, or exchange in the Philippines; or to possess with intent to sell; or to cause to be sent, carried, or brought for display, sale, barter, or exchange from any foreign country into the Philippines, or from the Philippines into any foreign country, any article which is falsely packed, labeled, marked, or branded, or is packed, labeled, marked or branded in such a way as to misrepresent the character, amount value, contents, properties, or condition of the article contained or of the materials of which the article is composed; or any article which is accompanied by advertising matter which misrepresents the character, amount, value, contents, properties or condition of the article advertised, or of the materials of which it is composed whether or not the article or the container thereof is mislabeled, misrepresented, or misbranded.

The possession of any of the article herein mentioned in quantities in excess of the reasonable needs of the possessor shall constitute prima facie evidence of the possession with intent to sell. (As amended by Com. Act. No. 46.)

Section 2. It shall be unlawful for any person, firm, or corporation, either as principal or agent, to insert or cause to be inserted in any newspaper, book or periodical printed in the Philippines any advertising which misrepresents the character, value, properties or, condition of the article advertised or of the materials of which it is composed.

Section 3. It shall be unlawful for any person, firm or corporation, either as principal or agent, in any handbill, billboard, sign, pamphlet, circular, projected lantern slides, or any other form of advertising whatsoever printed, displayed, or circulated in the Philippines to misrepresent the character, value, properties or condition of any article offered or exposed for sale, barter, or exchange or of the materials of which said article is composed.

Section 4. It shall be unlawful for any person, firm or corporation, either as principal or agent, in any prospectus, handbill, billboard, sign, pamphlet, circular, projected lantern slides, or any other form of advertising whatsoever printed, displayed, or circulated in the Philippines, to misrepresent the character or value of any stocks, bonds, or shares of any firm or corporation or of the properties or prospectus of any firm or corporation.

Section 5. It will be unlawful for any person, or corporation, whether as principal or agent, to use the mails of the Philippines for the circulation of any advertising matter prohibited by this Act; but nothing in this Act shall be interpreted as prohibiting the sale or delivery through the mails in the Philippines of standard books, magazines or periodicals, published in the United States or foreign countries, but all the provisions of this Act shall apply to all classes of publications issued by persons, firms or corporations, either as principal or agent, for the advertisement or the promotion of the sale of their own merchandise, stocks, bonds, shares, etc.

Section 6. Any person who shall violate any provisions of this Act shall, upon conviction, be penalized by a fine of not less than two hundred pesos and not more than five thousand pesos or by imprisonment for not less than one month nor in excess of six months, or both such fine and imprisonment in the discretion of the Court. (As amended by Com. Act No. 46.)

Section 7. This Act shall take effect six months after approval.