To protect celebrity endorsers from being linked to illegal investment scams, Senator Robin Padilla has filed a bill imposing penalties on such illegal activities.
Senate Bill No. (SBN) 2889 seeks to prevent incidents like the one involving actress Neri Naig-Miranda, who was arrested for alleged syndicated estafa and violations of the Securities Regulation Code.
“Recent events reveal a growing concern for the welfare of endorsers whose names are dragged into various investment scams. Oftentimes, they are the first ones to be accused of crimes related thereto just because their names and faces were made prominent by companies who secured their services as endorsers,” Padilla said in his bill.
“This measure seeks to offer protection to endorsers by providing mandatory provisions into their engagement agreements that will clearly define not only their obligations but more importantly, their relationship with the company and their noninvolvement in any sale of investment contracts and securities if the latter is engaged in such business,” he added.
Under SBN 2889 or the “Product Endorsers Protection Act,” all product endorsement agreements would require full disclosure of the nature of the business and all products involved.
The agreements must also state whether the business is engaged in the sale of investment contracts or other securities.
“In the event that the business or venture is engaged in the sale of investment contracts or other securities, there must be a clear prohibition on the part of the endorser to engage in the promotion or sale thereof with an expectation to receive profits or commissions if the same is not a licensed broker,” the proposal read.
“Businesses or ventures engaged in the sale of investment contracts and other forms of securities shall refuse to accept investments obtained through the efforts of any endorser if the same is not a registered broker,” it furthered.
Endorsers who falsely represent themselves as agents of unlicensed businesses selling investment contracts or securities will be held liable for any claims against them.
The bill imposes fines for violators: P100,000 for the first offense, P300,000 for the second, and P500,000 to P1 million, along with revocation of their Certificate of Registration, for the third offense.To protect celebrity endorsers from being linked to illegal investment scams, Senator Robin Padilla has filed a bill imposing penalties on such illegal activities.
Senate Bill No. (SBN) 2889 seeks to prevent a rincidents like the one involving actress Neri Naig-Miranda, who was arrested for alleged syndicated estafa and violations of the Securities Regulation Code.
“Recent events reveal a growing concern for the welfare of endorsers whose names are dragged into various investment scams. Oftentimes, they are the first ones to be accused of crimes related thereto just because their names and faces were made prominent by companies who secured their services as endorsers,” Padilla said in his bill.
“This measure seeks to offer protection to endorsers by providing mandatory provisions into their engagement agreements that will clearly define not only their obligations but more importantly, their relationship with the company and their noninvolvement in any sale of investment contracts and securities if the latter is engaged in such business,” he added.
Under SBN 2889 or the “Product Endorsers Protection Act,” all product endorsement agreements would require full disclosure of the nature of the business and all products involved.
The agreements must also state whether the business is engaged in the sale of investment contracts or other securities.
“In the event that the business or venture is engaged in the sale of investment contracts or other securities, there must be a clear prohibition on the part of the endorser to engage in the promotion or sale thereof with an expectation to receive profits or commissions if the same is not a licensed broker,” the proposal read.
“Businesses or ventures engaged in the sale of investment contracts and other forms of securities shall refuse to accept investments obtained through the efforts of any endorser if the same is not a registered broker,” it furthered.
Endorsers who falsely represent themselves as agents of unlicensed businesses selling investment contracts or securities will be held liable for any claims against them.
The bill imposes fines for violators: P100,000 for the first offense, P300,000 for the second, and P500,000 to P1 million, along with revocation of their Certificate of Registration, for the third offense.
