By Liza Soriano
MANILA — Senator Robin Padilla has filed a bill to protect endorsers from being dragged into illegal investment scams.
This, after Neri Naig 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,” Senate Bill No. 2889 read.
“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 Padilla’s proposed “Product Endorsers Protection Act,” all product endorsement agreements must have a full disclosure of the nature of the business and all products covered by the endorsement.
The agreements must also have a categorical statement on whether the business is engaged in the sale of investment contracts and other securities.
A fine of P100,000 is imposed for the first offense; P300,000 for the second offense; and P500,000 to P1 million and revocation of the Certificate of Registration for the third offense.
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