Padilla files bill to protect celebrity endorsers from investment scams

Actor-turned-Senator Robin Padilla has filed Senate Bill 2899 to protect celebrity endorsers from legal issues arising from investment scams.

The bill was introduced following the detention of actress Nerizza 'Neri' Naig-Miranda and a warrant issued for comedian Rufa Mae Quinto over their involvement with Dermacare, an alleged unauthorized solicitation of investments.

Padilla stated that endorsers are often accused of crimes related to investment scams simply because they endorsed companies involved in such activities.

Under SB 2899, all product endorsement agreements must have a full disclosure of the nature of the business and all products covered by the endorsement.

The bill also 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 non-involvement in any sale of investment contracts and securities if the latter is engaged in such business.

Padilla proposed penalties for violations of the bill, including fines ranging from P100,000 to P1 million and revocation of a company's certificate of registration for repeated offenses.