Penalizing Fraudulent Advertising and Mislabeling

Section 2 makes it unlawful to insert or cause to be inserted in any newspaper, book, or periodical printed in the Philippine Islands any advertising that misrepresents the character, value, properties, or condition of the article or of the materials of which it is composed.
Section 3 makes it unlawful to misrepresent in any handbill, billboard, sign, pamphlet, circular, projected lantern slides, or any other form of advertising whatsoever printed, displayed, or circulated in the Philippine Islands the character, value, properties, or condition of any article offered or exposed for sale, barter, or exchange or the materials of which it is composed.
Section 4 makes it unlawful, in any prospectus and in the same advertising media listed in Section 3 (handbill, billboard, sign, pamphlet, circular, projected lantern slides, or any other advertising form printed, displayed, or circulated in the Philippine Islands), to misrepresent the character or value of stocks, bonds, or shares of a firm or corporation, or the properties or prospects of a firm or corporation.

Section 5 makes it unlawful for any person, firm, or corporation—whether as principal or agent—to use the mails of the Philippine Islands for the circulation of any advertising matter prohibited by this Act.
Section 5 preserves a specific mail exception: it does not prohibit the sale or delivery through the mails in the Philippine Islands of standard books, magazines, or periodicals published in the United States or foreign countries.
Section 5 applies broadly to certain self-promotional publications: all provisions of the Act apply to all classes of publications issued by persons, firms, or corporations—whether as principal or agent—for the advertisement or promotion of the sale of their own merchandise, stocks, bonds, shares, etc.

Section 6 imposes a criminal penalty upon conviction for any violation of the Act: the offender is penalized by a fine of not more than PHP 5,000, or imprisonment for not to exceed six months, or both such fine and imprisonment in the discretion of the court.