Legal Remedies for Unauthorized Use of Name in Business Permit Applications


Dear Attorney,

I am writing to seek your advice regarding a troubling situation I recently discovered. Someone has used my name without my consent to obtain a business permit for their enterprise. This unauthorized action has caused me significant distress, as I am worried about potential liabilities, reputational damage, and legal implications that may arise from this matter.

I would like to know the legal remedies available to address this issue. Additionally, I would appreciate your guidance on how to safeguard my name and ensure that I am not held responsible for any activities conducted under this unauthorized use. Please let me know the appropriate steps to resolve this matter effectively.

Sincerely,
A Concerned Citizen


Unauthorized Use of Name in Business Permits: A Comprehensive Legal Guide

The unauthorized use of someone’s name for obtaining a business permit is a serious matter under Philippine law. This act can result in various legal consequences for the person who misused your identity and provides avenues for the victim to seek redress. Below is an in-depth discussion of the applicable laws, remedies, and preventive measures in this scenario.

Legal Framework in the Philippines

  1. Civil Code of the Philippines (Article 19 to Article 21)
    The Civil Code outlines principles of human relations that prohibit abuse of rights, negligence, or the commission of acts that harm others. Article 19 emphasizes acting in good faith, while Articles 20 and 21 provide remedies for willful injury to another’s rights. Using someone else's name without permission violates these provisions and can serve as the basis for filing a civil action for damages.

  2. Revised Penal Code (RPC) Provisions

    • Falsification (Articles 171 and 172 of the RPC):
      Using another person’s name without authorization, especially in a document submitted to a public office such as a business permit application, constitutes falsification of public documents. This offense is punishable by prision mayor or imprisonment ranging from six years and one day to 12 years.
    • Identity Theft:
      Although the Philippines does not have a specific provision for identity theft under the RPC, this act may fall under estafa (Article 315) or other related offenses depending on the circumstances.
  3. Data Privacy Act of 2012 (RA 10173)
    The Data Privacy Act protects personal information against unauthorized processing. Using your name without consent to obtain a permit constitutes a violation of your rights under this law. The penalty for unauthorized processing of personal information includes imprisonment and fines.

  4. Corporate and Business Regulations
    The Department of Trade and Industry (DTI), the Securities and Exchange Commission (SEC), and local government units (LGUs) regulate business registrations and permits. Misrepresentation or false declarations made in obtaining a business permit may result in administrative penalties, fines, or cancellation of the permit.


Legal Remedies Available

  1. Filing a Criminal Case for Falsification
    You may file a complaint with the Office of the City Prosecutor for falsification of public documents. Prepare to present evidence such as:

    • Your identification documents proving the name misuse.
    • A copy of the business permit obtained using your name.
    • Any correspondence or documents linking the individual to the misuse.
  2. Civil Action for Damages
    Under the Civil Code, you can file a civil case for damages resulting from the misuse of your name. This may include:

    • Actual Damages: Costs incurred due to the act, such as legal fees or harm to your reputation.
    • Moral Damages: Compensation for mental anguish or emotional distress.
    • Exemplary Damages: Punitive damages to deter future misconduct.
  3. Administrative Complaints
    File a formal complaint with the relevant LGU or agency (e.g., DTI, SEC, or Business Permit and Licensing Office) to seek cancellation or suspension of the unauthorized business permit. Include evidence of the unauthorized use of your name.

  4. Data Privacy Act Violation Complaint
    Lodge a complaint with the National Privacy Commission (NPC) for unauthorized use of your personal information. The NPC can impose administrative fines and penalties on the violator.

  5. Petition for Judicial Declaration of Non-Association
    In cases where the misuse of your name results in lingering legal or reputational issues, you can file a petition in court to formally declare that you are not associated with the business in question.


Procedure for Filing Complaints

  1. Gather Evidence
    Collect all pertinent documents, including:

    • Copies of the business permit or related documents showing your name.
    • Proof of your lack of consent, such as affidavits or witness testimonies.
    • Communications or other records linking the violator to the misuse.
  2. Consult Legal Counsel
    Seek assistance from a lawyer to draft and file complaints. Proper legal representation ensures that all procedural and evidentiary requirements are met.

  3. File the Complaint
    Depending on the remedy pursued, submit your complaint to the appropriate forum:

    • Criminal complaints to the prosecutor’s office.
    • Civil cases to the Regional Trial Court (RTC).
    • Administrative complaints to LGUs or regulatory bodies.
    • Data privacy complaints to the NPC.
  4. Follow Up
    Regularly coordinate with your legal counsel and relevant authorities to monitor the progress of your case.


Defensive Measures

To prevent further unauthorized use of your identity:

  • Secure Your Personal Information: Avoid sharing personal details unnecessarily and monitor your records for irregularities.
  • Notify Regulatory Bodies: Inform LGUs, the DTI, or the SEC about the incident to flag your name in their systems.
  • Public Notice: Publish a notice in a newspaper to disclaim association with the unauthorized business. This serves as an additional layer of protection against liability.

Potential Outcomes

If successful, legal actions may result in:

  1. The cancellation of the unauthorized business permit.
  2. The imposition of criminal penalties on the violator.
  3. Compensation for damages sustained.
  4. Official records reflecting that you are not associated with the fraudulent business.

Conclusion

The unauthorized use of your name in obtaining a business permit is a clear violation of your legal rights. Philippine laws provide robust remedies to address this issue, from criminal prosecution to civil and administrative actions. By pursuing the appropriate legal channels and securing competent legal representation, you can protect your name and ensure accountability for the perpetrator. It is critical to act swiftly to minimize potential liabilities and safeguard your reputation.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.