SECTION 1. Short Title. -
This Act shall be referred to as
the "Price Act."
SEC. 2. Declaration of Basic Policy. -
It is the policy of
the State to ensure the availability of basic necessities and
prime commodities at reasonable prices at all times without denying legitimate business a fair return on investment. It
is also a declared policy of the State to provide effective
and sufficient protection to consumers against hoarding,
profiteering and cartels with respect to the supply,
distribution, marketing and pricing of said goods, especially
during periods of calamity, emergency, widespread illegal
price manipulation and other similar situations. To these
ends, the State shall:
(1) Develop, adopt and promulgate measures to promote
productivity in basic necessities and prime commodities;
(2) Develop an improved and efficient transport and
distribution system;
(3) Develop, adopt and promulgate measures to stabilize
prices at reasonable levels;
(4) Institute appropriate penalties for illegal price
manipulation and other violations of this Act; and
(5) Establish a mechanism that will readily protect
consumers from inadequate supply and unreasonable price
increases on occasions of calamities, emergencies and like
occurrences.
SEC. 3. Definition of Terms. -
For purposes of this Act, the term:
(1) "Basic necessities" includes: rice; corn; bread; fresh,
dried and canned fish and other marine products; fresh pork,
beef and poultry meat; fresh eggs; fresh and processed milk;
fresh vegetables; root crops; coffee; sugar; cooking oil;
salt; laundry soap; detergents; firewood; charcoal; candles;
and drugs classified as essential by the Department of
Health;
(2) "Buffer fund" means a contingent fund in the budget of
the implementing agency which shall not be used in its normal
or regular operations but only for purposes provided for in
this Act;
(3) "Implementing agency" means the department, agency or
office of the Government which has jurisdiction over a basic
necessity or prime commodity as defined in this Act, which
shall be:
(a) The Department of Agriculture, with reference to
agricultural crops, fish and other marine products, fresh
meat, fresh poultry and dairy products, fertilizers, and
other farm inputs;
(b) The Department of Health, with reference to drugs;
(c) The Department of Environment and Natural Resources,
with reference to wood and other forest products; and
(d) The Department of Trade and Industry, with reference to
all other basic necessities and prime commodities.
(4) "Panic-buying" is the abnormal phenomenon where
consumers buy basic necessities and prime commodities grossly
in excess of their normal requirement resulting in undue
shortages of such goods to the prejudice of less privileged
consumers;
(5) "Person" means a natural person or a juridical person;
(6) "Prevailing price" means the average price at which any
basic necessity has been sold in a given area within a month
from the occurrence of any of the enumerated under Section 6
this Act;
(7) "Price ceiling" means the maximum price at which any
basic necessity or prime commodity may be sold to the general
public; and
(8) "Prime commodities" include fresh fruits; flour; dried,
processed and canned pork; beef and poultry meat; dairy
products not falling under basic necessities; noodles;
onions; garlic; vinegar; patis; soy sauce; toilet soap;
fertilizer; pesticides; herbicides; poultry; swine and cattle
feeds; veterinary products for poultry, swine and cattle;
paper; school supplies; nipa shingles; sawali; cement;
clinker; GI sheets; hollow blocks; plywood; plyboard;
construction nails; batteries; electrical supplies; light
bulbs; steel wire; and all drugs not classified as essential
drugs by the Department of Health.
SEC. 4. Exclusion from the Coverage of this Act. -
Upon
petition of the concerned parties and after public hearing,
the implementing agency, with the approval of the President,
mayexclude from the coverage of this Act, types or brands of
the goods included in the definition of basic necessities and
prime commodities, which may be deemed as nonessential goods
or luxury goods: Provided, That, any type or brand so
excluded may be reinstated by the implementing agency during
occasions of acute shortage in the supply of the basic
necessity or prime commodity to which the excluded type or
brand used to belong.
SEC. 5. Illegal Acts of Price Manipulation. -
Without
prejudice to the provisions of existing laws on goods not
covered by this Act, it shall be unlawful for any person
habitually engaged in the production, manufacture,
importation, storage, transport, distribution, sale or other
methods of disposition of goods to engage in the following
acts of price manipulation of the price of any basic necessity or prime commodity:
(1) Hoarding, which is the undue accumulation by a person
or combination of persons of any basic necessity or prime
commodity beyond his or their normal inventory levels or the
unreasonable limitation or refusal to dispose of, sell or
distribute the stocks of any basic necessity or prime
commodity to the general public or the unjustified taking out
of any basic necessity or prime commodity from the channels
of production, trade, commerce and industry. There shall be
prima facie evidence of hoarding when a person has stocks of
any basic necessity or prime commodity fifty percent (50%)
higher than his usual inventory and unreasonably limits,
refuses or fails to sell the same to the general public at
the time of discovery of the stocks. The determination of a
person's usual inventory shall be reckoned from the third
month immediately preceding before the discovery of the
stocks in case the person has been engaged in the business
for at least three (3) months; otherwise, it shall be
reckoned from the time he started his business;
(2) Profiteering, which is the sale or offering for sale of
any basic necessity or prime commodity at a price grossly in
excess of its true worth. There shall be prima facie evidence
of profiteering whenever a basic necessity or prime commodity
being sold: (a) has no price tag; (b) is misrepresented as to
its weight or measurement; (c) is adulterated or diluted; or
(d) whenever a person raises the price of any basic necessity
or prime commodity he sells or offers for sale to the general
public by more than ten percent (10%) of its price in the
immediately preceding month: Provided, That, in the case of
agricultural crops, fresh fish, fresh marine products, and
other seasonal products covered by this Act and as determined
by the implementing agency, the prima facie provision shall
not apply; and
(3) Cartel, which is any combination of or agreement
between two (2) or more persons engaged in the production,
manufacture, processing, storage, supply, distribution,
marketing, sale or disposition of any basic necessity or
prime commodity designed to artificially and unreasonably
increase or manipulate its price. There shall be prima facie
evidence of engaging in a cartel whenever two (2) or more
persons or business enterprises competing for the same market
and dealing in the same basic necessity or prime commodity,
perform uniform or complementary acts among themselves which
tend to bring about artificial and unreasonable increase in
the price of any basic necessity or prime commodity or when
they simultaneously and unreasonably increase prices on their
comnpeting products thereby lessening competition among
themselves.
SEC. 6. Automatic Price Control. -
Unless otherwise
declared by the President, prices of basic necessities in an area shall automatically be frozen at their prevailing prices
or placed under automatic price control whenever:
(1) That area is proclaimed or declared a disaster area or
under a state of calamity;
(2) That area is declared under an emergency;
(3) The privilege of the writ of habeas corpus is suspended
in that area;
(4) That area is placed tinder martial law;
(5) That area is declared to be in a state of rebellion; or
(6) A state of war is declared in that area.
If the prevailing price of any basic necessity is excessive
or unreasonable, the implementing agency may recommend to the
President the imposition of a price ceiling for the sale of
the basic necessity at a price other than its prevailing
price.
Unless sooner lifted by the President, price control of
basic necessities under this section shall remain effective
for the duration of the condition that brought it about, but
not for more than sixty (60) days.
The terms "disaster" and "calamity" shall include those
brought about by natural or man-made causes, whether local or
foreign.
SEC. 7. Mandated Price Ceiling. -
The President, upon the
recommendation of the implementing agency, or the Price
Coordi-nating Council, may impose a price ceiling on any
basic necessity or prime commodity if any of the following
conditions so warrants:
(1) The impendency, existence, or effects of a calamity;
(2) The threat, existence, or effects of an emergency;
(3) The prevalence or widespread acts of illegal price
manipulation;
(4) The impendency, existence, or effect of any event that
causes artificial and unreasonable increase in the price of
the basic necessity or prime commodity; and
(5) Whenever the prevailing price of any basic necessity or
prime commodity has risen to unreasonable levels.
SEC. 8. Determination of Price Ceilings. -
In determining
the reasonable price ceiling, the following factors may be taken into consideration:
(1) The average price, in the last three (3) months
immediately preceding the proclamation of the price ceiling,
of the basic necessity or prime commodity under
consideration;
(2) The supply available in the market;
(3) The cost to the producer, manufacturer, distributor or
seller including but not limited to:
(a) The exchange rate of the peso to the foreign currency
with which a basic necessity or prime commodity or any
component, ingredient or raw material thereof was paid for;
(b) Any change in the amortization cost of machinery
brought about by any change in the exchange rate of the peso
to the foreign currency with which the machinery was bought
through credit facilities;
(c) Any change in the cost of labor brought about by a
change in the minimum wage; and
(d) Any increase in the cost of transporting or
distributing the basic necessity or prime commodity to the
area of destination.
(4) Such other factors or conditions which will aid in
arriving at a just and reasonable price ceiling.
SEC. 9. Allocation of a Buffer Fund to the Implementing
Agency. -
The implementing agency may procure, purchase,
import, or stockpile any basic necessity or prime commodity,
devise ways and means of distributing them for sale at
reasonable prices in areas where there is shortage of supply
or a need to effect changes in its prevailing price. For any
or all of these purposes, a buffer fund shall be allocated in
the annual appropriations of the implementing agencies.
SEC. 10. Powers and Responsibilities of Implementing
Agencies. -
To carry out the intents and purposes of this
Act, the head of the implementing agency shall have the
following additional powers and responsibilities:
(1) He shall, with the approval of the President,
promulgate rules, regulations, and procedures for the
implementation of this Act;
(2) He shall develop, promulgate and implement programs,
projects or measures to promote productivity in all basic
necessities and prime commodities under his agency's
jurisdiction;
(3) He shall promote and facilitate the establishment of an
effective procurement, storage, marketing and distribution
system of basic necessities and prime commodities to ensure
their availability in all areas of the country where they are
needed;
(4) During instances of panic-buying, he may, with the
approval of the President, institute temporary measures to
ensure orderly and equitable distribution to consumers of
basic necessities and prime commodities in the affected area;
(5) From time to time, he may issue suggested reasonable
retail prices for any or all basic necessities and prime
commodities under his jurisdiction for the information and
guidance of producers, manufacturers, traders, dealers,
sellers, retailers, and consumers;
(6) He shall cause the immediate dissemination of any
mandated price ceiling for any basic necessity or prime
commodity under his agency's jurisdiction through publication
in a newspaper of general circulation in the area affected,
and through broadcast by radio, or whenever deemed to
materially make dissemination of the information more
effective, by television. He may also cause the information
to be disseminated through posting in public markets,
supermarkets or other public places;
(7) He may, upon approval of the President, and subject to
existing laws, rules and regulations on bidding, enter into
any agreement with any local or foreign producer,
manufacturer, supplier, distributor, or seller for the
procurement of supplies or stocks of any basic necessity or
prime commodity for purposes of buffer stocking: Provided,
That, in areas where there are shortages or rampant illegal
manipulation of prices, he may order their immediate sale;
(8) He may, subject to existing laws, rules and regulations
on bidding, enter into any agreement with owners or operators
of warehouses or storage houses or with owners, operators or
fran-chise holders of vehicles or public utilities for the
storage, transport, or distribution of any basic necessity or
prime commodity;
(9) He may conduct investigations of any violation of this
Act and, after due notice and hearing, impose administrative
fines in such amount as he may deem reasonable which shall in
no case be less than One thousand pesos (P1,000) nor more
than One million pesos (P1,000,000). In the imposition of
administrative fines, the following factors shall be taken
into consideration:
(a) Whether the subject of the violation is a basic
necessity or a prime commodity; violations involving basic
necessities shall be deemed more serious;
(b) Whether the subject of the violation is under price
control under Sections 6 and 7 of this Act; violations
involving basic necessities and prime commodities under price
control shall be deemed more serious;
(c) The number of violations committed; respondents who had
previously been found to have violated any of the provisions
of this Act shall be imposed a higher fine; and
(d) Such other considerations as may be deemed necessary to
carry out the intents, purposes and provisions of this Act;
(10) He may require the attendance and testimony of
witnesses or the production of goods, objects, books, papers,
documents, contracts, records, financial statements,
accounts, agreements and such other evidences material in the
determination of any violation of this Act;
(11) Without prejudice to the power to issue temporary
closure or temporary restraining order for a period which
shall not be more than ten (10) days, he may, after due
notice and hearing issue cease and desist orders; reprimand;
censure; suspend, revoke or cancel any permit, license,
authority or registration issued by hi office; or order the
permanent closure of any establishment violating the
provisions of this Act;
(12) He may initiate summary proceedings to cause the
seizure by the Government of basic necessities and prime
commodities subject of a violation of this Act and order
their sale to the public a reasonable prices whenever the
nature of or the demand for such goods so requires: Provided,
That, pending litigation, the proceeds of the sale shall be
held in trust or escrow by the implementing agency: Provided,
further, That, should the owner of the basic necessity or
prime commodity seized and sold be found not liable for the
violation which was the basis of the seizure, the proceeds
from their sale shall be paid to him, otherwise, they shall
accrue to the general fund of the Government and: Provided,
finally, That, the head of the implementing agency shall
cause the broadcast in radio or television and the
publication in at least two (2) newspapers of general
circulation of the fact of sale or disposition of such seized
goods at least three (3) days before the date of sale or
disposition;
(13) He may initiate action and cause the prosecution
before the proper court of law of violators of this Act;
(14) He may deputize and enlist the assistance of any
government official or agency in carrying out the provisions
of this Act; and
(15) Such other functions and ancillary powers as may be
necessary to effectively implement this Act.
SEC. 11. Price Coordinating Council. -
There is hereby
created a Price Coordinating Council, hereinafter referred to
as the Council, to be composed of the following members:
(1) The Secretary of Trade and Industry, as Chairman;
(2) The Secretary of Agriculture;
(3) The Secretary of Health;
(4) The Secretary of Environment and Natural Resources;
(5) The Secretary of Local Government;
(6) The Secretary of Transportation and Communications;
(7) The Secretary of Justice;
(8) The Director General of the National Economic and
Development Authority;
(9) One (1) representative from the consumers' sector;
(10) One (1) representative from the agricultural
producers' sector;
(11) One (1) representative from the trading sector; and
(12) One (1) representative from the manufacturers'
sector.
The sectoral representatives of the Price Coordinating
Council shall be appointed by the President for a term of one
(1) year, without prejudice to reappointment for another
term.
The Council shall meet every quarter and whenever the
President or the Chairman shall convene the same. Each member
shall receive reasonable reimbursements for transportation.
Members from the government sector may designate their
representative to the Council.
The Department of Trade and Industry shall provide the
secretariat to the Council from its existing organizational
structure.
SEC. 12. Functions of the Price Coordinating Council. -
The
Price Coordinating Council shall have the following
functions:
(1) It shall coordinate the productivity, distribution and
price stabilization programs, projects and measures of the
Government and develop comprehensive strategies to effect a
general stabilization of prices of basic necessities and
prime commodities at afford-able levels;
(2) It shall report to the President and to the Congress of
the Philippines the status and progress of the programs,
projects, and measures undertaken by each implementing
department, agency or office as well as the comprehensive
strategies developed by the Council to stabilize the prices
of basic necessities and prime commodities;
(3) It shall advise the President on general policy matters
for promotion and improvement in productivity, distribution
and stabilization of prices of basic necessities and prime
commodities;
(4) It may require from its members or any other government
agency such information as it may deem necessary, and conduct
public hearings for purposes of assessing the supply,
distribution and price situation of any basic necessity or
prime commodity;
(5) It shall publicize from time to time developments in
productivity, supply, distribution and prices of basic
necessities and prime commodities; and
(6) Whenever automatic price control of basic necessities
is imposed under Section 6 of this Act, it shall cause the
immediate dissemination of their prevailing prices or the
price ceilings imposed in lieu thereof, as the case may be,
through publication in a newspaper of general circulation in
the area affected, and through broadcast by radio and,
whenever the same is deeemed to materially make dissemination
of the information more effective, by television. It may also
disseminate the information through posting in public
markets, supermarkets and other public places.
SEC. 13. The Price Action Officer. -
Whenever the President
deems it necessary, he may appoint any of the members of the
Price Coordinating Council as Price Action Officer for the
duration of the automatic price control under Section 6 of
this Act who shall have the following powers and functions:
(1) He shall carry out, implement and enforce the policies
and decisions of the Council;
(2) He shall coordinate the actions of all implementing
agencies involved in the monitoring and investigation of
abnormal price movements and shortages of basic necessities
and prime commodities;
(3) He may call upon any official, agent, employee, agency or instrumentality of the national or local government for
any other assistance that he may deem necessary to carry out
the purposes of this Act;
(4) He shall establish linkages and coordinate with
nongovernment or private organizations in the affected area
to assist in the monitoring and implementation of price
control therein; and
(5) He shall exercise such other functions and duties as
may be given to him by the President.
SEC. 14. Role of the National Statistics Office. -
The
National Statistics Office shall conduct independent periodic
surveys and studies of the selling prices of all basic
necessities and prime commodities all over the country as
well as their share or effect on the family income of the
different economic groups in the country for purposes of
serving as data base for government efforts to stabilize
prices, as well as evaluating the effectivity of the same.
SEC. 15. Penalty for Acts of Illegal Price Manipulation.
Any person who commits any act of illegal price manipulation
of any basic necessity or prime commodity under Section 5
hereof shall suffer the penalty of imprisonment for a period
of not less than five (5) years nor more than fifteen (15)
years, and shall be imposed a fine of not less than Five
thousand pesos (P5,000) nor more than Two million pesos
(P2,000,000).
SEC. 16. Penalty for Violation of Price Ceilings. -
Any
person who violates Section 6 or 7 of this Act shall suffer
the penalty of imprisonment for a period of not less than one
(1) year nor more than ten (10) years, or a fine of not less
than Five thousand pesos (P5,000) nor more than One million
pesos (P1,000,000), or both, at the discretion of the court.
SEC. 17. Violation by Juridical Persons. -
Whenever any
violation of the provisions of this Act is committed by a
juridical person, its officials or employees, or in case of a
foreign corporation or association, its agent or
representative in the Philippines who are responsible for the
violation shall be held liable therefor.
SEC. 18. Violation by Aliens. -
In case of aliens, in
addition to the penalty provided in Section 15 or 16 of this
Act, the offender shall, upon conviction and after service of
sentence, be immediately deported without need of any further
proceedings.
SEC. 19. Violation by Government Officials or Employees.
-
Any public official or employee who, by reason of his
office, with or without consideration, conspires in the
commission or knowingly conceals violations of any of the provisions of this Act shall likewise be principally
responsible for the violation and shall suffer the additional
penalty of permanent disqualification to hold public office.
SEC. 20. Criminal Penalties Without Prejudice to
Administrative Sanctions. -
The foregoing criminal penalties
shall be without prejudice to the administrative sanctions
which the implementing agency may impose under this Act or
under any other law.
SEC. 21. Relation of the Price Act to Other Laws,
Presidential Issuances. -
Nothing in this Act shall be
construed as removing or diminishing the jurisdiction of any
agency of Government on certain goods or products conferred
by other laws or presidential issuances.
SEC. 22. Separability Clause. -
If, for any reason, any
provision of this Act or the application of such provision to
any person, group or circumstance is declared invalid or
unconstitutional, the remainder of this Act shall not be
affected by such declaration.
SEC, 23. Repealing Clause. -
To the extent inconsistent
with this Act, the following laws and letters of instruction
are hereby repealed:
(1) Republic Act No. 4164, entitled "An Act to Prevent the
Excessive Increase in the Price of Certain Prime Necessities
of Life on the Occasion of a Public Calamity, Penalizing the
Violation Thereof, and for other Purposes";
(2) Presidential Decree No. 1674, entitled "Providing a
Mechanism for Price Regulation, Creating a Price
Stabilization Council, Prescribing its Powers and
Responsibilities and for other Purposes;"
(3) Letter of Instruction No. 1305, entitled 'Directing
Measures to Prevent Cement Hoarding, Price Manipulation and
Profiteering";
(4) Letter of Instruction No. 1342, entitled "Ordering
Immediate Measures to Prevent Price Manipulation and to
Protect Consumers"; and
(5) Letter of Instruction No. 1359, entitied "Directing
Measures to Prevent Hoarding, Profiteering and Price
Manipulation.
All laws, and rules and regulations inconsistent herewith
are hereby likewise repealed or modified accordingly.
SEC. 24. Effectivity Clause. -
This Act shall take effect
three (3) days after its publication in two (2) national
newspapers of general circulation.
