Question & AnswerQ&A (Republic Act No. 509)
The national policy is to prevent scarcity, monopolization, hoarding, injurious speculation, manipulation, and profiteering that affect the supply, distribution, and movement of essential commodities, by controlling their prices.
Commodities include imported and locally manufactured or produced foodstuffs, textiles, clothing, fuel, light, illumination, footwear, drugs, medicines, medical, dental and optical supplies, paper, school supplies, building materials, agricultural and industrial machinery, lubricants, and other goods deemed essential to public interest.
The Price Administration Board is created, composed of a Chairman, a Vice-Chairman (who acts as Price Administrator and General Manager of the Philippine Relief and Trade Rehabilitation Administration), and three members representing consumers, producers, and distributors, all appointed by the President with the Commission on Appointments' consent.
Upon recommendation of the Price Administration Board (and the Rice Emergency Board for palay, rice, and corn), the President fixes maximum prices taking into account speculative fluctuations, costs of production, distribution, transportation, storage, and other factors, ensuring prices are fair, reasonable, and equitable.
They can examine invoices, books, records; inspect premises with search warrants; subpoena witnesses; and enforce compliance through courts. They may also seize excess stock and prosecute violators.
They must file an inventory of stocks under oath within 30 days post-approval, declare shipments within 5 days after receiving shipping documents, and submit monthly sales reports under oath to the Price Administration Board or its authorized representative.
Hoarding is the possession or control of excess stock beyond reported quantities. It is punishable by criminal prosecution, confiscation of excess stock as state property, and possible additional penalties upon conviction.
Retailers must post a list of controlled articles with prices in a conspicuous place and attach price tags to displayed merchandise. Displayed goods are deemed offered for sale, and refusal to sell such goods is prohibited.
Penalties include imprisonment (2 months to 12 years), fines (2,000 to 10,000 pesos), or both, with disqualification from doing wholesale or retail business for repeated offenses. Aliens are subject to deportation upon conviction.
Informers not in authority are entitled to 20% reward from confiscated merchandise value or fines collected. The identity of informers is protected, and unauthorized disclosure by government personnel is punishable by fines and imprisonment.