QuestionsQuestions (BFAD BUREAU CIRCULAR NO. 4)
The Price Act covers (1) drugs classified by the DOH as essential drugs (as a Basic Commodity) and (2) drugs not classified as essential drugs (as Prime Commodity).
The text states that the DOH is the implementing agency for the provisions covering drug products, in coordination with BFAD.
They automatically freeze or are placed under automatic price control when the area is: (1) proclaimed/declared a disaster area or under a state of calamity; (2) declared under an emergency; (3) under suspension of the writ of habeas corpus; (4) placed under martial law; (5) declared in a state of rebellion; or (6) a state of war is declared in that area.
It 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, it remains effective for the duration of the condition that brought it about, but not for more than sixty (60) days.
They include disasters brought about by natural or man-made causes, whether local or foreign.
The President may impose a price ceiling on any basic necessity or prime commodity upon recommendation of the implementing agency or the Price Coordinating Council when warranted by: (1) calamity; (2) emergency; (3) illegal price manipulation; (4) an event causing artificial and unreasonable price increase; or (5) when prevailing price has risen to unreasonable levels.
Hoarding is undue accumulation beyond normal inventory levels, or unreasonable limitation/refusal to dispose/sell/distribute stocks to the general public, or unjustified removal from production/trade channels. Prima facie hoarding exists when stocks are 50% higher than usual inventory and the person unreasonably limits/refuses/fails to sell at the time of discovery.
If engaged in business for at least three (3) months: usual inventory is reckoned from the third month immediately preceding discovery. Otherwise, it is reckoned from the time the person started the business.
Profiteering is selling/offering for sale at a price grossly in excess of true worth. Prima facie evidence exists if the commodity: (a) has no price tag; (b) is misrepresented as to weight/measurement; (c) is adulterated or diluted; or (d) has a price increased by more than 10% from the price in the immediately preceding month. Agricultural crops, fresh fish, fresh marine products, and other seasonal products may be excepted as determined by the implementing agency.
Cartel is any combination or agreement among two or more persons engaged in relevant activities designed to artificially and unreasonably increase/manipulate price. Prima facie evidence exists when competing enterprises dealing in the same commodity perform uniform or complementary acts tending to cause artificial/unreasonable price increases, or simultaneously and unreasonably increase prices on competing products thereby lessening competition.
The text states that after due notice and hearing, the DOH may impose administrative fines for violations, in an amount not less than P1,000 and not more than P100,000,000.
If the complaint is filed before BFAD, BFAD will forward it to the DOH-OLA for due process and hearing, and ultimately disposition under the Price Act.
Because lack of knowledge or ignorance of the law will not excuse them from compliance with R.A. 7581 and its provisions.
When an area is declared under an emergency or proclaimed/declared as a disaster area or under a state of calamity—prices of basic necessities automatically freeze or are placed under automatic price control.