QuestionsQuestions (LETTER OF INSTRUCTIONS No. 1859)
LOI No. 1859 cites Act No. 4164 as the law penalizing hoarding/profiteering/price manipulation on the occasion of a public calamity, and Presidential Decree (P.D.) No. 1674 for measures to check price manipulation and to penalize violations of orders issued pursuant thereto.
It includes essential foods and foodstuffs (e.g., milk, rice, corn, meat and poultry, cooking oil, flour, sugar), medicines and pharmaceutical preparations, animal and poultry feeds, building and construction materials, textiles and garments, educational/office supplies and equipment, fertilizers/insecticides/pesticides and other agricultural inputs, laundry soap and other detergents, household utensils/appliances/necessities, motor vehicle spare parts/tires/batteries/engines/machineries, basic mineral products (iron/steel/copper/tinplates), footwear (and components), and such other commodities as the Minister may determine after due publication.
Hoarding is the undue accumulation by a businessman beyond normal inventory levels and/or unjustified refusal to dispose/sell/distribute to consumers; or unreasonable accumulation by a person/entity other than a businessman; or storing/collecting/keeping/hiding essential or prime commodities or taking them out of the channels of trade and commerce.
Profiteering is the selling or offering for sale of any article/commodity with the intent to obtain a fraudulent or grossly excessive price over the true or intrinsic worth of the article/commodity.
It is the artificial advancing and depressing of prices by those who have the ability to do so by certain devices.
The Minister of Trade and Industry is authorized to adopt and implement necessary measures to prevent hoarding, profiteering, and price manipulation, including deputizing or enlisting the assistance of other ministries/agencies and local government units.
Upon deputization by the Minister of Trade and Industry, they must report cases of hoarding, profiteering, and price manipulation to law enforcement agencies.
He must direct the law enforcement agencies to apprehend those engaged in hoarding, profiteering, and price manipulation.
The Ministry of Justice is tasked to prosecute those engaged in hoarding, profiteering, and price manipulation “full force of law.”
Imprisonment of not less than six (6) months nor more than five (5) years, or a fine of not less than PHP 2,000 but not more than PHP 20,000, or both at the discretion of the court, plus forfeiture of the products which are the subject of the offense.
In addition to the penalties, aliens are to be immediately deported upon conviction and after service of sentence, without further proceedings.
In addition to the penalties, naturalized citizens automatically lose their naturalization and are immediately deported upon service of sentence, after which their naturalization status is withdrawn by operation of the LOI.
For a firm or corporation, the President or Manager thereof shall be criminally responsible by the act of such firm or corporation.
The forfeiture of the products which are the subject of the offense.
Examples include: cease and desist order; voluntary assurance of compliance; seizure of products; administrative fines (not less than PHP 500 nor more than PHP 100,000 plus up to PHP 500 per day of continuing violation per Executive Order 913); cancellation/suspension of permits/licenses/registrations; withholding permits/licenses/registrations being secured; censure; and other analogous sanctions.
Administrative fines may be imposed from at least PHP 500 up to PHP 100,000, plus not more than PHP 500 for each day of continuing violation, as provided in Executive Order 913.
It states that the Letter of Instructions shall take effect “intermediately,” i.e., not explicitly immediately; it indicates a particular interim mode of effectivity as expressed in the text.
The LOI states that these practices hamper the economical and steady flow of prime and essential commodities to consumers and are inimical to public interest, especially during emergencies affecting the public welfare.