Question & AnswerQ&A (Republic Act No. 7581)
The short title of Republic Act No. 7581 is the "Price Act."
The State's policy is to ensure the availability of basic necessities and prime commodities at reasonable prices at all times while providing protection against hoarding, profiteering, and cartels, especially during emergencies or similar situations.
Basic necessities include rice, corn, bread, fresh, dried and canned fish and 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.
Prime commodities include fresh fruits, flour, dried, processed and canned pork, beef and poultry meat, dairy products not classified as basic necessities, noodles, onions, garlic, vinegar, patis, soy sauce, toilet soap, fertilizer, pesticides, herbicides, poultry, swine and cattle feeds, veterinary products, 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.
The implementing agencies include the Department of Agriculture, Department of Health, Department of Environment and Natural Resources, and Department of Trade and Industry, each having jurisdiction over specific basic necessities and prime commodities.
Illegal acts include hoarding (undue accumulation beyond normal inventory), profiteering (selling at prices grossly in excess of true worth), and cartel (agreements to artificially increase or manipulate prices among competitors).
Any person committing illegal price manipulation shall face imprisonment for 5 to 15 years and a fine ranging from Five thousand pesos (P5,000) to Two million pesos (P2,000,000).
Automatic price control is imposed when an area is declared a disaster area, under a state of calamity, emergency, suspension of the writ of habeas corpus, martial law, state of rebellion, or state of war.
The head of the implementing agency can promulgate rules, develop productivity programs, institute temporary consumer distribution measures, issue suggested retail prices, conduct investigations and impose administrative fines, order closure or seizure of goods, and initiate prosecution of violators.
The Price Coordinating Council coordinates government programs for price stabilization, advises the President on policy, reports on progress, publicizes developments in supply and price, and disseminates price control information during automatic price control periods.
Violators are penalized with imprisonment from 1 to 10 years, a fine between Five thousand pesos (P5,000) and One million pesos (P1,000,000), or both, as decided by the court.
When a juridical person commits a violation, its responsible officials, employees, agents or representatives in the Philippines are held liable for the violation.
They are subject to the penalties for the violation plus permanent disqualification from holding public office.
The President may exclude types or brands deemed nonessential or luxury goods upon petition and public hearing, but these may be reinstated during acute shortages.
The buffer fund is a contingent fund allocated to the implementing agencies to procure, purchase, import, or stockpile basic necessities or prime commodities to stabilize supply and prices during emergencies or shortages.