Question & AnswerQ&A (Republic Act No. 6361)
The primary national policy is to prevent monopoly, hoarding, injurious speculation, manipulation, and profiteering in the supply, distribution, and marketing of essential articles or commodities and to fix their maximum prices to protect public interest.
The commodities include medicines, essential food and foodstuffs, animal and poultry feeds, clothes and sewing materials, fuels and petroleum products, construction materials, educational supplies, fertilizers and agricultural inputs, motor vehicles and spare parts, household necessities, and footwear among others.
The Council is composed of the Secretary of Commerce and Industry, Secretary of Agriculture and Natural Resources, Secretary of Health, Chairman of the National Economic Council, and three consumer representatives from nominated government employees, private labor sector, and women’s organizations appointed by the President with consent from the Commission on Appointments.
They must be natural-born Filipino citizens, at least 30 years old, and not connected with the production, supply, distribution, or marketing of the commodities listed in Section 1.
The penalty is imprisonment from six months to five years or a fine ranging from two thousand to twenty thousand pesos, or both. Aliens convicted will additionally be deported after serving their sentence.
The president, directors, managers, agents, or representatives who knowingly permit or fail to prevent the offense will be held liable as principals and punished accordingly.
The Council may issue subpoenas and subpoena duces tecum, require the Bureau of Internal Revenue to submit relevant tax returns, and promulgate necessary rules subject to the President's approval for effective implementation.
Maximum prices shall not exceed the production or acquisition cost plus reasonable mark-ups (10% for manufacturers, 5% for wholesalers, 10% for retailers) and consider various cost factors such as raw materials, labor, transportation, and effects of floating exchange rates.
Prices fixed by the Council become effective ten days after being published in two newspapers of general circulation, one in English and one in the National Language.
Authorized agents who divulge confidential business information not sanctioned by law face a fine of ₱2,000 to ₱20,000 and imprisonment of two to five years.
The Act takes effect upon approval and remains in force until June 30, 1973, but convictions and prosecutions for offenses committed during its effectivity remain enforceable even after expiration.