Question & AnswerQ&A (Republic Act No. 2610)
The national policy is to protect consumers during periods of short supply or unreasonable price levels by preventing scarcity, monopolization, hoarding, injurious speculation, manipulation, and profiteering affecting the supply, distribution, and movement of essential commodities.
The President of the Philippines is authorized to establish maximum prices for commodities by executive order upon certification from the National Economic Council.
The Act covers foodstuffs, textile, clothing, drugs, medicines, paper products, school supplies, construction materials, agricultural and industrial machinery and their spare parts, fertilizers, insecticides, weedicides, fuel, lubricants, and other commodities deemed essential to public interest.
An abnormal price level exists when the retail or wholesale price of a commodity rises to an unreasonable level considering the public interest, procurement cost, and fair profit margins.
Factors include estimated supply available in the market, cost of production or landed cost and taxes if imported, cost of distribution (transportation, storage, salaries), and a reasonable margin of profit.
The Price Administration Board assists the President in the execution of the Act, potentially composed of a Chairman/Price Administrator, representatives from production, distribution, consumers, labor, government officials, and has the authority to enforce the Act.
Imprisonment of not less than two years nor more than ten years and/or a fine of not less than two thousand pesos nor more than ten thousand pesos, with additional penalties such as blacklisting for importers and confiscation of merchandise.
They are held criminally liable as co-principals, with penalties including imprisonment and perpetual absolute disqualification from holding public office.
They must submit, under oath, a complete inventory of stocks worth at least P1,000 within 15 days after price control is enforced, declare subsequent shipments within 5 days of receipt, and submit monthly sales reports to the designated Agency or Board.
Authorized deputies may examine bills, records, and invoices with written authority, issue subpoenas, and inspect premises under search warrants to enforce price control provisions.