Question & AnswerQ&A (DTI, DA, DOH, DENR JOINT ADMINISTRATIVE ORDER NO. 1-93)
The main policy objective is to ensure the availability of basic necessities and prime commodities at reasonable prices at all times while protecting consumers from hoarding, profiteering, and cartels, especially during calamities, emergencies, and widespread illegal manipulation.
Persons include both natural persons and juridical persons.
The implementing agencies are: Department of Agriculture (agricultural crops, fish, fresh meat, poultry, dairy, fertilizers, farm inputs), Department of Health (drugs), Department of Environment and Natural Resources (wood and forest products), and Department of Trade and Industry (all other basic necessities and prime commodities).
Basic necessities include essential goods such as rice, fresh eggs, fresh pork, fresh milk, cooking oil, fresh vegetables, sugar, salt, laundry soap, and essential drugs classified by DOH.
Illegal acts of price manipulation include hoarding, profiteering, and forming cartels by persons engaged in production, manufacture, importation, storage, transport, distribution, or sale of basic necessities and prime commodities.
They may institute temporary measures with presidential approval such as establishing accredited retail outlets, rationing household purchases, and other measures to assure fair consumer access.
Upon petition and public hearing, goods deemed non-essential or luxury may be excluded, but these can be reinstated during acute shortages.
Penalties include temporary or permanent closure of establishments, confiscation of goods and paraphernalia, suspension or cancellation of permits, cease and desist orders, censure, reprimand, and fines ranging from P1,000 to P1,000,000.
Imprisonment from five to fifteen years and fines of P5,000 to P2,000,000.
Profiteering is selling any basic necessity or prime commodity at a price grossly exceeding its true worth, specifically if the price is raised more than 10% compared to the previous month.
The implementing agency may seize commodities subject to violations after inventory and safekeeping, especially when items are perishable or in short supply; the seizure must be inventoryd with witnesses and proceeds held in trust pending litigation.
Automatic price control freezes prices at prevailing levels in areas declared under state of disaster, emergency, rebellion, war, or suspension of writ of habeas corpus unless the President declares otherwise.
Hoarding is the undue accumulation beyond normal inventory, unreasonable limitation or refusal to sell or distribute, or unjustifiable removal of commodities from the channels of trade.
The PCC coordinates, monitors, rationalizes programs of member agencies and local councils to promote productivity, improve distribution, and protect consumers during emergencies and price instabilities.
LPCCs coordinate local implementation, recommend price ceilings and suggested retail prices, analyze causes of price fluctuations, and recommend remedial actions.