National policy and coverage of commodities
- Section 1 declares national policy to prevent monopoly, hoarding, injurious speculation, manipulation, and profiteering regarding the supply, distribution, and marketing of specified essential commodities.
- Section 1 covers essential commodities whether imported or locally produced or manufactured.
- Section 1 enumerates the commodities subject to price control as:
- Medicines, drugs and surgical supplies;
- Food and foodstuffs;
- Clothes, clothing, and sewing and weaving material; and supplies;
- Fuels and lubricants;
- Construction materials;
- Educational supplies and equipment;
- Fertilizers, insecticides, pesticides and other agricultural inputs.
- Section 1 directs the fixing of maximum prices consistent with the State’s policies to increase production and productivity.
Price Control Council: creation and composition
- Section 2 creates a Price Control Council (the “Council”) to implement the Act.
- Section 2 provides the Council’s membership includes:
- The Secretary of Commerce and Industry;
- The Secretary of Agriculture and Natural Resources;
- The Secretary of Health;
- The Chairman of the National Economic Council;
- A representative of consumers appointed by the President with the consent of the Commission on Appointments.
- Section 2 requires the consumer representative to be:
- A natural-born Filipino citizen;
- At least thirty years of age;
- Not connected with production, supply, distribution, or marketing of any items listed in Section 1.
- Section 2 allows the named government officials (except the Chairman) to authorize their respective undersecretaries or deputies to represent them in Council meetings.
- Section 2 provides quorum and voting rules:
- A majority constitutes quorum; and
- three affirmative votes are necessary for any action or decision of the Council.
- Section 2 provides governance and staffing:
- The Council elects the Chairman from among themselves;
- The Director of Commerce serves as Executive Director; and
- The Bureau of Commerce provides staff support.
Local price councils and supervision
- Section 2 requires local price councils in each province and chartered city.
- Section 2 mandates local price councils’ composition, functions, and scope of authority are determined by the Council.
- Section 2 places local price councils under the Council’s immediate control and supervision.
Triggers for maximum price fixing
- Section 3 authorizes the Council to act when the market price of any commodity in Section 1:
- Has risen, or threatens to rise, by 20% or more over its price on March 1, 1969; or
- Should be reduced because the prevailing price has risen due to monopoly, hoarding, injurious speculation, manipulation, and profiteering.
- Section 3 requires the Council to establish or order maximum prices after notice and hearing.
- Section 3 requires the maximum price be fair, just, and reasonable.
- Section 3 sets the statutory price ceiling formulas based on whether commodities are locally manufactured or imported:
- For locally manufactured articles:
- Not to exceed production cost plus 10% markup to the manufacturer or producer;
- Plus 5% to the wholesaler; and
- Plus 10% to the retailer.
- For imported articles:
- Not to exceed landed cost plus 5% markup to the importer or indentor;
- Plus 5% to the wholesaler; and
- Plus 10% to the retailer.
- For locally manufactured articles:
Publication and effect of maximum prices
- Section 3 provides that prices fixed by the Council become effective ten days after publication.
- Section 3 requires publication in two newspapers of general circulation in the Philippines:
- One in English; and
- One in the National language.
Short-supply measures and foreign exchange recommendations
- Section 4 provides that when any commodity in Section 1 is in short supply, the Council must, after notice and hearing, certify needs of local producers or manufacturers.
- Section 4 requires the Council, based on its certification, to recommend to the Monetary Board that the Central Bank make available foreign exchange to import adequate raw materials and supplies necessary to produce or manufacture the quantity required to cover the shortage.
- Section 4 provides a second certification pathway when:
- The commodity in short supply is not locally produced or manufactured; or
- Local producers or manufacturers cannot fully cover the shortage.
- Section 4 mandates that in the second case the Council certifies the shortage or deficiency and recommends to the Monetary Board that the Central Bank make available foreign exchange to import the quantity required to cover the shortage.
- Section 4 authorizes escalation if market price rises persist despite these measures:
- The Council, after notice and hearing, may recommend; and
- The President may authorize any government agency, including government-owned or controlled corporations except government financial institutions, to import directly the commodity for distribution in the local market through channels chosen for the purpose.
Rules, regulations, approvals, and posting
- Section 5 requires the Council to promulgate rules or regulations necessary for effective implementation.
- Section 5 makes Council rules and regulations subject to approval of the President.
- Section 5 provides rules take effect fifteen days after publication once a week for two consecutive weeks in at least two newspapers:
- One in English; and
- Another in the National Language;
- Both of general circulation in the Philippines.
- Section 5 mandates posting of rules at the entrance of the City Hall or Municipal Building of each city, municipality, or municipal district, in English and in the local dialect.
Prohibited acts and criminal penalties
- Section 6 imposes criminal liability on any person who sells a commodity in excess of the maximum selling price established by the Council.
- Section 6 imposes criminal liability on any person who violates any provision of the Act or any order, rule, or regulation issued pursuant to it.
- Section 6 sets the penalty as:
- Imprisonment of not less than two months nor more than five years; or
- A fine of not less than PHP 2,000 nor more than PHP 20,000; or
- Both, at the court’s imposition under the law.
- Section 6 provides a special rule for aliens: in addition to the penalty, upon conviction and after service of sentence, the offender shall be immediately deported without further proceedings.
- Section 6 provides corporate/association liability: when an offense is committed by a corporation or association, the President and each director or manager, or its agent or representative in the Philippines for a foreign corporation or association, who knowingly permitted or failed to prevent the offense, is held liable as principal.
- Section 6 imposes special criminal and disqualification consequences on government officials and employees:
- Any government official or employee who, by neglect or connivance, aided or abetted the violation or circumvention is criminally liable as co-principal and must suffer perpetual absolute disqualification to hold public office.
- Any government official or employee authorized by the Council who divulges or makes known, beyond lawful authority, confidential information regarding income, method of operation, or other confidential business information acquired in official discharge must be punished by both:
- A fine of not less than PHP 2,000 nor more than PHP 20,000; and
- Imprisonment of not less than two years nor more than five years.
Separability, funding, and duration
- Section 7 provides that if any provision of the Act or its applicability is held invalid, the validity of the remaining provisions and their applicability to other persons or circumstances is not affected.
- Section 8 authorizes the President to allot from the unprogrammed appropriations for the Executive Departments from the General Fund under Republic Act No. 6050:
- PHP 250,000 for necessary operating expenses during the fiscal year ending June 30, 1970; and
- PHP 500,000 for the same purpose during the fiscal year ending June 30, 1971.
- Section 8 limits spending for personal services: not more than PHP 100,000 may be spent for personal services for a full year.
- Section 8 allows the Council and the Bureau of Commerce to call upon any government official, agent, employee, agency, or instrumentality for staff or assistance necessary to carry out the Act, and requires that such assignment and assistance be provided with the approval of the President.
- Section 9 provides the Act continues until June 30, 1971 and preserves prosecution and enforceability of convictions for offenses committed during its effectivity.