Price Control Office created
- Section 2 creates in the Price Stabilization Corporation (PRISCO) a Price Control Office tasked with enforcement of Republic Act No. 1168 and the orders, rules and regulations issued under it.
- Section 2 places the Price Control Office under the control and supervision of the General Manager of PRISCO, subject to rules and regulations prescribed by the Board of Directors.
- Section 2 provides compensation of seven thousand two hundred pesos per annum for the Chief of the Price Control Office, who must be appointed by the General Manager of PRISCO with the approval of the Board of Directors.
- Section 2 provides that the other officials and personnel of the Price Control Office shall be appointed, with their compensation fixed, by the General Manager of PRISCO with the approval of the Board of Directors.
Baseline maximum prices
- Section 3 sets the general rule that the maximum prices are the maximum price prevailing on December 31, 1953.
- Section 3 requires that the prevailing controlled price must be the one fixed under Republic Act No. 509, as amended by Republic Act No. 729.
- Section 3 applies unless the Act is modified through the mechanism provided in Republic Act No. 1168.
When and how maximum prices change
- Section 4 authorizes price regulation when the market price has risen or threatens to rise beyond the prevailing controlled price, or when circumstances clearly justify a reduction in the prevailing controlled price.
- Section 4 requires that the President of the Philippines, upon the recommendation of the General Manager and the Board of Directors of PRISCO, shall establish by regulation or order a maximum price generally fair, just, and reasonable.
- Section 4 directs the President to promulgate rules and regulations deemed necessary to effectuate the Act’s purposes.
- Section 4 mandates that maximum prices be determined by considering:
- the average prevailing price of the commodity during the preceding quarter of the year;
- the estimated supply available in the market;
- cost of production if produced locally, or landed cost if imported;
- cost of distribution, including transportation, storing and selling; and
- a reasonable margin of profit to ensure continuous supply.
- Section 4 requires the General Manager to use Central Bank index numbers of prices, production, and importation of the covered commodities; if inadequate, the General Manager may request additional index numbers from the Central Bank.
- Section 4 provides a publication effectivity rule: Presidential rules, regulations or orders take effect within 15 days after their publication in a newspaper of general circulation in the Philippines.
Enforcement powers and judicial support
- Section 5 grants the Price Control Office power to facilitate determination and enforcement of maximum selling prices.
- Section 5 authorizes the Price Control Office, directly or through deputized government agencies, officials, or employees, to examine bills of lading, bills of sales, invoices, books, records and other pertinent documents owned or in the possession of an importer, producer, manufacturer, wholesaler, or retailer.
- Section 5 authorizes the Price Control Office to issue subpoena or subpoena duces tecum to require any person to appear and testify, or to appear and produce books and records, or both.
- Section 5 authorizes inspection of premises, bodegas, or storerooms upon issuance of a search warrant by a competent court, to inspect stocks of controlled commodities and the related documents and papers.
- Section 5 provides contumacy/refusal consequences: if a person refuses to obey a subpoena or subpoena duces tecum, the municipal court or the justice of the peace court of the city or municipality where the person is found or resides or transacts business may, on application and after notice and hearing, order the person to appear and give testimony or produce books and writings; failure to obey the order is punished as contempt by a fine of not more than 600 pesos or imprisonment of not more than 6 months, or both.
Mandatory inventories and reporting
- Section 6 requires that within 30 days after approval of the Act, all importers, manufacturers or producers, wholesalers, and retailers of covered commodities file with the Price Control Office a complete and true inventory of their stock, sworn under oath.
- Section 6 requires importers to declare expected shipments under oath to the Price Control Office (or its authorized representative) within 5 days after receipt of the corresponding bills of lading and other shipping documents.
- Section 6 deems all merchandise reported as required by the Act to be offered for sale.
- Section 6 requires importers, manufacturers or producers, and wholesalers of covered categories whose prices have been placed under control to transmit a monthly report of their sales under oath to the Price Control Office (or its authorized representative).
Retail selling rules
- Section 7 requires all persons engaged in retail sale of controlled-price commodities to post in a conspicuous place in their establishment, store, or stall a list of all such commodities displayed and offered for sale, with their corresponding prices.
- Section 7 requires attaching price tags to the merchandise in a manner within plain view of the public.
- Section 7 imposes a sales obligation: no person engaged in retail trade may refuse to sell any controlled merchandise.
PRISCO importation for shortages
- Section 8 authorizes PRISCO, with the approval of the President, to import directly a covered commodity for local distribution.
- Section 8 authorizes importation when a covered commodity is in short supply, or when there exist reasonable ground to believe it will disappear in the open market, or when there is an uncontrolled inflation of prices.
- Section 8 allows PRISCO to distribute through channels it chooses.
Criminal penalties and disqualifications
- Section 9 imposes imprisonment of not less than 2 months nor more than 5 years or a fine of not less than 200 pesos nor more than 5,000 pesos, or both, for selling any covered commodity in excess of the maximum selling price.
- Section 9 imposes the same penalty range for hoarding or keeping controlled-commodity quantities in excess of the quantities reported.
- Section 9 imposes the same penalty range for refusing to sell any merchandise kept as a wholesaler or retailer in an establishment, store, or stall, whether the merchandise is displayed or not.
- Section 9 imposes the same penalty range for transferring or making a false or fictitious sale of controlled merchandise to defeat the Act.
- Section 9 imposes the same penalty range for failing or refusing to file the required inventory and/or failing to transmit copies of bills of lading or bills of sale, and for violating any provision of the Act or any order, rule, or regulation issued pursuant to it.
- Section 9 provides an alien-specific consequence: for aliens, after final conviction, the offender is subject to immediate deportation without the necessity of any further proceedings on the part of the Deportation Board.
- Section 9 provides corporate/organizational liability: for corporations, partnerships or associations, the President, managing director or manager is held liable under the section.
- Section 9 imposes business bans in addition to the prescribed penalties: persons or entities found guilty are barred from wholesale and retail business for 5 years for a first offense and permanently barred for the second or succeeding offenses.
- Section 9 imposes criminal co-principal liability on government officers or employees who, by neglect or connivance, enable concealment, hiding, transfer of stock, or in any manner aid or abet violation or circumvention; they suffer perpetual absolute disqualification to hold public office in addition to criminal liability.
- Section 9 penalizes unauthorized disclosure by authorized agents: a government officer or employee authorized by the Price Control Office who divulges or makes known information regarding income, method of operation, or other confidential information required in the course of official duties is punished by both:
- a fine of not less than 200 pesos nor more than 5,000 pesos; and
- imprisonment of not less than 2 years nor more than 5 years.
Government deputization and enforcement
- Section 10 requires all officer, agent, employees, agencies and instrumentalities of the Government to act as deputies and agents without extra compensation when required by the Price Control Office to carry out and enforce the Act.
Separability, appropriation, and effectivity
- Section 11 provides separability: if any provision or its applicability is held invalid, the remainder of the Act and the applicability to other persons or circumstances remain valid.
- Section 12 appropriates PHP 200,000 (or so much thereof as may be necessary) from National Treasury funds not otherwise appropriated exclusively to enable the Price Control Office to carry out the Act.
- Section 13 provides effectivity: the Act takes effect upon June 18, 1954 (its approval date).
- Section 13 provides a fixed expiration: the Act continues in force until February 15, 1955.
- Section 13 preserves prosecutions and convictions: convictions rendered under the Act or rules issued under it remain valid and enforceable; prosecutions of offenses committed during the Act’s effectivity continue and are not barred until terminated by conviction or acquittal.