Title
Anti-Hoarding and Price Manipulation Measures
Law
Letter Of Instructions No. 1859
Decision Date
Oct 12, 1983
A 1983 law issued by President Ferdinand Marcos aims to prevent hoarding, profiteering, and price manipulation of essential commodities in the Philippines, with defined terms and assigned responsibilities to relevant government agencies, imposing penalties such as imprisonment, fines, and forfeiture of products involved, while also allowing for administrative penalties, providing necessary authority and responsibilities for effective implementation and enforcement.

Definitions of Key Terms

  • Prime and Essential Commodities: Broad range of goods considered critical to public welfare and economic stability.
  • Hoarding: Undue accumulation beyond normal inventory or unjust refusal to sell/distribute, including removing goods from trade channels.
  • Profiteering: Selling goods at prices that are fraudulently or excessively high relative to intrinsic value.
  • Price Manipulation: Artificial inflation or deflation of prices by those capable of influencing market prices.

Powers and Duties of the Minister of Trade and Industry

  • Authorized to implement measures to prevent hoarding, profiteering, and price manipulation.
  • May deputize other ministries, agencies, and local government units to assist in enforcement.

Role of Local Governments and Law Enforcement

  • Local government units must report cases upon deputization by the Minister of Trade and Industry.
  • The Armed Forces' Chief of Staff directs law enforcement to apprehend violators.

Prosecutorial Responsibility

  • The Ministry of Justice is mandated to prosecute offenders with full application of the law.

Penalties for Hoarding, Profiteering, and Price Manipulation

  • Imprisonment: Minimum of 6 months to maximum of 5 years.
  • Fines ranging from PHP 2,000 to PHP 20,000.
  • Forfeiture of the commodities involved.
  • Additional penalties for aliens including immediate deportation after serving sentence.
  • Naturalized citizens lose citizenship and face deportation post sentence.
  • Corporate officers responsible for violations by their entities are criminally liable.

Administrative Sanctions Imposable by the Minister

  • Cease and desist orders.
  • Voluntary assurances of compliance or discontinuance.
  • Seizure of offending products.
  • Administrative fines from PHP 500 up to PHP 100,000 plus PHP 500 per day of continued violation.
  • Cancellation or suspension (up to 1 year) of permits, licenses, authority, or registrations.
  • Withholding of permits or licenses being applied for.
  • Censure and other analogous sanctions.

Effectivity

  • The instructions take effect immediately upon issuance, emphasizing swift government action to maintain market stability and protect consumers against exploitative practices.

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