Declaration of Basic Policy
- The State ensures availability of basic necessities and prime commodities at reasonable prices without denying legitimate business a fair return.
- Protection against hoarding, profiteering, and cartels related to supply, distribution, marketing, and pricing is a declared policy.
- Measures to promote productivity, efficient transportation and distribution, price stabilization, penalties, and protective mechanisms during calamities or emergencies are mandated.
Definition of Terms
- "Basic necessities" covers staple foods, essential drugs, and daily household items.
- "Prime commodities" includes a broader range of food, construction materials, and other important goods.
- Key terms such as hoarding, profiteering, panic-buying, price ceiling, and buffer fund are defined for clarity and enforcement.
- "Implementing agency" is assigned per commodity category (e.g., Agriculture for crops, Health for drugs).
Exclusion from Coverage
- Certain types or brands may be excluded as nonessential or luxury goods after petition and public hearing, subject to presidential approval.
- Excluded goods may be reinstated during acute shortages.
Illegal Acts of Price Manipulation
- Includes hoarding: accumulation beyond normal inventory and refusal to sell, with prima facie evidence if inventory is 50% above usual.
- Profiteering: sale at prices grossly above true worth or specific acts such as mislabeling or raising prices >10% from prior month.
- Cartel behavior: agreements between competitors to manipulate prices, evidenced by uniform or complementary acts leading to artificial price increases.
Automatic Price Control
- Triggered automatically in areas under calamity, emergency, suspension of habeas corpus, martial law, rebellion, or war.
- Prices freeze at prevailing rates or alternative price ceilings set by the President.
- Control period lasts maximum 60 days unless lifted earlier.
Mandated Price Ceiling
- The President may impose price ceilings on recommendation of implementing agencies or Price Coordinating Council based on calamities, emergencies, illegal price manipulation, artificial price hikes, or unreasonable prevailing prices.
Determination of Price Ceilings
- Factors considered:
- Average prices during the prior three months
- Available supply in the market
- Costs to producers, including exchange rates, labor costs, transportation
- Other relevant factors to ensure just and reasonable pricing
Allocation of Buffer Fund
- Implementing agencies are allocated funds in their annual budget to procure and distribute basic necessities and prime commodities during shortages or to stabilize prices.
Powers and Responsibilities of Implementing Agencies
- Promulgate rules and programs for productivity and price stabilization.
- Facilitate effective procurement, storage, marketing, and distribution.
- Institute temporary measures against panic-buying.
- Issue suggested retail prices and disseminate mandated price ceilings.
- Enter into procurement and logistic agreements subject to bidding rules.
- Conduct investigations and impose administrative fines from P1,000 up to P1,000,000 based on severity and nature of violation.
- Require witness testimony and documents; impose cease and desist orders, suspend/revoke licenses, or close establishments.
- Seize and sell goods involved in violations with proceeds held in escrow.
- Initiate criminal prosecution and deputize government officials.
Price Coordinating Council (PCC)
- Composed of Cabinet Secretaries from Trade and Industry (Chairman), Agriculture, Health, Environment, Local Government, Transportation, Justice, the NEDA Director General, and consumer, producer, trading, and manufacturer representatives.
- Meets quarterly or as convened, with secretariat from the Department of Trade and Industry.
Functions of the Price Coordinating Council
- Coordinate government programs on productivity, distribution, and price stabilization.
- Advise the President on policy matters.
- Report status and progress to the President and Congress.
- Conduct public hearings and require information from agencies.
- Publicize developments and disseminate information on price controls.
Price Action Officer
- Appointed by the President during automatic price control periods.
- Implements Council policies, coordinates agencies, calls for assistance from government and private sectors.
Role of the National Statistics Office
- Conducts independent surveys on prices and their impact on family income for data-driven policy and monitoring.
Penalties for Illegal Acts
- Price manipulation: imprisonment 5-15 years and fines P5,000 to P2,000,000.
- Violation of price ceilings: imprisonment 1-10 years and fines P5,000 to P1,000,000 or both.
- Juridical persons held liable through responsible officials.
- Aliens face deportation after conviction.
- Public officials conspiring or concealing violations face additional penalty of permanent disqualification from public office.
Administrative Sanctions
- Criminal penalties supplement, not replace, administrative sanctions such as fines and closure.
Relation to Other Laws
- This Act does not diminish jurisdiction of other government agencies under existing laws or presidential issuances.
Separability Clause
- Invalidity of any provision does not affect the rest of the Act.
Repealing Clause
- Repeals inconsistent laws and letters of instruction related to price regulation and stabilization.
Effectivity Clause
- The Act takes effect three days after publication in two national newspapers.