Title
Price Control and Maximum Selling Price Act
Law
Republic Act No. 6361
Decision Date
Jul 27, 1971
The Price Control Law in the Philippines aims to prevent monopoly and profiteering by fixing maximum prices for essential commodities, with violators facing imprisonment and fines.

Establishment and Composition of the Price Control Council

  • Council composed of key government secretaries and representatives of consumers
  • Consumer representatives from government employees, private labor sector, and women’s organizations
  • Members appointed by the President with Commission on Appointments' consent
  • Qualifications: natural-born Filipino, at least 30 years old, no ties to controlled industries
  • Quorum and voting requirements specified
  • Consumer representatives receive limited per diem compensation
  • Bureau of Commerce provides staff support
  • Members must submit statement of assets and interests upon assumption of office
  • Local price councils established in provinces and cities, supervised by the main Council

Continuation and Review of Existing Price Controls

  • Existing maximum prices as of June 30, 1971, continue immediately
  • Council may modify prices following petitions and within a specified period

Criteria and Procedure for Fixing Maximum Prices

  • Price increase trigger: 20% rise or threat over March 1, 1970 prices
  • Council to hold notice and hearing before setting fair and reasonable maximum prices
  • Maximum prices based on production or landed cost plus regulated mark-ups
  • Detailed factors considered in cost computation, including labor, raw materials, transportation, and interest
  • Prices effective ten days after publication in two newspapers
  • Definition and limits on production and marketing costs, excluding certain taxes and excessive marketing expenses

Measures to Address Short Supply

  • Council may certify shortage to obtain foreign exchange for raw materials or commodities
  • Recommendations made to the Monetary Board and Central Bank for import support
  • Government agencies authorized to import directly if market prices remain volatile

Rulemaking, Enforcement Powers, and Transparency

  • Council empowered to promulgate necessary rules with Presidential approval
  • Requirements for public notice and posting of rules
  • Authority to issue subpoenas and demand relevant tax returns for investigation
  • Quarterly reporting obligation to Congress

Penalties for Violations

  • Imprisonment of 6 months to 5 years, fines from P2,000 to P20,000, or both
  • Additional deportation for alien offenders after sentence served
  • Corporate officers liable if they knowingly allow violations
  • Government officials aiding violations face penalties plus perpetual ineligibility for public office
  • Penalties also for unauthorized disclosure of confidential business information

Separability Clause

  • Invalidity of any provision does not affect the rest of the Act

Appropriations and Government Assistance

  • Initial funding established from General Fund for operating expenses
  • Limits on personal services expenditure
  • Government agencies required to assist Council and Bureau of Commerce when requested

Finality and Judicial Review

  • Council's factual decisions final and executory
  • Legal questions subject to Supreme Court review via certiorari

Effectivity and Duration

  • Act took effect upon approval and valid until June 30, 1973
  • Convictions and prosecutions continue beyond expiration until legally terminated

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