Law Summary
Key Definitions
- Person: natural or juridical
- Implementing Agencies: DA (agriculture products), DOH (drugs), DENR (forest products), DTI (others)
- Basic Necessities include rice, corn, fresh meat, eggs, milk, vegetables, sugar, cooking oil, soap, candles, essential drugs
- Prime Commodities include flour, canned meat, noodles, paper, school supplies, construction materials, non-essential drugs
- Price Ceiling: maximum allowable selling price
- Mandated Price Ceiling: price ceiling imposed by the President during emergencies or price manipulation
- Illegal Price Manipulation: hoarding, profiteering, cartel activities
- Panic Buying: abnormal consumer purchase beyond normal need causing shortages
Jurisdiction of Implementing Agencies
- DA: agricultural crops, fish, fresh meat, fertilizers, feeds
- DOH: essential and non-essential drugs
- DENR: firewood, plywood, construction materials
- DTI: processed foods, soaps, paper, construction supplies
- Allows exclusion of certain goods classified as non-essential or luxury
Programs and Powers of Implementing Agencies
- Promote productivity, improve transport and distribution, protect consumers
- Can issue suggested retail prices and enforce price ceilings
- Can implement rationing, establish accredited outlets during panic buying
- Powers to issue subpoenas and require tax returns for enforcement
Buffer Fund and Commodity Stockpiling
- Each agency must appropriate a buffer fund for purchasing and stockpiling commodities
- Distribution priorities: government agencies, accredited retail outlets, cooperatives, and consumer groups
- Sales proceeds revert to buffer fund
- Warehousing and transportation facilitated by National Food Authority and private sector
Monitoring Activities
- Agencies shall monitor prices regularly to detect irregularities and provide data for price controls
- Must form monitoring task forces and report to the National Price Coordinating Council
- Data collected through price tag inspection, interviews, and surveys
- Selection of commodities based on consumer needs and price volatility; outlets based on stock completeness and accessibility
- Monitoring reports compare current prices with past months/weeks and suggested retail prices
Role of Price Coordinating Council (PCC)
- Coordinates and monitors programs among agencies and local councils
- Formulates operational guidelines and enforcement mechanisms
- DTI provides secretariat support
Local Price Coordinating Councils (LPCC)
- Created at provincial and city levels with government and sectoral representatives
- Coordinates local price stabilization programs
- Recommends suggested retail prices and ceilings to national agencies
- Can conduct price fluctuation analysis and recommend corrective actions
Measures During Emergencies
- Immediate coordination and intensive monitoring following calamity or emergency
- Automatic price freeze in declared emergency or disaster areas
- Activation of rolling stores and mobilization of government transport for distribution
- Deputization of other agencies and private sector for monitoring and enforcement
- Enforcement teams deployed to prevent price manipulation
Price Ceiling Determination
- Considers average historical prices, supply availability, production and distribution costs
- Includes factors like exchange rates, wage changes, transportation costs
- Public hearings required for price ceiling setting
- Local councils propose ceilings; implementing agency recommends to PCC or President
Suggested Retail Prices
- Can be issued by implementing agencies for guidance when necessary
Illegal Acts of Price Manipulation
- Hoarding: undue stockpiling or refusal to sell
- Profiteering: price increase exceeding 10% in one month
- Cartels: agreements to manipulate prices
- Prima facie evidence criteria for hoarding, profiteering, and cartel behavior detailed
Seizure of Commodities
- Summary proceedings may lead to seizure and sale of commodities involved in violations
- Proper inventory procedures with witnesses and media allowed
- Proceeds held in trust pending case resolution
- If owner found liable proceeds go to government; otherwise returned to owner
Enforcement and Penalties
- Administrative penalties: closure of establishments, confiscation, fines (P1,000 to P1,000,000), suspensions, reprimands
- Criminal penalties for illegal manipulation: imprisonment from 5 to 15 years plus fines up to P2,000,000
- Price ceiling violations: imprisonment 1 to 10 years and fines
- Prosecutions by provincial/city fiscal; administrative and criminal actions may be imposed concurrently
Deputation of Agencies
- Implementing agencies may deputize local government and other agencies to enforce the law
Miscellaneous Provisions
- Separability clause ensures unaffected provisions remain valid if any part is invalidated
- Repeals inconsistent departmental orders and regulations
- Published rules effective immediately after publication
This comprehensive framework ensures price stabilization and consumer protection for essential goods especially in emergency situations while balancing fair trade practices.