Definitions
- Person: Natural or juridical person.
- Implementing agencies: Department of Agriculture (agriculture products), Department of Health (drugs), Department of Environment and Natural Resources (forest products), Department of Trade and Industry (all other goods).
- Basic Necessities: Essential food items, firewood, charcoal, essential drugs, laundry soap, etc.
- Prime Commodities: Non-basic food items, construction materials, non-essential drugs, school supplies, electrical goods.
- Price Ceiling: Maximum retail price enforceable.
- Mandated Price Ceiling: Price ceiling imposed by the President under certain emergency conditions.
- Illegal Acts of Price Manipulation: Hoarding, profiteering, cartel activities by those in production or trade.
- Panic Buying: Abnormal consumer behavior leading to shortages.
Powers of Implementing Agencies
- Dept. of Agriculture: Jurisdiction over agricultural and farm inputs.
- Dept. of Health: Jurisdiction over drugs.
- DENR: Jurisdiction over forest products.
- DTI: Jurisdiction over other basic necessities and prime commodities.
- Agencies may exclude certain goods from coverage upon petition and public hearing.
- Agencies promote productivity, distribution efficiency, and consumer protection.
- Authority to issue suggested retail prices and enforce price ceilings.
- Can take temporary measures during panic buying such as accredited outlets and rationing.
- Power to subpoena and require tax returns for investigations.
Buffer Fund Usage
- Agencies allocate funds for stockpiling and distributing commodities in shortage or price manipulation.
- Preference given to government agencies, accredited outlets, cooperatives, and consumer groups.
- Proceeds from sales replenish the buffer fund.
- Use of government and private warehouses and transportation facilities authorized.
Monitoring and Data Collection
- Regular market price and supply monitoring.
- Agencies must form monitoring task forces with reporting to National Price Coordinating Council.
- Price data collected by tag inspection, surveys, and interviews.
- Selection of commodities and outlets based on consumer needs and market conditions.
- Reports analyze trends versus previous months and suggested retail prices.
- Producers and sellers required to submit production and inventory reports.
- National Statistics Office conducts independent price surveys.
Role of the Price Coordinating Council (PCC)
- Coordinates and monitors member agencies’ programs and local councils.
- Develop operating mechanics: reporting system, emergency measures, enforcement.
- Secretariat provided by DTI for administrative and technical support.
Local Price Coordinating Councils (LPCC)
- Created at provincial and city levels, chaired by Governor or Mayor.
- Members include representatives from various government agencies and commerce sectors.
- Coordinates local price stabilization programs, recommends prices.
- Can conduct price fluctuation analyses and recommend corrective action.
Emergency Measures
- PCC convenes immediately during crisis or calamity.
- Increased monitoring frequency and coverage.
- Automatic price freeze during declared states of disaster, emergency, rebellion, or war.
- Measures to ensure equitable supply such as rolling stores, stockpiling, use of government transport.
- Deputization of other agencies and enforcement teams for compliance.
Price Ceiling Determination
- Factors: recent average price, supply, production and distribution costs, exchange rates, labor costs.
- Public hearings and consultations with stakeholders required.
- Local councils propose prices; implementing agencies review and forward recommendations to PCC or President.
Suggested Retail Prices (SRP)
- Agencies may issue SRPs for information to guide trade and consumers.
Illegal Price Manipulation
- Hoarding includes stockpiling excess inventory, refusing to sell, or removing from market.
- Prima facie evidence defined by inventory levels and sales refusal.
- Profiteering defined as price increases exceeding 10% month-to-month.
- Cartels involve agreements to fix or manipulate prices.
- Specific evidence criteria established for hoarding, profiteering, cartel activities.
Summary Proceedings for Seizure
- Agencies may seize commodities in violation for safekeeping and possible sale.
- Strict inventory and storage procedures with official witnesses.
- Public notice required before sale of seized goods.
- Proceeds held in trust pending litigation.
- Proceeds returned to owner if not liable; otherwise revert to government.
Actions and Penalties
- Administrative penalties: Closure, confiscation, fines (P1,000 to P1 million), permit suspension.
- Criminal penalties for price manipulation: Imprisonment 5 to 15 years and fines from P5,000 to P2 million.
- For price ceiling violations: Imprisonment 1 to 10 years and fines.
- Criminal and administrative sanctions can be imposed together.
Deputation
- Implementing agencies may deputize local government units or officials to enforce the law.
General Provisions
- Separability clause ensures other provisions remain effective despite invalidity of any part.
- Repealed conflicting orders and rules.
- Rules effective upon publication in two newspapers of general circulation.