THE PRICE ACT

(Republic Act No. 7581, as amended by

Republic Act No. 10623 )
 POLICY OF THE STATE/PURPOSE OF THE
LAW

1. To ensure the availability of basic necessities and

prime commodities at reasonable prices at all times
without denying legitimate business a fair return on
investment.

2. To provide effective and sufficient protection to

consumers against hoarding,
profiteering and cartels with respect to the supply,
distribution, marketing and pricing of said goods,
especially during periods of calamity, emergency,
widespread illegal price manipulation and other similar
situations.

To these ends, the State shall:

(1) Develop, adopt and promulgate measures to promote
productivity in basic necessities and prime commodities;
(2) Develop an improved and efficient transport and
distribution system;
(3) Develop, adopt and promulgate measures to stabilize
prices at reasonable levels;
(4) Institute appropriate penalties for illegal price
manipulation and other violations; and
(5) Establish a mechanism that will readily protect
consumers from inadequate supply and unreasonable price
increase on occasions of calamities, emergencies and like
occurrences.
Definition of Terms:

1. Basic necessities include, but not limited to, rice, corn, root crops,
bread; fresh, dried or canned fish and other marine products; fresh
pork, beef and poultry meat; fresh eggs; potable water in bottles
and containers; fresh and processed milk; fresh vegetables and
fruits; locally manufactured instant noodles; coffee; sugar; cooking
oil; salt; laundry soap and detergents; firewood; charcoal;
household liquefied petroleum gas (LPG) and kerosene; candles;
drugs classified as essential by the Department of Health.
Buffer fund - a contingent fund in the budget of the
implementing agency which shall not be used in its normal
or regular operations but only for purposes provided for in
this Act;
3. Panic-buying” is the abnormal phenomenon where consumers buy
basic necessities and prime commodities grossly in excess of their
normal requirement resulting in undue shortages of such goods to the
prejudice of less privileged consumers;

4. Person means a natural person or juridical person;

5. Prevailing price means the average price at which any basic

necessity has been sold in a given time within a month from the
occurrence of any of the conditions enumerated under Section 6 of this
Act;
6. Price ceiling - the maximum price at which any basic necessity or
prime commodity may be sold to the general public; and
7. Prime commodities are goods not considered basic necessities but
are essential to consumers, such as but not limited to: flour; dried,
processed or canned pork, beef and poultry meat; dairy products not
falling under basic necessities; onions, garlic, vinegar, patis, soy sauce;
toilet soap; fertilizer, pesticides and herbicides; poultry, livestock and
fishery feeds and veterinary products; paper; school supplies; nipa
shingles; sawali; cement; clinker; GI sheets; hollow blocks; plywood;
plyboard; construction nails; batteries; electrical supplies; light bulbs;
steel wire; all drugs not classified as essential drugs by the Department
of Health
Acts of Price Manipulation

1. Hoarding - the undue accumulation by a person or combination

of persons of any basic commodity beyond his or their normal
inventory levels or the unreasonable limitation or refusal to
dispose of, sell or distribute the stocks of any basic necessity of
prime commodity to the general public or the unjustified taking
out of any basic necessity or prime commodity from the
channels of reproduction, trade, commerce and industry.
.
2 Profiteering - the sale or offering for sale of any basic necessity
or prime commodity at a price grossly in excess of its true worth.

Prima facie evidence of profiteering whenever a basic necessity

or prime commodity being sold:
(a) has no price tag;
(b) is misrepresented as to its weight or measurement;
(c) is adulterated or diluted; or
(d) whenever a person raises the price of any basic necessity
or prime commodity he sells or offers for sale to the
general public by more than ten percent (10%) of its
price in the
 immediately preceding month: Provided, That, in the case of
agricultural crops, fresh fish, fresh marine products, and other
seasonal products covered by this Act and as determined by the
implementing agency, the prima facie provisions shall not
apply; and

3. Cartel - any combination of or agreement between two (2) or more

persons engaged in the production, manufacture, processing, storage,
supply, distribution, marketing, sale or disposition of any basic
necessity or prime commodity designed to artificially and
unreasonably increase or manipulate its price.
There shall be prima facie evidence of engaging in a cartel
whenever two (2) or more persons or business enterprises
competing for the same market and dealing in the same basic
necessity or prime commodity, perform uniform or
complementary acts among themselves which tend to bring about
artificial and unreasonable increase in the price of any basic
necessity or prime commodity or when they simultaneously and
unreasonably increase prices on their competing products thereby
lessening competition among them
Automatic Price Control

Whenever:

1. The area is proclaimed or declared a disaster area or under a

state of calamity;
2. The area is declared under an emergency;
3. The privilege of the writ of habeas corpus is suspended in
that area;
4. The area is placed under martial law;
5. The area is declared to be in a state of rebellion;
6. A state of war is declared in that area.
Mandated Price Ceiling may be imposed by the President, if any of
the following conditions so warrants:

1. The impendency, existence, or effects of a calamity;

2. The threat, existence, or effect of an emergency;
3. The prevalence or widespread acts of illegal price manipulation:
4. The impendency, existence, or effect of any event that causes
artificial and unreasonable increase in the price of the basic
necessity or prime-commodity; and
5. Whenever the prevailing price of any basic necessity or prime
commodity has risen to unreasonable levels.
Factors to be considered in determining price ceilings:

1. The average price, in the last three (3) months immediately

preceding the proclamation of the price ceiling, of the basic
necessity or prime commodity under consideration;

2. The supply available in the market;

3. The cost to the producer, manufacturer, distributor or seller
including but not limited to:

(a) The exchange rate of the peso to the foreign currency with
which a basic necessity or prime commodity or any
component, ingredient or raw material thereof was paid for;

(b) Any change in the amortization cost of machinery brought

about by any change in the exchange rate of the peso to the
foreign currency with which the machinery was bought through
credit facilities;
 (c) Any change in the cost of labor brought about by a change
in the minimum wage; and

(d) Any increase in the cost of transporting or distributing the

basic necessity or prime commodity to the area of destination.

4 Such other factors or conditions which will aid in arriving at a just

and reasonable price ceiling.
Price Coordinating Council
1. Coordinate the productivity, distribution and price stabilization
programs, project and measures of the Government and develop
comprehensive strategies to effect a general stabilization of prices
of basic necessities and prime commodities at affordable levels;
2. Report to the President and to the Congress of the Philippines
the status and progress of the programs, projects, and measures
undertaken by each implementing department, agency or office as
well as the comprehensive strategies developed by the Council to
stabilize the prices of basic necessities and prime
commodities;
(3) Advise the President on general policy matters for promotion
and improvement in productivity, distribution and stabilization of
prices of basic necessities and prime commodities;

(4) Require from its members or any other government agency

such information as it may deem necessary, and conduct public
hearings for purposes of assessing the supply, distribution and
price situation of any basic necessity or prime commodity;

(5) It shall publicize from time to time developments in

productivity, supply, distribution and prices of basic necessities
and prime commodities; and
(6) Whenever automatic price control of basic necessities is imposed
under Section 6 of this Act, it shall cause the immediate
dissemination of their prevailing prices or the price ceilings imposed
in lieu thereof, as the case may be, through publication in a
newspaper of general circulation in the area affected, and through
broadcast by radio and, whenever the same is deemed to materially
make dissemination of the information more effective, by television.
It may also disseminate the information through posting in public
markets, supermarkets and other public places.
Penalty for Acts of Illegal Price Manipulation -imprisonment for a
period of not less than five (5) years nor more than Fifteen (15) years,
and shall be imposed a fine of not less than Five thousand pesos
(P5,000) nor more than Two million pesos (P2,000,000).

Penalty for Violation of Price Ceiling. – Any person who violates

Section 6 or 7 of this Act shall suffer the penalty of imprisonment for
a period of not less than one (1) year nor more than ten (10) years of
a fine of note less than Five thousand pesos (P5,000) nor more than
One million pesos (P1,000,000), or both, at the discretion of the
court.
Violation by Juridical Persons. – Whenever any violation of the
provisions of this Act is committed by a juridical persons, its
officials or employees, or in case of a foreign corporation or
association, its agent or representative in the Philippines who are
responsible for the violation shall be held liable therefor.

Violation by Aliens. – In case of aliens, in addition to the penalty

provided in Section 15 or 16 of this Act, the offender shall, upon
conviction and after service of sentence, be immediately deported
without need of any further proceedings.
Violation by Government Officials or Employees. – Any public
official or employee who, by reason of his office, with or without
consideration, conspires in the commission or knowingly conceals
violations of any of the provisions of this Act shall likewise be
principally responsible for the violation and shall suffer the
additional penalty of permanent disqualification to hold public
office.

Criminal Penalties Without Prejudice to Administrative Sanctions. –

The foregoing criminal penalties shall be without prejudice to the
administrative sanctions which the implementing agency may
impose under this Act or under any other law.