THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINE 
1 
First Regular Session 
1 
E N  
s. No. 
Introduced by Senator S. R. OsmeAa 111 
EXPLANATORY NOTE 
Republic Act 7851, otherwise known as the "Price Act" was passed to enable 
the government to address the problem of monopolies, cartels, unfair competition and 
the hoarding of basic commodities, especially food. 
This bill seeks to amend the Price Act to define the situation constituting a 
prima facie case of cartelization in order to facilitate the enforcement of the prohibition 
against any form of cartel. 
Competitive markets when feasible are demonstrably the most efficient way of 
allocating resources in the economy. The exercise of market power by cartels have 
often led to onerous increases in prices and shortages of basic commodities that have 
so prejudiced consumers as to become sources of economic instability. Hence the 
government is justified in using every measure to deter the formation of cartels, and/or 
their exercise of market power. 
In view of the foregoing, early passage of this bill is earnestly requested. 
SERGIO OSMENA Ill 
Senator 


THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
First Regular Session 
N E  
SENAT 
S. No. 
Introduced by Senator S. R. Osmeiia 111 
AN ACT 
TO STRENGTHEN THE PROHIBITION AGAINST MONOPOLIES AND CARTELS 
OF BASIC NECESSITIES OR PRIME COMMODITIES, AMENDING FOR THE 
ONE, OTHERWISE KNOWN AS THE “THE PRICE ACT” 
PURPOSE REPUBLIC ACT NUMBERED SEVENTY-EIGHT HUNDRED AND FIFTY- 
Be it enacted by the Senate and the House of Representatives of the Republic of the 
Philippines in Congress assembled: 
1 
SECTION 1. 
Section 5, paragraph (3) of R.A. No. 7851, is hereby 
2 
amended to read as follows: 
3 
X 
X 
X 
L, 
4 
(3) Cartel, which is any combination of or agreement between two 
5 
(2) or more persons engaged in the production, manufacturing, 
6 
processing, storage, supply, distribution, marketing, sale or any 
7 
disposition of any basic necessity or prime commodity designed to 
8 
artificially and unreasonably increase and manipulate its price 
9 
There shall be prime facie evidence of engaging in a cartel 
10 
whenever two (2) or more persons or business enterprises 
1 1  
competing for the same market and dealing in the same basic 
12 
necessity or prime commodity perform uniform or complementary 
13 
acts among themselves which tend to bring about artificial and 
14 
unreasonable increase in the price of any basic necessity or prime 
15 
commodity, or when they simultaneously and unreasonably 
16 
increase prices on their competing products thereby lessening 
I 


1 
competition among themselves, IF THEY CONTROL AT LEAST 
2 
TWENTY PERCENT (20%) OF THE MARKET, SALE OR 
3 
DISTRIBUTION OF THE BASIC NECESSITY OR 
PRIME 
4 
COMMODITY IN A REGION”. 
5 
G 
read as follows: 
7 
“SECTION 
I O .  
Power 
and 
Responsibilifies 
of 
8 
Implementing Agencies. - To carry out the intents and purposes 
9 
of this Act, the head of the implementing agency shall have the 
10 
following additional powers and responsibilities: 
11 
x x x x  
12 
“(12) WITHOUT PREJUDICE TO THE CRIMINAL PROSECUTION 
13 
OF THE PERSONS ENGAGED IN ACTIVITIES CONSTITUTING A 
14 
CARTEL AS PROVIDED IN THIS ACT, UPON A SHOWING OF A 
15 
PRIMA FACIE EVIDENCE PURSUANT TO 
SECTION (5) 
16 
HEREOF, he may CAUSE THE SEIZURE of basic necessities and 
17 
prime commodities subject of a violation of this Act and order their 
18 
sale ty the public at reasonable prices whenever the demand for 
19 
such goods so requires, OR WHEN THERE IS A PUBLIC AND 
SEC. 2. Section 70, paragraph 12 of the same Act is hereby amended to 
20 
OFFICIAL DECLARATION OF ARTIFICIAL SHORTAGE IN THE 
21 
MARKET OF SOME BASIC NECESSITIES AS DEFINED IN 
22 
SECTION 3, PARAGRAPH 1 , AND/OR PRIME COMMODITIES AS 
23 
DEFINED IN SECTION 3, PARAGRAPH 8 OF THIS ACT: 
24 
Provided, That, pending litigation, the proceeds of the sale shall be 
25 
held in trust or escrow by the implementing agency: Provided, 
26 
further, That, should the owner of the basic necessity or prime 
27 
commodity seized and sold be found not liable for the violation 
28 
which was the basis for the seizure, HE SHALL BE REFUNDED 
29 
HIS ACQUISITION COST AND EXPENSES INCURRED IN THE 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
1 1  
12 
MARKETING THEREOF, otherwise, they shall accrue to general 
fund of the Government and: Provided, finally, That the head of the 
implementing 
agency 
AS 
DEFINED 
IN 
SECTION 
3, 
SUBPARAGRAPHS (a), (b), (c) and (d) OF THIS ACT shall cause 
the broadcast in radio or television and the publication in at least 
two (2) newspapers of general circulation of the fact of sale or 
disposition of such seized goods at least three (3) days before the 
date of sale or disposition; 
x x x x  
SEC. 3. This Act shall take effect upon its approval. 
Approved, 
3