Republic of the Philippines
HOUSE OF REPRESENTATIVES,

Quezon City

30 May 2011

MEMORANDUM

FOR : DEPUTY SECRETARY GENERAL FOR OPERATIONS

TH ECUTIVE DIRECTOR
Plenary Affairs Bureau

THE SERVIC!
Bills & Index Di

RE : © COMMITTEE REPORT OF THE COMMITTEE ON
TRADE AND INDUSTRY ON HOUSE BILL NOs, 2262, 2985,

4100 & 4301

The COMMITTEE ON TRADE ANB INDUSTRY is transiting herewith seven (7)
copies of Committee Report No. LL¢8 House Bill No. 4801. entitled

AN ACT
AMENDING CERTAIN PROVISIONS OF
NTITLED “AN ACT PROVIDING PROTECTION TO CONSUMER
STABILIZING THE PRICES OF BASIC NEC! TIES AND PRIME
COMMODITIES AND BY PRESCRIBING MEASURES AGAINST UNDUE
PRICE INCREASES DURING EMERGENCY SITUATIONS AND LIKE
OCCASIONS” AND FOR OTHER PURPOSES

Said measure is in substitution of House Bill Nos. 2262, 2985, 4100 and 4301, introduced
by Representatives Romulo, Ejercito, De Jesus, Hagan, Casifio, Colmenares, Mariano,
Palatino, Tinio, respectively.

For your appropriate action.

ATTY. ARLENE C. DAD,

Deputy Secretary General
Committee Affairs Department ja



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NTH (15'") CONGR
First Regular Session

COMMITTEE REPORT NO. 1178

mitted by the COMMI1 ON TRADE AND INDUSTRY on
Qadun 2014
Re : House Bill 4801

Recommending
4301

approval in substitution of House Bill Nos. 2262, 2985, 4100 and

Sponsors: Representatives Garcia A.R., Apacible, Romulo, Ejercito, De
Jesus, Hagan, Casifio, Colmenares, Mariano, Palatino, Tinio,
and the Members of the Committee on Trade and Industry

Mr. Speaker:

the COMMITTEE ON TRADE AND INDUSTRY to which were referred House
Bill No, 2262, introduced by Representative Romulo, entitled:

“AN ACT
3 OF RA 7581 LE. THE PRI
WATER AS ON!

AMENDING S|
INCLUDE BOTTL
BASIC NECESSIT!

House Bill No. 2985, introduced by Representative Ejercito, entitled:

“AN AC
TREATING LOCALLY MANUFACTURED — INSTANT
NOODLES AS BASIC NECESSITY, AMENDING SEC (3)
SUBPAR (1) OF RA 7581 i.e. PRICE ACT”

House Bill No. 4100, introduced by Representatives De Jesus, Hagan, Casifio,
Colmenares, Mariano, Palatino and Tinio, entitled:

“AN ACT.
TO INCLUDE LIQUIFIED PETROLEUM GAS (LPG) AND
KEROSENE IN THE LIST OF BASIC NECESSITIES IN
JON THREE (3), DEFINITION OF TERMS OF
REPUBLIC ACT 7581, OTHERWISE KNOWN AS THE
“PRICE ACT”



House Bill No. 4301, introduced by Representatives De Jesus, Ilagan, Casifio,
Colmenares, Mariano, Palatino and Tinio, entitled:

“AN ACT

AMENDING S$ 12, FUNCTIONS OF THE PRICE
COORDINATING COUNCIL OF RA 7581 OTHERWISE
KNOWN AS AN ACT PROVIDING PROTECTION TO
CONSUMERS BY STABILIZING THE PRICES OF BASIC
NECESSITIES AND PRIME COMMODITIES AND BY
PRESCRIBING MEASURES AGAINST UNDUE PRICE
INCREASES DURING EMERGENCY SITUATIONS AND LIKE,
OCCASIONS”, introduced by Reps. EMERENCIANA DE
JESUS, LUZVIMINDA ILAGAN, TEODORO CASINO, NERI
COLMENARES, RAFAEL MARIANO, RAYMOND PALATINO:
AND ANTONIO TINIO”

has, gonsidered the same and recommends that the attached House Bill No.
ABUL entitled:

“AN ACT
AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 7581
ENTITLED “AN ACT PROVIDING PROTECTION TO CONSUMERS BY
STABILIZING THE PRICES OF BASIC NECESSITIES AND PRIME
COMMODITIES AND BY PRESCRIBING MEASURES AGAINST UNDUE
PRICE INCREASES DURING EMERGENCY SITUATIONS AND LIKE
OCCASIONS” AND FOR OTHER PURPOSES”

be approved in substitution of House Bill Nos. 2262, 2985, 4100 and 4103 with
Representatives Romulo, Ejercito, De Jesus, Ilagan, Casifio, Colmenares, Mariano,
Palatino, Tinio, Garcia A.R., Apacible, Duavit, Biron, Defensor, Alvarez A., Trefias,
Villarica, Mandanas, Fernandez, Garay, Teodoro, Del Rosario A.R., Sacdalan,
Osmefia, Joson, Rodriguez I., Lacson-Noel, Yu, Ferrer J., Sahidulla, Lagdameo A.,
Bonoan-David, Mellana, Sakaluran, Quisumbing, Unabia, Singson R., Batocabe,
Colmenares, Haresco, Villar, Pancho, Enverga, Cojuangco E., Cajayon, Rodriguez R.,
Tugna, Ty, Romualdez, Arroyo D., Gonzales A., Panotes, Bagasina, Romualdo, and
Cagas as authors thereof.

Respectfully Submitted:

Sommittee on Trade and Industry

THE HONORABLE SPEAKER
HOUSE OF REPRESENTATIVES
QUEZON CITY


eA Ane on

Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

FIFTEENTH (15") CONGRESS

First Regular Session
7 ji
HOUSE BILL NO. 4301
(In substitution of House Bill Nos. 2262, 2985, 4100 & 4301)

Introduced by Representatives Romulo, Ejercito, De Jesus, Hagan, Casifio, Colmenares,
Mariano, Palatino, Tinio, Garcia A.R., Apacible, Duavit, Biron, Defensor, Alvarez. A.,
Trefias, Villarica, Mandanas, Fernandez, Garay, Teodoro, Del Rosario A.R., Sacdalan,
Osmefia, Joson, Rodriguez 1., Lacson-Noel, Yu, Ferrer J., Sahidulla, Lagdameo A.,
Bonoan-David, Mellana, Sakaluran, Quisumbing, Unabia, Batocabe, Colmenares,
Haresco, Villar, Pancho, Enverga, Cojuangco E., Cajayon, Rodriguez R., Tugna, Ty,
Romualdez, Arroyo D., Gonzales A., Panotes, Bagasina, Romualdo, and Cagas

AN ACT
AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 7581
ENTITLED “AN ACT PROVIDING PRC ‘0 CONSUMERS BY
STABILIZING THE PRICES OF BASIC s AND PRIME
COMMODITL AND BY PRESCRIBING E, RES AGALNST UNDUE
PRICE INCREAS DURING EMERGENCY SITUATIONS AND LIKE
OCCASIONS” AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:
SECTION 1. Section 3 (1) of Republic Act No. 7581, otherwise known as the
Price Act, is hereby amended to read as follows:
“See. 3. Definition of Terms. — For purposes of this Act, the term:
(1) “Basic_necessities”, [include] ARE GOODS VITAL TO THE
NEEDS OF CONSUMERS FOR THEIR SUSTENANCE AND
EXISTENCE IN TIMES OF ANY OF THE CASES PROVIDED
UNDER SECTION 6 OR 7 OF THIS ACT, SUCH AS BUT NOT
LIMITED TO rice, corn, ROOT CROPS, bread; fresh, dried [and]

OR canned fish and other marine productsf,]; fresh pork, beef and

1


poultry meat: fresh eggs; POTABLE WATER IN CONTAINERS;

2 fresh and processed milk; fresh vegetable AND FRUITS; [root crops]
3 NOODLES; coffee; sugar; cooking oil; salt; laundry soap{:] AND
4 detergents: firewood; charcoal; HOUSEHOLD LIQUEFIED
5 PETROLEUM GAS (LPG) AND KEROSENE; candles; [and]
6 drugs classified as essential by the Department of Health AND SUCIL
7 OTHER GOODS AS MAY BE INCLUDED UNDER SECTION 4
8 OF THIS ACT.”

9 SEC. 2. Section 3 (8) of R.A. No. 7581 is hereby amended to read as follows:

10 “See. 3. Definition of Terms. ~

i x ox x

12 (8) “Prime Commodities” [include] ARE GOODS NOT CONSIDERED

13 AS BASIC NECESSITIES BUT ARE ESSENTIAL TO

14 CONSUMERS IN TIMES OF ANY OF THE CASES PROVIDED

Is UNDER SECTION 7 OF THIS ACT, SUCH AS BUT NOT

16 LIMITED TO [fresh fruits;) flour; dried, processed [and] OR canned

"7 pork|;], beef and poultry meat; dairy products not falling under basic

18 necessities|, noodles}; onions{;], garlic{;}, vinegar(;], patis(;], soy

19 sauce; fertilizer{;], pesticides{;] AND herbicides; poultry(;}, [swine

20 and cattle] LIVESTOCK AND FISHERY feeds[;] AND veterinary

21 products [for poultry swine and cattle]; paper; school supplies; nipa;

22 shingles; sawali; cement; clinker; GI sheets; hollow blocks; plywood;

23 plyboard; construction nails; batteries; electrical supplies; light bulbs;

24 steel wire: [and] all drugs not classified as essential drugs by the

25 Department of Health AND SUCH OTHER GOODS AS MAY BE

26 INCLUDED UNDER SECTION 4 OF THIS ACT.”

27 . 3. Section 4 of R.A. No. 7581 is hereby amended, to read as follows:

28 “Sec. 4. INCLUSION OR Exclusion from the Coverage of this Act

29 Upon petition of the concerned parties OR MOTU PROPRIO ACTION

30 FROM THE CONCERNED AGENCY OF THE PRICE

31 COORDINATING COUNCIL and after public hearing, the


SocwryuraAuneunea

12
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14
15
16
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18
19
20
ai
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24
25
26
27
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29
30
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implementing agency, with the approval of the President, MAY
INCLUDE IN THE DEFINITION OF BASIC NECESSITIES OR
PRIME COMMODITIES TYPES AND BRANDS OF THE GOODS
OR may exclude from the coverage of this Act , types or brands of the
goods included in the definition of basic necessities and prime
commodities, which may be deemed as nonessential goods or luxury
goods: Provided, That, any type or brand so excluded may be reinstated by
the implementing agency during occasions of acute shortage in the supply
of the basic necessity or prime commodity to which the excluded type or

brand used to belong.”

SEC. 4. Section 6 of RA 7581 is hereby amended to read as follows:

“Sec. 6. Automatic Price Control. ~
x ox x

Unless sooner lifted by the President, price control of basic necessities
under this section shall remain effective for the duration of the condition
that brought it about, but not for more than sixty (60) daysf.J,
PROVIDED, THAT, IN THE CASE OF BASIC NECESSITIES
THAT ARE WHOLLY IMPORTED AND DEREGULATED
UNDER EXISTING LAWS, SUCH AS, BUT NOT LIMITED ‘TO,
HOUSEHOLD LPG AND KEROSENE, PRICE CONTROL
‘THEREON SHALL REMAIN EFFECTIVE FOR A PERIOD OF
NOT MORE THAN FIFTEEN (15) DAYS, TAKING INTO
CONSIDERATION THE CURRENT INVENTORY OR SUPPLY
LEVELS THEREOF.”

Section 11 of RA 7581 is hereby amended to read as follows:

c. 11. Price Coordinating Council. - There is hereby created a Price
Coordinating Council, hereinafter referred to as the Council, to be
composed of the following members:

(1) The Secretary of Trade and Industry, as chairman;

(2) The Secretary of Agriculture;

(3) The Secretary of Health;


(4) The Secretary of Environment and Natural Resources;
(5) The Secretary of Local Goverment;
(©) The Secretary of Transportation and Communications;
(7) The Secretary of Justice:
(8) THE SECRETARY OF ENERGY;
(9) [8] The Director General of the National Economic and

Development Authority;
(10) [9] One (1) representative from the consumers’ sector;
(11) [10] One (1) representative from the agricultural producers’ sector;
(12) [11]One (1) representative from the trading sector; and
(13) [12] One (1) representative from the manufacturers’ sector”
x ox x

SEC. 6, Section 12 (2) of RA 7581 is hereby amended to read as follows:

“Sec. 12. Functions of the Price Coordinating Council.
x ox x

(2) It shall report AT LEAST SEMI-ANNUALLY (o 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,
‘THE REPORT SHALL INCLUDE GOODS THAT HAVE BEEN
INCLUDED OR EXCLUDED FROM THE LIST OF BASIC
NECESSITIES AND PRIME COMMODITIES AS PROVIDED FOR
UNDER SEC. 4 OF THIS ACT”

x x x

SEC. 7. Implementing Rules and Regulations. The Department of Trade and
Industry shall, in consultation with the members of the Price Coordinating Council and
stakeholders, promulgate the necessary rules, regulations and procedures for the effective
implementation of this Act within ninety (90) days upon its effectivity and shall monitor
strict compliance therewith. They shall also review the existing Implementing Rules and

Regulations of Republic Act 7581 and revise its provisions as may be appropriate.


Caer ankoene

SEC. 8. Repealing Clause. — All laws, decrees, executive orders, issuances or
regulations inconsistent with the pro

ions of this Act are hereby revised or amended
accordingly
SEC. 9. Separability Clause. — If any part of this law is declared unconstitutional
or invalid, such parts or provisions thereof not so declared shall remain valid and
subsisting
SE

*. 10. Effectivity Clause. ~ This Act shall take effect fifteen (15) days afler its
publication in at least two (2) newspapers of general circulation in the country.

Approved,


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH (15") CONGRESS.
First Regular Session

MINUTES OF THE MEETING OF THE COMMITTEE ON TRADE &
INDUSTRY HELD ON MAY 24, 2011(TUESDAY), 1:30 PM AT CONFERENCE
ROOMS 9 & 10, RAMON V. MITRA, JR. BUILDING, HOUSE OF
REPRESENTATIVES COMPLEX, BATASAN HILLS, QUEZON CITY

AGENDA:

(A) Deliberation om the draft. bill in substitution to House Bill Nos. 2262. 2985, 4100 and 4301. ic,
amendments to Republic Act No. 7581. otherwise known as the Price Act

(B) Initial Deliberation on House Bill No, 2189 ie. strict conformance to advertisement standards in
the manufacture. distribution and sale of herbal medicines. supplementary health products and
alternative healthy foods

(C) Reconsideration of certain provisions of the proposed Philippine Lemon Law of 201 |previously
approved by the Committee

(D) Report of Accomplishments of the Committee for the First Regular Session of the Fifteenth (15")
Congress

I. CALL TO ORDER
Rep. Tomas Apacible. Presiding Officer and Senior Vice Chairman of the Committee on
Trade and Industry. called the meeting to order at 1:45 P.M..

I ROLL CALL AND DETERMINATION OF QUORUM
On proper motion, duly seconded and there being no objection, the Committee dispensed
with the Calling of the Roll

Ill. APPROVAL OF THE MINUTES OF THE PREVIOUS MEETING
On proper motion. duly seconded and there being no objection, the Committee dispensed

with the reading of the Minutes of the Meeting held on March 22, 2011 and thereafter
approved the same,


WV.

OPENING REMARKS OF THE PRESIDING OFFICER

On behalf of the Committee Chairman, Rep. Apacible welcomed the Members and
resource persons present and thanked them for responding to the Committee's invitation
to the meeting.

He explained that the meeting was called for primarily in order for the Committee to
deliberate on the draft bill in substitution to House Bill Nos. 2262, 2985, 4100 and 4301,
all seeking to amend certain provisions of Republic Act No. 7581. otherwise known as
the Price Act.

Likewise. he stated that the Committee had scheduled the initial hearing on House Bill
No, 2189 mandating the strict conformance to advertisement standards in the
manufacture. distribution and sale of herbal medicines, supplementary health products
and alternative healthy foods.

DELIBERATION ON THE DRAFT BILL IN SUBSTITUTION TO
HOUSE BILL NOS. 2262, 2985, 4100 AND 4301

Rep. Apacible narrated that after the Committee had considered House Bills Nos. 2262,
2985. 4100 and 4301 during its meeting last March 22, 2011, the same were
subsequently referred to the Subcommittee on Consumer Protection and Trade
Regulation for its review with the goal of consolidating the various aniendments to the
Price Act as proposed by the subject bills, as well as to introduce other omnibus
revisions to RA 7581 following said review

Subsequently. the Subcommittee conducted two (2) Technical Working Group (TWG)
meetings on the subject matter with the participation by representatives of various
stakeholders and government agencies.

Rep. Apacible reported that the resulting draft substitute bill prepared by the
Subcommittee has the following salient features:

J. Itamends Section 3 (1) of RA 758i by:

providing a descriptive definition of the meaning of “Basie Necessities
including the phrase “SUCH AS. BUT NOT LIMITED TO™ prior to the
enumeration of items considered as “Basic Necessities
«including PROCESSED POTABLE WATER IN CONTAINERS

nthe ist of

Basic Necessities in consideration of HB 2262:
© including NOODL the list of Basic Necessities in consideration of HB
2985:

© including HOUSEHOLD LIQUEFIED PETROLEUM GAS (LPG) AND
KEROSENE in the list of Basic Necessities in consideration of HB 4100:

© including FRUITS in the list of Basic Necessities in consideration of the
suggestion by the TWG:

+ reassorting the items included in the list i.e, ROOT CROPS on top of list after
CORN:

* including the phrase “AND SUCH OTHER GOODS AS MAY BE
INCLUDED UNDER SECTION 4 OF THIS ACT™: and

5 2


+ correcting typographical and clerical errors found thereon
2. Hamends Section 3(8) of RA 7581 by
+ providing a descriptive definition of the meaning of “Prime Commodities

the phrase “SUCH AS. BUT NOT LIMITED TO” prior to the

jumeration of items considered as “Prime Commodities”

* replacing SWINE AND CATILE feeds with LIVESTOCK AND
FISHERY feeds

iting the phrase “AND H OTHER GOODS AS MAY BE
INCLUDED UNDER SECTION 4 OF THIS ACT": and

* correcting typographical and clerical errors found thereon.

Kt amends Section 4 of RA 7581 by granting the implementing agency. upon petition
of concemed parties or motu proprio action with the approval of the President, the
power not only to exclude certain items from the coverage of R.A. 7581, but it also
allows the same to INCLUDE types and brands of goods in the definition of basic
necessities or prime commodities, in consideration of House Bill No. 4301

4. It amends Section 6 of RA 7581 by providing that, IN THE CASE OF THE BASIC
NECESSITIES THAT ARE WHOLLY IMPORTED and DEREGULATED
UNDER EXISTING LAWS, SUCH AS, NUT NOT LIMITED TO HOUSEHOLD
LIQUEFIED PETROLEUM GAS (LPG) AND KEROSENE. PRICE CONTROL
THEREON SHALL REMAIN EFFECTIVE FOR A PERIOD OF NOT MORE
THAN FIFTEEN (15) DAYS. TAKING INTO CONSIDERATION THE
CURRENT INVENTORY OR SUPPLY LEVELS THEREOF.

5, Itamends Section 11 of RA 7581 by including the DEPARTMENT OF ENERGY as
a MEMBER of the Price Coordinating Council.

6. Itamends Section 12 (2) of RA 7581 by requiring the Price Coordinating Council to
report AT LEAST SEMI-ANNUALLY to the President and to the Congress of the
Republic 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 10 stabilize the prices of basi
necessities and prime commodities. Further. THE REPORT SHALL INCLUDE
GOODS THAT HAVE BEEN INCLUDED OR EXCLUDED FROM THE LIST OF
BASIC NECESSITIES AND PRIME COMMODITIES AS PROVIDED FOR
UNDER SECTION 4 OF (THIS ACT) the Price Act,

7. It directs the Department of Trade and Industry. in consultation with the members of
the Price Coordinating Council and stakeholders, to promulgate the necessary rules,
regulations and procedures for the effective implementation of this Act within
NINETY (90) DAYS upon its effectivity and to monitor strict compliance therewith
This process shall involve the review of existing implementing rules and regulations
of RA 7581. and its revision as may be appropriate,

Rep. Roman Romulo, author of HB 2262, reiterated the urgency of amending the Price
Act to include drinking water in the list of Basic Necessities under the same law.
Recounting his congressional district's sad plight during the onslaught of Typhoon
‘Ondoy in 2009. he underscored that water is one of the most essential needs of life, and

3


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its accessibility at affordable prices specially in times of calamity and emergency must
be ensured. He then signified his support to approve the draft substitute bill with the
amendment that the word “PROCESSED” be deleted from the term “PROCESSED
POTABLE WATER IN CONTAINERS" in order to cover all types of potable drinking
water.

Ms. Melita Obillo. representing the Department of Energy (DOE), raised her
department's concern on the inclusion of LPG and kerosene in the list of basic
necessities. She stressed that subject commodities are not only deregulated, but these are
likewise imported. Hence, local prices of LPG and kerosene depend on_ international
market prices.

Nevertheless, Rep. Apacible assured Ms. Obillo that in the case of LPG and kerosene,
the prices thereof shall automatically be frozen only during times of emergency and
other similar situations enumerated under Section 6 of the Price Act, and that the price
control on such products shall only be in effect for not more than fifteen (15) days as
proposed under the draft substitute bill.

Besides. the Presiding Officer underscored that the DOE shall now become a member of
the Price Coordinating Council with voice and vote as recommended under the subject
substitute bill

Thereafter. on proper motion. duly seconded and there being no objection. the
Committee approved the draft bill in substitution to HBs 2262, 2985, 4100 and 4301,
together with the amendment introduced by Rep. Roman. Likewise. all the Members
present in the meeting were made co-authors of the substitute bill.

Moreover, Rep. Douglas Cagas recommended that the Committee should move to have
the same bill certified as an urgent measure.

{TIAL HEARING ON HOUSE BILL NO. 2189

Rep. Apacible remarked that the hearing on House Bill No. 2189 requiring
manufacturers, distributors and sellers of herbal medicines, supplementary health
products and alternative healthy foods to conform strictly to standards in the marketing
Of said products is very important and timely.

Over the years, the Presiding Officer observed that there has been a tremendous:
increase it various herbal food supplements being sold in the market

These products are being promoted with the promise of better memory, better
eyesight, better blood circulation, and better liver and other internal organ
functions. -

The amount of advertisements and commercials that they buy. the celebrities they
hire to endorse their products, and the number and size of their billboards along
hhighways and other visible locations all indicate that manufacturers and distributors of
herbal medicines. supplementary and alternative health products have found a lucrative
niche in the Philippines.



In this regard, Rep. Apacible emphasized that making consumers fully aware of what
these products are all about and how it affects their health falls squarely under the scope
and jurisdiction of the Committee on Trade and Industry thru the Subcommittee on
Consumer Protection and Trade Regulation.

Rep. Pedro Romualdo, author of HB 2189, stated that there has been an alarming
proliferation in the market of well-commercialized herbal and alternative medicines
which might pose danger to public health and imperil the lives of non-dis
consumers.

ating

While the government is mandated to promote traditional and alternative healthcare as
mandated by Republic Act 8423, otherwise known as the Traditional and Alternative
Medicine Act (TAMA) of 1997, Rep. Romualdo stressed that it is the government's
primordial duty to educate and disseminate to the public adequate information and guide
on the rational, appropriate, proper application and safe use of herbal and alternative
medicines.

In light of this, he underscored that the objectives of his bill include among others, the
need to indicate appropriate markings in the packaging, advertising, marketing and
promotion of products and the language be in English, Tagalog, Visayan and other major
dialects for easy reading and understanding of the consumers; the provision of stiffer
penalties for manufacturers, distributors, sale, advertisers, marketers and promoters of
herbal products who fail to comply with the provisions of the bill; and determine the
extent of compliance by concerned government agencies such as the Department of
Trade & Industry to Department of Health, Food & Drugs Administration and DOH-
Administrative Order No. 2010 in monitoring manufacturers of herbal products and food
supplements.

Ms. Yolanda R. Robles, Public Relations Officer of the Philippine Pharmaceutical
Association (PPhA), expressed her agency's support to HB 2189, indicating that food
supplements. specifically marked with the phrase, “no therapeutic claim™ should not
indicate that they are cure to certain ailments: otherwise, this is tantamount to betrayal
of public trust.

She specified that food supplements shall comply with certain registration requirements
before they are allowed the benefit of advertisements as well as market exposure abroad.

Ms. Ma. Victoria Pinion, Nutritionist/Dietician of the Food and Drugs Administration
(FDA)-DOH. substantiated PPhA’s position on the necessity of product registration. She
identified the mandatory information necessary for such purpose.

She added that the FDA has no objection to the _introdu
provided that the required nutritional facts are indicated.

n of certain products

Atty. Rudolph Jularbal, General Counsel of Kapisanan ng mga Brodkaster su Pilipinas
(KBP) & AD Standards Council, provided information on the process thru
advertisements for certain product are evaluated by the KBP. He assured the
Committee that the KBP continuously monitors the requisite approval of FDA as to
pharmaceutical products and food supplement. and that the same organization strictly
observes the standards which prohibit claims not approved by the FDA.

Atty. Jularbal also identified certain problems encountered in advertising where the
labels of certain products require FDA’s approval, but the “inserts” to these do not

5


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necessarily require approval of the same. He also affirmed that he has long been an
advocate of translating markings in health and similar products in the local dialects.

Whereupon, the Committee agreed to conduct further deliberations in its next meeting on
HB 2189, and to review its provisions for possible revisions in order to come up with a
more comprehensive bill. The Committee also requested the resource persons to submit
their position paper on the subject matter within the week in order for the Members to
consider and study the same.

RECONSIDERATION OF CERTAIN PROVISIONS OF THE PROPOSED
PHILIPPINE LEMON LAW OF 2011

Rep. Albert Garcia, Committee Chairman, recalled that on March 8, 2011, the
Committee conducted its deliberation on House Bill Nos. 123, 352, 1966, 3495, 3869
and 4143. all of which seek to strengthen. consumer protection in the purchase of brand
new motor vehicles and for other purposes.

During the same meeting, the Committee approved the preparation of a draft bill in
substitution to the subject bills which, among others, incorporates the following
provisions:

1. The inclusion of MOTORCYCLES as part of the definition of MOTOR
VEHICLES covered by the substitute bill; and

2. The use of actual TAXI FARE RECEIPTS in the computation of transportation
allowance for non-usage of the vehicle while under repair and during the period
of availment of lemon law rights.

Thereafter. Rep. Garcia related that the matter of including motorcycles within the
coverage of the proposed Philippine Lemon Law was referred to the same sector,
paiticularly . to the Motorcycle Development Program Participants Association
(MDPPA) for their comments.

The MDPPA is an association of six (6) motorcycle manufacturers with eighty-five
percent (85%) overall stake in the Philippine motorcycle industry whose members
include Honda. Kawasaki, Suzuki, Motorstar. Yamaha And Kymco.

Subsequently, in its letter dated April 13, 2011, the MDPPA expressed its view that
separate stipulations should be provided for motorcycles , which are two-wheeled
vehicles, as most of the provisions of the proposed Philippine Lemon Law of 2011 are
applicable to four-wheeled motor vehicles.

Likewise. the MDPPA cited the disparity between motorcycles and four-wheeled motor
vehicles in terms of the nature of the product, price, warranty coverage, function or use,
and financing scheme.

The same letter-comment was furnished to the DTI, particularly thru Atty. Victor Mario
Dimagiba. Director of the Bureau of Trade Regulation and Consumer Protection
(BTRCP).

After considering MDPPA‘s comments, Director Dimagiba has recommended that
motoreycles should be removed from the list of motor vehicles to be covered by the

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proposed Philippine Lemon Law of 2011 so as not to impede further the progress of the
same legislative measure in the Lower House.

‘On May 9. 2011, House Bill No. 4532, also secking to strengthen consumer protection
in the purchase of brand new motor vehicles and for other purposes, was referred on First
Reading to the Committee on Trade and Industry.

Upon review thereof. the provisions of House Bill No. 4532 are similar with those of
House Bill Nos. 123, 352, 1966, 3495, 3869 and 4143

In view of the foregoing, Rep. Garcia recommended that:

1. The approval by the Committee to draft a bill in substitution to House Bill Nos.
123, 352. 1966, 3495, 3869 and 4143 be amended to exclude motorcycles as part
of the definition of MOTOR VEHICLES covered by the proposed Philippine
Lemon Law of 2011;

2. House Bill No. 4532 be included in the list of measures considered by the
Committee in preparing the draft Philippine Lemon Law of 2011; and

3. The aforementioned motions be formally manifested and approved during the
Committee meeting on May 24, 2011 and subsequently reflected in the
proceedings thereof.

Whereupon, on motion of Rep. Victor Yu, the Committee approved the aforesaid
recommendations and instructed the Secretariat to implement the same.

REPORT OF ACCOMPLISHMENTS OF THE COMMITTEE DURING THE
FIRST REGULAR SESSION OF THE FIFTEENTH (15™) CONGRESS

Thereafter, Rep. Garcia also presented the Accomplishment Report on the Legislative
Priorities for the First Regular Session of the Fifteenth (1Sh) Congress agreed upon by
the Committee during its Organizational Meeting last September 14, 2010.

Chairman Garcia noted that the Committee Report on the proposed Philippine Fair
Competition Act of 2011 is now ready for submission after months of deliberations
thereon and with the recent approval by the Committee on Appropriations on the budget
provisions thereof.

Likewise, Holuse Bill 3841, prepared and submitted by the Committee which amends
certain provisions of Republic Act No. 8293, otherwise known as the Intellectual
Property Code of the Philippines, was approved on Third Reading by the House of
Representatives last May 23. 2011.

Moreover, the Committee Chairman conveyed that the respective Committee Reports on
the forthcoming 2011 Philippine Lemon Law. the proposed Philippine Trade
Representative Office. the long-anticipated LPG Industry Regulation and Safety Act of
2011. and the much-awaited Fiscal and Non-Fiscal Incentives Act will be submitted by
the Committee prior to the sine die adjournment on June 9, 2011


Further, some sixteen (16) bills on proposed amendments to the Consumer Code of the
Philippines have been referred to the DTI and the Food and Drug Administration of the
Department of Health for their perusal and comments.

Aside from the foregoing priority measures. the Committee also deliberated on and has
submitted its report on the proposed Corporate Social Responsibility Act of 2011, with
the same approved on Second Reading last May 18, 2011

Another Committee Report will be underway shortly with the approval during the on-
going meeting of the bill amending certain provisions of the Price Act.

Aside from the just-concluded initial deliberation on HB 2189. the Committee has,
Jointly with the Committee on Economic Affairs, considered seventeen (17) bills seeking
to create various economic and free trade zones throughout the country

For these accomplishments, Rep. Garcia profusely thanked the Members and resource
persons for their support. For his part, Rep. Yu commended the Chairman, the
Committee Secretary and the Committee Staff for a job well done.

IX. | ADJOURNMENT
There being no other matter to be taken up. the meeting was adjourned at 3:30
pm.
Certified true and correct to the best of our knowledge and abilities.
Prepared by
iG fe hee
AESSICA @. FRADESAS

supervising Legislative Staff Officer {1
Committee on Trade and Industy

Reviewed by

fimittee Secretary
Committee on Trade and Industry

Noted by: —_

fmmittee on Trade and Industry


FACT SHEET

House Bill No. 4801
(As Approved by the Committee on May 24, 2011)

AN ACT
AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 7581
ENTITLED “AN ACT PROVIDING PROTECTION TO CONSUMERS BY
STABILIZING THE PRICES OF BASIC NECESSITIES AND PRIME
COMMODITIES AND BY PRESCRIBING MEASURES AGAINST UNDUE
PRICE INCREASES DURING EMERGENCY SITUATIONS AND LIKE
OCCASIONS” AND FOR OTHER PURPOSES

Introduced by: Rep. Roman T. Romulo, Rep. Joseph Victor G. Ejercito, Rep. Emerenciana
A. De Jesus, Rep. Luzviminda C. llagan, Rep. Teddy A. Casino, Rep. Neri J. Colmenares,
Rep. Rafael V. Mariano, Rep. Raymond V. Palatino, Rep. Antonio L. Tinio

Committee Referral: COMMITTEE ON TRADE & INDUSTRY
Committee Chairperson: REP. ALBERT RAYMOND S. GARCIA

OBJECTIVE:

* To enforce and strengthen the functions of the National Price Coordinating
Council in giving relief and dependable safety net measures to consumers amidst
increases in the prices of basic necessities and prime commodities

KEY PROVISIONS:

1, Amends Section 3 (1) of RA 7581 by providing a descriptive definition of “Basic
Necessities’ to mean as goods vital to the needs of consumers for their
sustenance and existence in times of any of the cases provided under Section 6
or 7 of this Act, such as 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 containers; fresh and processed milk; fresh
vegetable and fruits; 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
and such other goods as may be included under Section 4 of this Act

2. Amends Section 3(8) of RA7581 by providing a descriptive definition of “Prime
Commodities” to mean as goods not considered as basic necessities but are
essential to consumers in times of any of the cases provided under Section 7 of
this Act, 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; 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 and such other
goods as may be included under Section 4 of this Act.

Amends Section 4 of RA 7581 by granting the implementing agency, upon
petition of concerned parties or motu proprio action with the approval of the
President, the power not only to exclude certain items from the coverage of R.A.
7581, but it also allows the same to INCLUDE types and brands of goods in the
definition of basic necessities or prime commodities.

Amends Section 6 of RA 7581 by providing that, IN THE CASE OF THE BASIC
NECESSITIES THAT ARE WHOLLY IMPORTED and DEREGULATED UNDER
EXISTING LAWS, SUCH AS, NUT NOT LIMITED TO HOUSEHOLD LIQUEFIED
PETROLEUM GAS (LPG) AND KEROSENE, PRICE CONTROL THEREON
SHALL REMAIN EFFECTIVE FOR A PERIOD OF NOT MORE THAN FIFTEEN
(15) DAYS, TAKING INTO CONSIDERATION THE CURRENT INVENTORY OR
SUPPLY LEVELS THEREOF.

Amends Section 11 of RA 7581 by including the DEPARTMENT OF ENERGY as
a MEMBER of the Price Coordinating Council.

‘Amends Section 12 (2) of RA 7581 by requiring the Price Coordinating Council to
report AT LEAST SEMI-ANNUALLY to the President and to the Congress of the
Republic 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. Further, THE REPORT SHALL
INCLUDE GOODS THAT HAVE BEEN INCLUDED OR EXCLUDED FROM THE
LIST OF BASIC NECESSITIES AND PRIME COMMODITIES AS PROVIDED
FOR UNDER SECTION 4 OF (THIS ACT) The Price Act.

Directs the Department of Trade and Industry, in consultation with the members
of the Price Coordinating Council and stakeholders, to promulgate the necessary
rules, regulations and procedures for the effective implementation of this Act
within NINETY (90) DAYS upon its effectivity and to monitor strict compliance
therewith. This process shall involve the review of existing implementing rules
and regulations of RA 7581, and its revision as may be appropriate

RELATED LAW:

The Price Act (Republic Act 7581)


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

30 May 2011
MEMORANDUM

FOR ATTY. ARLENE C. DADA-ARNALDO
Deputy Secretary General for Committee Affairs

THRU 3 Ms. VIOLETA T. VELOSO.
Executive Director, CAD

Ms. LORELEI M. HERNANDEZ
Deputy Executive Director, CAD

SUBJECT HIGHLIGHTS OF THE TECHNICAL WORKING GROUP
(TWG) MEET! OF THE SUBCOMMITTEE ON
CONSUMER PROTECTION AND TRADE REGULATION OF
THE COMMITTEE ON TRADE & INDUSTRY (CTI) HELD
ON MAY 16, 2011, 1:30 P.M., AT CONFERENCE ROOM 6,
SPEAKER MITRA BUILDING, HOUSE OF
REPRESENTATIVES,

Agenda ~ Preparation of Draft Substitute Bill in Consolidation of House Bill Nos. 2262,
2985, 4100 & 4301 re: amending certain provisions of RA 7581 otherwise
known as The Price Act

The Technical Working Group (TWG) under the Subcommittee On Consumer Protection &
Trade Regulation of the Committee on Trade & Industry conducted its second TWG meeting
with the attendance of Rep. Emer ia De Jesus (author, HBs 4100 and 4301) and Rep.
Roman Romulo (Author. HB 2262): resource persons from the Department of Trade and
Industry (DTH) Department of Energy (DOE). Department of Health (DOH) Le. National
Center for Pharmaceutical Access and Ma ent (NCPAM), — Food andl Drug
Administration (FDA), Department of Agriculture (DA). Department of the Interior and Local
Government (DILG). National Statisties Office (NSO): and staff of authors/co-authors of
subject bills

After hearing the views and comments of the resource persons. the group agreed to propose
the following amendments to RA 758)to wit:

1. On Section 3 (1) of RA 7581 by providing a descriptive definition of “Busic
Necessities” to mean as goods vital to the needs of consumers for their sustenance and
existence in times of any of the cases provided under Section 6 or 7 of this Act, such
as but not limited to rice. com. root crops. bread: fresh, dried or canned fish and other
marine products: fresh pork, beef and poultry meat: fresh cags: potable water in
containers: fresh and processed milk: fresh vegetable and fruits; 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 and such other goods as may be included under Section
4 of this Act



2 Ons

4 descriptive definition of “Prime
Commoditie can as goods not considered as basic necessities but are essential
to consumers in times of any of the cases provided under Section 7 of this Act, 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; fertilizer, pesticides and herbicides; poultry, livestock and fishery feeds and
veterinary products; paper; school supplies; nipa; shingles; sawali; cement; clinker;
Gl 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 and such other goods as may be included under Section 4 of
this Act.

3. On Section 4 of RA 7581 by granting the implementing agency, upon petition of
concemed parties or motu proprio action with the approval of the President, the
power not only to exclude certain items from the coverage of R.A. 7581, but it also
allows the same to INCLUDE types and brands of goods in the definition of basic
necessities or prime commodities.

4, On Section 6 of RA 7581 by providing that, in the case of the basic necessities that
are wholly imported and deregulated under existing laws, such as, {jut not limited to,
household liquefied petroleum gas (Ipg) and kerosene, price control thereon shall
remain effective for a period of not more than fifteen (15) days, taking into
consideration the current inventory or supply levels thereof.

5. On Seetion 11 of RA 7581 by including the DEPARTMENT OF ENERGY as a
MEMBER of the Price Coordinating Council.

6. On Section 12 (2) of RA 7581 by requiring the Price Coordinating Council to report
AT LEAST SEMI-ANNUALLY to the President and to the Congress of the Republic
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

been included or excluded from the list of basic necessities and prime commodities as
provided for under Section'4 of (this Act) The Price Act,

‘Thereafter, the Secretariat was directed to draft the corresponding draft substitute bill in
consolidation of HBs 2262, 2985, 4100 & 4301 for approval during the meeting of the Mother
Committee.

Prepared by:

—_— LANCA

)
‘Committee Secretary
‘ommittee on Trade & Industry

Service Directof, Cluster | (Economic — 1)


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

15" CONGRESS
HOUSE BILL NO. 2262

Introduced by Representative Roman T. Romulo
Lone District of Pasig City

EXPLANATORY NOTE

This proposed bill seeks to provide for a more comprehensive coverage of
the term "basic necessities” under the Republic Act No. 7581, otherwise known
as "The Price Act" in order to protect Filipino consumers from variable food price

spikes in keeping with the constitutional guarantee of economic equality and
general welfare.

By its very nature, water is one of the most essential needs of life. As we
face the fast changing and erratic economic condition, security and accessibility
to potable water at acceptable prices must be ensured. There is a need to be
proactive and adapt new measures to cope with the foreseen and possible
significant imbalance between the supply and demand for drinking water.

Under Section 6 of Republic Act No. 7581, the prices of basic necessities
shall automatically be frozen at their prevailing prices or placed under automatic
price control under certain circumstances such as during a state of calamity and
during emergencies. Further, Section 7 of the same Act provides that a price

ceiling may be imposed on any basic necessity or prime commodity during
similar situations.

Through the amendment proposed in this Bill, appropriate measures to
stabilize the price of drinking and bottled water would be enforced, implemented
and protected by the Price Act and hence, strengthen consumer security
especially during severe shortages, calamities and economic crisis.

For these reasons, the passage of this bill is earnestly sought

pe ee
HON. ROMAN T. ROMULO


HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

15" CONGRESS

HOUSE BILL NO.__ 2262

Introduced by Representative Roman T. Romulo
Lone District of Pasig City

AN ACT TO AMEND SECTION 3 OF REPUBLIC ACT NO. 7581, OTHERWISE
KNOWN AS “THE PRICE ACT”, TO INCLUDE BOTTLED DRINKING WATER
AS ONE OF THE BASIC NECCESITIES

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

Section 1. Section 3 (1) of Republic Act No. 7581, otherwise known as the “Price
Act", is hereby amended to read as follows:

Section 3. Definition of Terms. - For purposes of this Act,
the term:

(1) "Basic necessities" “includes: rice; corn; bread, fresh,
dried and canned fish and other marine products; fresh pork
beef and poultry meat; fresh eggs; fresh and processed milk,
fresh vegetables; root crops; botlled drinking water, coffee;
sugar; cooking oil; salt; laundry soap; detergents; firewood;
charcoal; candles; and drugs classified as essential by the
Department of Health.

Section 2. This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in at least two (2) newspapers of general circulation. _

“Approved.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

House pri no, 2985

INTRODUCED BY REP. JOSEPH VICTOR G. EJERCITO

EXPLANATORY NOTE

This bill seeks to include locally manufactured instant noodles in the
definition of “basic necessities” for the purpose of providing them the protection
accorded under the Price Act against undue price increases during calamity,
emergency, widespread illegal price manipulation and other similar situations.

Instant noodles was first introduced in Japan in the 1950s and is now
being produced in over 80 countries worldwide. In the Philippines, as in
neighboring countries, the demand for noodles continues to be on the rise.
Based on available data, the consumption of instant noodles in the Philippines
has risen steadily since 1995, reaching in the year 2000 a per capita annual
consumption of 0.506 kgs. (per person per annum) and total household
expenditure of P6 billion, with a sustained growth rate estimated at 16% per
annum. Instant noodles has indeed become the new staple of many poor
Filipinos. This increase in popularity of instant noodles can be due to the fact that
itis cheaper and easier to prepare than rice.

The prevalent public consumption of instant noodles has placed it in the
ranks of basic necessities such as rice, com, bread, fish, pork, bee, pouliry, etc.
During relief operations in times of calamities and emergencies, instant noodles
is one of the basic goods distributed. Undeniably, instant noodles plays an
important role in the lives of Filipinos.

‘At present, however, instant noodles is not accorded the protection which
other goods classified as “basic necessities” enjoy. While noodles is considered
as prime commodity under the Price Act, it is not covered by the automatic price
control provision of the said law which applied only to prices of basic necessities,
With the significant reliance of the Filipino people on instant noodles for their day-
to-day subsistence, itis imperative that its price be subject to automatic freezing
in areas affected by calamities, emergencies, etc., and be subject to a ceiling
when its prevailing price is excessive or unreasonable,

In view of the foregoing, approval of this bill is earnestly requested,

a3

JOSEPH VICTOR G. EJERCITO


REPUBLIC OF THE PHILIPPINES
CONGRESS OF THE PHILIPPINES H.No, $2698
Fifth Regular Session 8, No, 1870

REPUBLIC Act No. 7581 i

AN ACT PROVIDING PROTECTION TO CONSUMERS BY
STABILIZING THE PRICES OF BASIC NECESSITIES
AND PRIME COMMODITIES AND BY PRESCRIBING
MEASURES AGAINST UNDUE PRICE INCREASES
DURING EMERGENCY SITUATIONS AND LIKE
OCCASIONS

Be it enacted by the Senate and House of Representatives of
the Philippines in Congress assembled:

SECTION 1. Short Title. ~'This Act shall be referred to as the
“Price Act.” if

Seo. 2. Declaration of Basic Policy. ~ It is the policy of the
State 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, It is also a
declared policy of the State 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 chall:

(2) Develop, adopt and promulgate measures to promote
productivity in basic necessities and prime commodities;

@) Develop’an improved and efficient transport and
distribution system; i

@) Develop, adopt and promulgate measures ili
prices at reasonable levels, en” MOMs™*08 (0 stabilize

1647


‘ |
| 1648
(4) Institute appropriate penalties for illegal price
manipulation and other violations of this Act; and

(© Establish a mechanism that will readily protect consumers
from inadequate supply and unreasonable price inereases on
occasions of calamities, emergencies and like occurences.

SEC, 3, Definition of Terms. ~ For purposes of this Act, the
term;

(1) “Basic necessities” includes: rice, corn, bread; fresh, dried
and canned fish and other marine products, fresh pork, beef
and poultry meat; fresh eggs; fresh and processed milk; fresh
vegetables; root crops; coffee; sugar; cooking oil; salt; laundry
soap;| detergents; firewood; charcoal; candles; and drugs
classified as essential by the Department of Health;

the irpplementing agency which shall not be used in its normal
or regular operations but only for purposes provided for this
Act; |

@ lin fund" means a contingent fund in the budget of

(8)|"Implementing agency” means the department, agenc}
or office of the Government which has jurisdiction over a basic
neceisity or prime commodity as defined in this Act, which
shall be:

i
OI The Department of Agriculture, with reference to
agricultural crops, fish and other marine products, fresh meat,
fresh poultry and dairy products, fertilizers, and other farm
Jnpyts;

(b) The Department of Health, with reference to drugs;

) ‘The Department of Environment and Natural Resources,
with reference to wood and other forest products; and

‘The Department of Trade and Industry, with reference
other basic necessities and prime commodities.

1649

(4) “Panie-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;

(© “Person” means a natural person or a juridical person;

© “Prevailing price” means the average price at which any
basic necessity has been sold in a given area within a month
from the occurence of any of the conditions enumerated under
Section 6 of this Act;

(D) "Price ceiling” means the maximum price at which any
basic necessity or prime commodity may be sold to the general
public; and

© "Prime commodities” include fresh fruits; flour; dried,
processed and canned pork; beef and poultry meat; dairy
products not falling under basic necessities, noodles; onions;
garlic; vinegar; patis; soy sauce; toilet soap; fertilizer; perticides;
herbicides; poultry; swine and cattle feeds; veterinary products
for pouliry, swine and cattle; paper; school supplies; nipa
shingles; sawalé; cement; clinker; GI sheets; hollow blocks;
plywood; plyboard; construction nails; batteries; electrical
‘supplies; light bulbs; steel wire; and all drugs not classified as
essential drugs by the Department of Health.

Sec. 4. Exclusion from the Coverage of this Act. ~ Upon
petition of the concerned parties and after public hearing, the
implementing agency, with the approval of the President, may
exclude from the coverage of this Act, types or brands of the
goods included in the definition of basic necessities and prime
‘commodities, which may be deemed as nonessential goods or
luxury goods: Provided, That, any type or brand so excluded
may be reinstated by the implementing agency during occasions
of acuts shortage in the supply of the basic necessity or prime
commodity to which the excluded type or brand used ta belong

SEC. 5. IMegal Acts of Price Manipulation, - Without prejudice
to the provisions of existing laws on goods not covered by this
j



1560

Act, it alallbe unlawl for any person habitually engaged in
the prodiction, manufacture, importation, storage, transport,
distribution, sale or other methods of disposition of goads to
engage ih the following acts of price manipulation of the price
of any baie necessity or prime commodity.

(1) Hoarding, which is the undue accumulation by a person
or combination of persons of any basic necessity or prime
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 or prime commodity
to the general public or the unjustified taking out of any basic,
necessity or prime commodity from the channels of production,
trade, commerce and industry. Theré shall be prima facie
evidenge of hoarding when a person has stocks of any basic
necessity or prime commodity fifty percent (50%) higher than
his usyal inventory and unreasonably limits, refuses or faila
to sell the same to the general public at the time of discovery
of the stocks, The determination of a person's usual inventory
shall be reckoned fram the third month immediately preceding
hefore|the discovery of the stocks in case the person has been
angagéd in the businoss for at least three (3) months; otherwise,
it shall reckoned from the time he started his business;

|

(2) Frofiteoring, which is the sale or offering for sale of any
basic pecessity ‘or prime commodity at a price grossly in excess
of its|true worth. There shall be prima facie evidence of
profithering whenever a basie necessity or prime commodity
heing/sold: (a) has no price tag; (b) is misrepresented as to ite
Wright or measurement; () is adulterated or diluted: ot (d)
whentver a person raises the price of any basie necessity or
prime commodity he sells or offers for sale to the general public
by more than ten bercent (10%) of its price in the immediately
Precelling month: Provided, That, in the case of agricultural
Srops} fresh fish, fresh marine products, and other seasonal
prodycts covered by this Act and as determined by the

impl ing age: Hi enthaa
pa pose ‘agency, the prima facie provision shall not apply;

repressor a enn or

1551

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 @) 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
themselves.

Spo. 6. Automatic Price Control. ~ Unless atherwise declared
by the President, prices of basic necessities in an area shall
automatically be frozen at their prevailing prices or placed
under automatic price control whenever:

(1) That area is proclaimed or declared a disaster area or
under a state of calamity;

(2) That area is declared under an emergency,

(8) The privilege of the writ of habeas corpus is suspended in
that area;

(A) That area is placed under martial law;

(©) That area is declared to be in state of rebellion; or

(©) A state of war is declared in that area.

If the prevailing price of any basic necessity is excessive or
unreasonable, the implementing agency may recommend to
the President the imposition of a price ceiling for the sale of
the basic necessity at a price other than its prevailing price.

Unless sooner lifted by the President, price control of basic
necessities under this section shall remain effective for the

i
:


sneer En er A

|
| 1652

|

duration jof the condition that brought it about, but not for
more thah sixty (60) days.

The terms “disaster” and “calamity” shall include those
brought about by natural or man-made causes, whether local
or forvigh,

SC, 1] Mandated Price Ceiling. ~ The President, upon the
recommendation of the implementing agency, or the Price
Coordinating Council, may impose a price ceiling on any basic
necessity or prime commodity if any of the following conditions
0 warrants:

) The impendeney, existence, or effects of calamity;
) The threat, existence, or effects of an emergency;

(8) The prevalence or widespread acts of illegal price
manipplation;

ce
(@ 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

{
(6) Whenever the prevailing price of any basic necessity or
prime commodity has risen to unreasonable levels.

|
SEG, 8. Determination of Price Ceilings. ~ In determining

the reasonable price ceiling, the following fi
into consideration: « ee

(1) The average price, in the last three (3)
5 months
immediately Preceding the proclamation of the price ceiling,
of the basic necessity or prime commodity under consideration;

@)/The supply available in the market;

|
(3) The cost to the producer, fa istril
Biss including but not limited oe Netanen, stebutor or

eae nT TED EET I

1663

(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;

(©) Any change in the cost of labor brought about by a change
in the minimum wage; and

(@ 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.

‘SEC. 9, Allocation of Buffer Fund to the Implementing Agency.
~The implementing agency may procure, purchase, import,
or stockpile any basic necessity or prime commodity, devise
ways and means of distributing them for sale at reasonable
prices in areas where there is shortage of supply of a need to
effect changes in its prevailing price. For any or all of these
purposes, a buffer fund shall be allocated in the annual
appropriations of the implementing agencies,

Sec. 10. Powers and Responsibilities of Implementing
Agencies, ~ To carry out the intents and purposes of this Act,
the head of the implementing agency shall have the following
additional powers and responsibilities:

(A) He shall, with the approval of the President, promulgate

rules, regulations, and procedures for the implementation of
this Act;

(2) He shall develop, promulgate and implement programs,
Projects or measures to promote productivity in all basic

necessities and prime commodities under his agency's
jurisdiction;

{


a iliac a elie ci athe el

f
i

1664

|
(8) He shall promote and facilitate the establishment of an
effective procurement, storage, marketing and distribution
system of|basic necessities and prime commodities to ensure
their availability in all areas of the country where they are
needed; |
|
(4) During instances of panic-buying, he may, with tho
approval/of the President, institute temporary measures to
ensure orderly and equitable distribution to consumers of basic
accent and prime commodities in the affected area;

(S) Frdm time to time, he may issue suggested reasonable
retail prices for any or all basic necessities and prime
commodities under his jurisdiction for the information and
guidance of prodiicers, manufacturers, traders, dealers, sellers,
retailers, and consumers;

(6) He shall cause the immediate dissemination of any
mandajed price ceiling for any basic necessity or prime
commodity under his agency's jurisdiction through publication
in a newspaper of general circulation in the area affected, and
through broadcast by radio, or whenever deemed to materially
make jdissemination of the information more effective, by
television, He may also.cause the information to be
dissentinated through posting in public markets, supermarkets
or other, public places;

@ He may, upon approval of the President, and subject to
existing laws, rules and regulations on bidding, enter into any
agreement with any local or foreign producer, manufacturer,
supplier, distributor, or seller for the procurement of supplies
or stdeks of any basic necessity or prime commodity for purposes
Of ules stocking: Provided, That, in areas whero there are

rtages or rampant illegal maniy i
ondel Beet rampant egal manipulation of prises, he may

8) He may,
on bjdding,
wardhouses

Subject to existing laws, rules and regulations
enter any ny eerie with owners or operators of
or storage houses or ‘with owners, o}

0 s OPerators or
franlchiso holders of vehicles or public utilities for the storage,

1685 i

transport, or distribution of any basic necessity or prime
commodity;

@ He may conduct investigations of any violation of this
Act and, after due notice and hearing, impose administrative
fines in such amount as he may deem reasonable which shall
in no case be less than One thousand pesos (P 1,000) nor more
than One million pesos (P1,000,000). In the imposition of
administrative fines, the following factors shall be taken into
consideration:

(a) Whether the subject of the violation is a basic necessity
or a prime commodity; violations involving basic necessities
shall be deemed more serious;

(b) Whether the subject of the violation is under price control
under Sections 6 and 7 of this Act; violations involving basic
necessities and prime commodities under price control shall
be deemed more serious;

(© The number of violations committed; respondents who
had previously been found to have violated any of the provisions
of this Act shall be imposed a higher fine; and

(@ Such other considerations as may be deemed necessary
to carry out the intents, purposes and provisions of this Act.

(10) He may require the attendance and testimony of
witnesses or the production of goods, objects, books, papers,
documents, contracts, records, financial statements, accounts,
agreements and such other evidences material in the
determination of any violation of this Act;

(11) Without prejudice to the power to issue temporary closure
or temporary restraining order for a period which shall not be
more than ten (10) days, he may, after due notice and hearing,
issue cease and desist orders; reprimand; censure; suspend,
revoke or cancel any permit, license, authority or registration
issued by his office; or order the permanent closure of any
establishment violating provisions of this Act;



enemas

| 1656
|
(12) He may initiate summary proceedings to cause the

seizure by the Government of basic necessities and prime
commodities subject of a violation of this Act and order their
sale (o the public at reasonable prices whenever the nature of
6r tHe demand for such goods so requires: Provided, That,
pending litigation, the proceeds of the sale shall be held in
trust or eserow by the implementing agency: Provided, further,
Tha, should the owner of the basic necessity or prime
commodity seized and sold he found not liable for the violation
whith was the basis of the seizure, the proceeds from their
bald shal be paid to him otherwise, they shall accrue to the
general fund of the Government and: Provided, finally, That,
thelhead of the implementing agency shall cause the broadcast
in fadio 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;

'18) He may initiate action and cause the prosecution before
“s proper court of law of violators of this A

(14) He may deputize and enlist the assistence of any
government official or agency in carrying out the provisions of
his Act; and

(15) Such other functions and ancillary powers as may be
jecessary to effectively implement this Act.

| Seo, 11. Price Coordinating Council. ~ ‘There is hereby

reated a Price Coordinating Council, hereinafter referred to
's the Council, to be composed of the following members:

|

| () The Seeretary of Trade and Industry, as chairman;

| (2) The Secretary of Agriculture:

| (8) The Secretary of Health;

@) The Secretary of Environment and Natural Resources;

gene REE IE E RTTANTT LT

1587

(©) The Secretary of Local Government;
(6) The Secretary of Transportation and Communications;
(D The Secretary of Justice;

(8) The Director General of the National Economic and
Development Authority;

(®) One (1) representative from the consumers’ sector;

(10) One (1) representative from the agricultural producers’
sector;

(11) One (J) representative from the trading sector, and
(12) One (1) representative from the manufacturers’ sector
‘The sectoral representatives of the Price Coordinating

Council shall he appointed by the President for a term of one
(@) year, without prejudice to reappointment for another term,

‘The Council shall mect every quarter and whenever the
President or the Chairman shall convene the same. Bach
member shall receive reasonable reimbursements for
transportation,

Members from the government sector may designate their
representative to the Council.

The Department of Trade and Industry shall provided the
secretariat to the Council from its existing organizational
structure.

Sec..12. Functions of the Price Coordinating Council. ~ The
Price Coordinating Council shall have the following functions:

a) Ttshall: coordinate the productivity, distribution and price
stabilization programs, projects and measures of the
Government and develop comprehensive strategies to effect a



1558

general stabilization of prices of basic necessities and prime
commodities at affordable levels;

It shall report to the President and to the Congress of the
Philippines the status and progress of the programs, projects,
and medsures undertaken by each implementing department,
agency jor office as well as the comprehensive strategies
developed by the Council to estabilize the prices of basic
necessities and prime commodities;

(8) If shall advise the President on general policy matters
for promotion and improvement in productivity, distribution
and s{abilization of prices of basic necessities and prime
cb

(4 Itmay require from its members or any other government
agendy 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
comsnodity;

(6) It shall publicize from time to time developments in
productivity, supply, distribution and prices of basic necessities
and prime commodities; and

@ 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 newspaper of general circulation in the area affected, and
thfough broadcast by radio and, whenever the same is deemed
tol materially make dissemination of the information more
effective, by television. It may also disseminate the information

Brough Posting in public markets, supermarkets and other
philic places.

|

|Skc. 13. The Price Action Officer: Power and Functions. —
Whenever the President deems it necessary, he may appoint.
any of the members of the Price Coordinating Couneil as Price
Action Officer for the duration of the automatic price control
|

1659

under Section 6 of this Act who shall have the following powers
and functions:

(Q) He shall carry out, implement and enforce the policies
and decisions of the Council;

(2 He shall coordinate the actions of all implementing
agencies involved in the monitoring and investigation of
abnormal price movements and shortages of basic necessities
and prime commodities;

(8) He may call upon any official, agent, employee, agency or
instrumentality of the national or local government for any
other assistance that he may deem necessary to carry out the
purposes of this Act;

(4) He shall establish linkages and coordinate with
nongovernment or private organizations in the affected area
to assist in the monitoring and implementation of price control
therein; and

(6) He shall exercise such other functions and duties as may
be given to him by the President.

SEC, 14, Role of the National Statistics Office, ~The National
Statistics Office shall conduct independent periodic surveys
and studies of the selling prices of all basic necessities and
Prime commodities all over the country as well as their share
or effect on the family income of the different economic groups
in the country for purposes of serving as data base for
government efforts to stabilize prices, as well as evaluating
the effectivity of the same.

SBC. 15. Penalty for Acts of Illegal Price Manipulation. ~
Any person who commits any act of illegal manipulation of
any basic necessity or prime commodity under Section 5 hereof
shall suffer the penalty of imprisonment for a period of not
Jess than five (5) years nor more than fifteen (15) years, and
shall be imposed a fine of not less than Fiye thousand pesos
(P5,000) nor more than Two million pesos (P2,000,000),



| 1560

gu0.|16, Penalty for Violation of Price Ceilings. ~ 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, or a Bine of not less than Five thousand
pesos (P 5,000) nor more than One million pesos (1,000,000),
‘or both, at the discretion of the court.

‘SEO, 17. Violation by Juridical Persons. ~ Whenever any
violation of the provisions of this Act is committed by a juridical
persdn, its officials or employees, or in case of foreign
corporation or association, its agent or representative in the
Philippines who are responsible for the violation shall be held
Mablé therefor.

Seb. 18 Violation by Aliens. ~ In case of aliens, in addition to
the penalty provided in Section 16 or 16 of this Act, the offender
thall, upon conviction and after service of sentence, be
immpdiatoly deported without need of any further proceedings.

Ske. 19, 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 bhall likewise be principally responsible for the violation
and shall suffer the additional penalty of permanent
disqualification to hold publie office.

SEC. 20, Criminal Penalties Without Prejudice to
Adihinistrative Sanctions. ~The foregoing criminal penalties
shall be without prejudice to the administrative sanctions which

thelimplomenting agency may impose under this Act or under
any other law.

SC. 21, Relation of the Price Act of Other Laws, Presidential
Issuances. ~ Nothing in this Act shall be construed as removing
or tliminishing the jurisdiction of any agency of Government

on certain goods or products conferred by other laws or
presidential issuances

|
SEC. 22. Separability Clause. ~ If, for any reason, any

1561

person, group or circumstance is declared invalid or
unconstitutional, the remainder of this Act shall not be affected
by such declaration

SEC. 23. Repealing Clause. — To the extent inconsistent with
this Act, the following laws and letters of instruction are hereby
repealed:

(1) Republic Act No. 4164, entitled “An Act o Prevent the
Excessive Increase in the Price of Certain Prime Necessities of
Life on the Occasion of a Public Calamity, Penalizing the
Violation Thereof, and for other Purposes";

(2) Presidential Decree No. 1674, entitled “Providing a
Mechanism for Price Regulation, Creating a Price Stabilization
Council, Prescribing its Powers and Responsibilities and for
other Purposes";

(8) Letter of Instruction No, 1808, entitled “Directing
Measures to Prevent Cement Hoarding, Price Manipulation
and Purposes";

(4) Letter of Instruction No. 1924, entitled “Ordering
Immediate Measures to Prevent Price Manipulation and to
Protect Consumers”; and.

(6) Letter of Instruction No, 1859, entitled “Directing
Measures to Prevent Hoarding, Profiteering and Price
Manipulation.”

All laws, and rules and regulations inconsistent herewith
are hereby likewise repealed or modified accordingly.

Spo. 24. Effectivity Clause, - This Act take eff
it . fect three (3)
days after its publication in two (2) national newspapers of
general circulation.

Approved, May 27, 1992.