Republic of the Philippines
House of Representatines
Quezon Gity, Meteo Manila

EIGHTEENTH CONGRESS
Second Regular Session

House Bill Nv. 7173

INTRODUCED BY
REP. ALFRED VARGAS

AN ACT
PROVIDING PROTECTION TO CONSUMERS AND THEIR MEDICAL
NECESSITIES DURING PUBLIC HEALTH EMERGENCIES, EPIDEMICS OR
OUTBREAKS, AND PANDEMICS, AMENDING REPUBLIC ACT NO. 7581,
AS AMENDED OTHERWISE KNOWN AS THE “PRICE ACT”
AND FOR OTHER PURPOSES

EXPLANATORY NOTE

Epidemics or outbreaks, pandemics, and public health
emergencies affect not only the health and well-being of the people, but
their socio-economic life as well.

As soon as international and local health officials announced the
beginning of what is to be known as the COVID-19 pandemic, news of
hoarding and panic-buying of medical supplies among consumers have
occurred immediately. Given the limited supply, these unnecessary
stockpiling of medical goods have robbed some of our citizens the critical
medical care and equipment they deserve. What is worse is that some of
the hoarders have taken advantage of the unfortunate situation and
have tried to re-sell these important medical necessities at an overprice,
much to the detriment of the ailing public. The health, well-being, and
socio-economic situation of the greater public needs to be protected.

This bill seeks to provide protection to consumers and their
medical necessities during public health emergencies, epidemics or
outbreaks, and pandemics, amending Republic Act No. 7581, as
amended by Republic Act No. 10623, otherwise known as the Price Act,
by ensuring that the price and supply of personal protective equipment,


including face masks and safety goggles and medical devices such as
nebulizers, ethyl alcohol solution and oxygen cannulas remain stable
during times of emergencies. In order to fulfill these goals, this bill seeks
to:

1) Define and include personal protective equipment and medical
devices as prime commodities, the price of which may be
subjected to price ceilings;

2) Clarify that price control measures for basic necessities and

prime commodities, including personal protective equipment

and relevant medical devices may also be imposed in times of
outbreaks or epidemics, pandemics, or public health
emergencies; and

Increase the administrative fines and criminal penalties for

violations of the Price Act.

3

In view of the foregoing, the immediate passage of this bill is

earnestly sought.

ALFRED V. ‘AS


Republic af the Philippines
House of Representatives
Quezon City, Motes Mawila

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No. 7173

INTRODUCED BY
REP. ALFRED VARGAS

AN ACT
PROVIDING PROTECTION TO CONSUMERS AND THEIR MEDICAL
NECESSITIES DURING PUBLIC HEALTH EMERGENCIES, EPIDEMICS OR
OUTBREAKS, AND PANDEMICS, AMENDING REPUBLIC ACT NO. 7581,
AS AMENDED OTHERWISE KNOWN AS THE “PRICE ACT”
AND FOR OTHER PURPOSES

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

SECTION 1. Section 2 of Republic Act No. 7581, as amended, is hereby
amended to read as follows:

“SEC. 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, PUBLIC HEALTH EMERGENCIES,
EPIDEMICS OR OUTBREAKS, PANDEMICS, widespread illegal price
manipulation and other similar situations. “

XXX

SECTION 2. Section 3 of Republic Act No. 7581, as amended, is hereby
amended and renumbered accordingly as follows:


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

(1) “Basic necessities” includes x x x

(2) “Buffer fund” means x x x

(3)“EPIDEMIC/OUTBREAK” REFERS TO AN OCCURRENCE OF
MORE CASES OF DISEASES THAN NORMALLY EXPECTED
WITHIN A SPECIFIC PLACE OR GROUP OF PEOPLE OVER A
GIVEN PERIOD OF TIME;

(4) “Implementing agency” means x x x

(3)“MEDICAL DEVICE” MEANS ANY INSTRUMENT, APPARATUS,
MACHINE, IMPLANTS, OR IN VITRO REAGENTS INTENDED
FOR USE IN, OR ACTUALLY USED IN DIAGNOSIS,
TREATMENT, MONITORING OR PREVENTION OF DISEASE OR
INJURY;

(6)“PANDEMIC” REFERS TO AN EPIDEMIC OCCURING
WORLDWIDE, OR OVER A VERY WIDE AREA, CROSSING
INTERNATIONAL BOUNDARIES AND USUALLY AFFECTING A
LARGE NUMBER OF PEOPLE;

(7) “Panic-buying” means x x x

(8) “Person” means x x x

(9)“PERSONAL PROTECTIVE EQUIPMENT” MEANS EQUIPMENT
INTENDED FOR USE TO PROTECT THE EYES, FACE, HEAD,
HEARING, EXTREMITIES, OR A RESPIRATORY TRACT FROM
HAZARDS OR TO FUNCTION AS PROTECTIVE CLOTHING, AS A
PROTECTIVE SHIELD OR BARRIER, AS PERSONAL FALL
ARREST OR LADDER SAFETY DEVICES OR AS SAFETY AND
HEALTH MONITORING AND INSTRUMENTATION DEVICES;

(10) “Prevailing Price” means x x x

(11) “Price ceiling” means x x x

(12) “Prime Commodities” are 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; toilet soap; fertilizer, pesticides and
herbicides; poultry, livestock and fishery feeds and veterinary
products; paper; school supplies; nipa shingle; sawali; cement;
clinker; GI sheets; hollow blocks; plywood; plyboard; construction
nails; batteries; electrical supplies; light bulbs; steel wire;
PERSONAL PROTECTIVE EQUIPMENT AND MEDICAL DEVICES
AS DETERMINED BY THE DEPARTMENT OF HEALTH; 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;
AND

(13) “PUBLIC HEALTH EMERGENCY” REFERS TO AN
OCCURRENCE OR IMMINENT THREAT OF AN ILLNESS OR
HEALTH CONDITION AS DEFINED UNDER SECTION 3(I) OF
REPUBLIC ACT NO. 11332, ENTITLED THE “MANDATORY
REPORTING OF NOTIFIABLE DISEASES AND HEALTH EVENTS
OF PUBLIC HEALTH CONCERN ACT.”

SECTION 3. Section 6 of Republic Act No. 7581, as amended, is hereby
amended to read as follows:

“Sec. 6. Automatic Price Control. - Unless otherwise declared by the
President, prices of basic necessities, PERSONAL PROTECTIVE
EQUIPMENT AND MEDICAL DEVICES AS DETERMINED BY THE
DEPARTMENT OF HEALTH in an area shall automatically be frozen
at their prevailing prices or placed under automatic price control
whenever:

735.353

SECTION 4. Section 7 of Republic Act No. 7581, as amended, is hereby
amended to read as follows:

“Sec. 7. 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 so
warrants:

XxX
(2) The threat, existence, or effect of an emergency, INCLUDING AN
EPIDEMIC/OUTBREAK, PANDEMIC OR A PUBLIC HEALTH
EMERGENCY;

XXX

SECTION 5. Section 10 of Republic Act No. 7581, as amended, is
hereby amended to read as follows:

“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:

(5) From time to time, he may issue suggested reasonable retail prices
for any or all basic necessities and primes commodities under his
jurisdiction, UPON CONSULTATION WITH RELEVANT
STAKEHOLDERS, for this information and guidance of producers,
manufacturers, traders, dealers, sellers, retailers, and consumers.
FOR THIS PURPOSE, THE IMPLEMENTING AGENCY SHALL
ADOPT MECHANISMS TO ENSURE THE DISSEMINATION OF SUCH
INFORMATION, INCLUDING THE DIFFERENCE BETWEEN
SUGGESTED RETAIL PRICES AND MANDATORY PRICE CEILINGS
OR PRICE FREEZE.

XXX

(9) He may conduct investigations of any violation if this Act and, after
due notice and hearing, impose administrative fined in such amount
as he may deem reasonable which shall in no case be less than One
thousand pesos (P1,000) nor more than THREE MILLION PESOS
{P3,000,000). In the imposition of administrative fines, the following
factors shall be taken into consideration:

XXX
SECTION 6. Section 15 of Republic Act No. 7581, as amended, is
hereby amended to read as follows:

“Sec. 15. Penalty for Acts of Illegal Price Manipulation. — Any
person who commits any act of illegal price manipulation of any basic
necessity or prime commodity under Section 5 hereof shall suffer the
penalty of imprisonment for a period of not less than five (5) years nor
more than ten (10) 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); PROVIDED, THAT THE PENALTY FOR PERSONS
WHO COMMIT ACTS OF ILLEGAL PRICE MANIPULATION OF
PERSONAL PROTECTIVE EQUIPMENT AND MEDICAL DEVICES
IDENTIFIED BY THE DEPARTMENT OF HEALTH AS A PRIME
COMMODITY DURING TIMES OF EMERGENCIES, INCLUDING
EPIDEMICS/OUTBREAKS, PANDEMICS OR PUBLIC HEALTH
EMERGENCY, SHALL SUFFER THE PENALTY OF IMPRISONMENT
FOR A PERIOD OF NOT LESS THAN FIVE (5) YEARS BUT NOT
MORE THAN TWENTY (20) YEARS, AND SHALL BE IMPOSED A
FINE OF NOT LESS THAN TEN THOUSAND PESOS (P10,000) BUT


NOT MORE THAN FOUR MILLION PESOS (P4,000,000),
DEPENDING ON THE SEVERITY, FREQUENCY AND EXTENT OF
THE VIOLATION COMMITTED.

SECTION 7. Section 16 of Republic Act No. 7582, as amended, is
hereby amended to read as follows:

“Sec. 26. 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 or a fine of not less than Five thousand pesos (P5,000)
nor more than One million pesos (P1,000,000) or both, at the
discretion of the court; PROVIDED, THAT THE PENALTY FOR
PERSONS WHO VIOLATE THE PRICE CEILING FOR THE SALE OF
PERSONAL PROTECTIVE EQUIPMENT AND MEDICAL DEVICES
IDENTIFIED BY THE DEPARTMENT OF HEALTH AS A PRIME
COMMODITY DURING TIMES OF EMERGENCIES, INCLUDING
EPIDEMICS/OUTBREAKS, PANDEMICS OR PUBLIC HEALTH
EMERGENCY, SHALL SUFFER THE PENALTY OF IMPRISONMENT
FOR A PERIOD OF NOT LESS THAN TWO (2) YEARS BUT NOT
MORE THAN TWENTY (20) YEARS, AND SHALL BE IMPOSED A
FINE OF NOT LESS THAN TEN THOUSAND PESOS (P10,000) BUT
NOT MORE THAN TWO MILLION PESOS (P2,000,000), DEPENDING
ON THE SEVERITY, FREQUENCY AND EXTENT OF THE
VIOLATION COMMITTED.

SECTION 8. Implementing Rules and Regulations. - Within ninety (90)
days from the effectivity of this Act, the Department of Trade and Industry
(DT), in consultation with the members of the Price Coordinating Council
and relevant stakeholders, shall promulgate the necessary rules and
regulations for the effective implementation of this Act.

SECTION 9. Separability Clause. - Any portion or provision of this Act
that is declared unconstitutional or invalid shall not have the effect of
nullifying other portions or provisions hereof s long as such remaining
portions can still subsist and be given effect in their entirety.

SECTION 10. Repealing Clause. - All laws, ordinances, rules, regulations,
other issuances or parts thereof, which are inconsistent with this Act, are
hereby repealed or modified accordingly.


SECTION 11. Effectivity. - This Act shall take effect fifteen (15) days after
its publication in the Official Gazette or in two (2) newspapers of general
circulation.

Approved,