Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Third Regular Session 
HOUSE BILL NO. ________ 
Introduced by: CONG. “KUYA” JOSE ANTONIO R. SY-ALVARADO 
EXPLANATORY NOTE 
The increased mobility during the holiday season, laxer compliance to health protocols, and the 
presence of the highly contagious Omicron variant have increased COVID-19 cases in the country. 
As the pandemic continues to worsen during the flu season, the demand of paracetamol and other 
drugs for flu and cold skyrocketed. One pharmaceutical lab mentioned in their statement that some 
of their brands are out-of-stock due to extraordinary demands. 
However, retailers and local drugstore owners said that there are no shortages in supplies. Rather, 
the suppliers of drugs for flu and cold increased their prices making them skip on replenishing 
their inventory. 
This bill aims to penalize and deter practices like hoarding and profiteering that leads to 
unnecessary increase in prices of critical medicines for COVID-19 and supportive medicines for 
symptomatic treatment. 
Thus, the immediate passage of this bill is earnestly sought. 
CONG. “KUYA” JOSE ANTONIO R. SY-ALVARADO 
Representative 
1st District, Bulacan 
January 14, 2022
5:24 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Third Regular Session 
HOUSE BILL NO. ________ 
Introduced by: CONG. “KUYA” JOSE ANTONIO R. SY-ALVARADO 
AN ACT 
PENALIZING THE HOARDING, PRICE MANIPULATION OF PARACETAMOL AND 
OTHER MEDICINES FOR FLU AND COLD, AND ENGAGING IN CARTEL 
OPERATIONS IN ORDER TO INFLUENCE THE DEMAND AND SUPPLY OF 
MEDICINES AND OTHER PHARMACEUTICAL PRODUCTS IN THE COUNTRY  
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled 
SECTION 1. Short Title. This Act shall be known as “Lingkod Security and Stability of 
Medicines for Flu and Cold Act of 2022” 
SECTION 2. Declaration of Policy. The 1987 Constitution provides that “the State shall promote 
a just and dynamic social order that will ensure the prosperity and independence of the nation and 
free the people from poverty through policies that provide adequate social services, promote full 
employment, a rising standard of living and an improved quality of life for all.”  
SECTION 3. Coverage. This Act shall apply to all persons engaged in the production, 
manufacture, importation, storage, transport, distribution, sale or other methods of disposition of 
medicine and other pharmaceutical products.  
SECTION 4. Prohibited Acts. The following shall be punishable under this Act, to wit: 
a) Hoarding- refers to the undue accumulation by a person or combination of persons of
medicine beyond his or their normal inventory levels or the unreasonable limitation or
refusal to dispose of, sell or distribute the stocks of medicine to the general public. There
shall be prima facie evidence of hoarding when a person has stocks of a specific medicine
thirty percent (30%) higher than his usual inventory and unreasonably limits, refuses or
fails to sell the same to the general public at any given time. The determination of a person's
usual inventory shall be reckoned from the third month immediately preceding before the
discovery of the stocks in case the person has been engaged in the business for at least three
(3) months; otherwise, it shall be reckoned from the time he started his business.
b) Profiteering- refers to the sale or offering for sale of medicine and other pharmaceutical
products at a price grossly in excess of its market value. There shall be prima facie evidence
of profiteering whenever a person raises the price of medicine and other pharmaceutical
products for sale to the general public by more than five percent (5%) of its price in the
immediately preceding month
c) Cartel- refers to 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 medicines and other pharmaceutical products 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 perform uniform or
complementary acts among themselves which tend to bring about artificial and
unreasonable increase in the price of medicines and other pharmaceutical products or when
they simultaneously and unreasonably increase prices on their competing products thereby
lessening competition among themselves.
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d) Price Manipulation- is any act committed by any person engaged in the production, 
manufacture, importation, storage, transport, distribution, sale or other methods of 
disposition of medicines, which seeks to control and influence the price of medicine and 
other pharmaceutical products at any given time.  
 
SECTION 5. Penalties. A fine of Fifty Million Pesos (P50,000,000) and imprisonment for a 
period not less than six (6) years but not exceeding twelve (12) years shall be imposed on any 
person who commits any of the prohibited acts.  
 
A fine of One Hundred Million Pesos (P100,000,000) and imprisonment for a period not less than 
twelve (12) years but not exceeding twenty (20) years shall be imposed on any person for a 
violation of this Act for the second offense. 
 
In addition, a single violation of this Act shall result in the revocation of all licenses, permits and 
registration given to any person as well as the confiscation and forfeiture of all pharmaceutical 
products in favor of the National Government.  
 
SECTION 6. Disposal of Confiscated Medicine and Pharmaceutical Products. All medicine 
and pharmaceutical products confiscated and forfeited in favor of the National Government shall 
be appropriated for the immediate distribution primarily to those areas which are in need of relief, 
including but not limited to those areas hit by calamities and/or in strict quarantine zones. Any 
excess shall be sold in duly accredited market places by representatives of the DOH and the FDA. 
All proceeds of which will be remitted to the National Treasury to be utilized solely for the 
development and production of the local manufacturers. 
 
SECTION 7. Implementing Rules and Regulations. Within thirty (30) days from the effectivity 
of this Act, the Department of Health (DOH), Food and Drug Administration (FDA) and 
Department of Trade and Industry (DTI), in consultation with the other relevant government 
agencies and stakeholders, shall issue necessary rules and regulations to implement the provisions 
of this Act. 
 
SECTION 8. Separability Clause. If any provision of this Act is declared unconstitutional, the 
same shall not affect the validity and effectivity of the other provisions hereof. 
 
SECTION 9. Repealing Clause. All laws, decrees, orders, issuances or portion thereof, which 
are inconsistent with the provisions of this Act are repealed or modified accordingly. 
 
SECTION 10. Effectivity. This Act shall take effect fifteen (15) days after its publication in two 
(2) newspapers of general circulation. 
 
Approved,