FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
SINo. 175 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
EXPLANATORY NOTE 
.JiJt '-6 
I 
Competitive markets, when feasible, are demonstrably the most efficient way of locating 
resources in the economy. With our unstable economic situation, however, it is not difficult 
to imagine how the basic commodities can be artificially raised. The exercise of market 
power by cartels has often led to onerous increases in prices and shortages of basic 
commodities which have burdened the consumers. 
This bill, therefore, seeks to amend Republic Act 7581, otherwise known as the "Price Act," 
by defining the situation constituting a prima facie case of cartelization in order to facilitate 
the enforcement of the prohibition against any form of cartel. 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. 
In view of the foregoing, approval of this bill is earnestly recommended. 
o "SONNY" F. TRiLLANES IV 
Senator 
1 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.'No. 175 
Introduced by Senator Antonio "Sonny" F. TriIIanes IV 
AN ACT 
TO STRENGTHEN THE PROHIBITION AGAINST MONOPOLIES AND 
CARTELS 
OF 
BASIC 
NECESSITIES 
OR 
PRIME 
COMMODITIES, 
AMENDING FOR THE PURPOSE REPUBLIC ACT NUMBERED SEVENTY-
FIVE HUNDRED AND EIGHTY-ONE, OTHERWISE KNOWN AS THE 
"PRICE ACT" 
Be in enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
1 
SECTION 1. Section 5, paragraph (3) ofR.A. No. 7581, is hereby amended to read 
2 
as follows: 
3 
XXXX 
4 
(3) Cartel, which is any combination of or agreement between two (2) or more 
S 
persons engaged in the production, manufacturing, processing, storage, supply, 
6 
distribution, marketing, sale or any disposition of any basic necessity or prime 
7 
commodity designed to artificially and unreasonably increase and manipUlate its 
8 
price. There shall be prima facie evidence of engaging in a cartel whenever two (2) or 
9 
more persons or business enterprises competing for the same market and dealing in 
10 
the same basic necessity or prime commodity perform uniform or complementary acts 
11 
among themselves which tend to bring about artificial and unreasonable increase in 
12 
the price of any basic necessity or prime commodity, or when they simultaneously 
13 
and unreasonably increase prices on their competing products thereby lessening 
14 
competition among themselves, IF THEY CONTROL AT LEAST TWENTY 
1 


1 
PERCENT (20%) OF THE MARKET, SALE, OR DISTRIBUTION OF THE BASIC 
2 
NECESSITY OR PRIME COMMODITY IN A REGION." 
3 
4 
SEC. 2. Section 10, paragraph 12 of the same Act is hereby amended to read as 
5 
follows: 
6 
"SECTION 10. Power and Responsibilities of Implementing Agencies. - To carry 
7 
out the intents and purposes of this Act, the head of the implementing agency shall 
8 
have the following additional powers and responsibilities: 
9 
XXXX 
10 
"(12) WITHOUT PREJUDICE TO THE CRIMINAL PROSECUTION OF THE 
11 
PERSONS ENGAGED IN ACTIVITES CONSTITUTING A CARTEL AS 
12 
PROVIDED IN THIS ACT, UPON A SHOWING OF A PRIMA FACIE EVIDENCE 
13 
PURSUANT TO SECTION (5) HEREOF, he may CAUSE THE SEIZURE of basic 
14 
necessities and prime commodities subject of a violation of this Act and order their 
15 
sale to the public at reasonable prices whenever the demand for such goods so 
16 
requires, OR WHEN THERE IS A PUBLIC AND OFFICIAL DECLARATION OF 
17 
ARTIFICIAL SHORTAGE IN THE MARKET OF SOME BASIC NECESSITIES 
18 
AS DEFINED IN SECTION 3, PARAGRAPH 1, AND/OR PRIME COMMODITIES 
19 
AS DEFINED IN SECTION 3, PARAGRAPH 8 OF THIS ACT: Provided, That, 
20 
pending litigation, the proceeds of the sale shall be held in trust or escrow by the 
21 
implementing agency: Provided, further, That, should the owner of the basic necessity 
22 
or prime commodity seized and sold be found not liable for the violation which was 
23 
the basis for the seizure, HE SHALL BE REFUNDED HIS ACQUISITION COST 
24 
AND EXPENSES INCURRED IN THE MARKETING THEREOF, otherwise, they 
25 
shall accrue to general fund of the Government and: Provided,jinally, That the head 
26 
of the implementing agency AS DEFINED IN SECTION 3, SUBPARAGRAPHS (a), 
27 
(b), (c) and (d) OF THIS ACT shall cause the broadcast in radio or television and the 
2 


1 
publication in at least two (2) newspapers of general circulation ofthe fact of sale or 
2 
disposition of such seized goods at least three (3) days before the date of sale or 
3 
disposition; 
4 
XXXX 
5 
SEC. 3. This Act shall take effect upon its approval and fifteen (15 days) after 
6 
publication in the Official Gazette or a newspaper of general circulation. 
Approved, 
3