Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

NINETEENTH CONGRESS
First Regular Session

1143

HOUSE BILL NO."

Introduced by REP. FAUSTINO ‘INNO’ A. DY V

EXPLANATORY NOTE

When disaster strikes, so do acts of illegal price manipulation,

For example, in January 2020 the Taal Voleano erupted. As soon as volcanic ash
began to fall, the price of face masks began to rise. According to various verified news
reports, an N95 mask usually priced P25 per piece was sold for P200—a price leap of
more than 800%.!

Another example are surgical face masks. When COVID-19 hit, some sellers
priced surgical masks at P100 per piece.? Since then, mask prices have gone down, but
price-manipulators have largely escaped punishment because, under the current law,
N-95 masks and surgical face masks are not entitled to protection against price
manipulation.

The Price Act? makes it criminal for persons to commit illegal acts of price
manipulation, but this prohibition applies only to goods termed “basic necessities” listed
under the Act, which term does not cover face masks. Likewise not included are other
goods essential amid pandemics such as disinfectants, hand sanitizers, and rubbing
alcohol.

Another danger consumers face during emergencies is a shortage of goods
caused by panic-buying. The country’s experience at the start of the COVID-19

" Rappler, Stores run out of face masks as Taal Volcano ash spreads to Calabarzon, Metro Manila, January 13,
2020 <
https_/wwnwrapplercom/nation/face-masks-out-of'stock-stores-taal-voleano-ashfallspreads ~anuary-2020>,

2" The Philippine Star. 7 stores flagged for mask overprice, January 15, 2020
<hitps://wwwphilstarcon/headlines/2020/01/15/1984987/7-stores-flagged-mask-overprice>

* Rep. ActNo. 7381 (1992).



lockdown has shown this to be true as some people cleared the shelves, amassing masks,
disinfectants, and rubbing alcohol.

Admittedly, the Price Act prohibits sellers from hoarding goods. But in order to
effectively deter panic-buying, the government must acquire a clear mandate to impose
purchase limits on certain goods. This way, agencies can properly guide both the sellers
and the buying public. It is clear that the Price Act should be revisited to update it
according to the experiences of Filipinos . Hence, the instant Bill.

This Bill seeks to do this in two ways: first, by empowering the Department of
Trade and Industry to identify emergency basic necessities thereby providing the
government more flexibility to address any calamity or emergency; and second, by
allowing the government to impose purchase limitations on basic necessities and prime
commodities.

In view thereof, the passage of this Bill is earnestly sought.

=

VA
(USTINOENNO’ A. DY V


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

NINETEENTH CONGRESS
First Regular Session

1143

HOUSE BILL NO.

Introduced by REP. FAUSTINO ‘INNO’ A. DY V

AN ACT TO STRENGTHEN REPUBLIC ACT NO. 7581, AS AMENDED,
OTHERWISE KNOWN AS THE PRICE ACT OF 1992

Be it enacted by the 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, widespread illegal
price manipulation and other similar situations.

SECTION 2. Emergency Basic Necessities. Section 3 of the Same Act, as amended by
Republic Act. No. 10623, is hereby further amended to include the following
provisioi

“(1) ‘Basic necessities’ 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 or canned fish and other marine products; fresh
pork, beef and poultry meat; fresh eggs; potable water in bottles and
containers; fresh and processed milk; fresh vegetables and fruits; locally
manufactured instant 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; FURTHERMORE, THE TERM “BASIC
NECESSITIES” SHALL INCLUDE “EMERGENCY BASIC
NECESSITIES” AS HEREINAFTER DEFINED BY THIS ACT;

XXX

(9) “EMERGENCY BASIC NECESSITIES” SHALL REFER TO
ITEMS IDENTIFIED BY THE DEPARTMENT OF TRADE AND
INDUSTRY (DTI) TO BE AS SUCH FOR A SPECIFIED PERIOD OF
TIME. IN IDENTIFYING EMERGENCY BASIC NECESSITIES, THE.
DTI SHALL CONSIDER THE NATURE OF THE CALAMITY OR
PUBLIC HEALTH EMERGENCY PREVAILING IN THE COUNTRY.

THE DTI SHALL PROVIDE THE DURATION FOR WHICH AN
ITEM IS DEEMED AN EMERGENCY BASIC NECESSITY,
WITHOUT PREJUDICE TO THE PREMATURE TERMINATION OF
SUCH DECLARATION BY THE DTI FOR GOOD REASONS.

SECTION 3. Definition of Purchase Limit. Section 3 of the Same Act, as amended, is
hereby further amended as follows:

(10) “PURCHASE LIMIT’ IS THE MAXIMUM NUMBER OF
ITEMS OF A BASIC NECESSITY, EMERGENCY BASIC
NECESSITY OR PRIME COMMODITY AN INDIVIDUAL CAN
PURCHASE WITHIN ONE DAY.

SECTION 4, Section 3 of the Same Act, as amended, is hereby further amended as
follows:

(3) “implementing agency” means the department, agency or office of the
Government which has jurisdiction over a basic necessity or prime
commodity as defined in this Act, which shall be:
(a) 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 inputs;
(b) The Department of Health, with reference to drugs;

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

(d) The Department of Trade and Industry, with reference to all other


basic necessities, . INCLUDING EMERGENCY _ BASIC
NECESSITIES, and prime commodities.

SECTION 5. Section 10 of the Same Act, as amended, is hereby amended 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:

(1) xxx
(2) xxx
(3) xxx

(4) TO IMPLEMENT PURCHASE LIMITS FOR BASIC
NECESSITIES, INCLUDING EMERGENCY BASIC NECESSITIES,
AND PRIME COMMODITIES TO ENSURE ORDERLY AND
EQUITABLE DISTRIBUTION OF ‘THESE GOODS TO
CONSUMERS IN AFFECTED AREAS IN ORDER TO AVOID PANIC
BUYING AMONG PURCHASERS During instmees-of pante-buyingshe
mmay-with-the-epprevabot-the-President-institte-temporany-measares-te
Laminin aie soning anneal i oben

(5) xxx

(6) He shall cause the immediate dissemination of any mandated price
ceiling OR PURCHASE LIMIT 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 dissemination
of the information more effective, by television, AND THROUGH
POSTING IN OFFICIAL GOVERNMENT SOCIAL MEDIA
PLATFORMS. He may also cause the information to be disseminated
through posting in public markets, supermarkets or other public places;

SECTION 6. Separability Clause. If any provision of this Act is declared invalid or
unconstitutional, the other provisions not affected thereby shall continue to be in full
force and effect.

SECTION 7. Repealing Clause. — All laws, decrees, executive orders or rules and
regulations contrary to or inconsistent with the provisions of this Act are hereby

repealed or modified accordingly.


SECTION 8. Effectivity Clause. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in any newspaper of the general circulation.

Approved,