FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No.la 0 6 
INTRODUCED BY SEN. MANNY VILLAR 
EXPLANATORY NOTE 
, -J 
fH'18 
; 
~-'1 
• 
During periods of abnormal disruption of the market caused by strikes, 
power failures, natural calamities, severe shortages or other extraordinary 
adverse circumstances, some parties within the chain of distribution of consumer 
goods have taken unfair advantages of consumers by charging grossly excessive 
prices for essential consumer goods and services. 
In order to prevent such unscrupulous party from taking unfair advantage 
of consumers during abnormal disruptions of the market, a law must be enacted 
penalizing such acts and imposing penalties therefore. The attached bill seeks to 
deter any individual from committing such acts to the great detriment of the 
public. 
In view of the foregoing, the approval of this bill is earnestly 
recommended. 
1 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
, Senate Bill No,13 0 6 
;, 
INTRODUCED BY SEN. MANNY VILLAR 
AN ACT 
Ii) 
'til 1') ", ,'; ., B 
' ,. 
...., '-
,~" 
' .. '. 
TO PROHIBIT PRICE GOUGING RELATING TO CERTAIN GOODS 
AND SERVICES IN AREAS AFFECTED BY MAJOR DISASTERS 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. Title. - This Act shall be known and cited as the "Protection 
From Price Gouging Against Disaster Victims Act". 
SECTION 2. Definition of Terms- For purposes of this Act, the term: 
a. "Affected Area" means an area affected by a major disaster declared 
by the 
President. 
b. "Consumer good or service" 
1. In general- the term 'consumer good or service' means a good, 
piece of eqUipment, or service provided primarily for personal, 
family, or household purposes, including food, water, ice, a 
chemical, a building supply, a tool, a petroleum product, a 
residential construction, reconstruction, or repair service, or a 
service for the removal of debris (including a damaged tree) or 
garbage. 
2, Inclusion- The term 'consumer good or service' includes a property 
or a facility rented to a consumer for use as a residence or storage 
facility. 
c. "Price Gouging" means the charging of an unconscionably excessive 
price by a supplier in an affected area. 
d. "Supplier" includes a seller, reseller, wholesaler, distributor, retailer, 
lessor, provider, or licensed or unlicensed contractor, subcontractor, or 
laborer engaged in the provision or distribution of a consumer good or 
service. 
2 


e. "Unconscionably Excessive Price" means a price charged in an affected 
area for a consumer good or service that-
1. represents a gross disparity between the price charged for the good 
or service and the average price of the good or service charged by 
suppliers in the affected area during the 30-day period immediately 
before the President declares the existence of a major disaster; and 
2. is not attributable' to increased wholesale or operational costs 
incurred by the supplier in connection with the provision of the 
consumer good or service. 
SECTION 3. Determination of the Department of Trade and Industry-
Following the declaration of a major disaster by the President, the Department 
shall--
a. consult with the Regional Office of the Department of Trade and 
Industry in the place in which the disaster occurred and shall determine whether 
• 
any supplier in the affected area is charging or has charged an unconscionably 
excessive price for any consumer good or service provided in the affected area; 
and 
b. establish within the Commission--
1. a toll-free hotline that a consumer may call to report an incidence 
of price gouging in the affected area; and 
2. a program to develop and distribute to the public informational 
materials in Filipino and English to assist residents of the 
affected area in detecting and avoiding price gouging. 
SECTION 4. Offense- During the 180-day period after the date on which a 
major disaster is declared by the President, no supplier shall provide, or offer to 
provide, any consumer good or service in an affected area at an unconscionably 
excessive price. 
Any person found who shall be found guilty of violating this Act shall suffer 
a prison term of not more than one (1) year plus a fine of Ten Thousand Pesos 
(P10,OOO.OO). 
SECTION 5. Report- Not later than 1 year after the date of enactment of 
the Protection From Price Gouging Against Disaster Victims Act , and annually 
thereafter, the Department shall submit to the Committee on Trade and 
Commerce of the Senate and of the House of Representatives a report 
describing-
a. the number of price gouging complaints received by the Deapartment 
for each major disaster declared by the President during the preceding year; 
b. the number of price gouging investigations of the Commission initiated, 
in progress, and completed as of the date on which the report is prepared; 
c. the number of enforcement actions of the Commission initiated, in 
progress, and completed as of the date on which the report is prepared; 
d. an evaluation of the effectiveness of the toll-free hotline and program 
established; and 
e. recommendations for any additional action with respect to the 
implementation or effectiveness of this Act. 
3 


• 
SECTION 6. Implementing Rules and Regulations- The Secretary of 
Trade and Industry shall promulgate such rules and regulations as may be 
necessary to implement the provisions of this Act within thirty (30) days after 
approval of this Act; 
SECTION 7. All laws, decrees or executive issuances and any rules and 
regulations or any part thereof which may be inconsistent with any of the 
provisions of this Act are hereby deemed repealed, amended or modifies 
accordingly. 
SECTION 8. This Act shall take effect fifteen (15) days after its complete 
publication in two (2) newspapers of general publication. 
Approved, 
4