Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS.
Second Regular Session

HOUSE BILL NO. 8450

Introduced by HON. JOY MYRA S. TAMBUNTING

EXPLANATORY NOTE

The COVID-19 pandemic brought about challenges to Filipino households especially with the
massive economic impact to the nation’s economy due to the long and strict community
quarantine measures. During the earlier months of the COVID-19 pandemic, there was a huge
shortage of medical necessities such as personal protective equipment and disinfectants which
was taken advantage of by some unscrupulous individuals who hoarded and sold these essentials
for twice or thrice the original price.

This proposed measure seeks to protect consumers from such activities and ensure that the
stability of price and supply of these essential goods. This measure shall amend Republic Act No.
7581, as amended by Republic Act No. 10623, otherwise known as the Price Act, to include
epidemics/outbreaks, pandemics or public health emergencies to the conditions for mandated
price ceiling and include personal protective equipment and medical devices to items covered by
the price control. This also seeks to penalize illegal price manipulation and violation of price ceiling
for personal protective and medical devices deemed as a priced commodity by the Department
of Health during times of public health emergencies.

On behalf of the people of Parafiaque City’s Second District, and for the common good of the
Filipino people, the approval of the said measure is earnestly sought.

REP. 3 ie 4 fit
istrict, Parafiaque City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

House Bit No,8450

Introduced by HON. JOY MYRA S, TAMBUNTING

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. "

XOX

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


(5) "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;

~anic-buying” means xx 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(1) OF REPUBLIC ACT NO. 11332,
ENTITLED THE "MANDATORY REPORTING OF NOTIFIABLE DISEASES
AND HEALTH EVENTS OF PUBLIC HEAL TH 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:

XxX

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 (PI,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 (DTI), 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
as 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,