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IN a
message sent to Konsyumer Atbp. through text, a
listener inquires about her protection against sudden
price increases, especially during periods of calamity.
As a
housewife, Jenny Ricardo was the one who buys their
needs at home—from fresh goods to grocery items.
Although she “gets” it that movement in the price of
fish and vegetables is bound to happen during severe
weather conditions, what frustrates her is when some
retailers of manufactured items, such as canned fish and
processed meat, also increase their prices and use the
typhoon as the excuse.
In
situations like this Ricardo asks if consumers really
have ample protection against unscrupulous businesses
which implement sudden increases in the price of goods,
especially during typhoons or in the event of other
disasters.
The
answer is Yes. Republic Act 7581, otherwise known as the
Price Act, is a law that provides protection to
consumers by stabilizing the prices of basic necessities
and prime commodities by prescribing measures against
undue price increases during emergency situations and
like occasions.
The
Price Act states, “It is the policy of the state to
ensure the availability of basic necessities and price
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,
widespread illegal price manipulation and other similar
situations.”
But what
are these acts of price manipulation that are considered
illegal?
The
first one is hoarding or the undue accumulation by a
person of any basic necessity or prime commodity beyond
his normal inventory levels or the unreasonable
limitation or refusal to dispose of, sell or distribute
the stocks to the general public.
Hoarding
is also defined as the unjustified taking out of any
basic necessity or prime commodity from the channels of
production, trade, commerce and industry.
There
shall be prima-facie evidence of hoarding when a person
has stocks of any basic necessity or prime commodity 50
percent higher than his usual inventory and unreasonably
limits, refuses or fails to sell the same to the general
public at the time of discovery of the stocks.
Profiteering is the sale or offering for sale of any
basic necessity or prime commodity at a price grossly in
excess of its true worth.
There
could be acts of profiteering whenever a basic necessity
or prime commodity is being sold: has no price tag; is
misrepresented as to its weight or measurement; is
adulterated or diluted; or whenever a person raises the
price of any basic necessity or prime commodity he sells
or offers for sale to the general public by more than 10
percent of its price in the immediately preceding
month.
A cartel
is any combination of or agreement between two or more
persons engaged in the production, manufacture,
processing, storage, supply, distribution, marketing,
sale or disposition of any basic necessity or prime
commodity designed to artificially and unreasonably
increase or manipulate its price.
Cartel
is evidenced whenever two or more persons or business
enterprises competing for the same market and dealing in
the same basic necessity or prime commodity perform
uniform or complementary acts among themselves, which
tend to bring about artificial and unreasonable increase
in the price of goods or when they simultaneously and
unreasonably increase prices on their competing
products, thereby lessening competition among
themselves.
Meanwhile, aside from the protection provided by the
law, the government, particularly the Department of
Trade and Industry and the Department of Agriculture,
conducts heightened monitoring of price-and-supply
situation of goods, especially when disasters are
expected to strike to detect and forestall any
artificial price hikes.
These
agencies also coordinate with producers and
manufacturers to check on their inventories to ensure
that supply is enough, particularly on areas that are
expected to be hit the hardest.
Aside
from this, its field offices are constantly on the
lookout for possible supply shortages owing to problems
in distribution because of road blockades and assists in
looking for alternative channel for the distribution of
goods.
The
Local Price Coordinating Council are also alerted to
further intensify monitoring of prices in all cities and
provinces nationwide, as well as enforce strict
compliance of the price-tag law and properly calibrate
weighing scales, particularly in wet markets.
An
administrative fine of not less than P5,000 but not more
than P1 million shall be imposed for violation of the
Price Act subject to the circumstances provided after
due notice and hearing. Criminal liability may result in
imprisonment of not less than five years but not more
than 15 years.
Thus,
the government has enough measures in place to protect
consumers from traders and retailers who unjustifiably
raise prices to exorbitant levels in the event of a
calamity or when the country is in a state of emergency.
As a reminder to businesses, help and not exploitation
is desperately needed during hard times, especially
those directly hit by a disaster.
* * *
Send
your feedback and queries to konsyumeratbp@gmail.com.
For in-depth information on consumer issues, listen to
Konsyumer Atbp. every Saturday, 10:00-11:30 a.m. over
dzMM 630kHz. For consumer complaints, call the DTI
Consumer Assistance Hotline 751-3330 or Text
DTI<space>complaint and send to 2920 for Globe and Smart
subscribers. |
