The Department of Trade and Industry (DTI) on Wednesday said it is set to file administrative cases against shops which allegedly engaged in profiteering activities by selling overpriced face masks following the eruption of Taal Volcano.
During their market inspection in Manila on Monday, Trade Undersecretary Ruth Castelo said authorities found 12 medical suppliers to be selling overpriced and low-quality N95 masks.
Castelo said the establishments were given 48 hours to explain why they should not be held accountable for the said infraction.
“Under the Price Act, the penalty is P5,000…ranging between P5,000 to P2 million. When found to really have committed profiteering, we can impose the highest penalty of P2 million,” she said.
Castelo said companies could also face criminal liability and may have their business permits suspended.
The eruption of Taal Volcano on Sunday sparked the panic buying of N95 masks in Metro Manila and in provinces in Region 4A due to the ashfall, which poses health hazards.
Some medical suppliers took advantage of the surge in the demand for N95 masks by jacking up their prices to as high as P200 for each item.
Health Undersecretary Eric Domingo said the prescribed price for the said N95 masks range from P45 to P105, depending on its quality and brand.
“Any centavo higher than the price ceiling imposed by the DOH [Department of Health] would be an offense already, so, we could file cases against them [violators], whether administrative or criminal,” Castelo said.
To address the shortage of N95 masks, Castelo said authorities will coordinate with major suppliers and retailers of medical supplies, such as Mercury Drug, Watsons and South Star Drug.
“They have committed to the Department of Trade and Industry that they will not increase their prices. Stocks in their branches and warehouses in non-affected areas have been transferred to the affected areas, such as the Calabarzon, especially Batangas, NCR [National Capital Region] and Region 3 while they wait for the arrival of new stocks,” she said.
“The DTI had also communicated with foreign suppliers to immediately send stocks to the country,” she added.
Castelo again reminded establishments of the existing price freeze on basic commodities in Batangas, which has been placed under a state of calamity.
The DTI official warned that the government will go after companies that will violate the price freeze.