Published — February 6, 2021
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
Aside from ILLEGAL ACTS OF PRICE MANIPULATION, read also: FALSE ADVERTISEMENT OF CONSUMER PRODUCTS
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Accumulation of any basic commodity beyond its inventory level is hoarding
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Selling of any basic necessity or prime commodity at a price grossly in excess of its true worth is profiteering
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Hoarding, profiteering, and cartel which is an agreement to artificially and unreasonably increase or manipulate the price of any basic necessity or prime commodity are not allowed
Manipulation, fueled with good intent, can be a blessing, but when used wickedly, it is the beginning of a magician’s karmic calamity. – T.F. Hodge
In relation to our previous article on Basic Necessities and Prime Commodities is the act of price manipulation. To reiterate, we have mentioned in our previous article that sellers have no absolute freedom to increase the price of commodities at their own will especially during trying times such as the occurrence of Covid-19 Pandemic. In other words, price manipulation is considered illegal under the Price Act.
What is price manipulation?
The law says:
It shall be unlawful for any person habitually engaged in the production, manufacture, importation, storage, transport, distribution, sale or other methods of disposition of goods to engage in illegal acts of price manipulation of the price of any basic necessity or prime commodity.
The following are illegal acts of price manipulation:
- Hoarding
- It refers to the undue accumulation by a person or combination of persons of any basic commodity beyond his or their normal inventory levels or the unreasonable limitation or refusal to dispose of, sell or distribute stocks of any basic necessity or prime commodity to the general public. It can also be the unjustified taking out of any basic necessity or prime commodity from the channels of reproduction, trade, commerce and industry.
- Profiteering
- It refers to the sale or offering of sale of any basic necessity or prime commodity at a price grossly in excess of its true worth. Take note that at first sight, the law considers that there is profiteering whenever a basic necessity or prime commodity being sold:
a. has no price tag;
b. misrepresented as to its weight or measurement;
c. is adulterated or diluted; or
d. whenever a person raises the price of any basic or prime commodity he sells or offers for sale to the general public by more than 10% of its price in the immediately preceding month
3. Cartel
- It refers to any combination of or agreement between two (2) 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.
Also, if 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 any basic necessity or prime commodity or when they simultaneously and unreasonably increase prices on their competing products, the law deems that they are engaged in a cartel.
What then is the penalty for the commission of any act of illegal price manipulation?
The law says:
Any person who commits any act of illegal price manipulation of any basic necessity or prime commodity shall suffer the penalty of imprisonment for a period of not less than five (5) years nor more than fifteen (15) years and shall be imposed a fine of not less than Five thousand pesos (Php 5,000.00) nor more than Two million pesos (Php 2,000,000.00).
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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