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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.
AT A GLANCE:
The Price Act provides protection to consumers against hoarding, profiteering and cartels with respect to supply, distribution, marketing and pricing of said goods, especially during periods of calamity, emergency, widespread illegal manipulation and other similar situations. (Section 2, Republic Act No. 7581 or the Price Act)
Basic necessities refer to goods vital to the needs of consumers for their sustenance and existence. (Section 3, par. 1, Price Act, as amended by Section 1, Republic Act No. 10623)
Prime Commodities are goods not considered as basic necessities but are essential to consumers. (Section 3, par. 8, Price Act, as amended by Section 2, Republic Act No. 10623)
Republic Act No. 7581 or the Price Act ensures the availability of basic necessities and prime commodities at reasonable prices at all times without denying legitimate businesses its fair return of investment.
The Price Act provides protection to consumers against hoarding, profiteering and cartels with respect to supply, distribution, marketing and pricing of said goods, especially during periods of calamity, emergency, widespread illegal manipulation and other similar situations. (Section 2, Republic Act No. 7581 or the Price Act)
Basic necessities refer to goods vital to the needs of consumers for their sustenance and existence.
Basic necessities include, but are not limited to, rice, corn, root crops, bread; fresh, dried or canned fish and other marine products; fresh pork, beef and poultry meat; fresh eggs; potable water in bottles and containers; fresh and processed milk; fresh vegetables and fruits; locally manufactured instant noodles; coffee; sugar; cooking oil; salt; laundry soap and detergents; firewood; charcoal; household liquefied petroleum gas (LPG) and kerosene; candles; essential drugs as classified by the Department of Health, and such other goods as may be included under the Price Act. (Section 3, par. 1, Price Act, as amended by Section 1, Republic Act No. 10623)
Prime Commodities are goods not considered as basic necessities but are essential to consumers.
Prime commodities include, but are 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 shingles; sawali; cement; clinker; GI sheets; hollow blocks; plywood; plyboard; construction nails; batteries; electrical supplies; light bulbs; steel wire; all drugs not classified as essential drugs by the Department of Health and such other goods as may be included under the Price Act. (Section 3, par. 8, Price Act, as amended by Section 2, Republic Act No. 10623)
Automatic Price Control
The prices of basic necessities shall be automatically frozen at their prevailing prices under certain circumstances. The Price Act says:
“Unless otherwise declared by the President, prices of basic necessities in an area shall automatically be frozen at their prevailing prices or placed under automatic price control whenever:
(a) That area is proclaimed or declared a disaster area or under a state of calamity;
(b) That area is declared under an emergency;
(c) The privilege of the writ of habeas corpus is suspended in that area;
(d) That area is placed under martial law;
(e) That area is declared to be in a state of rebellion; or
(f) A state of war is declared in that area.
If the prevailing price of any basic necessity is excessive or unreasonable, the implementing agency may recommend to the President the imposition of a price ceiling for the sale of the basic necessity at a price other than its prevailing price.
Unless sooner lifted by the President, price control of basic necessities under this section shall remain effective for the duration of the condition that brought it about, but not for more than sixty (60) days: Provided, That, in the case of basic necessities that are wholly imported and deregulated under existing laws such as, but not limited to, household LPG and kerosene, price control thereon shall remain effective for a period of not more than fifteen (15) days, taking into consideration the current inventory or supply levels thereof.” (Section 6, Price Act of the Philippines, as amended by R.A. No. 10623)
The head of the Department of Trade and Industry (DTI), as the implementing agency of the Price Act with respect to all other basic necessities and prime commodities, may issue suggested retail prices for any or all basic necessities and price commodities under its jurisdiction for the information and guidance of producers, manufacturers, traders, dealers, sellers, retailers and consumers. (Section 10, par. 5, Price Act)
In the case of The City of Manila v. Manila Blue Printing Co., Inc. (G.R. No. L-48466, August 30, 1943), the Supreme Court held:
“The definition of the word “retail,” as applied to sales is to sell in small quantities as by the year, pound, gallon, etc.; to sell directly to the consumer in small quantities, such as are immediately called for by consumers. “Wholesale” means sale made in large quantities, as distinguished from those made in small quantities which are to be regarded as sales at retail.”
In the same case, the Supreme Court ruled that there are two criteria by which a sale of commodity should be considered retail or wholesale.
Jurisprudence says:
“Only is by the quantity, whether small or large; and the other is by the nature of the buyer, whether he is a consumer or a merchant who resells to a profit.”
In the case of Sy Kiong v. Marcelino Sarmiento (G.R. No. L-2934, November 29, 1951), it was ruled that:
“It is the character of the purchaser and not the quantity of the commodity sold that determines if the sale is wholesale or retail. If the purchaser buys the commodity for his own consumption, the sale is considered retail, irrespective of the quantity of the commodity sold. If the purchaser buys the commodity for resale, the sale is deemed wholesale regardless of the quantity of the transaction.”
Read also: What is the effect of the inadequacy of price in a foreclosure sale?
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