AN ACT PROVIDING FOR THE FIXING OF THE MAXIMUM SELLING PRICE OF ESSENTIAL ARTICLES OR COMMODITIES

Case Overview and Summary

National Policy and Coverage (Section 1):
- Prevent monopoly, hoarding, speculation, manipulation, and profiteering on essential commodities.
- Fix maximum prices for essential commodities to increase production and productivity.
- Essential commodities covered: medicines, drugs, surgical supplies, food, foodstuffs, clothes, clothing, sewing and weaving materials, fuels, lubricants, construction materials, educational supplies and equipment, fertilizers, insecticides, pesticides, and agricultural inputs.

Price Control Council (Section 2):
- Created to carry out the policy.
- Composed of government officials and a consumer representative appointed by the President.
- Majority constitutes a quorum, and three affirmative votes required for decisions.
- Consumer representative receives per diem of ₱50 per meeting, up to ₱1,000 per month.
- Local price councils in provinces and cities under the control and supervision of the Price Control Council.

Maximum Price Fixing (Section 3):
- If market price rises by 20% or more from March 1, 1969, or if deemed necessary, the Council shall establish maximum prices after notice and hearing.
- Maximum price shall be fair, just, and reasonable, not exceeding production cost plus 10% markup for manufacturers, 5% for wholesalers, and 10% for retailers (for local products), or landed cost plus 5% for importers, 5% for wholesalers, and 10% for retailers (for imported products).
- Maximum prices effective 10 days after publication in two newspapers.

Addressing Shortages (Section 4):
- If an essential commodity is in short supply, the Council shall certify the needs of local producers and recommend to the Monetary Board to provide foreign exchange for importing raw materials.
- If local production cannot cover the shortage, the Council shall certify the deficiency and recommend providing foreign exchange to importers.
- If measures fail to arrest price rise, the Council may recommend, and the President may authorize, government agencies or corporations to import and distribute the commodity.

Rules and Regulations (Section 5):
- The Council shall promulgate necessary rules and regulations, subject to the President's approval.
- Rules and regulations take effect 15 days after publication in two newspapers for two consecutive weeks.
- Rules and regulations shall be posted at the entrance of City Hall or Municipal Building in English and local dialect.

Penalties (Section 6):
- Imprisonment of 2 months to 5 years, or fine of ₱2,000 to ₱20,000, or both, for selling above maximum price or violating the Act, orders, rules, or regulations.
- For aliens, deportation after serving sentence.
- Corporate liability for officers, directors, managers, agents, or representatives who knowingly permitted or failed to prevent offenses.
- Government officials or employees who aided or abetted violations shall be held criminally liable as co-principals and suffer perpetual disqualification from public office.
- Unauthorized disclosure of confidential business information by authorized agents of the Council is punishable by fine of ₱2,000 to ₱20,000 and imprisonment of 2 to 5 years.

Appropriations and Assistance (Section 8):
- ₱250,000 appropriated for operating expenses for fiscal year ending June 30, 1970.
- ₱500,000 appropriated for operating expenses for fiscal year ending June 30, 1971, with a maximum of ₱100,000 for personal services.
- The Council and Bureau of Commerce may request staff or assistance from government agencies with the President's approval.

Effectivity and Transition (Section 9):
- The Act takes effect upon approval and continues in force until June 30, 1971.
- Convictions and prosecutions under the Act shall remain valid and enforceable after its expiration.