Prevention of Price Manipulation and Protection of Consumers

July 7, 1983

LETTER OF INSTRUCTIONS NO. 1342

ORDERING IMMEDIATE MEASURES TO PREVENT PRICE MANIPULATION AND TO PROTECT CONSUMERS

WHEREAS, paramount to the national government is its concern for the welfare of the consumers and the general public; cd i

WHEREAS, recent developments affecting the value of the peso and the consequent increase in prices of petroleum products require increased vigilance and necessitate a comprehensive and coordinated effort of all government agencies concerned as well as the private sector to assure supply of prime and essential commodities and insure that their prices stay with reasonable levels; casia

WHEREAS, traders and manufacturers should refrain from taking undue advantage of the prevailing situation and are hereby enjoined to extend their support and cooperation in the attainment of the above objectives;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution and by Law, do hereby order and direct:

1. The Price Stabilization Council to increase its vigilance, particularly its price monitoring and enforcement, in order to afford maximum protection to consumers, prevent price manipulation and hoarding during this critical period of price adjustments.

2. The Ministry of Local Government, including their Provincial Governors, City and Municipal Mayors, to monitor prices of prime commodities and other items under price control in their respective areas, and to report violations of the Price Stabilization Law to the Price Stabilization Council for appropriate action. acd

3. The Price Stabilization Council to organize an efficient system of communication so that price violators and cases of hoarding may be immediately reported to it and corrective action taken.

4. The Price Stabilization Council to enforce and strictly implement provisions of the Price Stabilization Law (P.D. 1674) and to promulgate such rules and regulations as may be necessary to give full force and effect to this LOI.

For this purpose, the penal sanctions of Section 6 of P.D. 1674 shall be imposed, including the penalty of imprisonment for a period of not less than six (6) months nor more than five (5) years, or a fine not less than Two Thousand Pesos (P2,000.00) nor more than Twenty Thousand Pesos (P20,000.00), or both, on whoever shall sell any commodity in excess of the maximum selling price established by the Price Stabilization Council.

5. The Price Stabilization Council, as an aid to traders and consumers alike, to publish guidelines on other prime commodities not under price control, on a periodic basis.

In determining such guidelines, the Price Stabilization Council shall take into account a reasonable level of price adjustment as a result of the increased fuel prices and its corollary effects.

6. The Ministry of National Defense, through the Chief of Philippine Constabulary, to provide maximum assistance to the Price Stabilization Council in apprehending violators of PD 1674.

Toward this objective, the Chief of Philippine Constabulary will assign a special team to operate in close cooperation with, and under the supervision of the Price Stabilization Council.

7. The Ministry of Justice to assign a special team of prosecutors to ensure that violators of P.D. 1674 are immediately prosecuted in accordance with the provisions of law.

This Letter of Instructions shall take effect immediately.

DONE in the City of Manila, this 7th day of July, Nineteen Hundred and Eighty-Three.