The Department of Trade and Industry (DTI) warned businessmen of possible criminal charges for overpricing and hoarding medical devices and products, such as alcohol, medicines, masks of N-88, N-95, other similar face masks, alcohol/sanitizers, and medical devices.
“We have recommended to the President the issuance of an Executive Order (EO) for easier procedure of filing of cases and imposition of stiffer penalties for profiteering. The proposed EO will arm the DTI together with the Department of Interior and Local Government (DILG), Philippine National Police (PNP), and National Bureau of Investigation (NBI) with visitorial powers to address the issue on prices and supply of medical products,” Trade Secretary Ramon M. Lopez said.
With the increasing numbers of COVID-19 cases in the country, the demand for alcohol, hand sanitizers, and face masks have spiked.
Under the Consumer Act or Republic Act (RA) No. 7394, businesses are prohibited to take advantage of consumers by overpricing face masks and other medical supplies and devices. Overpricing may be considered as an unfair and unconscionable sales act or practice in this crisis. Also, the Price Act (RA 7581) deems that said act as profiteering.
Violators will face various sanctions under both laws. Under the Consumer Act, if found to have committed an unfair and unconscionable sales act or practice, an administrative sanction of up to P300,000.00 may be imposed and/or imprisonment of up to one (1) year.
Moreover, the Price Act sanctions violators for profiteering with the imposition of a fine of up to P2,000,000.00 and/or imprisonment of up to 15 years.
DTI continues to monitor and enforce various efforts to guarantee reasonableness of prices and sufficiency of supply of goods in the market in this time of crisis.
In line with this, a price freeze is in effect in the country following the declaration of a State of Public Health Emergency. Prices of basic goods are frozen at their existing prices for 60 days. (RJ Espartinez)