Dear PAO,

In our province, there is a mini-market whose prices of basic goods are over and beyond the suggested retail price of the products. In my calculation, the goods are overpriced by about 50 percent, more than the set retail price. Is what the store owner is doing legal?

Louise

Dear Louise,

Please be informed of Section 5 of Republic Act 7581, otherwise known as The Price Act, which states that:

“Sec. 5. Illegal Acts of Price Manipulation. – Without prejudice to the provisions of existing laws on goods not covered by this Act, 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 the following acts of price manipulation of the price of any basic necessity or prime commodity: xxx

“(2) Profiteering, which is the sale or offering for sale of any basic necessity or prime commodity at a price grossly in excess of its true worth. There shall be prima facie evidence of profiteering whenever a basic necessity or prime commodity being sold: (a) has no price tag; (b) is misrepresented as to its weight or measurement; (c) is adulterated or diluted; or (d) whenever a person raises the price of any basic necessity or prime commodity he sells or offers for sale to the general public by more than ten percent (10%) of its price in the immediately preceding month: Provided, That, in the case of agricultural crops, fresh fish, fresh marine products, and other seasonal products covered by this Act and as determined by the implementing agency, the prima facie provisions shall not apply; and xxx”

Based on the above-stated provisions, The Price Act considers the profiteering or the sale of a basic necessity or prime commodity at a price much higher than its true value to be a prohibited act called an illegal act of price manipulation.

Moreover, considering that the price of goods offered for sale in your province is set at around 50 percent more than their true value, there is prima facie evidence of profiteering as the price of sale of a basic necessity or prime commodity exceeded the 10 percent price ceiling set by the law.

Therefore, the mini-market in your province, or the respective stalls thereof, may be held liable for the prohibited act of price manipulation.

We hope that we were able to answer your queries. This advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated on.

Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to [email protected]