Prohibit price gouging during times of disasters - Villar

Charging excessive service fees for removing debris around a disaster victim's property is punishable under Senate President Manny Villar's bill, the "Protection from Price Gouging against Disaster Victims Act."

Villar stressed the importance of Senate Bill No. 129 entitled, "An Act to prohibit price gouging relating to certain goods and services in areas affected by major disasters" in the wake of the recent typhoons that left many homeless and agricultural fields destroyed, and the dry spell in the country which has caused water and power shortages.

The bill seeks to strengthen provisions on price manipulation under the Revised Penal Code, the Senate President said.

In his explanatory note, Villar stated, "During periods of abnormal disruption of the market due to strikes, power failures, natural calamities, severe shortages or other extraordinary adverse circumstances, some parties in the chain of distribution of consumer goods take advantage of consumers by charging grossly excessive prices for essential consumer goods and services."

"In order to prevent such unscrupulous parties from taking unfair advantage of consumers during such times, a law penalizing such acts and imposing appropriate penalties must be enacted," he said.

"Price gouging" is defined as the charging of an unconscionably excessive price by a supplier in an affected area, which, in turn, is defined as "an area affected by a major disaster as declared by the President."

Following the President's declaration of a major disaster, the Department of Trade and Industry (DTI) shall consult with its regional office where the disaster occurred and shall determine whether any supplier has charged or is charging an unconscionably excessive price for any consumer good or service.

The bill provides, "During the 180-day period after the date on which a major disaster is declared by the President, no supplier shall provide or offer to provide any consumer good or service in an affected area at an unconscionably excessive price.

Any person who shall be found guilty of violating this Act shall suffer a prison term of not more than one year plus a fine of P10,000.

The DTI shall establish a toll-free hotline to enable consumers to report incidences of price gouging in affected areas.

Consumer good or service means a piece of equipment or service provided primarily for personal, family or household purposes, including food, water, ice, chemical, building supply, tool, petroleum product, repair service or service for the removal of debris (including a damaged tree) or garbage.