Will the profiteers ever be prosecuted?

Many of the country’s policymakers have attributed the recent spike in the prices of basic and prime commodities, such as onion, to hoarding and profiteering. Some of them even blamed the greedy cartels that held on to their stocks so they can rake in profits once the regime of high prices rolls around. Despite the apparent certainty that it was the hoarders and profiteers who were responsible for the skyrocketing prices, nobody has been apprehended, punished or even identified.

The state may sanction those found engaging in illegal acts of price manipulation, such as hoarding and profiteering. Under the Price Act or Republic Act 7581, hoarders and profiteers will suffer the penalty of imprisonment for five to 15 years and a fine of up to P2 million. RA 7581, which was enacted in May 1992, sought to ensure the availability of basic necessities and prime commodities at reasonable prices at all times and to protect consumers against hoarding, profiteering, and cartels.

RA 7581 defined hoarding as the undue accumulation by a person or combination of persons of any basic commodity beyond his or their normal inventory levels or the unreasonable limitation or refusal to dispose of, sell or distribute the stocks of any basic necessity of prime commodity to the general public. There is prima facie evidence of hoarding when a person has stocks of any basic necessity or prime commodity 50 percent higher than his usual inventory and unreasonably limits, refuses or fails to sell the same to the general public at the time of discovery of the excess. The determination of a person’s usual inventory will be reckoned from the third month immediately preceding before the discovery of the stocks in case the person has been engaged in the business for at least three months.

Profiteering is defined by RA 7581 as the sale or offering for sale of any basic necessity or prime commodity at a price grossly in excess of its true worth. There is prima facie evidence of profiteering whenever a basic necessity or prime commodity being sold: has no price tag; is misrepresented as to its weight or measurement; is adulterated or diluted; or 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 10 percent of its price in the immediately preceding month. However, the law indicated that in the case of agricultural crops and other seasonal products, the prima facie provisions will not apply.

Despite the existence of RA 7581 and its amended version, RA 10623, unscrupulous traders remain unfazed because nobody has been jailed or indicted for hoarding or profiteering. These traders are probably emboldened by the fact that it takes a lot of work to prove illegal acts of price manipulation. Until and unless government is able to fully implement this law and do the work it takes to put hoarders and profiteers in jail, Filipino consumers will continue to pay a steep price for basic and prime commodities, especially during the holidays.