12 Manila stores charged with profiteering on N95 masks

The Department of Trade and Industry (DTI) announced that 12 out of 17 business establishments in Bambang, Manila were charged with alleged profiteering amid the increase of demand for N95 masks following the eruption of Taal Volcano.

In a press briefing in Malacañang, DTI Undersecretary Ruth Castelo said 12 of 17 establishments they visited in Bambang were issued notices of violations for jacking up prices of masks and other medical supplies.

She said the erring businesses will be charged with administrative and criminal cases for violating the Consumer Act.

“We will file administrative and criminal charges for businesses that sell overpriced medical supplies and medicines. The public should also report such cases by sending receipts, documents to prove profiteering,” she said.

“After the notice of violation, we will issue formal charges against the medical stores in Bambang. Bahala sila mag-defend ng kaso sa hearing (It’s up to them to defend themselves in a court hearing).”

Castelo said some stores in Bambang were adding to or even doubling the price of N95 masks when the law allows only a 10 percent profit margin.

The DTI said the penalty for profiteering ranges from ₱5,000 to ₱2 million. If the erring establishments are found guilty, Castelo said the DTI can go against them for the highest amount.

Meanwhile, Castelo said they will recommend to the local government of Manila to at least suspend the medical supply stores in Bambang in order for them to learn their lesson for overpricing N95 masks.

“They are taking advantage of the difficulty consumers are facing right now, not giving consideration to the real worth of the product,” Castelo said.

According to Castelo, the DTI has dispatched inspectors to monitor the prices of N95 masks and basic goods in Metro Manila and Calabarzon after complaints by consumers about jacked-up prices.

The agency also ordered a price freeze on basic medicines and equipment, including regular masks and N95 masks. However, it cannot impose a price freeze on areas not under a state of calamity.

The DTI likewise said that big drugstores like Mercury Drug and Watsons committed to not increase prices and to constantly replenish stocks in affected areas.

President Duterte said early this week that he will set a price limit on N95 masks after hearing reports of overpriced masks.

Meanwhile, foreign suppliers of medical face masks have responded to the call of the Department of Trade and Industry (DTI) to immediately send stocks as supplies have been depleted.

DTI Secretary Ramon M. Lopez said companies such as Med Tech have been asked to ship more N 95 from Taiwan and to supply 1.2 million surgical masks from their Bataan facility.

Lopez said that drug stores which temporarily ran out of supply are now assuring the replenishment of the face masks. Private firms are also donating face masks and goods.

The DTI has also recommended to the Department of Health to set suggested retail prices of ₱45 to ₱105 for different brands.

Since Batangas has been placed under a state of calamity, prices of all basic necessities and prime commodities are automatically under price freeze.

They have also asked local suppliers and major drug store chains to ensure that they immediately restock and ensure constant availability of supply in their branches, especially those located in the affected areas.

In the meantime, the drugstores and local suppliers were asked to divert current inventory in their branches and warehouses in non-affected areas to their stores in CALABARZON and Metro Manila while waiting for the arrival of new stocks.

The DTI further clarified that these masks are neither classified as basic nor prime good under the Price Act. Therefore, these have no Suggested Retail Prices (SRPs) and were never part of the list of products being monitored by the Department of Health (DOH) or any of the implementing agencies of the said law.

For longer term solution, DTI said that the Price Act provides that the National Price Coordinating Council (NPCC) in which the DTI and DOH are part of, can recommend to the President the inclusion of these masks in the list of basic or prime goods.

When approved, the NPCC through the recommendation of the DOH and consultation with relevant stakeholders can set an SRP, if found necessary.

The DTI further said that drug and medical stores have committed to the DTI that they will not increase their prices for N95, surgical, and other similar masks as the country faces the effects of the phreatic eruption of Taal Volcano which happened last Sunday, Jan. 12.

Upon receipt of public reports about the rampant selling of overpriced medical masks in the market, the DTI immediately mobilized monitoring teams in the affected areas of Cavite, Laguna, Batangas, Quezon, and Metro Manila to monitor the prices and supply of said products, including those goods classified as basic necessities and prime commodities.

Monitoring reports revealed that N95 masks are sold at ₱120 up to ₱150 per piece while surgical masks that were priced at ₱1.00 per piece were sold at ₱4.00 per piece after the Taal eruption. N95 masks are supposed to be sold for only ₱35-₱40 each.