CEBU CITY, Philippines — The Cebu City Legal Office (CLO) is going after five rice traders and retailers at the Taboan and Carbon Public Markets for allegedly overpricing their rice products.
City Legal Officer Rey Gealon told CDN Digital that they received reports that prices of rice increased to as high as P5 per kilo in those public markets.
“The Mayor referred the matter to CLO which issued a NOTICE to the respondents whose identities are already established while the rest have yet to be determined,” said Gealon.
He added that surveillance and verification procedures were in progress to verify the identities of these “unscrupulous businesssmen.”
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Gealon reminded establishments that they could not raise the price of their goods beyond the price set by the Department of Trade and Industry especially on commodities.
If the price mark-ups of rice go way above the 10 percent allowable limit, the city will already consider it as a case of profiteering.
Profiteering is considered an act of illegal price manipulation under Republic Act 7841 otherwise known as the “Price Act”.
Under that law, penalties range from P5,000 up to P2 million.
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On the part of the Cebu City government, Gealon said they could ultimately impose an administrative sanction such as revoking the business permits of violators.
Consequently, the establishment can no longer operate within the territorial jurisdiction of the City of Cebu.
Gealon also said that a case of profiteering could be considered an unfair or unconscionable sales practice under RA 7394 otherwise known as the Consumer Act of the Philippines.
“The law provides that criminal charges may be filed for such action. Profiteering cannot be countenanced by the Mayor especially in this time of crisis,” said Gealon. /dbs