Businesses may, in certain situations, have no choice but to increase prices. While Pinoy Entrepreneurs may work to keep prices low, some may be trying to artificially jack up prices. When such happens, one of the tools often cited to control prices is the Price Act (Republic Act 7581). Price manipulation is declared illegal under this law. There are three acts considered as price manipulation, punishable by imprisonment:

 

(1) Hoarding, which is 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 or the unjustified taking out of any basic necessity or prime commodity from the channels of reproduction, trade, commerce and industry.

(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.

(3) Cartel, which is any combination of or agreement between two or more persons engaged in the production, manufacture, processing, storage, supply, distribution, marketing, sale or disposition of any basic necessity or prime commodity designed to artificially and unreasonably increase or manipulate its price.

In certain instances, the President may impose a price ceiling on any basic necessity or prime commodity (mandated price ceiling). On the other and, unless otherwise declared by the President, but not more than 60 days, prices of basic necessities in an area shall automatically be frozen at their prevailing prices or placed under automatic price control (automatic price ceiling) whenever:

1. That area is proclaimed or declared a disaster area or under a state of calamity;
2. That area is declared under an emergency;
3. The privilege of the writ of habeas corpus is suspended in that area;
4. That area is placed under martial law;
5. That area is declared to be in a state of rebellion; or
6. A state of war is declared in that area.

The Price Act generally covers basic necessities (including rice; corn; bread; fresh, dried and canned fish and other marine products, fresh pork, beef and poultry meal; fresh eggs; fresh and processed milk; fresh vegetables; root crops; coffee; sugar; cooking oil; salt; laundry soap; detergents; firewood; charcoal; candles; and drugs classified as essential by the Department of Health) and prime commodities (including fresh fruits; flour; dried processed and canned pork; beef and poultry meat; dairy products not falling under basic necessities; noodles; onions; garlic; vinegar; patis; soy sauce; toilet soap; fertilizer; pesticides; herbicides; poultry; swine and cattle feeds; veterinary products for poultry, swine and cattle; paper; school supplies; nipa shingles; sawali; cement; clinker; GI sheets; hollow blocks; plywood; plyboard; construction nails; batteries; electrical supplies; light bulbs; steel wire; and all drugs not classified as essential drugs by the Department of Health).