63 supermarkets found overpricing

Original Report

63 supermarkets found overpricing
MANILA, Philippines - A total of 63 supermarkets, stores and stalls have been caught violating government-imposed price controls.

“To date, the Department of Trade and Industry (DTI) National Capital Region has served 63 Notices of Violations to erring retail establishments since the imposition of the mandated price ceilings,” Trade Assistant Secretary Angel Pelayo told The STAR.

She said that the overpriced items include sardines, laundry detergents, coffee and instant noodles.

At Malacañang, Justice Secretary Agnes Devanadera said more violations were recorded in supermarkets than in small retail establishments.

“Maybe small retailers listen more to radio. That’s why they’re more conscious of the price ceilings,” Devanadera said in Filipino.

The National Bureau of Investigation (NBI) invited representatives of the establishments for questioning.

Aside from the NBI, special teams from the DTI and Philippine National Police (PNP) are enforcing the price controls ordered by Malacañang to keep prices of basic goods stable in the aftermath of the devastation wreaked by tropical storm “Ondoy” and typhoon “Pepeng.”

The level of overpricing varied from a minimal P0.10 more for a P6.50 pack of Lucky Me instant noodles, to an excessive mark-up of P21.25 more than the P49.75 set for a 180-gram box of Bear Brand milk.

Regardless of the extent of overpricing, Devanadera explained the fines and penalties for guilty retailers provided for in the Price Act would be the same.

But while small erring retailers were arrested immediately, this was not the case with supermarkets where the decision-making process for the pricing of goods was very different, Devanadera said.

For small establishments, the owners make decisions on pricing.

In supermarkets, more individuals, particularly executives, are involved in pricing matters.

Devanadera said officials of erring supermarkets claimed that the price tags on their shelves were already there before the price ceilings were imposed.

“We have been complying with the price ceilings as mandated by the government,” Robinsons Supermarket said in a statement. “Tagging thousands of products in a large operation such as ours, however, needed more time than usual. More people have been assigned to the task and as of press time, we are fully compliant with all price ceilings,” the statement read.

SM also said in a statement that it is abiding by the price control law. “Should there be any omission, it could be in earlier stage of implementation when our staff are in the process of adjusting to the different prices imposed in different regions,” the statement read. “Being nationwide, we have one price policy, but we have now adjusted to different prices in different regions.”

Devanadera pointed out that the process of prosecuting violators has been shortened. Offenders would be immediately subject to inquest and charged with an appropriate case before the courts.

This takes away the process of preliminary investigation, which usually takes a long time.

Before Malacañang ordered price controls, Trade Secretary Peter Favila announced they would monitor prices at wet markets, supermarkets and drugstores in response to complaints of overpricing.

Favila warned that the government would not hesitate to close down shops and press charges against manufacturers, suppliers, distributors and retailers found selling above the prices published in newspapers.

“Violators of the price ceilings set face stiff sanctions which include an administrative fine of not more than P1 million and imprisonment of not more than 10 years,” Favila said.

The DTI has also deputized market masters and administrators for the enforcement of the Price Act.

Favila said the DTI would also coordinate with local government units in going after and filing appropriate charges against errant businessmen.

The DTI chief also ordered the setting up of a Command Center to serve as the focal point for information on prices and supply of basic goods, particularly in areas heavily ravaged by Ondoy.

The center may respond to queries on prices and supply, as well as facilitate deliveries to retail outlets. It may also assist in verifying with suppliers or manufacturers the status of deliveries of goods in Metro Manila and other areas severely hit by Ondoy.

Section 6 of Republic Act 7581 or the Price Act stipulates that the prices of basic necessities in areas declared under a state of calamity shall automatically be frozen at their prevailing prices. Unless lifted by the president, price controls of basic goods shall remain effective for the duration of the calamity but not for more than 60 days. – With Sandy Araneta

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