Section 10Sec./Art. 10

Engaging in Cartel as Economic Sabotage. - There shall be prima facie evidence of engagement in cartel as economic sabotage when two (2) or more persons competing for the same market and dealing in the same agricultural and fishery products agree to perform uniform, simultaneous, or complementary acts among themselves and actually perform such acts designed to artificially and unreasonably increase or manipulate the supply or prices of such projects, thereby stifling competition, as defined as in Section 14 of Republic Act No. 10667 or the "Philippine Competition Act", to the detriment of consumers, or the decrease in farmgate prices to the detriment of the agricultural and fishery producers:

Provided, That an agreement herein refers to any type or form of contract, arrangement, understanding, collective recommendation, or concerned action, whether formal or informal, explicit or tacit, written or oral:

Provided, further, That any person or persons include unincorporated entity or entities, domestic or foreign, including those owned or controlled by the government, engaged directly or indirectly in any economic activity.

The Enforcement Group, on the strength of a LOA issued by the Council, shall have the authority to visit areas where the agricultural and fishery products suspected to be the subject of cartel are located and shall give due notice to the relevant persons, who may be persons suspected of engaging in cartel, to provide justification within twenty-four (24) hours for the unreasonable increase of prices or manipulation of supply or prices of said products, such as cost of acquisition and sales receipts, or documentary proof that stocks are within normal inventory level or final contracts of sale covering existing stocks, whichever is applicable under the circumstances, pending which the products shall be placed in the constructive custody of the Enforcement Group.

In the event that the relevant persons fail to provide justifiable reasons within twenty-four (24) hours for the unreasonable increase of price or manipulation of supply or prices, the products shall remain in constructive custody and shall be the subject of a criminal action to be filed against the violators.

CHAPTER IV

OTHER PROHIBITED ACTS