Price controls for basic goods and necessities during the COVID-19 pandemic

Constitutional Review of Presidential Decree 507 of 2020

Date:  06/17/2020

Judge-Rapporteur:  Antonio José Lizarazo Ocampo

Dissent:  Diana Constanza Fajardo Rivera (partial).  Alberto

Rojas Ríos (partial).  Cristina Pardo Schlesinger

Reviewed decree.  The regulation established measures to protect the prices of products needed by the most vulnerable population during the emergency caused by the Covid-19 pandemic.  It also sets rules in order to avoid speculation, hoarding, and usury.

Issue: Is it possible for the government to take action related to the prices of basic goods during an emergency caused by a pandemic?

Ruling and reasoning.  Yes. The Court concluded that the emergency measures aimed at controlling the prices of basic necessities to preserve consumers from hoarding, speculation, and usury, fully comply with both formal and substantive requirements provided for in the Constitution and the Statutory Act of the States of Exception.  The Forum explained that the measures are directly related to the reasons invoked for their issuance.  It also said that the Government is in charge of the general orientation of the economy and prices policies, aimed at protecting the quality of life of the people, and the equitable distribution of goods and services, particularly for those with lower incomes. However, it indicated that it is necessary to specify for how long the measures will be in force.

Therefore, the Court RULED THE CONDITIONAL CONSTITUTIONALITY of the decree, provided that the actions there described, will be in force for no more than a year after the date of issue.