South Africa
#Coronavirus: 30 companies being investigated for price gouging─── 05:35 Fri, 27 Mar 2020
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The national consumer commission (NCC) working with the competition commission (Commission) have launched an investigation into allegations of price gouging by 30 retailers (19 by the NCC and 11 by the Commission) from different provinces in SA.
The NCC through its call centre received a number of complaints of excessive price hikes on items such as hand sanitisers, facial masks; Dettol and toilet paper from consumers.
Minister Patel last week published a list of 22 critical products and categories, and called on the two regulators to monitor and ensure no unjustified price increases. Acting consumer commissioner Thezi Mabuza said it has a critical role to play during this time of need.
“I like to remind suppliers of goods and services to be mindful of the provisions of the section 3 of the Consumer Protection Act of 2008.
"The Act sets out its purpose which is, amongst others, to reduce and ameliorate any disadvantages experienced in accessing any supply of goods or services by consumers,” she said.
Both regulators have assembled a team of investigators to investigate these cases. South Africa is in a state of disaster; we are therefore prioritising these cases.
Thus, with regards to investigations, we have notified the following eleven companies of our intention to investigate allegations of excessive price hikes and they have acknowledged our communique. Acting Commissioner Mabuza confirmed that the investigations into the following companies have commenced:
1. Silver Oaks SuperSpar - Silverlakes, Pretoria east (Gauteng)
2. Spar in Platterkloof - Platterkoof (Western Cape)
3. North Safety - Paarden Eiland (Western Cape)
4. Checkers Hyper –Kempton Park (Gauteng)
5. National Overalls- Villeria Pretoria (Gauteng)
6. Makro - Springfield, Durban (KZN)
7. Clicks - Westgate Mall (Gauteng)
8. Free State Pharmacy- Bloemfontein (Free State),
9. Mopane Pharmacy - Nelspruit (Mpumalanga),
10. Sea Side Pharmacy - Table View (Western Cape),
11. Pick ‘n Pay in Milnerton - Milnerton (Western Cape).
The NCC will also issuing eight additional investigation certificates (4 in Gautesng,1 in KZN, 2 in the North West and 1 in Limpopo). These allegations are also against excessive price of items or goods like face masks and hand sanitisers.
A fine of up to R1,000 000 or up to 10% of a firm’s annual turnover or even imprisonment for a period not exceeding 12 months will be imposed to a company/retailer found guilty of price gouging.
Mabuza said the commission has noted with concern panic buying that is happening in light of the looming lockdown from Thursday. This leads to shortages of basic consumer commodities, and over pricing, or price gouging.
“I urge all South Africans to continue monitoring the market and lodge complaints should they notice a sharp price increase. The NCC’s toll free number is 0800 014 880 or 012 428 700 (office houses)
African News Agency