Covid-19: Consumer Commission ready to take on ‘unreasonable’ suppliers
Following the declaration of the National State of Disaster by the President many suppliers increased prices of goods and services essential to curbing Covid-19.
The National Consumer Commission (NCC) has filed a matter for prosecution with the Consumer Tribunal against a supplier citing alleged unfair, unreasonable, unjust or unconscionable price increases.
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The complaint was received on March 26 and filed on April 9.
The commission has been inundated with complaints from consumers against several suppliers throughout the country.
Acting commissioner Thezi Mabuza said following the declaration of the National State of Disaster by the President many suppliers increased prices of goods and services essential to curbing Covid-19.
“The supplier in question increased the price of a 25 litre hand sanitiser from R990 in December 2019 to R2 745 on March 24.
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“This means the supplier has pocketed a profit of more than 114 per cent.
“The commission has reasonable suspicion that the supplier has engaged in unfair, unconscionable, unreasonable, unjust or improper conduct by sharply increasing their prices and this is in contravention of the provisions of Regulations 350 as gazetted by Minister Patel on March 19,” she said.
Mabuza said the behaviour of this supplier is harsh towards the consumers.
The commission has made an application to the tribunal where it is seeking the following orders:
- Declaring the supplier’s conduct prohibited.
- Interdicting this supplier from engaging in prohibited conduct.
- A full refund to the affected consumers.
- Imposition of an administrative fine in the amount of R1 000 000 (one million Rand).
The commission will also be filing more matters at the tribunal in the following week.
“Our investigation against a pharmacy revealed that the supplier was selling facial masks and made a profit margin of between 200 per cent and 500 per cent.
“Another supplier increased the price of FFP1 masks by 667.72 per cent even before sourcing at increased prices.
“The supplier last sourced the masks in January, but increased their prices following a demand.
“We have also investigated and finalised an investigation against a pharmacy that has made a profit of between 200 per cent and 400 per cent on different goods like hand sanitisers, antiseptic liquid and face masks,” Mabuza said.
In the first week of the disaster the most complained about products ranged from hand sanitisers, facial and dust masks, hand gloves and in some cases flour.
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The commission has observed a shift over the past two weeks of consumers complaining about foodstuffs.
“We will take stern action against suppliers who infringe Regulation 350.
“Our mandate is to protect consumers and customers from unconscionable, unfair, unreasonable, unjust or improper commercial practice during the national disaster.
“We believe that vulnerable consumers are hit hard as the cost of their food basket increases,” Mabuza said.
The NCC’s toll free contact number is 0800 014 880 or office number 012 428 7000.
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