#LockdownSA: Durban Chamber of Commerce frowns upon unethical business practices and price gouging

THE Durban Chamber of Commerce and Industry has urged businesses to maintain stable prices and described price gouging practices as exploitative and unethical.

Chamber president Nigel Ward said it was aware that, in the midst of the national lockdown, there have been increased reports and allegations about price gouging and other unethical business practices.

He urged all businesses to pledge to maintain food and commodity prices at fixed and affordable levels as the national lockdown continues to have a significant impact on local, provincial and national economies as well as the global economy.

“We encourage the local business community to work with the government to maintain a stable pricing regime. Both direct and indirect suppliers of goods and services are bound by the Consumer Protection Act, and it is essential that businesses supply reliable, safe and quality goods and services to avoid adverse consequences. Price gouging is exploitative and unethical,” he said.

“The COVID-19 outbreak is an unprecedented national emergency and it is up to business to support government structures to make it through this pandemic,” he said.

“The Durban Chamber applauds the work done so far by the KwaZulu-Natal Premier’s Office, the KwaZulu-Natal Department of Economic Development, Tourism and Environmental Affairs, Health, Labour, to name a few, to root out price gouging, unethical business practices and non-compliance with the lockdown regulations and Disaster Management Act. We warn offending businesses to consider not only the financial repercussions of legal action being brought to bear on them but the fact that there will also definitely be extended reputational damage sustained by non-complying companies, their owners and senior employees,” said Ward.

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He said the Durban Chamber also recommends to all businesses that this is the ideal time to review all the applicable laws and current emergency regulations, re-evaluate current pricing strategies and practices, and develop risk management plans and procedures for dealing with enforcement agencies and the media.

Nomusa Dube Ncube, MEC of KwaZulu-Natal Department of Economic Development, Tourism and Environmental Affairs, reiterated Ward’s sentiments, saying businesses must ensure that they provide safe and good quality products.

“Businesses must regularly check what they are selling even if it’s supplied by an external party. They need to guard against inferior goods. All businesses operating during the lockdown must ensure they understand the central role their customer plays and aim for a culture of fairness in dealing with them. Businesses should bear in mind the vulnerability of consumers under the current circumstances.”

She said any business that is part of the supply chain that puts products and services in the hands of a consumer is affected in terms of the Consumer Protection Act (CPA) and can be held accountable for violating the consumer regulations issued by the Minister of Trade and Industry.

“Inflating prices of goods is an offence. It’s important to be aware, even if your company doesn’t interact with the end consumer directly, that you are still bound by the CPA and the consumer regulations,” she said.

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