This comes after reports of possible food shortages in both KwaZulu-Natal and Gauteng following public unrest.
In terms of Regulation 350, the government intends to promote a concerted conduct to prevent an escalation of the national disaster, to alleviate, contain and minimise the effects of one, and to protect consumers and customers from unconscionable, unfair, unreasonable, unjust or improper commercial practices during this.
The acting consumer commissioner, Thezi Mabuza, said both Sections 40 and 48 of the Consumer Protection Act (CPA) make it a prohibited conduct for a supplier to increase their prices unconscionably.
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“Section 48 states that a supplier must not offer to supply, supply or enter into an agreement to supply goods and services at a price that is unfair or unconscionable. Unfair, unreasonable or unjust pricing (price gouging) is when a supplier increases prices of goods or services that do not correspond to or are not equivalent to the increase of providing that service or good,” she said.
The goods and services in question includes basic food and consumer items, emergency products and services, medical and hygiene supplies as well as emergency clean-up products and services.
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A supplier or person contravening these regulations could be fined up to R1 million or up to 10% of a firm’s annual turnover, or imprisoned for a period not exceeding 12 months. Consumers are encouraged to monitor the market and report any suspicious unfair price increases of these goods and services.
