Subsequently to residents apparently beginning to engage in what has been described as disaster or panic buying following the outbreak of Coronavirus (Covid-19), the Department of Economic Development, Environment and Tourism (Ledet) warned businesses about hiking of prices or predatory pricing which impacts shoppers negatively.
Although the department advises consumers to avoid panic buying, departmental spokesperson Zaid Kalla stressed that price hiking or predatory pricing of key items, especially sanitation products as the Coronavirus pandemic spreads was indicative of deceiving, uncaring and unlawful practice by business owners towards their loyal customers. He emphasised that the department did not support any form of price fixing. The practice is abusive to the consumer and therefore comparable to illegal activity, Kalla explained.
He further indicated that the psychologically triggered behaviour of disaster buying was motivated by sudden and imagined fears. Panic buying has the potential to reflect an unnecessary high demand for products which is then followed by unfair high prices from suppliers, he stressed. He added that an increase in prices has the potential to limit public access to much needed products.
Kalla concluded by saying the department encouraged all consumers witnessing sudden price hikes to report it to the department’s Consumer Protection line on 015 293 8557.
Story: ENDY SENYATSI
>>endy@observer.co.za
