The Covid-19 pandemic struck the world like a meteorite from outer space, and it changed the way the world functions and operates.
Irrespective of race, colour, creed, religion, wealth or other criteria, the silent invisible killer travelled the world to make its sudden presence noted. The lockdown which most countries have implemented has affected all economies, people’s lifestyles, people9s wellness and the freedom to do many day-to-day activities.
The global financial markets retreat as worries over the economic fallout from the coronavirus crisis intensify.The silent invisible killer has forced many families to do panic-buying and stock the essential items.
Many companies in South Africa have found the perfect opportunity to hike the prices of essential items due to a high demand. This automatically and immediately hit the pockets of consumers. These companies survived on the support from its consumers, and now they have ditched their consumers and hiked prices at an opportune time. This was the biggest unplanned test for companies, and many companies failed dismally.
The poor are the most vulnerable as they live from day to day. Prior to the lockdown, they barely could feed themselves. The lockdown has resulted in the poor going on empty stomachs, and desperation pushed some of them to riot and loot shops. On the contrary, these companies should be supporting their consumers by reducing prices and coming to some agreements regarding purchasing items. Their survival in the past was due to their consumers’ patronage.
They made hefty profits and extended their businesses wherever possible. The same consumers filled up the coffers of those companies and many shareholders/ partners (where applicable) were laughing all the way to the bank.
When it comes to payback time and proving your loyalty to your customers, many of these companies shy away as if nothing has happened and where possible, hike prices. Shame on you.The government has made several different proposals to the many sectors how to handle payments of the different sorts, and many companies have reduced purchase prices, premiums and costs, and even deferred payments under arrangements or agreements. I take my hat off to these specific companies, as they have shown that the citizens, the country and their customers come first.
The Competition Commission is currently investigating over 500 complaints of excessive pricing. I propose the following, which will be the fair and most reasonable steps to follow:
- The Competition Commission must name and shame all companies that were found guilty of excessive pricing.
- The Competition Commission must levy the current standard penalty without undue delay.
- A new separate penalty, called the Covid-19 penalty, must be introduced and levied on top of the standard penalty. The proceeds from this penalty must go into a Covid-19 Support Fund which will support the needy and provide the basic, essential items during this critical pandemic period.
If any company does not adhere to the above, its licence should be revoked, or consumers should boycott them. It is time that consumers take command of the purchasing power they possess in any economy.(Selected statistics and events are courtesy of the internet.)
