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3 April 2020 Media Statement: Noticing illegal price hikes? Report it to authorities

Media Statement

For Immediate Release

3 April 2020

After the COVID-19 coronavirus pandemic started affecting South Africans, members of the public now face a myriad of challenges that no one anticipated.  One challenge, which was also brought to the attention of the Garden Route District Municipality’s (GRDM’s) Multi-Agency Command Centre, is the rapid increase of prices of essential goods within the Garden Route district. These items include various food products, toiletry essentials, disinfectants, to name a few.

The Competition Commission on 20 March 2020 issued a media statement to alert retailers regarding this type of conduct during this critical period. According to the statement, several complaints from the public about rising prices for essential products in particular certain food products, healthcare and hygiene products are noted.  The Commission also stated their concern about suppliers inflating prices as government, retailers and private healthcare companies embark on emergency procurement of products related to the curbing and managing of the spread of COVID-19.

The National Minister of Trade and Industry and Economic Development Ebrahim Patel on Thursday gazetted regulations in terms of the Competition Act and Disaster Management Act which aims to strengthen the ability of the commission and the National Consumer Commission to respond to incidences of exploitative pricing. These regulations empower the commission to prosecute cases where prices have increased materially without any cost justifications for the increase.

The Multi-Agency Command Centre urges retailers in the district, that should they not adhere to the regulations published by the National Minister, they will face severe penalties, including a 10 % of the store/business’ annual turnover for an offence of the first time and a 25 % of the annual turnover for a repeated offence. Further to this, directors of such companies who engage in illegal price hikes will face a potential imprisonment for a period of up to 10 years.

We therefore call upon all businesses/retailers within the Garden Route district to adhere to these Regulations to ensure that the residents/consumers of the district are fairly treated and served.

Consumers should bring their concerns to the attention of regulators through the toll-free no. 0800 014 880.

Written by Marillia Veldkornet | Communication Officer

Media Queries
Herman Pieters | Senior Communicator
Garden Route District Municipality
E-mail: communications@gardenroute.gov.za

Garden Route District Multi-Agency Command Centre