Pharmaceutical retail chain Dis-Chem says it plans to oppose the Competition Commission’s decision to refer it to the Competition Tribunal for prosecution.
The company says it is consulting with its legal team and economic experts on the Commission’s findings that Dis-Chem has inflated prices of essential items from February.
The Commission found that prices of items such as surgical face masks were increased by between 43 and 261%.
Hi @Dischem, I bought this 5 pack of 3ply masks for R22.95 (i.e R4.59 each) just 3 weeks ago, & 2day I see you’re selling the same masks at R19.95 for 1. This is a violation of the national state of disaster price control regulations! Wat else have you marked up in a similar way? pic.twitter.com/BxmwM6bA27
— Mdu The Runner (@NhlekMaurie) April 19, 2020
Disgusting!! pic.twitter.com/BzId1UxNwM
— B (@jungle_diva21) April 23, 2020
The company says it does not believe that the information and data provided to the Competition Commission during its investigation show any contravention of the Competition Act.
Dis-Chem CEO Ivan Saltzman says they will respond to the allegations in due course.
The Competition Commission says it wants the Competition Tribunal to impose the maximum penalty on pharmaceutical retail chain Dis-Chem for inflating prices during the lockdown period.
The statutory body’s Spokesperson Sipho Ngwema says, “We are charging them for excessive pricing. This emanates from a number of complaints that we have received in relation to facial masks. We investigated three products which we found that they were inflated by between 43 and 261%. And they will be appearing before the tribunal.”
Competition Commissioner, Thembinkosi Bonakele says, “We need to set an example that this unacceptable and that’s what this prosecution means.”
The Competition Commission says several companies could face prosecution for excessive pricing during the coronavirus outbreak.
Below is the statement by the Competition Commission:
Complaints
At the beginning of the month, the Competition Commission said it has been flooded with complaints of excessive pricing by retailers since the announcement of the national lockdown.
Over 500 cases have been reported, however, half of them fall outside the Competition Act.
Most of the complaints relate to hand sanitisers and face masks, followed by toilet paper, flu medication and other products.
The Commission has issued over 100 letters to national retailers, suppliers and independent retailers.
In some instances, the price increases are explained as the difference between December/January promotional pricing, and the pricing reverting back to normal in February, coinciding with the pandemic.
There are however instances where price increases are not justified and the commission will pursue enforcement.
The commission has warned retailers to stick to the regulations or face harsh penalties.
In the video below, consumers are urged to report inflated prices:
Additional reporting by Tshepo Mongoai and Horisani Sithole
