Dis-Chem fined R1-2m for mask price gouging
Among a host of decisions announced bt the Competition Tribunal yesterday, it says it has found Dis-Chem guilty of charging excessive prices for surgical face masks to take advantage of heightened demand during the Covid-19 pandemic, and has ordered it to pay R1.2m.
According to a BusinessLIVE report, the company was found to have contravened the Competition Act after it increased prices for three types of masks ‘to the detriment of consumers during March 2020’.
The tribunal said it would make available its reasons ‘in due course’.
The company ‘exerted market power’ by increasing prices as the pandemic worsened globally, with one increase happening on the day that SA had reported its first case. Dis-Chem has already decided to appeal the decision.
In a statement recorded on the EWN site, it said the verdict contained errors of fact and law – and it would now approach the Competition Appeals Court.
The company said the tribunal failed to take into consideration the challenge it faced to find supply because of the unprecedented global scale of the disaster and the rapid rise in demand for masks.
Dis-Chem said its local suppliers had no stock and it had to pay higher prices to import millions of masks to meet customer demands.
The company also said it was unable to replenish its stocks of masks in the volumes required locally and had to find new suppliers.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
