Covid-19: Prices of hand sanitisers, masks, loo rolls and flu meds under scrutiny

The Competition Commission is investigating more than 250 complaints against retailers and suppliers for allegedly charging excessive prices for products considered to be  Covid-19 essentials, such as sanitisers and flu medication.

The commission said that since President Cyril Ramaphosa announced a state of national disaster on March 15, it has received 559 complaints about excessive pricing.

"Approximately 250 of these relate to matters that fall outside the scope of the Competition Act as well as the applicable regulations, and shall therefore not be pursued further. The balance of the complaints are against retailers and suppliers for charging excessive prices for products related to Covid-19 essentials," the commission said.

The commission said the majority of the complaints related to hand sanitisers and face masks, followed by toilet paper, flu medication and other products.

"The commission is prioritising those cases against national retailers and suppliers, and also those cases from complainants who are essential services professionals, such as doctors, dentists and police officers.

"The complaints are under expedited preliminary investigations, with respondent firms given 48 hours to confirm or rebut the allegations," commission spokesperson Sipho Ngwema said.

He said the commission has issued more than 100 such letters to national retailers, suppliers and independent retailers.

"The responses received thus far vary. In some instances, the alleged 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."

Ngwema said there were, however, instances where price increases were not justified and the commission would pursue enforcement.

Ngwema said following its inquiries, the commission has witnessed some large national retailers instituting pricing discipline across their branches, including Massmart, which recently announced a price freeze in all its stores (Makro, Cambridge Food, Game and Cash & Carry) for the duration of the lockdown.

"As of this morning, Spar Group has started sharing with the commission promotional prices for essential goods for the upcoming weeks. The list covers all basic goods such as sugar, detergents, flour, chicken and so on. The Spar Group is alerting the commission so that when prices go back to normal (pre-promotion prices) after the promotion, they are not deemed by customers as having increased."

Ngwema said independent retailers had also been responsive, including AJ Safety, a small independent retailer based in Secunda, Mpumalanga, which has taken a decision to refund customers the balance it overcharged for masks following engagements with the commission.

"AJ Safety had increased the price of dust masks from approximately R5 to R25.

"However, following our engagement, the owner of AJ Safety submitted that he was not aware the store manager had increased the price of dust masks. AJ Safety has since decreased the price and has started the process of refunding all those customers who bought the masks at an inflated price."

The commission said it also noted with concern the spiralling prices of agricultural products such as wheat, white maize, sunflower seeds, carrots, onions and tomatoes.

"There have been complaints streaming in about these basic food products as these spiralling prices hurt the poor the most.

"The commission is monitoring these prices in consultation other stakeholders in the policy sphere and is also probing these price hikes with the traders and suppliers of these products."

The commission thanked the  public for bringing forward the complaints, and urged businesses to comply will the published regulations as non-compliance will be met with maximum penalties and sanctions.