Estimated reading time: 2 minutes
Stemming from reports of possible food shortages in both KwaZulu-Natal and Gauteng, the National Consumer Commission (NCC) has sent a strong message to suppliers, warning them not to inflate pricing on essential items.
According to the NCC, Regulation 350, read with sections 40 and 48, was gazetted by Government to prevent suppliers from profiteering during the period of a National Disaster. Being done to protect consumers against unfair, unreasonable, or unjust pricing.
In a statement, the NCC points out, “With this said, it is unreasonable and unfair for suppliers of goods to take advantage of this state of national disaster by unfairly increasing the prices of goods without any economic justification to do so.”
Acting Consumer Commissioner Thezi Mabuza says both Sections 40 and 48 of the Consumer Protection Act (CPA) make it prohibited conduct for a supplier to increase their prices unconscionably. Further stating, “Section 48 states that a supplier must not offer to supply, supply or enter into an agreement to supply goods and services at a price that is unfair or unconscionable. Unfair, unreasonable, or unjust pricing (price gouging) is when a supplier increases prices of goods or services that do not correspond to or not equivalent to the increase of providing that service or good.”
The goods and services in question relate to essential food and consumer items, emergency products and services, medical and hygiene supplies, and emergency clean-up products and services.
A supplier or person contravening these Regulations could be fined up to R1 million, a fine of up to 10% of a firm’s annual turnover, or imprisonment for a period not exceeding 12 months. Consumers are encouraged to monitor the market and report any suspicious unfair price increases of these goods and services.
In conclusion, Mabuza states, “The NCC will continue with its efforts of implementing the provisions of the CPA by reducing and ameliorating any disadvantages experienced in accessing any supply of goods or services by the consumer.”
What are your thoughts? Share your views in the comment section below.
RELATED NEWS
