Another company found to have overcharged SAPS hand sanitisers
The Competition Commission has found a third company guilty of price gauging when they supplied hand sanitisers to the South African Police Service during the Covid-19 pandemic.
Previously the Gauteng-based BlueCollar Occupational Health and KZN-based Atletico Investments were penalised R3,550,000 in relation to their bulk supply of 10,000 25-litre containers of hand sanitiser in 2020.
The commission has now also found the company Red Roses Africa to have charged excessive prices for the supply of 25-litre containers of hand sanitiser.
Competition Commission spokesperson Siyabulela Makunga says Red Roses Africa supplied SAPS with 90 000 25-litre containers of hand sanitisers.
The supplier charged R4 700 per 25-litre container with a gross markup of 236%.
Makunga says the matter has been referred to the Competition Tribunal for prosecution.
"The commission’s investigations found the price Red Roses charged SAPS during the national state of disaster is excessive and contravenes section 8(1)(a) of the Competition Act, read with Regulation 4 of the Consumer Protection Regulations and National Disaster Management Regulations and Directions.
"The commission also found that Red Roses’ price does not correspond to the increase in the cost of providing these 25-litre hand sanitisers.”
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