Dis-Chem fined R1.2m for excessive mask pricing
The Competition Tribunal has found Dis-Chem guilty of contravening the Competition Act by selling surgical face masks at excessive prices during the coronavirus outbreak.
The case was referred to the tribunal by the Competition Commission in April, after the competition watchdog received complaints from the public about excessive pricing for masks.
The pharmacy chain will have to pay R1.2 million in fines.
“This follows our investigation that Dis-Chem has charged excessive prices for essential hygienic goods to the detriment of consumers,” says the commission’s Siyabulela Makunga.
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Dis-Chem is alleged to have hiked the price by between 43% and 261%.
“Our investigations found that prior to the declaration of national state of disaster Dis-Chem was selling three types of masks for far lower prices, whilst there has been an increase in the period of March 2020 of up to 261% for the same masks.”
Makunga says the commission has zero tolerance for price gouging.
“It sends a strong message that South African authorities have no room for lame excuses on price gouging.
“The conduct of price gouging as a detrimental effect on government’s concerted efforts on economic recovery.”