Northern Cape wholesaler admits to excessive pricing of hand sanitisers, agrees to donate sanitisers to four non-profit organisations of its choice

A wholesaler based in Kimberley, in the Northern Cape, has admitted to charging excessive prices for 50ml and 200ml versions of Dettol hand sanitisers in March 2020, in contravention of section 8(1)(a) of the Competition Act (the Act) read together with Regulation 4 of the Consumer Protection Regulations (the Regulations).

 

The admission forms part of a consent agreement between the wholesaler, Samys Wholesalers CC (Samys) and the Competition Commission (the Commission).

 

In terms of the consent agreement, which has been confirmed as an order of the Tribunal, Samys agrees to, among others:

 

• immediately desist from the excessive pricing conduct;
• immediately reduce its mark-up on 50ml and 200ml Dettol hand sanitisers respectively to agreed maximum percentages for the duration of the state of national disaster; and
• donate hand sanitisers valued at R4000 (the value of the “overcharge” amount) to four identified non-profit organisations in the Kimberley area.

 

Background

 

On 24 March 2020, the Commission received information that Samys had allegedly been charging its customers inflated prices for Dettol hand sanitisers.  

 

Hand sanitisers fall under the category of ‘medical and hygiene supplies’ in the Consumer

Protection Regulations.

 

The Commission’s investigation found that Samys had charged customers significantly higher prices for the hand sanitisers compared to other retailers during March 2020.

 

Based on the analysis of the mark-ups and the pricing comparator analysis, the Commission concluded that Samys’ pricing of hand sanitiser during March 2020 contravened the Act and the Regulations.

 

The Commission also considered the harm that Samys caused by charging excessive prices. To estimate the level of harm (in monetary terms) of Samys’ pricing, the Commission calculated the overcharge amount. As such, Samys will donate hand sanitisers valued at R4000. 

 

Issued by:

 

Gillian de Gouveia, Communications Officer
On behalf of the Competition Tribunal of South Africa

Tel: +27 (0) 12 394 1383
Cell: +27 (0) 82 410 1195
E-Mail: GillianD@comptrib.co.za
Twitter: @comptrib

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