TRIBUNAL APPROVES 7TH CONSENT AGREEMENT RELATING TO COVID-19 EXCESSIVE PRICING MATTERS
KZN-based Mandini Pharmacy has admitted to excessive pricing of face masks in a consent agreement with the Competition Commission. The consent agreement has been confirmed as an order of the Tribunal.
In terms of its agreement with the Commission, the pharmacy agrees to:
- immediately desist from the excessive pricing conduct;
- reduce its net margin on facial masks with immediate effect; and
- donate essential goods amounting to R300.00 (the total value obtained from the “overcharge” for face masks) to Mandeni child welfare situated in Mandini, KZN.
Background
On 23 March 2020, the Commission received information about Mandini Pharmacy in relation to inflated prices of facial masks that it was charging customers in March 2020.
Facial masks fall under the protected category of ‘medical and hygiene supplies’ in the Consumer Protection Regulations.
A Commission investigation found that Mandini Pharmacy ordered face masks from a supplier with the intention to resell to its customers. It did not sell face masks before March 2020 but decided to source face masks due to the sudden demand and panic-buying brought on by the state of national disaster.
The Commission found that the gross profit margin in respect of the face masks for March 2020 is a contravention of section 8(1)(a) of the Act read together with Regulation 4 of the Consumer Protection Regulations.
Mandini Pharmacy admits that it has engaged in the conduct of excessive pricing which amounts to a contravention of section 8(1)(a) of the Act.
This is the Commission’s seventh consent agreement – relating to alleged excessive pricing in the context of COVID-19 – approved as an order of the Tribunal.
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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