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Gauteng food shortages: government warns suppliers against price gouging
The Gauteng government warned that price gougers could be slapped with a R1 million fine for taking advantage of ‘this state of national disaster’.
Image:foodstuffSA
The Gauteng Department of Economic Development issued a stern warning to suppliers to not inflate the prices of essential items on Monday, 26 July. This comes after reports that suggest there may be possible food shortages following the unrest in the province emerged.
GAUTENG GOVERNMENT TO FINE PRICE GOUGERS
The provincial government’s warning applies to essential items listed under the Consumer and Customer Protection and National Disaster Management Regulations and Directions.
The items issued in terms of Regulations 350 of Government notice 43116, include basic food and consumer items; emergency products and services; medical and hygiene supplies; emergency clean-up products and services.
The long list of goods listed in Annexure B of the government gazette include toilet paper; baby formula; nappies; cooking oils; wheat flour; rice; maize meal; pasta; sugar; canned, frozen and fresh meat, chicken or fish, etc.
The stipulations are meant to protect consumers against unfair, unreasonable and unjust pricing.
“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,” said the department in a statement.
Advocate Fati Manamela, the Chief Director of Consumer Affairs and Business Compliance, said “unfair, unreasonable or unjust” pricing (or price gouging) is when a supplier increases the prices of goods or services even when the cost of providing that item or service does not increase for them.
A supplier or individual contravening these regulations could be liable for a fine of up to R1 million or 10% of their annual turnover or even imprisonment of not more than 12 months.
“The Gauteng Office of Consumer Affairs 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 by consumers,” said Manamela.
Unreasonable price hikes in Gauteng can be reported to the provincial Office of Consumer Affairs via email at consumer@gauteng.gov.za for processing and referral to the Competition Commission and the National Consumer Commission.
