Competition Commissioner Tembinkosi Bonakele.
Photo: Twitter/@the_DTI
Competition Commissioner Tembinkosi Bonakele.
Photo: Twitter/@the_DTI
Competition Commissioner Tembinkosi Bonakele said that price hikes on essential goods by large retailers during the 21-day lockdown will not be tolerated.
He said that they would be prosecuted for price-fixing and hiking prices excessively in terms of the Competition Act and Consumer Protection Act.
‘Numerous complaints’
He said that his organisation had received numerous complaints about price increases on essential goods since the lockdown measure was announced on Monday 23 March.
“We have continued to receive a number of complaints regarding shocking price increases in protective gear, and basic food products like rice, maize meal, cooking oil and cereal.
“We have followed up by communication and engagement with national retailers. We requested that they notify us of abnormal increases. There have been no notifications thus far, but complaints continue to pile up.
“Not to be presumptive, but we have to assume that retailers are exploiting the circumstances.”
Irregular commodity trading being monitored
He said that the Competition Commission would also monitor commodity trading irregularities, with some abnormal trading already having been reported.
“We have also monitored commodity trading. We saw an unusual upsurge in the price of white maize.
“We have been advised that the market is absorbing the cost of depreciation in the rand. Prices have come alive today and we continue to monitor the markets.”
Restrictions will be imposed if illegal behaviour continues
He warned that if this sort of exploitative behaviour continued, more restrictions would have to be imposed, hampering both consumers and large retailers during this tumultuous time for South Africa.
“Ultimately, it is out duty to advise government when markets don’t work. If there is a complete market failure, government will have no choice but to impose further market restrictions.
“There is no need to do this. We have no shortage of essential food products. These must move normally.”
He said that big business and retail providers would have to play ball with the current circumstances if they want to continue to be relied on by government during this period.
“We call upon the large business community who sell the bulk of these products [to cooperate]. The huge impact on consumers and the economy will come from them.
“If there is strict government regulation, it is these large enterprises that would complain the most. CEOs, continue working with government. The public must also make us aware of price hikes.”
