Following the widespread riots and vandalism in the country, the Gauteng Department of Economic Development, through the Gauteng Office of Consumer Affairs, has warned suppliers against inflating prices of essential items.
Advocate Fati Manamela, the chief director for consumer affairs and business compliance, said Sections 40 and 48 of the Consumer Protection Act (CPA) prohibit suppliers from increasing their prices unconscionably.
“Section 48 states that a supplier must not offer to supply, supply or enter into an agreement to supply goods and services at a price that is unfair or unconscionable. Unfair, unreasonable or unjust pricing [price gouging] is when a supplier increases prices of goods or services that do not correspond to or are not equivalent to the increase of providing that service or good,” said Manamela.
Manamela said that basic food and consumer items, emergency products and services, medical and hygiene supplies as well as emergency clean-up products and services were the goods and services in question.
Contravening these regulations could lead to a fine of up to R1 million, a fine of up to 10 percent of a firm’s annual turnover, or imprisonment for a period of one year.
Consumers are encouraged to monitor the market and report any suspicious and unfair price hikes of these goods and services. Consumers in Gauteng are urged to report these instances to the Gauteng Office of Consumer Affairs on the email address: consumer@gauteng.gov.za for processing and referral to the Competition Commission and the National Consumer Commission.
[Photo: Reuters]