The Competition Commission has referred, to the Competition Tribunal for prosecution, a case against an industrial chemicals company, Caprichem, for alleged excessive pricing during the State of National Disaster.
This follows an investigation by the commission, which found that Caprichem allegedly charged excessive prices on 5 ℓ hand sanitisers to the detriment of customers and consumers in contravention of the Competition Act read with Regulation 4 of the Consumer Protection Regulations.
Caprichem, a manufacturer of industrial chemicals based in the Western Cape, supplies different types of chemicals for cleaning and surface treatment to various industries such as the automotive, construction, hospitality, laundry, personal care and food and beverage sectors.
The commission received complaints from the public against Caprichem for engaging in alleged excessive pricing on a 5 ℓ hand sanitizer from March.
The commission found that Caprichem had increased its prices of 5 ℓ hand sanitiser from R262 to R527.
This increase constitutes a 91% increase in gross profit margin and a 1 918% increase in net profit margin.
The commission has asked the tribunal to impose a maximum penalty against Caprichem.