The National Consumer Commission (NCC) has filed a matter against a company with the National Consumer Tribunal (NCT) for prosecution.
The NCC had received complaints of alleged unfair, unreasonable, unjust or unconscionable price increase against the company, whose name has not been revealed, on March 26 and filed the matter with the NCT on April 9.
The NCC indicated that it had been inundated with complaints from consumers against several suppliers throughout the country.
Acting Commissioner Thezi Mabuza said that following the declaration of the National State of Disaster by President Cyril Ramaphosa, many suppliers had allegedly increased prices of goods and services essential to curbing Covid-19.
“The supplier in question increased the price of a 25 ℓ hand sanitiser from R990 (a price they charged in December 2019) to R2 745 (on March 24). This means the supplier has pocketed a profit of more than 114%."
The NCC said it has reasonable suspicion that the supplier has engaged in unfair, unconscionable, unreasonable, unjust or improper conduct by sharply increasing its prices and this is in contravention of the provisions of Regulations 350 as gazetted by Trade and Industry Minister Ebrahim Patel on March 20, Mabuza said.
The NCC has made an application to the NCT, seeking orders of declaring the supplier’s conduct prohibited; interdicting the supplier from engaging in prohibited conduct; a full refund to the affected consumers; and an imposition of an administrative fine of R1-million.
The NCC expects to file matters against more companies at the NCT in the coming week.
“We will take stern actions against suppliers who infringe Regulation 350. Our mandate is to protect consumers and customers from unconscionable, unfair, unreasonable, unjust or improper commercial practice during the national disaster.
"We believe that vulnerable consumers are hit hard as the cost of their food basket increases,” Mabuza concluded.
The NCC’s toll free number is 0800 014 880 or 012 428 7000 (during office hours).