Tribunal confirms three more consent agreements related to excessive pricing

10th July 2020 By: Simone Liedtke - Creamer Media Social Media Editor & Senior Writer

The Competition Tribunal has confirmed three more consent agreements relating to Covid-19 excessive pricing complaints.

The Competition Commission had concluded the consent agreements with the three firms after receiving and investigating complaints from the public.

The first consent agreement was entered into between the commission and Green Hygiene, which distributes and supplies washroom dispensers and associated consumables in the away-from-home market.

According to the commission, it received a complaint on March 30 relating to the company’s alleged inflation of 700 ml Betasan auto spray sanitiser dispensers.

In terms of the consent agreement, Green Hygiene agreed to contribute R8 079 to the Solidarity Fund and has also undertaken to, among others, cease excessive pricing conduct as described in the agreement.

The company will also reduce its cost margin on face masks to an agreed maximum percentage for the duration of the state of national disaster and will also implement a competition law compliance programme.

The second consent agreement was entered into between the commission and Eldopark Pharmacy, in Centurion, for alleged excessive pricing of three types of face masks (three-ply loop surgical masks, three-ply KN90 grade surgical masks and FFFP1 masks) during the state of national disaster.

The commission found that the pharmacy’s mark-ups on these products were “unreasonably high”.

In terms of the agreement, Eldopark Pharmacy agreed to, among others, donate R5 500 to the Solidarity Fund, to immediately stop the pricing conduct as described in the agreement and reduce its gross profit margin on face masks to an agreed maximum percentage.

The pharmacy will also implement a competition law programme.

The third consent agreement relates to Mica Barberton, a hardware retail store in Mpumalanga, for the alleged inflation pricing of face masks during March.

In terms of the agreement, Mica will donate R10 000 to the Solidarity Fund and will also desist from pricing conduct as described in the agreement.

Mica Barberton will also immediately reduce its gross profit margin on face masks to an agreed maximum percentage for the duration of the state of national disaster and implement a competition law compliance programme.