Are SA retailers & suppliers hiking prices amid COVID-19 crisis?

During the ongoing global COVID-19 crisis, South Africa has not been immune to the challenges of panic buying and price hikes. The Competition Commission has been inundated with over 500 complaints about retailers and suppliers unfairly inflating the prices of essential items. In response to these concerning allegations, the Deputy Commissioner of the Competition Commission, Harden Rajasuzu, has been working diligently to investigate the matter and ensure that consumers are protected from exploitation. These complaints are coming from a variety of sources, including both consumers and small to medium-sized businesses that rely on affordable inputs from major suppliers. The excessive price hikes are causing significant distress to the population as they struggle to cope with the economic ramifications of the pandemic. While the basic laws of supply and demand may dictate that prices rise during times of high demand, the South African government has implemented regulations to prevent businesses from taking advantage of the current situation. Minister Patel has passed regulations that stipulate businesses cannot raise prices beyond what they were before the pandemic, in an effort to curb price gouging and protect the public from unfair practices. Violations of these regulations carry hefty penalties, with fines potentially reaching up to 10% of a company's annual turnover. The Competition Commission is committed to taking swift action against any entities found guilty of price hiking, in order to uphold fair competition in the market. Rajasuzu has emphasized that businesses must act responsibly and ethically during this crisis and not exploit the situation for profit. Various essential goods have been subject to significant price increases, with face masks being one of the most egregious examples. Some companies have raised the price of face masks by up to 500%, making it unaffordable for many consumers. Other essential items such as sanitizers, rice, garlic, and tomatoes have also seen drastic price spikes, further exacerbating the financial burden on South African households. In response to these complaints, the Competition Commission has launched joint operations with the National Consumer Commission to investigate and address the issue. While traditional methods of investigation may be challenging due to the COVID-19 pandemic, the Commission is employing alternative strategies to ensure the safety of its investigation teams. By leveraging technology and remote monitoring, they aim to gather evidence and hold accountable those responsible for unjust price increases. Despite the challenging circumstances, the Commission remains dedicated to enforcing fair competition laws and protecting consumers from exploitation. Retailers who have maintained fair pricing practices have been commended, demonstrating that ethical business conduct is possible even in times of crisis. The Commission's efforts to safeguard consumer interests and promote market integrity are essential in maintaining a stable and just economic environment during these uncertain times.