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Competition Tribunal confirms fines for COVID-19 price increases
- 12 June 2020
- Accounting
- South African Accounting Academy
To date, the Commission has received over 1500 complaints or tip-offs since the start of the lockdown related to excessive pricing of basic food products, masks and sanitizers. Most of these have been from Gauteng. In a press release, they have 4 referred investigations to the Competition Tribunal including the investigation of Dis-Chem Group and Babelegi Supplies, and we await judgements from the Competition Tribunal. The Commission encouraged firms to reach settlements in order to speed up the processing of excessive pricing cases. In most settlements, firms had undertaken to correct prices/margins and make a donation to a public interest organisation or the Solidarity Fund. The total amount of settlements equal R12 854 694,00, of which R5 316 990,00 has been donated to the Solidarity Fund. A total of 35 firms are in various stages of settlement.
Most recently, a Krugersdorp hardware store denies excessive pricing claim but agrees to donate R9 521.74 to Solidarity Fund and reduce its gross profit margin on facial masks.
The Tribunal has also confirmed a consent agreement, as an order, whereby Auction and Salvage Net (Pty) Ltd – a Krugersdorp hardware store that supplies face masks – has agreed to donate R9 521.74 to the Solidarity Fund.
Click here to download the press release.