Commission guns for maximum penalty after firm 'charges excessive prices' for masks

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The Competition Commission announced on Tuesday it had referred LevTrade International to the Competition Tribunal for prosecution following allegations of price gouging after the price of a box of 20 respiratory masks rocketed to R670 from R139.

"This referral follows an investigation by the commission which found that LevTrade has charged excessive prices on essential hygienic goods to the detriment of customers and consumers in contravention of section 8 of the Competition Act read with regulation 4 of the Consumer Protection Regulations.

"The price of a box of 20’s respiratory masks was further increased from R170.00 to R310.00 on 05 March 2020, a price increase of 82%. "This increase constitutes 76% increase in gross mark-ups on 14 February 2020 to 748% on 23 March 2020," said the commission in the media statement.

 

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