Consumer watchdog warns of R1m fines for price gouging during disaster

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The NCC said a supplier or person found to be in contravention of the regulations could be fined up to R1m, fined up to 10% of a firm’s annual turnover, or be jailed for up to a year.

Acting consumer commissioner Thezi Mabuza said sections 40 and 48 of the Consumer Protection Act prohibit a supplier from increasing their prices “unconscionably”.

“Section 48 states that a supplier must not offer to supply or enter into an agreement to supply goods and services at a price that is unfair or unconscionable. Unfair, unreasonable or unjust pricing is when a supplier increases prices of goods or services that do not correspond to or are not equivalent to the increase of providing that service or good,” she said.

The items suppliers are not allowed to inflate prices of basic food and consumer items, emergency products and services, medical and hygiene supplies, and emergency cleanup products and services. “The NCC will continue implementing the provisions of the CPA by reducing and ameliorating any disadvantages experienced in accessing any supply of goods or services by consumers,” Mabuza said.

She encouraged consumers to monitor the market and report any suspicious unfair price increases of these goods and services.

 

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