The Competition Commission Commission said today, it has referred its first COVID-19 price gouging case to the Competition Tribunal.
Many companies have taken advantage of the spread of COVID-19 in South Africa by hiking prices of items such as surgical gloves and masks.
Tembinkosi Bonakele, the commissioner of the Competition Commission, said the first case before the Tribunal is a case of excessive pricing against Babelegi Workwear Overall Manufacturers & Industrial Supplies CC (Babelegi) for inflating the price of facial masks
“The Commission has now gone past the stage of moral suasion and appeals to patriotism to stop abuse of market power by those seeking to exploit consumers at the worst possible time – the law must take its course – we will see a wave of prosecution of firms in the next coming days,” said Bonakele.
The case against Babelegi will be heard later this month.
The watchdog said its investigation into Babelegi found the company had increased its prices of facial masks from R41 per box up to R500 per box.
Facial masks fall under the category of ‘medical and hygiene supplies’ and have been identified as essential goods for the prevention and escalation of the COVID-19 pandemic.
Bonakele said the Commission had concluded other investigations that it will refer to the Tribunal soon.
This includes a company that allegedly increased the price of surgical gloves over a period of a week from R99.99 to R170, with no cost increase justifications and a pharmacy that earned more than 300% mark-up on face masks and hand sanitiser.
