An outcry from consumers has led the National Consumer Council to launch an investigation into the allegations of price gouging of garlic, lemon and ginger. Price gouging, as defined by the law, is an unfair or unreasonable price increase that does not correspond to or is not equivalent to the increase in the cost of providing those good or services.
Consumer and Customer Protection and National Disaster Management Regulations and Directions contains a list of 22 essential products for which a supplier must not charge an unfair or unreasonable price. “This was done to protect consumers against unconscionable, unfair, unreasonable, unjust or improper commercial practices during the national disaster,” said acting consumer commissioner, Thezi Mabuza.
Mabuza said the commission initiated this investigation in terms of the Consumer Protection Act (CPA) following a public outcry.
She said: “The purpose of the CPA is, amongst others, to reduce and ameliorate any disadvantages experienced in accessing any supply of goods or services by consumers.”
An investigation into seven grocery stores have commenced. Mabuza said: “Our investigation is not limited to these suppliers. We urge consumers throughout the country to monitor the market and where they suspect excessive price increase, they must file complaints with the Commission. These allegations, if proven true, would constitute a violation of Regulation 350 and an imposition fine of up to R1million or up to 10% of a supplier’s annual turnover or even imprisonment for a period not exceeding 12 months.”
The investigation comes as a sigh of relief for many consumers who said the cost of living is already unaffordable. “It’s just ridiculous to know that supermarkets would increase prices of food because people want more of it. The world is in a state of disaster and people need to do everything they can to stay alive. If ginger and garlic is helping people why raise the price of it?” said Tony Govender a Durban resident. Selvam Pillay, also from Durban said in times like these there should be unity.
“When the country needs to stand together some people are only worried about money. With these foods people are trying to save their own lives. Those who have increased prices on these foods to a ridiculous amount should be jailed.”
