Price of face masks draws complaints

AUCKLAND: A pharmacy chain run by an NZXlisted firm has received more complaints than any other retailer in the country over the price of its face masks.

Documents released under the Official Information Act show 44 complaints about face masks sold at eight retailers had been lodged to the Commerce Commission since the start of the Covid19 crisis in late March.

The majority of issues raised related to the price of masks.

The high price of surgical face masks has been a hot topic since the onset of the pandemic. The Ministry of Health, Prime Minister Jacinda Ardern and some highprofile Kiwis, including toy tycoon Nick Mowbray, have raised the issue of price gouging on masks following a surge in demand during the height of the outbreak.

During the national lockdown, and second regional lockdown in Auckland, a box of 50 masks was being sold for more than $50, and a box of 20 for about $62. In some cases single masks were being sold for up to $20.

About 29 complaints the commission received were about the price of masks — the biggest cause of concern, while others related to representations of country of origin, effectiveness and compliance with mandatory standards.

Between March 26 and September 9, the commission received 10 complaints about Unichem Pharmacy, owned and operated by Green Cross Health.

It also received three complaints about the company's sister brand Life Pharmacy.

Second to Unichem, Countdown supermarket operator Woolworths NZ received eight complaints about its masks and discount pharmacy Chemist Warehouse received four.

New World, operated by supermarket giant Foodstuffs, and Terra NZ were among other retailers that each received three complaints.

An Australian company trading as Medshop New Zealand also received complaints.

Green Cross Health chief executive Rachael Newfield said the price of masks sold at its pharmacies was dependent on the cost charged by the supplier at the time.

She said a surge in demand and difficulties securing the masks during the first nationwide lockdown had made it difficult to maintain consistent pricing.

Newfield said franchisees were able to set their own pricing on the product.

‘‘Unichem Pharmacies were not provided any of the government supply for consumer sale which saw them sourcing through existing supply channels and quickly trying to establish new supply channels to support demand’’

A spokesman for Countdown said high global demand for face masks had put a lot of pressure on price and stock levels of the past six months.

Chemist Warehouse has been approached for comment. — The New Zealand Herald