Dis-chem fined R1.2m for excessive mask prices
THE COMPETITION Tribunal has slapped Jse-listed Dis-chem Pharmacies with a R1.2 million administrative penalty for charging excessive prices for surgical face masks during the Covid-19 pandemic.
The tribunal said Dis-chem contravened section 8(1)(a) of the Competition Act in that it charged excessive prices for three types of surgical masks – SFM 50, SFM 5 and Folio50 – to the detriment of consumers during March.
The Competition Commission accused Dis-chem of abusing its dominance and charging excessive prices for surgical masks to the detriment of customers and consumers. Dis-chem denied the commission’s claims.
The commission charged that Dischem had hiked the price of surgical masks by up to 261 percent.
The tribunal yesterday concluded that the commission had shown Dischem had engaged in excessive pricing to the detriment of consumers.
The tribunal said material price increases of between 47 percent and 261 percent without corresponding increases in costs of any goods in a country such as South Africa with a long history of economic exclusion and deep inequality would seriously affect the public interest adversely.
“Material price increases of surgical masks, without corresponding costs justifications, in the context of Covid19 for which there is no discernible cure and where health services are skewed towards the wealthy, would seriously impact vulnerable and poorer consumers even more,” said the tribunal.