ROGUE FIRMS ARE CASHING IN ON FEAR
Watchdog plans curbs to combat price hikes amid panic-buying
ROGUE retailers should not ‘cash in on fear’ and panic-buying by imposing big mark-ups on household essentials, a watchdog warned yesterday.
The Competition & Markets Authority (CMA) also said the Government may regulate the price of key products to prevent rip-offs.
The goods affected could include everything from hand sanitiser, toilet paper and painkillers to food staples including pasta and rice.
The CMA suggested the intervention would prevent retailers and individuals offering products at vastly inflated prices on eBay or Amazon. It said it wanted to ensure traders did ‘not exploit the current situation to take advantage of people’.
The watchdog has also warned firms not to make false claims for products, including the effectiveness of face masks, to boost sales.
CMA chairman Lord Tyrie said: ‘We will do whatever we can to act against rip- offs and misleading claims. Where we can’t act, we’ll advise government on further steps they could take if necessary.’
A 100ml bottle of Cuticura hand gel costs £1.55 on the Boots website. But Amazon sellers have been asking £10 for 50ml.
Similarly, 250ml bottles of Carex handwash can be bought for £1 each from Boots online, while packs of six are being advertised for more than £16 on Amazon.
An eBay seller wanted £8.50 for a 60ml travel-size bottle of Ecofinest Hand Sanitiser Gel Alcohol Rub Wash, while another was selling a 300ml bottle of Eden 99.9% Alcohol Hand Sanitiser for £18.99.
Amazon pledged to tackle the issue yesterday after US senator Ed Markey complained of ‘unjustifiably high prices’.
A spokesman blamed third-party sellers, adding: ‘We agree with Senator Markey – there is no place for price-gouging on Amazon.
‘That’s why our teams are monitoring our store 24/7 and have already removed tens of thousands of offers for attempted price-gouging. We are disappointed that bad actors are attempting to take advantage of this global crisis and, in addition to removing these offers, we are terminating accounts.’
Many supermarkets and chemists have run out of the products, while others have imposed a buying limit of two per person.
Two firms were censured this week for using coronavirus fears to cash in the sales of face masks.
The Advertising Standards Authority said their marketing was ‘likely to exploit people’s fears regarding Health combat advises the It England regular coronavirus. pointed use the coronavirus of handwashing did out face not that Instead, masks recommend Public outbreak’. and to it avoiding and mouth touching with unwashed the eyes, hands. nose
Retail experts say the combination of coronavirus, bad weather and low confidence levels has hit the number of people visiting high streets and shopping centres.
Online courier firm ParcelHero said the virus was likely to lead to a doubling of home deliveries as people avoided crowds.
It suggested the proportion of retail sales made online could rise from 20 per cent to 40 per cent.
David Jinks, its head of consumer research, said: ‘It is likely that consumers shopping weekly ‘Demand shop will centres for want for home groceries. to avoid and deliveries crowded the big of food, household bleach and items soap and, is likely in particular, to increase by 100 per cent.’ Professor Chris Whitty, Chief Medical Officer for England, said yesterday that consumer stockpiling was irrational, telling MPs: ‘There is no need at this stage to be stocking up on anything. This is going to be a marathon, not a sprint.’ Sue Davies, from the consumer group Which?, said: ‘Unscrupulous sellers are trying to cash in on coronavirus fears, and while we’ve seen websites like Amazon taking action to protect consumers from price-gouging, similar listings are reappearing all the time.’