Call for crackdown on C-19 profiteering

The competitions watchdog is seeking emergency powers to tackle coronavirus profiteering.

The Competition and Markets Authority (CMA) said it needs new legislation to crack down on companies that have increased prices for products such as hand sanitiser, face masks and toilet roll during the pandemic.

The CMA received 21,000 complaints between March 10 and April 19 that related to price gouging. The average price increase was 130% – and in the case of hand sanitiser, an average of 367%.

But CMA lawyers say it is all but powerless to punish offenders because of the limited nature of UK competition and consumer laws.

CMA chief executive Andrea Coscelli has advised the Department for Business, Energy and Industrial Strategy that they need temporary new laws to target profiteers. “Consumer and competition law are not designed for emergencies,” he said. “Part of our role is to use everything we have but if there are gaps, to explain to the government what those gaps are.”

In March, Prime Minister Boris Johnson told the House of Commons that new laws were needed to deal with “profiteering”. Business secretary Alok Sharma met with Amazon and ebay last month to discuss price gouging on their sites.

Sue Davies, head of consumer protection at Which?, said: “It is unacceptable for people to be left at the mercy of unscrupulous sellers that are price-gouging. The UK is lagging behind other countries in being able to take swift action on this issue.

“The government needs to step in with emergency legislation to help crack down on price-gouging, whether online or on the high street, and keep the price of essential items reasonable during crises now and in the future.”