Government has imposed regulations that will limit unjustified price hikes and product stockpiling, to protect consumers, as the number of COVID-19 pandemic cases rises to 150.
The regulations, announced by Trade, Industry and Competition Minister Ebrahim Patel deal with pricing matters during the national disaster.
On Thursday, government-issued directives under the Disaster Management Act and Regulations under both the Competition Act and Consumer Protection Act.
According to the regulations, prices may not exceed the increase in the cost of the raw material. The profit levels, he added, should not be hiked higher than in the period just before the period of the COVID-19.
Regarding stockpiling, all retailers will be required to take steps to curb this while ensuring stock availability, including on weekends and month-end.
Should companies fail to comply, the government may have to set limit prices on certain products. In the same vein, a breach in the regulations may see the concerned party heavily penalised.
These ranged from R1 million fines, 10% of a company’s turnover and jail sentences of a year.
Patel said these interventions come after government became cognisant of the effect the virus may have on the economy and the Gross Domestic Product.
Government is working with retailers and large food producers to ensure that the food chain from farm to manufacturers, to the shops, remains strong and basic foods are available to the public.
The retail groups include Shoprite, Checkers, Pick n Pay, Woolworths, Spar, Game, Dion, Makro, Clicks and Dischem.
– SAnews.gov.za
