Dischem Pharmacies has been charged by the Competition Commission, for alleged excessive pricing during the State of National Disaster declared by President Cyril Ramaphosa.
The finding has seen the commission referring the case to the Competition Tribunal for prosecution, following an investigation in which Dischem was found to have charged excessive prices on essential hygienic goods, including surgical face masks.
The commission says from at least 28 March it has received several complaints from the public against Dis-Chem stores for high prices for masks.
It said that prior to the declaration of a national state of disaster, Dis-Chem was selling three types of masks at far lower prices.
Prices for different masks were inflated by 43% and some to 261%.
The retailer's input costs with regards to the surgical face masks did not increase but their gross profit margins inflated from 20% in February 2020 to 45% in March 2020.
The commission has asked the tribunal to impose a maximum penalty against Dis-Chem as these items were considered essential in saving lives.
- African News Agency (ANA)
