TRIBUNAL CONFIRMS THREE MORE CONSENT AGREEMENTS
RELATING TO COVID-19 EXCESSIVE PRICING COMPLAINTS

The Competition Tribunal has confirmed three consent agreements relating to COVID-19 excessive pricing complaints.
 
The Commission concluded the consent agreements with the firms after receiving and investigating complaints from the public.
 
The factors that the Tribunal considers in consent agreement matters include the level of cooperation by the firm in question with the competition authorities as well as how timely it has settled the complaint against it. In these three matters there was such cooperation as well as timely conclusion of the consent agreements by all three firms.
 
Green Hygiene (Pty) Ltd (Green Hygiene)
 
Green Hygiene distributes and supplies washroom dispensers and associated consumables to the away-from-home market i.e. shopping centres, airports, restaurants etc. According to the Commission, it received a complaint on 30 March 2020 relating to Green Hygiene’s inflation on the price of 700 ml Betasan auto spray sanitizer dispensers.
 
Following an investigation, the Commission found that Green Hygiene’s  mark-up on Betasan auto spray hand sanitizer dispensers during March 2020 contravened section 8(1)(a) of the Competition Act (the Act) read with Regulation 4 of Consumer Protection Regulations (the Regulations).
 
In terms of the consent agreement, Green Hygiene agrees to contribute R8 079.00 to the Solidarity Fund. It has also undertaken to, among others, immediately cease excessive pricing conduct as described in the agreement; reduce its gross profit margin on face masks to an agreed maximum percentage for the duration of the state of national disaster; and implement a competition law compliance programme.
 
Eldoram Dienste CC t/a Eldopark Pharmacy (Eldopark Pharmacy)
 
The Commission investigated Eldopark Pharmacy, a community pharmacy in Centurion, for alleged excessive pricing of three types of face masks (3-ply loop surgical masks; 3 ply KN90 grade surgical masks and FFP1 masks) during the state of national disaster and  found that its  mark-ups on these products were unreasonably high.
 
The pharmacy admits that its mark-ups for all three types of masks during March and April 2020 contravened section 8(1)(a) of the Act read with Regulation 4 of the Regulations.
 
In terms of the agreement, Eldopark Pharmacy agrees to, among others: donate R5 500 to the Solidarity Fund; immediately stop the pricing conduct as described in the agreement; immediately reduce its gross profit margin on face masks to an agreed maximum percentage; and implement a competition law compliance programme.
 
Mica Barberton
 
On 2 April 2020, the Commission received a complaint against Mica Barberton, a hardware retail store in Mpumalanga, for the alleged inflated pricing of face masks (FFP2 NR masks) during March 2020.
 
The Commission, after investigation, found that Mica Barberton’s price increases in March 2020 contravened section 8(1)(a) of the Act read with Regulation 4 of the Regulations.
 
In terms of the consent agreement, Mica agrees to donate R10 000 to the Solidarity Fund. It also agrees to immediately desist from the pricing conduct as described in the agreement; immediately reduce its gross profit margin on face masks to an agreed maximum percentage for the duration of the state of national disaster; and implement a competition law compliance programme.