Pick n Pay signs a memorandum of agreement with the Competition Commission to cap some prices on items

Push came to shove for one of SA’s leading retail outlets Pick n Pay after it was called out for unfair pricing on some of their items. The retailer has now signed a memorandum of agreement with the Competition Commission to cap its gross profit margin on garlic and ginger, amid investigations into alleged price gouging at South African retailers.

Pick n Pay has also instructed its franchise stores to not price these items higher than the corporate store price, the commission said in a statement on Monday (15 March).

The commission said that it now hopes to sign similar agreements with other retailers flagged in the inquiry.

In February, the National Consumer Commission (NCC) launched an investigation into allegations of price gouging relating to garlic and ginger, following an outcry from consumers.

Acting consumer commissioner Thezi Mabuza said the commission initiated the investigation under Section 71 of the Consumer Protection Act (CPA).

Shoppers claimed that the prices of both products were being inflated at various stores, including Pick n Pay, Shoprite, Food Lovers Market, Woolworths and Spar.

“Our investigation is not limited to these suppliers. We urge consumers throughout the country to monitor the market and where they suspect excessive price increase, they must file complaints with the commission,” The NCC said.

“These allegations, if proven true, would constitute a violation of Regulation 350 and an imposition fine of up to R1,000,000 or up to 10% of a supplier’s annual turnover or even imprisonment for a period not exceeding 12 months.”

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