Retailers warned against price gouging

A statement, released alongside the Association of Convenience Stores, British Retail Consortium, Chartered Trading Standards Institute and NFRN, said:  “Although reports to the Competition and Market Authority’s Covid-19 Taskforce have fallen since the early stages of the pandemic, the warning against hiking prices unjustifiably is aimed at the minority who are still seeking to profit from the coronavirus outbreak by raising prices. As the crisis develops, new types of products could be required by consumers on a large scale, and these may become the focus for unjustifiable price increases.”

The statement added: “We remain concerned about the behaviour of a small number of businesses at this time. The vast majority have responded responsibly, but there is a minority who have not. Those who inflate prices to profit off the backs of their customers are adding to their distress at a time of particular vulnerability and maybe severely damaging their own reputation.

“Consumers are likely to remember those businesses who attempted to profiteer and may well vote with their wallets once this crisis ends. For many businesses, the crisis could represent an opportunity to do the right thing, and as a result develop relationships with new customers.”

Evidence received by the CMA’s taskforce shows the largest price increases, as well as the largest number of price complaints, concern hand sanitiser, with a median reported rise of just under 400%. The average reported increase across all reports, covering products such as paracetamol, flour, meat, toilet roll, rice, and eggs is around 160%.

The CMA said it is keeping all evidence it receives under review and will not hesitate to take enforcement action where there is evidence that the law has been broken.

The ACS launched a campaign in April urging convenience retailers to report any instances they see to the CMA through their Covid-19 Taskforce.

ACS chief executive, James Lowman, said: “The Covid crisis has illustrated just how important local shops are to their customers and communities, and the vast majority of stores have offered new services and coped with operational challenges like implementing social distancing and supply problems without changes to their pricing. In a small number of cases retailers across a number of sectors have been accused of increasing prices, and ACS has been pro-active in working with the CMA on a campaign to discourage these practices and to promote retailers telling the CMA when they see this activity from other businesses.

“We are continuing to work with the CMA, including adding ACS’ voice to the joint statement issued today.”