Cape Town company agrees to pay R600,000 for over-charging for sanitisers

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Caprichem, a Cape Town-based company, has agreed to pay a R500,000 penalty and R100,000 contribution to the Solidarity Fund for charging excessive prices for sanitisers

The Competition Commission said it had applied to the Competition Tribunal for an order confirming the settlement agreement the commission had reached with the company.

“Furthermore, Caprichem has undertaken to pay a contribution of R100,000 to the Solidarity Fund,” the commission said in a statement. “The settlement follows the commission’s investigation which found that the Caprichem increased its prices of a 5l hand sanitiser from R262 to R527 during the period March 16 to date; representing an increase in gross profit margin of 91% and a 1,918% increase in net profit margin.The commission said it had, since the outbreak of Covid-19, received more than 1,556 complaints or tip-offs related to excessive pricing of basic food products, masks and sanitisers.

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Cape Town company agrees to pay R600,000 for over-charging for sanitisersThe Competition Commission said it had applied to the Competition Tribunal for an order confirming the settlement agreement the commission had reached with the company.
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