Food Lover’s Market was found guilty of contravening the Competition Act after it admitted to charging excessive prices for “essential” raw ginger sold at one of its stores, the Competition Tribunal confirmed.
The essential goods were worth R18,579, which was reportedly based on the additional income derived by the company due to the significant margins increase on ginger in May. The commission found that Food Lover’s average mark-up and gross profit margins for ginger in May 2020 were unreasonably high at the Westgate store, as it was considered as an essential product during lockdown in terms of the consumer protection regulations.The company also agreed to reduce its gross profit margin on the product at the Westgate store to an agreed maximum percentage for the rest of lockdown.
The case was referred to the tribunal by the Competition Commission in April, after the Competition Tribunal received complaints from the public about excessive pricing for surgical masks.