In a statement on Wednesday, April 29, the Competition Commission of South Africa stated it had referred another company, MATUS, to the Competition Tribunal for it to sign off on a penalty agreement after the inflation of face-mask prices.
The tribunal will need to confirm as an order a consent agreement with the distributor of face masks and personal protection gear after the company inflated prices of essential hygienic items during the COVID-19 disaster.
In terms of the agreement, MATUS, a company with offices in Johannesburg, Cape Town and Durban and satellite branches in Port Elizabeth and Mbombela, agreed to pay an administrative penalty of R5.9 million (US$323,727) after it admitted to inflation of its gross profit margins with regards to essential hygienic products.
“The company will also contribute R5 million to the Solidarity Fund for COVID-19. Further, it will, with immediate effect, reduce its gross profit margin on dust masks to acceptable levels for the duration of the state of national disaster,” the Commission stated.
The company undertook, for the duration of the state of national disaster, to ensure that its gross profit margins for essential products would not be increased above what was applicable on February 16, 2020, for as long as such products remain essential in terms of the Consumer Protection Regulations or any subsequent amendment or replacement of the regulations.
Full Content: Citizen
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
