The Competition and Tariffs Commission (CTC) of Zimbabwe has issued a stern warning against manufacturers that are in the habit of setting maximum selling prices for retail and wholesale outlets highlighting that such practices contradicted the set law.
The remarks are a slap in the face for members of the public who expect authorities to act against unscrupulous businesses violating the exchange rates by charging much higher prices.
But in a recent update, the CTC stated that specifying minimum and maximum price ranges to be charged by wholesalers/retailers can be construed as setting minimum resale prices, an initiative which stifles competition among the players.
“Floor price setting acts as a disincentive for efficient operators and innovators, as failure to charge the lowest possible price defeats the whole essence of promoting competition and enhancing consumer welfare,” stated the CTC.
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