Today (3rd July) the Competition and Markets Authority (CMA) issued a joint statement alongside a number of trade bodies, including ACS, highlighting concerns about a small number of businesses that are involved in price gouging. Evidence received as part of the taskforce revealed price increases on products such as paracetamol, flour, meat, toilet roll, rice and eggs.
The joint statement says: “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 may be 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.”
The CMA launched a taskforce where consumers can report businesses attempting to unfairly raise prices and take advantage of consumers during the Covid-19 outbreak. In addition, the CMA is calling for retailers to report instances where prices are being raised because of increases in supplier costs through the same form.
In April, ACS launched a campaign 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.”
The business complaint service is available here: https://www.coronavirus-business-complaint.service.gov.uk/
Note to editors
Joint statement signatories include:
- Association of Convenience Stores
- Association of Independent Multiple Pharmacies
- British Retail Consortium
- Chartered Trading Standards Institute
- Federation of Independent Retailers (NFRN)
- Federation of Wholesale Distributors
- Scottish Wholesale Association
