Kristen Zanoni  |  July 20, 2020

Category: Covid-19

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Woman pushing grocery cart while wearing blue gloves and face mask - Pharmacies warned about charging excessive prices for face masks

Two watchdogs have warned pharmacies in the U.K. not to charge excessive prices for face masks during the coronavirus pandemic.

The Competition and Markets Authority (CMA) and the General Pharmaceutical Council (GPhC) have notified pharmacies multiple times that they should not take the opportunity to charge excessive prices on in-demand items like face masks, hand sanitiser and paracetamol during the pandemic, according to the Telegraph.

The CMA and GPhC created a joint letter to explain to pharmacies that face masks are mandatory on public transport and as people are returning to work and shops, this is not the time to make profits by charging excessive prices on necessary items. 

The watchdogs added that while most businesses were not imposing excessive prices, the CMA and GPhC have still received reports alleging that a small number of pharmacies are trying to take advantage of the public during the pandemic by demanding unjust prices for essential items. 

In the joint letter, the CMA mentioned previous investigations it has launched into four retailers, including pharmacies, suspecting they had charged “excessive and unfair” prices for hand sanitiser.

As the pandemic hit the U.K., hand sanitiser and other personal hygiene products were swept off of the shelves. The four shops have not been named, but it is suspected that they were charging excessive prices during the coronavirus pandemic.

Surgical face masks - Pharmacies warned about charging excessive prices for face masksAnd in May, Marks & Spencer was accused of taking advantage of the pandemic by charging customers twice as much for hand sanitiser. Hand sanitiser was just one product that has seen surging price increases, but hand sanitisers were the most affected product, with prices rising 367%.

The CMA attempted to combat excessive prices by contacting convenience stores and large shopping websites like Amazon and eBay.

Meanwhile, the GPhC stated it had sent some pharmacies a letter requesting that they review the prices they were charging for certain items and determine whether they should be changed.

It has been recognised by the watchdogs that due to high demand, some wholesale prices for products have been increased, according to the Guardian

Personal protective equipment and cleaning products might need to be marked up, but the CMA said pharmacies should not be applying disproportionately excessive prices to essential products, “unless the additional costs specifically relate to the sale of those products.”

The U.K. government has outlined a guidance of personal protective equipment used to help prevent the spread of coronavirus. Each item falls into a list of different regulations that must be upheld.

“Do not include higher than usual mark-ups when compared to their pre-coronavirus mark-ups for those products and their mark-ups more generally,” the letter from the watchdogs stated.

In the wake of the coronavirus pandemic, the CMA set up a taskforce to crack down on excessive prices or those trying to profit off of people’s fears, the Guardian reported. The mission of the taskforce is to contact shops and online traders about excessive prices and put a stop to price gouging.

The taskforce has collected thousands of complaints from consumers during the lockdown, and warns businesses that if they do not comply and continue to breach consumer protection or competition laws, legal action will be taken.

The CMA has cautioned businesses that it will take action if they are found to be capitalising from elevated prices on essential personal protection items.

The CMA’s coronavirus taskforce has been contacted more than 60,000 times between 10 March and 17 May about virus-related complaints. The watchdog sent advisory warning letters to 187 companies in April, after receiving 2500 complaints about unjustifiably high price increases on food and personal hygiene items such as hand sanitisers.

As of 21 May, the number of complaints had soared to 7,000.

Companies that do not adhere to the CMA’s instructions can be taken to court, according to the Retail Gazette.

Have you been affected by excessive prices during the pandemic? Tell us your story in the comments.

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