Durban: The KZN Department of Economic Development, Tourism and Environmental Affairs is nvestigating allegations of price gouging in the province following a week a violent unrest and looting.
The department said it had received complaints from consumers regarding the alleged gouging of prices by some businesses.
“Upon receipt of these complaints we tasked a team from EDTEA’s Consumer Protection Unit to conduct an investigation.
“Where wrongdoing is found we will not hesitate to take action which may include fines against those businesses.”
MEC Ravi Pillay said: “This cannot be a time for profit-making. We are calling for a patriotic contribution to the national effort to recover and rebuild. Roads, fuel and food security are our immediate tasks. Excessive profiteers are warned that the law provides for severe punishment. We will also publish offenders with the consequence of reputational risk."
The gouging of prices is prohibited under the Disaster Management Act regulations.
“We understand that due to the disruption of supply lines, some businesses have had to incur additional costs when transporting goods. However, some of the price hikes are allegedly very high and unjustifiable.”
Pillay appealed to businesses to desist from gouging prices, especially of food items, as that had a bearing on food security.
“It is, however, worth noting that the majority of businesses have rallied behind the ongoing efforts to ensure food security.”
He said the department was inspired by examples of businesses who partnered with communities to rebuild livelihoods and to assist the poor.
IOL