The Competition and Market Authority has, alongside seven trade associations, warned retailers against raising prices unfairly.
Although reports to the CMA’s Covid-19 Taskforce have fallen since the early stages of the pandemic, the warning against hiking prices unjustifiably is aimed at the minority who are still seeking to profit from the coronavirus outbreak by raising prices.
And it is a minority. To put the scale of the problem in context, the proportion of shops reported for price increases is two in every thousand in Scotland. This equates to a rough total of 10 convenience stores throughout the country.
Based on evidence the CMA has received since it launched its Taskforce, the largest price increases –as well as the largest number of price complaints – concern hand sanitiser, with a median reported rise of just under 400%. The average reported increase across all reports, covering products such as paracetamol, flour, meat, toilet roll, rice and eggs is around 160%.
Customers can report profiteers using the CMA’s online form to report businesses.
Retailers can also use the form to report suppliers who have hiked up prices during the pandemic.
A CMA spokesperson commented: “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 statement was issued in conjunction with 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; and Scottish Wholesale Association.
