Dis-Chem to appeal 'price gouging' ruling

Dis-Chem says it will approach the Competition Appeal Court.

On Tuesday, the Competition Tribunal has found Dis-Chem guilty of contravening the Competition Act by selling surgical face masks at excessive prices, charging the pharmacy giant a R1.2 million fine.

READ: Dis-Chem fined R1.2m for excessive mask pricing

The company said in a statement that the Tribunal made several errors in fact and law.

"Dis-Chem notes with disappointment the Competition Tribunal's decision in which it found that Dis-Chem had engaged in excessive pricing of surgical masks and imposed an administrative penalty of R1 200 000."

The Tribunal says Dis-Chem increased their prices by more than 200% in March.

"The Competition Tribunal failed to take into consideration that Dis-Chem was reacting in a responsible manner to significant disruptions to the market and that it increased its retail prices whilst it was facing significant price increases and shortages from its suppliers."

Dis-Chem says it's innocent and their local suppliers had no stock available, resulting in the company importing millions of masks at higher prices.

"We reiterate that Dis-Chem did not charge an excessive price for face masks. Like everybody else, we were challenged to find supply because of the unprecedented global scale of the disaster and the unprecedented rapid rise in demand for masks.

"It is unfortunate that Dis-Chem's conduct was considered without regard to the market realities at the time and that it is cast in a negative light as part of the panic and uncertainty that surrounds the COVID-19 pandemic."