Pick n Pay agree to lock prices of ginger and garlic
Pick
n Pay will put a cap on profits from the sale of garlic and ginger.
Several retailers were named and shamed on social media for charging exorbitant prices for the two food items.
Garlic and ginger sales shot up as people sought to boost their immune systems amid the COVID-19 pandemic.
The Competition Commission's Siyabulela Makunga says they began a probe after customers complained and demanded action.
He says the price hikes are at odd with the Consumer Protection regulations.
Pick n Pay was the first to sign a memorandum of agreement to lock prices.
"Whilst wholesale prices for these products had increased due to heightened consumer demand during the second wave of infections, the Commission is of the view that this did not warrant the large increase in absolute margins seen in some instances," Makunga said.
“The agreement essentially confirms that Pick n Pay has kept it gross profit margin for ginger and garlic for the period covering 28 January to the 1 April 2021. Pick n Pay has also tasked its franchises to price no higher than corporate store prices for ginger and garlic,” he added.
