Competition Authority warns against exploitative price hikes
Amidst the current confusion surrounding the devaluation of the Pula, the Competition and Consumer Authority (CCA) has sent a stern warning to local retailers against any exploitative price hikes.
In a strongly worded statement, the CCA confirmed reports of businesses unjustifiably increasing prices following the recent adjustment of the Botswana Pula currency exchange rate.
In a press release authored by the Director of Communications and Stakeholder Relations, James Molosankwe, the authority said it would investigate any perceived unfair or misleading pricing.
“Already the CCA is on the ground doing inspections and investigations. We have so far established that some suppliers have put disclaimers that they shall charge consumers more than the price displayed at the shelves. CCA warns that this is a contravention of the Consumer Protection Act of 2018, in that a supplier shall not charge a consumer more than the price displayed,” reads the report warning that while the CCA is aware businesses are free to independently set prices in a market economy, exploitative pricing based on misinformation to erode consumer welfare will not be tolerated.
Urging consumers to be vigilant and guard against this unfair business practices, CCA said any consumer who has experienced such unfair business practices should report the matter to the authority for prompt intervention.
“We view this type of practice as exploitation of customers under the guise of exchange rate adjustments and urge businesses to refrain from this conduct. Evidently, there are businesses that could potentially be engaged in unethical business conduct by hiking prices on old stock which was bought before the Pula adjustment. The CCA will investigate and if necessary, impose penalties for anti-competitive conduct and unfair business practices by the concerned businesses,” reads the statement.
