Business entities have been sternly warned against making ‘unjustified’ price increases of Covid-19 essential goods and services. The warning is a statement by the Competition and Fair Trading Commission (CFTC) said it is unacceptable for enterprises to take advantage of disruption of supply chains in certain product markets,
In the statement, CFTC executive director James Kaphale has acknowledged the disruption, but has insisted that “the commission would like to warn business enterprises to cease and desist from engaging in the practice of price gouging, which is a form of prohibited unconscionable conduct under the Competition and Fair Trading Act and Consumer Protection Act.”
Recently, the CFTC fined 11 companies, charging them with unfair trading practices. Kaphale outlined that the exercise the commission’s enforcement mechanisms against firms that defy regulations. Some of the companies were fined K500,00 while one has been ordered to pay K10 million.