Caprichem to pay R600 000 in a settlement
The Competition Commission of South Africa has announced that it welcomes the decision of the Competition Tribunal that confirms the settlement agreement between the Commission and Cape Town-based company - Caprichem.
Caprichem - a chemical company has been reported to the Competition Tribunal for excessive pricing of its hand sanitiser during the Covid-19 pandemic.
In its previous statement, the Competition Commission said that the investigation has found that Caprichem has doubled the price of its five-litre bottle of sanitiser. According to the South African Competition Commission, this was "to the detriment of customers and consumers in contravention of the Competition Act read with regulation 4 of the consumer protection regulations".
Following the investigation Caprichem has agreed to a settlement in the form od paying a settlement amount, comprising of an administrative penalty and contribution to the Solidarity Fund which in total has rounded up to R600 000. Furthermore, Caprichem has also agreed to reduce its gross profit margin on five-litre hand sanitisers for the duration of the state of the national disaster caused by the Covid-19.
After this issue, The Commission has encouraged firms to reach settlements to speed up the processing of excessive pricing cases.