The companies have agreed to pay R1.7 million for charging excessive prices in breach of the coronavirus (Covid-19) regulations.
“Sicuro Safety CC (Sicuro) and Hennox 638 CC t/a Hennox Supplies (Hennox) admitted that they increased their gross profit margins for FFP 1 [filtering face piece 1] face masks during March 2020 in contravention of section 8(1)(a) of the Act, read together with regulation 4 of the consumer protection regulations, the commission said in a statement on Saturday.
On Tuesday, May 12, the commission charged Sicuro and Hennox with excessive pricing to the detriment of customers and consumers. In terms of the settlement, Sicuro and Hennox would pay an administrative penalty of R1.5 million.
Furthermore, the companies had undertaken to pay a contribution R200,000 to the Solidarity Fund. The companies had also agreed to immediately desist from the excessive pricing conduct; reduce their gross profit margin on FFP 1 face masks to a mutual acceptable maximum for the duration of the state of the national disaster; and ensure that their gross profit margin for FFP 2 and FFP 3 face masks would not exceed a mutually accepted maximum for the duration of the state of the national disaster.
They would further develop, implement, and monitor a competition law compliance programme incorporating corporate governance designed to ensure that employees, management, directors, and agents did not engage in future contraventions of the Act. The competition law compliance programme would be developed in conjunction with a staff member of the commission. In particular, the compliance programme would include a mechanism for monitoring and detecting any contravention of the Act.
The companies would also submit a compliance programme to the commission within 60 business days of the date of confirmation of the settlement agreement as an order by the tribunal or such longer period as may be agreed with the commission depending on the duration of any lockdown imposed in terms of the legislation and directions.
In addition, they would circulate a statement summarising the content of the settlement agreement to all management and operational staff employed at Sicuro and Hennox within 14 calendar days from the date of confirmation of the order.
The settlement followed the commission’s investigation which found that the two firms’ prices for the (FFP 1) mask increased astronomically by more than 969 percent and 956 percent, as charged by Sicuro and Hennox, respectively, the commission said.
African News Agency
