08 Oct 2020

Competition and Consumer Authority (CCA) says there is likelihood of consumers being exploited due to the absence of Price Control Act to regulate prices of certain goods.

Speaking during the Parliament Committee on Governance meeting on October 7, CCA Chief Executive Officer, Ms Tebelelo Pule said they had witnessed price increase of goods during COVID-19 lockdowns.

Ms Pule indicated that often consumers had to deal with exorbitant prices, inferior and  unsafe products, especially that most could not make informed choices. 

She explained that the Price control Act was abolished, and a free economy was introduced.

Ms Pule called upon consumers to educate themselves and make informed decisions on the goods.

She cited as an example, a market study conducted by CAA that revealed that the price of chicken was high in the region.

She highlighted that the small traders sell per unit, whereas big traders sell per kilogram, saying that selling per kg brought more returns than the whole unit.

She however said some prices were controlled such as that of petroleum.

Ms Pule said the Price Control Act was important for curbing  prices inflation.

Meanwhile Members of Parliament called on the authority to monitor pricing of goods as some dealers overcharged clients.

Mr Onneetse Ramogapi of Palapye complained that some of the traders had monopoly power to exploit consumers, charging excessive prices.

He called for setting of price ceilings as a way of bringing prices closer to a fair and competitive equilibrium.

MP Ramogapi further questioned the business model used for giving one retail store to assist in the payment of old age pensioners.

He said that limited pensioners choices, adding that traditional general dealers were now defunct because of that move.

Sharing the same sentiments, Ghanzi North, MP John Thiite also decried unfair practices on franchise.

MP Thiite requested the authority to stop dominant firms from monopolizing the markets hence exploiting Batswana.

He called for citizen empowerment to stimulate the economy. ends