Coronavirus: Taskforce to target pandemic profiteers in crackdown
The pandemic has prompted widespread concerns that rogue traders are seeking to rip off the public by charging excessive prices.
Friday 20 March 2020 15:35, UK
A taskforce has been launched to crack down on businesses seeking to exploit the escalating coronavirus emergency.
The move by the competition watchdog comes as the worsening public health crisis threatens to wreak economic havoc.
The growing outbreak of COVID-19 - the disease caused by coronavrius - has prompted widespread concerns that unscrupulous firms are seeking to rip off the public, such as charging excessive prices for goods or making misleading claims about products.
The Competition and Markets Authority (CMA) revealed it has already been in touch with retailers about the hefty amounts being demanded for hand sanitiser.
It has now pledged it will do "whatever is required" to combat rogue traders.
The aim of the taskforce is to:
- Identify harmful sales and pricing practices
- Warn firms suspected of exploiting the "exceptional circumstances" and people's vulnerability
- Take action if there is evidence firms may have broken the law and failed to respond to warnings
- Provide advice on emergency legislation to close loopholes
- Help ensure competition law does not hamper moves to protect public health and essential supplies
The government is already moving to relax the rules to allow the supermarkets to work together to keep shelves stocked, shops open and delivery vans running in the face of the pandemic.
Ministers said the action would allow retailers to share data with each other on stock levels, co-operate to keep shops open, or share distribution depots and delivery vans.
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Andrea Coscelli, the CMA's chief executive, said: "This is obviously a time when we all have to behave responsibly to protect our fellow citizens, and particularly those who are most vulnerable.
"We urge retailers to behave responsibly in the exceptional circumstances of the COVID-19 outbreak.
"But if they do not, our taskforce is monitoring market developments to enable us to intervene as quickly as possible.
"We have a range of options at our disposal, from warnings to enforcement action to seeking emergency powers.
"We hope that such action will not be necessary, but we will do whatever is required to stop a small minority of businesses that may seek to exploit the present situation."