The Competition and Markets Authority (CMA) has launched a taskforce to tackle unscrupulous business practices, such as charging excessive prices or making misleading claims about products, during the coronavirus outbreak.
Earlier this month, the CMA urged retailers to behave responsibly and said that it would consider any evidence that companies may have broken competition or consumer protection law. The move came amid reports that some traders and online platforms were selling items such as hand sanitiser, paracetamol, and toilet roll at inflated prices, or making misleading claims about the efficacy of protective equipment.
With the public health emergency worsening and its impact on the economy becoming more serious, the CMA has now created a special taskforce. This will work to identify harmful sales and pricing practices as they emerge and warn firms suspected of exploiting these exceptional circumstances. The regulator revealed that it has already contacted firms regarding excessive pricing of hand sanitiser.
The CMA stressed it take enforcement action if businesses fail to respond to warnings. It will also be ready to advise the government on emergency legislation if there are negative impacts for people which cannot be addressed through existing powers.
Andrew Tyrie, the CMA’s chairman, said: “The intervention in the economy necessitated by public health policy may have a substantial impact on competition, with the risk of an increase in consumer detriment. That’s why this taskforce is needed.”
Andrea Coscelli, the CMA’s Chief Executive, added: “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.”
NAM Implications:
- As always, this initiative depends upon evidence…
- …for effectiveness and to maintain credibility.
- i.e. over to you…
