A statement by the Board of Commissioners of the Competition and Fair Trading Commission (CFTC) has revealed that the commission has fined 8 pharmacy shops with a total of K9,250,000 for excessive charging on coronavirus related items.
The above follows after CFTC announced in April that (CFTC) it will implement a strict monitoring of price controls and punish anyone found increasing prices at the expense of Malawians, amidst the coronavirus pandemic.
Almost 2 months later, the commission held the Extraordinary Board Meeting in Lilongwe on 24th April 2020, to to deliberate on cases of alleged unfair trading practices in relation to the supply of essential protective and preventive equipment.
The fines charged are as follows, as confirmed and signed by the CFTC Executive Director James Kaphale;
1.Maula Pharmacy fined K2 million for excessive charge on N95 face masks
Following an inspection conducted on 21st March 2020 by the CFTC Secretariat showed that Maula Pharmacy Ltd in Lilongwe were charging MK3,500 for N95 face masks whose benchmark price was around MK750 representing an estimated margin of 367%. The Commission therefore imposed a fine of MK2 million to Maula Pharmacy Ltd.
2.MaxiCare Pharmacy fined K2 million for overpricing hand sanitisers
Part of the statement reads, “The Commission imposed a fine of K2 million fine to MaxiCare Pharmacy for excessively pricing 400ml Romeo hand sanitisers and also made an order to issue a warning to the respondent for failure to furnish the Commission with information as required.” However, the respondent neither formally responded nor reduced their prices.
3.Excel Pharmacy fined K2 million for excessively pricing N95 face masks and Gloves
CFTC conducted an inspection which revealed that the above pharmacy was charging MK3,000 for N95 Face Masks whose benchmark price was around MK750 representing an estimated margin of 367%. “The trader neither formally responded to the interim cease and desist order nor reduced their prices, as confirmed during a follow up inspection conducted on 21st April 2020.” says the statement.
4.City Pharmacy fined K750 000 for excessively pricing hand sanitisers
According to the statement, the Commission resolved to impose a fine of MK750,000 to the above, for excessively pricing 400ml Romeo hand sanitisers and also made an order to issue a warning to the respondent for failure to furnish the Commission with information as required.
5.Pharmaworld Pharmacy fined K750 000 for excessively pricing gloves
Part of the statement reads, “The Commission imposed a fine of MK750,000 to the Respondent for excessively pricing gloves.”. Figures showed that Pharmaworld Pharmacy were charging MK120 for gloves against a benchmark price of MK46, representing an estimated margin of 160%.
6.Pharmalife Pharmacy fined K750 000 for excessively pricing hand sanitisers, N95 face masks and Gloves
The Commission imposed a fine of MK750,000 to Pharmalife for excessively pricing 400 ml Romeo hand sanitisers, gloves and facemasks.
7.Lifestyle Pharmacy fined K500 000 for excessive pricing hand sanitisers
“An inspection conducted on 21st March 2020 by the CFTC Secretariat showed that Lifestyle Pharmacy in Lilongwe were charging MK10,000 for 400 ml Romeo hand sanitisers whose benchmark price was around MK5,000; representing a 100% margin.” reveals the statement. The trader neither formally responded to the interim cease and desist order nor reduced their prices, as confirmed during a follow up inspection conducted on 20th April 2020.
8.CNC Health fined K500 000 for excessive pricing on gloves
The Commission imposed a fine of MK500,000 to CNC Health for excessive pricing in the supply of 400ml Romeo hand sanitisers, gloves and facemasks and also made an order to issue a warning to the respondent for failure to furnish the Commission with information as required.
