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News
Arlene Martin-wilkins, Observer staff reporter  
September 21, 2004

CAC to begin prosecuting price gougers

THE Consumer Affairs Commission (CAC) yesterday said it will, in the coming weeks, begin prosecuting merchants who have hiked the prices of goods and are taking advantage of consumers who are struggling to cope with the damage left by Hurricane Ivan.

To date, there have been 40 complaints, mostly from rural areas. There have been reports of candles being sold for as much as $80 per stick and the price of kerosene tripling.

“Most of the complaints are coming out of the rural areas where electricity is yet to be restored,” explained CAC director of research, information and communication, Raymond Pryce.

“The complaints we have are for products such as candles, batteries, kerosene oil, calling cards, and general grocery items like party ice, sardines and bread, on which the prices are much higher post-Ivan,” Pryce added.

Yesterday, the Ministry of Commerce, Science and Technology – the parent body of the CAC – warned that it may be forced to use legislative powers under the Emergency Powers Act and Trade Act to fix the prices on some of the problem goods.

The Jamaica Chamber of Commerce (JCC) has endorsed the efforts to stop price gouging but has warned against any attempt at price control.

“Price controls are not the answer in a market economy and must be strongly opposed,” said JCC president Michael Ammar Jr. “What is needed is for the consuming public to punish these establishments involved in price gouging, by moving their patronage to the vast majority of outlets and suppliers not involved in these practices.”

Yesterday, the CAC began publishing price-monitoring guides, showing pre-Ivan and post-Ivan prices to guard consumers against the unfair increases.

“We are not invoking them now as we are going to monitor the situation for another week or so,” the Phillip Paulwell-led ministry added.

Checks with the larger food stores in the corporate area showed that some – including SuperPlus, Tropical Family Food Store and Brooklyn – had kept pre-Ivan prices.

But smaller merchants have been a problem. According to Pryce, the CAC team was in the process of investigating some vendors – including a few dried saltfish vendors in Buff Bay and Port Antonio who were selling the commodity for almost 50 per cent more than the price at which it was being sold in other areas.

“We have contacted those persons and are now in the process of doing some checks,” he added.

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