Effective March 31, retailers found to be

charging customers exorbitant prices for goods during the novel coronavirus

(COVID-19) outbreak can be fined up to $2 million for this breach.

This is stipulated in the Trade (Sale of Goods

During Period of Declaration of Disaster Area) Order 2020, which was approved

in the House of Representatives on Wednesday (March 25).

State Minister for Industry, Commerce,

Agriculture and Fisheries, Hon. Floyd Green, who introduced the Order in the

House, said this measure is being undertaken to stamp out recent cases of price

gouging stemming from the COVID-19 crisis.

He said the Government has moved to decisively

deal with the matter, following investigations conducted by the Consumer Affairs

Commission (CAC), after receiving a number of complaints from consumers that

they were “seeing unexplained and unconscionable rises in prices” across

Jamaica.

“Between the 9th and 13th day of March, the CAC visited 43 outlets, looking especially at sanitisation products, for which we were getting a myriad of complaints. The CAC visited outlets in Kingston, St. Andrew, St. Elizabeth, St. Ann, Manchester and St. Mary. What we found is that there was, in fact, unexplained rises in prices across a number of these items,” Mr Green informed.

He noted that on average, it was found that there

was a 14 per cent rise in prices for hand sanitisers and as much as an 85 per

cent increase in aerosol disinfectant sprays.

“In one case, we got a report out of St. Ann

where the aerosol spray that was normally sold for $850 in retail was being

sold for $1,641,” he said.

Under the Order, no person whose business

includes the retail sale of goods shall sell any necessary goods to another

person at a price higher than the price charged immediately before the coming

into force of the Disaster Risk

Management (Declaration of Disaster Area) Order, 2020, on March 18.

This refers to any item used or intended

for use as food or drink; personal care items such as soap, cleaning products,

antibacterial products, toiletries, alcohol, hand sanitisers, bleach, gloves;

and medical supplies, including surgical masks and prescription and non-prescription

medication.

“These [goods] would have already been

priced with profit margins in those prices and, as such, for the Disaster Area

Order time period, we are saying the retailer will have to maintain those

prices,” the State Minister said.

Mr. Green informed that under the Order,

the CAC has been authorised, on behalf of the Industry Minister, to demand that

books, accounts and other documents relating to the business be provided so

that claims of price gouging can be investigated.

The State Minister encouraged citizens to report cases of price gouging to the CAC, noting that if they have made a purchase to also send in the receipt so that the investigation process can be activated.

“The CAC already has a robust investigation

process and they are ready to act… but we will need the cooperation of citizens

to make those reports,” he added.

Mr. Green also urged retailers

to desist from hiking prices, appealing to them to help to protect consumers,

especially the most vulnerable, “who suffer most when these prices are raised

to unconscionable levels”.

 “Charging

exorbitant prices because of fear is not the right thing to do, and as such, I

am appealing to the retailers, even before the CAC acts, to use their good

conscience and to maintain the prices that they had,” he said.