How Consumers are exploited as a result of Corona Virus

                                      Dreamstime.com 
It is no longer news that Nigeria has recorded its first case of Corona Virus. What is alarming is that not less than a day after the Federal Government confirmed the infectious disease, pharmacies and supermarkets are taking advantage of the situation to exploit consumers.

Prices of hand sanitizers, face mask and infrared thermometer have soared to 150% to 300%. 
Most shocking is the fact that a lot of stores have run out of stock due to the increased demand for hygiene products. Last week Sunday when I visited Prince Ebeano supermarket to purchase a bottle of hand sanitizer, I was informed that it was sold out. In some stores, what used to be sold for N3500 has now increased to N20,000.00. According to Nairametrics, pack of face mask which costs N700 has skyrocketed to N3500. Most big malls have hoarded the personal hygiene products in a bid to exploit panic-ridden consumers.

In order to protect consumers from undue advantage, the Director-General of the Federal Competition and Consumer Protection Council (FCCPC), Dr Babatunde Irukera issued a statement as follows:

“It has come to the attention of the Federal Competition & Consumer Protection Commission (FCCPC) that certain suppliers and retailers are taking undue advantage of citizens and engaging in unconscionable trade practices with respect to basic safety and protective apparel such as face masks and latex gloves, as well as personal hygiene products like sanitisers and anti-bacterial wipes because these products are relevant and necessary in preventing infection or spread of COVID-19 (Coronavirus)”.

Dr Irukera said that "this unusual and inordinate practice of unreasonably increasing the price of these products in an indiscriminate manner on account of the national public health concern (coronavirus) violates both moral codes and the extant law.

He said that abusing citizens' sensitivity, apprehension, anxiety and vulnerability during emergencies that could adversely affect national security is a violation of the law.

The FCCPC specifically noted that Section 17 0f the Federal Competition and Consumer Protection Act prohibits "obnoxious trade practices" or the "unscrupulous exploitation of consumers".

The commission's surveillance efforts have revealed that some otherwise reputable pharmacies and departmental stores are engaging in price gouging and manipulating supplies in a manner that distorts the market, or temporary restricts availability in order to unreasonably or unfairly increase prices.

The Commission stated that "Any conspiracy, combination, agreement or arrangement to unduly limit or manipulate supply in order to unreasonably enhance price or otherwise restrain competition is a criminal offence under section 108(1) (b) and (c) of the Federal Competition and consumer protection Act (FCCPA).

Any exercise or exploitation of undue pressure in selling or the sale of goods or services, or price manipulation between displayed, and selling price are also serious violations of Sections 115(3) and 124(1) of the FCCPA. Taking advantage of the possibility of infection by a dangerous communicable disease to control supply, or unilaterally increase prices is predatory as it preys on the desperation of citizens.

“Considering the circumstances and the vital national interest/security this illegal conduct undermines, the Commission intends to strongly enforce the full letter of the law, including the fullest extent of penalties associated with this conduct.”

The Commission encouraged consumers to be vigilant and 

report such unreasonable or arbitrary exploitative price 

increase to the commission.

Recently, a woman got a refund from Medmark Pharmacy 

in Lagos which sold a hand sanitizer for a ridiculous price 

of N19,950.

You can also report any unconscionable or excessive 

price increase to the FCCPC by telephone on 08056002020 

or 08056003030, or by email at contact@fccpc.gov.ng.

Have you recently experienced any excessive price increase in personal hygiene products? Please feel free to share.

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