The competition watchdog is to investigate suspected profiteering by four pharmacies and convenience stores for over-charging shoppers for hand sanitiser during the coronavirus pandemic.
Stocks of hand sanitiser were among the first items the British public cleared off the shelves as the coronavirus pandemic took hold in the UK. The Competition and Markets Authority, which announced the investigations, has previously identified hand sanitiser as the product suffering the biggest price hike.
“The investigations relate to suspected charging of excessive and unfair prices for hand sanitiser products during the coronavirus pandemic,” the CMA said.
“This investigation is at an early stage and no assumptions should be made that competition law has been infringed. The CMA has not reached a view on whether there is sufficient evidence of an infringement of competition law for it to issue a statement of objections to any of the parties under investigation.”
The CMA did not name the companies involved.
Last month, Marks & Spencer was accused of exploiting the Covid-19 pandemic by selling bottles of hand sanitiser for twice as much as equivalents elsewhere. The supermarket chain advertised 500ml bottles in stores for £11.50, after initially accidentally pricing them at £15. Another brand’s bottle of the same amount of hand sanitiser was available at Boots for £4.15.
The CMA taskforce on coronavirus-related issues said it has been contacted more than 60,000 times between 10 March and 17 May.
In April, the CMA sent advisory or warning letters to 187 firms after receiving 2,500 complaints about large price rises on food and personal hygiene products such as hand sanitiser. As of 21 May that number had reached 7,000.
The largest price increases complained about related to hand sanitiser, with a reported median rise of 367%. The CMA wrote to trade bodies representing convenience stores as well as online trading sites Amazon and eBay in its attempt to tackle price rises.
The CMA said that since mid-April, the biggest source of complaints had been about cancellations and refunds relating to holidays, with consumers dissatisfied with their treatment by some airlines and travel companies. In May, cancellations accounted for three-quarters of all complaints to the CMA, with nearly 20,000 by 21 May.
