Government will take action against retailers who practice price gouging under the Essential Goods and Services Law

The government it will take action against retailers who raise prices indiscriminately for items such as hand sanitiser, face masks, medicine, and other essential goods, an official from the Ministry of Commerce says.

A directive addressing the matter will be issued by the ministry, the official said on Monday.

A senior official from the Consumer Affairs Department also confirmed that retailers who practise price gouging could face action under the Essential Goods and Services Law.

The Myanmar Times has learned that the ministry is currently discussing whether to impose price controls for items related to combating the coronavirus outbreak, certain medicines, and food.

Currently, the prices for protective masks and hand sanitiser have risen drastically and people have been complaining about the lack of action by the government to address the problem.

The Consumer Affairs Department says that is has also received many complaints.

“We need specific directives from the government to deal with reports of price gouging and we are currently speaking with the relevant authorities and organisations. Arrangements are being made to announce a directive under the Essential Goods and Services Law and it will be made public soon,” the official with the Consumer Affairs Department said. 

The announcement is expected to list masks and hand sanitiser as essential goods and will prohibit the sale of essential medicines and food at higher prices, and also list the punishments for violating the directive, a spokesperson for the Consumer Affairs Department said.

“It is appropriate for a retailer to buy at K100 and sell at K120, for example. But if they sell that product at K200, that is taking inappropriate profit. We will take action against such retailers. Consumers should avoid buying highly priced goods as well but if you have no option but to buy, please request a receipt and report the matter to us so we can take action,” the spokesperson said.

According to of the Ministry of Commerce, violations of the Essential Goods and Services Law can be punished with imprisonment of six months to three years or a fine of K500,000.

“When consumers go panic buying and stockpile certain goods, prices also tend to increase as there is an imbalance in supply and demand. I urge people to not buy more than they need,” the spokesperson added. – Translated

(The Myanmar Times: https://www.mmtimes.com/news/price-gouging-retailers-face-action-officials.html )

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