Jhb company agrees to pay R5.9-m settlement under Covid-19 regulations
Matus admitted that it increased its gross profit margins for dust face masks in February and March 2020
A Johannesburg company accused of excessively pricing face masks, had agreed to pay a R5.9 million settlement.
According to a statement issued by the Competition Tribunal of SA, Matus, a nationwide supplier of tools, power tools and personal protective gear, has agreed to pay a R5.9 million settlement and to donate to the Solidarity Fund, after being accused by the Competition Commission of charging excessive prices for dust face masks.
In a consent agreement with the Commission, Matus admitted that it increased its gross profit margins for dust face masks in February and March 2020. However, it did not admit that it contravened any law.
The agreement states: “Matus is entering into this Consent Agreement in order to avoid protracted litigation and nothing in this Consent Agreement should be construed as an admission of liability for a contravention of the Consumer Protection Regulations or section 8(1)(a) of the [Competition] Act read together with Regulation 4 of the Consumer Protection Regulations.”
In terms of the agreement, Matus will, among others:
• Pay a settlement amount totalling R5 949 542;
• Make a contribution to the Solidarity Fund for Covid-19;
• Reduce its gross profit margin on FFP2 dust face masks with immediate effect for the duration of the state of national disaster;
• Ensure that the gross profit margins on essential products it distributes, are not higher than the amount applicable on February 16, 2020; and
• Develop, implement and monitor a competition law compliance programme.
The commission said it obtained it obtained information against Matus in relation to inflated prices of dust face masks (FFP1 and FFP2 masks) it was charging its customers in March. The masks fall under the category of medical and hygiene supplies in the Consumer Protection Regulations.
The Commission investigated and said it found that Matus’ increase in the gross profit margins of dust masks in March 2020 was a contravention of section 8(1)(a) of the Competition Act, read together with Regulation 4 of the Consumer Protection Regulations.
Matus admitted it had increased its gross profit margins for dust face masks but did not admit that it contravened any law.
