2 weeks ago
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Unearthing cases of price gouging depends on alert consumers who make complaints to the Consumer Affairs Commission, CAC, the government watchdog.
Amid the approach of Hurricane Melissa, which resulted in an influx of shopping to top up on food and other items to ride out the storm, the CAC encouraged consumers to report abnormal price hikes and to retain their receipts to facilitate investigations.
Last Friday, Prime Minister Dr Andrew Holness issued an order under the Disaster Risk Management Act, declaring the entire country a threatened area due to the potential impact of Hurricane Melissa.
In conjunction with this declaration, an order was issued in accordance with the Trade Act prohibiting retailers from increasing the prices of essential goods – including food, water, medical supplies, personal-care items, building materials, and emergency equipment – for the duration of the declared period.
Violations of this order may attract penalties of up to $1 million upon conviction before a parish court.
The CAC said a similar order to prevent excessive pricing was made during the COVID-19 pandemic.
Price gouging has been defined as the practice of charging excessive prices for basic necessities during a national emergency.
Explaining the difference between a price increase and price gouging, the CAC said a price increase is “a response to market conditions, for example supply chain issues that contribute to increased transportation costs, where it can be proven that these are reasonable and fair”.
In contrast “price gouging occurs when a vendor suddenly raises the price of goods due to a disaster, for example a hurricane”, the agency said.
The commission said it conducts a hardware survey, annually, each June, which it uses as a baseline to assess excessive pricing should there be a natural disaster during the hurricane season.
The commission also conducts monthly grocery surveys using a basket of critical grocery Items.
In July 2024, Jamaica also faced another big storm – Hurricane Beryl, which roared by Jamaica at Category 4 strength. The CAC, an agency of the Ministry of Industry Investment and Commerce, said it received very few complaints of price gouging following the passage of that Category 4 hurricane, which brushed the southern coast of the island.
“The commission investigated all reports but did not find any credible evidence. Further, consumers were not willing to pursue the matter to court,” the CAC told the Financial Gleaner.
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