Dis-Chem says it charged less than its competitors for face masks

JOHANNESBURG – Dis-Chem shares fell more than 4percent yesterday as the pharmaceutical retailer moved to defend its prices for surgical face masks, telling the Competition Tribunal that the alleged price hikes by several of its outlets were below those of its competitors.

Dis-Chem said there was no prima facie case of price inflation, and it increased the prices only in response to higher demand and supply constraints amid the global scramble for masks. The company said the prices took into account the prices of its competitors.

Dis-Chem’s legal representative advocate, Michelle le Roux, told the hearing that regulatory intervention was not necessary, as the group had reduced prices twice after managing to secure stock. “The pandemic is ongoing. South Africa is yet to reach its peak. Lockdown is easing, yet Dis-Chem has already dropped its prices twice,” Le Roux said.

Le Roux said the commission had failed to prove market dominance by Dis-Chem and detriment to customers.

“What you see here is Dis-Chem checking consciously what competitors are doing and pricing below them, and in terms of customers, you see Dis-Chem losing volumes,” she said, adding that Dis-Chem would no longer sell the face masks if it were found guilty of charging excessive prices.