The KwaZulu-Natal Department of Economic Development, Tourism and Environmental Affairs has begun negotiations with Spar KZN management, with the view of terminating the contracts of franchise owners who are involved in price hiking.
In a statement, MEC Nomsa Dube-Ncube said the termination of contracts for the management and control of Spar shops will strengthen the department’s zero-tolerance policy towards price gougers, who are using the Coronavirus outbreak to sell much-needed food and other products at inflated prices.
“We are aware as the department that there are currently over 900 independently owned SPAR stores in the country, with hundreds located throughout the corners of KwaZulu-Natal,” said Dube-Ncube.
She acknowledged the fact that the holding company has strict regulations that are aimed at ensuring Spar’s positive brand image.
“It is for these reasons that we welcome the decisive action by the leadership of Spar in KwaZulu-Natal. The willingness to terminate the contracts of the management and control of Spar by franchise owners is a clear demonstration of patriotism. Undoubtedly, history will judge them positively,” she said.
She encouraged the group to continuously demonstrate that they put the interests of ordinary members of society on top of the agenda.
“We are calling upon other retailers to follow this example,” she said.
Stats released by Stats SA last year indicated that consumers spent R31 900 per second in retail stores. In addition, South Africa’s retail trade industry contributed to R1 trillion in sales to the local economy.
Regarding price hiking in various retail shops in KwaZulu-Natal, the dDepartment assured the public that senior officials from Consumer Protection Services are currently processing hundreds of complaints.
“We have an enduring partnership with the South African Police Service, the National Consumer Commission, the National Competition Authority and the Consumer Goods Council of South Africa,” she said.
The department has received thousands of messages from consumers welcoming the arrest of the owner of Longbery Meat Market in Phoenix. He was arrested for contravening the Consumer Protection Act Regulations and the Disaster Management Act Regulations. If found guilty, the owner will pay a R1000 000 fine or up to 10% of his business’s annual turnover. In addition, there is a possibility of imprisonment for a period not exceeding 12 months. – SAnews.gov.za
