The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

and NEIL HARTNELL

Tribune Business Editor

Super Value’s owner yesterday demanded “serious penalties” for businesses caught ‘price gouging’, although the Chamber’s chief executive said this was “not a major concern” with most companies.

Rupert Roberts, speaking after the Government warned that ‘price gouging’ was a criminal offense, told Tribune Business: “There should be serious penalties for that kind of thing. No one should be seeking to take advantage of the public in the time of a crisis.”

However, Edison Sumner, the Bahamas Chamber of Commerce and Employers Confederation’s (BCCEC) chief executive, said the practice was not widespread among Bahamian companies.

Confirming that the Chamber had put out its own general statement and advisory on the issue, he added: “In the last two major hurricanes, we had complaints coming in to us of businesses inflating the prices on certain products coming into the storm.

“We are just generally concerned, and put out a general statement warning businesses, especially those in the retail sector, not to get caught up in price gouging at a time when businesses and persons need access to essential items going into a hurricane.

“It’s illegal and it’s immoral. We will be monitoring this as well along with the Consumer Protection Commission to ensure that consumers are not taken advantage in their time of need.”

The Government has itself warned that ‘price gouging’, and similar schemes to spike prices ahead of hurricanes such as Irma, are considered “criminal offenses”. It also warned retailers and wholesalers against “hoarding” items for “speculation” or “profiteering” and marking up.

Prime Minister Dr Hubert Minnis has instructed the Price Control Commission to monitor the prices being charged for items such as breadbasket food items, medical and prescription drug supplies, and hurricane preparedness items such as plywood and nails

While some businesses treated the Government’s warning as ‘par for the course’ when hurricanes threaten, others felt it stigmatised merchants as ‘price gougers’ and placed unfair suspicions in consumers’ minds, treating them as guilty until proven innocent.

“I was kind of pissed,” one retailer/wholesaler, speaking on condition of anonymity, said of the Government’s warning. “I’m sure the little ones, the ‘Mom and Pop’ stores, do pride gouge because they do not have computer support systems. But to give the public the impression the merchants are gouging only creates a bunch of suspicious people.”

Mr Sumner, though, told Tribune Business that honest businesses had nothing to fear from the Government’s warnings.

“Most businesses don’t engage in price gouging,” he said. “We have a few who take advantage of the situation, and we want to caution them that it’s bad practice and illegal.

“Those merchants operating properly, and operating in a very ethical way, need not worry about price gouging and the public perception of price gouging. If you’re not doing it, you have nothing to worry about.”

The Chamber chief executive continued: “Most merchants operating legitimately, ethically and morally have no concerns about price gouging.

“It’s not a major concern, but there area few companies who do take advantage of situations. We want to say to them: Cease and desist, and don’t take advantage of persons. No business should be inflating prices coming into a major disaster such as hurricanes.”