Government cracks down on retailers overpricing anti-SARS products

The Department of Trade and Industry (DTI) has charged four retail outlets in Manila for selling overpriced anti-severe acute respiratory syndrome (SARS) products and violation of the Price Tag Law.

Trade Secretary Manuel Roxas II, during a spot inspection of medical supply shops in Sta. Cruz, Manila, discovered that several retailers were selling protective masks way above the suggested retail price indicated by manufacturers.

"Those found guilty of violating the Price Act due to overpricing will be charged and its owners may fined or have their business license cancelled," Roxas said.

Roxas cited the case of Medtrade Medical Supplies along Rizal Avenue, which was found selling the N-95 type mask manufactured by 3M at P400 apiece, although the prevailing price is only P75 each.

Several other stores, such as R. Medina Enterprises were also found selling other types of masks at much higher prices though the store manager reported that these products were procured from their distributors at a much higher price.

"We will backtrack and determine where in the supply chain the unnecessary increase in prices was made and we will charge those responsible," Roxas added.

Charged for violation of the Price Tag Law were Bambang Medical Supplies, Ghemmex Enterprises and R. Medina Enterprises.

Roxas also visited a leading drug store chain in the area and was assured by management that prices of vitamins, particularly Vitamin C have not increased and that supply is stable. A surge in the demand for such products, however, was noted.

The four violators are to report to the DTI to explain why their prices were way beyond those dictated by manufacturers and why their prices were not prominently displayed to consumers.

Supply and prices of other anti-SARS products, such as rubbing alcohol, alcogel and other sanitizing commodities, Roxas noted, remain stable.

3M earlier stressed that despite the sudden surge in demand for N-95 masks, if has not jacked up prices and ordered its authorized distributors not to resort to overpricing or face severe sanctions.

"Again we urge the public to be vigilant and report to us retailers taking advantage of the SARS scare through profiteering and hoarding, and we will immediately act on it if only to protect the interests of consumers. They can call our hotline at 876-5740," Roxas said.