Competition watchdog seeks emergency powers to tackle coronavirus profiteering
The UK’s competition watchdog has told the government it needs emergency powers to crack down on firms profiteering from the coronavirus crisis.
The Competition and Markets Authority (CMA) said it needs emergency time-limited legislation to tackle companies that have increased prices for high demand products such as hand sanitiser during the pandemic.
CMA chief executive Andrea Coscelli has advised the Department for Business, Energy and Industry Strategy that the watchdog requires temporary new laws to clamp down on profiteering.
“Consumer and competition law are not really designed for emergencies,” said Coscelli, the Financial Times reported.
“Part of our role is to use everything we have but if there are gaps, to explain to the government what those gaps are. Ultimately though it’s for the government and parliament to decide.”
The Prime Minister said in March that new laws were required to tackle the rise in profiteering during the coronavirus crisis, and business secretary Alok Sharma has met with Amazon and Ebay to discuss the issue.
The e-commerce giants have both been urged to clamp down on price gouging on their sites.
Between March 12 and April 19, the CMA received 21,000 complaints related to coronavirus, with an average reported price hike of 130 per cent.