National Consumer Commission v Lynx Chemicals CC (NCT/158652/2020/73(2)) [2020] ZANCT 10 (3 May 2020)

National Consumer Commission v Lynx Chemicals CC (NCT/158652/2020/73(2)) [2020] ZANCT 10 (3 May 2020)

The Tribunal found that although Lynx Chemicals CC's invoicing practices were suspicious, the National Consumer Commission failed to provide sufficient evidence that Lynx contravened Regulations 5.1.2, 5.2.1 and 5.2.2 of the Disaster Regulations. The NCC did not prove that the price increases were unfair, unreasonable or unjust, nor did it provide evidence that the mark-up applied by Lynx exceeded the average mark-up for the relevant period. The Tribunal noted that the Disaster Regulations only came into effect on 19 March 2020, and the NCC did not establish that the conduct prior to this date was unlawful under the Regulations. Furthermore, the NCC did not call relevant witnesses or...

Citation
[2020] ZANCT 10
Parties
Applicant: National Consumer Commission; Respondent: Lynx Chemicals CC
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
3 May 2020
Case Number
NCT/158652/2020/73(2)
Procedural Posture
Review Application / Judgment
Outcome
The application for a finding of prohibited conduct against the Respondent is refused.
Judges
J Simpson, A Potwana, T Bailey
Legal Topics
Consumer Protection Act, Price Gouging, Disaster Regulations, Prohibited Conduct
Commercial and Corporate Civil Procedure Consumer Protection Act Price Gouging Disaster Regulations Prohibited Conduct

Case Brief

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Parties

National Consumer Commission

Applicant

Lynx Chemicals CC

Respondent

Procedural Posture

Review Application / Judgment

Legal Issues

  1. 1 Whether Lynx Chemicals CC contravened Regulations 5.1.2, 5.2.1 and 5.2.2 of the Disaster Regulations by charging unfair, unreasonable or unjust prices for hand sanitiser during the national disaster period.
  2. 2 Whether the price increases implemented by Lynx Chemicals CC corresponded to increases in the cost of providing the goods.
  3. 3 Whether Lynx Chemicals CC increased its net margin or mark-up above the average margin for the relevant period.

Ratio Decidendi

The Tribunal found that although Lynx Chemicals CC's invoicing practices were suspicious, the National Consumer Commission failed to provide sufficient evidence that Lynx contravened Regulations 5.1.2, 5.2.1 and 5.2.2 of the Disaster Regulations. The NCC did not prove that the price increases were unfair, unreasonable or unjust, nor did it provide evidence that the mark-up applied by Lynx exceeded the average mark-up for the relevant period. The Tribunal noted that the Disaster Regulations only came into effect on 19 March 2020, and the NCC did not establish that the conduct prior to this date was unlawful under the Regulations. Furthermore, the NCC did not call relevant witnesses or...

Court Disposition

The application for a finding of prohibited conduct against the Respondent is refused.

Orders

  • The application for a finding of prohibited conduct against the Respondent is refused.
  • There is no order as to costs.