(Nicole Reis/meadowlakeNOW Staff)

By Nicole Reis

the price you pay

COVID-19 prompts cost hikes for supplies but not necessarily price gouging

Apr 14, 2020 | 5:01 PM

In the current COVID-19 economic climate, there can be a difference between what would be considered price gouging versus the market forces that can dictate the cost of important supplies.

MeadowlakeNOW learned Your Dollar Store and More was charging what appeared to be an exorbitant price of $60 for a pack of 50 3-ply hospital grade face masks, but the owner claims that’s not the case.

Store manager, Kushal Parikh, said he is selling medical grade face masks below his own cost price to serve the community. His original plan was to donate them to the local hospital ,however according to Parikh, the hospital required permission to receive donated items and did not respond to more than four calls to have them donated.

“N95 masks are cheaper than surgical masks, a pack of 15 would be about $20,” Parikh said. “I also sell a basic dust mask at $15 for a pack of 50. [The masks in question] are surgical masks hospital’s use and I’m selling them for $60, below my cost of $63.”

Meanwhile on Monday, the province announced the prohibition on price gouging does not prevent businesses from reasonably raising prices, for instance, to cover increased costs of acquiring inventory. However, businesses that impose grossly excessive price increases on consumer goods or services during periods of crisis may be found guilty of committing an unfair practice.

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Parikh was forthcoming with his supplier’s invoice which stated his cost for purchase of unbranded face masks was $60 for the cost per unit and $3 for freight costs when purchased on March 19.

“I negotiated with my supplier to lower their price as they were intended to be a donation, but it was my ethic to sell them at cost [after hospital declined] and I absorbed the freight charges so I could do something for the community,” he said.

The store manager added the difference between the face masks he is selling and an ordinary dust mask is that the 3-ply version is used in hospitals while the ordinary masks do not prevent bacteria.

According to Canadian Safety Supplies website, 50 ear loop face masks cost $59.95 and are back ordered. Amazon is offering 50 disposable face masks for sale as high as $159.86. Parikh said his supplier is also supplying the same masks to hospitals in Toronto.

Consumers who observe price gouging either in advertisements or before, during, or after a transaction are encouraged to do one or more of the following:

1. Call Financial and Consumer Affairs Authority’s (FCAA) consumer protection tip hotline at 1-877-880-5550 to provide information.
2. File a tip through FCAA’s website at https://fcaa.gov.sk.ca/consumers-investors-pension-plan-members/consumers/consumers-of-goods-and-services/combatting-grossly-excessive-prices.
3. File a formal complaint using the FCAA complaint portal at https://fcaa.saskatchewan.ca/apex/f?p=200:RUN:0::::PRUN_PROC_ID:12589&cs=17E037060D51B5ACC686E7CC6BF0E21D6
4. If possible, register a complaint with the supplier.

Consumers can also register an on-line complaint with the Better Business Bureau (BBB) at https://www.bbb.org/consumer-complaints/.

Consumers should keep all receipts, contracts and advertisements that help demonstrate that price gouging is occurring or has occurred during the period of crisis or emergency.

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nicole.reis@jpbg.ca

Twitter: @nicolereis7722