South Africa: Cartel fine due to high profit margin on ginger

Published 2021년 7월 23일

Tridge summary

The South African Competition Authority has concluded an investigation into Fruit Stop Wonderboom's price increase on raw ginger during the Covid-19 lockdown in 2020, finding that the company overcharged customers, leading to an extra profit of €1.34 per kilogram. As a result, Fruit Stop will donate essential products worth the same amount to a local Safe House organization and will limit ginger profit margins while the state of emergency persists. The company will also develop a compliance program to prevent similar infringements in the future.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The South African Competition Authority has discovered that a branch of Fruit Stop Wonderboom in Pretoria has increased the price of its raw ginger during the Covid-19 lockdown in 2020. Both parties have now reached an agreement, after an investigation showed that Fruit Stop charged its customers too much for ginger between April and June 2020, thereby making an extra €1.34 profit. The agreement includes, among other things, that Fruit Stop will donate essential products, such as fruit and vegetables, worth €1.34 to the Safe House organization in Pretoria for a period of ...

Source: AGF