CAK Orders Cleanshelf Supermarket to Refund Customers for Selling Sanitizers at Inflated Prices

The Competition Authority of Kenya (CAK) has ordered Cleanshelf supermarket, a local Supermarket, to refund all customers who bought hand sanitizers from one of its outlets for a price higher than the normal price.

According to CAK, the supermarket was taking advantage of coronavirus (COVID-19) to overpriced hand sanitizers, stating that the supermarket hiked the price of the particular hand sanitizers from Ksh 800 to as high as Ksh 1000 within hours.

On Monday, the management of Cleanshelf Supermarket was ordered to trace and refund customers’ money before March 26 or face unspecified consequences.

CAK described this as an exploitation of consumers whose bargaining position had been diminished following the outbreak of Covid-19.

“The retailer, therefore, exploited its relative strength as a retailer to commercially detriment consumers whose bargaining position has been diminished following the pronouncement of the existence of COVID-19 in Kenya,” reads a letter from the Authority ordering the supermarket to “…contact and refund all the consumers who purchased the 960 pieces of the Tropikal brand hand sanitizers above the usual selling price and submit evidence to support the same before March 26.”

This was in the face of CAK having earlier issued a warning to the business community against exploiting consumers citing the outbreak of coronavirus.

In its defense, the retailer said that the hike was effected by one of their employees without approval by the management.  The retailer also promised to refund the customers affected by the erroneous increase.

In a statement, Cleanshelf said that it had already punished the employee linked to the malpractice.

“It has come to our attention that one of our staff members without consultation and irresponsibly severally adjusted the price of Tropical Hand Sanitizer in our Ruaka Branch.”