When there is a crisis, some panic, some take their fears and frustrations out on others, while others see opportunity.
Financial opportunity.
As you know, the coronavirus COVID-19 is spreading all over the world. Just yesterday, two more cases were confirmed, bringing the total to 77 in Singapore.
And believe it or not, some people are taking advantage of this awful situation.
3 Stars Retailer Continues to Sell Overpriced Masks & Disinfectants ‘Secretly’ Despite Gov’s Intervention
Local retailer 3 Stars was inspected on Monday (Feb 17) after the Ministry of Trade and Industry (MTI) received numerous complaints from members of the public that their outlets have allegedly been profiteering from the sales of masks.
Remember how we wrote about a retailer getting a letter of demand because they were suspected of profiteering? Yup, it’s the same retailer, and it that was about a week ago.
According to The Straits Times, they have failed to provide complete information and did not adjust its prices.
MTI conducted inspections at 3 Stars’ registered business address and warehouse and five of its retail outlets.
Policemen were also there during the inspection, reported Mothership.
But were their masks really overpriced?
$6 for a small number of masks
According to Mothership, the retailer had allegedly been selling a small number of masks from $6 to $14.
For the sake of comparison, a box of 50 surgical masks at Watsons is usually priced at S$12.
So, yes, even Bill Gates would look at that and go hey, that’s expensive.
Conversely, N95 masks cost between S$6.90 and S$8.90 per piece.
Overpriced Disinfectant
But that’s not all. According to Shin Min Daily News, a 3 Stars outlet in Hougang was charging $6.90 for a 60ml bottle of disinfectant.
Now, unless this was a magical spray that also cured depression every time you sniffed it, it’s simply not worth that much.
A female passer-by who saw Shin Min’s reporter purchasing the disinfectant said it usually costs $1 to $2.
Attempt to conceal
According to Mothership, the price tags for the masks had been removed, but there was no change in price. This must have been their attempt to overcharge without being obvious about it. You had to ask the shop assistants for the price, instead.
Amusingly, a “no photography allowed” signboard was also reportedly added to the shopfront recently.
Not exactly the actions of an innocent party, is it?
Failure to Comply
As previously mentioned, the ministry issued a letter of demand to the retailer on 10 Feb to submit explanations and documents on the sale of masks, including cost prices and profit margins.
In this letter, 3 Stars was asked to explain the basis of their selling prices for the sale of masks, including their cost price and profit margins.
Well, I could easily explain the basis of their prices – exploitation.
MTI said that people have continued to complain about the retailer’s prices since then.
“Despite repeated exchanges with 3 Stars, the information furnished remained incomplete and its pricing practices have not changed,” it added.
Due to their noncompliance, the ministry chose to exercise its powers under the Price Control Act to conduct inspections on 3 Stars’ premises.
They added that failure to comply with information required under the Price Control Act is an offence that is liable on conviction to penalties.
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“We urge businesses to exercise corporate social responsibility and not take advantage of the increased demand to raise prices unreasonably.”
If 3 Stars fails to respond, they could be fined up to S$10,000 for the first offence, and S$20,000 for the second and subsequent offences.
Was it really worth it to charge extra for these masks and disinfectants, after all, guys?
Report Errant Sellers
MTI said the government is closely monitoring retail practices and complaints from consumers on profiteering. They will also issue letters of demand to retailers if profiteering is suspected.
So, what can you do?
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Well, if you see a mask and its price tag makes your jaw drop to the floor while your wallet shrinks in fear, you could report the retailer to the Consumers Association of Singapore on 6100-0315 if you suspect profiteering.
And, if you have to buy some masks, don’t go to 3 Stars, of course.
In fact, if you feel well, you shouldn’t mask up. Instead, take the effort to clean your smartphone instead. That’s a smarter move.