The Competition and Consumer Authority (CCA) has launched investigations into businesses suspected of unjustifiably raising prices following the recent devaluation of the Botswana Pula.
In a statement issued this week, the Authority expressed “grave concern” over reports that some suppliers have used the currency adjustment as a pretext to increase prices, including on products purchased before the devaluation took effect.
โThe CCA is empowered by law to investigate any perceived unfair or misleading pricing,โ the Authority said. โAlready, we are on the ground conducting inspections and investigations. We have found that some suppliers are displaying disclaimers stating they will charge consumers more than the price shown on shelves.โ
According to the Authority, this practice violates Section 11 (3) of the Consumer Protection Act of 2018, which prohibits charging more than the displayed price.
โThis is a clear exploitation of consumers under the guise of exchange rate adjustments,โ the Authority said. โBusinesses are urged to refrain from such conduct.โ
While businesses in a market economy are free to determine their pricing, the Authority warned that any attempt to mislead or exploit consumers would not be tolerated. It noted that price hikes on old stock, not affected by the devaluation, could constitute unethical behavior and potential violations of consumer law.
โExploitative pricing based on misinformation erodes consumer welfare and is subject to penalties,โ the statement read.
The CCA encouraged consumers to remain vigilant and report suspected irregularities, adding that penalties will be imposed on businesses found guilty of anti-competitive or unfair practices.
The recent devaluation of the Pula was introduced as part of macroeconomic reforms aimed at improving Botswanaโs global competitiveness. However, the adjustment has triggered public concern over sudden price increases across sectors, including groceries and clothing.
