Crackdown on price gouging for products and deliveries during lockdown

Yang Jian
Authorities are cracking down on price gouging for group buying and delivery services, which have become a lifeline for people during the lockdown.
Yang Jian
Crackdown on price gouging for products and deliveries during lockdown
Imaginechina

Community volunteers sort online group-buying products for residents in a local locked-down community.

Shanghai authorities are cracking down on price gouging for group buying and delivery services, which have become a lifeline for people during the lockdown and other COVID-19 control measures.

The city's market watchdog has punished 192 people guilty of price gouging and cheating, primarily related to selling vegetables, since the virus began resurging in March, said Peng Wenhao, deputy director of the Shanghai Administration for Market Regulation.

More than 30 price-violation cases have been publicized. Two outlets of supermarket chain Century Hualian, for instance, have been fined for charging high delivery fees for online orders. Chain restaurant Jindawan, in another case, raised its delivery fee to as much as 100 yuan (US$15.71) from eight yuan per order. Another supermarket was fined by falsely claiming its vegetables were part of "supplies to Hong Kong."

"The administration will continue focusing on pricing issues for daily necessities and pandemic-prevention supplies," Peng said at the city's daily COVID-19 press briefing on Wednesday.

The watchdog will ask e-commerce platforms to oversee their online business operators, while cooperating with local subdistricts and towns to supervise group buying.

A joint campaign against price violations for delivery and pickup fees has been implemented by the administration, the city's commerce commission, postal administration and reform and development commission.

Crackdown on price gouging for products and deliveries during lockdown
Imaginechina

The city's market watchdog has punished 192 people guilty of price gouging and cheating, primarily related to selling vegetables, since the virus began resurging in March.

People are encouraged to leave tips via the 12315 hotline or 12345 social network. More than 40 online complaints for issues such as "high-priced potatoes," "99-yuan steam buns" and "78-yuan Chinese cabbage" have been acted on within 24 hours of being posted, Peng said.

Community group buying has become a major way to guarantee the delivery of daily supplies during the city's lockdown, and has helped address difficulties in purchasing vegetables and daily commodities, according to Peng.

"The market watchdog supports legally conducted community group buying," Peng added.

When taking part in group buying, people are reminded to make sure product information is fully displayed, organizers have provided remedies for missed or incorrect deliveries and contacts are listed.

Consumers should also keep group buying and chat records, which can serve as evidence if necessary, she said.

The administration has released a guideline to regulate prices for community group buying. Organizers and business operators have been asked to offer reasonable prices, clearly publicize prices and product information and offer after-sales services.

More than 30,000 law-enforcement officers have been dispatched to supervise pricing issues as of Monday, and around 38,000 warning letters have been sent to business operators, Peng noted.

Crackdown on price gouging for products and deliveries during lockdown
Imaginechina

A community volunteer delivers online purchases to locked-down residents.


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