(Government of Alberta)

By David Opinko

Price Gouging

Calgary business charged with price gouging PPE and sanitization supplies

May 8, 2020 | 2:05 PM

CALGARY, AB – A warning to anyone looking to take advantage of the COVID-19 pandemic for profit, you could face criminal charges and a fine of up to $300,000.

Members of Service Alberta’s Consumer Investigations Unit (CIU) received a tip through its Report a Rip-Off line about CCA Logistics Ltd (Newsway) in Calgary.

On April 1, an investigator went to the business and found several pieces of personal protective equipment (PPE) and other items being sold at prices “that grossly exceeded their nominal selling price.”

These include:

• 3M face masks – $120 (400 per cent markup)
• Hand sanitizer – $39 (200 per cent markup)
• Vitamin C (two-pack) – $30 (100 per cent markup)
• Hand soap – $10 (300 per cent markup)
• Lysol spray – $25 (250 per cent markup)

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“We have been very clear that taking advantage of Albertans is unacceptable and reprehensible, especially during a public health emergency,” says Service Alberta Minister Nate Glubish. “As customers, Albertans should be able to shop with confidence, without needing to worry about businesses engaging in acts of piracy. Unnecessarily hiking prices by 200 and 400 per cent is disgusting behaviour that will be punished 100 per cent of the time.”

An interim director’s order was issued to the business owner on April 15th, ordering them to stop charging a price for goods that grossly exceeded normal prices. The business did not comple.

The business owner is scheduled to appear in Calgary Provincial Court on August 19.

As of May 8, CIU has received 458 complaints about price gouging at businesses across Alberta related to COVID-19. 351 of these have resulted in further inspections or investigations.

“Our Consumer Investigation Unit does excellent work and will continue to investigate complaints, file charges and prosecute where necessary, with our government’s full support.”

Price gouging has been alleged for the following products.

• Hand sanitizer
• Lysol/Clorox Wipes
• Toilet paper
• Face masks (including some N95s)
• Disposable gloves
• Soup
• Flour
• Milk
• Baby formula
• Shredded cheese
• Ground beef

The Report a Rip-Off line can be contacted at 1-877-427-4088.