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U.K. Watchdog Seeks Powers to Combat Virus Profiteers, FT Says

U.K. Watchdog Seeks Powers to Combat Virus Profiteers, FT Says

(Bloomberg) -- The U.K. Competition and Markets Authority is seeking emergency powers to fight companies that are profiteering during the coronavirus pandemic, Chief Executive Officer Andrea Coscelli told the Financial Times.

The watchdog is seeking “emergency time-limited legislation” to pursue retailers who bump up prices.

The CMA received 21,000 complaints from March 10 to April 19 related to Covid-19, including alerts about price gouging, and has written to 187 companies that raised product costs on average by 130%, and in the case of hand sanitizer by an average of 367%, the FT reported.

“Consumer and competition law are not really designed for emergencies,” Coscelli told the newspaper. “Part of our role is to use everything we have but if there are gaps, to explain to the government what those gaps are. Ultimately, though, it’s for the government and parliament to decide.”

He said he has spoken to the Department for Business, Energy and Industrial Strategy to advise on the need for temporary new laws, the newspaper said.

Prime Minister Boris Johnson in March said he’s considering a new law to prevent businesses and individuals making excess profit from the crisis.

“I think profiteering is something we should be looking at from a legislative perspective in this house,” he said March 25 during weekly question time in Parliament.

©2020 Bloomberg L.P.