Tag: profiteering

Petrol Prices: Government acts to tackle rip-off retailers

  • Retailers will be forced to provide up-to-date price information as part of new government scheme to call out rogue supermarkets and stations overcharging drivers at the pump.
  • Motorists will be able to easily compare fuel prices in real time to choose the best prices whilst boosting competition and in turn driving down prices.
  • Government action after watchdog finds some supermarkets charged drivers 6p more per litre for fuel from 2019 to 2022 – meaning £900m in extra costs across the UK in 2022 alone.

Motorists are being put in the driving seat to find the best fuel prices as the government prepares to force retailers to publicly fess up to how much they are charging at the pump.

In a win for consumers, they will be able to compare prices in real time in any area of the UK, through a new fuel price reporting scheme. Drivers will be able to easily identify those charging fair prices and those failing to pass on savings from falling wholesale costs.

The government will change the law to force retailers to comply by providing up to date price information, which is expected to lead to greater transparency and competition – in turn driving down prices and easing people’s cost of living.

The new scheme will make pricing data available for third parties – paving the way for them to create price comparison apps and websites – supporting the digital economy and helping growth.

The tough action by government follows publication of a Competitions and Markets Authority (CMA) report today showing some supermarkets charged drivers 6p more per litre for fuel. This amounts to £900m in extra costs in 2022 alone – around £75m a month.

New powers will be handed to a public organisation yet to be decided, to closely monitor the UK road fuel market, scrutinise prices and alert government if further intervention is needed.

This is the latest step in the government’s action to ease the cost of living, as part of its efforts to halve inflation this year – one of the Prime Minister’s five priorities. It follows the Chancellor’s roundtable with regulators last week, including the CMA, to ensure consumers are being treated fairly and help those struggling to make payments.

Grant Shapps, Energy Security Secretary, said: “Some fuel retailers have been using motorists as cash cows – they jacked up their prices when fuel costs rocketed but failed to pass on savings now costs have fallen.

“It cannot be right that at a time when families are struggling with rising living costs, retailers are prioritising their bottom line, putting upwards pressure on inflation and pocketing hundreds of millions of pounds at the expense of hardworking people.

“Today I’m putting into action the CMA’s recommendations and standing by consumers – we’ll shine a light on rip-off retailers to drive down prices and make sure they’re held to account by putting into law new powers to increase transparency.”

Jeremy Hunt, Chancellor of the Exchequer, said: “It isn’t fair that businesses are refusing to pass on lower prices to protect their profits while working people struggle with balancing their budgets.

“Consumers need to be treated fairly, and so we’re empowering drivers to find the best prices possible for their fuel by taking swift steps following the CMA’s recommendations.”

The CMA’s report found a concerning weakening of competition in the fuel market and an overall increase in retailers’ margins, especially in respect of diesel and with supermarkets the worst offenders (see below).

It also noted a lack of reliable and comprehensive price information available to motorists.

The report recommends the mandatory public disclosure of fuel prices and establishment of a body to monitor the market, which the government has agreed to.

The government will consult on the design of the open data scheme, and market monitoring function this autumn – with changes to the law needed to bring it in. In the interim, the CMA will create a voluntary scheme encouraging fuel retailers to share accurate, up-to-date road fuel prices for publication by August and continue to monitor fuel prices using its existing powers.

The move follows a similar scheme in Germany, which boosted competition amongst fuel retailers. Meanwhile, motorists who shopped around in Queensland, Australia, saved on average $93 per year off the back of a statewide scheme rolled out in the area.

Action to protect consumers announced today follows the government spending nearly £40 billion protecting households and businesses from spiralling energy bills over the colder months – including paying half the typical household bill and saving the average home roughly £1,500 by the end of June.

Meanwhile, with the latest Ofgem price cap coming into effect from 1 July, families will see their yearly energy bills fall by around £430 on average. On top of this, the government is also providing additional support to the most vulnerable, with an extra £150 for disabled people and £900 for those on means-tested benefits.

CMA-Executive_SummaryDownload

CMA sets out plan to help drivers get more competitive fuel prices

A new fuel finder scheme to enable drivers access to live, station-by-station fuel prices on their phones or satnavs would help revitalise competition in the retail road fuel market, the CMA said yesterday

  • Increased supermarket fuel margins led to drivers paying an extra 6 pence per litre
  • Instant access to prices via fuel finder scheme should drive down prices and help people find cheapest fuel
  • New monitoring body needed to hold industry to account
  • Asda fined £60,000 for failure to provide information when required

The scheme would be made possible by new compulsory open data requirements and backed by a new ‘fuel monitor’ oversight body. The proposals are the key recommendations by the Competition and Markets Authority (CMA) to UK government following its in-depth study into the road fuel market which found a weakening of competition in retail since 2019.

At present, retailers only provide information on prices at the petrol stations themselves. This makes it hard for drivers to compare prices and weakens competition. The fuel finder open data scheme would need statutory backing through legislation to ensure fuel retailers provide up-to-date pricing and make that available to drivers in an open and accessible format that can be easily used by third party apps such as satnavs or map apps, through a dedicated fuel finder app, or a combination of both.

The fuel monitor would monitor prices and margins on an ongoing basis and recommend further action if competition continues to weaken in the market. As the UK transitions to net-zero the demand for petrol and diesel will reduce. The fuel monitor will help us understand the impact of this on vulnerable consumers that remain dependent on petrol and diesel for longer, as well as those living in areas with limited choice of fuel stations.

The fuel monitor will ensure ongoing scrutiny of retail prices for petrol and diesel. We observed that following the interim update issued by the CMA in May 2023, the average price of road fuel fell in large parts of the UK. Over the last year, the CMA has investigated the road fuel market in detail and reached the conclusion that competition is not working well and greater transparency in pricing is needed to improve consumer confidence and bring down prices for drivers.

There is no evidence to suggest that there has been cartel behaviour taking place and the CMA has no plans to open an enforcement case.

The report found that:

  • From 2019-22, average annual supermarket margins have increased by 6 pence per litre (PPL)
  • Increased margins on diesel across all retailers have cost drivers an extra 13 PPL from January 2023 to the end of May 2023
  • With greater transparency and shopping around as effectively as possible, the driver of a typical family car could save up to £4.50 a tank within a 5-minute drive
  • Motorway service stations are charging around 20 PPL more for petrol and 15 PPL more for diesel compared to other fuel stations

Supermarkets are generally the cheapest places to buy fuel, with Asda typically the cheapest of those. This has anchored prices in the past. The CMA found that in 2022, Asda and Morrisons each made the decision to target higher margins.

Asda’s fuel margin target in 2023 was more than three times what it had been for 2019, while Morrisons doubled their margin target in the same period. Other retailers, including Sainsbury’s and Tesco, did not respond in the way you would expect in a competitive market and instead raised their prices in line with these changes. Taken together this indicates that competition has weakened and reinforces the need for action.

Diesel prices have been slow to drop in 2023, partially down to Asda ‘feathering’ (reducing pump prices more slowly as wholesale prices fell) its prices and other firms not responding competitively to that. As a result, the CMA estimates that drivers have paid 13 PPL more for diesel from January 2023 to the end of May 2023 than if margins had been at their historic average.

Sarah Cardell, Chief Executive of the CMA, said: “Competition at the pump is not working as well as it should be and something needs to change swiftly to address this.

“Drivers buying fuel at supermarkets in 2022 have paid around 6 pence per litre more than they would have done otherwise, due to the four major supermarkets increasing their margins. This will have had a greater impact on vulnerable people, particularly those in areas with less choice of fuel stations.

“We need to reignite competition among fuel retailers and that means two things. It needs to be easier for drivers to compare up to date prices so retailers have to compete harder for their business.

“This is why we are recommending the UK government legislate for a new fuel finder scheme which would make it compulsory for retailers to make their prices available in real time. This would end the need to drive round and look at the prices displayed on the forecourt and would ideally enable live price data on satnavs and map apps.

“Given the importance of this market to millions of people across the UK this needs to be backed by a new fuel monitor function that will hold the industry to account. As we transition to net zero, the case for ongoing monitoring of this critical market will grow even stronger, so we stand ready to work with the UK government to implement these proposals as quickly as possible.”

Local factors also contribute to how much drivers pay at the pump. The CMA identified that there are significant price differences in local areas, and that the difference between the highest and lowest prices in local areas has increased as average fuel prices have risen.

Lower prices are typically associated with having a supermarket retailer nearby, and where there are no supermarkets, for example, in remote areas, fuel retailers are likely to have higher costs and prices are likely to be higher. The fuel finder scheme will be important to help people find the best deal possible but it is essential that the monitoring function keeps a close eye on local variations in prices.

The price premium at motorway service stations has grown in real terms since 2012, and price variation on motorways is low, due to limited competition between service stations. A fuel finder scheme would allow drivers an easy way to see where they can find cheaper fuel in the area if they come off the motorway.

The CMA has also imposed fines totalling £60,000 on Asda for failing to provide relevant information in a timely manner.

Asda received two fines, each of £30,000 (the statutory maximum), for:

  • Sending a representative to attend a compulsory CMA interview who was not equipped to provide evidence on certain topics the CMA had identified in advance.
  • Failing to respond completely to a compulsory written request for information.

Asda has now provided the CMA with the required information.

The final report on the Road Fuel Market Study is available to read in full.

RAC Foundation: Lack of competition pushing up pump prices

Supermarkets not as competitive as they once were

night shot of a petrol station

Fuel retailers have been pushing up their margins on pump prices meaning higher prices for drivers.

The latest findings from the Competition and Markets Authority (CMA) reveal that between 2019 and 2022 supermarkets pushed up their margins on petrol and diesel by 6p per litre (PPL).

The CMA also found that “increased margins on diesel across all retailers have cost drivers an extra 13 PPL from January 2023 to the end of May 2023.”

The organisation goes on to say:

“Over the last year, the CMA has investigated the road fuel market in detail and reached the conclusion that competition is not working well and greater transparency in pricing is needed to improve consumer confidence and bring down prices for drivers.”

However, the CMA could find “no evidence to suggest that there has been cartel behaviour taking place and the CMA has no plans to open an enforcement case.”

The CMA’s study on road fuel prices identified a reduction in competition amongst the supermarkets:

“Supermarkets are generally the cheapest places to buy fuel, with Asda typically the cheapest of those. This has anchored prices in the past. The CMA found that in 2022, Asda and Morrisons each made the decision to target higher margins. Asda’s fuel margin target in 2023 was more than three times what it had been for 2019, while Morrisons doubled their margin target in the same period.

“Other retailers, including Sainsbury’s and Tesco, did not respond in the way you would expect in a competitive market and instead raised their prices in line with these changes. Taken together this indicates that competition has weakened and reinforces the need for action.

“Diesel prices have been slow to drop in 2023, partially down to Asda ‘feathering’ (reducing pump prices more slowly as wholesale prices fell) its prices and other firms not responding competitively to that. As a result, the CMA estimates that drivers have paid 13 PPL more for diesel from January 2023 to the end of May 2023 than if margins had been at their historic average.”

The CMA is calling for the compulsory release of price data by fuel retailers so that apps can be developed which allow drivers to check what is the best price in their local area.

It also wants to see a new monitoring body to hold the industry to account.

According to the CMA “motorway service stations are charging around 20 PPL more for petrol and 15 PPL more for diesel compared to other fuel stations.”

UNITE: Time to pull the plug on energy profiteers

New union investigation reveals taking energy into public ownership would end the ‘scandal of energy company profiteering’
  • Last year bill payers could have saved £45 billion with average bills cut by £1800. 
  • Unite General Secretary Sharon Graham to urge Starmer to reconsider Labour policy.  

Taking public control of the UK’s energy network could reduce bills, reduce inflation, and pay for itself in a few years, reveals new research by Unite the Union.

 Unite Investigates “Renationalising Energy – costs and savings considers how a publicly run energy network could use the massive profits of Britain’s energy giants to reduce household bills and fund the transition to a green future with secure jobs.

Unite Investigates’ report  is the first to determine the potential costs and savings of taking public control of the entire UK energy network – including North Sea oil and gas production, electricity generation, transmission and distribution networks, and supply companies.

The report reveals that companies made £45 billion profit from the UK domestic energy system in 2022. If that money had been kept in public hands, it could have been used to save each household £1,800 on their energy bills. Read Unite general secretary, Sharon Graham’s interview in today’s FT.

Household energy bills have been one of the biggest contributors to high inflation. Using energy profits to freeze bills in summer 2021, when prices started to shoot up, would have meant inflation was at least 4.1% lower last year. So in due course nationalisation could markedly reduce inflation.

Unite’s report also investigates the potential costs of nationalisation. Using the ‘book value’ approach, which compensates companies for their spending, Unite estimates a total cost of £90 billion. That is equal to just two years of profits at the 2022 level. Even as energy prices fall, taking control of energy would pay for itself within a few years.

Sharon Graham, Unite General Secretary said: “It’s time to end the scandal of our energy system which allows profiteers to pocket billions while workers and communities are left in the cold.”

“For the first time we have laid out the full costs and savings of taking the entire energy network we all rely on into public ownership.

“It’s a tragic missed opportunity that, if the energy system had been run for the benefit of all not the profits of a few, households could have saved £45 billion, avoiding high bills that have left millions in the cold or searching for ‘warm banks.’

“It’s time to pull the plug on the energy profiteers. Unite is showing it’s no longer a question of ‘can we afford to’, it’s how long can we afford not to.”

This report follows the historic profits recorded by BP and Shell, who made a combined profit of £55 billion and British Gas owner Centrica.

Unite has previously exposed rampant profiteering by electricity and gas distributors, who made £6.3 billion in 2021 with huge long-term operating profit margins of over 40 per cent.

A Parcel of Rogues: Pandemic Profiteers

STUC Online Event

Covid-19 has had a profound impact on Scotland’s economy, but the cost of the crisis has not been shared evenly. What can we do about it?

About this event

Join us on Tuesday the 24th of August to hear from leading economists and trade unionists about the parts of Scotland’s economy that have prospered during the Covid-19 pandemic, the potential long-term economic impacts, and how trade unions and policymakers can respond.

Speakers will include:

• Laurie Macfarlane, Economics Editor at openDemocracy and Head of Finance at the UCL Institute for Innovation and Public Purpose. Prior to this Laurie was Senior Economist at the New Economics Foundation.

• Christine Berry, economist, writer, and co-author of ‘People Get Ready! Preparing for a Corbyn Government’. Christine was recently appointed as Director of the thinktank IPPR North.

• Jennifer McCarey, Chair of Glasgow Trades Council.

• Richard Hardy, National Secretary of Prospect, a Commissioner on the Scottish Government’s Just Transition Commission, and sits on the STUC General Council.

Open to all, free to attend.

Register on Eventbrite

Price-gougers selling Covid-19 essentials for up to TEN TIMES the typical price

A Which? investigation has uncovered hundreds of listings for essential products at inflated prices sold via online marketplaces, and has found evidence that thousands of items have been sold at these rip-off rates. 

The first page of search results for some popular brands on online marketplaces such as Amazon Marketplace and eBay were rife with household essentials being sold for at least double the typical supermarket price, as some third-party sellers seek to profiteer amid the coronavirus crisis – and Which? has heard similar reports from consumers who are vulnerable or in desperate need of these in-demand items.

The consumer champion has also uncovered evidence on eBay that thousands of these essential products such as hand sanitiser, cleaning products, toilet roll and tissues are being purchased at these high prices by consumers.

Unknown to the brands, the unscrupulous traders often exploit popular household names such as Andrex, Carex, Dettol and Kleenex in order to profit.

Which? recognises that action is being taken against price-gouging by both Amazon and eBay through blocking and removing large quantities of listings or offers and suspending accounts, but its investigations continue to find large numbers of essential products being listed for sale at inflated prices, suggesting measures from marketplaces alone are not enough and government intervention is needed.

Based on the first page of search results for Carex on Amazon Marketplace, more than half (56%) of Carex products, including hand wash and hand sanitiser, were being sold for five times the typical supermarket price or more and one in 10 (9%) were on sale for 10 times the price.

In fact, 98 per cent of those items on the first page of search results were on offer for double the typical price or more.

For Dettol products listed by Amazon sellers on the first page of search results, which included antibacterial soap, wipes and spray, around six in 10 (63%) of listings were double the price or more.

On the first page of listings for Dettol on eBay, Which? researchers found that not only were nearly nine in 10 (85%) of Dettol items being sold for double the typical supermarket cost, but two in 10 (22%) were five times the typical price, and 8 per cent were 10 times the price.

Eight in 10 (81%) Carex products on the first page of search results  – including hand wash and antibacterial gels – were being sold on eBay for double the typical supermarket cost, while 60 per cent of Andrex and 50 per cent of Kleenex first page listings were double the typical price.

Which?’s new price-gouging reporting tool has also received hundreds of reports of inflated prices so far, six in 10 (58%) of which were about products sold on online marketplaces. Given that Amazon and eBay are by far the most popular online marketplaces in the UK, it’s no surprise that a large proportion of reports are about them.

Consumers are also encouraged to report any issues they see to Amazon and eBay directly.

Of the other 42 per cent, the majority were about supermarkets or large chain stores. One reason Which? set up the tool was due to the difficulty in investigating bricks and mortar cases during lockdown. A third of tool users also reported they are buying products even when they believe them to be at unfair prices.

Which? has heard from housebound vulnerable people who rely on essential items such as cleaning products to protect themselves from Covid-19 – and have reported the sky-high prices they have seen on online marketplaces.

Kathryn Taylor, 59, has a chronic lung condition and has to stay at home due to serious issues with her immune system. She saw a seller on Amazon Marketplace selling 1 litre of Dettol spray for £29.99.

She said: “It’s disgusting. I have had to use these products for years now for hygiene reasons for managing serious health conditions and the current shortages mean

“I have to try to look elsewhere if not available for my Tesco delivery, but I cannot afford to pay the prices.”

On eBay, a 500ml bottle of Dettol surface cleanser, usually sold for £1.75 or less, was listed for more than £9 by one seller. In the reviews, a buyer said that they had been forced to buy it at an ‘exorbitant price’ for their elderly mother who suffers from Parkinson’s disease.

Which? also saw issues on OnBuy, which claims to be one of the world’s fastest growing online marketplaces and was reported to Which? by people trying to find Dettol products.

One person who used Which?’s price gouging reporting tool said that they had found Dettol antibacterial washing machine cleaner on sale for £19.59 via OnBuy, instead of the typical £3.50. Another told Which? that they had been trying to buy Dettol anti-bacterial spray, and had found a bundle of three 750ml bottles on OnBuy for £45.94, rather than the usual £2.50 a bottle.

Which? found multiple examples of products listed by sellers for inflated prices via OnBuy. A bundle of six 750ml Dettol Power and Pure kitchen sprays, usually £3 each, was being sold for more than £40 including postage. A pack of Dettol wipes was for sale for £15.81, more than three times the usual £5.

Which? will be sharing its price-gouging tool data with the CMA, which has set up a special Covid-19 task force to look at issues faced by consumers.

Which? is calling for emergency legislation to give regulators the tools to swiftly crack down on price-gouging on certain essential products during this crisis, and any future ones.

Sue Davies, Head of Consumer Protection at Which?, said: “It cannot be right that potentially thousands of people have paid unjustifiably high prices to buy essential items during this Covid-19 crisis.

“While welcome, it’s clear that measures being put in place by online marketplaces are not enough to stop coronavirus profiteering by those seeking to exploit the current situation.

“The government, working with the CMA, needs to step in with emergency legislation to enable swift action to crack down on price-gouging and keep the price of essential items reasonable during crises both now and in the future.”

On Thursday 14 May at 9.30am, Which?’s Sue Davies will be giving evidence to the BEIS Select Committee about the impact of coronavirus on consumers: https://committees.parliament.uk/event/965/formal-meeting-oral-evidence-session/

Link for consumers to submit reports to Which?’s price-gouging tool: https://www.which.co.uk/pricegouging

Which? launches tool to tackle profiteers

Which? has developed a simple tool for people to report coronavirus profiteering amid concerns that price-gougers are getting away with hiking the prices of essential items.

The consumer champion has uncovered widespread problems with basic products being sold for hugely inflated prices on online marketplaces such as Amazon Marketplace and eBay – and there are concerns that similar behaviour could be happening on other sites and in shops up and down the country.

These practices may have left key workers and charities struggling to get essential products they need or forced to pay extortionate prices.

Which? spoke to a charity that helps provide hundreds of meals to elderly and vulnerable people – demand for this vital service has gone up since the Covid-19 crisis. However the price of essential items to keep its employees and vulnerable clients safe, such as antibacterial probe wipes, which the charity has only been able to buy in the high quantities they need from eBay, has more than doubled since the crisis.

The Competition and Markets Authority has set up a dedicated Covid-19 taskforce, and reports shared using the tool will help the regulator to establish the scale of the problem and take action against the worst offenders. Which? is also calling for emergency legislation to give regulators the tools to swiftly crack down on price-gouging on certain essential products during this crisis, and any future ones.

The CMA and Chartered Trading Standards Institute have both raised serious concerns about problems with price-gouging and the Prime Minister has also warned traders against “exploiting people’s need” during a national emergency.

Which? has heard reports from hundreds of consumers that unscrupulous sellers have been taking advantage of the situation and its investigations have uncovered huge price hikes on products such as handwash, cleaning products and baby formula.

Which? experts have found Dettol bleach and cleaning sprays being sold by third-party sellers with price hikes of almost 1000 per cent more than the typical price on eBay with evidence of dozens of purchases being made at these prices.

Researchers also encountered sterilising fluid for baby bottles for more than 10 times the original price by a seller on Amazon and a bundle of one handwash and one antibacterial gel for £30 on eBay, instead of the £3.50 it would usually cost.

Some shoppers have felt pressured into buying these overpriced products because of a lack of alternative options available, including older and more vulnerable people who need access to vital hygiene products such as hand sanitiser.

One told Which?: “I’m disabled and struggle to leave my home, but the current crisis is forcing me to go out and struggle to get essentials when I normally get as much online as I can.

“My trust in buying from online marketplaces has been shattered, some items are fine if I find it at a reasonable price, but others I can’t trust as they’re either gouged, possibly diluted and therefore useless, or it’s a scam listing and the item never existed to begin with.”

Another said: “I paid £19.80 plus £5.25 for post and packaging for 2 x 250ml of hand sanitiser from a seller on eBay. Outrageous price but we are a captive audience and it was the cheapest I could find. Someone is getting very rich from this pandemic.”

Which? has also heard numerous reports of price-gouging at bricks and mortar retailers including pharmacies.

Which? is calling for the government to introduce specific legislation to stop unjustifiable price hikes of essential items during times of emergency, as well as requiring online marketplaces to ensure compliance on their sites or face enforcement action.

New legislation would also give the UK a head start in tackling price-gouging during any future emergencies. The absence of legislation has made it harder to take action on this issue swiftly and left the UK trailing behind other countries that already have laws to combat price-gouging during crises.

In the meantime, Which? believes online marketplaces need to bring in stricter, more effective controls and policies to tackle price gouging, and is encouraging the CMA to take strong enforcement action using its existing powers where appropriate.

Sue Davies, Head of Consumer Protection at Which?, said: “It is unacceptable for people to be left at the mercy of unscrupulous sellers during a national emergency. We’re calling for people to report opportunistic coronavirus profiteers via our tool so that we can press home the need for swift action and put an end to price-gouging on basic goods.

“The government, working with the CMA, needs to step in with emergency legislation to crack down on price-gouging and keep the price of essential items reasonable during a crisis.”

Link for consumers to submit reports to Which?’s price-gouging tool: https://www.which.co.uk/pricegouging

Which? calls for price controls to stop coronavirus profiteering

Which? is calling for urgent government action that would limit the prices of essential products during the coronavirus crisis, after a new investigation found Amazon and eBay are still failing to get to grips with blatant ‘price-gouging’ on their websites.  

More than a month after the competition regulator raised the alarm, and despite a warning from the Prime Minister, the consumer champion’s experts were able to easily find widespread evidence of sellers hawking household items for rip-off prices.

When Which? asked its members if they’d witnessed coronavirus profiteering, they provided a further dossier of hundreds of cases on Amazon Marketplace, eBay and other retailers within 48 hours.

Despite both Amazon and eBay removing hundreds of thousands of rogue listings, their actions to block listings are failing to prevent some unscrupulous sellers posting items in the first place, which means products including handwash, cleaning products and baby formula are still being sold for extortionate prices.

A simple search for Carex on eBay that took seconds revealed over 350 listings with a ‘buy it now’ price and over 240 active auctions running.The listings included two 600ml bottles of Carex handwash with a “buy it now” price of £40, and a multi-pack of six 250ml bottles of handwash, clearly labelled as £1 each, which had reached £31 in an auction, but still not reached the seller’s reserve price.

On Amazon, six bottles of Carex were listed for £39.95. One reviewer noted that they had been ripped off after paying £24.99 for a pack that arrived with £1 stamped on each bottle.

A bottle of Dettol all-purpose cleaner was £59.99 including postage and packaging on eBay,  24 times the normal price. On Amazon, a similar bottle of Dettol multi-purpose cleaner, which usually costs £2.79, was £19.31, including an £11.24 shipping charge.

Sellers had no qualms about exploiting families with young children either. On eBay, two packs of Aptamil First Infant Milk had a “buy it now” price of £37.17, more than double the usual price. An Amazon seller wanted £99.99 for a pack of four Aptamil Profutura Stage 3 milk powder, nearly the double the price at other retailers.

Some eBay sellers even included photos of listed products, including toilet rolls and Dettol surface cleaner, piled high in trollies or in their homes – suggesting they had little concern about facing scrutiny.

Researchers also saw a worrying trend on Amazon, where they found listings for products including Carex handwash and baby formula that had been removed as a result of Which?’s previous investigation 16-19 March now had new sellers using exactly the same URLs and offering the same products at sky-high prices.

Of the 11 listings previously removed by Amazon, Which?’s researchers found that five seemed to have reappeared with new and inflated prices when they checked again on 3 April.

The consumer champion’s latest investigation reinforces the need for the government to step in with emergency legislation to cap prices for essential products so that unscrupulous sellers are clearly prohibited from taking advantage of consumers and online marketplaces like Amazon and eBay can effectively clamp down on sales of these products at inflated prices.

The CMA, and its Covid-19 taskforce, should advise the government on the most appropriate legislation to cap prices and give the competition regulator the tools it needs to address price gouging for the duration of the crisis.

Sue Davies, Head of Consumer Protection at Which?, said: “Amazon and eBay seem unable to stop coronavirus profiteering – leaving some unscrupulous sellers to have a field day exploiting people by selling essential items at appallingly high prices.

“It is time for the government, working with the CMA, to step in with strong action to stamp out price-gouging and keep the price of vital goods reasonable during this difficult time.”

Amazon responded: “There is no place for price gouging on Amazon.

“We are disappointed that bad actors are attempting to artificially raise prices on basic need products during a global health crisis and, in line with our long-standing policy, have recently blocked or removed hundreds of thousands of offers. We continue to actively monitor our store and remove offers that violate our policies.”

An eBay spokesperson said: “We have extremely effective measures in place to combat price gouging – something that we’ve communicated to Which? multiple times – with heavy restrictions on the listing of some in-demand products at unreasonable prices, resulting in five million price automatically blocked attempts to price gouge, an additional 600,000 removed, and thousands of seller accounts suspended.”

Case studies 

Case study 1

In February I purchased four 500ml bottles of Hibiscrub from eBay for £21.28. I buy this every few months for my mum’s hands as she gets infections and blisters. The same seller is now selling the exact same pack for £89.99. Absolute disgrace! Lots of the eBay sellers are doing the same so I’m praying I don’t run out as I can’t afford these prices.

Case study 2

Trying to get a Braun thermometer due to underlying health problems, were £39.99 in Argos and John Lewis now out of stock but I can buy at inflated prices on Amazon and EBay,for anything up to £199!!! I don’t think so, profiteering at its worst.

Case study 3

I went on eBay to get my usual deodorants, as I’m 74 and can’t get to the supermarket for a delivery slot. FemFresh deodorant that usually costs around £3 was on eBay for £9. It’s a black market disgrace – now we know who’s been clearing the shelves for their own greedy gain. Where’s the law to stop this?

Case study 4

We are delivering food to elderly and vulnerable people in Suffolk, probe wipes that we bought before are now £50 more expensive than before Covid !!!

eBay and Amazon fail to prevent profiteering on essentials during crisis

eBay and Amazon Marketplace are failing to crack down on a spate of coronavirus-profiteering by sellers after a Which? investigation uncovered a wide range of products for sale on marketplaces with inflated, and often ridiculous, prices.

At the start of this month, the Competition and Markets Authority (CMA) warned that traders should not be exploiting the coronavirus outbreak to take advantage of people through price gouging, and threatened to take strong action if the problem persisted.

However, the consumer champion’s snapshot investigation suggests third-party sellers are still brazenly ripping-off consumers and using the current situation to list overpriced items that are difficult or impossible to find in local shops.

Which? found consistent overpricing of household items, including cleaning products, thermometers, baby formula and tampons – products that are all currently in particularly high demand during the coronavirus outbreak.

There were hundreds of active listings and auctions for dramatically overpriced items, including a £40 thermometer priced at £300 on eBay and £150 on Amazon. A £3 bottle of disinfectant was on sale for £29.99 on eBay – a markup of up to 1,000 per cent – and was more than three times the recommended price on Amazon.

Meanwhile on eBay’s auction site, a flurry of bids sent the price for a bundle of three bottles of Dettol spray and three packets of antibacterial wipes soaring to £210.

Which? also found that consumers were actually buying these overpriced products from eBay, despite the extortionate prices. For some listings taken down during the investigation, eBay showed that multiple items had already been purchased before the listing could be removed.

The research also demonstrated a failure of ‘filters’ and other checks put in place by eBay and Amazon to adequately protect consumers, despite both having stated publicly that they have taken action on the issue.

When Which? asked eBay on 9 March what action it was taking to protect customers from price gouging on antibacterial gel, it said it had filters in place to prevent the listing of these items. But these listings continue reappearing, suggesting the systems in place are not working effectively.

Amazon seems to be having more success, with a number of active listings disappearing during Which?’s investigation. However, more are still appearing.

Which? is calling on eBay and Amazon to take more effective action against third-party sellers trying to take advantage of consumers at this difficult time.

Online marketplaces should be bringing in far stricter controls to identify and prevent these practices of charging unjustifiable high prices for essential products. They must communicate their policies clearly and directly with sellers.

This investigation raises serious broader questions about the checks and balances that eBay and Amazon currently have in place and their inability to prevent harmful listings, a problem raised repeatedly by Which? through its research and investigations.

If the systems used by the tech giants are not capable of preventing harmful listings from appearing at all, then better manual systems need to be put in place to identify and remove them.

While online marketplaces are taking action, both claim to have removed listings and suspended or terminated accounts during the coronavirus crisis, this investigation shows they need to be doing more. If they fall short, the CMA’s new coronavirus taskforce needs to take action to stop these practices.

The CMA has already engaged with the big platforms to find out more about what they’re doing to address the issue of retailers on their sites charging very high prices for essential items.

Given the exceptional circumstances brought about by coronavirus, the government should consider how it will work with the retail sector as a whole to tackle irresponsible price-hiking – bringing together businesses, including supermarkets and online marketplaces, as well as Trading Standards and the CMA – to agree how to keep essential items, that should be accessible to all, at reasonable prices.

Sue Davies, Head of Consumer Protection at Which?, said: “Online marketplaces have taken some action against coronavirus price gouging, but our investigation shows unscrupulous sellers are still cashing in on people’s fears by selling essential items at extortionate prices on eBay and Amazon.

“These companies must make good on their pledges to stamp out coronavirus profiteering, and if they fall short the CMA must be ready to take strong enforcement action.

“The government should consider how it will work with the retail sector as a whole to keep the price of essential items reasonable as the fallout from the coronavirus outbreak continues.”

Examples of over-priced items:

Thermometers

In one of the most extreme examples researchers saw a digital thermometer, which people worried about coronavirus are purchasing to check body temperature, selling for almost £300 on eBay and and almost £150 on Amazon when the typical price is around £40.

Medicines

They also spotted Dettol Liquid Antiseptic Disinfectant, which is typically around £3, being sold for £29.99 on eBay – a 1,000 per cent mark up – and for £9.53 on Amazon.

Carex antibacterial hand lotion

250ml bottles of Carex, which often retail for just £1, were seen priced at Amazon and eBay for over £10 each. One eBay listing showed the item priced at £100 – it was labelled ‘last one’, with three others apparently already sold. Another at Amazon was available from a third party seller for £26.41.

Hand sanitiser

A 50ml bottle of Carex antibacterial hand gel was being sold for more than £100 by multiple sellers on eBay, despite usually costing around £1.50. A multipack of four 300ml Carex Aloe Vera gels apparently sold for £9,999, although we believe this may have been a test or a hoax.

Bleach products

One eBay seller listed a 750ml bottle of Domestos Thick Bleach on eBay for £6.95, despite the accompanying picture showing that the bottle is clearly labelled with the price of £1. A similar bottle of Domestos bleach was being sold on Amazon for £7.66.

Sanitary products

On eBay an 18-pack of Tampax Compak Pearl were found for £6.31, rather than the usual £3.15 at Boots. 257 packs had been sold.

Tampax Compak was available in bulk on Amazon – despite the image showing the RRP is £2.99, eight boxes were priced at £48.64 rather than £18.32.

Baby formula

On eBay, Which? found sellers offering six packs of infant formula, which is vital for young babies that aren’t being breastfed, for over £100 – in Sainsbury’s, infant formula usually costs around £10 a pack. Some sellers were selling individual 800g packs for around £40, while another was priced at as much as £60.

Active auctions rife on eBay

Most of the products above were for sale with a ‘buy it now’ price, but Which? also took a look at auction style listings, where sellers can bid for an item. Concerningly, we spotted a raft of overpriced items being aggressively bid on by shoppers, driving the price up even higher.

A bundle of three Dettol Sprays and three packs of antibacterial wipes had 78 bids with less than an hour to go, with a price of £210. The starting price was £0.01, and there were 11 bidders who quickly upped the price.

One listing for three cans of Dettol Antibacteral disinfectant Spray had attracted 38 bids with less than four hours remaining, and the auction cost was up to £49.

An eBay spokesperson said: “All the items flagged by Which? have been removed and enforcement action has been taken against the sellers.

“We announced on Friday additional measures to tackle coronavirus-related price gouging. This is a continuation of the aggressive action against price gouging, which has included suspending hundreds of accounts, removing hundreds of thousands of listings, and suspending scores of bad seller accounts.

“Specifically in the face masks and hand sanitiser categories, only pre-approved whitelisted vendors will be allowed to sell these items.

“We are continually monitoring the situation and will consider widening the ban to include other categories if appropriate.”

An Amazon spokesperson said: “There is no place for price gouging on Amazon.

“We are disappointed that bad actors are attempting to artificially raise prices on basic need products during a global health crisis and, in line with our long-standing policy, have recently blocked or removed tens of thousands of offers.

“In addition to removing these offers, we are terminating accounts.”