Price Control and Anti-Profiteering Act takes effect

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MIRI: The Price Control and Anti-Profiteering Act 2010 legislation took effect yesterday to prevent excessive profiteering, especially on non-controlled items.

According to Ministry of Domestic Trade, Cooperatives and Consumerism (MDTCC) Sarawak director Wan Ahmad Uzir Wan Sulaiman, under the new legislation, the ministry will be able to prevent unreasonable profiteering by traders.

“Before this, there is no law that enable MDTCC to take action on traders who mark up their prices irresponsibly, not until the Price Control and Anti-Profiteering 2010 enactment comes into effect today,” he said when contacted by The Borneo Post yesterday. More over, he said that the new act would protect non-controlled items such as food and beverages pricing appropriately.

“Excessive profiteering is, for example, when a ‘mamak’ restaurant marks up its ‘mee goreng’ price up to RM15 to the one charged by hotels, where the two outlets offer distinctly different services,” he pointed out.

There are big service differences at both places where most of hotel restaurants provide air-conditioning, free Wi-Fi, better quality food standard and cozy ambiance that customers are willing to pay the extra services.

“Whereas it would not be appropriate for mamak restaurants, which only provide basic food outlet facilities, to price their dishes the same as those in hotels, and this is considered as excessive profiteering,” Wan Uzir explained.

MDTCC minister Datuk Seri Ismail Sabrti Yaakob last Thursday announced the new act would come into effect on April 1.

Under the Price Control and Anti-Profiteering 2010 Act, corporations that commit the offence for the first time will be liable to a fine of up to RM500,000, and second offence penalty will be up to RM1 million.

Whereas individual first time offenders will be subjected up to a RM100,000 fine or three years’ jail or both, while second timers are liable up to a RM250,000 fine or five years’ jail or both.

Under the new Act, an Advisor Council is established to monitor prices as well as being responsible for the enforcement of the legislation. The council has the full authority to determine the action to be taken against any reported offenders.