Price Control and Anti-Profiteering Regulations 2017
In a bid to protect the rights and interests of consumers as well as to curb profitering, the Domestic Trade, Cooperatives and Consumerism (KPDNKK) ministry announced the enforcement of the Price Control and Anti-Profiteering Regulations 2016 (Mechanism To Determine Unreasonably High Profits for Goods) which came into force on Jan 1, 2017.
Gazetted on 22 December 2016, it replaces the Price Control and Anti-Profiteering (Mechanism to Determine Unreasonably High Profit) (Net Profit Margin) Regulations 2014 which expired on Dec 31, 2016. One key aspect of price control legislation is the mechanism used to work out what was “unreasonably high.”
The 2017 Regulations apply but certain categories of goods, which include food and beverages, and household goods. Household goods have been specifically defined to include non-durable household goods and personal care products purchased for personal, family or household purposes, but cosmetic products are excluded.
Also, there are changes in the mechanism to determine unreasonably high profit. Under the 2017 Regulations, the determination of unreasonably high profit is done through the mark-up percentage or the margin percentage of the goods sold or offered using the prescribed formulas.
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