Eateries told to explain high prices

  • Nation
  • Wednesday, 27 Jan 2016

SHAH ALAM: Two eateries in a hypermarket were slapped with show-cause notices to explain their high prices for iced Milo and plain water.

A kopitiam and a chicken-rice chain store have a week to justify charging RM5.90 and RM6.70 respectively for a glass of iced Milo, which were inclusive of the Goods and Services Tax (GST) and service charge.

The letter also has to explain its 80sen price tag for a glass of warm water.

Selangor Domestic Trade, Cooperatives and Consumerism Department senior assistant enforcement director Yusof Bakar said the raid was conducted following consumer complaints on unreasonable pricing.

The eateries have to furnish reasons for the prices with the breakdown of its operational costs and goods sold in the premises.

“If their explanations are found to be unsatisfactory, the same notice will be served again. They face legal action if they fail to justify the charges,” he said after a raid at the eateries here on Monday.

Yusof said the notices were served under Section 21 of the Price Control and Anti-Profiteering Act 2011 while the other information was required under Section 53 of the same Act.

“Many food and beverage business operators have cited GST, high rental and utility fees as reasons when they are flagged for charging high prices,” he said.

The department, he added, had so far this month issued compounds totalling RM1,700 to nine eateries for profiteering during its Ops Catut in Selangor.

“Last year, we received 5,987 complaints, of which 1,987 were GST-related.

“Others were all related to the food and beverage industry,” he revealed.

A total of 207 notices were issued last year, with 28 cases in profiteering.

Among them, five were charged in court, five had been referred to the deputy public prosecutor and 10 more were pending investigations, he added.

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