Novel coronavirus: MTI orders retailer 3 Stars to explain mask prices following complaints

SINGAPORE — A retailer here has been issued a letter of demand over complaints that it was profiteering from the novel coronavirus outbreak, the Ministry of Trade and Industry (MTI) said.

In a media statement on Tuesday (Feb 11), MTI said that retailer 3 Stars is required to submit documents explaining the basis of its mask prices as well as its cost price and profit margins by Wednesday. 

Should the company fail to comply, it can be fined S$10,000 for the first offence and up to S$20,000 for the second and subsequent offences.

When TODAY visited the shop at Nee Soon on Tuesday, surgical masks were being sold at $5 for 5 pieces. A spokesperson for the shop said that the company had no comment and that what it has were "already in line with MTI". 

Previously, MTI issued a similar letter to retailer Deen Express, which has since apologised for its pricing strategy and has immediately corrected its prices. 

The ministry had also issued requests for information from four e-commerce platforms, Lazada, Carousell, Qoo10 and Shopee. 

The platforms have since provided the information and are working with MTI to address profiteering, the statement said.

“Profiteering is a highly irresponsible and damaging act. We urge all retailers to practice corporate social responsibility and not take advantage of the increased demand to raise prices unreasonable,” MTI said.

The Consumers Association of Singapore (Case) and the Competition and Consumer Commission of Singapore (CCCS) are closely monitoring the situation and will investigate any unfair and anti-competitive practices.

Consumers who chance upon errant sellers can report them to Case at 6100 0315.