Flood in Poland. UOKiK inspections. “The goal may be to cause panic, sudden purchase”

Since last week Office of Competition and Consumer Protection checks whether there is price collusion or abuse of dominant position in flooded areas. The effect of illegal activities may be, among other things, an increase in the prices of basic necessities. Entrepreneurs may face huge financial penalties for unfair practices.

Read more: “The desire to enrich themselves on the tragedy”. There will be checks, possible heavy penalties >>>

On Wednesday, during the meeting of the flood crisis team in Wrocław, the Prime Minister Donald Tusk announced that if necessary, the government would introduce official prices for some products. The media reported that some entrepreneurs had raised prices due to the flood.

– On the hotlines we have launched and at the e-mail sygnalista@uokik.gov.pl we have already received dozens of reports of various types from consumers, entrepreneurs, and generally from anyone who sees any irregularities. Indeed, these are most often situations related to price increases. (..) This mainly concerns so-called basic necessities – said the UOKiK spokeswoman.

She explained that most often it concerns “devices that are supposed to dry rooms, devices that are supposed to generate electricity, but also basic necessities such as galoshes, water or water filters”. – These are the most common signals reported by consumers or entrepreneurs at the moment – she said.

When asked about the scale of the increases, she replied that “in the case of water, it was even up to fifteen zlotys”. However, she pointed out that “fake news often appears” in connection with the flood.

– There is information that something has gone up in price dramatically. The aim may be to cause panic, a sudden purchase. Unfortunately, it is often the action of competitors or other entities – she said.

She explained that “controls and monitoring mainly concern checking whether the prices on the shelf and on the invoice match.”

The UOKiK representative also referred to the possibility of introducing official prices for so-called basic necessities, announced by Prime Minister Donald Tusk.

– I have been working in the Office of Competition and Consumer Protection for many years and I must say that this tool has probably never been used during my term of office, and it has lasted almost 20 years. (..) This mechanism must be applied in specific, exceptional circumstances – she said.

The spokeswoman also spoke about the reports that have been submitted to the Office of Competition and Consumer Protection so far. “These are often fake news, I'm not saying all of them, but they are a significant part. Someone somewhere simply heard something and notified the Office of Competition and Consumer Protection. The second type are situations where the price is the result of a shortage, i.e. the lack of a given product on a given market,” she said.

– An unfair practice, in terms of Competition and Consumer Protection, is collusion, i.e. an illegal agreement or abuse of a dominant position (..) What does this mean in practice? If we have a local market and there is only one store where we have access to water, it may turn out that there will be an abuse of a dominant position there due to the fact that there is simply no other supplier. These may be very different types of services that are only now emerging, for example transport, removals, disposal of various types of items, garbage, removal of everything that is flooded – she said.

The spokeswoman emphasized that representatives of the Office of Competition and Consumer Protection and the Trade Inspection are working on site. – We are there, in all five provinces – she declared.