Wednesday, 24 Apr 2024

Supermarket illegally hiked price of flour to £22 during Covid panic-buying

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Food World in Sparkhill, Birmingham, was investigated after customers told authorities prices had suddenly shot up at the height of COVID-19 panic-buying phase. One woman said she felt “cheated” after being charged nearly double the usual price for a 25kg Elephant-branded pack of chapatti flour, a staple in Asian cuisine.

Toilet roll, usually priced at £1, was also ramped up to £1.49, Birmingham City Council’s Trading Standards found.

The owner of the business, Amjad Rehman, 56, admitted two counts of engaging in a misleading commercial practice on behalf of himself as well as his company Rehman Foods. His firm was fined nearly £2,000, reports Birmingham Live.

Birmingham Magistrates’ Court heard how the woman travelled more than 40 miles from Banbury, Oxfordshire, to the shop for the flour.

The Chairman of the Bench said: “The pricing in a sense is immaterial, the offence was committed. From a trading point of view it gives a bad impression for the business was attempting to price gauge particularly at a time when an enormous amount of individuals were under pressure to find food.

“I accept there was no malintent but the impression was not a pleasant one.”

When representatives from the council visited the shop to challenge Rehman on March 19 last year about the toilet roll prices, he dismissed it as a “mistake”.

But the woman who purchased the flour contacted the authority days later and officials visited the shop again.

Emma Hall, prosecuting, said: “She felt cheated. When she got home she looked at the bag and realised they had stickered over the real price. She mentioned it to the man in the shop and he said that was the price he had paid for them.

“What isn’t clear is what the price was to the consumer. But you can’t dual price and can’t inflate price when demand is high.”

The businessman, from Edgbaston, Birmingham, claimed he only charged the prices he himself had paid to wholesalers.

The court heard he had found the situation stressful.

Amrisha Parathalingam, defending, said: “This has had a very stressful impact on him. It’s a small business. In terms of the flour he tells me either he or a staff member had to queue at the wholesalers for two and half hours and were allowed two bags of flour each.

“They were sold at an inflated price. He realises he should have reported this to the council instead of passing it on to his consumers. The company is running a loss currently, it is not doing very well.”

Rehman was given a conditional six-month discharge on one of the offences, but fined £180 for the other. He must also pay a £34 victim surcharge and £717.50 in costs.

Rehman Foods was fined £300 and similarly saddled with a £34 victim surcharge and £717.50 in costs.

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