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High prices hit consumers hard
Published in The Saudi Gazette on 05 - 04 - 2011

THE government must crack down hard on those unscrupulous businesspeople who are raising prices unnecessarily, which is causing further hurt to hard-pressed consumers.
Coordinated and urgent action is needed to stop the money that is being handed out by the government in terms of stipends, bonuses and social welfare from ending up in the pockets of greedy businessmen.
There have been price hikes of up to 30 percent and more for everything from baby milk products to coffee. This is unacceptable and only likely to stir discontent.
Just a few days ago an official from the Jeddah Chamber of Commerce and Industry's Food and Beverages Committee, reportedly said it was “mystifying” that some medicines are sold in the Kingdom at double the price of the same medicine in Europe, or even in Lebanon. He added that it was “not logical” for prices to “double overnight”. He added that it was clear there was an “insufficient number of inspectors”.
It is understandable that prices rise from time-to-time because Saudi Arabia is not immune to global economic changes and shocks, but certainly not in this manner.
The Consumer Protection Association (CPA) should work closely with the Ministry of Commerce and Industry to ensure strict monitoring takes place in the marketplace.
The CPA is a non-governmental organization which is self-financing and has over 250 members who are experts in consumer protection and consumerism, but its reach is limited. It currently has its headquarters in Riyadh, a branch office in Jeddah and another planned for Dammam.
The CPA does not have any powers to prosecute offenders, but its job is to report any wrongdoing to the Ministry of Commerce and Industry for further action and sanctions. The ministry should consider steep fines – not the current SR500 to SR1,000 - for violators.
The CPA, however, also has to inform citizens of their rights against “fraud, adulteration, falsification, and tampering with commodities and services, as well as to protect consumers against exaggerated prices and misleading advertisements in newspapers and on television”.
It is also up to consumers – citizens and expatriates alike – to continue to raise their voices against this type of economic and financial exploitation. To do this, they have to form strong consumer organizations to protect and promote their rights. __


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