An Auckland dairy has come under fire for reselling Gilmours hand sanitiser for $59.90 - almost $45 more expensive than purchasing it at the wholesale supplier.
The dairy's price-gouging was revealed by a local on the Facebook group, Birkenhead and Northcote Community, on Sunday.
"[The dairy] has Gilmours hand sanitiser for sale for $59.90. Gilmours sell the same product for $15+GST," reads the original post. Newshub has decided not to identify the dairy.
The post was later updated to include a response from the dairy owner, who Newshub has also decided not to name.
In the message, the owner attempted to validate the price hike and said they understood why locals "feel angry".
"I understand why you feel angry but [I] need to explain [the] reasons behind," says the response.
"Yes, the price we put for hand sanitiser is quite high, that is because as you also know it is very difficult to get them. My husband has spent much time [getting] just 1-2 bottles... so we stop getting them because it is too troublesome. The bottles you saw are all we have in [the] shop.
"We prefer to use them in [the] shop for our customers (there's always a bottle on the counter). So the [final] price [will] be that. I don’t know how to explain more in English but... we feel sad if our neighbors think about us in a bad way while we are trying the best to serve our community.
"The good things we do are not recognized by people but once there is a blemish, all our efforts [are] gone. Come to know us and talk to us if you feel uncomfortable. Your post puts us in hurt."
But locals remain unconvinced, with many calling for the dairy to be boycotted and reported for price-gouging.
"People remember places that take the mickey during hard times, so people end up taking their business elsewhere, which kills the small shop's livelihood... people will remember and share this with people they know, causing people to shop elsewhere even in the long-term... because they don't like being taken advantage of," one person commented.
"Why would you report? Just don't buy it, simple," argued another.
According to watchdog Consumer NZ, retailers who increase their prices during the lockdown won't be breaking the law - unless they lie about their motivations.
There have been reports of a number of businesses hiking up their prices in a bid to combat the financial impacts of the alert level 4 lockdown, which has seen the closure of all non-essential businesses and requires New Zealanders to remain at home.
Some supermarkets have also come under fire, with reports of bread being priced at $8 a loaf and cauliflower selling for $14.
"We have been getting complaints for a few weeks now," Consumer NZ head of research Jessica Wilson told The AM Show in late March.
"The main complaints we're getting are around things like hand sanitiser, facemasks - people are walking into the chemist and finding products on sale for $50, $60. Something they used to pay $4 for is now hugely inflated."
The Prime Minister has also warned retailers against price-gouging, even asking to be informed of alleged culprits during press conferences.
"It is not acceptable to do what they call price-gouging. That is not allowed so we will be keeping a very close eye on where we might see those issues," she said.
Wilson reiterated that price-gouging technically isn't illegal.
"What is illegal is to mislead consumers about the reasons why prices are going up. That would be a breach of the Fair Trading Act... in that case you could complain to the Commerce Commission."
Examples of potential price-gouging can be sent to pricewatch@mbie.govt.nz. People are asked to supply photos and receipts in their report in case of investigation.
"No one wants to see anyone take unfair financial advantage from this extraordinary period," Ardern said on March 30.
"To be clear, it is not illegal for businesses to increase their prices - but the Fair Trading Act prohibits misleading and deceptive content, and false representation."
