CTC cracks down on Profeed’s tied selling practice
The Competition and Tariff Commission (CTC) has issued a cease and desist order against Profeeds, a major supplier of poultry products for engaging in “tied selling” practices.
The order prohibits Profeeds from forcing customers to purchase broiler stockfeed as a condition of buying day-old chicks.
Tied selling, also known as bundled selling, occurs when a company requires the purchase of one product (in this case, broiler stockfeed) in order to buy another (day-old chicks). This practice can limit consumer choice and potentially inflate prices.
The CTC’s investigation found that Profeeds had been conditioning the sale of day-old chicks on the purchase of their brand of broiler stockfeed.
“The Competition and Tarriff Commission has issued an order against Profeeds to cease and desist from tied and conditional selling of day[1]old chicks and broiler stockfeed,” said CTC in its latest newsletter for the fourth quarter of 2023.
“This implies that customers are not required to buy broiler stock feed as a condition for purchasing day old chicks.”
Section 28 of the Competition empowers CTC to undertake investigations into any restrictive practice which it has reason to believe exists or may come into existence.
CTC also undertook investigations in the branded uniforms market which affected tertiary learning institutions.
Tertiary learning institutions were making students buy branded uniforms exclusively from the college, without giving them a choice of other suppliers.
Students were invoiced during enrolment for branded uniforms (sporting attire and protective clothing) and if students got uniforms elsewhere, they still owed the institution money for the cost of the uniforms upon completion of their studies which would result in them failing to collect certificates.
The commission’s investigations are still going on. The CTC also investigated restrictive practices in the medical aid sector whereby CIMAS Medical Aid Society deregistered Family Medical Clinic as one of its service providers.
The commission’s negotiations with the medical aid facilitated the readmission of Family Medical Clinic on the direct payment system of CIMAS as a service provider.-ebusinessweekly
