Agenda
- Background
- Comparison between the new and previous mechanisms
- Mechanism to determine “unreasonably high profit”
- SERC’s comments and recommendations
- Appendix: Exceptional scenarios and illustrations
BACKGROUND
- The Price Control and Anti-Profiteering (“PCAP”) Act 2011 was gazetted to protect consumers against making unreasonably high profit (profiteering) on goods and services by businesses. The PCAP Regulations 2014 specified a time frame (2 Jan 2015 – 30 June 2016), which was subsequently extended to 31 December 2016, in which businesses must not increase their net profit margin.
- On 22 December 2016, the Ministry of Domestic Trade, Co-operatives and Consumerism (KPDNKK) gazetted a new regulation -- PCAP Regulations 2016, which came into effect on 1 January 2017. This regulation has no expiry date, meaning that it shall be enforced until being repealed.
