In The News South Africa

Gauteng furniture removal companies charged for fixing e-toll levy charge to customers

JOHANNESBURG, September 12 – The Competition Commission said on Tuesday that eleven furniture removal companies and the movers’ association to which they belong are to face prosecution in the Tribunal for price fixing, involving the e-tolls levy they charge customers who transport belongings on Gauteng highways.
The companies are: Northern Provinces Professional Movers Association of South Africa (NPPMA); Stuttaford Van Lines Gauteng Hub; Pickfords Removals SA; A & B Movers; Brytons Removals; Amazing Transport; Key Moves CC; Bayley Worldwide CC; Selection Cartage; Elliot Mobility; Crown Relocations; and Magna Thomson.

The Commission’s investigation, launched in February this year, revealed that the furniture removal companies agreed under the auspices of the NPPMA to add a levy of R350 to the amount they charged to their customers transporting furniture on Gauteng highways that have e-tolls.
The Commission said the purpose of the agreement was to pass on to consumers the added costs incurred when transporting furniture using highways in Gauteng because of e-tolls since January 2014.

This agreement constitutes price fixing which contravenes section 4 of the Competition Act.

In referring the matter to the Tribunal, the Commission is seeking an order that the companies and the NPPMA contravened the Competition Act and that they all be held liable to pay an administrative penalty equivalent to 10 percent of their respective annual turnover.

ANA

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