Price gouging concerns raised for rapid antigen tests - Consumer NZ
Wednesday, 2 March 2022
Consumer NZ has raised price gouging concerns after finding some rapid antigen tests are being sold for more than two-and-a-half times their cost price.
The consumer watchdog’s spokeswoman Caitlin Cherry said its nationwide price check found single rapid antigen tests (RATs) were being sold for between $6.50 and $15 each.
The $6.50 test was sold at cost by Foodstuffs NZ, the $15 test was sold at a pharmacy in Lower Hutt, she said.
“There is no set price, and it is actually up to the retailers how much they sell them for. Our understanding is the cost [price] is around $6.50,” Cherry said.
As well as Foodstuffs, which owns the Pak ‘n Save and New World supermarket brands, The Warehouse Group has started selling RATs for $31.99 for a pack of five, at a cost of about $6.40 each.
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That compared to Australian-owned Chemist Warehouse which was charging $44.99 ($9 per test) for its five-test RAT kits, made by the same manufacturer.
Sports supplement website Sprint Fit was selling the same testing kit for $69 ($13.80 per test).
People can still go to their local testing centre or GP for a free test if they are symptomatic or a household contact of someone with Covid-19, and from Tuesday , the Ministry of Health has been sending free RAT kits to household contacts.
Covid-19 Response Minister Chris Hipkins said at the 1pm briefing on Wednesday that it was “critical” to make the roll-out of RAT testing as smooth as possible.
Hipkins advised people against stockpiling tests, and said 'there will be plenty to go round.'
Cherry said Consumer NZ had previously observed high prices for N95 masks.
“We did see potential price gouging when there was demand for N95 masks, but things settled down when more supplies came in. We understand that more supply of the RAT tests to pharmacies, supermarkets, so we expect that price should settle.”
In Australia price gouging for RATs raised the prices to between A$20 and A$30 (NZ$21.47 and NZ$32.2) a test.
The Australian Competition and Consumer Commission stepped in after receiving more than 1800 consumer complaints related to RATs pricing.
It is now illegal in Australia for retailers to sell tests for more than 20 per cent above the wholesale value.
Consumer NZ hoped that situation would be avoided in New Zealand, Cherry said.
“We expect to see RATs to be sold for a reasonable price, which is anything under $15 per test. We will be keeping a close eye on this, and will encourage our consumer watchdog, the Commerce Commission and the Ministry of Business, Innovation and Employment to act if there were stark examples of price gouging.
“But we are hoping that retailers will do the right thing and charge reasonable prices for these RAT tests,” she said.
Price of rapid antigen tests around the world:
United Kingdom: £9.80 (NZ$19.32) for a pack of five tests, $3.80 per test.
France: Between €4 and €5 (NZ$6.60 to NZ$8.20) per test in pharmacies, but $2 per test in supermarket multipacks. But for those outside the French healthcare system and the unvaccinated the cost was $41 per test.
Germany: Free.
South Africa: 380 rand (NZ$36.50)
Thailand: 35 to 50 baht (NZ$1.60 to NZ$2.20)
United States: Price varies wildly depending on area and whether you have health insurance. RATs can be bought at most pharmacies for US$15 (NZ$22)