The Australian Competition and Consumer Commission (ACCC) has declared that reports of Rapid Antigen Tests (RATs) for COVID-19 being sold at prices between $20 and $30 per test – and sometimes more than $70 a test – are of “significant concern” and giveg “rise to concerns”.
Chair of the ACCC, Rod Sims said the Commission was examining reports of information so far received from the public, suppliers and retailers about the cost and prices of rapid antigen tests across the country.
He said the wholesale prices of the tests ranged between $3.95 and $11.45 a test.
“There are several businesses that have repeatedly come to our notice thanks to the information provided by the public,” Mr Sims said.
“We are asking those businesses to urgently explain the prices they are charging,” he said.
“The ACCC has contacted more than 40 test suppliers, major retailers and pharmacy chains seeking information about their costs, current pricing and stock availability, and reminding them they need to be able to substantiate any claims they make to consumers about the reasons for higher prices.”
Mr Sims said the ACCC had written to suppliers and retailers about their costs and retail sales prices and was considering the responses received so far.
“The supply chain is often complex, with several businesses involved from the initial supply to the retail sale of tests to consumers,” he said.
“Retailers operating under the same brand or chain may be setting prices and selling tests independently of the other stores in the chain.
“This means the wholesale and resulting retail prices can vary significantly.”
Mr Sims said the ACCC’s inquiries so far confirmed that a large volume of orders for the tests had been placed.
“However, given delays in the supply of tests, or test parts, into Australia, delays in distribution due to COVID illness or isolation requirements within workforces and at the retailer level, there is significant difficulty forecasting accurate supply,” he said.
“The ACCC’s initial analysis shows increasing sales by service stations and convenience stores.
“These channels have now become a common source of the pricing issues consumers have reported.”
Mr Sims said the ACCC was also continuing to investigate potential scams after receiving increasing reports of online stores wrongly accepting payment, “meaning the stores did not intend to supply the tests or knew, or should have known, that they would not be able to supply the tests in a timely manner”.
