Will the Competition Act 2010 curb price hikes by unethical traders?

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The Competition Act 2010's Potential to Curb Price Hikes by Unethical Traders

The Competition Act 2010 has been highlighted as a potential legal framework for the government to address and penalise unscrupulous traders engaging in unjustified price increases. A Muslim consumer group has specifically called for the enforcement of this Act to protect consumers from price gouging, particularly in response to price hikes that pre-dated the Goods and Services Tax (GST) and more recent increases attributed to flood disruptions.
Call for Enforcement of the Competition Act 2010

The Muslim Consumers Association (PPIM), through its Datuk Nadzim Johan, has urged the government to actively enforce the Competition Act 2010. This call stems from observations that some traders have elevated prices even before the implementation of the GST. More recently, prices have reportedly surged by over 100 per cent, with traders citing flood-related disruptions as the justification. PPIM believes that the Act is essential for safeguarding consumer interests against such practices.
Government Action Through the Malaysia Competition Commission (MyCC)

PPIM has specified that the Domestic Trade and Consumer Affairs Ministry should work with the Malaysia Competition Commission (MyCC) to identify and penalise traders who are exploiting market conditions. The MyCC was established with the mandate to enforce the Competition Act 2010, and the consumer group expects it to take decisive action. This includes imposing fines on businesses found to be engaging in unethical pricing behaviours, thereby holding them accountable for their actions.
Threat of Consumer Protest and Campaign

In the event that the MyCC fails to take action against traders engaging in price gouging, PPIM has indicated a readiness to escalate its response. The group has threatened to organise protests and launch a large-scale campaign to rally public support. This demonstrates a commitment to consumer rights and a willingness to exert pressure on authorities to ensure the effective application of competition law.
General Effectiveness of Competition Laws in Consumer Protection

Generally, competition laws are designed to prevent anti-competitive practices, which can include price fixing, abuse of dominant market positions, and cartels, all of which can lead to inflated prices for consumers. By promoting fair competition and deterring monopolies or collusive behaviour, these laws aim to ensure that prices are set by market forces rather than by unethical manipulation. The effectiveness of such legislation often depends on robust enforcement mechanisms, including adequate resources for regulatory bodies like the MyCC and a clear commitment from the government to prosecute offenders.

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Will the Competition Act 2010 curb price hikes by unethical traders?

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