Sino-Singapore Jingwei, February 2 (Song Yafen) Jiangsu Yuyue Medical Equipment Co., Ltd. (hereinafter referred to as Yuyue Medical) was recently fined 2.7 million yuan by the Market Supervision Bureau of Zhenjiang City, Jiangsu Province due to driving up the price of oximeters during the epidemic.
In this regard, some netizens said, "The penalty is less!"
In fact, Yuyue Medical is not the only company that took advantage of the shortage of anti-epidemic products during the epidemic and sharply increased prices to make money for the country.
On February 1, the State Administration for Market Regulation announced the fifth batch of typical cases of investigation and punishment of illegal drugs and medical supplies related to the epidemic. In addition to Yuyue Medical, Chongqing Tongtai Pharmacy Chain Co., Ltd. was also punished for driving up drug prices.
The report pointed out that the sales price increase of Yuwell medical oximeter was significantly higher than the increase in cost, which pushed up the market sales price of Yuwell brand oximeter.
Taking the finger clip pulse oximeter (model: YX306) produced by the company as an example, the average cost of production and storage in December 2022 will increase by 47% compared with November.
The average selling price to dealers rose from 100 yuan/set to 231.78 yuan/set, an increase of 131.8%; the highest price rose to 254.15 yuan/set, an increase of 154.2%.
China is not without a regulatory system for companies to drive up prices when supplies are in short supply during the epidemic.
As early as 2020, the Supreme People's Court and other departments jointly formulated the "Opinions on Legally Punishing Illegal Crimes that Hinder the Prevention and Control of Novel Coronavirus Infected Pneumonia Epidemic", proposing that "during the epidemic prevention and control period, violations of relevant state market operations, price management, etc. It is stipulated that hoarding, driving up the prices of masks, goggles, protective clothing, disinfectant and other protective equipment urgently needed for epidemic prevention and control, medicines, or other items related to people's livelihood, making huge profits, illegal gains, or other serious circumstances seriously disrupted the market. If there is no order, it shall be convicted and punished as the crime of illegal business operation in accordance with the provisions of Article 225, Item 4 of the Criminal Law."
According to this provision, if the circumstances are particularly serious, the offender shall be sentenced to fixed-term imprisonment of not less than five years, and shall also be fined not less than one time but not more than five times the illegal income or confiscated property.
In December 2022, the State Administration for Market Regulation also issued the "Reminders on the Price and Competition Order of Epidemic-Related Materials" and "Reminders on Regulating the Order of Online Transactions of Epidemic-Related Materials", which clearly put forward legal red lines such as "no price gouging".
It can be said that the relevant system is not without strictness. Why do companies always challenge the bottom line of the law?
Yin Fuqiang, a lawyer from Beijing Longan Law Firm, said in an interview with Sino-Singapore Jingwei that companies know that price gouging is illegal, but they still dare to violate the law. According to reports, the proportion of being punished is not very high.
The second is that enterprises may settle economic accounts. Even if they are punished in the end, the increased profits from illegal activities minus the amount of punishment will still make a profit. It is also cost-effective to calculate economic accounts, and they will be driven by interests.
Judging from the penalty notification issued by the Market Supervision Bureau of Zhenjiang City, Jiangsu Province, the penalty of 2.7 million yuan on Yuyue Medical is a severe penalty.
The notice pointed out that during the epidemic period, the party involved pushed the market price of oximeter to rise too fast and too high, disrupting the market price order, affecting the overall situation of national epidemic prevention and control and the health of the people, and affecting a wide range of circumstances. .
However, some netizens said, "A fine of 2.7 million yuan? A price increase of 200 yuan is a matter of selling more than 10,000 machines. The fine is a drop in the bucket."
According to the "Price Law of the People's Republic of China", "Price Illegal Behavior Administrative Punishment Regulations" and other laws and regulations, if it is found that there is fabrication, dissemination of price increase information, driving up prices, hoarding, and pushing commodity prices to rise too fast and too high, the maximum penalty may be imposed. A fine of 3 million yuan.
The market economy emphasizes that "the relationship between supply and demand determines the price". Does this mean that when the demand exceeds the demand, the enterprise can raise the price arbitrarily?
In this regard, Liu Chunsheng, an associate professor at the Central University of Finance and Economics, said that under the conditions of a market economy, prices are indeed determined by the relationship between supply and demand, but the market economy itself is also an economy ruled by law, with certain rules and regulations.
Any market economy will not completely ignore the behavior of enterprises, especially violations of laws and regulations.
In addition, Liu Chunsheng emphasized that during the epidemic period, some companies drove up prices, and they did take advantage of the background of the epidemic situation. However, it is not allowed from ancient times to the present, from China to the outside world.
To do business, an enterprise must first abide by the basic rules and regulations, and secondly, it must be conscientious and have public morality.