Wholesaler claims retailers deliberately holding back on rapid antigen tests to push up demand

Aussies are looking everywhere for RATs, but a man who claims to have access to millions claims we’re being taken for a ride.

There are frantic scenes across the nation as Australians try to get their hands on rapid antigen tests — fuelling a reported shortage of supply.

However, a Sydney-based medical supplies importer and wholesaler — who is selling them on to retailers and says he is able to order up to 100 million tests — claims this is not true.

Scott Huntsman, the CEO of All-Cast PPE, told news.com.au that a “race to the bottom” is now on, claiming some retailers — mainly a handful of rogue convenience stores and some eateries jumping on the bandwagon — are driving up demand by drip-feeding the tests to the public to create the illusion that there are none available.

He says this is resulting in a surge in black market tests and skyrocketing prices.

The claim there is no shortage has been disputed by some pharmacies. One pharmacist told news.com.au he had 6000 tests on order from wholesalers and only 100 showed up last week.

However, Mr Huntsman claimed there “really isn’t a shortage of tests”.

This is despite there being no tests available on the All-Cast PPE website — with the company telling news.com.au the only tests it could sell to the public were subject to TGA approval which has not yet been granted.

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Australians are searching high and low for tests. Picture: Richard Dobson

However, Mr Huntsman claimed his company was able to bring millions of tests, from a major Chinese supplier, into Australia.

“There’s some issues with getting freight and with the recent media attention about price gouging, we’re also seeing now the factories reflect on that and raising the price on us,” he said.

Rubbing salt in the wound for Australians who are paying up to $30 a pop, he said All-Cast PPE buys the tests from Chinese factories for just $3 a unit.

They then sell these onto retailers across Australia for roughly $5-6 a test — meaning some retailers are marking them up by six times the price they paid for them.

Perhaps more concerning is that Mr Huntsman claims some retailers he has spoken to have openly admitted they’re being slow to purchase tests or place them on shelves to give the appearance of short supply — in order to drive up demand and prices.

“One convenience store owner who purchased from us told us he was going to buy a carton of 288 tests, and he was like ‘I’ll only put half of them out and then everybody will buy them’. That was his plan,” he said. “I was like ‘why would you do that?’”

Scott Huntsman, the CEO of All-Cast PPE, said he buys the tests for just $3 a unit.

As burger chains and corner stores flog tests at eye-watering prices, Mr Huntsman believes there should be regulation on who is able to sell them — like alcohol or cigarettes.

“$30 a test is ridiculous,” Mr Huntsman said. “These things should be regulated. They shouldn’t be sold by just anybody.

“We saw the same thing happening with masks we saw it happen with hand sanitiser. We saw even ventilators and all that type of stuff, the price gouging on all those products is ridiculous.

“So, we’ve seen it, we’ve experienced it, but we’re still allowing it to happen.”

Despite Mr Huntsman’s claims All-Cast PPE is selling tests on its website for $18 for a single unit on back order only. Mr Huntsman said these tests cost $14 each to buy and transport, and they still need to be approved by the TGA.

In its current investigation into the prices of rapid tests the ACCC says it will be closely examining “claims that the current pricing levels are due to challenges in obtaining supply” — suggesting that a lack of supply may not be the reason retailers are pushing prices up.

Another area of concern is the emergence of black market tests — which Mr Huntsman said he has been offered.

“These things were a copy – so these things didn’t have the Australian regulated internal paperwork that’s required by the TGA,” he said.

“So they had the European version, and they selling it under the sponsor’s TGA (approval). But yet, the sponsor is unaware of it. And then just obviously just trying to get whatever they can out of it.

“There’s a lot of counterfeit product out there available, especially with these tests, because there was counterfeit masks as well. So it’s literally just people trying to make money at the expense of the emotional consumer.”

A large queue of people outside a Hawthorn East pharmacy lining up for Rapid Antigen Tests. Picture: Alex Coppel.

In a warning to Australians who are able to get their hands on a real test, he said there are a couple of things they should look out for — particularly since we’re in the midst of summer.

He said the tests must be kept in cool temperatures as heat renders the kits ineffective — particularly if it is over 30C.

He recommended that Aussies keep them in the fridge as the mercury rises this summer. He said a common mistake is people leaving them in their car for use at a later date.

“We’ve been told many times not to leave our dogs or kids in the car. No comparison, but it does get really, really hot in a car, which renders the test inaccurate,” he said.

He also advised against keeping them in cupboards that get warm — saying that heat damages the strips that give you your result and also disrupts the chemical solution in the tests.

This all comes as the ACCC, on Tuesday, announced an investigation into alleged price-gouging on rapid antigen tests — saying it is aware of significant public concern.

The watchdog says is currently contacting suppliers and monitoring the situation very closely.

It will be examining claims that the current pricing levels of rapid antigen tests are due to challenges in obtaining supply of those tests.

“We are seeking information from suppliers about their costs and the current pricing of rapid antigen tests. We are also asking them about their current stock levels, and the amounts on order, and about their expectations about when additional tests may become readily available to consumers,” ACCC Chair Rod Sims said.

“We are also contacting major retailers and pharmacies seeking similar information and reminding them that they need to be able to substantiate any claims they make to consumers about the reason for higher prices.”

Chair of the Australian Competition and Consumer Commission Rod Sims at the National Press Club in Canberra. Picture: NCA NewsWire / Gary Ramage

While suppliers are generally able to set their own prices, businesses must not make false or misleading statements about the reason for high prices.

“We won’t be shy to name and shame suppliers and retailers we consider to be doing the wrong thing,” Mr Sims said.

The watchdog said, in certain circumstances, excessive pricing of essential goods or services may also be “unconscionable”.

Businesses must also set their prices independently of their competitors and not collude about pricing, it said.

The ACCC will review the information received from suppliers, retailers and the public.

“We’ve also had over 100 consumer contacts to our Infocentre or through the online form. We will review the information received and investigate the evidence to determine if there is conduct that raises concerns,” Mr Sims said.

“The ACCC is monitoring the situation and will take appropriate action under its existing powers. The ACCC has not sought, and does not need, more powers to deal with the current situation.”