‘Clearly outrageous’: RAT rorts revealed in ACCC analysis

The competition regulator has released its analysis of rapid antigen test pricing, showing retail tags as high as $500 for two tests.

A customer holds his (RAT) rapid antigen tests after purchasing them from a chemist in Sydney. Picture: NCA NewsWire / Nikki Short

Service stations and convenience stores are coming under the microscope of the competition regulator after it said it had “significant concerns” about small business charging over $70 per rapid antigen test, despite wholesale costs ranging between $3.95 and $11.45 a test.

The Australian Competition and Consumer Commission has received over 1800 reports from consumers since it first announced its investigation in December, with service stations and convenience stores the most complained about.

Some retailers are reportedly refusing to provide receipts or issuing incorrect receipts to consumers, with complaints of outlets recording the sale of a test as a “sandwich” or requiring customers to pay in cash.

The ACCC has contacted more than 40 test suppliers, major retailers and pharmacy chains seeking information about their costs amid concerns they were incorrectly pricing tests or had failed to provide a reasonable explanation to consumers.

ACCC chair Rod Sims said prices reported for rapid antigen tests are currently higher than in the initial days of its probe in December, but added reports to the regulator would be at the higher end of the range as consumers will not report more reasonably priced retailers.

“At the extreme end, we have received reports or seen media coverage of tests costing up to $500 for two tests through online marketplaces, and over $70 per test through convenience stores, service stations and independent supermarkets, which is clearly outrageous,” Mr Sims said.

“The supply chain is often complex, with several businesses involved from the initial supply to the retail sale of tests to consumers. This means the wholesale and resulting retail prices can vary significantly.”

Mr Sims said there were several businesses that have repeatedly come to the ACCC’s notice thanks to the information provided by the public.

“We are asking those businesses to urgently explain the prices they are charging,” he said.

As part of its investigation, the ACCC is looking at reports of single tests being sold at around $30 or above from certain stores. King of the Pack and Metro Petroleum stores were signalled out by the ACCC after receiving 70 and 40 reports respectively.

“The complaints are limited to a small number of individual stores in these chains and the majority of stores in those chains have not been the subject of complaints to us,” Mr Sims said.

“We are writing to those traders to validate the reports and asking them to explain their prices so we can work out what’s going on.”

The most reported traders are pharmacies (879 complaints, 47 per cent of reports), followed by convenience stores, tobacconists and supermarkets (283 complaints, 15 per cent), and petrol stations (272 complaints, 15 per cent).

The ACCC was working with the Australian Federal Police on matters that may be a breach of the determination under the Biosecurity Act introduced by the Government recently, which came into force on January 8, and will remain in place until February 17. The determination prohibits a person from reselling, or offering to resell, rapid antigen tests bought at retail level for mark-ups above 20 per cent.