Some sellers of rapid antigen tests are offering their products at exorbitant prices, the Australian Competition and Consumer Commission found.
As WA is starting to get more and more COVID-19 cases, GPs should be aware about the ups and downs of rapid antigen tests. Previously, we reported on the risks and benefits of these tests, and now that they have been officially approved for WA, a new issue has arisen: overpricing.
According to a recent press release from the Australian Competition and Consumer Commission (ACCC), some retailers in Australia are selling RATs for as much as $70 per test, despite wholesale costs for these tests ranging between $3.95 and $11.45.
ACCC Chair Rod Sims says that, in some cases, retailers are trying to sell RATs for hundreds of dollars. “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 Rod said.
So far, the ACCC has received over 1,800 reports from consumers across Australia about rapid antigen tests since 25 December 2021.
“There are several businesses that have repeatedly come to our notice thanks to the information provided by the public. We are asking those businesses to urgently explain the prices they are charging,” Mr Rod said.
Among the reports received by the ACCC, most concerned pharmacies (879 complaints or 47% of reports), followed by convenience stores, tobacconists and supermarkets (283 complaints or 15%), and petrol stations (272 complaints, 15%).
The ACCC also noted that the prices reported by consumers seem to increase over time. Initially, the average price reported for RATs was around $20 per test, with the highest reported prices ranging between $68 to $79.
More recently, however, from 7 January 2022, the average reported price of RATs was $24 and the highest prices hovered around $80 to $100 per test. According to the ACCC, some of the highest reported prices involved online retailers.
“In the middle of a significant outbreak of COVID-19 in a pandemic, the excessive pricing of rapid antigen tests required to diagnose the illness and protect other members of the public, is of significant concern to the ACCC,” Mr Sims said.
“We realise demand and supply chain issues have impacted since then, but our initial research suggests that a price of around $20 per test or more, however packaged, may be hard to justify based on the average wholesale costs and such retailers should explain why the price is so high,” Mr Sims added.