SINGAPORE — Retailer 3 Stars has apologised after complaints that it was profiteering from face masks and has reduced the prices, the Ministry of Trade and Industry (MTI) said.

In a media statement on Tuesday (Feb 25), MTI said that it had concluded its investigation of 3 Stars and, in view of the apology and price reduction, would be taking no further action at this time. It also noted that the cost price of masks had risen significantly.

The ministry issued a letter of demand to 3 Stars on Feb 10 following complaints from the public.

The retailer was asked to submit documents explaining the price hike for masks, including cost prices and profit margins. The retailer was given two days to respond with the appropriate documents.

Initial responses to the letter of demand, however, were incomplete. Inspections of various 3 Stars’ premises were then carried out on Feb 17.

The firm co-operated with the inspections at its company headquarters, warehouse and several outlets, MTI said.

Through the inspections and interviews with the owners and its staff members, 3 Stars provided MTI with the information required, including records and invoices showing significant increases in the cost price of face masks from their overseas suppliers.

In addition to the apology and price reduction, the firm has undertaken to take greater care in their pricing practices, the ministry said.

The firm could have been fined up to S$10,000 for a first offence, and up to S$20,000 for the second and subsequent offences.

MTI said that it will continue to monitor 3 Stars’ pricing practices and reserves the right to take further action under the Price Control Act if warranted.

It reminded all businesses to exercise corporate social responsibility and not take advantage of the Covid-19 outbreak for sales.

Consumers may report errant sellers to Consumers Association of Singapore (Case) at 6100 0315 and submit feedback via its website.