The Kogan.com Ltd (ASX: KGN) share price is struggling through the first week of 2022, despite only silence from the company.
However, it’s recently made news as some claim the online retailer was one an accessible marketplace where overpriced COVID-19 rapid antigen tests have been found.
At the time of writing, the Kogan share price is $8.23. That’s 4.5% lower than its previous close and 7% lower than it was at the end of 2021.
Let’s take a closer look at today’s news regarding Kogan.
Kogan share price sinks amid ACCC warning
The Kogan share price is sliding this week despite no news having been released by the company.
Meanwhile, claims its marketplace hosted sellers gauging prices for COVID-19 rapid antigen tests have emerged.
The Australian Competition and Consumer Commission (ACCC) addressed the issue yesterday as its chair Rod Sims warned retailers not to engage in “cartel conduct”. Sims stated:
The most excessive pricing, so far, we’ve seen on things like… Kogan, where they possibly allow consumers to post goods.
The watchdog chair also noted Ebay Inc (NASDAQ: EBAY) had been the source of many complaints of price gauging and urged Australians to continue reporting instances of overpriced tests to the ACCC.
Twitter Inc (NYSE: TWTR) users are posting images of rapid antigen tests for sale for $44.99 each, or 20 for $667.99 on Kogan.
However, the product in question doesn’t appear to be available on Kogan’s site at the time of writing. It’s also unlikely the alleged instance is weighing on the Kogan share price this week.
Rapid Antigen Test profit gouging by @Kogan
20 test box for $667.99
Single test price?
$44.99
Free shipping.
What say you @acccgovau pic.twitter.com/3uOStDq7g5
—
Richard Ings : 8.5 billion doses and counting (@ringsau) December 31, 2021
In an ACCC statement, Sims noted:
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.
Demand for the tests has likely been exacerbated by new testing requirements introduced by the federal government late last month. It’s also likely been driven by some states, including Queensland, requiring arrivals to conduct a rapid test before entry.
Right now, the Kogan share price is 14% higher than it was this time last month. However, it’s still 58% lower than it was 12 months ago.
The post Why is the Kogan (ASX:KGN) share price having such a lacklustre start to 2022? appeared first on The Motley Fool Australia.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Kogan.com ltd. The Motley Fool Australia owns and has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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