Australia's consumer watchdog received almost 4,000 complaints about the price of rapid antigen tests in just one month — an average of 121 reports a day.
The majority of complaints the Australian Competition and Consumer Commission (ACCC) received between 25 December last year and 26 January were related to pharmacies - 1,309 or about 34 per cent of the complaints.
This is followed by 781 from petrol stations, or 20 per cent, and 764 from convenience stores, tobacconists and supermarkets, another 20 per cent.
The ACCC said the large number of complaints it has received has sparked an investigation into possible breaches of consumer law.
Some 50 sellers of the tests have now been asked by the ACCC to explain their costs and pricing.
The retailers will also need to verify claims they made to consumers about why they were charged high prices.
Referrals have also been made to the Australian Federal Police and the Therapeutic Goods Administration after tip-offs about alleged illegal reselling and packet splitting, the ACCC said.
"Community concerns about sales practices for rapid antigen tests (RATs) remain very high, for good reason," ACCC chair Rod Sims said.
Signage notifying customers that Rapid Antigen Test (RAT) kits are sold out is seen on the entrance to a chemist in Sydney, Source: AAP
"We thank the consumers who have taken the time to pass on to us crucial information about what is happening in this market.
"These reports, and the public scrutiny, are helping to keep prices at lower levels than otherwise."
Up to 95 per cent of complaints made to the ACCC since 25 December have been about rapid antigen tests. Almost two-thirds of those complaints came from NSW.
Mr Sims said the ACCC will continue to name business chains whose stores are reported to have engaged in bad behaviour.
“Businesses now know we will be in touch very quickly if they choose to impose unjustifiably high mark-ups on rapid antigen tests, or make misleading statements to consumers," he said.
The ACCC said the average price of tests in pharmacies based on consumer tip-offs has recently been around $21.
They say most pharmacies appear to be charging between $15 and $25, however, there are outliers with much higher prices.
“We are looking at reports of single tests being sold for $30 or more from certain stores," Mr Sims said.
The ACCC is also investigating claims by a number of suppliers that government entities of rapid antigen tests from suppliers who had existing contracts in place.
The Department of Health in January said reports that RAT kits are being redirected to the Commonwealth Department of Health were untrue.
"The Department has made purchases in accordance with Commonwealth Procurement Rules, and has not sought to place itself ahead of other commercial and retail entities," it said in a statement.
"While we are aware there are supply constraints within the market, it is expected supply will normalise over the coming weeks."
Mr Sims said ACCC investigators "are speaking with the suppliers involved and will look to address any misrepresentations identified."
“The ACCC takes this opportunity to remind suppliers about the importance of honouring any contractual arrangements for supply, and of being honest about the reason why rapid antigen tests may currently be unavailable," he said.
"Suppliers must be able to substantiate any claims they make about test availability, and we are asking them to do so.”
With additional reporting by SBS News.
