CCA Logistics, a Calgary-based company, was charged with price gouging shortly a

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CCA Logistics, a Calgary-based company, was charged with price gouging shortly after the start of the Covid-19 pandemic in March 2020. CCA Logistics was found to be charging “highly inflated prices” for what were considered ‘essential’ products such as personal protective equipment and hand sanitizer during this international health emergency. According to CBC News reporter Marc Montgomery, on April 1, 2020 an inspector for Alberta Consumer Investigations Unit found that CCA Logistics was charging “grossly” inflated prices such as:
Vitamin C – $30 (100% markup)
Hand sanitizer – $39 (200% markup)
Lysol spray – $25 (250% markup)
Hand soap – $10 (300% markup)
3M masks – $120 (400% markup)
At the time, only Alberta, B.C. and Saskatchewan had specific legislation against price gouging before the pandemic began. The Canadian Consumer Protection Service received over 8000 complaints of price gouging on essential products by the end of March 2020, administered over 500 warnings and referred over 200 cases for police and bylaw investigations. Ontario soon added their own rules, and Nova Scotia invoked its Emergency Management Act using the standard language that no person “may charge higher prices for food, clothing, fuel, equipment, medical or other essential supplies or for the use of property, services, resources or equipment than the fair market value of the same thing immediately before the emergency”.
The penalties for price gouging in Canada can be applied to individuals, corporations, and directors with fines of up to $100 000 and possible imprisonment. Even though the Canadian penalties for price gouging are considered severe by some, others argue that they ultimately do little to deter this activity and can simply be factored in by companies as the cost of doing business.
Question:
Based on what you have learned in the course so far, should companies be allowed to do whatever they can to make money? Was CCA Logistics doing something wrong in making use of this opportunity to increase prices? Incorporate two of the case studies from the discussions (Chapters 1 to 7) to help support your argument.

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