Profiteeringis apejorativeterm for the act of making aprofitby methods consideredunethical.[1][2][page needed]
Overview
editBusinessowners may be accused of profiteering when theyraise pricesduring an emergency (especially a war).[3][page needed]The term is also applied to businesses that play onpolitical corruptionto obtain government contracts.
Some types of profiteering are illegal, such asprice fi xing[4][page needed]syndicates, for example onfuel subsidies(seeBritish Airways price-fi xing allegations), and otheranti-competitivebehaviour. Some are restricted by industry codes of conduct, e.g. aggressivemarketingof products in theThird Worldsuch asbaby milk(seeNestlé boycott).
Types of profiteering
editLaws
editProfiteering is illegal in several countries, including but not limited to:
- UK: Chapter 1 of theCompetition Act 1998
- Germany:§ 291 StGB(Criminal Code) – up to 10 years' jail maximum penalty
- Austria:§ 154 StGB– up to 5 years' jail maximum penalty
See also
edit
- Enshittification
- Hoarding (economics)
- Business ethics
- Price gouging
- Product sabotage
- Rent seeking
- Supracompetitive pricing
- Ticket scalping
- Usury
Example cases
editReferences
edit- ^"Profiteering".Oxford Learners Dictionaries.
- ^Ray, S. K. (2004).Polity And Economy Of The Underworld.PHI Learning Pvt. Ltd.ISBN978-8120325777.
- ^Hughes, Solomon (2007).War on Terror, Inc: corporate profiteering from the politics of fear.Verso.ISBN978-1844671236.
- ^Neuwirth, Robert (2011).Stealth of Nations: The Global Rise of the Informal Economy.Random House Digital, Inc.ISBN978-0307906809.
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