Profiteering (business)

Profiteering is a pejorative term for the act of making a profit by methods considered unethical.^[1]^{[page needed]}

Overview[]

Business owners may be accused of profiteering when they raise prices during an emergency (especially a war).^[2]^{[page needed]} The term is also applied to businesses that play on political corruption to obtain government contracts.

Some types of profiteering are illegal, such as price fixing^[3]^{[page needed]} syndicates, for example on fuel subsidies (see British Airways price-fixing allegations), and other anti-competitive behaviour. Some are restricted by industry codes of conduct, e.g. aggressive marketing of products in the Third World such as baby milk (see Nestlé boycott).

Types of profiteering[]

Laws[]

Profiteering is legal in most of the world except in the UK and Germany.

UK: Chapter 1 of the Competition Act 1998
Germany: § 291 StGB (Criminal Code) – up to 10 years' jail maximum penalty

References[]

^ Ray, S.K. Polity And Economy Of The Underworld. PHI Learning Pvt. Ltd. ISBN 978-8120325777.
^ Hughes, Solomon (2007). War on Terror, Inc: corporate profiteering from the politics of fear. Verso. ISBN 978-1844671236.
^ Neuwirth, Robert (2011). Stealth of Nations: The Global Rise of the Informal Economy. Random House Digital, Inc. ISBN 978-0307906809.

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[1] Ray, S.K. Polity And Economy Of The Underworld. PHI Learning Pvt. Ltd. ISBN 978-8120325777.

[2] Hughes, Solomon (2007). War on Terror, Inc: corporate profiteering from the politics of fear. Verso. ISBN 978-1844671236.

[3] Neuwirth, Robert (2011). Stealth of Nations: The Global Rise of the Informal Economy. Random House Digital, Inc. ISBN 978-0307906809.

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Profiteering (business)

Contents

Overview[]

Types of profiteering[]

Laws[]

See also[]

Example cases[]

References[]