Authorities in Venezuela have confiscated almost 4 million toys from Kreisel, one of Venezuela’s leading distributors, for hiking up prices and hoarding products, the National Superintendence for the Defense of Socioeconomic Rights (SUNDDE) said.
The Venezuelan government said the toys will be distributed to the poor.
SUNDDE said on Twitter that Kreisel is abusing its market position and that its speculative profit margin is estimated at between 16.9 and 57.4 percent.
Two of the company’s managers were arrested on Friday.
According to SUNDDE, the company has been hoarding toys since 2009.
Although, business owners say the order is a populist political move, and pushing them towards bankruptcy.
This is not the first time Venezuela has ordered price cuts on retailers, or mobilised armed units to enforce it.
In late 2013, the country introduced laws allowing the government to fix prices and dictate profit margins.