The department said in a statement it noted with regret the intentions of the group not to adhere to the agreement.
The department's director-general, Crispian Olver, said the agreement, signed between organised business, labour and government in September last year, "explicitly commits retailers like Mr Price.
"In terms of this agreement the real cost of plastic bags has now been made clear.
"Consumers can see exactly what they are paying for, and they can make a decision about whether they want to pay for the new plastic bags or not".
The agreement had been negotiated under the auspices of Nedlac, and was binding on the entire business sector, including retailers such as Mr Price.
Mr Price's intention of not adhering to the provisions of the agreement was jeopardizing the implementation of the agreement, and as a result the environment may be seriously damaged, endangered, or detrimentally affected. – Sapa.
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