The Consumer Protection Commission will impose sanctions between 10 and 50,000 euros for each item for which an unjustified price increase is established. This was announced by the chairwoman of the commission, Maya Manolova, on the air of “Hello, Bulgaria”. The inspections are aimed at food products, with the goal of achieving price reductions and fairer value for consumers.
„If they cannot prove that the price increase compared to the beginning of August is economically justified, we will punish them with severe sanctions”, said Manolova.
According to her, retail chains must present evidence that changes in delivery prices justify the increase in final prices.
► Mark-ups of up to 141% for dairy products
Manolova commented on the data on mark-ups for food products presented by the Consumer Protection Commission, the Commission for the Protection of Competition, the Confederation of Bulgarian Trade Unions and experts. According to her, the information was collected from the reports of the retail chains and from data provided by them themselves.
“After I presented the data on 141% markups on food products, I received calls from citizens who believe that the markups reach around 240% – especially for butter”, the chairman of the CPC indicated.
She specified that the presented data covers two groups of products - dairy products, as well as fruits and vegetables, which are part of the small consumer basket.
According to her, the usual markups in Europe are significantly lower. In Germany they are between 15% and 25%, in France they reach around 23%, and for vegetables they can be up to 40%. The average markup in Europe is around 25%, said Manolova.
According to her, markups of 141% for dairy products are excessive. She pointed out that after checking the reports of the retail chains, normal levels should be significantly lower. The Chairman of the Consumers' Federation emphasized that the difference between the purchasing power of Bulgarian citizens and food prices puts serious pressure on households.
► Sanctions also for misleading claims about origin
Manolova announced that there will also be sanctions for misleading commercial practices. She gave an example of a case in which potatoes were presented as Bulgarian, even though they were imported.
„The goal of the commission is to achieve a reduction in the prices of basic food products and guarantee fairer conditions for consumers. If the chains are not ashamed, they should be forced to reduce the prices of milk, butter, cheese, beans and other basic products,” said Manolova. She added that she would insist on serious sanctions, including those determined as a percentage of turnover. “It is high time the state protected its citizens,” emphasized the chairman of the Consumers' Union.
► Inspections of medicines, bank fees and mobile services to follow
Manolova said that after the inspections of food prices, the commission will turn its attention to medicines, bank fees and mobile services.
On the air of “Hello, Bulgaria” she also provided her personal phone number, where citizens can report irregularities.