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CPC checks retail chains for markups of up to 135%

Maya Manolova announced sanctions of up to €35,000 and violations in meat storage. Over-the-counter drug prices will also be checked

Снимка: БГНЕС

Mass inspections of major retail chains have been launched over high markups on basic food products, said Maya Manolova, chairwoman of the Commission for Consumer Protection. According to data she presented, markups reach 135% for butter, 99% for fresh milk and 95% for cheese.

The inspections are being carried out jointly by the CCP, the Ministry of Agriculture, the Bulgarian Food Safety Agency and the National Revenue Agency. “For the first time, the entire state, through its institutions, is addressing this problem,” Manolova said.

According to her, numerous violations have been identified in major retail chains over the past two weeks. The CCP has imposed sanctions for unfair commercial practices, with fines reaching €35,000. For unjustified price increases, sanctions range from €10,000 to €100,000, but proving such a violation is more difficult when the increase occurred more than a year ago.

Manolova said she would defend the issued penalty decrees in court as well, if they were appealed. “If they think these absolutely deserved sanctions will simply be overturned, they are wrong,” the CCP chairwoman said.

Food inspections and meat-related violations

Among the products for which Manolova is calling for lower markups are bread, flour, rice, butter, cooking oil, eggs and dairy products. She gave Germany as an example, where, according to the data she presented, markups on dairy products range between 15% and 25%.

During inspections by the BFSA, two supermarkets, as well as sites and facilities linked to the preparation and sale of ready-made food, were closed. Manolova cited a case in which meat fit for consumption had been stored together with discarded meat past its expiry date. Problems were also identified with the documentation and traceability of food products.

“I do not want to imply anything. I am simply saying that the inspections carried out by the state have their reasons,” she clarified, without claiming that consumers had bought unfit meat.

Materials sent to the CPC

Manolova said she had sent materials to the Commission for Protection of Competition concerning suspected unfair practices against Bulgarian producers. According to her, retail chains apply different markups to similar products, citing imported Gouda and Bulgarian kashkaval as an example.

“Why should they be allowed to sell one at a 30% markup and the other at a 130% markup?” Manolova asked. According to her, sanctions for violations within the CPC’s remit can reach 10% of turnover.

The CCP chairwoman added that dairy farmers and dairy processors had presented invoices showing that the wholesale prices of some dairy products had fallen compared with 2022. She said this cast doubt on claims that rising prices in stores were primarily due to producers.

Over-the-counter medicines also under scrutiny

The CCP’s next priority will be the prices of over-the-counter medicines and food supplements. Manolova said that some analgesics, cold and flu medicines, syrups and drops are sold in Bulgaria at prices that, in her view, are twice as high as those in Greece.

The regulatory framework will be reviewed to establish at which stage of the chain the greatest price increase occurs – during production, wholesale trade or sale in pharmacies. Legislative amendments are also being prepared concerning the determination of maximum prices for medicines and food supplements.

Sources: btvnovinite.bg