The Commission for Consumer Protection is sending a new report to the Commission for Protection of Competition following an inspection at a major retail chain. An analysis of the documents on supply and sale prices found markups of different sizes on comparable food products from the same product category. The differences exceed the statutory threshold of 10%.
The inspected goods were supplied by different manufacturers. According to the Commission for Consumer Protection, such pricing may place some suppliers at a disadvantage compared with others and affect the conditions for fair competition. In its report, the commission outlined the findings of the inspection and provided the Commission for Protection of Competition with the collected documents for assessment within its remit.
The rule is set out in Article 37b, paragraph 1, item 25, letter „b“ of the Protection of Competition Act. It defines as a prohibited practice the application of different markups to comparable agricultural and food products from the same category when the difference exceeds 10%. If the Commission for Protection of Competition establishes a violation, the penalty may reach up to 10% of the turnover of the respective undertaking.
Another report over markups
This is another report submitted by the Commission for Consumer Protection to the antitrust authority concerning similar practices at major retail chains. The commission continues to inspect the supply and sale prices of essential food products, as well as the relations between retailers, manufacturers and suppliers. The name of the inspected chain has not been disclosed.
At the end of October, Commission for Consumer Protection chair Maya Manolova said that the commission had documents provided during official inspections. „I have nailed the retail chains with documents they provided to me during official inspections – supply prices, invoices with supply prices and sale prices,“ Manolova said. According to the Commission for Consumer Protection, previous inspections found markups of between 99% and 141% on essential food products, but the size of the markup itself is not automatically illegal. A violation may exist where a prohibited practice has been proven, including different treatment of comparable products and suppliers.
After receiving the report, the Commission for Protection of Competition must conduct its own assessment and decide whether there are grounds for further action. Until the antitrust authority issues a decision, the allegations of a violation do not constitute an established finding of wrongdoing by the retail chain.
Sources: novini.bg