Since the implementation of the government initiative “Limited Prices”, designed to regulate margins on essential food and hygiene products, the Inspection Authority has identified several violations. According to reports, during 89 inspections, 13 irregularities were detected, leading to 22 penalty notices issued to retailers, totaling 60,000 euros. These findings indicate that some retailers continue to neglect the established regulations despite ongoing inspection efforts to ensure compliance.
The Inspection Authority has not disclosed the names of the retailers found in violation, leaving the public without specific information on those breaching the “Limited Prices” measures.
Goals of the initiative
Following the government’s introduction of the “Limited Prices” initiative on September 6, inspection services have ramped up their oversight of compliance in stores across the country. The initiative aims to limit profit margins on food and hygiene products that are essential for public health, in an effort to ease rising prices and ensure the availability of basic goods for citizens.
The government’s decision on temporary measures restricts margins on 66 key food and hygiene products in both wholesale and retail. For example, margins on domestic cheese, yogurt and 2.8% fat milk are capped at 10%, while various meats, pasta, canned fish, jams, and assorted fruits and vegetables are also included. For children’s cosmetics and baby food, margins are set at 10% for wholesale and 15% for retail.
Additionally, the government has established a 5% margin limit for wholesale and 7% for retail on flour, sugar, sunflower oil, and table salt.
The government expects this initiative to reduce prices for over 1,000 products, as the measures apply to items from all manufacturers within specified categories. However, these measures do not extend to stores with a total area of less than 600 square meters.
Penalties
Companies that do not comply with the initiative face fines ranging from 5,000 to 10,000 euros, while individuals can incur penalties from 500 to 1,000 euros. According to the Law on Offenses, inspectors can impose only the minimum fines, while higher penalties require court proceedings if an individual contests their responsibility.
This version of the “Limited Prices” initiative differs from the previous one by including fruits, vegetables, a wider range of meats, and personal hygiene products. The original initiative launched in late March covered 38 products and lasted until May 31, with an extension until the end of June for 16 domestic items.
The government did not consult the Chamber of Commerce, certain retail chains, or employer associations regarding the new margin restrictions.
Economic Development Minister Nik Đeljošaj stated at the conference introducing the measures that market inspection reports revealed high retailer margins, and they anticipate price reductions following these limitations.
According to Monstat, prices in August rose by 0.4% compared to July and increased by 2.2% compared to August of the previous year. The most significant contributors to this monthly price rise included vegetables, accommodation, telephone services, vehicle maintenance and repairs, and food services.
The government’s decision does not set final retail prices but regulates margins, which are variable and subject to agreements between retailers and their suppliers. A margin is defined as the difference between the purchase price and the selling price, less associated costs such as transportation and storage.
The “Limited Prices” initiative began on September 6 and will continue until the end of January next year.
