Consumer watchdog reports dairy markups above 140% at major retailers
The Commission for Consumer Protection (CCP) began inspections on October 2 to examine retail prices and commercial practices. The first checks covered dairy products, fruit and vegetables, categories that generate the largest number of consumer complaints.
The comparison of October and August prices showed the highest increase on butter, where the markup reached 141%. The figures were 133% for cheese, 106% for yellow cheese, and 99% for yogurt. Among the other products examined, markups reached 127% for tomatoes and 106% for onions.
Maya Manolova, the CCP’s chair, said the commission would require retailers to account for the economic factors behind the increases. She said sanctions would be sought when retailers could not provide such justification. The commission also reviewed information supplied by retail chains about promotional goods; markups on those products reached up to 40%.
“Prices are rising from August to October, markups are rising as well, and this is probably also leading to higher profits for the retail chains,” Ms Manolova said. The inspections also identified different prices in stores belonging to the same chain in Sofia and in other parts of the country. Ms Manolova described the market as showing distortions and anomalies, and said the difference between purchase and retail prices was putting severe pressure on household budgets. She said comparable differences were not found elsewhere in Europe.
Ms Manolova listed four stages for addressing the issue. The first was the Basket with Care initiative, which had received support from retail chains but, in her assessment, had not produced results. The second was publication of the inspection findings. A “fair value” benchmark was expected within days and would indicate deviations from the price level considered fair by the CCP. The commission’s fourth proposed step was to seek penalties for substantial deviations. It had also prepared draft legislation and submitted it to MPs.
The CCP plans meetings in the coming weeks with businesses in sectors associated with the most consumer complaints. “Our goal is to see results over the next month on food and medicine prices, unfair practices by telecom operators and bank fees,” Ms Manolova said. The commission also intends to inspect fast-food outlets, restaurants and service providers, where price increases have been reported. It plans to examine medicine prices, potentially with the Health Ministry and the Commission for Protection of Competition.
Ms Manolova said alleged abuses of retail pricing had begun before the euro’s introduction. She said measures had been taken to prevent price increases ahead of adoption of the single currency, but argued that the issue concerned how the transition was managed rather than the euro itself.
Ignat Arsenov, director of the CCP’s Market Control Directorate, reported separate findings on fuel. In four of the 50 outlets and fuel products checked—8% of the total—higher purchase costs did not sufficiently account for the rise in retail prices. The finding applied mainly to liquefied petroleum gas. Further inspections are continuing, while traders are being asked to explain the economic factors behind the increases. Mr Arsenov said LPG prices had risen by €0.01 to €0.03 per litre, or about €2 for a full tank.
