Discriminatory Markups by Large Grocery Chains Compared to Suppliers

The Consumer Protection Commission has sent an official signal to the Commission for the Protection of Competition regarding established violations by large retail chains. Regulator inspections have detected manifestations of discrimination against trading partners, expressed as unjustified price differences.

According to the presented data, the chains applied different magnitudes of commercial markups for comparable agricultural and food products within the same category. The violations were detected at specific outlets and cover basic product groups, including dairy products, fruits, and vegetables.

The CCA recalls that pursuant to art. 37b, para. 1, item 25, letter “b” of the Consumer Protection Law, markups with a difference of over 10 percent for similar products from different suppliers constitute an prohibited practice. This places some producers and partners in an unequal position.

During a briefing, the chairperson of the CCA, Maya Manolova, explained that sanctions for such manifestations of unfair competition are severe. When violations are proven, fines can reach up to 10 percent of the annual turnover of the respective retail chain.

The competent part of the law has now been alerted: the CPK will conduct proceedings and issue a ruling on the case. This is done in accordance with the CCA's obligations to forward the collected materials and evidence to the competent authorities in cases of violations beyond its direct remit.

Source: Telenews