The Government Has Sent a Proposal for a Law on Exceptional Price Control Measures into Urgent Procedure

On Thursday, the Government submitted a draft final proposal for a law on exceptional price control measures to the urgent parliamentary procedure, which, as stated by the Minister of Economy Ante Šušnjar, is being enacted to protect the standard of living for citizens and ensure a rapid response to market disruptions.

Prime Minister Andrej Plenković emphasized that this aims to complete the legal framework under which the Government operates in extraordinary circumstances to ensure that the consumer basket, which is most important for the most vulnerable citizens, remains accessible and acceptable.

As Šušnjar noted, the previous law was enacted in 1997 and needs to be aligned with the challenges of today’s market.

– This law will enable the Government to adopt specific measures in exceptional situations when there is a need to protect citizens and stabilize the market – said Šušnjar.

Among the key measures, or amendments, he highlighted greater price transparency, meaning that retailers will be required to regularly publish and update the prices of their products on their websites. Additionally, they must provide unobstructed access to digital tools that will ensure real-time price comparison.

These provisions, the minister stated, will apply to retailers in the categories of supermarkets, hypermarkets, discount stores, and cash and carry, thus targeting large retailers. They are obliged to publish the retail prices of all products on their websites and ensure the unobstructed operation of so-called bots, automated programs that allow specialized services comparing retail prices to seamlessly retrieve prices of all products and conduct comparisons, as stipulated by the new law.

Furthermore, the law will enable monitoring of price changes, meaning that every retailer will have to clearly indicate the previous retail price of a product from a specific period or on a specific day alongside the current retail price. This will, as Šušnjar stated, facilitate easier tracking of price changes and transparent consumer information.

He emphasized that this law provides a legal basis for the introduction of one or more direct price control measures. The specific measures and their scope will be determined by the Government, taking into account the extraordinary circumstances that necessitate action.

– The goal is to prevent market disruptions that cannot be resolved in any other way – he stressed.

He also mentioned that, as with the currently valid law, there will be price limits on key products and services. Additionally, clear labeling of products with regulated prices is mandated, which means that retailers are required to display visual labels on products whose prices are regulated, and in larger retail outlets over 400 square meters, to provide special sales areas for these products.

The new law also clearly stipulates penalties that are proportional, effective, and deterrent for those who do not comply with the prescribed measures, said Šušnjar, noting that, for example, retailers, legal entities, can be fined between three and 30 thousand euros.

In addition to monetary fines, the law also provides for the confiscation of property benefits obtained through violations, Šušnjar noted, emphasizing that the proposal for the law is being made through an urgent procedure to timely protect citizens and maintain market stability.