Government unveils ‘drastic measures’ to combat ‘unfair trade practices’
Development Minister Kostas Skrekas presented four “drastic measures” on Wednesday aimed at addressing “unfair trade practices” in an effort to curb soaring prices. Prime Minister Kyriakos Mitsotakis had previously outlined these measures.
The first measure involves reducing discounts provided to supermarkets by suppliers to ensure lower prices. “We are limiting discounts to 30% and transferring the savings to the consumer in shelf prices,” Skrekas said. This measure applies to items such as detergent, household cleaning products, shower gel, shampoo and baby diapers.
The second measure aims to halt unjustified price increases. “We will not allow suppliers who increase prices to put on sales for three months,” the minister said, adding that this measure covers all products sold in supermarkets.
Thirdly, the government is introducing “net pricing from the farm to the shelf.” Suppliers will be obliged to issue credit invoices only up to 3%, to be refunded for returned or spoiled items. This measure applies to fresh fruit, vegetables and meat.
The fourth measure involves implementing a gross margin cap on infant milk. Specifically, the cap is defined as the sum of the company’s operating costs plus a 7% trading profit, according to Skrekas.
“What we are doing today is a critical and drastic intervention that achieves, firstly, an immediate price reduction on key shelf commodities. Secondly, it provides additional benefit to the consumer as any discounts and offers will be made on the new reduced prices,” he said.
