Parliament Approves One-Year Ban on Unjustified Price Increases

Members of Parliament have approved legislation prohibiting increases in the prices of goods and services that are not economically justified for a period of one year.

Inspections will be carried out by the Consumer Protection Commission (CPC), which will have the authority to require all information related to pricing, including supply costs, production expenses and final consumer prices.

The level of fines will also increase significantly. Violations involving the pricing of a specific product will be subject to penalties ranging from €10,000 to €100,000. Where multiple products are involved, fines may be imposed separately for each item. Repeat offences will carry double sanctions.

The opposition objected to the measure, arguing that the law would neither reduce inflation nor lower prices.

Vladislav Panev of Democratic Bulgaria:

“I hope this law remains a dead letter and never comes into force in practice. What would it mean if it did? First, it would provide new instruments for pressure by the Consumer Protection Commission against traders. Second, it envisages the creation of a new bureaucratic unit, probably consisting of hundreds of officials, to monitor the new regulations. In my view, this law will not lead to a reduction in inflation or prices.”

Tsoncho Ganev of Vazrazhdane commented:

“You are opening the door wide to the retail chains that are supposed to control prices. This is a monumental failure on the part of the government.”

Representatives of the governing majority argued that, while the law would not solve every problem, it would help curb unfair commercial practices.

Yavor Gechev:

“Is this bill necessary? Absolutely, because market distortions exist. Will it fix the entire economic climate in the country? Certainly not. Will it help to balance prices? Definitely yes.”

The issue was also addressed in the parliamentary corridors by Alexander Kolyachev, Chair of the Consumer Protection Commission.

“The law just adopted by Parliament is an extension of the existing legislation on the introduction of the euro. The only substantive change is the extension of the law’s timeframe. The new legislation also adds functions to the Consumer Protection Commission that will facilitate consumers’ access to information published daily on our website, promote competition and improve the regulator’s effectiveness.

“We already possess sufficient enforcement powers. We are a supervisory authority and will continue to fulfil our statutory responsibilities, just as we have done so far. The sanctions regime is extremely important and has proven its effectiveness over time. Increasing the penalties will have a deterrent effect on companies and encourage them to align their conduct with the law,” he said.