Tax Authority and Consumer Protection Agency Step Up Checks on Unjustified Price Rises

Bulgaria’s National Revenue Agency (NRA) and the Consumer Protection Commission (CPC) are continuing intensified inspections to curb unjustified price increases and to ensure the correct dual display of prices in leva and euros.

More than 700 inspections have been carried out in retail outlets across the country. Irregularities have been identified in around 10% of cases, according to the supervisory authorities, with the highest number of violations found in the food sector.

An increase in prices is deemed unjustified when consumer prices rise despite there being no increase in costs such as electricity, wages or fuel. Inspections so far indicate that only a small proportion of traders have resorted to unfair practices.

Hristo Markov, Executive Director of the NRA, said:
“I am pleased that the figure is around 10%. The number of violation reports issued is not particularly high, which shows that traders are, for the time being, complying with the existing regulatory framework.”

Aleksandar Kolyachev, Acting Chair of the CPC, added:
“Alongside checks on price increases, we are also monitoring the dual price display, for which there are clear legal requirements on how prices must be shown. So far, the number of sanctioned traders has been relatively small, as most retailers are well disciplined—especially the large retail chains. We are seeing that they are approaching the new market situation in a highly responsible manner.”

Consumers, however, say they are feeling the impact of rising prices.

“Everything is going up in price. In the big supermarket chains, there’s outright speculation. Yesterday, for example, I bought bananas that were advertised at 2.99, but I was charged 3.59 at the till.”

When asked whether they queried the price difference at checkout, the customer replied:
“They first told me the discount would be applied at the till.”

“Prices are increasing every day,” another shopper said.

Asked whether higher prices were changing shopping habits, consumers responded that they increasingly buy only discounted items.

“Everyone does as they please. There is a sense of impunity. In my view, this will continue even after the euro is introduced in a few days’ time. There is no functioning institution that truly protects the ordinary consumer,” another customer commented.

In response, the NRA has said inspections will continue into the new year. They will be expanded and carried out under a new methodology aimed specifically at tackling artificial price increases linked to the adoption of the euro.

Hristo Markov explained:
“During an inspection, we will record prices in a given retail outlet. Ten days later, we will return to the same outlet. If prices have increased without justification, appropriate sanctions will be imposed.”

Fines for a first offence can reach up to 100,000 leva, rising to 200,000 leva for a repeat violation.

Both the NRA and the CPC are urging consumers to report any suspected breaches.