Butter marked up 141%: Bulgarian consumer watchdog targets supermarket chains
Bulgaria's consumer protection commission found markups of 99% to 141% on butter, cheese and tomatoes. Over-the-counter medicines are next on its list.
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Bulgaria's Commission for Consumer Protection (KZP) has found retail markups of up to 141% on staple foods during inspections of supermarket chains, its chair Maya Manolova told public broadcaster BNT on Friday. According to the commission, the highest markups range from 99% to 141%. Broadcaster Nova reported the figures as 141% for butter, 133% for white cheese, 127% for tomatoes, 106% for kashkaval, 102% for onions and 99% for yogurt.
A high markup is not illegal in itself. But Manolova said competition law prohibits differences of more than 10% between markups on similar products in the same category from different suppliers, which is what inspectors found for butter and fresh milk, with markups of 50%, 80%, 95% and 110%. She called these violations, which carry fines of up to 10% of turnover. The chains declined to voluntarily sign a farmers' memorandum that would cap their markups at 25%. The KZP recently fined two chains a total of 75,000 euros for unfair trading practices.
For comparison, Manolova pointed to Germany, where she said gross margins on dairy products are 15% to 17% and retail markups 17% to 20%. Consumers are poor enough that traders should not be allowed to cheat them, she said. The commission's next task is to check prices of over-the-counter medicines and food supplements and compare them with Greece. Proceedings have already been opened over advertising that claims supplements can treat serious illnesses such as cancer. Ahead of Black Friday, the KZP is also inspecting shops, including online retailers.