Bulgarian regulator fines two retail chains for misleading promotional practices

The Commission for Consumer Protection imposed financial sanctions of 35,000 euros on each of two large retail chains for engaging in misleading promotions. These penalties were issued because the retailers continued to use unfair commercial practices despite existing orders from the Chairperson of the Commission for Consumer Protection that prohibited such activities. The regulatory actions followed inspections that were triggered by various consumer complaints regarding pricing and availability.

Unfair pricing and promotional violations

The inspections conducted by the Commission for Consumer Protection revealed specific instances where retail chains misled customers through deceptive pricing. In one identified case, a package of chicken was labeled with a promotional price of 3.04 euros. However, when customers reached the checkout, the item was charged at 4.34 euros. This resulted in a checkout price that was 1.30 euros higher than the advertised promotional price, representing an increase of nearly 43% over the stated cost.

The regulatory body found that these pricing discrepancies occurred despite previous orders from the Chairperson of the Commission for Consumer Protection intended to prevent such unfair commercial practices. The Commission for Consumer Protection determined that the retailers failed to adhere to established consumer protection standards during these promotional events.

Insufficient stock and brochure advertising

A second violation involved the deceptive advertising of non-food items through large-scale marketing materials. The inspection found that a retailer advertised specific non-food items via thousands of brochures to attract customers. Despite the widespread distribution of these promotional materials, inspectors found only two units of the advertised item available in the inspected store.

The investigation revealed that the two available units of the non-food item were sold on the first day of a four-day promotional campaign. This left the remainder of the promotion without the advertised stock. The Commission for Consumer Protection stated that the inspection found no evidence of objective reasons for the insufficient stock levels. Furthermore, the retailers failed to provide equivalent goods at the advertised price to satisfy the demand created by the brochures.

Regulatory enforcement and consumer protection

The Commission for Consumer Protection issued these sanctions to address the ongoing use of prohibited commercial practices. The agency noted that the retailers continued these behaviors even after receiving formal orders from the Chairperson of the Commission for Consumer Protection. The sanctions of 35,000 euros per chain serve as a response to the identified violations of consumer rights and fair competition standards.

The Commission for Consumer Protection maintains a consumer hotline at 0700 111 22 for individuals seeking assistance with consumer rights issues. The agency continues to monitor retail practices to ensure that promotional prices and stock availability align with the information provided to the public through advertising and brochures.

Glossary

• Commission for Consumer Protection — The Commission for Consumer Protection is a regulatory body that monitors retail practices to ensure they align with information provided to the public. It issues sanctions to address violations of consumer rights and fair competition standards.
• unfair commercial practices — Unfair commercial practices are prohibited activities that violate consumer rights and fair competition standards. These practices include deceptive pricing and misleading advertising.
• promotional campaign — A promotional campaign is a marketing event or period used to advertise products or prices. These events may involve the use of brochures or specific promotional prices to attract customers.