The Foreign Investors Association (FIA) is opposed to limiting the maximum discount that local food producers provide to merchants.
The organization also disagrees with time limits for marketing and promotional activities. This is stated in the conclusion of the FIA on the relevant bill initiated in parliament. The Association believes that this initiative is contrary to the principles of free trade and can be regarded as unjustified state interference in business activities. The FIA notes that the authors of the bill did not present clear arguments about the need to introduce such restrictive rules or positions on how public interests are affected in order to justify such regulation of private trading activities. In the absence of a feasibility study, it is also impossible to determine whether the authors of the project have analyzed how the proposed restrictions will affect the respective markets, economic agents and, finally, consumers. “The introduction of restrictive norms creates a serious risk of direct impact on private relations between businessmen, as well as on free competition, which will undoubtedly have a negative impact on both end consumers and the economy of Moldova as a whole,” the Association notes. The FIA concluded that the bill violates the provisions of the Constitution, the Civil Code, and the Law on Internal Trade. Members of the organization believe that the establishment of the size of the discount provided by the supplier to the merchant is the result of negotiations between the parties and their contractual freedom, and the state does not have the right to intervene in a market where pricing should be free, based on supply and demand. The FIA also draws attention to the fact that over the past four years, such initiatives have been registered more than once, and the Competition Council has never supported them. Recall that according to the bill, it is proposed in Moldova to limit the maximum amount of commercial discounts that suppliers can offer to merchants when selling food products to 10%. It is also proposed to limit the maximum duration of marketing activities within one year for one product - up to 60 days. For violation by a merchant or supplier of the aforementioned requirements in the Code of Contraventions, a fine may be imposed: for individuals - from 50 to 100 cu, for legal entities - from 200 to 400 cu. The proposed measures are expected to help reduce illegal trade practices, preserve profits for local producers, and provide the domestic market with locally produced products. // 15.02.2021 — InfoMarket.
