Question of the day

On 2 April 2 021 in the Official Gazette No 88-95 published Law No 17 of 4.3.2021 amending Law No 231/2010 on inland trade. The main aspect of the changes is to bring the current legal provisions in line with the overall regulatory framework of the business environment. A new chapter was also inserted — “Chapter V1 – Sale of low-priced products/services”. The legislator argued for the introduction of this chapter for the existence of cases of unfair trader practices by announcing price reductions or liquidations of fake stocks, advertising of different forms, including applied to the vitrines of shops which do not correspond to reality, with de facto discounts not changed or exchanged non-essential, etc. However, we inform you of the new aspects introduced by that chapter, which are to apply to them if you trade. These provisions will enter into force on 02 October 2021.

Low-priced trade methods:

By sale of low-priced products/services, within the meaning of Law on Inland Trade No 231/2010it is understood:

a) disposals of liquidation;

b) sales of balances;

C) sales made in commercial units of factory shop;

d) promotional sales.

Information on low-priced sales

Low-priced sales, if more than hours, and are expected to involve more than average agglomerations of persons and vehicles in areas adjacent to the business unit, are to be made known in writing to the local government authority in whose territory the business unit concerned is located, at least 7 working days before sales start or one working day until the release of the advertising of low-priced sales.

Sale of liquidation

Sale of liquidation means any sale preceded or accompanied by advertising and announced as ‘liquidation’ and which, by a reduction in prices, has the effect of rapidly selling all or only part of the stock of products in a business unit.

Any notice or other advertising concerning the sale of liquidation must necessarily specify the starting date of the sale and its duration, as well as the variety of goods subject to sale, if the transaction does not relate to the totality of the products of the selling structure.

Sale of balancing

Sale of balances is any sale accompanied or preceded by advertising and announced under the name “balances/outstandings/outstandings/balances/reductions” and which, through a price reduction, has the effect of rapidly selling the stock of seasonal goods in a retail business unit.

Supporting accounting documents showing that the stock of products proposed for settlement was set up at least 15 days before the start date of the disposal will be kept for 3 years in order to be able to be presented, whenever necessary, to the competent control bodies.

Sales made in commercial units of factory shop

Sales made in commercial units of factory stores are sales on own production, made directly by producers (processors) to consumers, fulfilling the obligations of any retailer.

Promotional sales

Promotional sales are retail sales/cash and carry sales/market service supplies that can take place in any period of the year, provided that they relate to available or re-containable products and services sold or, where applicable, typically sold.

Within the meaning of Law No 231/2010the following shall not be considered as promotional sales:

a) promotion measures carried out by manufacturers (processors);

b) actions to launch new products/services on the market.

Advertising and announcements of price reductions

Low price sales (winding-up, balancing, carried out at commercial units such as factory shop, promotional stock)where consumers are notified of a price reduction with a comparison expressed in figures, they shall be subject to the following price fixing and advertising rules:

1) any trader announcing a price reduction must refer it to the reference price charged by the same business unit for identical products or services;

2) any price reduction notice, whatever the form, advertising mode and motivation for the reduction, must address consumers and indicate in figures a reduction in relation to reference prices, except for:

a) comparative price advertising;

b) purely literary advertisements, which do not contain figures;

C) announcements of the launch of a new product on the market;

d) oral advertisements carried out exclusively within the shop for price reductions at a given Raion, for a very short period of a selling day;

3) catalogual advertising and price reduction offers launched by traders selling outside a fixed business unit may only be valid until stocks are exhausted, provided that this statement appears prominently and legible in the catalogue;

4) any price reduction notice expressed in absolute value or percentage shall be made clearly, legible and unequivocally for each identical product or group of products:

a) either by mentioning the new price in addition to the previous price, barred;

b) either in terms of “new price”, “old price” in addition to the corresponding amounts;

C) either by mentioning the percentage of the reduction and the new price appearing in addition to the reference price, barred;

5) it is prohibited that a price reduction for a product and/or service is presented to consumers as a free offer to a part of the product and/or service;

6) all accounting documents evidencing the veracity of the reference price must be kept for 3 years so that they can be submitted to the competent control bodies;

7) any price reduction notice which does not correspond to the reduction actually charged in relation to the reference price shall be considered to be an incorrect commercial practice and shall be punished in accordance with the legislation.

These provisions shall not apply where the price reductions on the product result from the increase in the quantity of the product contained in the packaging usually used in their marketing or from the increase in the number of identical products offered for sale in a collective packaging.

Products for sale with low price/promotional offers 3 days before the expiry of the period of validity or minimum durability date/use limit date related to food products, or the validity period/minimum sustainability data related to non-food products, shall be sorted and exposed to trade on rafts or stands, visibly delimited, with accurate, complete and accurate information to consumers. Failure to comply with the provisions of this paragraph shall be considered an incorrect commercial practice and shall be punished in accordance with the law.

Source: sef.md Accounting Officers