It is a challenge for shops to take measures against shrinking inflation
The government’s latest measure, which tries to make the announced price of shrink-wrapped products more transparent for customers, received a lot of criticism from the professional side. Pursuant to the decree, businesses with a turnover of more than HUF 1 billion would be obliged to indicate with warning signs and a red exclamation mark if the packaging of a product has decreased. However, it is not so easy to comply with this.
The RTL news channel revealed that many shops cannot fulfill the requirements of the decree. The government decree was published on February 22 and is valid from March 1. The National Trade Association believes that the decree was published late, so that shops have difficulty in quickly obtaining labels from printers. Gabriella Heiszler, the managing director of the domestic Spar, also criticized the measure, stressing that the stores will probably not be able to fulfill the requirement 100 percent.
“And the shops will slowly become like a Christmas tree with many extra inscriptions”
Heiszler noted. If manufacturers do not comply with the information obligation, they can be fined up to HUF 1 million.
The measure, which is directed against shrinking inflation and is meant to inform customers, generates a heated debate. The government’s goal is to increase transparency and strengthen customer awareness, however, due to the rapid introduction and new costs for companies, the market is facing many challenges.
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