Ad Hoc Budget Committee approves extension of inspections over unjustified price increases

An ad hoc parliamentary budget and finance committee approved at first reading a bill amending the Consumer Protection Act, submitted by Progressive Bulgaria MP Yavor Gechev.

The bill transfers provisions from the Euro Adoption Act into the Consumer Protection Act and extends their application by one year beyond the initially planned deadline.

The proposed legislation bans price increases of goods and services offered to consumers when they are not economically justified. It lists objective economic factors that could warrant higher prices, including rising supply and production costs, labour expenses and energy prices.

The Commission for Consumer Protection (CCP) would assess whether price hikes are justified by comparing them with the impact of those factors on a trader’s costs or economic activity.

The methodology and criteria for determining whether price increases are justified, as well as the comparable reference period, are to be set by the Council of Ministers within three months after the law enters into force.

The bill also doubles fines for unwarranted price increases. Penalties for individuals would range from EUR 1,000 to EUR 10,000, while sole traders and companies could face sanctions of between EUR 5,000 and EUR 100,000.

Separate penalties would apply for violations involving more than one product, service or commercial site.

Under the draft legislation, retailers selling food, beverages, tobacco products, non-food goods and medicines with an annual turnover exceeding EUR 5.1 million would be required to publish daily price data online by 7 am in a machine-readable format covering products from the large consumer basket.

Retailers would also have to submit the information to the CCP, which would maintain an online portal displaying retail prices, wholesale prices and a “fair price” calculated under a methodology developed by the Ministry of Economy.

The amendments provide for the law to enter into force on August  9, 2026, and remain effective until August 9, 2027.