Supermarkets in Portugal have spoken out against a controversial new law which they say will harm consumers, suppliers and retailers.
The new legislation, which came into effect this week, defines illegal the loss leading prices paid by retailers for goods, taking into account future discounting. Fines for breaking the new law range between €50,000 and €2.5 million.
The Law on Restrictive Trade Practices Solo (PIRC) came into effect on Tuesday and has generated much debate in the industry, particularly concerning promotional campaigns and discounts.
Director general of the Association of Portuguese Distributors (APED), Ana Isabel Trigo Morais (pictured), believes that the statute contains weaknesses and that it may have an impact on consumers.
"We fear, above all, that the impacts are placed on the final consumer, for whom is all the work of our associates, because of this inflationary pressure on prices".
According to APED, the sector will have "a year to review all contracts."
Jeronimo Martins boss Pedro Soares dos Santos said that it would make it far harder for retailers to agree contracts with suppliers. "Nobody quite knows what the real implications of this will be," he said.
© 2014 - European Supermarket Magazine by Enda Dowling
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