Since the introduction of government-mandated price controls, consumer protection inspections have been ongoing, resulting in authorities imposing fines of over 1 billion forints. This number sends a message to the stores that it is not worth engaging in tricks, government spokesperson Alexandra Szentkirályi nailed down during a press conference in Budapest on Friday.
She emphasised that besides the continuous monitoring of the retail prices of foodstuffs falling under the price cap, there is a need for enhanced scrutiny in this area, with a focus on examining a significant number of stores. Szentkirályi shared that two rounds of targeted inspections have been conducted by consumer protection authorities since the implementation of price controls. The first inspection involved 468 investigations, resulting in fines nearing 350 million forints. This amount does not represent the final figure, as an additional 70 proceedings are still ongoing. The second targeted inspection of price controls took place between 8 and 14 May. During this period, 519 inspections were carried out, and it is already evident that there were violations in 110 cases. Out of these, 61 stores were caught violating the regulations during both the first and second inspections, and in 176 cases, the establishment of facts is still in progress, which may also lead to fines.
Inflation on the Decrease
During the press conference, Szentkirályi explained that the economic situation in Europe, including Hungary, has been disrupted due to the Russo-Ukrainian war, which was exacerbated by the damages caused by misguided Brussels sanctions. She added that as a result of these two factors, inflation has skyrocketed, energy prices have increased, and this has had an impact on all aspects of life. The Hungarian government has implemented measures to protect Hungarian families and businesses against high inflation. As a result, the statistical data in recent months indicate a systematic, continuous, and visible decrease in inflation. The goal of the government is to achieve single-digit inflation by the end of the year, Szentkirályi reminded.
Repeat Offenders May Face Store Closures
The government spokesperson stated that those who repeatedly violate the rules of price controls may face store closures. However, the primary objective is to ensure that everyone has access to the appropriate quantity and quality of products in stores. Regulatory inspections will continue, and the government will not allow stores to profit at the expense of families, the spokesperson declared.
Mandatory Discounts and Online Price Monitoring Coming in the Summer
From 1 June, the mandatory discount rules will also come into effect, requiring stores to offer specific products at a ten per cent lower price compared to the lowest price in the preceding 30 days. Families will be able to fill their shopping baskets with at least twenty discounted products per store, the government spokesperson stressed.
Szentkirályi announced that the online price monitoring system is expected to be implemented from 1 July. The new system will lead to increased competition, lower prices, and reduced inflation.
Deputy State Secretary for Constitutional Legislation and Consumer Protection Nóra Kupecki emphasised that the consumer protection agency is working with all available resources to address fraudulent businesses. It was revealed that since the introduction of price controls, 7,218 consumer protection inspections have been conducted, in which irregularities were established in 1,242 cases, while in 1,042 cases fines were also imposed. So far, the total amount of final fines levied amounts to more than a billion forints. The Deputy State Secretary drew attention to the fact that stores committing repeated violations can expect higher fines. The Consumer Protection Authority also monitors compliance with the online price monitoring system and mandatory discounts, employing similar strictness as with price control inspections, Nóra Kupecki noted.
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