January the 26th, 2023 - The Croatian State Inspectorate has been busy over the last couple of weeks after many stores and services/goods providers unjustifiably raised their prices following the introduction of the euro as the country's official currency. Their findings have been astonishing, and many fines have been issued.
Poslovni Dnevnik brings us the findings of the Croatian State Inspectorate without any changes, and we've translated it into English:
Following the conclusion of the government on the implementation of the principle of the prohibition of unjustified price increases, the Croatian State Inspectorate is continuing to carry out increased inspections aimed at protecting consumer rights.
From January the 5th, 2023, when the Croatian Government adopted the aforementioned conclusion, until yesterday (January the 25th, 2023), the market and tourism inspection of the Croatian State Inspectorate carried out a total of 1,458 inspections, in which, (more specifically in 305 such inspection so far) unjustified price increases after December the 31st, 2022 were determined. In an additional 211 inspections which have been carried out, the process of the determination of any unjustified price hikes is now being determined.
Excluding inspections in which fact-finding remains an ongoing process, unjustified price increases after December the 31st, 2022 were found in 24.5% of inspections. 70% of the supervised entities where a price increase was determined during the inspection, i.e. immediately before the end of the inspection, returned their retail prices to the amounts they were at back on December the 31st, 2022.
"These figures clearly show us that the inspections being carried out by the Croatian State Inspectorate and the measures adopted by the government in order to protect consumer rights have borne fruit," said Andrija Mikulic, Chief State Inspector, when commenting on the progress and preliminary results of the inspections so far.
Out of the total number of inspections performed (1,458), 382 inspections were performed on service providers, 328 inspections were carried out in retail trade, 108 inspections were carried out across the sector of retail bakery products, and 640 inspections were carried out in the catering and hospitality industry.
According to the preliminary data we have access to at this moment in time, the average price increase for supervised services has shot up to a staggering 30%, while the price increase in retail bakery products is, on average, a less but still wholly unwelcome 15%.
A comparative analysis of the "new", higher prices of certain catering and hospitality services and the "old", lower prices found an increase in the prices of certain catering services of up to 10%, and exceptionally in some inspections which have been concluded over this past week, an increase in the prices of certain catering services up to a disgusting 29%.
Regarding prices in retail trade, an average unjustified increase of up to 17% for certain controlled products after December the 31st, 2022, has been observed. For example, unjustified increases in the prices of milk, chicken meat, and beer, were all determined.
It's important to emphasise that a significant number of inspections carried out in retail trade in retail chains have also been completed. In nineteen retail chains, the market inspection carried out 93 inspections. The inspections were carried out ex officio, as planned inspections and on the basis of peoples' reports.
So far, at four retail chains, an unjustified increase in retail prices for ten products has been determined; cat food (29.18%), 800g cocoa drinks (18.91 %), cured meat product sirloins (20.52%), pickles (9%), dog food (38%), cooking chocolate ( 13%), liquid yogurt (24.47%), butter (19.87%) and biscuits (41.24 %). Please note that fact-finding is still underway in several retail chains.
Fines are being imposed on all business entities that unjustifiably increased their prices after December the 31st, 2022, that is, from January the 1st, 2023 until the day of the inspection. As of January the 25th, 2023, a total of 272 fines were issued as part of the completed inspections, in the total amount of 457,357.96 euros (3,445,963.55 kuna).
Inspections being carried out by the Croatian State Inspectorate are set to continue, with each inspection being part of its jurisdiction. This state body will continue to carry out coordinated and continuous inspections with the aim of consumer protection firmly in mind.
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