January the 28th, 2023 - The Croatian Chamber of Trades and Crafts (HOK) has stated that it intends to help those in the trade sector hit with fines by the State Inspectorate for raising their prices with their appeals. The hunt for those taking advantage of the switch to the euro by upping their prices is continuing, with many fines already issued.

As Index writes, every fourth inspection by the State Inspectorate has alarmingly showed unjustified price increases after December the 31st last year, the last day before the Eurozone accession. In some sad cases, the prices of services rose by up to 30 percent, and bakery products rose in price by an average of 15 percent in retail trade. The state doesn't intend to stop hunting down enterprises who have hiked their prices up, while on the other hand, traders feel victimised and intend to take legal steps to contest those fines, according to HRT.

Cases of high fines being issued throughout the trade sector due to unjustified price rounding are being published daily. The state has so far undertaken almost 1,500 inspections, and in about 300 cases price increases have been found, while another 200 are still being analysed - which means that this percentage could very easily (and drastically) increase.

"I believe that we'll meet the goals we've set for ourselves. It's difficult for me to comment on my colleagues from the State Inspectorate, but the percentage of 25 percent is not small. I believe that due to the supervision, a good number of companies decided on their own initiative to return to their previous prices [from December 2022]. I think the State Inspectorate is doing a good job," said Jurica Lovrincevic, an advisor to the Minister of Economy.

The Croatian Chamber of Trades and Crafts (HOK): We'll help traders in preparing appeals

The list of price increases since the New Year is led by various services, which on average have increased in price by almost 30 percent. But some hairdressers, restaurateurs and other enterprises believe that they're being targeted and unfairly punished.

"We started this story in order to engage law firms, and I hereby call on all fellow craft owners who have received misdemeanor orders to contact their associations, to contact our advisory service at the Croatian Chamber of Crafts, and we'll certainly help them in preparing appeals for the misdemeanor courts,'' said Dalibor Kratohvil from the Croatian Chamber of Crafts.

"We believe that all these fines and penalties are unfounded, we believe that this shouldn't have happened because it's always the small companies who suffer in these stories, and those are the last in the chain, micro-enterprises," he added.

Lawyer Doroteja Jurcic also pointed out that there are a number of problems with these misdemeanor orders.

"Every misdemeanor order from any part of Croatia is absolutely the same, it has an identical explanation, which speaks in favour of the fact that these are previously written explanations that aren't actually related to whatever the specific case at hand is at all. I think that there's already a problem. What the State Inspectorate refers to in its reasons are the Consumer Protection Act and the application of aggressive business practices by traders or enterprises," explained Doroteja Jurcic from the Voice of Entrepreneurs (UGP) Association.

"The prescribed fines for craft owners are from 5 to 15 thousand kuna, for legal entities they're slightly higher, for natural persons as owners they are the same - from 5 to 15 thousand kuna. So, a legal entity that has a d.o.o. or j.d.o.o. finds themselves in a situation of receiving two penalties, one as a legal entity, and another as a natural person, the owner," she added.

The Croatian Employers' Association (HUP): There have been no unjustified price increases

Mirko Budimir, vice president of HUP and representative of small retailers, emphasised that there have been no unjustified price increases and that retailers haven't increased their margins. An increase occurs if the retailer has increased their own margins, he pointed out.

"I'd say that there have been no unjustified increase in prices. What we did at the beginning was the conversion from the kuna to the euro. The state inspectorate showed that we did not have any violations, if we have, then these are minimal offenses simply because someone got the conversion wrong. As for raising prices from the position of a small trader, I can say that there was no price raising either, but we have to keep in mind that trade is a process that we can't just say ceases on December the 31st, 2022, and then nothing else ever happens," said Budimir.

"If a trader was purchasing goods sometime on December the 20th, 2022, and their prices went up until December the 31st, that means that they already had a new input. When they receive a new input, then they have to do a new calculation. Traders form their prices so that they have an input price from the manufacturer, that is, the supplier, increased by their own margin and then by VAT. In this entire process which is carried out, it can be seen that the trader didn't increase their margin even though they had an increase in costs," he concluded.

For more, make sure to check out our dedicated news section.

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.

For more, check out our news section.

January the 20th, 2023 - The Croatian State Inspectorate has been on the hunt for those stores and goods and services providers unjustifiably raising their prices and has uncovered some startling price hikes.

As Poslovni Dnevnik writes, ever since January the 5th, 2023, when the Croatian Government adopted a conclusion on the implementation of the principle of prohibiting unjustified price increases, the Market and Tourist Inspection of the Croatian State Inspectorate has been carrying out increased inspections aimed at determining whether there has been an increase in the prices of goods and services immediately before the introduction of the euro as the country's new official currency.

Inspections are being carried out on the basis of the Law on the State Inspectorate, the Law on the introduction of the euro as the official currency in the Republic of Croatia, the Law on Consumer Protection and as a result of the aforementioned Conclusion of the government.

Until January the 19th, the Croatian State Inspectorate carried out a total of 1,145 inspections. In 25.2% of the performed inspections, excluding inspections in which the facts are still being determined (163 of them), unjustified price increases which took place December the 31st, 2022 were found.

Out of the total number of inspections, the market inspection of the Croatian State Inspectorate carried out 659 inspections (of which there were 282 inspections of service providers, 280 inspections in retail trade and 97 inspections into retail bakery products).

In the supervision of the market inspection, unfair business practices involving unjustified price increases were found in a concerning 87 cases, of which in 53 cases were discovered in service activities, 19 in the activity of retail trade in bakery products and 15 in other forms of retail trade.

The average unjustified increase in service prices stands at 20%, and in some cases the increase has reached a disgusting 126%. For example, the Croatian State Inspectorate found an increase in photography services of 57%, individual hairdressing services by 126%, private parking services by 25%, self-service car wash services by 50%, and that list goes on and on a bit more.

In the retail trade sector, an unjustified increase of 17% was determined on average for controlled products after December the 31st, 2022, for example - chicken and turkey meat, dried meat products, water, juice, eggs, confectionery, dairy products, animal feed, canned vegetables, all shot up considerably.

Likewise, in the retail trade of bakery products, we've been continuing to record an increase in the prices of both bread and other bakery products of up to 15% on average, and exceptionally, for some inspections, an increase of 20 to 30% was found for individual bakery products. Tourism inspectors carried out 486 inspections, of which in 161 inspections (33.1%) they came across an unjustified increase in the prices of catering and hospitality services.

In 72.6% of the completed inspections in which unjustified price increases were found, business entities returned their retail prices to the levels they were at back on December the 31st, 2022 immediately.

Due to the violation of unfair business practices from 149 of the Act on Consumer Protection, 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 completed inspection.

In the completed inspections, 234 fines in the amount of 399,489.09 euros (3,009,950.55 kuna) were issued with their accompanying misdemeanor orders against business entities. Croatian State Inspectorate inspections will continue in the name of consumer protection with each inspection being part of its own respective jurisdiction.

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July the 7th, 2022 - The State Inspectorate has stated that slightly more than half of Croatian tourist facilities are actually operating according to the proper regulations.

As Poslovni Dnevnik writes, the above-mentioned conclusion can be drawn data obtained by the State Inspectorate, which announced recently that through 621 inspections carried out during the month of June, 336 Croatian tourist facilities (54 percent) operated according to the current rules, while 285 or 46 percent were in the group of those where inspectors found 442 various violations of the regulations.

"For 162 violations of various kinds, the State Inspectorate's inspectors applied the principle of giving an opportunity for correction, that is, they made it possible for the owners and and managers of said Croatian tourist facilities to correct the identified irregularity or irregularities during the inspection.

For 280 violations of the current regulations, 16 indictments were submitted to the competent courts, 20 misdemeanor orders were issued, and 61 fines were collected at the place where the misdemeanor was committed. Due to the identified violations, the inspectors of the State Inspectorate issued a total of 250 administrative decisions," the State Inspectorate announced.

They noted that the most frequent violations of the regulations were related to the failure to highlight the notification on how a customer/client may submit a written complaint and the failure to observe the prescribed working hours. In addition, the sanitary inspection found a number of cases in which the workers didn't pass health education courses, and the environmental protection inspection found irregularities related to improper separation of waste, according to the press release.

The labour inspectorate found that a total of 20 workers, citizens of third countries (non EEA), had not been registered for mandatory pension insurance before starting work by their employers.

Coordinated inspections of inspections by the State Inspectorate in the catering and tourism industry last until August the 31st, 2022.

For more, make sure to check out our dedicated business section.

February the 17th, 2022 - Spring is beginning to (very slowly) spring, and the arrival of beautiful wild Croatian flowers can be seen in certain parts of the country in forests, along grass verges, and in gardens. If you're caught picking or trying to sell them without permission, however, both you and your bank account will be in for a shock.

As Poslovni Dnevnik writes, the Croatian State Inspectorate has stated that with the appearance of the first wild spring flowers, and unfortunately owing to their soft and beautiful appearance, people have begun picking them and removing them from their natural, wild environments, which directly affects their sustainability. Therefore, the State Inspectorate would like to remind people that it is forbidden to pick and sell strictly protected species of Croatian wild flowers which begin appearing during spring.

These are snowdrops (Galanthus nivalis L.), sweet or English violet (Viola odorata L.), dogtooth violet (Erythronium dens-canis L.) or snowflakes, which look like larger snowdrops (Leucojum spp.) It is necessary to obtain the permission of the Ministry of Economy and Sustainable Development before any of these can be touched, the State Inspectorate stated.

They added that, in accordance with Art. 64 of the Law on Nature Protection, the decision of the competent ministry must be obtained for the collection/removal from nature of Croatian flowers which are native and wild for the purpose of their processing and subsequent sale.

It isn't necessary to obtain the permission of the competent ministry for the collection of native wild Croatian flowers for yourself, whereby the collection of these plants for ''personal needs'' is considered the collection of up to five individual pieces of underground parts of the plants (bulbs, tubers, roots or rhizomes), or up to two kilograms of stems with leaves and flowers, five stalks (of thumb and forefinger circumference) of stems with leaves and/or flowers, one kilogram of leaves, one kilogram of flowers, or 0.5 kilograms of seeds per day.

A fine in the amount of 25,000 kuna to 200,000 kuna for a legal entity, 7,000 kuna to 30,000 kuna for a natural person and a responsible person from within a legal entity for the taking of native wild Croatian flower species for processing/sale without the explicit permission of the competent ministry shall be imposed.

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