Fundamental changes come from 1 June concerning all supermarkets in Hungary

The government published a new decree concerning compulsory price reductions in big supermarkets in Hungary. The Orbán administration shared the product categories in which they want a price decrease and cleared that if the companies do not follow the new rules, authorities may fine or even close them.

According to portfolio.hu, the government’s relevant decree was published in the Hungarian Gazette (Magyar Közlöny) yesterday evening. It says that the newly introduced compulsory price reduction period will be between 1 June and 30 September and applies to supermarkets with a net income exceeding HUF 1 billion (EUR 2.66 million) in 2021. Moreover, the retailer has to introduce 24-hour-long price reductions or 168-hour-long ones. Furthermore, it concerns even mail orders.

The decree says that retailers should decrease prices of the following products: poultry, pig, beef and other kinds of meat, fish, canned fish, processed meat products, milk, sour cream and replacements, yoghurt and similar products. Furthermore, supermarkets will have to reduce the price of cheese, butter, margarine, vegetable oils and animal fats, bread, pastries, cereals, flour, sugar, fresh vegetables and fruits, vegetable and fruit juices, convenience foods, spices, seasonings, coffee, tea, mineral water and soft drinks.

All supermarkets concerned

The decree prescribes a minimum 10 percent price decrease of at least one of the aforementioned products at least each week between 1 June and 30 September. The price base should be the lowest price of the given product at which the retailer purchased it in the preceding 30-day-long period. The retailer must mark the fact of price reduction and its extent.

Furthermore, the retailer should stock at least as many products as the one(s) concerned by the price reduction scheme as it sold average in 2022. That means they will not run out of promotional items.

Authorities will monitor all supermarkets from 1 June and can fine them. The sum may fall between HUF 500,000 and HUF 3 million (EUR 1331 – 8,000). However, the worst-case scenario for the supermarkets is a permanent closure provided they breach the new rules seriously.

Source: