This regulates how the required range of retail chains must inform customers about the government’s latest move affecting the retail sector, the mandatory campaign. It should be noted that traders are obliged to introduce mandatory promotions between June 1, 2023 and September 30, 2023.
We wrote about the history here:
Pursuant to this, CLXIV of 2005 on trade. according to the Act (hereinafter: Gardening).
- a) a hypermarket, a large supermarket, a supermarket, a discount store and a retailer operating a store with a floor area smaller than the minimum area of the discount store, but larger than 200 m2 gross, or
- b) the trader operating a store with a gross floor area not exceeding 200 m2 uses the information sheet containing the formal requirements, image elements and text according to Annex 1 in order to inform customers.
A trader not falling under the scope of the above paragraph informs the customers by posting a leaflet containing the formal requirements, image elements and text according to Annex 1 in a clearly visible place.
The information sheet
- a) at all entrances to the store that can be used by customers, the obligee according to point a) of paragraph (2), on a clearly visible information board of the same size as the information boards normally used in the store, but at least 297 × 420 millimeters in size (A3 size),
- b) at the entrance of the store that can be used by customers, the obligee according to paragraph (2) b) on a clearly visible information board of the same size as the information boards usually used in the store, but at least 210 × 297 millimeters (A4 size),
- c) the obligee pursuant to paragraph (3) must post the notice at the entrance of the store that can be used by customers or in other places, on a clearly visible information board and on its online interface, the same size as the information boards normally used in the store, but at least 210 × 297 millimeters (A4 size) .
The Garden. according to the trader who only conducts mail order trade, as well as the trader who has an internet website, publishes the information according to Annex 1 in a clearly visible size on the opening page of his website.
The decree, signed by Minister Antal Rogán, enters into force the day after its announcement.
And this is what the annex looks like, what the stores must display, about the mandatory promotions of the 20 products concerned.
What’s going on around the shops?
In recent months, inflation has really run wild in Hungary, the rate of currency deterioration is the highest in the entire European Union (it is true that the rate of price increase has already started to slow down in recent months). Within this, the level of domestic food inflation in the entire EU stands out.
We previously published several analyzes on the background of this:
The government basically cites external causes behind the runaway inflation in Hungary (the current decree is also about reducing “wartime food price inflation”), other economists and some market players, but even the experts of the central bank, on the other hand, drew attention to the fact that the government measures aimed at the retail sector and food prices partly drove up prices (special tax and extra profit tax, price caps, mandatory quantity maintenance, series of penalties). In addition to all this, these steps had serious consequences for the entire food supply spectrum, and small shops were also the biggest losers from the measures of the past period (according to the latest data, the number of retail units decreased by 4,500, but the increase in overhead costs obviously also played a role in this). .
It is therefore no coincidence that the government is trying to reduce inflation by all means, one of these new steps being the mandatory campaign, as well as the online price monitoring system that follows.
Cover image source: Ákos Stiller, Bloomberg via Getty Images