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.
