Unfair Commercial Practices Directive, Chapter 2, Section 2, Article 8 Unfair Commercial Practices Directive, Chapter 2, Section 2, Article 9

Increasing the consumer selling price of flour when suppliers' prices have not changed can be considered an abusive practice, especially in situations, such as the covid pandemic, where consumer behaviour may change.

During the inspection in the trader's business premises (a store), it was determined that there were changes in the price of flour. The price for 5 kg was 15.99 Croatian Kunas on January 1st 2020, and on March 12th 2020 it was increased to 17.99 Croatian Kunas, and on March 16th 2020 to 18.99 Croatian Kunas. It was determined that the purchase price (the price that the seller pays his supplier) of the product at the time of the increase in the retail price of the product (March 13th 2020 and March 16th 2020) had not increased. Therefore, all of the above indicates that in the period after the official declaration of the epidemic of the disease COVID-19 (decision of the Ministry of Health of the Republic of Croatia on declaring the epidemic of the disease COVID-19 caused by SARS-COV2 virus of March 11th 2020) and until the day of the inspection, the trader charged higher prices even though it was unnecessary since the price he was paying his supplier was still the same and had not increased at all.

Is raising flour prices during a pandemic an unfair business practice when the supplier's price hasn’t changed?

The trader's behaviour is assessed in such a way that it is considered he used an unfair commercial, i.e., an aggressive commercial practice, because for the said product, contrary to the Decision on exceptional price control measures for certain products (Official Gazette 30/20), the price was increased, along with the fact that there was no increase in the purchase price of these products.

The Court notes that the trader increased the retail price despite the circumstances in which consumers find themselves following the outbreak of COVID-19 caused by the SARS-COV2 virus, which are so important that they could diminish consumers' ability to reason, and the trader was aware that these circumstances would influence the consumers decision in relation to the product.

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This opinion should be followed by other courts and inspection.