Development Min.: Why we imposed fines on multinationals

Prices in Greece must follow the corresponding ones in Europe, said Development Minister Kostas Skrekas, in his first statements after the imposition of 2 million euro fines on multinationals Unilever and Procter & Gamble for unfair profiteering.

For more than 100 product codes of the two large multinational companies, the control by the Inter-service Market Control Unit (DIMEA) concluded that the law of the ceiling on the gross profit margin is violated, as it exceeds the corresponding gross profit margin before December 31, 2021. Hence and the announcement of a fine of 1,000,000 euros for each of the two multinational companies.

Development Min.: 2,000,000 euro fines to multinational companies for unfair profiteering”

All kinds of cleaning products, such as bleach, detergents for dishes, clothes and mopping, personal hygiene items such as shampoos and toothpastes and basic household and home care products were among the targets of the checks, as revealed by OT

Explaining the reasons why the ministry proceeded to impose these fines, for the first time the maximum prescribed, as he said speaking to public broadcaster ERT, he emphasized that “we are asking companies to show responsibility. To understand that they cannot try to earn more now, at this time, especially when households are struggling. They need to fix the prices. The prices in Greece must follow the prices in Europe. We cannot have the same product sold in Greece and sold in other European markets, the Greek consumer buying it more expensively or buying it much more expensively and with a lower disposable income. So everyone should consider that it is a matter of social responsibility to provide these household staples at affordable and fair prices. And secondly, it is also a matter of sustainability of the business itself. Because when you finally destroy the consumer base, in the end the business itself will not do well and the products will stop being sold in the supermarkets.”

He also added that although indeed “such fines have never been imposed”, what is more onerous for the companies is the defamation of the product. “So we don’t want to embarrass, drag out, or discredit companies. What we want is for them to comply with the law and they should do so immediately,” he explained.

He also explained that the violations were found in the context of regular and intensive checks carried out by DIMEA without prior complaints, clarifying that: “we check all companies that sell basic consumer products and if we find violations of the law, we will fines are imposed and the penalties will be announced, as long as they certainly exceed 50,000 euros per company. This is what the law provides.”

Possibility of appeal

“Of course they can appeal if they want to the court. I repeat what experience has shown so far. The corresponding fines for misleading discounts imposed on very large chains have been paid. Beyond that, of course, each company can also use legal remedies if it believes it has been wronged. But in the meantime, he’s going to have to reduce the prices of the products on the shelf, reduce the profit margin that exceeds what he had in 2021. And we’ll continue, we’ll re-audit, if we see that they’re not in compliance and they’re not correct the prices of the products and according to the law, then we will check and if we find again that they are breaking the law, fines will be imposed again. (…) For example, a previous company two weeks ago that we imposed a fine on for unfair profiteering, immediately sent corrected price lists on which they have corrected the prices of the products on the shelves and these reductions have been passed on to consumers,” said Mr. Skrekas.

Concluding, he emphasized that many companies, dozens of companies and multinationals are being audited and that any results obtained after the audits are completed will be officially announced. Repeating the Prime Minister’s words, Mr. Skrekas emphasized “the Greek market is not a wild vine, there are controls, everyone should abide by the law to deal with unfair profiteering and no one is above the law.”