Background information

On 1st March 2024, the government activated the implementation of four measures aimed at reducing prices on products in supermarkets, targeting to address inflation and boost healthy competition throughout the supply chain. These new measures were institutionalized by Law 5055/2023 (articles 15-17) on 29 September 2023, as well as Law 5082/23 (articles 38-40) on 19 January 2024. According to the Minister of Development, these are structural interventions aiming at reforming the retail market and correcting distortions in commercial practices. The primary objective of all relevant government initiatives is the permanent de-escalation of inflation on supermarket products for the benefit of the consumer.

Content of measure

On 1 March 2024, the implementation of four measures to address price increases on products sold in supermarkets began. The measures include:

• Reduction of initial prices of products sold by suppliers to retail businesses and passing the benefit to the consumer in specific product categories. Suppliers are required to reduce their offers to retail companies by at least 30% off the initial price that was in effect on 31 December 2023. The reductions apply to cleaning products and personal hygiene products (more than 3,000 products).
• Cap on the gross profit of infant milk companies selling the formula in Greece. This cap is equal to the operational cost of the business, increased by 7% of net sales.
• Net-Pricing on fresh products. Suppliers of fresh products (fruits, vegetables, meats) are required to sell their products to retailers at "clean" prices. Allowances for returns of products and spoilage are allowed only up to 3% of the selling price.
• Prevention of unjustified price increases. Suppliers to supermarkets who increase the prices of their products are prohibited from implementing promotional activities for three months on those products. The measure applies to all products except fresh products and certain durable consumer goods. This measure began in February 2024.

Use of measure

According to initial indications, the reduction in initial selling prices appears to have brought about a significant average decrease in final prices across all product categories. In baby and toddler diapers, the average price reduction is 18.1%, in shampoos, bath foams, and conditioners 17%, in toothpaste 15.1%, in laundry detergents 15.6%, in dishwashing detergents 16%, in all-purpose cleaners 15.8%, and in soaps 12.7%. The cap on gross profit in infant milk is expected to result in approximately a 15% average reduction in initial supply prices for most infant milk products. Since infant milk is sold without promotional activities, these reductions (about 15%) will directly translate to the shelf price. The prevention of unjustified price increases, which began in February 2024, showed that in February 2024, 890 product codes were subject to price increases, whereas during the same period in February 2023, 3,760 product codes had been subject to price increases. The implementation of the regulation contributed to a 76% reduction in price increases from one year to the next.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Sector specific set of companies Other businesses	Applies to all citizens

Actors and funding

Actors	Funding
National government Company / Companies	No special funding required

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	No involvement	No involvement
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: N/A

Involvement

There is no any involvement of social partners.

Views and reactions

The measure welcomed as positive by all the stakeholders and citizens when it was announced in September 2023. However, for a substantive evaluation, time will be needed. From the initial reports, the picture presented in the media is mixed. Some products' prices have been significantly reduced, in others, there has been a halt to misleading offers, and in others, prices have remained at the same level. According to the initial reactions of consumer organizations (Union of Consumers in Greece and EKPOIZO), there is skepticism about the extent of price reduction as well as the number of products affected.

Sectors and occupations

This case is not occupation-specific.

Sources

• 29 September 2023: Νόμος 5055 (άρθρα 15-17) (www.kodiko.gr)
• 19 January 2024: Νόμος 5082 (άρθρα 38-40) (www.kodiko.gr)
• 29 February 2024: Έναρξη εφαρμογής τεσσάρων δραστικών μέτρων κατά του πληθωρισμού – Οι μειώσεις των τιμών στα ράφια των super marke (www.mindev.gov.gr)
• 04 March 2024: Απόστολος Ραυτόπουλος / Έτσι εξαπατώνται οι καταναλωτές για «μειώσεις» τιμώ (www.avgi.gr)