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News

Inedible bonuses

It seemed like the non-food retailers had a significant advantage over retailers selling food items for the past two years. The non-food retailers were not subject to the retail law provisions that prohibit to charge suppliers any bonuses other than the volume ones. But the Federal Antimonopoly Service is now after non-food vendors as well.

The Tatarstan FAS branch reported the initiation of proceedings against the home appliance retailers - "Eldorado", "Media Market Saturn", "Auchan", and "Bering Strait Delta". FAS accuses them of coordinating their actions. All of the above mentioned chains demanded the suppliers to pay bonuses for volume, marketing services and much more. The bonuses added up to 5-15% of total shipment. According to FAS, these retailers determine the price of goods in the cities where their stores can be found since the suppliers sell up to 50% of their merchandise to them. This clearly violates the competition law and can lead to a substantial fine of 0.01 to 0.15% of the sales revenue. Lawyers believe that FAS accusations are unsubstantiated. But, according to the lawyers, since there is a case, it means that FAS is after non-food retailers now.