When the government caps profit margins, retailers often resort to subtle or illegal tricks to make up for lost revenue, including false discounts, hidden fees, misleading packaging, incomplete information, and aggressive marketing. To address these practices, Serbia is preparing a Law on Unfair Commercial Practices, aligned with the 2019 EU Directive, aimed at regulating the food supply chain and protecting both consumers and small producers.
The law will protect consumers from deception, false discounts, and aggressive advertising while ensuring accurate product information. Producers will be shielded from unfair practices, such as extortion, unjustified shelf fees, delayed payments, and one-sided contract changes. It guarantees fair, transparent contracts and timely payments, leveling the playing field for small producers who previously struggled against powerful retail chains.
For retailers, the law provides clear rules, fair competition, and sanctions for violations. For the state, it strengthens market trust, aligns with European standards, and ensures stable, reliable supply chains. A recent EU case involving Germany’s Aldi Süd, which misled consumers with false banana discounts, highlights how such laws enforce fairness and accountability in practice.
This law is seen as a crucial step toward a more transparent and equitable market in Serbia, benefiting consumers, producers, and the overall economy.
