1.  What kind of price reduction campaigns are provided by law?
  2.  What are the requirements and minimum content for price reduction announcements?
  3.  Are there any limitations on the period of a price reduction campaign?
  4.  What must the displayed price/s include and how must the prior and the new price be indicated?
  5.  Are there any competition law aspects of price reduction campaigns?
  6.  Are there any fines for infringing pricing rules?

jurisdiction

North Macedonia
Add jurisdiction

1. What kind of price reduction campaigns are provided by law?

Pursuant to the Law on Consumer Protection, price reduction campaigns are named as “sales incentives”, which are special forms of putting goods on the market. Sales incentives could be performed as:

  • a sale (in Macedonian: “распродажба”),
  • an action sale (“акциска продажба – акција”),
  • a promotional sale (“промотивна продажба”),
  • a seasonal discount (“сезонско намалување”),
  • a sale of damaged or erroneous goods (“ставање во промет на стоки со недостаток или грешка”), and
  • a sale of goods past their expiry date (“ставање во промет на стоки на коишто им изминува рокот на употреба”).

2. What are the requirements and minimum content for price reduction announcements?

The particular sales incentive must contain the exact wording as defined in the Law on Customer Protection. Additionally, the following information should be made available:

  • the type and the manner of the sales incentive,
  • clear and precise determination of the goods subject to sales incentive,
  • start date and duration of the sales incentive,
  • all other special terms related to exercising rights related to the sales incentive,
  • information about the comparison and presentation of the regular and discounted price,
  • if any - expenses borne by the customer related to the sale.

3. Are there any limitations on the period of a price reduction campaign?

“Sale” is allowed only in following cases: (i) termination of business activities; (ii) termination of business activities in current premises; (iii) termination of the sale of certain goods; or (iv) conducting complex construction operations on the business premises. The sale described under items (ii) and (iii) above are allowed only if the retailer stops selling the particular goods on its business premises in a period of at least six months following the end date of the sale.

An “action sale” can be performed for not longer than 30 days. The goods subject to an action sale must be clearly, visibly labelled with “action” or “action sale”. During advertising of the action sale, the retailer must include information about the duration of the action sale.

A “promotional sale” can be performed for a maximum of eight days. The goods subject to promotional sale must be clearly and visibly labelled with “promotion” or “promotional sale”. During advertising of the promotional sale, information on the duration of the promotional sale must be included.

A “seasonal discount” may be performed following the end of the respective season, in the following periods: (i) summer season (i.e., between 25 August and 25 September), and (ii) winter season (i.e., between 25 December and 25 January).

4. What must the displayed price/s include and how must the prior and the new price be indicated?

Prior to implementing special forms of putting goods on the market, the retailer is obliged to record in its trade records the prior price and the discounted price, as described by Trade Law.

When special forms of putting goods on the market are active in the same time, each special form is considered independent.

When the special form of putting goods on the market includes a discount, the prices should be presented in one of the following ways:

  • by presenting the discounted new price next to the visibly struck through prior price,
  • by presenting the new price and the prior price with the words “new price” and “old price” respectively,
  • by presenting the percentage of the price discount simultaneously with the discounted price next to the visibly struck through prior price.

The prior sale price is the lowest price in a period of at least 30 days before the commencement of the special form of putting on the market.

Unless the relevant goods are clearly labelled, the goods subject to the special form of putting on the market should be physically separated from those which are not.

5. Are there any competition law aspects of price reduction campaigns?

The Macedonian Law on the Protection of Competition prohibits the following activities related with pricing:

  • agreements between undertakings (i.e., companies), decisions by associations of undertakings, and concerted practices which have the distortion of the competition as their object or effect, in particular activities that directly or indirectly fix purchase or selling prices or any other trading conditions. Any such agreement and decision or individual provisions are null and void.
  • abuse of a dominant position on the relevant market or a substantial part of the market, in particular in cases of the direct or indirect imposition of unfair purchase or selling prices or other unfair trading conditions.

6. Are there any fines for infringing pricing rules?

The fines for infringing the Law on Consumer Protection rules presented above are:

  • EUR 500 - 10,000 (for the legal entity, per offence) - depending on the size of the legal entity,
  • EUR 150 - 500 (for the legal entity’s authorized person, per offence),
  • A temporary ban on the performance of a separate business activity (for the legal entity and for the legal entity’s authorized person),
  • confiscation of goods (as a special measure).

The fines for entities that infringe the competition law rules presented above are:

  • up to 10% of the total annual turnover, and
  • temporary ban on the performance of a separate business activity.