“PRODUCT CASE” OF THE FEDERAL PENITENTIARY SERVICE IS IN THE TOP-10 FAS CASES IN 2018

Detainees should have access to goods at the prices similar to the retail market

Fulfilling the rights of the individuals in custody for purchasing food products and the essentials at reasonable prices – is an important element of the entire penitentiary system. In particular, it enables to maintain its humane appearance. In 2015-2017, however, as a result of anticompetitive actions undertaken by the Federal Penitentiary Service, the suspects and accused kept in pretrial wards in Moscow were deprived of this right. Their numerous complaints as well as complaints from their relatives regarding unreasonably overrated prices in the stores located in the territories of penal facilities triggered a relevant reaction from the Antimonopoly Service. This case, investigated by the Department for Control over Social Sphere and Trade is in the top-10 of FAS Central Office in 2018.

Earlier, the Federal Penitentiary Service changed the system of organizing sale of food products, the essentials as well as other manufactured goods for the needs of the suspects and the accused. For instance, sales organization was allocated exclusively to “Kaluzhskoe” Federal State Unitary Enterprise of the Federal Penitentiary Service. It reduced the range of suppliers, market closure for other economic entities except the enterprise and subsequently led to unreasonably overrated prices.

The Antimonopoly Service found that the Federal Penitentiary Service violated Part 1 Article 15 of No.135-FZ Federal Law “On Protection of Competition” of 26.07.2006. FAS issued a warning to the Federal Penitentiary Service to terminate the violations and exercise actions aimed at competition support. In spite of the attempts to challenge the decision and the order on the case by the Federal Penitentiary Service, the FAS position was supported by all Court instances, including the Supreme Court of the Russian Federation.