FINE FOR A REFUSAL TO PROVIDE DATA ABOUT THE REASONS OF INCREASING FOOD PRICES

FAS demands explanations about the growth of prices for cereals, flour, sugar and meat from large suppliers and manufacturers in Chuvashia

Chuvashia OFAS received information from the regional Ministry of Economic Development, Industry and Trade that large food suppliers had increased prices for cereals, flour, sugar and semi-finished meat products. The antimonopoly body requested the necessary documents and data from the above entities for inspection.

Some companies, however, failed to execute the OFAS request; some did not provide full information. For example, “Andigo” Trading Company” Ltd. ignored the request from the antimonopoly body, as a result of which an administrative case is opened against the company. If other economic entities fail to submit the requested documents, Chuvashia OFAS shall also open administrative case against them [1].

Head of FAS Anti-Cartel Department, Andrey Tenishev commented: “We observe overrated prices in some non-chain stores, which form the grounds for inspections. Under the current economic circumstances, caused by the pandemic, it is totally unacceptable to profiteer on consumers. The situation in the Chuvashia Republic shows that the companies directly avoid executing a legitimate claim of the antimonopoly body to submit documentation upon request. Absence of the requested documents indicates that the increase of food products prices was unfounded”.

Background:

According to the explanations given by the Judicial Collegium on Economic Disputed of the Supreme Court of the Russian Federation, under no circumstances violations of  Part 5 Article 19.8 of the Code of the Russian Federation on Administrative Violations (failure to submit, delayed submission or submitting false information, required in accord with the antimonopoly law, to FAS) can be considered minor offences because it undermines the statehood, distorts proper functioning of state institutions, can result in misrepresentation of the inspection findings, infringing the rights and legitimate interests of entities, which operations fall under antimonopoly control as well as other persons.

[1] Under Part 5 Article 19.8 of the Code of the Russian Federation on Administrative Violations