development, and close geographic and social relations between producers, processors and The proposed regulation must result in the obligation of any entity acting in sales consumers. of food products toward consumers to purchase at least 51% of such products form local, small, allegedly national producers. Moreover, as Article 106 sets forth that the legal entity traders authorized to perform trading activities for food products have the obligation to a organize events for the promotion and sale Romanian food products, with the observance of the sanitary-veterinary legislation effect. The frequency of these events, as well as the opening hours will be established through The aforementioned obligation leads to the situation in which decision of the local council. trader or merchant is obliged not only to purchase specified products from the sources mentioned in Article 103 of the Draft (Romanian products, short supply chain), but also to promote such products. The promotion shall be conducted through organizing special events. If the author of this opinion understood drafters’ intension correctly, such events aim not only at promotion but also direct sales of Romanian food products. Even more, the frequency of the required events and opening hours will arise from decision of local council with no limitation of such discretion of the local authority neither in the Act nor in the Draft. Finally, the Draft contains sanctions in case of the infringement of its provisions. As a result, non-compliance of any trading entity with the above mentioned special obligations is sanctioned with administrative fines specified in Article 11 paragraph 1 letter a) and b) of the Draft. Additionally, in cases of repeated violation, a trader’s functioning authorization can be suspended up to 6 months. Alleged consequences of special obligations imposed on traders in Chapter III1 of the Draft for business and market The above mentioned proposals if they become the law in force must lead to significant – – consequences affecting Romanian trade, especially merchants and traders, not only in domestic but in cross-border dimension too. First of all, as understood by the author of this opinion, the proposed amendments are intended to provide an especially privileged position for products originating exclusively from Romanian territory. This must in turn result in a privileged position of such products in relation to other products (those that do not originate from Romanian territory). Romanian products shall be more displayed in stores, more visible, more promoted, more accessible for consumers, and as a result more will be sold in traders
development, and close geographic and social relations between producers, processors and consumers. The proposed regulation must result in the obligation of any entity acting in sales of food products toward consumers to purchase at least 51% of such products form local, small, allegedly national producers. Moreover, as Article 106 sets forth that the legal entity traders authorized to perform trading activities for food products have the obligation to a organize events for the promotion and sale Romanian food products, with the observance of the sanitary-veterinary legislation effect. The frequency of these events, as well as the opening hours will be established through decision of the local council. The aforementioned obligation leads to the situation in which trader or merchant is obliged not only to purchase specified products from the sources mentioned in Article 103 of the Draft (Romanian products, short supply chain), but also to promote such products. The promotion shall be conducted through organizing special events. If the author of this opinion understood drafters’ intension correctly, such events aim not only at promotion but also direct sales of Romanian food products. Even more, the frequency of the required events and opening hours will arise from decision of local council with no limitation of such discretion of the local authority neither in the Act nor in the Draft. Finally, the Draft contains sanctions in case of the infringement of its provisions. As a result, non-compliance of any trading entity with the above mentioned special obligations is sanctioned with administrative fines specified in Article 11 paragraph 1 letter a) and b) of the Draft. Additionally, in cases of repeated violation, a trader’s functioning authorization can be suspended up to 6 months. Alleged consequences of special obligations imposed on traders in Chapter III1 of the Draft for business and market The above mentioned proposals – if they become the law in force – must lead to significant consequences affecting Romanian trade, especially merchants and traders, not only in domestic but in cross-border dimension too. First of all, as understood by the author of this opinion, the proposed amendments are intended to provide an especially privileged position for products originating exclusively from Romanian territory. This must in turn result in a privileged position of such products in relation to other products (those that do not originate from Romanian territory). Romanian products shall be more displayed in stores, more visible, more promoted, more accessible for consumers, and as a result more will be sold in traders
Opinion_regarding_the_conformity_of_draft_of_the_amendments_to_the_Rumanian_Law_no_321_2009.docx