Sunday 11 April 2021

Another Ruling in Favor of Protectionism, Sala IV Ratifies Ban On Rice Promotions

The Constitutional Court ratified the prohibition to sell rice with another "free" product. Merchants argue that such a ban hurts the consumer.

 

The price of rice in Costa Rica is fixed by law. The Constitutional Court ratified the prohibition to sell the rice with some other “free” product stuck with tape on the side of a bag rice with a tape, called “bandeo” and a common practice by retailers in Costa Rica.

In Costa Rica, the Constitutional Court or Sala IV has rejected an appeal of unconstitutionality against the prohibition imposed by the Ministry of Economy, Industry and Commerce (MEIC) on carrying out promotions in the rice retail trade in the country.

- Advertisement -

Rice is the grain product most consumed product in Costa Rica and the only one that maintains prices fixed by law.

The price of rice in Costa Rica is fixed by law.

Questioned is the prohibition of the retail practice called “bandeo”, combining another product, usually taped to the package of another, in this case, a bag of rice. Merchants commonly the bandeo in many other product promotions, such as pastas, sauces, snacks, beverages and even cleaning products.

The bandeo is used compete in the market since the price of rice can not be lowered.The practice has been rejected by the national rice sector, particularly because it is carried out, on many occasions, with imported grain at lower prices than local value, calling it an unfair competition.

The Government, through MEIC, responded to the complaint and prohibited such offers and promotions by decree signed by the President on April 4 of this year.

- Advertisement -

The Corporación de Supermercados Unidos (Walmart, Masxmenos, Pali) filed an appeal with the Sala IV.

The argument put forward by the magistrates when rejecting the appeal of unconstitutionality filed by Walmart was based on the fact that “… that type of promotion undermines the measure on price fixing. These are commercial practices that tend to evade or circumvent such pricing, the ruling said.” The ruling was made on July 26.

Mariela Pacheco, Walmart’s Corporate Affairs coordinator, said that the ratification by the Sala IV harms the consumer since it will not be able to receive additional free products with they buy a bag of rice.

In addition, the measure foments the unfair competition before the incapacity of inspections on the part of the MEIC, according to the supermarket chains.

“We have repeatedly said that this legislation is not complied with by all the commercial establishments in the country and we have told the MEIC authorities that there is a material impossibility of conducting inspections at more than 8,000 commercial establishments that sell food,” Pacheco said.

In the issue of fixing the price of rice, Pacheco argues that it has proved that it does not benefit the consumer, but rather a few industries in the rice business, and very lucrative for them.

- Advertisement -

“Pricing fixing,” she added, “is a temporary measure that in the case of Costa Rica has almost become permanent.

“We will analyze the resolution to see how we will proceed,” she concluded.

Source: La Nacion

- Advertisement -

FACT CHECK:
We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

Ricohttp://www.theqmedia.com
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

Health officials against Covid-19 vaccination lose Constitutional Court appeal

QCOSTARICA.COM - Health officials who oppose being vaccinated against Covid-19 lost...

Constitutional Court: detained can remain a maximum of 72 hours in OIJ cells

QCOSTARICA - The magistrates of the Constitutional Court reiterated this Tuesday...

MOST READ

“Nicaragua is not a Republic, it is a 16th century monarchy”

TODAY NICARAGUA – If he wins the presidency of Nicaragua, the first international trip that presidential candidate Arturo Cruz would make would be to...

China is donating 150,000 coronavirus vaccine doses to El Salvador

Q24N - "I received a letter from President Xi Jinping, where he tells me that he will donate 150,000 vaccines against covid-19 to...

More airlines and flights predict a rebound in tourism for the second semester

QCOSTARICA - The arrival of more airlines to Costa Rica, the opening of new routes and frequencies and the reactivation of airlines that paralyzed...

Ruta 27: No one hurt after car falls off bridge lands on road below

QCOSTARICA - "It felt like an earthquake," described Eduardo Retana, the driver of the pickup truck that had the unfortunate luck shortly after noon...

10 Healthy Habits To Boost Your Brain Health

A healthy mind resides in a healthy body, therefore we must keep our surroundings clean and positive which would keep us lively and it...

How Costa Ricans Are Curbing Their Lockdown Boredom?

Maybe you hate lockdowns, and we don’t blame you. They are definitely necessary, as there are plenty of advantages. Besides the health benefits of...

Bolsonaro’s ‘genocidal’ Covid response has led to Brazilian catastrophe, Dilma Rousseff says

Q REPORTS (TheGuardian) Jair Bolsonaro’s perverse and “genocidal” response to one of the world’s deadliest Covid outbreaks has left Brazil “adrift on an ocean...

Work on the Circulavacion Norte Resumes

QCOSTARICA - The Minister of Public Works and Transportation (MOPT), Rodolfo Méndez Mata, signed Friday afternoon the extension of the addendum with United Nations...

Cross-Border Investigation: Tracking the Covid-19 Money

Q REPORTS - Central American governments allocated millions of dollars to attend the pandemic. In what and to whom did the money go? This is...

WANT TO STAY UP TO DATE WITH THE LATEST!

Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.