Romania’s Government is drafting an emergency ordinance targeting the consumer protection area, including much higher fines for companies breaching the regulations, Ziarul Financiar informed, quoting Deloitte Romania.

The fines would range between 2% and 4% of the companies’ annual turnover to reach 5% for major violations.

The regulations would be tighter in other respects, as well: the fine would be levied over entire company’s turnover (even when only a division breached the regulations) and those found responsible for violations will have to make the sanctions public to their customers for 30 days.

The tighter consumer protection regulations would deal a new blow to local banks, according to Deloitte specialists.

"Given the turmoil in the banking market following the emergency ordinance 114/2018, in my view, these new Consumer Protection regulations come as a further blow against them. Although there has been a massive wave of disputes over abusive clauses, this would lead to a further hindrance to the system," explained Andreea Artenie, Partner at Reff and Associates, Deloitte's legal division.

Another area very likely envisaged by the authors of the ordinance is the retail market, where multinational chains have come under criticism in Romania and more generally in Eastern and Central Europe for double standards.

In a speech held in front of his party's members in mid-December, PSD leader Liviu Dragnea accused multinational companies of bringing "poisoned food" to Romania.

"Food full of poison enters Romania. I ask you, sir from the Consumer Protection, what else do you need to start the program of protecting Romanian children? Do you lack courage?" Dragnea was quoted as saying.

editor@romania-insider.com

(photo source: Pixabay.com)