Consumer association reports Markets Commission for failing to tackle IVA increases

The FACUA, Consumers in Action group has contacted the Ombudsman to file a complaint against the National Commission for Markets and Competition (CNMC) after verifying that the body has not yet responded to any of the association’s complaints against shops for not applying the mandatory IVA reduction on certain basic foods.

Seven supermarkets and hypermarkets were denounced by FACUA in January and February for this reason: Alcampo, Carrefour, Eroski, Hipercor, Día, Aldi and Lidl. In all cases, the association, within the framework of the monthly study that it carries out to control whether the establishments are applying the measure, has detected irregularities in products in which the IVA reduction has not been affected.

FACUA has also been carrying out monthly updates on these complaints as soon as new irregularities are found on the part of the different channels. They addressed the CNMC up to six times to ask them to investigate the increase of up to 44% of the prices of food affected by the drop in IVA.

Thus, Royal Decree-Law 20/2022 approved on December 28 establishes said decrease -from 4 to 0% or from 10 to 5%, as the case may be- must be passed on in full, so that price increases can only be applied during the months of validity of the regulations if there is an increase in costs. Circumstance that none of the denounced companies has accredited.

In this sense, and despite the months that have elapsed, CNMC has not responded to any of the complaints that FACUA presented at the beginning of the year. This supposes, in the eyes of the association, a true abandonment of functions by an organisation whose main task is to monitor, detect and punish conduct contrary to the market and harmful to consumers.

But, in addition, the Law of Common Administrative Procedure of Public Administrations establishes that the Administration “is obliged to issue an express resolution and to notify it in all procedures” and that, if there is no maximum level regulated by any norm, “this will be of three months.”

That is, by refusing to provide any response to the complaints filed by FACUA in January and February, the CNMC would be failing to comply with the deadlines set by law.

For all these reasons, the association asks the Ombudsman to urge the National Commission for Markets and Competition to process and respond to FACUA’s complaints against the seven large stores for failing to comply with the regulations that oblige them to fully pass on the IVA reduction of certain staple foods.

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