Bottled water price cap aims to support consumers

Capping the price of bottled water at specific locations, such as airports, ports and beaches is important to protect and support consumers, the commerce ministry said on Wednesday, following controversy over a relevant bill.

The ministry was responding to the House commerce committee’s announcement issued the previous day which accused the Consumer Protection Service of misleading the public about the bill’s intent. The bill aims to set maximum prices for bottled water at designated points of sale.

In its statement, the ministry rejected the position of the House commerce committee, which argued that the price cap would create unfair competition between locally produced and imported bottled water.

The ministry highlighted that the ultimate purpose is to protect and support consumers, especially during periods of adverse economic conditions and external crises that adversely affect their financial interests.

It added that the bill underwent extensive public consultation from September 14, 2023, to November 2, 2023. During this period, the initial draft was circulated for feedback to all relevant stakeholders in both the public and private sectors. The ministry noted that comments and suggestions from these stakeholders were considered and, where possible, incorporated into the bill.

“Therefore, the claim that the suggestions from the stakeholders during the public consultation were not taken into account is in no way valid,” it adds.

Regarding the concerns from stakeholders who oppose the bill due to potential market intervention and competition distortion, the ministry noted that the Competition Protection Commission does not share these views. Additionally, the bill received legal review and approval from the Legal Service and the European Commission.

The ministry further clarified that “it has never been implied that the proposed bill concerns a universal application of a cap on the sale price of water”. The bill’s title and Article 4 make it clear that the minister will set maximum selling prices for a specified period for certain products at designated points of sale.

Furthermore, the ministry refuted claims made during the House commerce committee session on July 9, 2024, that the Consumer Protection Service was not ready to implement the law and issue the decree for the current summer period.

The ministry explained that once the legislative framework is approved by the House of Representatives, the service will immediately issue the Ministerial Decree, initially covering airports, ports and beaches, taking into account the operating costs and specifics of each location. Subsequent decrees for other points of sale will follow.

It clarifies that the issuance of a Decree on when, where, and the level of maximum prices is the responsibility of the executive power and cannot be a precondition for passing the legislative framework.

The bill was an initiative of the consumer protection service of the ministry of commerce which was communicated in a letter to the chairman of the House commerce committee on March 27, 2024.