Fair pricing agreement

Updated: 22.09.2010

What is fair pricing agreement?

The purpose for fair pricing agreement is to prevent economically unreasonable price increase of goods and services in conversion to euro. Experiences of many countries have shown that similar agreements have helped to prevent unreasonable price increase and joining in has given the people affiliated with it an opportunity to assure the public that conversion to euro in itself does not involve price increase.

Enterprises that have voluntarily joined in on the agreement give their consent that they will follow good practice and do not increase their prices unreasonably in the conversion to euro. This is a sign of fair and responsible behaviour in regard to the customers. Those affiliated with the agreement have the right to use a sticker with a corresponding logo and other visual materials.

The fair pricing agreement is led by Estonian Chamber of Commerce and Industry.

 

Who can join in on the fair pricing agreement?

All people providing goods and services can join, irrespectively of their legal form, including retail- and wholesale enterprises, manufacturers, service providers, local governments and enterprises with local government and state shares.

 

How to join?

In order to join you need to fill in an application.

The planned beginning for joining is August 28, 2010 and joining is possible during the whole estimated period of validity of the agreement.

When the application is submitted and there are no deficiencies regarding the application the joined party’s name will be entered into a public list. If necessary, the person joining will be contacted in order to specify the data – generally if there are discrepancies or deficiencies. If the application is submitted correctly and without deficiencies, the joining will take no more than one working day.

 

When can I start using the agreement logo and how does claiming of the logo take place?

 The right to use the logo will arise after a person has joined in on the agreement, read the terms of using the logo, confirmed following those and been entered into the list of participants in the euroweb. Previously stated affiliation activities can be done in euroweb along with formalizing the affiliation agreement application.

Those who affiliate get the sticker with the agreement logo free of charge. These are produced in two sizes 210X88 mm and 105X44 mm and a person is sent 2 bigger and 3 smaller stickers per place of business. In case the quantity is bigger, the terms of quantity and delivery will be agreed upon separately.

The person who joins can also come and collect the logo themselves at the Estonian Chamber of Commerce and Industry (Toom-Kooli 17, Tallinn).

You can also use the logo digitally, which might be necessary if, for example, the affiliated person wants to display an enlarged version of it at the location of offering services or goods. You can use the logo on all sorts of promotional materials keeping the proportions and conforming to the principles of the style book. You can see the style book here (link).

 

Who monitors the following of agreement terms?

Consumer Protection Board monitors following the agreement. Recommended prerequisite in resolving a complaint by Consumer Protection Board is that the complainer has first turned to the enterprise that is suspected of the breach of agreement and the entrepreneur has refused to respond to or does not agree with the complaint. Turning first to the enterprise is not mandatory but recommended. You can notify us on the suspicion of breach of agreement both by phone and filling out a corresponding form in the euroweb.

Both the Ministry of Finance (or an authorized person) and Consumer Protection Board monitor the terms of the right of use (activity license) of the logo.

 

When are the sanctions imposed on a person affiliated with the agreement?

Sanctions are imposed if a breach of agreement and unreasonably price increase in conversion to euro is established. Unreasonable price increase is generally a situation where the affiliated person is unable to present any economic justifications for the price increase or admits that the prices have been increased due to the conversion to euro.

Price increase is definitely not unreasonable if it is caused by circumstances independent of the affiliated person – for example, if the retailer is forced to increase prices because the wholesaler has increased its prices or the purchase price is higher due to the price increase on the world market. In such a situation entrepreneur’s price increasing cannot be regarded unreasonable.

 

What kind of sanction can be imposed on a violator?

 Consumer Protection Board might suggest (orally or in writing) carrying out some activity to the affiliated person, so that the affiliated person’s activity is in accordance with the agreement. Upon establishing the breach of agreement, the affiliated person can be erased from the list.

It is also possible to impose fines. Consumer Protection Board has the right to fine the person in breach of the agreement according to the Consumer Protection Act (using a method of unfair trading) up to 50 000 EEK (e.g. in a situation where there is a breach of agreement and the agreement logo is used).

It must also be taken into account that if a person is erased from the list of affiliated persons, he no longer has the right to use the logo. Erasing a person from the list is not a prerequisite for taking away the right of use of the logo, but the right of use can also be taken away if a each of contract is established.