This report from a consumer organization is set to be delivered before Thursday to the National Markets and Competition Commission CNMC. The aim is to document eight large supermarket chains that did not fully apply the VAT reduction on a set of essential foods, a reduction meant to appear in the final selling price. The organization identifies the cost pass-through in the field, noting retailers such as Took, Carrefour, Day, eros, lidl, hyperchorus, and Mercadona. In the cases of Mercadona and Hipercor, irregularities were found across all the examined items, though the group attributes these findings largely to a specific error rather than a systemic fault.
Across the two audits, only one irregular price was observed among 84 items checked for the former chain and 76 items for the latter. The main focus was a Supermarket brand owned by Juan Roig and a chain affiliated with El Corte Inglés, specifically involving bread and strawberries respectively. The noncompliance rate varied, with 17 percent of products out of compliance at Dia (14 of 81 items) and 10 percent at Carrefour (11 of 113 items). It stood at 8.6 percent at Eroski (8 of 92) and Lidl (6 of 70); 7.8 percent at Aldi (5 of 64) and 6.25 percent at Alcampo (6 of 96).
The prevailing explanation for most breaches is that these retailers continued to charge the same prices as in the last days of 2022, thereby failing to reflect the VAT discount in the final product price. Yet, seven out of fifty violations involved items that became more expensive, signaling inconsistent adjustments.
Facua Secretary General Ruben Sanchez urged the CNMC to investigate practices, launch disciplinary actions as needed, and assess whether price increases represent an elevated commercial profit margin in violation of regulation or simply reflect higher costs for these products. Sanchez emphasized concerns that neighborhood merchants, bakers, and fishmongers could be the ones not passing on the VAT reduction, urging retailers to comply.
price intervention
Sánchez used the moment to argue for direct price intervention, not merely a VAT savings that barely nudges consumer costs. He explained that the measure proposed is a price intervention aligned with Article 13 of the 1996 retail law. Consumers may not readily notice a VAT cut, he noted, but the policy remains meaningful for overall affordability.
In any case, the organization’s leadership said Facua will keep monitoring prices in the coming months and has encouraged CNMC and regional authorities to maintain vigilance. Every effort should be combined to maintain market discipline, Sanchez stated, underscoring a collaborative approach to price stability for households across the country.
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