The new Venezuelan law would be appreciated by those signing Britain’s 38 degrees petition to Asda and the CEOs of milk processors and retailers asking them to:
- pay a fair price for the milk you buy from dairy farmers
- and ensure that the price paid covers, at the very least, the cost to farmers of producing the milk.
Reuters reported, earlier this year, that a Fair Price Law limiting costs, prices and profit margins across the Venezuelan economy had come into effect. It builds on the 2011 Fair Price and Cost Law.
The new law sets a maximum profit margin of 30% and requires firms to obtain “fair price certificates” to access dollars through the country’s currency control mechanism.
In a national broadcast President Nicolas Maduro said that the Law for the Control of Fair Costs is intended to establish a necessary balance between the cost of production, of importation, of profit margins that are limited to a maximum of 30%, and the fair price of all products.
Profit limits will be set by product, economic sector, geographical area, sales chain and economic activity and a limit will be set for commercial leases charged to retailers in shopping centres.
The new price control law is designed to prevent over-pricing, speculation and other abuses against consumer rights which have been occurring in Venezuela and establishes prison terms for those charged with hoarding or over-charging.
But in Britain . . .