Control of Prices of Commodities and Services Bill (Amendment - Determining the Difference Between the Consumer Price and the Retailer Price as Maximum Profit), 5783-2023

The proposed bill amends the Control of Prices of Commodities and Services Law. Currently, the Minister of Economy may set a maximum price for a product or service by order, and may also set the rate of commercial discounts that may be granted. The proposed change stipulates that if a maximum price is set for a product, the maximum profit that can be derived from the sale of that product shall also be deemed to be set. This maximum profit will be equal to the difference between the maximum consumer price and the maximum retailer price. The explanatory notes to the legislation state that retailers sometimes do not pass on the commercial discounts they receive from manufacturers to the consumer, thereby failing to contribute to competition. The bill is intended to encourage retailers to pass these discounts on to the consumer, thereby increasing market competition and assisting small and medium-sized manufacturers. The proposed arrangement is also intended to reduce the incentive for retailers to purchase products from large manufacturers at commercial discounts.

Source: הצעת חוק לדיון מוקדם