BNB publishes the Law on the Introduction of the Euro for public discussion. How will we change leva to euro and what to watch out for. Garbiela Rumenova, founder of the platform “We, the users”, spoke to FAKTI.
- Ms. Rumenova, how will consumer rights be protected after we adopt the euro?
- In order to protect the economic interests of consumers, there will be a period of double indication of the prices of goods and services - in leva and in euros. It will begin one month after the entry into force of the Decision on the adoption of the single European currency in Bulgaria and will continue for 12 months after its introduction.
Prices in BGN and EUR will be placed in close proximity, written clearly and legibly, unambiguously and easily understood.
They should be of the same font size and in a way that does not mislead users. Currency conversion will be done by calculating according to the exchange rate - 1.95583, and rounding - will be used up to the second number, when the third number is 5 or above 5, the second number is increased by one unit.
- This should be done by the traders, and how will we make them?
- The imputation of this obligation to traders, as well as the explicitly stated rules for currency conversion and rounding, will enable people to track whether the payment price in euros is correctly calculated, to protect their rights and to refer the responsible institutions in case of violations. We have to get used to calculating and calculating the price with a calculator. We, as users, are the best controlling authorities.
- What are the sanctions…
- The sanctions provided for in the Law on the Euro reach up to BGN 5,000, and for unfair practices under the Law on Consumer Protection they are up to BGN 70,000. The provisions of the Law on the Euro aim to protect consumers in this transitional period, but people must be vigilant, as it is possible that unscrupulous traders will try to use the situation to apply unfair practices. For example, when indicating prices in discount campaigns. Consumer legislation in these cases currently obliges traders to indicate the old and new price in BGN,
During the period of double marking of prices, merchants will be obliged to mark only the final prices in BGN and EUR.
Thus, users may find it difficult to track the correctness and amount of the discount. There is a similar risk with the change, which will affect the cases in which traders are now obliged to indicate the price in BGN per unit of measure and the selling price for the quantity in the consumer package or cut. Traders will now be required to indicate the price in euros, but only the final price.
- And what will happen with bank accounts? Will the banks automatically reverse the money?
- From the date of the introduction of the euro, all leva accounts in banks will be converted into euros in accordance with the rules for currency conversion and rounding,
no fees and commissions for users
and while preserving the terms of the relevant contracts valid before the conversion. People will be able to exchange levs into euros at the BNB without any restrictions, while there will be specific rules for credit institutions. When withdrawing cash, only euro banknotes will be distributed. For amounts over BGN 30,000 per transaction, the banks will exchange the money to the customer, who submitted the request, free of charge after a prior request of 3 working days.
- How are things with salaries and pensions, because they will also be revalued?
- There should be no losses for the customer, it will happen automatically. If unfair practices are applied, goods in the store may become more expensive after the introduction of the euro. The draft law does not oblige a trader to indicate the old price before a reduction in euros, as it now obliges him - to indicate the old and new price during promotions in BGN. If traders are loyal, however, an increase in price should not occur.