Provision Banning Sale of Shopping Bags with Advertisements Stays

22 December 2005

The Constitutional Court of the Republic of Croatia dismissed the initiative for ruling on constitutionality of the provision of the Law on Customer Protection which bans the retailers from charging a price for shopping bags carrying logos and brand names, since such bags shall be considered advertising material. The initiative was submitted by Kaufland Croatia chain or retail stores.

Shopping bags may carry a logo, but at no charge for consumers.

The Law on Consumer Protection was adopted in 2003. From the very beginning of its implementation, it was this provision that attracted the greatest attention of the public and protests by the retail industry. The sale of bags with logos and brand names was, until then, a well-established practice in Croatia.

Kaufland stated in its initiative that the company has invested assets to produce its own shopping bags and packaging materials, therefore, it has every right to charge for their use. They demanded from the Constitutional Court to annul the said provision which, claims the initiative, violates the Constitutional right to freedom of entrepreneurship.

The Constitutions Court ruled that the assets and funds invested in production of such a packaging should be considered advertising investments, therefore, the producer shall bear all costs.

The disputed provision has the function to protect the customers from transfer of advertising costs from the retailer to the consumers. Furthermore, stated the Court, it is not in violation of the Constitution, having in mind that the retailer can charge for its packaging if it didn�t held its logo or brand name.