The Knesset Economic Affairs Committee headed by MK (Likud) Carmel Shama HaCohen rejected a bill authored by MK (Labor) Amir Peretz seeking to amend state consumer protection laws to permit setting a price of an item nationwide, taking the price-setting option out of the hands of supermarkets and other retailers.

Peretz feels that supermarket chains often sell the same items at different prices and he feels regulating the price nationwide would be a positive step for consumers since generally speaking; one living in a suburban area usually pays more than one shopping in an urban area. Peretz points out that ironically, people living in outlying area usually earn less yet they are compelled to pay higher prices.

Peretz feels that competition will not solve all the problems and it will not result in fair pricing and he remains of the opinion that at times, the government is compelled to act towards protecting consumers.

There was discussion surrounding procedural errors regarding the bill and the handling by the ministerial committee.

Rami Levi, who heads a major supermarket chain in Israel supports the move, but rejects Peretz’s claim that in the outlying areas foods are more costly. He insists major firms like Osem sell their goods to stores at the same price on the wholesale level. He feels the higher prices in outlying areas are the result of higher overhead and operation expenses.

Peretz agreed to withdraw the bill in the hope of reaching a more acceptable wording to permit reintroducing it following the Knesset summer recess.

(YWN – Israel Desk, Jerusalem)