Since the beginning of the 21st century, there has been a remarkable increase in the number of shopping malls, department stores and chain stores in the retail trade sector in Turkey. Although this has significantly contributed to the economy, a number of economic, social and environmental difficulties arose, such as delays in payments, unfair competition and inability in branding. Merchants, craftsmen and small-scale enterprises have suffered loss of market shares as a result of recent developments. Turkey aims to resolve these issues by standardizing the legal framework of the retail sector with the new 6585 numbered "Law on the Regulation of Retail Trade".

The Ministry of Custom and Trade ("Ministry") shall establish a retail information system ("PERBIS"), a single authority that will govern the activities of retail enterprises. This will allow retail companies to make all relevant applications through the PERBIS system, from the establishment, to making the necessary applications for the activity and the closing of retail enterprises. Thus, the new authority will streamline the business activities of the retail sector as the PERBIS portal will issue all licenses for applications made through the PERBIS system without having to make separate applications to several authorities.

The Law also sets principles, rules and administrative penalties to standardise the retail trade and prevent unfair competition.

  1. Department stores, chain stores, dealers and private enterprises shall not demand bonus or fee from manufacturers and suppliers if it that does not directly affect the demand of the product, such as store opening and credit card entry. Fees for advertising, announcements and shelf allocation that directly affects the demand of shelved products can be requested by those enterprises if the rate of fee is stated in an agreement between the parties.
  2. In principle, payments for transactions shall be done in the period specified in the agreement. However, the payment period for the fast moving consumer goods (FMCG) such as food, beverages, cleaning and personal care products must be paid within 30 days if the manufacturer or supplier is a small business.
  3. Manufacturer's name, title or brand shall be clearly visible on products domestically produced and store branded FMCGs.
  4. By complying with the principles and procedures that are regulated in the applicable laws, discount or promotional sale campaigns can be organized by the retail businesses.
  5. In case of end of line, end of season, export surplus and defective product sales with a discount price or through factory price during a year, the business shall use phrases in the store that show the type of sale. These phrases can be used by the shopping malls, if all the stores in the mall operate in this context.
  6. The Law requires the following criteria for shopping malls. A specific area must be separated for the social and cultural activities and common areas must be created such as medical emergency unit, place of worship, baby care rooms and children's playground in the shopping malls. Some areas must be allocated to merchants and craftsmen and a shelf area must be separated for the domestic manufacturers where the FMCGs are sold. Shopping malls must also comply with the working hours that determined by the governor.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.