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
The Law also sets principles, rules and administrative penalties
to standardise the retail trade and prevent unfair competition.
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.
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.
Manufacturer's name, title or
brand shall be clearly visible on products domestically produced
and store branded FMCGs.
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
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.
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.
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