Santiago.- The Association of Merchants and Industrialists of Santiago (ACIS) and the Association of Wholesalers in Provisions of Santiago (Amaprosan) warned this Tuesday that the growth of the so-called private label brands in large commercial chains would be displacing national products, affecting the sales of local companies and creating a scenario that, if not regulated, could lead to monopolistic practices.
During a meeting with the press, the president of ACIS, Marcos Santana Mena, assured that the business sector does not oppose competition or market evolution, but insisted that this must be developed under clear and equitable rules.
“We believe in the company, in the evolution of the markets, and in free competition, but it must be fair, clear, and regulated competition. If this is not controlled, it could become a monopoly that ends up affecting the country’s companies,” he expressed.
They denounce displacement of national brands
ACIS director Máximo Zapata read a document in which the entity warns that the expansion of private labels not only affects free competition, but also the consumer’s right to choose from a more diverse offer.
According to the organization, this practice would be concentrating the market in the hands of certain commercial actors, progressively displacing legitimate competitors and reducing the presence of national brands in supermarkets, grocery stores, and other establishments.
ACIS argued that allowing this type of commercial scheme “amounts to tolerating a system that limits the consumer’s real options and distorts the functioning of the market.”
They question prices and health controls
Business representatives pointed out that there is a price difference of between 20% and 25% between traditional products and some private label brands, which they claim
has caused a reduction in sales of local companies.
Furthermore, they indicated that the problem is not only commercial, but also regulatory, by assuring that some of those imported products would not always offer clear guarantees regarding compliance with the health and tax regulations required in the Dominican Republic.
“Many times they are products that come from other countries and we don’t know if they comply with all the legal, health and tax requirements demanded by national regulations, while Dominican companies are subject to those controls,” they stated.
They request intervention from ProCompetencia
ACIS demanded immediate intervention from the authorities and called on the National Commission for the Defense of Competition (ProCompetencia) to investigate these practices and adopt the necessary corrective measures.
The entity warned that the lack of a timely response compromises the sustainability of small and medium-sized enterprises, reduces business diversity, and endangers the stability of formal employment.
Amaprosan warns about monopolies
From her side, the president of the Association of Wholesalers in Provisions of Santiago (Amaprosan), Hilda López, rejected what she called decisions that favor monopolies and cited the case of sugar as an example.
“That cannot be allowed. The new customs law imposed an 84% tax on the import of sugar, thereby openly favoring a monopoly, against the principle of free competition enshrined in our Constitution,” he stated.
They warn of impact on grocery stores, SMEs, and employment
Meanwhile, ACIS director Mario Abreu warned that the advance of private labels and other commercial policies which, in his opinion, favor large capitals, is strongly hitting micro, small and medium-sized enterprises, as well as small grocery stores and traditional businesses.
“It is very worrying that large capitals are supported to the detriment of small and medium-sized businesses. That affects employment, the popular economy and can even affect social peace,” he expressed.
They call for preserving trade equity
Finally, ACIS and Amaprosan asked the State to act to prevent the Dominican market from concentrating in few hands.
Both guilds insisted that free competition must be guaranteed with clear rules, effective fiscalization, and equitable conditions so that national brands, small businesses, wholesalers, and local industries can compete on equal terms against the advance of private label brands.
