The Armenian National Assembly is discussing a new regulation for dairy product sales that mandates color-coded shelves in retail stores. Deputy Minister of Economy Tatevik Sargsyan presented the legislative initiative, claiming its primary aim is to enhance consumer awareness and protection. However, this proposal merits critical analysis, as it presents several practical and structural challenges.
First and foremost, the proposed regulation requires retailers to reconfigure their store shelving with specific colors—green for natural dairy products and orange for those containing milk fat substitutes. This change could introduce additional costs for retailers, including materials and labor, without clarifying who will bear these expenses: the businesses or the consumers. Consequently, there is a strong likelihood that the financial burden will ultimately fall on consumers, potentially driving up product prices.
Secondly, questions arise regarding the efficacy of this approach. Will consumers, especially those who shop quickly or without much scrutiny, pay attention to the color of the shelves? Product composition is already required on packaging labels, which calls into question whether color-coded shelving is a truly effective or necessary solution.
Moreover, the proposed fines for non-compliance appear disproportionate. The regulation suggests a penalty of 100,000 AMD, which doubles to 200,000 AMD for repeated violations. For small businesses, these fines could represent a significant financial strain, potentially discouraging competition and growth within the retail sector.
From a government perspective, concerns also emerge. While Deputy Minister Sargsyan argues that this measure will protect consumer rights, it is unclear whether this approach is the most efficient mechanism for combating misleading advertising and product labeling. Stricter monitoring of product labeling and enhanced laboratory controls might prove to be more effective and less disruptive alternatives to imposing costly shelving requirements.
Although the initiative aims to foster a transparent and fair dairy market, its practicality and cost-effectiveness remain questionable. Rather than implementing such a burdensome regulation, the government could explore alternative strategies to ensure consumer awareness and market transparency without imposing unnecessary financial pressures on businesses and consumers.
This proposal, while well-intentioned, risks creating more challenges than solutions in its current form.