Organic Law of Fair Prices and price fixation in hardware stores of the Campo Elías municipality, Mérida State, Venezuela Ley Orgánica de Precios Justos y la fijación de precios en las ferreterías del municipio Campo Elías, Estado Mérida, Venezuela

Abstract

In the framework of the current Organic Law of Fair Prices and with the aim of evaluating the effect of price fixation on the profitability of hardware stores
of the Campo Elías municipality in the Mérida State (Venezuela), an analytical nonexperimental study was designed ―based on a census― in order to study the total number of hardware stores active at the time data was collected. With a response rate of 40 %, it was found that the concepts considered as the cost of product sold when fixing prices are those costs as per invoice of the purchased merchandise, followed by taxes non-recoverable or non-transferable to the consumer, and transport, freight or movement costs, omitting import duties and import expenses (customs). More than 50 % of the prices of offered items are not fixed, marked or labeled by the supplier, which represents a legal breach in labeling selling prices for the public. This is made more serious with the risk of price removal by members of the commercialization
chain. Finally, more fiscal activities by regulatory entities are recommended.