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Continuous Discount Sales
LRRT Art. 10 has introduced the definition of outlet stores for the
first time under the term of “continuous discount sales.”According to the
definition, continuous discount sales concern end of the line products,
end of season products, export surplus products, faulty products, and
similar products, by retail businesses, at a discounted price, or at ex-fac-
tory cost, throughout the year. Currently, some businesses tend to mis-
guide consumers and create unfair competition by making sales through
the use of “outlet” terminology, even though discounted products do not
constitute a high percentage of the products being sold in their stores. In
order to avoid such practices, certain thresholds and obligations are stip-
ulated under this provision. In order for retail businesses that are
engaged in permanent discount sales to use such terminology (outlet,
outlet store, etc.) at least 70% of their products must be sold pursuant to
the definition of the continuous discount sale. In order for a shopping
mall to use the above-mentioned terminology, all of the stores therein
must qualify as businesses that conduct continuous discount sales.
On the other hand, retail businesses that are engaged in permanent
discount sales must place signs that are easily read, and seen, on the
front of the business, and inside of their stores, stating that discount
sales are being offered in their stores.
According to Provisional Article 1/6 of the Law, retail businesses
that conduct continuous discount sales must comply with Art. 10 with-
in two years from the effective date of the Law. In the event of non-
compliance or a breach of Art. 10, an administrative fine of 5,000 TL,
pursuant to LRRT Art. 18/c will be imposed.
Obligations of the Shopping Malls
Shopping malls are defined under the article titled “Definitions”;
hence shopping malls, “Malls,” as they are commonly referred to,
obtained legal status. According to the definition, shopping malls are
“
businesses having an entirety either within a building or any other
area, with a central management and communal areas, as well as other
qualities determined by the regulation, that contain large stores and/or
business complexes where nourishment, clothing, entertainment, recre-
ation, cultural and other needs are addressed.
”
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