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LRRTArt. 11/1 necessitates that 5% of the sale space must be allo-

cated to social and cultural activities. According to the second sub-

paragraph of the same provision, communal areas, such as emergency

medical intervention units, prayer rooms, baby changing units, and

playgrounds must be provided. In accordance with Provisional Article

1/7 of the Law, businesses that obtained the necessary permits prior to

the effective date of the Law must establish these stated communal

areas within one year starting from the effective date of the Law. It has

been envisaged that in the event of non-compliance, or upon a breach

of the first and second subparagraphs, administrative fines between

20,000 TL and 50,000 TL that corresponds to each square meter that

has not been duly allocated, will be, respectively, imposed.

Another innovation regarding shopping malls is that at least 5% of

the space of sale must be allocated to tradesmen and craftsmen, and at

least 3% of the sale space must be allocated to persons who conduct

rare businesses. It is stipulated that the stated spaces must be rented to

those persons provided for, above. According to subparagraphs 8 and

9 of Provisional Article 1 of the Law, upon a vacancy of sale spaces,

these spaces must be rented to tradesmen, craftsmen, and to persons

who conduct rare businesses until the stipulated percentage is reached.

According to LRRTArt. 18/e, in the event of a breach of the stated pro-

visions, administrative fines corresponding to the current market value

of each square meter that has not been duly allocated, will be imposed.

Additionally, it is stipulated that large stores or chain stores in which

fast-moving consumer goods are being sold must allocate a certain

amount of shelves for local products. According to LRRT Art. 18/f, an

administrative fine of 20,000 TL for each store or branch of the busi-

ness that is in breach will be imposed upon the non-conformity to this

provision.

Conclusion

The Law on Regulation of Retail Trade constitutes legal grounds

for retail businesses, and in particular, for shopping malls and outlet

stores. The Law sets forth provisions and obligations on both the pro-

tection of consumers, and on unfair competition. In accordance with

Provisional Article 1 of the Law, certain regulations will be promul-

gated within nine months, by the Ministry of Customs and Trade.

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NEWSLETTER 2015