Tunisian Organization for Consumer Information Submits Bill to Regulate Franchise Contracts
The Tunisian Organization for Consumer Information (OTIC) has submitted a bill to regulate franchise contracts, also known as contracts of exploitation under appellation of origin. This initiative aims to put an end to monopolies on prices, while strengthening transparency and balance in the market.
Background
In a statement released on Wednesday, August 6, OTIC explained that this bill will enable lower prices and better protect the rights of Tunisian consumers. It provides for the creation of a national instance dedicated to managing these contracts of exploitation. This instance will be responsible for granting authorizations, controlling, and monitoring compliance with Tunisian legislation.
Context
This move comes in a context marked by a surge in prices, observed during the launch of the 2025 summer sales, particularly in the sectors of ready-to-wear, shoes, furniture, and perfumes.
OTIC also draws attention to the growing dominance of foreign franchise brands in the Tunisian market. According to the organization, these brands do not contribute sufficiently to technology transfer or the integration of local labor and products.
Key Issues
- Foreign franchise brands practice higher prices in Tunisia than in their countries of origin, without transparency on margin fixing or the real cost of products.
- The use of brand notoriety is often used to justify high prices.
- Local concessionaires and distributors exercise unilateral control, setting prices according to the principle of tariff freedom and franchise rights, creating a disguised monopoly that hinders competition and disrupts market rules.
- Tunisian products face significant difficulties in accessing the market, due to the predominance of foreign brands in import and exhibition circuits, restrictive conditions for raw material supply, and the dominance of large retail surfaces and commercial windows.
OTIC's Call to Action
OTIC attributes this situation to the absence of a clear national policy in favor of local production, sustainable economic sovereignty, and responsible consumption based on self-sufficiency.
In this context, the organization calls on deputies to support this bill, which will have a direct impact on price reduction, national economic strengthening, and consumer purchasing power protection.
OTIC also invites civil society and national organizations to get involved, support, and contribute to the development of this legal framework, ensuring it is fair and comprehensive.
Key Provisions
The bill aims to correct several imbalances by:
- Imposing clear obligations on foreign franchisees, including technology transfer, professional training, and the integration of at least 60% of local products in contracts.
- Establishing rules for exclusive supply from abroad while promoting the development of partial or total local production.
- Inserting clauses in commercial contracts to prohibit speculation and arbitrary price fixing, while giving control bodies the means to act quickly in case of imbalance or lack of transparency.
