The Greek Development Ministry has imposed fines on the local subsidiaries of two major U.S. firms, Johnson & Johnson (NYSE:JNJ) Hellas and Colgate-Palmolive (NYSE:CL) Hellas. The companies were penalized for violating a profit cap law that limits gross profits per unit to pre-December 31, 2021 levels. This law was enacted in July with the aim of controlling high prices, a major concern that Development Minister Costas Skrekas has committed to address through continuous market surveillance.
The action taken involves substantial fines amounting to a combined total of €1.67 million ($1.81 million), with Johnson & Johnson Hellas facing a €1 million penalty and Colgate-Palmolive Hellas being fined €672,000. These measures follow earlier penalties levied on other multinational corporations, including Procter & Gamble (NYSE:PG) and Unilever (LON:ULVR) on Tuesday, November 2, as the Ministry under the leadership of Minister Costas Skrekas intensifies efforts to enforce market regulations.
This regulatory crackdown comes at a time when Greeks are increasingly cutting back on purchases of basic goods due to escalating prices, which have also impacted housing costs. The inflation rate as of October stands at 3.4%, down from 9.1% a year earlier. The center-right government, currently in its second term after a June election victory, has been closely monitoring the market to ensure compliance with the profit cap legislation, which is intended to remain in effect until the end of 2023.
While the specific details of the violations by Johnson & Johnson Hellas and Colgate-Palmolive Hellas have not been disclosed by the Ministry, these fines underscore the government's commitment to protecting consumers during this economically challenging period.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.