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Venezuela seizes Christmas toys to distribute to poor | Venezuela seizes Christmas toys to distribute to poor |
(2 days later) | |
Venezuelan authorities have arrested two toy company executives and seized almost four million toys, which they say they will distribute to the poor. | Venezuelan authorities have arrested two toy company executives and seized almost four million toys, which they say they will distribute to the poor. |
Officials accused the company of hoarding toys and hiking prices in the run-up to Christmas. | Officials accused the company of hoarding toys and hiking prices in the run-up to Christmas. |
Last week, the government issued an order to retailers to reduce prices on a range of goods by 30%. | Last week, the government issued an order to retailers to reduce prices on a range of goods by 30%. |
Business owners say the order is a populist political move, and pushing them towards bankruptcy. | Business owners say the order is a populist political move, and pushing them towards bankruptcy. |
Venezuela's consumer protection agency, Sundde, said toy distributor Kreisel had stockpiled the goods and was reselling them at a margin of up to 50,000%. | Venezuela's consumer protection agency, Sundde, said toy distributor Kreisel had stockpiled the goods and was reselling them at a margin of up to 50,000%. |
"Our children are sacred, we will not let you rob them of Christmas," it said in a tweet, along with photos and video of thousands of boxes of toys. | |
In total, 3,821,926 toys were seized from two warehouses, and would be sold at low prices, it said. | In total, 3,821,926 toys were seized from two warehouses, and would be sold at low prices, it said. |
William Contreras, head of Sundde, said Kreisel had claimed the toys were old or discontinued. The agency also posted photos of the two executives being marched from the premises by a squad of heavily armed soldiers. | William Contreras, head of Sundde, said Kreisel had claimed the toys were old or discontinued. The agency also posted photos of the two executives being marched from the premises by a squad of heavily armed soldiers. |
This is not the first time Venezuela has ordered price cuts on retailers, or mobilised armed units to enforce it. | This is not the first time Venezuela has ordered price cuts on retailers, or mobilised armed units to enforce it. |
In late 2013, the country introduced laws allowing the government to fix prices and dictate profit margins. | In late 2013, the country introduced laws allowing the government to fix prices and dictate profit margins. |
The same legislation limited profits to 30% - the amount often discounted in the compulsory "adjustments" enforced by Sundde at hundreds of retailers in the past week. | The same legislation limited profits to 30% - the amount often discounted in the compulsory "adjustments" enforced by Sundde at hundreds of retailers in the past week. |
The same measures have been used to fix the prices of basic products such as flour, meat and bread - but supply is limited in a country where many people go hungry. | The same measures have been used to fix the prices of basic products such as flour, meat and bread - but supply is limited in a country where many people go hungry. |
A jar of Nutella - a luxury item - can cost half the monthly minimum wage. | A jar of Nutella - a luxury item - can cost half the monthly minimum wage. |
The Venezuelan government is becoming increasingly unpopular as the country's economic crisis grows. | The Venezuelan government is becoming increasingly unpopular as the country's economic crisis grows. |
The nation is rich in oil, but international oil prices have fallen in recent years. | The nation is rich in oil, but international oil prices have fallen in recent years. |
The International Monetary Fund estimates that inflation - the rate at which prices go up - will hit 2,000% next year. | The International Monetary Fund estimates that inflation - the rate at which prices go up - will hit 2,000% next year. |
Venezuela is ready to issue new, higher-value notes to deal with the problem - but rising prices are still squeezing many ordinary citizens. | Venezuela is ready to issue new, higher-value notes to deal with the problem - but rising prices are still squeezing many ordinary citizens. |
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