The new Law regulating retail trade numbered 6585 has come into force on January 29, 2015 and it stipulates various new provisions on simplified opening and operating procedures for retail businesses, conducting retail trade in compliance with sustainable competition conditions, protection of consumers, operations of the businesses dealing with retail trade and relations of such businesses with producers and suppliers. The Law also introduces many new regulations and practices for shopping malls in Turkey. Firstly, the Law sets forth PERBİS (Retail Information System) system, which is an electronic system coordinating all permission applications regarding opening, closing and operations of retail companies. It also functions as a database allowing the exchange of information between the Ministry of Customs and Trade (the “Ministry”) and the relevant institutions and organizations. Upon the establishment of this system, the retailers would not need to apply to different institutions for obtaining various licenses considering their business and operations; and by this way bureaucratic procedures are reduced at a minimum level as all required procedures, including the change of permits, could be conducted through PERBİS. The required transactions with respect to the opening and operations of retail businesses shall be carried out in accordance with the related legislation until the installation of PERBİS.

Business and operation licenses, construction and occupancy permits of the shopping malls could also be obtained through PERBİS system. Metropolitan municipalities are authorized to issue such required licenses for the shopping malls located in metropolises and the opinion of supreme occupational organizations must be obtained while granting construction permits. Secondly, Article 6 of the Law sets forth that retailers shall not be entitled to request any premium or payment which has not any direct effect on product demand from their producers or suppliers on grounds such as new store opening, renovation, turnover deficit, bank and credit card contribution price. Such retailers also shall not be entitled to request any premium or payment for services which have a direct effect on product demand such as advertisement, announcement or shelf reservation; unless the type and the ratio of the said premium are determined in the agreement. In this case; it would be obligatory for the premium or payment request to be limited with the term of the agreement and the product which is subject to such premium or payment request must be offered for sale at the shelf during the term of the agreement. As to the regulation regarding the payment terms under the Law; payments arising from transactions between the producers or suppliers and retail businesses shall be made on the date stipulated under the agreement in principal. The periods for the discount or promotional sales campaigns of the retail businesses are restricted as per Article 9 of the Law. Retail businesses shall not be entitled to hold any discount if the beginning and end periods of such discount are not obvious.

The duration of such sales campaigns shall not exceed 3 (three) months in the event of an opening, transfer, closing of a workplace, and change of address or the subject of activity; while shall not exceed 6 (six) months in case of liquidation in accordance with the Turkish Commercial Code. Additionally, minimum five per thousand of the selling area of the shopping malls must be allocated for social and cultural events. It is also stated in the Law that shared areas; such as prayer room, child-care room, playing field and emergency medical intervention units shall be created within shopping malls by taking into account the requirements of disabled, old persons and children. Besides, at least five percent of the total sale area of the shopping malls must be reserved in order to be rented at market value to small business owners and craftsman. In case there is insufficient demand by craftsman and related trades workers, these areas could also be rented to other demandants. Lastly, working hours of the retail businesses could be determined by the governor upon receiving the opinion of the authorized administration upon the joint proposal of the occupational organizations. The law regulating the weekend holidays shall not applicable to the retail businesses according to Article 25 of the Law. The secondary legislations which are envisaged in the Law shall be implemented within 9 (nine) months by the Ministry.