Supermarkets are selling cigarettes and newspapers on Sundays despite an agreement not to, shopkeepers federation Povek alleged on Wednesday.
In a letter to the Labour Minister, the organisation's Limassol chapter said: "This letter is a cry of panic and desperation as we now see the businesses of our members closing one after the other.
"By the time the issue is regulated we believe no business of any of our members will survive...perhaps this is the plan of supermarkets," Povek added.
The federation appealed to the Labour Minister to regulate this "inequality against our members," immediately as it will be the only way for them to survive.
Andreas Hadjiadamou, general secretary of the Cyprus Supermarkets Association did not want to comment on the matter.
According to a gentlemen's agreement between the retail trade associations, kiosks and bakeries, supermarkets agreed not sell tobacco products, newspapers and bread on Sundays. "But the agreement has not been implemented since the start of the year and we are at the stage of negotiations to see whether it can be implemented again," a Labour Ministry source told The Cyprus Daily.