The European Parliament has adopted rules strengthening the enforcement of rules on unfair commercial practices in the supply chain of agri-food products. Changes are intended to increase the protection of farmers and smaller suppliers, especially in cross-border relations. The fresh regulations extend the competences of national authorities and introduce mechanisms for cooperation between associate States.
– Unfair commercial practices in the supply chain of agri-food products happen due to the fact that these operators, these parties on the market, do not have an equivalent position. Always the farmer, the maker is weaker than the 1 who buys it, it is usually a very large company, hence you gotta support the weaker in this unequal marketplace game – emphasizes in an interview with Newseria Waldemar Buda, Euro MP of Law and Justice.
The fresh regulation adopted by the European Parliament complements EU rules on unfair commercial practices (UTPs) and focuses on enforcement in cross-border cases. The regulation obliges national authorities to cooperate, allows for self-initiative action besides without formal complaint from the injured supplier, and introduces mechanisms for the exchange of information between associate States.
The Regulation besides provides for the usage of the Union interior marketplace Information strategy (IMI) which allows national authorities to inform each another about established unfair commercial practices or the hazard of them. The mechanics is intended to guarantee a fast and coordinated consequence by associate States' administrations.
– To date, support for farmers has been national and it works in most cases, and cross-border is besides needed, since the relation where the recipient of agri-food products is simply a abroad company is increasing. There is exports, trade, even more so in the European Union, so specified rules should have been in force long ago. – assesses Waldemar Bud.
The importance of the fresh regulation is mainly linked to cross-border trade relations in which the supplier and recipient operate in different associate States. In specified cases, redress can be hampered by differences in legal systems, administrative procedures and language barriers. The mechanisms for cooperation between national authorities are intended to limit these difficulties and to increase the effectiveness of enforcement.
– The fresh rules supply a chance to support, for example, a Polish farmer abroad in the event of problems with a company located in 1 of the European countries, problems with delivery, questions about payment, transportation or another details. Then specified a farmer has a chance to support the body there, which concerns fair competition or the fight against acts of unfair competition and the exercise of his rights, whether remuneration or settlement. There are different situations, but there will be support, and at least theoretically, the anticipation of not being left behind abroad – explains Euro MP PiS.
EU rules on unfair commercial practices address clearly defined situations between suppliers and recipients of agri-food products. Regulations include cases of late payments, unilateral changes to contract terms, cancellation of orders in the short word or transfer to suppliers costs not straight related to sales. These mechanisms apply in situations considered to be in breach of fair trade rules.
– Rather, we talk about exceptions, about emergency situations, specified problems happen statistically in at most many percent of the situation. The changes tend to clean up the market, effort to make these companies, knowing that they are in danger of greater work than before, behave reasonably with farmers – emphasizes Waldemar Bud.
Data from the European Commission show that more than 4.5 000 UTP infringement investigations were launched in the European Union between 2021 and 2024. Around 1 3rd of the completed proceedings confirmed irregularities and the financial penalties imposed amounted to almost EUR 42 million.
At national level, competition authorities are liable for enforcing the rules on unfair usage of contractual advantages. In Poland, these competences are held by the Office for Competition and Consumer Protection. According to the UOKiK data, 22 proceedings were initiated from July 2017 to the end of 2024 and 21 decisions concerning specified practices were issued. In 9 cases, financial penalties were imposed with a full value of over PLN 1.09 billion.
