The European Commission is seeking feedback from the public on unfair trading practices (UTPs) in the agriculture and food supply chain.
On April 17, 2019, the European Parliament and the council adopted a directive on UTPs in business-to-business relationships in the agricultural and food supply chain.
To assess the effectiveness of measures taken by member states in the context of the directive, the commission will carry out annual surveys.
Unfair trading practices
UTPs in business-to-business relationships deviate from good commercial conduct and are contrary to good faith and fair dealing.
The food supply chain is vulnerable to UTPs due to stark imbalances between small and large operators.
Survey
The survey by the Joint Research Centre and the Directorate-General for Agriculture and Rural Development of the European Commission is carried out across all member states.
It targets suppliers covered by the directive at the different stages of the agricultural and food supply.
To improve farmers’ and small and medium sized businesses’ position in the food supply chain, the EU has adopted legislation that bans certain UTPs.
These include (but are not limited to):
- Late payments for perishable food products;
- Last-minute order cancellations;
- Unilateral changes to contracts;
- Refusal to enter into a written contract;
- Returning unsold or wasted products;
- Payment for buyer’s marketing.
Each EU country has to designate a competent authority to enforce these rules and these authorities must have the power to both launch investigations and fine operators who break the rules.
The directive was adopted in April 2019. EU countries now have two years to transfer the directive into their national laws.