To promote fair cooperation between agricultural and food product suppliers and retailers, on Thursday, 23 July, the Saeima adopted in the final reading amendments to the Prohibition of Unfair Trading Practices Law. The amendments aim to limit the possibility of strongest market participants to exploit their superior bargaining position.

The amendments were drafted by the Saeima Economic, Agricultural, Environmental and Regional Policy Committee and aim to establish clear and fair rules for both parties, while ensuring special protection for local producers in situations where they have limited ability to negotiate the terms of cooperation.

The amendments clarify the prohibition on unilateral changes to contractual terms. In particular, retailers will no longer be permitted to remove suppliers’ products from their assortment without prior written notice. Suppliers must be informed of such changes at least 30 days in advance, except if the products supplied fail to comply with the terms of the contract.

The amendments also introduce a clear definition of agricultural and food product supply forecast. This is intended to help prevent situations where suppliers are compelled to produce goods without an issued order. The amendments also prohibit unilateral imposition of sanctions and specify circumstances where sanctions may not be applied, for instance, when deviations from forecast supply volumes are insignificant.

The payment procedure is also amended. Payments for regular deliveries of fresh vegetables and berries will now have to be made within 20 days, removing the risk of suppliers being compelled to agree to longer payment terms.

The amendments intend to restrict unfair trading practices while maintaining flexible cooperation between suppliers and retailers. The responsible Saeima committee noted that the amendments form part of a broader set of measures aimed at promoting fair competition and transparent pricing in the retail food sector.

Saeima Press Service