ECN Brief

Croatia | CCA empowered for enforcement of unfair trading practices provisions in food supply chain

Croatia | CCA empowered for enforcement of unfair trading practices provisions in food supply chain

The Act on prohibition of unfair trading practices in the business-to-business food supply chain (hereinafter: UTPs Act) establishes the rules and effective redress mechanisms to eliminate UTPs being imposed by a trading partner in the food supply chain where a superior bargaining position is abused by the buyer and/or the processor or the re-seller with respect to the supplier.

 The UTPs Act wants to establish, ensure and promote the fair trading practices that would protect the participants in the food supply chain. The addressed actors of the UTPs Act are all the participants in the food supply chain – producers, buyers, processors, wholesalers and retailers. Within the meaning of the UTPs Act it is prohibited to abuse the superior bargaining power, in other words, buyers and/or processors or re-sellers may not impose UTPs provisions on suppliers.

The UTPs Act provides for the transition period until 31 March 2018 for all the retailers, buyers and processors who have to adjust the provisions of the contracts entered into between the buyers and re-sellers and the re-sellers and/or processors and their suppliers that have been concluded before the UTPs Act enters into force, with the UTPs rules. Otherwise, these contracts will become null and void on 1 April 2018.

The Act on the prohibition of unfair trading practices in the business-to-business food supply chain, Official Gazette 117/17, enters into force on 7 December 2017 and empowers the Croatian Competition Agency (CCA) for the enforcement of the provisions concerned.

More information here.

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