Unfair promotion at the food chain

The Commission, however, strongly believes that this approach could significantly help to reduce or eliminate UTPs and would, therefore, lead to substantial benefits for companies — especially SMEs — suffering because of UTPs. The SCI was developed as a result of the Commission-led High-Level Forum on a Better Functioning Food Supply Chain established in to help develop policy in the food and drink sector and contribute to a better functioning food supply chain.

However, in practice, victims of a UTP often consciously refrain from legal action. There is no cross-sectoral EU legislation covering business to business relationships and directly addressing UTPs although legislation exists in some Member States.

Unfair promotion at the food chain case of proven infringement, the responsible body will be competent to impose a proportionate and dissuasive sanction. As a result, many individual commercial relationships in the food supply chain can be described as imbalanced. The proposals build on an existing voluntary code of best practice in the supply chain, known as the Supply Chain Initiative SCI.

Against this background, the Commission will assess the progress made on the proposed actions by evaluating the actual impact of the Supply Chain Initiative and the enforcement mechanisms set up by Member States.

European Commission to ban unfair trade practices in food supply chain

In case of proven infringement, the responsible body will be competent to impose a proportionate and dissuasive sanction. The European Commission published a Green Paper on UTPs in January to gather stakeholder views on the occurrence of UTPs in the food and non-food supply chain and to identify possible ways to address them.

We act because unfair business conduct undermines the economic viability of operators in the chain.

Unfair trading practices in the food supply chain

Does the suggested way forward imply legislative action? In the middle of the contracting period, the retailer informs the supplier about a promotional anniversary campaign run in all retail outlets during one week.

In this case, measures against UTPs can be significantly strengthened by the possibility for the weaker party to have recourse to an independent enforcement authority or body that is able to protect the confidentiality of the complainant.

By setting minimum standards and reinforcing the enforcement, the proposal should ensure that these operators are able to compete on fair terms, thereby contributing to the overall efficiency of the chain. The initiative is equally about providing strong and effective enforcement.

In conclusion, a voluntary initiative such as the Supply Chain Initiative can, if adhered to by parties with a strong bargaining power, help to address and efficiently resolve many cases of alleged UTPs, but does not appear to be sufficient to address all cases of UTPs.

European Commission to ban unfair trade practices in the food supply chain

A study on the different regulatory frameworks in the 28 Member States has also been commissioned. In addition, the proposal includes effective enforcement provisions: The next step is to turn to the issue of market transparency.

The proposed measures are complementary to measures existing in Member States and the code of conduct of the voluntary Supply Chain Initiative. The focus of the communication is to address the issue of UTPs in the Single Market and reduce the level of regulatory divergence between the 28 Member States.

The following examples illustrate possible UTPs in the food supply chain: Smaller operators in the food supply chain, including farmers, are vulnerable to unfair trading practices employed by partners in the chain. They often lack bargaining power and alternatives to get their products to consumers.

They often lack bargaining power and alternatives to get their products to consumers. An efficient and effective food supply chain is a fair one.

Tackling unfair trading practices in the food supply chain

The initiative is equally about providing strong and effective enforcement. The Commission will set up a coordination mechanism between enforcement authorities to enable the exchange best practices.

The Green Paper consultation elicited responses from a broad range of stakeholder categories. They often lack bargaining power and alternatives to get their products to consumers.

It encourages Member States to make sure they have appropriate and effective measures against UTPs in place, taking into account their national circumstances.

European Commission acts to ban unfair trade practices in the food supply chain

In we set up the Agricultural Markets Task Force AMTF to assess the role of farmers in the wider food supply chain and make recommendations on how it can be strengthened.The European Commission has announced new regulations to ban unfair trade practices which damage farmers in the food supply chain.

Charge suppliers for the promotion or marketing of the products they are selling. The European Commission proposes to ban the more damaging unfair trading practices in the food supply chain to ensure fairer treat­ment for small and medium sized food and farming businesses.

In addition, the proposal includes effective enforcement provisions: sanctions can be imposed by national. European Commission to ban unfair trade practices in the food supply chain The Commission is targeting the most damaging unfair trade practices to grant farmers and small and medium sized.

Unfair trading practices in the food supply chain Authors (in alphabetical order): Jan Fałkowski, Claude Ménard, Richard J. Sexton, Johan Swinnen and Senne. Unfair trading practices in the food supply chain 15 July retailer argues that all suppliers have benefited from the incremental in-store traffic generated by the anniversary promotion.

When the supplier points out that the promotional activity was not referred to in the contract and mentions the possibility of legal action, the. The food supply chain is particularly vulnerable to unfair trading practices due to large differences in bargaining power. This is why the Commission proposed today to ban the more damaging unfair trading practices in the food supply chain to ensure fairer treatment for small and medium sized food and farming businesses.

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Unfair promotion at the food chain
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