Legislation on unfair commercial practices has come into effect.
The Competition Council reminded that the provisions of the law on domestic trade, adopted six months ago, came into effect on February 26. In particular, a separate chapter appeared in the law, which regulates the contractual relations between the supplier and the buyer within the supply of agricultural products and foodstuffs. This chapter describes the procedure for establishing contractual relations between the supplier and the buyer on the terms of payment: they can be made in writing and in electronic form or by electronic means agreed upon by the parties in advance. The document establishes the maximum allowable terms of payment for the products which may be provided for in the contract between the supplier and the buyer of agricultural products. Thus, the period of payment for products supplied will not exceed 45 calendar days from the date of receipt of products, except for food products with the final consumption date or the minimum shelf life up to 7 days, or with the shelf life from 8 to 30 days - in these cases the payment period is up to 7 days and, respectively, up to 30 days after receipt of products by buyers. At the same time, the maximum allowable term of payment as an exception will be able to apply to the supply of agricultural products and food for public educational and medical institutions. At the same time, the law lists prohibited unfair commercial practices in the supply of food products and agricultural products (or rather the list of such products, which is to be approved by the government). These include: requesting and granting trade discounts on socially important essential commodities; a condition for the supplier not to sell goods to other traders at a lower price than the supplier sells to other traders; imposing conditions on the trader to maintain a certain retail selling price; unilateral changes in the terms of commercial contracts for agricultural products and foodstuffs; the buyer requiring from the supplier payments not related to the sale of agricultural products and food, or a requirement to compensate additional costs and expenses incurred by the supplier. The Contravention Code provides for penalties for using unfair business practices: a fine for individuals will be from 50 to 100 conventional units and from 200 to 400 conventional units for legal entities. It is possible to complain about such practices to the Competition Council, which is empowered to establish, review, and impose prohibitions and sanctions in this area. At the same time, disputes about unfair commercial practices can also be resolved amicably, before going to the Competition Council, under the Arbitration Act. // 01.03.2023 – InfoMarket
