News Retail
Polish supermarket fined for harming farmer
The Polish Consumer Protection Agency has ordered supermarket chain Biedronka fined for abuse of power. Farmers are disadvantaged and have been given a price that is too low for their products. The amount of the fine is €163 million.
While farmers in the Netherlands protest at distribution centers for a fair price, this issue is also an issue in Poland. The Polish Office for Competition and Consumer Protection (UOKiK) recently fined the company Jeronimo Martins Polska there. The company is owned by the large supermarket chain Biedronka. The fine of 723 million zloty – about €163 million – is the largest ever paid out of its kind.
Suppliers fined
According to the government service, the chain has abused its power by paying farmers a lower price for fruit and vegetables. Biedronka also remained vague about the final price it paid for products and was threatened with fines if too high an amount was charged. Suppliers eventually went along with the policy because they feared losing the customer completely, resulting in even more financial damage.
Research was conducted over a period between 2018 and 2020, in which the chain would have realized a financial benefit of €135 million. According to the UOKiK, more than 200 companies have been negatively affected by this act, 80% of which are suppliers of fruit or vegetables. What the supermarket chain is heavily charged with is that the lower purchase prices were not passed on to the customer, but put into their own pocket.
Instant refund
The parent company should start refunding the unfair discounts as soon as possible. The government service is able to issue fines that amount to a maximum of 3% of the total annual turnover.
Niels van der Boom
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