Act protects supplier against large market parties

All contracts between suppliers and buyers, including existing contracts, must comply with the Unfair Trade Practices Agricultural and Food Supply Chain Act from this Friday (April 15). Farmers, horticulturists, fishermen and many food processors can report unfair trade practices to the Netherlands Authority for Consumers and Markets (ACM). So far, two reports have been made.

This law states which unfair commercial practices between supplier and buyer are prohibited and which practices are permitted if they have been agreed in advance. The aim is to strengthen the negotiating position of suppliers vis-à-vis larger and concentrated market parties. For example, they are less likely to be pressured to accept discounts. New contracts had to comply with the law from 1 November last year. From April 15, old contracts must be adjusted and comply with the new rules.

The law offers food suppliers protection against large buyers, such as traders and supermarkets. Commercial practices prohibited by this law include: late payments (after XNUMX days for perishable products and after XNUMX days for non-perishable products), last-minute cancellations, unilaterally changing appointments, retaliation (such as not cooperating with promotional offers or communication).

2 notifications so far
Food suppliers - farmers, horticulturists, fishermen and other suppliers, such as meat processors, dairies and wholesalers who supply to retail - trade associations, associations or groups of suppliers can report abuses to the ACM† This can also be done anonymously. ACM can also conduct an independent investigation in case of suspicions, but it indicates that it is difficult to search without notifications. Anyone who violates this law can be fined. 

Since the law was introduced on 1 November 2021 for new contracts, there have been two notifications, ACM reports on request. Things to consider, a spokesperson said: "Threatening suppliers with not purchasing products; unilaterally changing contracts; paying for things unrelated to the sale of products; obtaining and using sensitive company information." Now that all old contracts are also covered by the law, there is also a greater chance that more notifications will be made, according to ACM.

Since 1 January, if a supplier wants a solution to the dispute, it can (also) report unfair trade practices to the Unfair Commercial Practices Disputes Committee for the Agricultural and Food Supply Chain† This procedure is separate from that of ACM. The disputes committee makes a binding decision and can award compensation, for example for lost income due to the non-purchase of products.

Linda van Eekeres

Linda van Eekeres is co-writing editor-in-chief. She mainly focuses on macro-economic developments and the influence of politics on the agricultural sector.

l.vaneekeres@boerenbusiness. Nl

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