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Estonia · Law · SE

377

Act on Prevention of Unfair Trade Practices in the Agricultural Product and Food Supply Chain

avaldatud riigiteatajasEstonia· Riigikogu· ET

Introduced

19 April 2021

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AVALDATUD_RIIGITEATAJAS

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Source updated

14 September 2021

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Summary

The draft stipulates as unfair trade practices transactions and actions related to payment terms, deliveries and terms of sale, which are prohibited between the buyer and the seller in the supply chain of agricultural products and food. 16 unfair trade practices are listed, nine of which are prohibited in any case and always. For example, the buyer may not unilaterally change the terms of the sales contract, cancel orders with such short notice that it cannot be reasonably assumed that the seller finds another distribution or use option for the product, threatens the seller with commercial pressure measures, etc. The remaining seven unfair trade practices are prohibited unless they have been clearly and unambiguously agreed in advance. For example, if it is not agreed in writing in the supply contract to cover the costs of the agricultural product and food discount, then if the buyer demands to cover such costs, it is considered an unfair trade practice. These transactions do not create legal consequences and are void from the beginning. Supervision of trade practices will be carried out by the Competition Authority, where a structural unit with six positions will be created for this purpose. The Competition Authority must also start publishing the corresponding annual report and submit an overview of the application of the law's requirements and ensuring their fulfillment to the European Commission by March 15 of each year. Provision is also made for violation of the prohibition of unfair trade practices responsibility. The application of up to 300 fine units or arrest is prescribed for a natural person and a fine of up to 400,000 euros for a legal person. The purpose of the bill is to protect sellers of agricultural products and food from unfair trade practices of buyers. The bill takes over the directive of the European Parliament and the Council, which deals with unfair trade practices in relations between companies in the supply chain of agricultural products and foodstuffs.

Machine translation from Estonian. The official text remains authoritative.

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