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Act on unfair use of contractual advantage in Poland to enter into force within six months

Staff Writer |
The act on counteracting the unfair use of contractual advantage in the trade in agricultural and food products has been published in the Journal of Laws. Its provisions shall enter into force on July 12, 2017.

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The act on counteracting the unfair use of contractual advantage in the trade in agricultural and food products has been prepared by the Ministry of Agriculture and Rural Development.

The primary objective of the new law is to effectively resolve conflicts between the suppliers and the recipients of agricultural and food products.

Contractual advantage occurs in cases where there is a significant disparity in economic potential between the two parties and where the weaker of the these parties lacks the sufficient capacity for selling or purchasing agricultural or food products from other undertakings.

Any undertaking which has a reasonable suspicion that it is being subjected to any practices which involve the unfair use of contractual advantage may submit a complaint to the Office of Competition and Consumer Protection.

The Office of Competition and Consumer Protection may only intervene where the total value of the turnover between the supplier and the recipient exceeded the amount of PLN 50 thousand during any of the two years preceding the year in which the proceedings are initiated and where the turnover of the supplier or recipient which applies the practices in question exceeded PLN 100 million during the year preceding the year in which the proceedings are initiated.

The proceedings shall only be instituted by the Office of Competition and Consumer Protection in justified circumstances and shall be completed within the period of 5 months.

The maximum amount of financial penalty for the abuse of contractual advantage shall amount to 3% of the turnover of the given undertaking achieved in the year preceding the year in which the penalty is imposed.


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