Contracts must comply with Unfair Commercial Practices Act

The Unfair Commercial Practices Act for the agricultural and food supply chain specifies which unfair commercial practices between supplier and buyer are prohibited. And which practices are allowed if these have been agreed upon in advance. All contracts, old and new, must comply with the law as of 15 April 2022.

The position of farmers, horticulturalists and fishermen has been strengthened by the Act in relation to larger buyers. The law offers food suppliers protection against various unfair practices such as late payment and last-minute cancellation of orders. Food suppliers usually have to deal with large buyers, such as traders and supermarkets, who can impose purchasing conditions and unilaterally change them. Smaller food suppliers do not always dare to call their customers to account because of the skewed balance of power. This puts them at a disadvantage. The law now prohibits specific trading practices by buyers, including:

• Late payments (after 30 days for perishable products and after 60 days for non-perishable products)
• Last-minute cancellations
• Unilateral modification of agreements
• Retaliation (e.g. not cooperating with promotional offers or communications)

Acm.nl