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There is a wide-spread consensus that UTPs occur throughout the
food supply chain. Unfair trading practices (UTPs) can be defined
as practices which grossly deviate from good commercial conduct,
are contrary to good faith and fair dealing and are unilaterally
imposed by one trading partner on its counterparty. Some Member
States, such as France, Belgium and the UK, have already adopted
legislation specifically prohibiting such practices (in the food
and/or non-food supply chain). In addition, various self-regulatory
initiatives exist. In April 2019, the European Parliament and the
Council adopted Directive (EU) 2019/633 on unfair trading practices
in business-to-business relationships in the agricultural and food
supply chain. A Commission Proposal of April 2018 (COM(2018) 173
final) was substantially amended. To improve farmers' and small and
medium sized businesses' position in the food supply chain, the
Directive bans certain unfair trading practices including late
payments for perishable food products; last minute order
cancellations; unilateral changes to contracts; refusal to enter
into a written contract; returning unsold or wasted products;
payment for buyer's marketing. Each Member State has to designate a
competent authority to enforce these rules and these authorities
must have the power to both launch investigations and fine
operators who break the rules. The Member States now have two years
to implement the Directive.
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