Slovak parliament approves law against unfair trade conditions

2010-03-09

Suppliers of foodstuffs will be protected from potentially disadvantageous relationships with retailers, according to a new bill aimed at preventing unfair trade conditions. The bill was passed by Slovak parliament on 4 March 2010. The law still requires the signature of Slovakia’s president, however, it is expected that this will take place in time for the law to come into effect from May 2010.
The law forbids retailers from imposing fees on foodstuff suppliers for advertising a supplier’s products in the retailers’ promotional flyers. In addition, the law seeks to prevent retailers from selling products at a price that is lower than the price paid to the supplier. Exceptions to this rule include seasonal or damaged products.
The law compels retail chains and suppliers to have changed existing contracts in order to comply with the new regulations by the end of September 2010.
Despite being warmly welcomed by producers in Slovakia, the new legal provisions have been sharply criticised by retailers who claim that the implementation of the law will force them to use more foreign suppliers.