This time our tour of the EU focuses on unfair trade practices (UTPs), in the food supply chain, such as late payments or sales below production costs.
Recent protests across Europe by farmers have put the issue back on the political agenda. In 2019, the EU adopted a law against these trade practices. The law is a directive, meaning when member states have transposed it into national law, they often apply stricter rules than the EU.
SPAIN
A pioneer in food chain legislation. The Spanish food chain law dates back to 2013. The law was reformed in 2021 to improve commercial relations between the different stakeholders beyond the minimum protection provided by EU legislation.
The current law prohibits the destruction of value in the food chain and the sale of products below the cost of production. Production costs are also the basis for negotiating written contracts.
The law includes an obligation to formalise the contract in writing
in all commercial transactions over €1000. Concerning commercial
advertising, the law prohibits misleading agreements on the price and
image of products, as well as transactions that damage the perception of
the quality or value of agricultural and food products. (...)
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