The implementation of the new law on the Prohibition of Unfair Trade Practices marks a significant milestone for trade regulation in the Republic of North Macedonia. Aligned with Directive (EU) 2019/633 of the European Parliament and the Council, this legislation aims to foster fairer trade practices, particularly within the agriculture and food supply chain.
Primarily, the law targets the protection of consumers by regulating final prices and curbing excessive fees imposed by major retail chains on suppliers, costs that inevitably trickle down to consumers.
Who is Covered and What Does it Entail?
The scope of the Law on the Prohibition of Unfair Trade Practices extends across the entire supply chain, encompassing manufacturers, buyers, processors, wholesalers, and retailers engaged in contractual relationships. Additionally, it applies to public authorities acting as buyers within the territory of North Macedonia, irrespective of their legal status.
Key Provisions:
- Written Agreements: Mandates the execution of written agreements between suppliers and buyers for the supply of agricultural and food products before delivery. These agreements must outline crucial details such as product pricing, quality specifications, delivery terms, payment deadlines, and contract duration.
- Payment Deadlines: Introduces strict deadlines for payment of delivered goods, ensuring prompt remuneration. Perishable products must be paid for within 30 days, while non-perishable goods a 60-day payment window.
- Prohibited Practices: Enumerates a range of unfair trade practices in buyer-supplier relationships, including:
- Abrupt cancellation of orders for perishable goods.
- Unilateral modification of contract terms unrelated to product sales.
- Demanding payments for product damage or loss.
- Refusal to confirm contractual terms requested by the supplier.
- Unlawful acquisition, use, or disclosure of trade secrets.
- Unjustified compensation demands for consumer complaints.
- Imposing obligations on suppliers regarding product sales and distribution.
- Fictitious services, stipulated contracts, and marketing expenses unfairly burdened on suppliers.
Fair Trade Practices and Exceptions:
Certain fees are permitted under specific circumstances, including charges for shelf placement, product advertising, marketing, and personnel hiring for store setup. However, these fees must be reasonable and directly related to service provision.
Enforcement and Oversight:
The Commission for the Protection of Competition assumes responsibility for overseeing compliance with the law. It has the authority to initiate misdemeanor proceedings against violators either independently or upon request by affected parties. Misdemeanor procedures must conclude within three months of initiation.
For Further Inquiries:
Should you have any queries regarding compliance with the new law or procedures before the Commission for the Protection of Competition, additional information can be obtained from our law office.
Ivica Jevtic
