EU: The unfair trading practices directive has been adopted

Member countries have two years time to implement the directive on unfair trading practices in agriculture that has officially been signed by the EU President. “We have fulfilled our promise. After ten years – said Paolo De Castro, Vicepresident of EU Parliament’s Committee on Agriculture and Rural development – we managed to ban, in a very short time, unfair trading practices in food-supply so to ensure fair treatment to European farmers, producers and consumers”.

Practices to be sanctioned are:

  • late payments for perishable food products
  • unilateral changes to contracts
  • last minute order cancellations
  • payments for deterioration of products sold and delivered
  • payments for non-sale services
  • refusal to enter into a written contract
  • misuse of confidential information
  • threat of commercial retaliation
  • returning unsold or wasted products
  • payment for buyer’s marketing

As Vicepresident De Castro underlined, the number of practices recognized as unfair has doubled over one year, with the possibility of being further increased at national level, so to protect almost totally EU farmers, cooperatives and food industries, including feedstuff production and flower growing.