Revised Unfair Trading Practices Act entered into force on 1 September 2021

The transitory period for the contracts that had been concluded between the suppliers and the buyers before the Act on the amendments to the Act on the prohibition of unfair trading practices in the business-to-business food supply chain (Revised UTPs Act) entered into force is six months from its entry into force. In other words, these contracts must be brought into compliance with the Revised UTPs Act until 1 March 2022.

Similarly, the buyers who had not fulfilled the turnover threshold criteria for the application of the former UTPs Act must bring the contracts with their suppliers of food and/or agri products in compliance with the Revised UTPs Act within six months from its entry into force, i.e., until 1 March 2022, if they fulfil the revised turnover criteria that constitute thresholds for their strong bargaining power.

However, in line with the above-mentioned Ordinance, the provisions relating to business transactions between the buyers-retailers and the end users will apply from the 1 December 2021. These are the provisions defining the “final sales price”, “produce that is highly sensitive to production and market variability” and the related unfair trading practices, such as the “sale of produce that is highly sensitive to production and market variability below the final sales price” and the “sale of produce that is highly sensitive to production and market variability in special offers under the sales price that cannot be lower than 34 % of the final sales price for the end user, which, for example includes volume discounts or quantity discounts, without raising the final sales price”.