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.

Despite the fact that the provisions under Article 2 paragraph 1 items 17 and 18 of the UTPs Act that define 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” (Article 11 paragraph 1 item 26 of the UTPs Act) 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 net quantity discounts, without raising the final sales price (Article 11 paragraph 1 item 27 of the UTPs Act), essentially relate to the retail business transactions between the buyers-retailers and the end users, it is clear that the calculation of the final sales price as well as the calculation of the maximum discount that can be applicable to produce that is highly sensitive to production and market variability is directly related to the implementation of the provisions under the agreement between the supplier and the buyer, that, naturally, must be drawn in compliance with the UTPs Act, in other words, comply with the Revised UTPs Act by 1 March 2022 at the latest.

In that sense, regardless of the date of entry into force of the Ordinance on agricultural and food products, perishable agricultural and food products and produce that is highly sensitive to production and market variability OG 93/21, that particularly lists the scope of agricultural and food products that are the subject of business transactions between the supplier and the buyer under the UTPs Act, the provisions of Article 2 paragraph 1 items 17 and 18 and Article 11 paragraph 1 items 26 and 27 of the UTPs Act, are also applicable as of 1 March 2022. It must also be noted, that the Ordinance on the amendments to the Ordinance on agricultural and food products, perishable agricultural and food products and produce that is highly sensitive to production and market variability is in the pipeline and will include the list of produce that is highly sensitive to production and market variability. It also enters into force on 1 March 2022.

The Revised UTPs Act in the Croatian language is available here

The Ordinance on agricultural and food products, perishable agricultural and food products and produce that is highly sensitive to production and market variability in the Croatian language is available  here