In the past two years, the Latvian Competition Authority (KP) has received fewer than ten inquiries from food and agricultural suppliers regarding the application of the Unfair Trade Practices Act (NTPAL). There have been no reports from suppliers or industry associations indicating buyer misconduct. This raises the question of whether unfair trade practices truly exist.

The NTPAL aims to prohibit unfair trade practices throughout the agricultural and food supply chain, including the misuse of purchasing power by non-food retailers against suppliers. The regulation outlines clear rules against actions such as payment delays, unilateral contract changes, and imposing unjustified costs on suppliers. NTPAL is a powerful tool that could transform the market environment if suppliers actively report unfair practices to the KP.

Suppliers often feel dependent on specific buyers, leading to fears that addressing conflicts could result in negative consequences, such as unfavorable terms or termination of cooperation. This perception may cause suppliers to remain silent, but their courageous actions are essential for creating a fair and sustainable market environment.

According to the European Parliament and Council Directive (EU) 2019/633 on unfair trade practices in inter-business relationships within the agricultural and food supply chain, suppliers have the right to file complaints about specific unfair practices with the supervising authority or other EU enforcement bodies. The KP, as the supervising authority for NTPAL, has the power to accept and investigate supplier complaints, impose fines, or issue warnings for violations.

Since the implementation of NTPAL, the KP has made significant efforts to promote understanding of the law and provide clarity to market participants. This includes developing guidelines for NTPAL application, offering over 140 consultations, conducting seminars on recognizing and preventing unfair trade practices, and participating in working groups with industry associations and ministry representatives to enhance dialogue and improve enforcement effectiveness.

Despite these efforts, suppliers often hesitate to report issues due to fears of losing business with major buyers. However, NTPAL provides suppliers the right to file complaints without fear of commercial retaliation, as outlined in its provisions. Any commercial retaliation against suppliers who report violations is considered a breach of the law.

Reporting unfair trade practices can yield various benefits for suppliers, including economic security, market balance, strengthened relationships, supply chain efficiency, enhanced public value, and promotion of innovation. Active supplier involvement and courage to report violations not only help address specific issues but also foster a fair competitive environment in the food supply chain.

Unfair trade practices significantly impact the overall market environment, causing economic losses for suppliers and distorting competition. Each report from a supplier can be a crucial step towards justice and accountability. Close cooperation between the KP and suppliers is essential to create a market environment characterized by trust, respect, and fairness.

Therefore, it is vital to educate market participants about their rights and the protection mechanisms offered by the law. The KP regularly conducts annual seminars on recognizing and addressing unfair trade practices and aims to strengthen collaboration among supervisory authorities, industry associations, and suppliers to promote trust and transparency.