The Latvian Competition Authority (KP) has created a set of guidelines to assist buyers in determining appropriate payment terms with suppliers for perishable goods, such as fresh fruits, vegetables, and potatoes. This initiative responds to observed inconsistencies in payment terms for these products, which are not required to have a minimum shelf life indicated.

According to the Unfair Trading Practices Act (NTPAL), perishable agricultural and food products are defined as those that become unfit for sale within 30 days of harvesting, preparation, or processing. However, the law does not specify criteria for assessing whether certain products qualify as perishable.

The KP's informative materials include practical criteria to help evaluate whether products are considered perishable. For instance, a product is deemed perishable if it cannot maintain at least one of its original characteristics—appearance, freshness, aroma, or taste—within 30 days of harvesting. Other factors, such as the product's harvesting cycle and storage conditions, are also taken into account.

Additionally, the frequency of ordering and delivery of products plays a significant role in their classification. If the average turnover time for a product at the buyer's location is less than 30 days, or if it is ordered and delivered more frequently than every 30 days, it is likely to be classified as perishable.

The KP urges buyers to adhere to the payment terms established by NTPAL for delivered agricultural and food products. Payments for perishable goods must be made within 30 days of delivery, while non-perishable goods have a 60-day payment window. Retailers of agricultural and food products are particularly encouraged to comply with these terms, especially for frequently delivered items.

For products delivered at least three times a week, the payment term should not exceed 20 days after each delivery, unless a written agreement specifies otherwise, in compliance with NTPAL. The KP also reminds institutions to follow these payment terms, except for those providing healthcare services, while school supply programs are exempt from NTPAL payment terms.