In the past two years, the Latvian Competition Authority (KP) has received fewer than ten inquiries from food or agricultural product suppliers regarding the application of the Unfair Trade Practices Prohibition Law (NTPAL). Additionally, no reports have been received from suppliers or industry associations indicating unfair trading practices by buyers. The KP encourages suppliers to actively engage and report violations in the food supply chain to promote fair competition.

The NTPAL aims to prohibit unfair trading practices throughout the agricultural and food product supply chain and to prevent retailers from abusing their purchasing power against suppliers. The law serves as a powerful tool that could transform the market environment if suppliers exercise their rights and report unfair practices to the KP.

Dependency on a specific buyer can create concerns for suppliers that any conflict resolution may lead to negative consequences, such as unfavorable terms or even termination of cooperation. The KP acknowledges that fears of losing cooperation or facing other negative repercussions from buyers are understandable, but they should not lead to silence. Supplier courage is essential for creating a fair and sustainable market environment.

According to the European Parliament and Council Directive (EU) 2019/633 on unfair trading practices in business-to-business relationships in the agricultural and food supply chain, suppliers have the right to file complaints about specific unfair trading practices with the supervising authority or other EU enforcement bodies overseeing the agricultural and food supply chain.

The NTPAL provides agricultural and food suppliers the opportunity to file complaints without fear of commercial retaliation or threats. The KP reminds that any commercial retaliation by buyers against suppliers who report violations, such as delisting products, reducing order quantities, or halting specific services, is prohibited and considered unfair trading practice. Furthermore, the law imposes significant liability on buyers who violate any of the unfair trading practices outlined in the NTPAL, thereby affecting suppliers' sense of security.

Sanita Uljane, head of the KP's Unfair Trading Practices Prevention Department, stated, “Unfair trading practices significantly impact the overall market environment, causing economic losses to suppliers and distorting competition. The more actively suppliers engage and bravely report violations, the quicker we can create a competitive environment in the food supply chain that respects the rights and interests of all parties. By reporting violations, each of you helps strengthen market integrity and reduce the likelihood of unfair trading practices. Your courage can be a crucial step towards industry development.”