Intermarche Required to Refund Suppliers Following UOKiK Decision
The Polish competition authority has mandated SCA PR, the purchasing company for Intermarche, to alter its unfair practices towards food suppliers and refund improperly collected discounts.
07.11.2023 | Polish competition authority
The President of the Polish competition authority, Tomasz Chróstny, has ordered SCA PR, responsible for purchases at Intermarche, to change its practices that negatively impact suppliers of agricultural and food products. The authority found that SCA PR was establishing cooperation terms during the contract period and obtaining discounts without meeting the conditions specified in the agreements.
As a result of the investigation, SCA PR is required to amend its contracts and return improperly collected discounts to its suppliers. The authority's monitoring revealed that large retail chains were potentially abusing their contractual power over suppliers, particularly through retrospective discounts that were not justified by prior agreements.
Chróstny emphasized that suppliers should not be left uncertain about their compensation for several months or have their earnings reduced by unjustified retrospective discounts. The decision mandates SCA PR to refund the collected amounts along with interest for the disputed discounts.
Furthermore, SCA PR will cease entering into agreements that set discount terms retroactively after the start of the cooperation period. This change aims to ensure that suppliers are aware of the financial terms at the beginning of their contracts. The obligation also applies to agreements made for 2023, where suppliers will be required to provide discounts only after reaching specified turnover thresholds.
This decision is part of a broader effort by UOKiK to address unfair practices in supplier-retailer relationships, with previous actions taken against other companies like Jeronimo Martins Polska and Eurocash for similar issues. UOKiK has also published reports highlighting unfair practices in the retail sector and is currently investigating logistics fees charged by Carrefour Polska and Auchan Polska.