- How are unfair trading practices in the agricultural and food chain regulated in this jurisdiction? When the applicable regulations were introduced and when they were last amended?
- Which entities are protected and under what conditions (e.g. suppliers, buyers, both suppliers and buyers, subject to turnover thresholds etc.)?
- How are unfair trading practices in the agricultural and food chain defined in this jurisdiction? For instance, is there a general clause prohibiting unfair trading practices or is there a list of black and/or grey practices?
- Please describe the enforcement mechanism for compliance with regard to the regulations indicated in Q1 above. In particular, please indicate the competent authority and legal consequences for non-compliance.
- Is the local regulator active in enforcement? If yes, please provide information on a couple of interesting/significant cases.
- Please indicate the necessary amendments that will have to be implemented to the regulations applicable in your jurisdiction in order to comply with provisions of the Directive.
- Do currently applicable regulations in your jurisdiction impose more restrictive obligations on buyers or suppliers than those envisaged in the Directive? Please indicate those restrictions.
1. How are unfair trading practices in the agricultural and food chain regulated in this jurisdiction? When the applicable regulations were introduced and when they were last amended?
Unfair trading practices in the agricultural and food chain are regulated by Act No. 91/2019 Coll. on Unfair Conditions in Food Trade, as amended (the “Act”), which was adopted on 28 March 2019 and has been in force since 1 May 2019. The latest amendment to the Act has been effective since 15 June 2021 finalising the implementation of the Directive into the Slovak Law.
2. Which entities are protected and under what conditions (e.g. suppliers, buyers, both suppliers and buyers, subject to turnover thresholds etc.)?
The Act protects both suppliers and buyers. The Act is generally stricter than the Directive and it does not differentiate suppliers and buyers based on turnover thresholds. It applies to all buyers and suppliers pursuant to the option of Member States to adopt stricter rules envisaged by Article 9 of the Directive.
3. How are unfair trading practices in the agricultural and food chain defined in this jurisdiction? For instance, is there a general clause prohibiting unfair trading practices or is there a list of black and/or grey practices?
The Act contains a general ban on unfair trading practices, which stipulate that it is prohibited to require, agree or enforce the unfair trading practice between parties in a commercial relationship (i.e. supplier and buyer). The Act further contains an extensive (but not exhaustive) list of specific unfair trading practices. No grey practices are recognised.
4. Please describe the enforcement mechanism for compliance with regard to the regulations indicated in Q1 above. In particular, please indicate the competent authority and legal consequences for non-compliance.
Compliance with the provisions of the Act is being supervised by Ministry of Agriculture and Rural Development of the Slovak Republic (the “Ministry”). The Ministry is, e.g. entitled to perform inspections and to impose fine of up to EUR 100,000 if the inspected subject obstructs the performance of the inspection. Further, the Ministry is entitled to impose substantial fines if the inspection proves that an unfair trading practice has been required, agreed or enforced by the inspected subject. The amount of the fine depends on the specific unfair trading practice used. The fine may be calculated, e.g. at three times the value of the required monetary performance or non-monetary performance), however if such calculation is not possible, it may amount to EUR 500,000. In the event of a failure to pay the purchase price within the due date, the fine may be to 20% of the purchase price.
5. Is the local regulator active in enforcement? If yes, please provide information on a couple of interesting/significant cases.
According to the Act, the Ministry is obliged to publish information on the number of performed inspections. The latest available information is that until 31 January 2021, the Ministry initiated 25 inspections and ended 16 inspections. No further information is publicly available.
No information on any recent cases has been published.
6. Please indicate the necessary amendments that will have to be implemented to the regulations applicable in your jurisdiction in order to comply with provisions of the Directive.
The Directive has been fully implemented into Slovak law by the latest amendment to the Act. Therefore, no further amendments are necessary.
7. Do currently applicable regulations in your jurisdiction impose more restrictive obligations on buyers or suppliers than those envisaged in the Directive? Please indicate those restrictions.
Yes, generally the Act is stricter than the Directive as the Slovak market is certainly affected by unfair market practices. For example, as already mentioned the Act applies to any buyer or supplier regardless of turnover threshold. Slovakia also has a broader and stricter list of unfair trading practices, e.g. conduct listed in the Article 3 (2) of the Directive is completely prohibited in Slovakia. The Act considers unflavoured mineral beverages as agricultural and food products. Under the Act, there is no difference between perishable and other agricultural and food products regarding the due date for the payment of the delivery price, which is 30 days from the delivery date.
