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AZTN Fines Studenac for Unfair Trading Practices

<p>aztn LOGO</p>
aztn LOGO / Image by: foto Ratko Mavar

The Croatian Competition Agency (AZTN) has fined the retail chain Studenac 132,000 euros for serious violations of the Law on Prohibition of Unfair Trading Practices in the Food Supply Chain (ZNTP), the regulatory agency reported.

AZTN initiated an administrative procedure ex officio against Studenac to determine whether the retailer imposed unfair trading practices on its suppliers of agricultural and food products by exploiting significant negotiating power, as stated in the agency’s announcement on its website.

After conducting the administrative procedure, AZTN found that Studenac exploited significant negotiating power by imposing unfair trading practices under ZNTP on three suppliers by operating based on a written contract that was not drafted in accordance with ZNTP provisions regarding product pricing, as the product price was not agreed upon in writing before delivery.

Additionally, Studenac charged fees for advertising services in its catalog without displaying prices according to the agreed price list of marketing services, nor the discount granted, but calculated the price reduced by the amount of the discount, which was not previously agreed upon with suppliers in writing in a clear and unambiguous manner. Such calculated fees for services to customers, whose realization should depend on the actual and measurable performance of the customer, were neither agreed upon in accordance with ZNTP provisions nor clearly specified on Studenac’s invoices.

It was also determined that Studenac unlawfully returned agricultural and food products due to low turnover, according to an exception that was not previously agreed upon in a clear and unambiguous manner and made payments beyond 30 days for perishable agricultural and food products, or beyond 60 days for agricultural and food products that are not considered perishable.

AZTN believes that the imposed monetary fine achieves the goal of deterring violations of ZNTP, not only concerning Studenac but also regarding other addressees of ZNTP.

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