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AZTN Fines Djelo Company 65,000 Euros for Unfair Trading Practices

The Agency for the Protection of Market Competition (AZTN) has fined the Djelo company from Bilice 65,000 euros for serious violations of the Law on Prohibition of Unfair Trading Practices in the Food Supply Chain (ZNTP), as reported by the regulatory agency on Tuesday.

AZTN determined that Djelo exploited significant negotiating power by imposing unfair trading practices under the ZNTP on its suppliers of agricultural and food products.

It was found that Djelo operated with one supplier based on a contract that was not drawn up in accordance with the provisions of the ZNTP, as it agreed on a payment term for delivered perishable food products contrary to the provisions of the ZNTP, which constitutes an unfair trading practice.

Djelo also operated with two suppliers based on contracts that do not contain a provision on the price of agricultural or food products in a fixed amount. The agreed method of determining or calculating the price does not allow for an unambiguous objective calculation of the price since the price cannot be determined and/or calculated by summing the factors established in the contract. This constitutes an unfair trading practice, and it operated with 67 suppliers based on contracts that do not contain a provision on the delivery deadline, nor was the delivery deadline subsequently agreed upon in writing before delivery.

It was also found that Djelo operated with two suppliers based on contracts that stipulated the buyer’s right, at the supplier’s expense, to refuse acceptance of delivery and return to the supplier goods that were not delivered within a sufficient shelf life, without clearly, measurably, and transparently agreeing on what is considered a sufficient shelf life of the product, thereby failing to agree on all provisions essential for the business relationship.

Additionally, Djelo operated with two suppliers based on contracts that contain a provision obliging the supplier, once a year, when requested by the buyer, to conduct a quality analysis of the product and pay the cost of that analysis, regardless of its outcome, even when such analysis shows that the product meets the agreed quality, and regardless of the regular analyses that the supplier has already conducted, which constitutes an unfair trading practice.

It was also determined that Djelo made payments to nine of its suppliers in terms longer than 30 days for perishable agricultural and food products, or in terms longer than 60 days for agricultural and food products that are not considered perishable.

AZTN has issued a decision determining measures, conditions, and deadlines for eliminating unfair trading practices. It also imposed a monetary fine on Djelo in the amount of 65,000 euros.

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