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Legal consequences of infringements
The BLE may issue such orders as are necessary to eliminate violations of the prohibition of unfair trading practices and to prevent future violations. The BLE may also impose reimbursement orders or fines.
Large commercial and government buyers of agricultural, fishery and food products who use unlawful contractual terms and conditions in dealings with suppliers smaller in terms of turnover, or who behave unfairly – irrespective of what has been agreed in the contract – for example by
- failing to make payments owed (e.g. purchase prices or disposal costs) or failing to make them on time (without having a right to refuse performance),
- demanding services (storage costs, payments or price reductions) to which they are not entitled in the absence of a valid agreement,
- refusing to confirm verbally concluded delivery agreements in written form,
- obtaining, using or disclosing any business secrets without the consent of the supplier,
- threatening suppliers who exercise their contractual / legal rights with retaliation, violate a legal prohibition that is subject to a fine.
The BLE may pick up on such violations following complaints from market operators, ex officio, or on the basis of requests for administrative assistance from implementing authorities of other EU Member States and may issue the orders necessary to remedy the violations and prevent future violations.
The BLE can also order that the buyer must reimburse the benefits that he gained from the illegal behaviour to the affected suppliers.
In addition, the BLE can sanction violations with fines of up to 750,000 euros.
The BLE publishes its decisions and the names of the buyer concerned on its website for a maximum of three months, unless the infringement is minor.
Contracts containing unfair trading practices may be partially invalid. Large commercial and government buyers of agricultural, fishery and food products cannot then invoke such contractual clauses against suppliers smaller in terms of turnover. The validity of contracts is decided by the civil courts.
