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Activity Report 2022 on Unfair Trade Practices
The Federal Agency of Agriculture and Food (Bundesanstalt für Landwirtschaft und Ernährung, BLE), as the enforcement authority for the prohibition of unfair trade practices, conducted a total of six proceedings in 2022. According to the BLE activity report for 2022, the BLE assisted companies within the agricultural and food supply chain in over 50 cases to comply with the requirements of the German Agricultural Organisations and Supply Chain Act (AgrarOLkG).
Of the five newly initiated procedures in 2022, two were based on complaints, while three were initiated ex officio. One procedure from 2021 and three from 2022 were concluded - no violations of UTP prohibitions were found.
In 2022, a special focus of activities was placed on the exchange with companies and associations and on providing support in complying with the UTP prohibitions, given that the one-year transitional period to adapt contracts to the AgrarOLkG ended last June. In more than 50 specific cases, the BLE held talks with companies on the proper application of the law (cooperative regulatory approach).
Mixed response to the AgrarOLkG from practitioners
About 20 months have passed since the AgrarOLkG and the UTP bans came into force. An initial interim assessment shows mixed reactions: On the one hand, suppliers are very positive about the law and report concrete improvements for them. Others are critical, stating that the AgrarOLkG does not offer them any protection against some of their buyers' practices, which they perceive as unfair. Other suppliers expressed their concern that the protection intended for them would practically lead to competitive disadvantages vis-à-vis non-protected competitors and would even endanger established business models and livelihoods.
The BLE will incorporate economic operators’ feedback in the evaluation of the UTP Act, which the legislator has scheduled for June 2023.
An anonymous whistle-blower system
At the end of 2022, the BLE, as the responsible enforcement authority, established an anonymous whistle-blower system to ensure fully anonymous online reporting of unfair trade practices to the BLE.
The website has been expanded to include two explanatory films regarding UTP prohibitions as well as a detailed question-and-answer section to help with the practical application of the law.
Details and further information as well as the complete activity report are available at www.ble.de/utp.
Background
On 09 June 2021, the German Agricultural Organisations and Supply Chain Act (AgrarOLkG) came into force. It implements the EU's UTP Directive, which sets a uniform minimum standard of protection to combat unfair trading practices in the food supply chain. In Germany, the Federal Agency for Agriculture and Food (BLE) is the responsible enforcement authority.
