Contractual advantage

Contractual advantage occurs when there is a significant disparity in economic potential between suppliers and buyers of agricultural and food products. It may be unfair to use it if an action is contrary to good practices and poses a threat to the essential interests of the other parties or infringes upon such interests. 

The task of the President of UOKiK is to eliminate unfair trade practices in relations between entities operating in the supply chain of agricultural and food products. These measures serve to protect the public interest rather than individual interests of a specific undertaking. 

To protect the interests of suppliers or buyers of agricultural and food products, the President of UOKiK institutes proceedings on practices involving an unfair use of contractual advantage.

The Office identifies the problem, determines what the harmful practice is, and takes further action to correct the irregularity. This may be preceded by preliminary investigation, which is intended, in particular, to establish whether there has been a violation of the law that justifies the initiation of proceedings on practices involving an unfair use of contractual advantage. 

The proceedings may end in a cease and desist letter concerning the abusive practices and the imposition of a fine on the undertaking. The President of the Office may also issue a provisional decision. The law also provides for two conciliatory solutions – voluntary submission to penalty and the President’s decision obliging the undertaking to cease and desist the abusive practices or remedy their consequences. 

Undertakings which have been harmed by the practices of another entity resorting to an unfair use of contractual advantage may pursue their claims before a civil court. In such cases, the President of the Office may present to the court a view relevant to the case (“reasoned opinion”) by presenting the findings from the UOKiK proceedings.

More at: przewagakontraktowa.uokik.gov.pl